Settlement of bills in the hotel industry can be done through various modes of payment, such as cash, credit, and foreign exchange. Let’s take a look at each mode in detail:
Cash mode: This mode of payment involves settling the bill using cash. Cash payments are generally preferred for smaller transactions and are commonly used for settling bills for food and beverage services. In the cash mode, the guest pays the full amount of the bill in cash and receives a receipt in return.
Credit mode: This mode of payment involves settling the bill using a credit card. Credit card payments are preferred for larger transactions and are commonly used for settling bills for room charges and other hotel services. In the credit mode, the guest provides their credit card details, and the hotel processes the payment through a payment gateway. The guest then receives a receipt for the transaction.
Foreign exchange regulation and procedure: When guests settle bills in foreign currency, there are certain regulations and procedures that need to be followed. Hotels are required to maintain proper documentation and follow the guidelines issued by the central bank of the country. The hotel must have a license to deal in foreign exchange and maintain proper records of all transactions. The exchange rate must be transparent and fair, and any commission charged should be clearly mentioned on the bill. The guest should receive a receipt for the transaction, which clearly states the amount paid in both the foreign and local currency.
Tasks – Foreign Exchange Encashment Receipt (FEER)
Foreign exchange encashment receipt (FEER) is a document that serves as proof of exchange of foreign currency into the local currency. It is a critical task for hotels that deal with international guests who require foreign currency exchange services.
The following are the tasks involved in the process of preparing a foreign exchange encashment receipt:
Verification of guest’s identity: The first step in the process is to verify the guest’s identity, preferably by checking their passport. This is to ensure that the guest is the rightful owner of the foreign currency and to prevent fraudulent activities.
Determining the exchange rate: The hotel needs to determine the current exchange rate for the foreign currency being exchanged. This is usually done by consulting with a local bank or money exchange bureau.
Calculating the amount to be exchanged: Based on the exchange rate, the hotel calculates the amount of local currency that the guest will receive in exchange for their foreign currency.
Issuing the FEER: The hotel then issues the foreign exchange encashment receipt, which includes details such as the guest’s name, the foreign currency exchanged, the exchange rate, the amount of local currency received, and the date and time of the transaction.
Filing the FEER: The hotel must keep a record of all foreign exchange transactions and file the FEER for accounting and auditing purposes.
Guest bill (final)
A guest bill, also known as a final bill, is a document prepared by the front office staff of a hotel or resort at the time of a guest’s departure. It is a statement of charges for the guest’s stay and any additional services used during their stay.
The guest bill typically includes the following information:
Guest information: Name, address, contact information, and room number.
Room charges: The room rate, number of nights stayed, and any additional charges such as taxes or resort fees.
Food and beverage charges: The cost of any meals, drinks, or room service ordered during the stay.
Other charges: Any additional charges incurred during the guest’s stay, such as telephone calls, laundry services, or mini-bar charges.
Discounts or adjustments: Any discounts or adjustments made to the bill, such as promotional offers or credits for unsatisfactory service.
Total charges: The total amount due, including all charges and any applicable taxes.
Payment details: The payment method used to settle the bill, such as cash, credit card, or traveler’s checks.
A guest weekly bill is a summary of the guest’s charges accumulated over a week or more, which is provided to guests who have an extended stay at the hotel. This allows guests to keep track of their expenses and make necessary adjustments to their spending.
A travel agency voucher is a document provided by a travel agency to a hotel to pay for a guest’s stay. The voucher includes the guest’s name, the date of their stay, the room rate, and any other applicable charges. The hotel then deducts the total amount from the voucher and returns any unused funds to the travel agency.
