The mode of payment refers to the various methods of payment by which the guest can settle or pay his/her bills in the hotel. Whenever guest checks in a hotel, he/she has to make clear about the modes of payment at the time of registration so that, it will greatly reduce the problem while settling the bills.
When the guests check out of the hotel usually they pay the bills by cash or credit card, but in some cases, the charges are billed to the company account, by traveler cheque, and through travel agent/ airlines voucher.
The different modes of payment through which guest can settle or pay their bills are as follows:
It is the simplest and common method of payment which is done in local currencies as well as foreign currencies. It is the most simple and instant mode of payment used by the guests. While doing the payment the bill is presented by front office cashier to the guest and payment is done on hand through cash. The cashier must know the current rate of exchange details and skill to evaluate the rates. Different countries have a different restriction to hotel regarding foreign currencies. Mostly in many of the hotels, there are a lot of tourists guest than the guest of same countries and many of the tourists pay with their own country currency so it is very important for the front office cashier to handle foreign exchange carefully because we cannot upset the guests. There is some procedure for foreign exchange transactions which must be adopted by the front office cashier while handling foreign exchange receipts. The procedures are:
Every hotel has its bank account to facilitates business. Hotel accepts both company cheque and personal cheque up to a certain limit accompanied by the bank guarantee card. It is another form of cash. Payment through the cheque is the safer and convenient. So most of the customers prefer to the payment through the cheque.
A credit card is a wallet-size small card issued and guaranteed by the bank to its valuable customer that authorizes the person named on it to charge goods and services to his or her account.
It differs from a debit card with which money is automatically deducted from a bank account of the cardholder to pay for the goods and services. Use of credit card was originated in the U.S. in the 1920s. Early credit cards were issued by various firms (for example , oil companies and hotel chains) for the use of their outlets only. Credit cards are issued by banks and financial corporations after scrutinizing the customer creditability and repayment power. While considering an application for credit card, following details are called for;
Benefits for credit card
Benefits of accepting the card for the merchant
There are also procedures for accepting credit cards which must be followed by the cashier and they are:
If the guest uses the hotel facilities and billing is instructed as per company account it means that the bill will be paid by the allied company. The big business organization makes an agreement with the hotel to provide services to their staff and customer of the company. Credit section of hotel sends a letter with the bill attached, to the respective company for payment. The bill should be signed by the guest who was sent by the company. The company may pay the bill through cash or by cheques.
As the name suggests it is a cheque which is issued by a bank to the travelers in exchange for cash. When a traveler visits a long distance , they exchange their currency into traveler's cheque. The bank which issues the travelers cheque takes the signature of the traveler in the cheque undersigned. Traveler cheque is also another form of cash. It brings down the trouble of carrying a huge amount of cash, which does not seem to be safe for long distance travelers. Travelers check is encashed only when the cashier receives the specimen of the cheque holder signature and tallies it with the passport details. All uncashed travelers cheque are sent to the local bank for payment.
The special document which is printed form and issued by travel agencies and airlines stating the required services to be provided by the hotel to the guest. The hotel send a bill to a guest to respective travel agencies or airlines who issued the voucher for payment.
Joshi, Basant Prasad et.al., Fundamentals of Hotel Management-XII, Sukunda Pustak Bhandar,Kathmandu
Bhandari, Saroj Sing et.al., Principle of Hotel Management-XII, Asmita Publication, Kathmandu
Oli, Gopal Singh et.al., Hotel Management Principle and practices-XII, Buddha Prakashan, Kathmandu
The different modes of payment through which guest can settle or pay their bills are: