How To Handle Guest With High Balance / Floor Limit

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Floor Limit or High Balance Guest in hotels

As a hospitality professional, it is important to handle all guests with respect and professionalism, regardless of their balance or floor limit. However, there are a few key strategies that can help ensure a positive experience for both the guest and the hotel.

Firstly, it is crucial to communicate clearly with the guest about their balance or floor limit. If a guest has a high balance or has exceeded their floor limit, it is important to explain the situation calmly and respectfully and to provide options for resolving the issue. This could include setting up a payment plan, offering alternative payment methods, or adjusting their reservation to better suit their budget.

It is also important to maintain a positive and friendly demeanour throughout the interaction. Guests may feel embarrassed or frustrated if they have exceeded their balance, and it is important to be empathetic and understanding. By maintaining a positive attitude and offering solutions, you can help ensure that the guest feels valued and respected and that their stay at the hotel remains enjoyable.

Ultimately, handling guests with high balances or floor limits requires a combination of clear communication, empathy, and professionalism. By following these strategies, you can help ensure that all guests have a positive experience at your hotel, regardless of their financial situation.

Handling Guests With High Balance / Floor Limit

high balance report is made on a daily basis after the completion of the Night audit / End of day process which states all the guest accounts whose totals are near to or in excess of the credit limit of the hotel.

The Floor limit ( the maximum credit limit) given to different types of guest will be set by the hotel management. 

  • Any guests who had exceeded this floor limit is captured on the report ‘High Balance Guest’. 
  • It is the responsibility of the Night Auditor / Night Manager to prepare this report every night after the day closing.
  • The report should list every room folio which is having a balance of more than the hotel’s standard floor limit (Eg: All guests who have a balance of more than $500 for individual / FIT guests).
  • Based on this list the night auditor or front desk agent responsible for night shift prepares a letter and also print and attach the folio. This set is send to the front office manager for his review.
  • The Front Office Manager will assume responsibility for these accounts for required follow-up action. All room accounts listed must be thoroughly checked for method of payment and booking correspondence.
  • The Front office manager will then sign the letter and send a copy of the guest room requesting him to make a partial settlement or make a deposit in the reception so that they can extend the credit facilities to the guest.
  • If an approved credit card voucher or pre-authorization is already taken and the charges do not exceed the current balance plus the remaining number of nights room and tax, then no further action is necessary. When a reservation folio exceeds this amount, the card authorization center must be contacted and a new pre-authorization to be taken.
  • 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 credit card. The authorization code and amount are then entered into the appropriate field on the property management system (PMS).
  • Reservations which are to be billed to the company account or bills to the Travel agent have to been approved for credit by the accounts department.
  • In the case of any clarification regarding the current credit limit or validity of an AR ( Accounts receivables) billing, then the same is to be reconfirmed with the accounts/credit department.
  • If the above conditions are not met for customers with a credit facility, then the guest must be contacted for immediate payment of the account. 
  • A detailed report about the action taken on each account listed on the high balance report must be noted on the same report and a copy of the report must be forwarded to the General Manager, financial controller, Director of Sales and Resident Manager.

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