FRONT OFFICE CREDIT POLICY

GOAL: All properties will follow credit procedures as established herein in handling guest room accounts

SCOPE:

To outline procedures for establishing and maintaining proper guest credit during the check-in process and throughout the guest's stay.

• To ensure that proper credit controls are in place and maintained.

• To minimize bad debt losses which will negatively affect hotel profitability.

PROCEDURE OVERVIEW:

This procedure describes the role of the Front Office in the credit approval/credit authorization process. The Front Office staff is responsible for administering previously established credit and for ensuring that each customer pays in advance at check-in or establishes credit via an acceptable means. The Front Office staff has no authority to extend/approve credit or to accept any type of promise of payment other than those listed in this procedure.

PROCEDURE:

GUEST IDENTIFICATION AT REGISTRATION

1. Each registering guest will be required to present photo identification to verify

   the address and signature on the registration card. This verification is to ensure the guest registering is who she/he presents her/himself to be and that she/he can be reached at the address given.

2. Exceptions to the identification procedure are:

   • Certain frequent traveler benefits program members.

     • Direct Bill Authorized (See item 5 below for details).

     • Individuals who have been pre-approved for group master billing -

       "sign all charges".

     • Individuals who have been pre-approved for express check in.

     • Corporate business travelers with a valid credit card.

3. Acceptable identification is as follow:

   A current driver’s license with photo and/or current passport.

   • An acceptable valid, major credit card, provided the guest indicates his/her intent to charge his/her room account on that card at check- out. The guest must also permit the clerk to imprint a charge voucher.

   • If a guest indicates "by check" as his method of payment and does not carry one of the acceptable credit cards, she/he must provide a driver's license or passport, and another form of identification with a signature. Checks are only accepted with a credit card guarantee.

   • Air travel cards may be accepted for identification (with driver's license) with Front Office Manager approval, however, these cards cannot be accepted as a method of payment.

4. Examples of items that cannot be accepted as identification include:

   • Social Security Cards

   • Temporary Driver's Licenses

   • Club Cards

   • Business Cards

   
   

CHECK-IN PROCEDURE

1. In addition to the normal registration responsibilities, the Room Clerk must determine the manner in which the guest intends to settle his/her account at check-out, and record this information on the registration card if the guest has not done so.

2. The clerk should secure the identification presented and:

   • Check the expiration date. Indicate that the expiration date was checked, depending on the voucher.

   • Verify the signature with that shown on the registration card.

   • Obtain proper credit card authorization prior to guest leaving the desk.

     
     

   Record the identification accepted on the back of the registration card. If the identification accepted bears a number, record that number as well as the type of identification presented, i.e., driver's license, passport, etc. The clerk must also place his/her initials next to this information.

   • If the guest presents an acceptable credit card and indicates that she/he intends to charge his/her account on this card at check-out, no further identification is necessary. The room clerk will secure the credit card and imprint the appropriate charge voucher which will be retained with the guest folio until check-out, an imprint will also be made on back of folio or registration card.

   • If the guest objects to this procedure, the room clerk will write down the information on the reverse side of the registration card. Remind the guest that she/he must check out at the desk and sign his voucher at that time. Call the authorization center when necessary to determine the validity of the credit card. Verify that a credit card authorization has been obtained before the voucher is filed in the bucket. The charge voucher will be initialed to indicate this has been done.

3. If the guest cannot present an approved credit card at the registration desk in accordance with the established above procedure, the "cash in advance" procedure will apply. If the guest objects to payment in advance, he/she should be immediately referred to the Front Office Manager or the Manager on Duty. The amount of cash in advance collected is determined by the room rate plus tax times the number of nights plus an amount to cover small room charges (this amount to be determined by local property).

   
   

4. The desk clerk must advise the guest that he/she is not permitted to sign any

   charges to his/her room. All Food and Beverage Outlets and the Gift Shop

   must be immediately notified of the room number and CIA status, and a

   notation is made on the account or the room folio is stamped "CIA" before

   filing in the bucket.

5. There are four other possibilities for establishing guest credit at check-in:

   • Group Room Master Billing

   Special property approved billing instructions can serve as anapproved method of establishing credit. This approval must be obtained in writing, as part of the "Group

   Room Cover Sheet" or via a direct bill authorization from the Accounting Department.

   These approvals must be followed "to the letter". Any deviation from this approved documentation will require approval from the Sales and/or Accounting Departments.

   Any changes to Group Billing instructions by the authorized group contact requires a signed authorization and therefore must be referred to the sales manager handling the account.

   • Direct Bill Authorized

   Written, property-approved direct bill authorization from the Accounting Department can also serve as an approved method for establishing credit. Again, all billing instructions must be followed "to the letter". The guest's signature must be obtained at checking, and the guest must approve all charges and sign the folio prior to departure.

   A copy of the direct bill authorization must be attached to the direct bill folio.

   
   

   Some properties may elect to maintain an "approved" company Direct Bill Authorization file in the Reservations Office. This practice is not encouraged, but is a property option. If this practice is followed, it is the responsibility of the Accounting Department to keep this file current at all times.

   • Non-Revenue Room Request

   A properly completed and approved Non-Revenue Room Request can serve as a method of establishing credit, provided both the General Manager and Controller have approved the request.

   
   

Multiple accounts

When one guest guarantees an account for another guest, the credit card of the paying guest must be imprinted on the back of the non-paying guests folio and the paying guest must initial under the imprint, and sign both registration cards.

THE HIGH BALANCE REPORT

1. It is the responsibility of the Night Manager to prepare this report nightly. It should list every room folio reflecting a balance (This amount is to be established by each property between $15 to $500).

2. The Front Office Manager will assume responsibility for those accounts requiring follow-up action. All room accounts listed must be thoroughly checked for method of payment.

3. If an approved credit card voucher or number is on file and the charges do not exceed the current balance plus additional number of nights room and tax, no further action is necessary. When a room account exceeds this amount, the card authorization center must be contacted.

4. Determine the average daily charges incurred by the guest and the number of days remaining until scheduled checkout. This amount, plus the current balance on the room folio must be authorized through the card center. The authorization code and dollar amount is then entered on the voucher where indicated.

5. Room accounts that are coded "Bill Direct" or "Sign For All Charges" have been approved for credit. If you have any doubts regarding the validity of a direct bill, contact the Controller.

6. If neither of the above two conditions are met, the guest must be contacted for immediate payment of the account. The action taken on each account listed must be noted on the report and a copy of the report must be forwarded to the Controller, Rooms Director/Director of Operations.

   
   

   SETTLEMENT OF GUEST ACCOUNT AT CHECK-OUT

The method of payment will have been determined at the time of registration

and will be so noted on the registration card. Direct Billing arrangements or

payments by check in excess of established limits must be pre-arranged by the

guest and approved prior to check-out.

Cashier responsibilities are as follow:

• Charging of Guest Accounts

1. Approved credit cards - Verify that the voucher filed with the folio belongs to the guest. Also verify that the credit card number and name are legible on the voucher. If the folio balance exceeds the previously authorized amount, the card center must be called for authorization. Compare the voucher and the credit card to ensure that the signatures match.

2. A folio must be presented to the guest for signature on "Direct Bill" Accounts.

   
   

   • Restrictions on Charging of Guest Accounts

3. A credit card cannot be accepted as authorization for direct billing by the hotel. All direct billing requests must be directed to and approved by Accounting.

4. If the guest has presented an approved credit card at check-in, this same credit card must be used in settling the account. If the guest wishes to charge the account to another credit card, it must be verified through the credit card authorization center before settling the account.

   
   

• Payment of Guest Account By Personal Check

1. The check must be imprinted with the guest's name, address and telephone number and the check number must be at least 300 or higher. Do not accept checks that are obviously drawn on a new account.

2. Checks may be accepted for the exact amount of the folio balance, provided proper credit information (and approval) was secured at check in and is indicated on the folio. If this information has not been taken, the cashier must secure it (and any necessary approvals) and record it before accepting the check. The cashier should also notify the Front Office Manager if the information was not secured at checking. Also, when possible, the credit card should be imprinted on the back of the check, with the type of card indicated.

3. In the absence of credit information, record the room number, address, telephone number and date of checkout on the front of the check.

   
   

• After Departure Charges

1. After departure charges can be handled in two ways

   • Settle on a separate voucher.

   • Pen change the amount on the voucher or use the adjusted amount portion of the voucher where available.

2. A copy of the adjusted voucher and final room folio must be mailed to the guest.

   
   

CHECK CASHING

Checks will be cashed only for registered guests (unless authorized through

frequent traveler program guarantee) subject to the following limitations:

• Personal Checks

1. The guest must have one of the following credit cards:

   • American Express

   • Carte Blanche

   • Diner's Club

   • Discover

   • Master Card

   • Visa

2. The check must be imprinted with the name and address of person cashing it.

3. No check with a number below 300 is to be accepted without a manager's approval.

4. The guest must have a valid driver's license as a second piece of "identification". The address on the driver's license must agree with the address on the check. Also the driver's license number and state of issue must be written on the check.

5. Indicate that a check was cashed on the back of the guest registration card, the amount, date and clerk's initials.

6. After all verification has been performed, the check may be cashed, subject to the following limits established by local policy and/or frequent traveler program guarantees. Check cashing should never exceed $50 per day.

7. To guarantee payment of the check through the credit card company, all information must be called in and authorized through the check guarantee authorization center.

   
   

• Traveler's Checks

Traveler's checks must be counter-signed in the presence of the cashier. Verify the signatures with one piece of identification. All three signatures must match.

• Travel Letter

Travel letter must be reviewed and approved by hotel Controller prior to acceptance. Limitations on the letter must be followed exactly. One piece of identification is required. After hours, obtain other source of credit until controller can be contacted.

• Company Checks

All company checks must have the approval of the Front Office Manager, or Desk Supervisor.

• General

1. Only the Front Office Manager or an Executive Committee member can authorize check cashing for an individual who is not a registered guest.

2. No second party (personal or traveler's) checks will be accepted.

3. No "counter" (checks with no imprinted account number) will be accepted.

4. The credit card used as a credit reference must be in the same name as the person cashing the check.

5. No payroll (Ours or other) or employee checks will be cashed.

6. Cash should never be given and charged to a credit card.