Hotel credit policy starts with the reservation process. During the process of finalizing the reservation, the payment status of the guest is determined as group or individual according to hotel standards.
Credit policies implemented by the finance department
The hotel’s procedure for guests who check in for the day and arrive without a reservation
Procedure for long-stay guests
Credit procedures applied to Agencies and Companies
Invoice crediting, credit card, payment, cancellation, refund policies in hotels
The hotel’s credit policies are determined and implemented by the accounting department. All guests whose credit is not defined by the accounting department pay their accounts in advance upon check-in. The receptionist is responsible for the accounts of the guests who are not paid within this definition and who leave without paying.
Companies and agencies that sign an agreement with the hotel can start working with the hotel on credit if deemed appropriate.
Credit limits are different for each company.
When the limit is exceeded, accounting has to negotiate with the company and receive payment.
Each credit company is indicated as Account receivable in the A/R section of the system. Or Direct Billing.
If the company will pay for the guest, the system will show ;
In the CTC/Charge to Company section, there must be A/R.
CTC Charge to Company Room Only
CTC Charge to Company Bb
CTC Charge to Company All must be processed visibly in the system.
Companies can pay the invoice by bank transfer or 30/60/90 days.
This situation is called Aging in accounting.
The invoice of the guest leaving the hotel is sent, followed up and collected by the accounting department to be paid to the company.
Hotel Credit Card Policy
It is the responsibility of the receptionist to ensure that the hotel guest’s credentials and credit card match.
The validity of the card must be checked.
The guest’s signature on the back of the card must match the name and surname, identification details and the signature on the Accommodation Form.
Credit card payment limits of the guests who stay for a long period of time must be checked frequently by the front office manager and his/her assistant.
Daily credit balance report is prepared and additional payment is taken from the guest in case of guests exceeding the spending limit.
A pre-authorization is taken from the credit card of the guests at the entrance for the amount of the day they will stay and extra expenses, and the provision is turned into sales at the exit.
The received credit card authorization is attached to the guest accommodation card.
In cases where the payment is not made by the guest, the necessary notes should be taken in the accounting accounts in order to easily see the name differences between the person staying and the person paying. In other words, it should be noted that the payment was made by a different person.
If the guests who have never paid at the entrance have card numbers, they should be taken manually from the post office.
If the guest’s payment was made by someone else and the balance remains, the form is filled out and submitted to accounting together with the invoice.
If the guest’s payment was made by someone else and there is a balance left, the form is filled out and submitted to accounting together with the invoice.
If the guest has made a payment and then additional expenses are incurred, a form can be prepared and collected manually by post.
Credit Policy and Direct Billing Authorization Process
The hotel’s credit policy and SOP (Standard Operating Procedure) for the direct billing authorization process is essential for any business. This SOP outlines the guidelines for extending credit to customers and authorization procedures for direct billing. In other words, the company allows guests to pay for their stay after a certain period of time after check-out. The hotel has set certain limits on this issue. Each company has a different credit limit.
The credit policy determines the terms and conditions under which the hotel will provide credit to its customers. It includes credit limits, payment terms, and procedures for credit checks and credit approvals. These details ensure that the hotel’s financial risk is minimized and that customers are satisfied with the payment terms.
Companies and agencies wishing to establish a direct billing relationship with the hotel must comply with the minimums, limitations and procedures set out in this policy.
It is the responsibility of the Sales Manager to determine a payment method prior to the arrival of the group. The Director of Sales and Marketing, the DOF and the General Manager are responsible for implementing this policy and monitoring compliance with this policy.
Credit Policy and Direct Billing SOP Procedure:
Direct Billing is a method of collecting the cost of services provided by the hotel from the bank accounts of the companies represented by the hotel guests. This process takes place without requiring guests to make personal payments at the time of hotel reservations or check-in and check-out.
This practice offers great convenience and efficiency for all parties involved. Guests save time by not having to fill out the necessary forms, pay directly and avoid disruption to their travel plans.
The payment method should be discussed at the initial sales stage and agreed upon in the final sales contract. Direct Billing Privileges are also granted to specific groups according to the hotel’s policy.
The advance payment procedures for groups that will not be considered for direct billing and require advance payment are as follows:
Political, Sports, Theater, Travel agencies, School events, Weddings, Religious, Christmas and New Year’s Eve and Christmas Parties, Competitions, any event linked to the sale of tickets and the total can be billed.
For such groups where payment in advance is required by policy, it is the responsibility of the Reservation Sales Manager to communicate this policy requirement to the customer at the initial stage of the sales process.
The Reservation Sales Manager must ensure that full payment has been received prior to the start of the event. This can be in the form of cash, credit card or company/personal check. The full amount must be received at least 3 – 7 working days before the start of the event, otherwise the event will not take place.
The Reservations and Sales Manager is responsible for ensuring that the payment made is sufficient to cover all costs, including tax or applicable tax exemptions.
Filling out the Company/Agency Loan Application Form
Research review and references
Mail order policy
Hotel’s credit card policy
Credit card refund amount policy
Hotel’s invalid credit card policy
Policy on loans to agents
Policy on loans to companies
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