Credit Policy

Objective ：

The most important tool used to achieve solid credit control is a comprehensive credit policy, adapted to each hotel’s particular requirements, periodically updated and made known to all necessary personnel in the reservations, front desk, marketing, accounting, food and beverage and A/R section. 

Detailed below is credit policy. The procedures outlined in the policy are to be regarded as part of Kalihara Hotels Group minimum control procedures.

Objective ：

The most important tool used to achieve solid credit control is a comprehensive credit policy, adapted to each hotel’s particular requirements, periodically updated and made known to all necessary personnel in the reservations, front desk, marketing, accounting, food and beverage and A/R section. 

Detailed below is credit policy. The procedures outlined in the policy are to be regarded as part of Golden Tulip’s minimum control procedures. 

Content  :

1. Credit Committee & Credit Meeting 3

(1.) Credit Committee 4

(2.) Monthly Credit Meeting 4

2. Credit Applications 5

3. Credit, Charge & Billing Procedures 9

(1.) Company 9

(2.) Groups 10

(3.) Credit Cards 11

(A.) International Credit Card: 11

(B.) Local Credit Cards : 11

(4.) Personal/Company Cheque 12

(A.) Personal Cheque 12

(B.) Company Cheque 12

(5.) Travelers Cheques & Foreign Currencies 14

(A.) Travelers Cheques 14

(B.) Foreign Currencies 15

(6.) Third Party Billing 15

(7.) Personal Account 15

(8.) Travel Agents 15

(A.) No Credit 15

(B.) With Credit 16

(9.) Rates and Charges 17

(10.) Staff Ledger 17

(11.) Long Staying Guest 18

(12.) No-Show Charges 19

(13.) Skippers 19

(14.) Credit Card Refunds 19

(15.) Cheques Received by Mail 20

(16.) Cash Advance 21

4. Departmental Responsibilities 22

(1.) Reservation 22

(A.) Reservation Procedure 22

(B.) Accounts with Credit Facilities 23

(C.) Guaranteed Reservations and Cancellations 24

(D.) Priority Club Rewards Reservations 25

(E.) After Hour Credit Request 25

(F.) Accounts Without Credit Facilities 25

(G.) Arrival list verification 26

(2.) Front Office 26

(A.) Check-in Procedures 27

(I.) Personal Account - Credit Cards 27

(II.) Personal Account – Cash 29

(III.) Walk-in Guests 30

(IV.) Company Account 30

(V.) Airline/Travel Agent Voucher 31

(B.) Procedures to be Followed During the Guest’s Stay 31

(C.) Check-out Procedures 32

(D.) Late Charge 33

(3.) Food & Beverage 34

(A.) Outlets 34

(B.) Banquet 35

(I.) Individual Guests 35

(II.) Companies …………….. 36

(III.) Cash/Credit Card 36

(IV.) Bank Transfer 37

(V.) Advance Deposit Payment 37

(VI.) Cancellation Policy 38

(4.) Sales & Marketing 39

(5.) Accounts Receivable 40

(A.) Bills & Collection 40

(B.) Bad Debts Procedures 41

Appendixes 

1. Application for Credit Facility 

2. Credit Application-Approval Letter

3. Credit Application-Rejection Letter

4. Payment Authorization Form

5. Skipper Report

6. Instant Check Out Authorization Form

7. 1^st Reminder Letter

8. 2^nd Reminder Letter

9. Final Reminder Letter

10. Write Off Form

Procedure：

1. Credit Committee & Credit Meeting 

1. Credit Committee

• The Hotel Credit Committee consists of:

A) General Manager

B ) Director of Finance and Business Support 

      C) Accounts Receivable Department 

• The General Manger is generally responsible for the establishment of the hotel’s credit policies and procedures. The responsibility to carry out this function is delegated by him to the Accounts Receivable Department under the direct supervision of the Director, Finance & Business Support. Extra care and caution should be exercised in the performance of such functions and are carried out in accordance with the policy and procedures herein outlined.

2. Monthly Credit Meeting

• A Credit Meeting will be held on monthly basis. Time and venue of meeting should be advised at least one (1) week prior to meeting. 

• Main objective of the meeting is to review the Accounts Receivable Aging Report, special accounts above 30days and known problem accounts. Certain attendees will be allocated specific follow-up responsibilities, when necessary.

•  Attendees at the meeting should be :

•   General Manager 

• Director of Finance and Business Support

• Assistant Director of Finance

• EAM in charge of Rooms

• Director of Sales & Marketing

• Conference Manager

• Director of F & B

• Front Office Manager

• Accounts Receivable Department

• An A/R Aging report will be distributed and accounts over 60 days will be discussed. Decisions to take legal actions, request assistance from other parties, hotel etc., black list clients and refuse acceptance of travel agents vouchers, amongst other, would normally be taken at these meetings. Exceptions, due to timing needs, would be handled by the Accounts Receivable Supervisors, through the Director, Finance & Business Support, as required.

• Any other matters causing collection difficulties are also discussed and course of action, to correct the situation before it becomes a major problem, is agreed upon.

• The Credit Policy may also be reviewed periodically during the Credit Meeting and any procedural deficiency should be addressed immediately.

• The Minutes of the credit meeting will be taken by the Accounts Receivable Supervisors. It should contain information related to various functional areas including a list of specific problems discussed, corrective action taken and follow up actions required by the various departments.

• The minutes must be distributed promptly to all attendees. These minutes are also reviewed at the following meeting to ensure agreed steps have been correctly followed up by those given the responsibility.

2. Credit Applications 

All companies, individuals, and travel agents requesting Credit facilities within the Hotel for Banquets, Conferences, Restaurant Outlets or regular accommodation must complete an Application for Credit Facility (Ref. Appendix A) if local Credit facilities are not held.  The Accounts Receivable Department will then access the application and inform the applicant in writing the status of the application.

The client will be advised of Credit facility approval or denial within 72 hours or 3 days of receipt of application.

• When Credit is requested, the PMS A/R system will be checked as to whether the client has already been issued with a Credit facility.  If the client does have Credit facility, the Application for Credit Facility is not required. 

• If the client does not have Credit facility, then an Application for Credit Facility is to be forwarded to the client.

All Department Heads including the Sales Managers can forward credit applications requesting accommodation. The Conference Manager will be responsible for Conference and Banquet credit requests. Accounts Receivable will be responsible for Credit requests made directly to the Finance Department

• It is the responsibility of the Conference Manager to ensure that applications for functions and conferences are returned by clients at least 14 working days (two weeks) prior to the event date.  If applications are not returned, then Credit facilities will not be provided.

• All returned applications should be forwarded to the Accounts Receivable at least fourteen (14) working days (two weeks) prior to the date Credit is required.  Function and conference applications are to be accompanied by an estimate of the amount of Credit required.  This estimate is to be provided by the Conference Manager.

Where short lead functions are booked and require Credit facilities, the Conference Manager must get the Credit Application completed immediately and forward to Credit Department for processing.  In order to get the application approved, all information must be completed.

NOTE: Banquet functions - the Application For Credit Facility must be used for each banquet function if permanent credit has not been previously authorized. Each function must be individually assessed to determine whether Credit will be extended. In general, all social functions must be paid in full prior to the event.

• The Accounts Receivable Supervisors will contact Credit references.

• The Credit decision will be made by the Accounts Receivable Supervisors based on information obtained from references.

• Approval signatures will then be obtained according to the estimated Credit required.  Approvals required will be as follows:

      Director, Finance & Business Support and General Manager

• Once approvals are obtained, an account will be created in the PMS A/R System and details of such noted on the Application Form by the Accounts Receivable Supervisors.

• Local companies and travel agents, if granted credit, will be extended a credit term of thirty (30) days, unless otherwise stated. If necessary, some local travel agents may be required to provide cash deposit prior to extension of credit.

• All Travel Agents with approved credit must provide a specimen copy of the travel agent voucher. Any variation to the specimen vouchers should be referred to the Front Office Supervisor, Front Office Manager or Accounts Receivable Supervisors by the Front Office Agent.

• The client will then be advised of the Application decision. The persons responsible for advising of credit decisions are:

Conferences  :   Conference Manager 

Functions      :   Conference Manager 

    Permanent Accounts    Accounts Receivable Department 

• Accessing overseas applications will be more extensive, with the following procedures necessary to control the collection and to preclude any bad debts: 

The director of Sales & Marketing or Assistant should send to the Accounts Receivable Supervisors, the recommendations from overseas Sales Office on the credit worthiness of the foreign applicant. This procedure should in fact be practiced before the conceding of any contract agreement.

Prepayment/Cash deposit will be required should there be no commendations from overseas Sales Office on the foreign applicant

• For Government Bodies/Embassies, approval of credit may be extended without the presence of the Credit Application Form. However, a letter of undertakings has to be forwarded prior to guests arrival and/or conference.

• Credit Applications will be filed by the Accounts Receivable Group.

• The Accounts Receivable Group will forward a copy of all approval letters (Ref. Appendix B) for accommodation accounts to Reservations, Sales and Front Office.  A list will also be compiled and updated on a monthly basis advising of those clients who have permanent accommodation or function Credit facilities with the Hotel.

• Credit facilities declined (Ref. Appendix C) will be advised by Department Heads nominated in above.  An alternative form of payment must be requested by that Department Head.  In most cases, full advance deposit would be required.

• Credit Department will then update the credit listing and circulate the departments concerned once every month.

Credit, Charge & Billing Procedures

1. Company

• Reservations/Front Office shall not accept any credit arrangement for billing back to the company without written confirmation of authorization form the party accepting responsibility for payment. 

• It is imperative; therefore, that prior consultation with the Accounts Receivable Group is made to determine the status of the account before agreeing to such credit arrangement.

• A letter of undertaking should be requested at the time of reservation. If the letter is not available, the guest should be referred to the Front Office Manager/Duty Manager who will then commence investigations. The guest would then be required to produce their credit card for verification purpose during the investigation period. In the event that company denied undertaking, the charges would be processed into the credit card.

• It must be noted the type of expenses, whether accommodations and/or incidentals in the letter of undertaking.

• Where the letter of undertaking does not cover all charges, the guest should be notified and ask how the settlement of the personal charges will be made and then follow the procedures during check-in, either cash deposits and/or credit card verification.

• Unless the letter of undertaking is received, with company in credit status, no routing should indicate billing back to company.

• All guest invoices must be signed by the guest indicating full responsibilities for the charges incurred to avoid any dispute by the company and/or the guest in future.

• Front Office will retain all supporting documents (checks, vouchers, etc.) of in-house guests till their departure. This is to enable guests’ verification of their bills during their stay and to avoid delays in the Front Office check-out queue. After guests’ departure, all these documents, together with the letter of undertaking and a copy of the signed invoice, will be submitted to the Finance Department.

2. Groups

• In some instances, companies will make reservation for a group of rooms (e.g. conference). In the event of such group bookings (i.e. 5rooms or more), special credit policies will apply on a case-to-case basis.

• Front Office, Sales & Marketing, reservations and Food & Beverage should not accept any credit arrangement without written confirmation or authorization from the party accepting responsibility for payment. This privilege will only be extended for companies or travel agents already enjoying credit facilities with the Hotel. Prior to any confirmation, an estimation of the charges incurred should be forwarded to the Accounts Receivable Supervisors to ensure that the credit limit is not exceeded. In the event of estimated charges exceeding the credit limit, an advance deposit may be required for the exceeded amount.

• Extra attention should be given when checking out the group folio, a “Master Room Account” will be created for the charges to be forwarded back to the company/agent. It is the duty of the Duty Manager/Front Office Manager to ensure that the charges are according to the correspondence and supporting bills are attached to the invoice when submitting to Accounts Department. Any charges not covered by the company/agent will have to be settled by the guests themselves. No credit is allowed for food and beverages not consumed and no cash refunds are to be given.

3. Credit Cards 

The following international/local credit cards are accepted by InterContinental Wuxi:

1. International Credit Cards:

Visa, MasterCard, American Express, JCB, Diners Club

2. Local Credit Cards :

All local credit cards 

• Credit cards are accepted subject to the agreements signed between the Hotel and the respective credit card centers. Strict adherence to the terms and conditions in particular the authorization is to be observed to avoid undue complications in settlement by the credit card centers.

• The following procedures are to be adhered to when approved credit card holders wish to charge the hotel expenses to their credit card:

• Examine the card carefully; ascertaining that it is issued to the guest himself and that the expiry date is still valid. An authorization code should be obtained during check-in from the credit card center, in case of fraudulent cards.

• A swipe of the credit card should be done for a proper sale/offline instead of a manual keying to the BMP system or EDC machine. This is to capture more information to prove his presence.

• The Front Office Agent/Outlet Cashier is to ensure that the guest signed on both the credit card charge slip and the invoice to avoid future discrepancies. Verification of the signature against that on the credit card is extremely important as most of the loss due to fraud result from failure to verify signatures.

• In case of the unavailability of an approval code, the Front Office Agent will have to call the respective authorization center immediately to obtain an approval code manually.

4. Personal/Company Cheque

1. Personal Cheque 

Under no circumstances should the Front Office Agent be allowed to accept from the guests, their personal cheques for settlement of the hotel charges.

2. Company Cheque 

• Company cheque cannot be accepted unless it is pre-approved by management or the Sales Manager.

• Walk in guest cannot use company cheque as a payment or guarantee method.

• In-house guest cannot change his/her payment method to company cheque upon check-out.

• Company cheque cannot be folded or spoiled.

• The date and amount on the cheque should be correct.

• The expire date is the tenth day from the date on the cheque.

• The payee’s name should be HOTEL BANK ACCOUNT NAME with clear hotel name 

• There should be no corrections on the company cheque.

• Company cheque can only be filled in by special ink pen (signature pen).

• The company chop and personal chop on the face of the company cheque should be legible.

• The endorsement includes the contact person’s name and telephone number. 

• If the cashier fails to follow up the above procedure and causes the return of the company cheque, the department manager will be responsible for monitoring the cashier to exchange the company cheque.

• If the company cheque did not exchange within 3 days, the department manager will contact the Sales Manager who is responsible for the account to exchange the returned cheque together.

• If the company cheque did not exchange within 7 days, the Accounts Receivable 

• Group will be informed. The Accounts Receivable Group will report to the Director, Finance & Business Support if it is necessary.

5. Travelers Cheques & Foreign Currencies

Even this payment method was confirm implement for some hotel, we recommend that this payment will only the last option, this payment no guarantee by bank and has high cost on bank deduction, also possibility decline as the bank in their country will not easy to reimburse if the guest status not clear at the end

6. It is of importance that the Front Office Agent is aware of counterfeit Travelers Cheques and Foreign Currencies, which they may receive from guest in their day-to-day transactions. All Front Office Agents should have been trained to detect forgeries in cash and Travelers Cheques to assist them in their responsibilities but, when in doubt, they should always consult their immediate superior before committing to accepting the cash from guests.

1. Travelers Cheques 

• Travelers Cheques may be cashed by the registered guests of the Hotel. In accepting Travelers Cheques, the following procedures must strictly be adhered to:

• TCs must not have been reported lost or stolen. The Front Office Agent should check against the list of such TCs given by the bank.

• It is important that all TCs are countersigned in the presence of the Front Office Agent. This countersignature should be identical to the original signature. In the event where the signature does not correspond, the guest should be requested to supply additional identification. Also, the guests’ name, as per the TCs, should correspond to his registration card.

• In addition to the countersignature, the TCs should be examined for the possible requirement of an endorsement on the back of the cheque. 

• Only TCs in acceptable foreign currencies are to be cashed and converted in RMB. Extra care should be taken to read the wordings on all cheques to ensure there are no restrictions. If in doubt, the Front Office Manager or Duty Manger should be consulted.

2. Foreign Currencies 

• Foreign Currencies transactions are only applicable to in-house guests. When handing such currencies, the following procedures must be followed:

• It is the duty of the Front Office Agent to ensure that the acceptance of the Foreign Currencies is according to the Hotel’s list.

• All Foreign Currencies should be carefully checked to ensure its authenticity. At all times, the Foreign Currencies should be subject to a scan on the counterfeit Foreign Currency Detector at the Front Office.

• All Foreign Currency transaction in Front Office must be recorded on a receipt to comply with the local Banks requirement.

7. Third Party Billing

If third party wishes to pay for an in-house guest, then a Payment Authorization Form (Appendix D) has to be completed indicating name of persons benefiting the guarantee, details of charges, room numbers, date of arrival and departure. The Front Office Agent to obtain approval code on the third party’s credit card and also to obtain his signature on the credit card charge slip. The Payment Authorization Form is also to be completed if the third party is paying in cash.

8. Personal Account

No credit will be granted to any individual without approval from the General Manager, Director, Finance & Business Support.

9. Travel Agents

1.  No Credit 

• Only Travel Agents with prior credit approval are allowed billing back for their guests. All other Travel Agents’ method of payment will be based on either Pre-payment or Cash on Arrival. The Reservation/Front Office Agent must ensure that full prepayment has been received for all agents on non-credit account before guest is allowed to check-in.

• Cheques are NOT ACCEPTED for Cash on Arrival. Any prepayment by cheque should reach the Hotel no later than 5 days prior to arrival, unless Sales Manager agrees it. Therefore, the Reservation/Front Office Agent must ensure that the Hotel has received full prepayment by checking with the Duty Manager or the Accounts Receivable Group. Otherwise, he/she will be held responsible for the loss incurred and necessary action will also be taken.

• The guest will be FULLY RESPONSIBLE for all the charges incurred should there be no prepayment prior to departure. In such event, the Front Office Agent will have to explain to the guest on the situation and request for their own reimbursement from the Travel Agent direct. This is very imperative especially for “Black Listed” Travel Agents.

2. With Credit 

• For Travel Agents with credit facilities, the following procedures must be noted by the Front Office Agent:

• Guests should be requested to present the travel agent accommodation voucher at check-in time, and this voucher is to be attached to the Registration Card with the correspondence received from Reservation Department.

• Absence of the voucher must be reported to the Front Office Supervisor for follow up.

• Double check on the billing instructions on the voucher against that of the reservation correspondence to ensure no discrepancies. This billing instruction should appear correctly on the comment field.

• Upon departure, any other charges apart from that as indicated on the reservation correspondence will have to be settled by the guest.

• As the contracted rate between the Hotel and the Travel Agent is strictly confidential, the Front Office Agent must not present the invoice for the accommodation charges to the guest for verification. This invoice should be submitted down to Accounts Department along with the voucher and the reservation correspondence.

10. Rates and Charges

• It is the responsibility of the Reservation Manager that correct rates are applied at the point of reservation and the Front Office Manager to ensure the correct and appropriate rates are posted and allocated to all accounts.

• It is the responsibility of the Outlet Managers to ensure the necessary back up and correspondence is passed on to the Front Office.

11. Staff Ledger    

• An updated list of all staff eligible for city ledger entitlements will be supplied to Accounts Receivable on a monthly basis.

• Charges will be posted to the Permanent House Employee Receivable folio at the discounted value of the service provided. 

• Employees will have to ensure that the discount is given at the outlet. The first copy of the guest check will be provided to the employee as a record.

• Once transferred to A/R, staff members will be invoiced accordingly. 

• The canceling of Employee Receivables and Laundry privileges is at the discretion of the General Manager and Director of Human Resources.

• City Ledger privileges are only extended to the staff member and their immediate family with the presence of the employee during consumption. (Exceptions may be authorized by the General Manager).

• The Front Office Agent will check the correctness of all staff ledgers before city ledger to Accounts Receivable at the pre-agreed time.

• The Front Office Agent will be responsible for providing the pertaining supporting to Accounts Receivable.

• The Accounts Receivable will send the statements to each individual accordingly.

• Staff ledgers are to be deducted from their monthly salary.

• For resigned employees, as part of the Termination process the Human Resources Department must obtain from Accounts Receivable the balances due from the employee in order that the amount outstanding can be deducted from the termination payment for that employee.  

12.   Long Staying Guest

Front Office will inform the long staying guests to settle the account at the end of each month at Front Office and the rental for the next month should be paid in advance.

13. No-Show Charges

• The Duty Manager will distribute the now-show report every morning to the Management. 

• The guaranteed No-Shows are to be billed by the Front Office Department after the verification of the Management, with a full set of the correspondence attached for submission. 

14. Skippers

• In the unfortunate (and unlikely) event of a Skipper (i.e. a guest who leaves without settling his account), a “Skipper Report (Appendix E)” must be completed immediately by the Duty Manager, explaining the sequence of events leading to the situation, along with detailed explanation by the Front Office Agent.

• The Director, Finance & Business Support, Accounts Receivable Group, Front Office Manager and Security Manager are to be informed immediately, and provided with a copy of the report. All relevant documentation should also be forwarded to the Accounts Receivable Group for further handling.

• Details of such should then be updated in PMS as “Blacklist” and marked Skipper by the Front Office Manager.

15. Credit Card Refunds

• When a credit card inquiry fax is received, it must be replied within one (1) day. The relevant copy of invoices, folios signed by the cardholder should be faxed to the credit card center or the bank. If the cardholder still denies the charge, it should be passed to the relevant department managers (i.e. Front Office Manager or Outlet Managers) for further investigation.

• Once the department managers decide to refund, the following should be attached and submitted to Accounts Receivable Supervisors:

• Report stating reason for refund

• Attachment of initial credit card sales charge slip with cardholder’s name and/or card number

• Rebate Form duly approved/acknowledged by relevant Department Head, whose revenue will be rebated from

• Any other supporting documents pertaining to the refund (e.g. Guest’s dispute letter)

• The Accounts Receivable Group will submit all the documents to the Director of Finance & Business Support for Approval.

• A record of all credit card refunds and all of the documents should be filed by Accounts Receivable for further inquiry.

16. Cheques Received by Mail 

• Cheques received via the post will be listed on a daily basis by the Executive Secretary. Information included on the sequentially numbered cheque lists will include-Drawer, Cheque Number, Bank Branch & State, Amount.

• Actual Cheques and the list including all back up and opened envelopes will be given to the General Cashier by the Executive Secretary.

• The General Cashier will photocopy all the cheques received, and retain these for backing on the same day.

• The General Cashier will pass over the list, photocopies of cheques being banked, and supporting documents to the Accounts Receivable Supervisors.

• Items listed on cheque list will be reviewed by Accounts Receivable Group, ensuring amounts are correctly allocated to A/R accounts, guest reservations, function deposits or General Ledger. Accounts Receivable Supervisors will provide a copy of any advance deposits for guest reservation to the reservations department in order for the deposit to be processed. 

• Accounts Receivable Group will investigate unapplied credits or “mystery” payments by contacting the drawer to determine what cheque payments are for.

17. Cash Advance

• Front Office Agents may pay out cash advances in refund of credit balances without further approval only when a guest is checking-out. However if the guest has paid the advance using a cheque, the refund from the hotel should be way of cheque.

• The purchase of services e.g. theatre tickets, parking charges, limousine services, etc. on behalf of guests will be treated as paid-outs. Paid outs are billed to the guest as follows:

• In-house guests on guest folio  

• Banquet functions on master/dummy folio

• Paid-outs are only applicable to in-house guests, to be approved as following:

               Amount                                                       Approved By 

Under IDR 500.000,-                           Duty Manager

IDR 500.000 – IDR 1.000.000              Front Office Manager

Above IDR 1.000.000,-                        Director of Finance & Business Support          

or General Manager             

• If the guest pays by credit card, a handling fee of 5% on the paid outs transaction should be passed to the guest. 

• All paid-outs/credit card advances etc. should be posted to the guest’s folio to evidence the transaction thus obviating the risk of the guest claiming the transaction was in part or final settlement of his account.

3. Departmental Responsibilities

1. Reservation

1. Reservation Procedure

• When a new reservation or amendment is received, it is essential that the reservation form/screen on PMS be fully completed.

• The following information must be obtained:

• Family name, middle name and initials. Whenever appropriate, also include gender identification. Number of guests including children, company or travel agent, position and address are also important information.

• Name of Company/Travel Agent

• Source of Reservation

• Arrival information—Date, Time, Flight Details 

• Number of Nights

• Departure Information—Date, Time, Flight Details 

• Number of Rooms, Room Type

• Rate Code and Rate

• Reservation Type and, for Guarantee Reservations, the holding time of the room

• Statistical information. E.g. Market, Local Company and Source of Business

• Confirmation Number

• Reservation Agent’s initials wit date and time

• Any special request and instructions

• Mode of Payment

• Other information such as Type of Package, Reasons for Complimentary Room, Newspaper requirement, etc

• To ensure that the right information has been obtained, it is the responsibility of the person who took the reservation to review the details with the caller before ending the telephone conversation. Such information should be correctly input into the PMS to avoid any future discrepancies.

• If the system is temporarily out of operation, the guest request will be recorded manually, and the guest informed as soon as the system comes back on line.

• Reservations will be held until 18.00 hours destination hotel time without a guarantee.

2. Accounts with Credit Facilities 

• If the account is to be billed back to the company, the reservation agent will check while making the booking if the company has a city ledger account. If it does, the caller will be asked to fax/email a confirmation of booking prior to guests’ arrival, unless prior approval is obtained from General Manager, Director of Finance & Business support. Any of such special arrangements should be made known to the Front Office/Accounts Receivable in writing. The fax must be on company letter head and should include the following details:

• Company or Travel Agent name and address

• Contact name, Telephone, fax and e-mail contacts 

• Name of guest(s) 

• Arrival and departure dates

• Order/voucher number

• Precise details of what the Company/Travel Agent is paying for

3.   Guaranteed Reservations and Cancellations 

• Guaranteed all night Reservations and reservations secured by advance deposit will be held until check out time.

• To secure a Guaranteed All Night Reservation there will be an advance deposit in cash, company cheque, Remittance or one of the following:

• An acceptable credit card number will be requested in case the guest fails to cancel the reservation by 18:00 PM.

• Company name, address and telephone number where the company has a signed agreement with CREDIT APPROVAL STATUS to guarantee payment

• A travel agent ARC/IATA number with guarantee status

• Prior to billing a no-show, the hotel will check with HCMA  to verify the reservation was not cancelled by the Central Reservations Office.

4. Priority Club Rewards Reservations

• Where the Service Centre contacts the hotel regarding Guaranteed Room Availability for Platinum level members because no booking could be make via the Central Reservations Office (CRO), travel agents or the Internet, the following standards apply:

• The reservation will be made whilst the Service Centre is on the line

• Service Centre will provide the member’s room preference and credit card number

• Service Centre will then be provided with the confirmation number, this will then be passed on to the member in a written confirmation

5. After Hour Credit Request

• During after hours, details for any credit inquiries should be logged in the Duty Manager’s logbook and handed over to the Accounts Receivable Supervisors the following morning. Under no circumstances should the RESERVATIONS manager or a Reservations Agent authorize credit facilities.

6. Accounts Without Credit Facilities 

• Upon confirmation of booking, the Company/Travel Agent for the account is required to prepay the total room charges.  

• The deposit in cash must be paid in full at least at the guest’s arrival.

• The deposit in company cheque must be paid in full at least 5 working days prior to the guest’s arrival, unless the Sales Manager agrees.

• Deposits can be paid into the hotel’s bank account. The deposit must be made in full at least 24 hours prior to the guest’s arrival.

• Advance deposits may not exceed the room rate, including service tax. 

7. Arrival list verification

• The reservation form, including any related correspondence should be filed alphabetically by date of arrival. A day before arrival, the Reservation Supervisor should recheck each reservation correspondence with the details entered into PMS before the final arrival list is printed out. This check is performed to ensure unfailing accuracy of the reservation record.

• In the event a fax or e-mail reservation request is received incomplete in respect to the above-mentioned details, every effort should be made to obtain such information prior to guest’s arrival. A trace should be left on the reservation to alert the Front Office Agent to request further details. This is especially important in respect of billing instructions.

• On Fridays, the correspondence for Saturday and Sunday should be updated to ensure that there would be no queries during the weekend.

2. Front Office

Note: The Front Office procedures in this section only go so far as those that interrelate with the Credit Department. For Front Office operational procedures, reference should be made to the Front Office manual.

1. Check-in Procedures 

• The check-in procedure is critical to the effective control of credit. Front Office Agent should request all guests to complete the registration card. This must include the passport or identity card number, complete address, telephone & fax number, e-mail address and payment arrangement.

• The guest should be asked how the account is to be settled, if no prior information has been given. 

1. Personal Account - Credit Cards

International Credit Cards: 

• Ask the guest to present the Credit Card and swipe the card on BMP or EDC system.

• Key in the amount to be pre-authorized.

• Ensure that the signature on the Registration Card is the same as on the back of the Credit Card before returning the card to the Guest.

• Double check the expiry date on the credit card to ensure that the credit card is valid throughout the period of the guest’s stay.

• Double check with credit card bank list issuer, as bank code and originally information for ORIGINAL credit card was there list

• When BMP/EDC system is not in operation, take the manual imprint sales slip of the credit card, request the guest’ signature on the slip and get the pre-authorization by telephone or from BMP/EDC system after the guest is checked in to the room.

• Return the credit card to the guest after processing.

• File the Registration Card, credit card imprint and any other supporting correspondence and documents. 

• Should authorization not be granted by the credit card center, the Front Office Agent must immediately notify the guest and request for alternative settlement of hotel charges, i.e. other credit cards or cash payment. The procedures should be adhered to.

Local Credit Cards:

All Local Credit Cards are accepted: 

• Ask the guest to present his Credit Card. Swipe the card to get pre-authorization and take the manual imprint sales slip of the credit card.

• Request the guest’s signature on the manual sales slip.

• Ensure that the signature on the manual sales slip, on the Registration Card is the same as on the back of the Credit Card before returning the card to the guest.

• Double check the expiry date on the credit card to ensure that the credit card is valid throughout the period of the guest’s stay.

• Double check with credit card bank list issuer, as bank code and originally information for ORIGINAL credit card was there list

• Return the credit card to the guest after processing.

• File the Registration Card, credit card imprint and any other supporting correspondence and documents. 

• Should authorization not be granted by the credit card center, the Front Office Agent must immediately notify the guest and request for alternative settlement of hotel charges, i.e. other credit cards or cash payment. The procedures should be adhered to.

Thirty Party Credit Cards: 

• The owner of the card to bring the credit card to the Front Office and fill in the Payment Authorization Form. Approval by signed letter of fax from the cardholder is unacceptable. 

• The Front Office Agent will take a pre-approval based on the estimated total guest spend.

• The owner of the card will be required to sign the pre-approved credit card voucher in person.

• If during the guest’s stay the folio total exceeds the pre-approved amount, the above process (1-3) will be repeated.

• If process 1-3 can’t be carried out by the cardholder, alternative payment method will be requested. I.e. cash, remittance, Company Cheque or other person’s credit card.

• Any exceptions will be approved by General Manager, Director of Finance & Business Support.

2. Personal Account – Cash 

• Should a guest with a reservation not wish to pay by credit card, the Front Office Agent must inform the guest that he will be required to pay a deposit:

• The Deposit is equivalent to Room Rate inclusive of taxes and service charge multiply by the number of room nights plus 50% to cover extra bill comes from hotel outlets 

• His account is to be settled in full upon check out. Should the guest’s account balance exceed the deposit, the guest will be requested to make an interim payment and settle the balance upon departure.

• Incase hotel has third party restaurant or arcade shop; the personal account payment will be implement, and no guarantee for hotel to cover this transactions.

3. Walk-in Guests

• A deposit equal in multiples of the room rate by the number of days involved plus 50% is required from a walk-in guest, to cover extra bill comes from outlets.

• Requests to bill a company or third party will normally not be accepted. If the Duty Manager decides that the reasons are sufficiently valid to accept a guest in this category, he/she will prepare a brief report summarizing the facts and submit it to Accounts Receivable for further follow-up.

• Exceptions may be made for very regular guest.

• Incase hotel has third party restaurant or arcade shop, the personal account payment will be implement, and no guarantee for hotel to cover this transactions.

4. Company Account

• If the guest indicates that the account is to be paid by a company or third party, the Front Office Agent will ascertain the validity of the statement, i.e. the company has approved credit, the guest is carrying an approved voucher, there is a fax on file approved by the credit department confirming that the guest’s account is to be passed to a company.

• The Front Office Agent will ascertain whether any limitations exist i.e. the party to be billed will only pay room, tax etc. and if so, will verbally advise the guest of these limitations. If the guest disagrees with the limitations, the Front Office Agent will refer the guest to the Duty Manager. If he concurs a method of payment will be secured for extras.

• The deposit for extras is 50% from the total room charge including service and tax  per person per day.

5. Airline/Travel Agent Voucher

• If the guest produces a travel agent voucher, airline voucher or other payment document, the Front Office Agent will verify that the document is an agreement to pay as opposed to a request for a reservation is valid and is accepted by the property. The original voucher will then be attached to the registration card. The Front Office Agent will inform the guest of any limitation specified on the voucher (such as room and tax only), will secure a method of payment for extras.

• The deposit for extras is 50% from the total room charge including service and tax per person per day.

2. Procedures to be Followed During the Guest’s Stay

• It is the responsibility of the Front Office Manager to check the “Guest In-House-By Room” report on a daily basis. All in-house guests should have sufficient cash deposit or credit card verification to cover the expenses incurred during their stay. 

• Print the Guest INH-By Room Report from the PMS System around 2 pm daily, as the morning report will include the guests who supposed to check out in the morning. 

• Using the report, the FOM will review each guest’s account balance and the credit limit.  If the Credit limit is exceeded or is estimated to be exceeded, the FOM will request the Assistant Manager to obtain credit pre-authorizations on Credit Cards or a cash payment from Cash Only guests.

• All actions taken should be noted on the report. This report should then be submitted, on the same day, to the Accounts Receivable for review.

• It is the responsibility of the Accounts Receivable to check that all the appropriate actions have been taken, and to initiate any further actions deemed necessary to obtain the payment.

• The FOM will be responsible to carry out any instructions from the Accounts Receivable Supervisors.

• Credit Check Reports will be filed for a period of two months by the Accounts Receivable.

3. Check-out Procedures

• Front Office Agent should verify that the originally established payment arrangements are not changed. For example, a guest who advised payment by a credit card or cash upon check-in, may request upon checkout to pay with a cheque or have the bill sent to his company. Any problems should be immediately brought to the attention of the Duty Manager.

• Guests should sign credit card vouchers upon checkout.

• If guests check out from the guest’s room or agree that they may leave the property without checking out, the guests must be asked to sign the pre-approval credit card voucher and fill in the “Instant Check Out Authorization Form (Appendix F)”.

• For payments by voucher (travel, airline etc.), the Front Office Agent will scrutinize the voucher to be sure the guest’s charges are covered and request that the guest pay for all incidental charges not specifically mentioned on the voucher.

• For payments by company, the guests should be asked to sign on the bills to indicate they acknowledge the charges.

• If a guest is due a refund at checkout i.e. his advance deposit exceeds his total charges, he will be refunded in the way the deposit was paid i.e. if his deposit was paid by cheque, he will not be given a cash refund, the refund will be by cheque.

• Front Office Agents are not expected to resolve complex billing arrangements with guests, not should they enter into controversial discussions with guests. All unusual problems should be referred to the Duty Manager.

4. Late Charge

• Every guest should be asked upon their departure if they have used any of the outlets recently, i.e. breakfast, or if they have consumed any items from the mini bar. If the guest declares any charges that have not been posted, the Front Office Agent should contact the outlet and ask them to post the charge immediately. If there is not sufficient time to do so the Front Office Agent must manually post the charges prior to settling the account.

• All late charges under IDR 100.000,- should be written-off. 

• For guests paid by credit card, any charge over IDR 500.000 should be late charged to the guest’s credit card.

• For guests paid by company, all bills should be posted to the guests’ account and transferred to Accounts Receivable.

• No late charge for guests paid in cash.

• The Front Office Agent should verify that the late charge has been charged to the correct guest and should attach two copies of the docket or back up to the invoices. Both copies should be forwarded to the Accounts Receivable.

• All Guest what has been settle their bill, the Front Office Agent have to give guest a Luggage Release, to sign other concern that the guest has been settle their bill.

(E). Luggage Release

This steps connect to Guest Check Out process, who pass on main entrance, or other area,

Upon the Bellboy handling the guest luggage or no luggage upon departure, The Bellboy have to asking the Luggage Release to the guest.

This Luggage Release inform to Bellboy that the guest have settle their bill.

This procedure will avoid every ones skipper etc.

3. Food & Beverage

1.  Outlets

• Under no circumstances shall a customer be allowed to charge his account without a valid credit card, except when he is a house guest, or prior arrangement has been made with the Management, which will be relayed to all concerned.

• All charges against valid credit cards must have a corresponding charge slip which must be legibly imprinted through an EDC machine. 

• Only one imprint of the Credit Card should be taken, if an imprinted charge slip is not utilized, it should be destroyed in front of the customer.

• Cashier should ensure that the charge slip is properly imprinted and signed by the guest.

• Should an expired/called card be presented, the Outlet Manager should be notified. They should explain to the guest that his card has expired or recalled. Payment then must be made in cash or with another valid card.

• If problems are experienced, the guest should be referred to the Duty Manager or Accounts Receivable Supervisors.

• We do not accept cheques in Restaurants or Bars neither in payment of an account nor for cashing.

• Payment in foreign currency should be referred to the Bank or to the Front Office Agent.

• “Cash Only” guests: 

• Cash payments must be posted immediately.  

• Under no circumstances shall a cashier or a waiter/waitress keep the cash payment and not post it immediately.

• The original restaurant check must be presented to the guest.

• A copy of the check must be given to the guest.

• Sign to Room Accounts: 

• If the amount of the guest’s bill is over IDR 3.000.000,- or unusual amount and signed to his room account, the outlet manager must check with Front Office if the deposit or the credit card pre-authorization of the room account is enough to cover it. The outlet manager must ensure the Front Office Agent who confirms the charges sign on the outlet copy of the bill.

• If the deposit is not enough or the credit card is declined, the Duty Manager must be informed immediately to contact the guest for further action.

2. Banquet

1. Individual Guests 

• When a booked function is confirmed, a contract should be completed and signed by the Conference Manager and client.

• The deposit received should be indicated on the Event Order to avoid any inconvenience caused. Complete home address, company address and telephone number should be indicated on the Event Order to facilitate any future queries.

2. Companies 

• Should the company request for credit, the Application For Credit Facility should be duly filled and submitted to the Accounts Receivable Supervisor at least two weeks prior to the event for approval.

• If credit is extended to the company, Master Account must be verified and checked by the Conference Manager to system totals at the end of the conference. This is to ensure all amounts have been correctly charged per the original agreements with the Conference Organizer. Master bills must be available at the end of the conference or within 24 hours of the conference departure. 

• All bills must show a breakdown of charged items that is clear, specific and easily interpreted by the guest. Replacement bills must be made available on request. Bills must be printed on good quality clean paper, with the hotel letterhead.

• It is the duty of the Conference Manager to inform the client on the due date for the payment to be made.

• If credit is rejected, the Conference Manager has to ensure that the payment MUST BE COLLECTTED PRIOR OF THE FUNCTION, failing which; it will be the Conference Manager’s responsibility to follow-up on the uncollected amount.

3. Cash/Credit Card 

• All payment received via cash and/or credit card has to be transacted at the Front Office counter. Upon receipt of cash payment, the Front Office Agent will issue a Deposit Receipt, indicating name and details of the function, and thereafter post in the deposit folio accordingly.

4. Bank Transfer 

• For payment via bank transfer, it is the duty of the Conference Manager to inform the clients that any function would only be guaranteed and definite upon receipt of confirmation from the Hotel's bank indicating receipt of the deposit.

• As now the ATM was use as normal transfer, upon the guest transfer please indicate the unique number on amount transfer with last 3 digit confirmation number, to easy on recognize 

5. Advance Deposit Payment 

• If at the time of confirmation, credit is not approved, the deposit should be collected as following:

10%      with signed contract 

50%      90days in advance  

40%      30days in advance  

• The deposit should be based on all food and beverage, audio-visual equipment and other requirements booked. 

• It is the responsibility of the Conference Manager to collect all remaining deposits prior to the event.

• The deposits will only be refunded in accordance with the cancellation policy.

• The functions below must be prepaid in full, unless approved by Director of Finance & Business Support and General Manager.

• Small functions and one-time bookings 

• Travel agencies, except for major travel agencies for whom credit facilities have been approved in advance

• Social functions, e.g. weddings, associations and charity groups

• Groups those are dependent on collection of fees for registration, contributions, sale of tickets, etc.

• Political functions, such as fundraisers, etc.

• Religious groups

• In-house guests paying cash

• The customer must be notified that extras during the event must be settled with a credit card or in cash.

6. Cancellation Policy 

Above 90days                    No payment

90 -30days                           60% of the anticipated revenue

30 –15days                          85% of the anticipated revenue

15days below                      100% of the anticipated revenue  

• The above represents a guideline, which can be negotiated with contracting parties.

• It is the responsibility of the Conference/Sales Managers to ensure that terms and conditions, for deposits and settlements, are clearly communicated to the guests upon signing of the contract.

• Follow-ups must be done to see that full payments are collected prior to function if credit is not extended. In the event of non-payment for companies or individuals without credit facilities, the Conference /Sales Manager will have to follow up immediately to assist in collecting the payment. The Accounts Receivable Supervisors should be notified instantly of such cases and assistance should be obtained, if necessary.

4.   Sales & Marketing 

• All group and tour bookings are to be processed by the marketing department. Group and tour booking requests received by other departments are to be transferred to marketing for processing.

• The group coordinator will be responsible for preparing a “fact sheet” for each group which will be summaries all relevant information pertaining to the group, including detailed payment arrangements and specifically the name, address and telephone number of the person responsible for payment.

• In event of booking for non-credit accounts, the Sales Manager should request for full prepayment at least seven (7) days prior to guests’ arrival.

• Marketing, with the support of the credit function, may extend credit to any group originating from either a regular local company rate account or an approved travel agent. For all other groups, marketing must obtain credit approval in advance

• The Director of Finance & Business Support will approve the group contract prior to it being sent to the client.

• It is also the duty of the Sales/Conference Manager to assist in collecting payment for any outstanding account, especially for non-credit accounts.

• All other reservations, which originate with marketing, should be passed to reservations for processing.

5.    Accounts Receivable 

1. Bills & Collection

• Monthly Statement of Accounts will be sent out by 3td of every month.

• Within three (3) days after the statement is sent, the Accounts Receivable should give a call to ensure that the statement has been received and that there are no disputes or questions about the invoice. 

• If there are questions, the charges should be investigated and, for group bills, the Sales or Conference Manager should be advised to follow up with the company.

• Efforts should be made to resolve disputes with clients as soon as possible so that the bill is not held up for payment over minor charges.

• If no payment is received thirty (30) days after sending of the statement, the following procedures shall be done:

• Immediate follow-up calls make to the client. Such phone calls shall be recorded in details (i.e. date of call, content of conversation and the next follow-up).

• 1st Reminder Letter (Appendix G) to be sent to the client 30 days from the original billing date. THE 2nd (Appendix H) and Final reminder (Appendix I) will be sent at intervals of seven (7) days.

• If payment is still not received after the Final Reminder, credit will be suspended immediately and any bookings thereafter shall be on cash and prepayment basis.

• Any collection problems should be discussed with the Director, Finance & Business Support and brought up during the Credit Meeting.

• Special collection letters will be sent by the General Manager or Director, Finance & Business Support, if necessary.

2. Bad Debts Procedures

• In order to write-off uncollectable accounts receivable against the Reserve for Bad Debts, it will be necessary to obtain the authorization of the Area VP Business Support (AVPBS) or whomsoever he may delegate this in writing to, e.g. Regional Finance Directors/Regional Controllers. Bad Debts Write-Off Form (Appendix J) will be prepared for each account considered uncollectable. These forms will be numbered sequentially, prepared and signed by Accounts Receivable Supervisors, then approved and Authorized by Director, Finance & Business Support and General Manager. For amount over USD 2,000.00, the forms will then be submitted to the AVPBS or whomsoever he may delegate this in writing to. The AVPBS or whomsoever he may delegate this in writing to will either approve the proposed write-off or issue alternative instructions. 

• The Bad Debts Write-off Form must be accompanied by a detailed reconciliation of the bad/doubtful debt reserve. The AVPBS will there for be able to see unapproved write-offs.

• In order to avoid an excessive number of Bad Debts Write-off Forms, all amounts under IDR 400,000,-, which is not feasible to follow normal collection procedures, should be written off directly once they reach 90 or 120 days, without the need for the write-off procedure as outlined above. A list of such unapproved write-offs should be kept by Accounts Receivable for the periodically review for reasonableness by the Director of Finance & Business Support.

• The Writing off of an uncollectable receivable should not imply the end of any further collection attempts. The eventual collection of an amount written off should be credited back to the reserve for Bad Debts.

• An occasional cause of a receivable becoming uncollectable is a misunderstanding or dispute with a client as to the rate charged, the services provided, the number of persons guaranteed for a banquet, etc. For these cases, accounts receivable written off should be charged to Rebates and Allowances in the appropriate department code and not to the Reserve for Bad Debt.

The above policy will be reviewed periodically and may be revised, amended or changed accordingly.