How To Handling Guest Rebates And Allowances
- All rebates/adjustments/allowances for charges posted to a guest must be prepared on an allowance slip and the same needs to be authorized by the department heads. Normally allowances are authorized by the Front Office Manager, Resident ManagerThe manager in charge of the rooms division in amid-size to a large hotel. Sometimes resident manage..., or Director of Sales.
- All allowances must be also circulated for review and approval by the General ManagerManager is a person in the hotel operations who is assigned to manage or supervise a group of employ... and Financial ControllerThe financial Controller�manager is in charge of all accounting functions of a hotel. Duties inclu....
- The Front Desk cashier normally passes an allowance when a guest indicates that they have a complaint about the room rate applied, charges on the bill, Mini bar disputes, double postings, or free inclusions which were part of the rate and may also be due to dissatisfaction of certain hotel services.
- If the cashier feels that an adjustment is required, then they should inform the Front Office Manager or duty manager so that immediate steps for service recovery can be taken.
- If it is necessary, a rebate/allowance may be authorized and handled by the front office cashier, but all such rebates must be reviewed by the Front Desk Manager or duty manager at the end of each shift.
- A rebate should be only passed when it is the only way to placate or satisfy the guest.
- Post a (–ive) entry on the correct TransactionTransaction is�a business event requiring an entry in the accounting records./rebate code to pass a rebate.
- When the decision is to make a rebate, the cashier will prepare the rebate voucher. The voucher must contain the following information:
- The date on which the rebate is passed
- Name of GuestDefinition of Guest in Hospitality Industry: A guest is the most important person in any business. A...
- Room Number
- Signature of the cashier
- Signature of Authorized Manager
- Reason / Explanation for the Adjustment
- Amount of the Adjustment
- The voucher is then placed with the other rebate vouchers that have been run for that day for review by the Night Auditors.
- All rebates will be signed by the Front Office Manager / Duty manager.
- Report AllowanceReversal of charges on the guest folio which was posted before the current system / PMS date./rebate for the day will be printed daily and circulated along with the Night auditNight audit is the control process whereby the financial activity of guests accounts is maintained a... report set.
- The General Manager / Financial controller will also maintain close supervision over rebates. They will review and approve all rebates daily and will investigate and reconcile any unusual or recurring rebates.
- It should be noted that when rebates are passed with the correct corresponding rebate codes should be only used by the front desk cashier. Eg: For passing allowance on room rental the Transaction code or Department code ‘Allowance Room charges’ is only to be used.
Handling Guest Rebates or Allowances
Ready to Test Your Knowledge?
Who is responsible for authorizing guest rebates and allowances?
Department heads such as the Front Office Manager, ResidentThe guest who is staying in the hotel. Manager, or Director of Sales.
Who must review and approve all guest allowances daily?
The General Manager and the Financial Controller.
A front desk cashier may pass an allowance due to a guest complaint about the room rate, double postings, or dissatisfaction with _____.
hotel services
If a cashier believes a billing adjustment is needed, who should they inform to initiate service recovery?
The Front Office Manager or the duty manager.
A rebate should only be processed when it is the only way to _____ or _____ the guest.
placate, satisfy
To process a rebate in the property management system, what type of entry is posted?
A negative (-ive) entry using the correct transaction or rebate code.
What are three key pieces of information that must be included on a rebate voucher?
The date, guest name, room number, amount, reason, cashier signature, and authorized manager signature.
Who reviews all rebate vouchers at the end of the day as part of the audit process?
The Night Auditors.
The General Manager will investigate and reconcile any unusual or _____ rebates.
recurring
Why is it critical for cashiers to use specific transaction codes, like 'Allowance Room charges', when processing a rebate?
To ensure accurate financial tracking and reporting for different types of allowances.
According to hotel telephone etiquette, a call should be answered within how many rings?
Within three rings.
What is the standard phrase for answering an external call?
Wish according to the time of the day, state the hotel name, and ask, "How may I help you?"
What is the standard phrase for answering an internal call from a guest?
Wish according to the time, address the guest by their last name, state your first name, and ask, "How may I help you?"
When transferring a guest's call, what polite phrase should be used?
"Transferring your call with pleasure."
A room upgrade should typically be reserved for short-stay guests, VIPs, or guests who are paying the _____.
rack rate
Who must give approval before a guest's room can be upgraded?
The Front Office Manager or Duty Manager.
In a downgrade situation where a guest accepts a lesser room, what must the hotel staff ensure regarding the bill?
That the guest's room rate is adjusted accordingly.
For the safety and comfort of a single female guest, what type of room should be avoided during allocation?
An inter-connecting room.
After fulfilling a guest's request, what is the mandatory next step to ensure their satisfaction?
To do a follow-up by contacting them personally.
When listening to a guest complaint, it is crucial to listen carefully and never _____ or _____ the guest.
contradict, interrupt
Instead of making promises that cannot be kept, what should a front office staff member offer the guest?
Alternate choices.
A guest is required to sign the registration card to verify that the details on it are _____.
accurate
What two forms of identification must be requested from foreign guests during the check-in process?
Their passport and visa.
If a guest requests a room key but provides information that mismatches the system's records, what should the agent ask for?
A valid photo identification like a passport or driver's license.
If a guest loses their room key, the newly programmed key should be created with a _____.
new code
What is the term for a situation where a guest arrives but no clean rooms are available?
An "On Queue" or "wait" situation.
While a guest is waiting for their room to become available, what should staff never give them in advance?
The room key or the anticipated room number.
If a guest fails to answer the second reminder wake-up call, what is the next immediate step?
To try calling again after 5 minutes.
If a guest is unresponsive to wake-up calls or their phone line is busy, which department must be notified to ensure the guest is okay?
The security department.
For a 'Bill to Company' settlement, what document must be attached to the invoice signed by the guest?
An approval letter or voucher from the company.
If a guest's final bill exceeds the pre-authorized amount on their credit card, what must the cashier do before settling the account?
Call the credit card's authorization center to approve the new total.
When a guest requires a room change, under what circumstances should they be told to come back to the front desk for the new key?
Under no circumstances; the key should be delivered to them.
What is the key difference in rate handling between an 'upsell' and an 'upgrade' during a room move?
An upsell involves changing to a higher rate, while an upgrade keeps the original rate.
How are hotel-issued gift certificates and vouchers treated for payment purposes?
They are treated like cash.
If a guest uses a gift certificate with a value higher than their bill, what happens to the remaining balance?
No change should be returned to the guest.
Who is responsible for authorizing a company to have direct billing privileges with the hotel?
The hotel's credit manager or financial controller.
What is an AR-ID in the context of hotel billing?
It is an Accounts Receivable ID assigned to a company, enabling them to be billed on credit.
Why is it important for a guest to sign the final bill for a 'Bill to Company' account at checkout?
To acknowledge the charges are correct and prevent future billing disputes.
Term: Walk Situation
Definition: An occurrence where a hotel cannot accommodate a guest with a confirmed reservation due to overbooking, requiring the guest to be relocated to another hotel.
When a hotel 'walks' a guest, what three expenses are typically covered at the alternate hotel?
The room and tax for the first night, one long-distance phone call, and transportation.
If a guest who was 'walked' returns to the hotel the following day, they should be pre-registered and _____.
upgraded to the best available accommodation
When a doctor is called to the hotel, who must escort them to the guest's room?
The Duty Manager or a Guest Relation Executive.
If a guest wishes to charge a doctor's consultation fee to their room, it is posted on their folio as a '_____'.
Paid Out
What specialized service is often provided to guests with disabilities for their convenience during arrival and departure?
In-room check-in and check-out.
What is written on an express checkout folio in place of the guest's actual signature?
S.O.F., which stands for 'Signature On File'.
The service of exchanging foreign currency is usually restricted to _____ or guests with a reservation.
in-house guests
When handling an intoxicated guest, it is best to invite them to a location _____ to discuss the situation.
away from other guests
If an intoxicated guest becomes rude or uncooperative, what should be considered the last resort?
Calling the security officer.
Before loading a group's luggage onto transport, in whose presence should the loading be done?
In the presence of the driver or their helper.
What must be obtained from the bus driver after a group's luggage has been successfully loaded?
A signoff acknowledging receipt of all pieces.
For security reasons, the left luggage facility is typically not offered to _____.
non-hotel guests
If a guest loses their luggage tag and requests their stored items, who should be called to handle the situation?
The Front Desk Manager.
After collecting luggage from a guest's room for departure, what should the bell staff do if they find the guest's bill is still unsettled and the guest has left?
Contact the duty manager and not call the guest back.
What does the acronym PIR (or BIR) stand for in the context of lost airline luggage?
Property Irregularity Report (or Baggage Irregularity Report).
Who is the primary hotel contact responsible for following up with the airport's Lost Luggage Department?
The hotel's Airport Representative.
Before a valet parks a guest's car, what should they visually inspect the vehicle for?
Any pre-existing visible marks, dents, or damage.
If a valet notices valuables left visible inside a car, who must they notify?
The guest, the Duty Manager, and Duty SecuritySecurity is the prevention of theft; fire; and other emergency situations in the workplace..
If a guest calls for a reservation on a sold-out date, what alternative can the reservation agent offer?
Arrange a booking at a sister property or a similar hotel, or offer to waitlist them.
When a reservation request must be denied, it should be logged in the system as a '_____'.
turn away
What is the primary objective of logging 'turn away' business?
To track lost revenue and identify patterns in demand or pricing issues.
What is the first step in processing a request to cancel a reservation?
Obtain the guest's name or reservation number to locate the booking in the PMS.
For a guaranteed reservation, cancellation charges are applied based on the _____ timings stated in the hotel's policy.
cancellation
What is required before charging retention fees to a credit card for a cancelled guaranteed reservation?
A written mail or email authorizing the charge.
While checking room availability for a new reservation, what information should be shared with the caller?
The main facilities of the hotel, such as the coffee shop, fitness center, or pool.
When a caller requests to 'Bill to Company', what documentation is needed to confirm the booking?
A letter of authorization from the company.
If a guest's requested room type is sold out, what is the first alternative that should be offered?
Other available room types, attempting to sell a higher category room.
Before confirming an amendment to a reservation, what must the agent check in the system?
The availability of the hotel and the requested room type for the new dates.
After a reservation has been successfully amended, what must be sent to the guest?
A new confirmation letter reflecting the updated details.
What special function should be enabled in the PMS for a pre-blocked VIP room to prevent accidental changes?
A 'fix room number' or 'do not move' function.
In addition to a VIP code, what should be entered into a VIP reservation to notify other departments of special needs?
Traces with details of amenities or actionable requests.
Who must approve all VIP amenity requests before they are distributed to the relevant departments?
The General Manager (GM) or Resident Manager (RM).
Training Summary questions:
Q1. Who is responsible for authorizing allowances?
Q2. Why it is important to choose the correct transaction code while passing allowance?
Q3. What details are to be updated on the rebate voucher?
Q4. Who is to be informed when a guest disputes a charge on an InvoiceInvoice is a�print out of bills for the guest perusal before he settles the amount stated either b...?
Q5. When should a front desk cashier pass a rebate on charges?
SOP Number: Front Office SOP – 19
Department: Front Office – Cashiering
Date Issued: 05-May-2014
Time to Train: 30 Minutes
