The check-out procedure is the final stage of the guest cycle in hotel operations. It is not merely a formality but a critical process that ensures accurate financial settlement, guest satisfaction, and operational efficiency. A seamless check-out experience leaves a lasting impression and encourages repeat business, referrals, and positive reviews.
Importance of Check-Out in the Guest Cycle
Check-out is the point where the guest’s
financial and emotional journey with the hotel concludes. It involves:
·
Settling all outstanding charges.
·
Retrieving feedback from the guest.
·
Handling requests for future bookings.
·
Providing transportation or baggage assistance.
·
Ensuring the guest departs with a positive experience.
Mistakes or delays during check-out can
negatively impact the guest's overall perception of the property, even if the
rest of their stay was pleasant.
Step-by-Step Check-Out Procedure
The check-out process typically involves the
following steps:
1.
Greeting the
Guest:
As the guest approaches the front desk, the staff should offer a warm,
courteous greeting. Personalization (using the guest's name) enhances service
quality.
2.
Room Number
Confirmation:
Ask for the guest’s room number and verify their identity (usually with a room
key or last name).
3.
Retrieving the
Folio:
Retrieve the guest’s folio from the Property Management System (PMS), which
includes all room and incidental charges incurred during the stay.
4.
Reviewing Charges:
Go over the charges with the guest for confirmation. This includes room tariff,
restaurant bills, minibar usage, laundry, spa, etc.
5.
Correcting Errors
(if any):
If discrepancies are found, rectify them immediately and ensure the folio is
accurate.
6.
Mode of Payment:
Ask how the guest wishes to settle the bill (cash, credit card, foreign
currency, BTA, BTC).
7.
Processing
Payment:
Based on the payment method, process the transaction securely and efficiently.
8.
Providing a
Receipt:
Hand over the printed folio and payment receipt to the guest.
9.
Collecting
Feedback:
Ask the guest for feedback, either verbally or through a feedback form or
digital survey.
10. Baggage and Transportation Assistance:
Offer help with luggage and arrange transport if needed (e.g., airport
transfer).
11. Thanking the Guest:
A courteous thank you, along with a warm goodbye, leaves a positive final
impression.
Guest Account Settlement
Settlement of the guest account is one of the
most critical elements of the check-out process. Here are the most common
methods used:
1. Cash
Payment
This is one of the most straightforward modes
of settlement.
·
The guest pays the outstanding amount in cash.
·
The front desk staff verifies the amount and
gives a printed receipt.
·
Change, if any, is returned to the guest with
courtesy.
·
Cash payments should be registered clearly in
the accounting system to maintain financial accuracy.
Example:
A guest staying for 3 nights at ₹5,000 per night with ₹2,000 spent on dining
pays ₹17,000 in cash.
2.
Credit Card Payment
Most international and corporate guests prefer
paying through credit cards due to convenience and safety.
·
The card is swiped through a secure terminal.
·
Authorization is obtained from the card-issuing
bank.
·
After approval, the guest signs the credit card
slip.
·
The bill is posted in the system as
"Settled by credit card."
Note:
It's a good practice to pre-authorize the card during check-in for estimated
charges.
Example:
A guest from the UK uses a MasterCard to settle their bill of ₹22,000. After
signature and approval, the transaction is completed in seconds.
3.
Indian Currency Settlement
The guest pays using Indian legal tender —
coins and banknotes.
·
High-value bills (₹500, ₹2000) are commonly
used.
·
The staff must verify for counterfeit currency
using a UV machine or scanner.
·
Exact change should be offered where possible.
4.
Foreign Currency Settlement
Hotels authorized to accept foreign currency
must comply with RBI and FEMA guidelines.
·
Only designated hotels with money-changing
licenses can accept foreign currencies.
·
Exchange rates are based on current bank or RBI
rates.
·
Details of the foreign currency received must be
logged and recorded with the guest’s passport and visa copies.
Example:
A guest pays $300 to settle a ₹25,000 bill. Based on the current exchange rate,
the balance is calculated, and the remaining amount (if any) is paid back in
INR or posted as tips/service charge.
Transfer of Guest Account
Sometimes, guests transfer their accounts to
other paying entities:
1.
Account Transfer to Another Guest
If a family or group books multiple rooms
under one lead guest’s name, other room charges can be transferred to that main
guest’s account.
Example:
Room 102 and 103 are occupied by a family, but the father in Room 102 wants to
settle the entire bill. Room 103's charges are transferred to Room 102's folio.
2.
Transfer to Another Department (Internal)
Charges incurred in the room but pertaining to
another department (like banquets or spa) are transferred accordingly for
departmental accounting.
3.
Transfer to Company/Corporate
Sometimes, a guest’s employer or sponsor is
responsible for the payment. In such cases, the guest account is transferred to
the BTA or BTC account for billing.
BTA (Business Travel Account)
Definition:
A BTA is a centralized corporate payment
system offered by some credit card companies (e.g., American Express) for
organizations whose employees travel frequently.
Purpose:
·
Consolidate hotel and travel bills of employees.
·
Simplify expense tracking for the company.
·
Remove the need for employees to pay
individually and claim reimbursement.
Process:
·
Hotel bills the organization directly under a
BTA agreement.
·
Guest signs the bill but does not pay directly.
·
A monthly statement is generated and sent to the
company.
Example:
An Infosys executive stays at a hotel under a corporate agreement. The total
bill is charged to Infosys’ BTA and settled at the end of the month.
BTC (Bill to Company)
Definition:
BTC means billing the charges directly to the
company that has a credit arrangement with the hotel.
Eligibility:
·
Must be a pre-approved, credit-worthy corporate
client.
·
Agreement must specify what expenses are covered
(room only, room + meals, etc.).
Procedure:
·
Guest presents a letter of authorization or BTC
form at check-in.
·
At check-out, the bill is transferred to the
company’s account.
·
The guest doesn’t pay unless there are extras
not covered in the agreement.
Risks
& Mitigation:
·
Hotels must verify credit limits and payment
history.
·
Delayed payments can affect hotel cash flow.
Express Check-Out
Definition:
Express Check-Out allows guests to check out
quickly without waiting in line at the front desk.
Target
Audience:
·
Business travelers
·
Frequent guests
·
Corporate clients
Process:
1.
During check-in or stay, the guest opts for Express
Check-Out.
2.
A pre-authorized credit card is kept on file.
3.
On the day of departure, the guest leaves the key and
departs.
4.
The bill is sent via email or slipped under the door.
5.
The card is charged automatically for the outstanding
balance.
Advantages:
·
Saves time
·
Enhances guest satisfaction
·
Reduces front desk congestion
Late Check-Out
Definition:
Late check-out refers to a guest’s request to
stay in the room beyond the standard check-out time (usually 11 AM or 12 PM).
Policies:
·
Subject to availability
·
May incur half-day or full-day charges
·
Must be approved by the front office manager
Billing:
·
If the guest stays beyond 2–3 hours, a half-day
rate may apply.
·
After 6 PM, most hotels charge for a full extra
day.
Importance:
·
Generates additional revenue
·
Provides flexibility to guests with late flights
or meetings
Example:
A guest with a 9 PM flight requests to stay till 6 PM. The hotel charges 50% of
the room rate and updates housekeeping accordingly.
Post Check-Out Responsibilities
1.
Update Room
Status:
Mark the room as “Vacant” or “Dirty” in the PMS for housekeeping to prepare it
for the next guest.
2.
Inventory Check:
Verify minibar, linens, room equipment for damages or missing items.
3.
Send Receipt and
Thank You Note:
Email the final receipt and express gratitude.
4.
Guest Feedback
Collection:
Encourage the guest to review the property on TripAdvisor, Google, or internal
feedback forms.
5.
Data Entry &
Reports:
Update financial records, generate daily revenue reports, and flag any
discrepancies.
