FO+Terminologies

Front Office Terminologies ¢ **access time**  the amount of time required for a processor to retrieve information from the hard drive; recorded in milliseconds ¢ **accounts payable**  financial obligations the hotel owes to private and government-related agencies and vendors ¢ **accounts receivable**  amounts of money owed to the hotel by guests ¢ **aging of accounts**  indication of the stage of the payment cycle—such as 10 days old, 30 days overdue, 60 days overdue ¢ **American plan**  a room rate that includes meals, usually breakfast and the evening meal, as well as room rental in the room rate ¢ **bottom up**  a sales method that involves presenting the least expensive rate first ¢ **cancellation code**  a sequential series of alphanumeric combinations that provide the guest with a reference for a cancellation of a guaranteed reservation ¢ **cash bank**  a specific amount of paper money and coins issued to a cashier to be used for making change ¢ **cashier’s report**  a daily cash control report that lists cashier activity of cash and credit cards and machine totals by cashier shift ¢ **chain**  a group of hotels that follow standard operating procedures such as marketing, reservations, quality of service, food and beverage operations, housekeeping, and accounting ¢ **city ledger accounts**  a collection of accounts receivable of nonregistered guests who use the services of the hotel ¢ **commercial cards**  credit cards issued by corporations, an example of which is Diners Club ¢ **commercial rates**  room rates for businesspeople who represent a company but do not necessarily have less bargaining power because of their infrequent or sporadic pattern of travel ¢ **complimentary rate (comp)**  a rate for which there is no charge to the guest ¢ **convention guests**  guests who attend a large convention and receive a special room rate ¢ **corporate client**  a hotel guest who represents a business or is a guest of that business and provides the hotel with an opportunity to establish a regular flow of business during sales periods that would normally be flat ¢ **corporate rates**  room rates offered to corporate clients staying in the hotel ¢ **current guests**  guests who are registered in the hotel ¢ **cycle of service**  the progression of a guest’s request for products and services through a hotel’s departments ¢ **daily flash report**  a PMS listing of departmental totals by day, period to date, and year to date, which helps the manager to determine the financial success of the previous day and the current status in achieving other financial goals ¢ **daily sales report**  a financial activity report produced by a department in a hotel that reflects daily sales activities with accompanying cash register tapes or point-of-sale audit Tapes ¢ **debit cards**  embossed plastic cards with a magnetic strip on the reverse side that authorize direct transfer of funds from a customer’s bank account to the commercial organization’s bank account for purchase of goods and services ¢ **European plan**  a rate that quotes room charges only ¢ **extended stay**  a level of service that attracts long-term guests by providing light food service and amenities that include fully equipped kitchenette, spacious bedrooms, and living areas for relaxation and work ¢ **folio**  a guest’s record of charges and payments ¢ **full house**  100 percent hotel occupancy; a hotel that has all its guest rooms occupied ¢ **general ledger**  a collection of accounts that the controller uses to organize the financial activities of the hotel ¢ **half-day rate**  a room rate based on length of guest stay in a room ¢ **house count**  the number of persons registered in a hotel on a specific night ¢ **late charges**  guest charges that might not be included on the guest folio because of a delay in posting by other departments ¢ **manager’s report**  a listing of occupancy statistics from the previous day, such as occupancy percentage, yield percentage, average daily rate, RevPAR, and number of guests ¢ **military and educational rates**  room rates established for military personnel and educators ¢ **modified American plan**  a room rate that offers one meal with the price of a room rental ¢ **money wire**  an electronic message that authorizes money from one person to be issued to another person ¢ **night audit**  the control process whereby the financial activity of guests’ accounts is maintained and balanced on a daily basis ¢ **no-show factor**  percentage of guests with confirmed or guaranteed reservations who do not show up ¢ **occupancy percentage**  the number of rooms sold divided by the number of rooms available ¢ **optimal occupancy**  achieving 100 percent occupancy with room sales that will yield the highest room rate ¢ **optimal room rate**  a room rate that approaches the rack rate ¢ **outstanding balance report**  a listing of guests’ folio balances ¢ **overbooking**  accepting reservations for more rooms than are available by forecasting the number of no-show reservations, stayovers, understays, and walk-ins, with the goal of attaining 100 percent occupancy ¢ **package rate**  room rates that include goods and services in addition to rental of a room paid in advance (PIA): guests who paid cash at check-in ¢ **paid-outs**  amounts of monies paid out of the cashier’s drawer on behalf of a guest or an employee of the hotel ¢ **posting**  the process of debiting and crediting charges and payments to a guest folio ¢ **rack rate**  the highest room rate category offered by a hotel real estate ¢ **registration card**  a form on which the guest indicates name, home or billing address, home or billing phone number, vehicle information, date of departure, and method of payment ¢ **reservation code**  a sequential series of alphanumeric combinations that provide the guest with a reference for a guaranteed reservation ¢ **room status**  information on availability of entry to a guest room—reservation (open, confirmed, guaranteed, or repair) or housekeeping (ready, on change, or out-of-order) ¢ **sleeper**  a room that is thought to be occupied but is in fact vacant ¢ **stayovers**  currently registered guests who wish to extend their stay beyond the time for which they made reservations ¢ **surcharge rates**  telephone rates for adding service charges for out-of-state long-distance telephone service ¢ **traveler’s checks**  prepaid checks that have been issued by a bank or other financial organization ¢ **understays**  guests who arrive on time but decide to leave before their predicted date of Departure ¢ **walk-in guests**  guests who request a room rental without having made a reservation