Rooms Division OperationsGLOSSARYACCOUNTA form in which financial data are accumulated and summarized.ACCOUNT AGINGA method for tracking past due accounts according to the date the charge originated. ACCOUNT ALLOWANCEEither a decrease in a folio balance as compensation for unsatisfactory service or as a rebate for a coupon discount; or a correction of a posing error detected after the close of business. ACCOUNT BALANCEA summary of an account in terms of its resulting monetary amount; specifically, the difference between the total debits and total credits to an account.ACCOUNT RECEIV ABLEAn amount owed to the hotel.ACCOUNT RECEIV ABLE VOUCHERSee Charge V oucher.ACCOUNTS RECEIV ABLE LEDGERA grouping of accounts receivable , including the guest ledge and the city ledger. ACHIEVEMENT FACTORThe percentage of the rack rate that a hotel actually receives, found by dividing the actual average room rate by the potential average rate. Also called the rate potential percentage.ADJACENT ROOMSRooms close to each other , such as across the hall.ADJOINING ROOMSRooms with a common wall but no connecting door.ADV ANCE DEPOSIT GUARANTEEA type of reservation guarantee that requires the guest to pay a specified amount of money to the hotel in advance of arrival.AFFILIATE RESERV ATION NETWORKA hotel chain’s reservation systems in which all participating properties are contractually related.ALLOWANCE VOUCHERA voucher used to support an account allowance.AMERICAN PLAN (AP )A billing arrangement under which room charges include the guestroom and three meals. Also called full pension. See also Modified American Plan, European PlanARRIVIAL DATEThe date a guest plans to register at the hotel.AUDIT WORK TIMEThe period from the end of day until the completion of the audit.AUDITINGThe process of verifying front office accounting records as to accuracy and completenessAUTHORIZATION CODEA code generated by an on-line credit card verification service, indicating that the requested transaction has been approved.A V AILABILITY REPORTA report that contains expected arrival and departure information for the next several days, typically prepared as part of the night audit.A VERAGE DAILY RATEAn occupancy ratio derived by dividing net rooms revenue by the number of rooms sold.A VERAGE ROOM RATE PER GUESTAn occupancy ratio derived by dividing net rooms revenue by the number of guests.BACK OF THE HOUSEThe functional areas of a hotel in which personnel have little or no direct guest contact, such as the engineering , accounting, and human resources divisions.BACK OFFICE APPLICATION MODULESComputer software designed for specific back office uses. Typical back office modules include accounts receivable, accounts payable, payroll accounting, and financial reporting.Rooms Division OperationsBANKSee Cash BankBED AND BREAKFAST(B&B)A small lodging operation whose owner usually lives on the premises and serves a breakfast for guest.BLOCKAn agreed-upon number of rooms set aside for members of a group planning to stay at a hotel.BOOKTo sell or reserve rooms ahead of time.BOOKING LEAD TIMEA measurement of how far in advance booking are madeBRWAKEVEN ANALYSISAn analysis of the relationships among costs, revenue, and sales volume allowing one to determine the revenue required to cover all costs. Also called cost-volume profit analysis.CALL ACCOUNTING SYSTEMA device linked To The hotel Telephone system that accurately accounts for guest telephone callsby identifying each phone number dialed from guestroom telephones and tracking charges.CALL ACCOUNTNG SYSTEMA reservation voided at the request of the guestCANCCELLATION HOURThe hour after whish a property may release for sale all unclaimed non-guaranteed reservations, according to property policy.CANCELLATION NUMBERA number issued to a guest properly canceling a reservation, proving that a cancellation requestwas received.CASH ADV ANCE VOUCHERA voucher used to support cash flow out of the hotel, either directly to or on behalf of a guest.CASH BANKAn amount of money given to a cashier at the start of each work-shift so that he or she can handle the various transactions that occur. The cashier is responsible for this cashBank and fir all cash, checks, and other negotiable items received during the work-shift.CASH VOUVHERA voucher used to support a cash payment transaction at the front desk.CASINO HITELA hotel with gambling facilitiesCENTRALLL RESERV ATION SYSTEMA network for communicating reservations in which each participating property is represented in a computer system database and is required to provide roomAvailability data to the central reservations on a timely basis .See also affiliateReservation Network, Non-affiliate reservation Network, and Inter-sell Agency.CENTRALIZED ELECTRONIC LOCKING SYSTEMAn electronic locking system that operates through a master control at the front desk which is wired to every guestroom doorCHAIN HOTELA hotel owned or affiliated with other properties. See also Franchising,Management Contract, and referral GroupCHARGE VOUCHERA voucher used to support a charge purchase transaction that rakes place somewhere other tan the front desk. Also refers to as an account receivable voucher.CHECK –OUTThe procedures involved in the departure of a guest from a property , including Settlement of the guest’s account. Also ,a room status term indicating that the guest has settled his or her account ,returned the room keys, and left the hotel ,CHECK –OUT TIME the hour by which departing guests must check out of a property . CITY ACCOUTSee Non-Guest Account.CITY LEDGERThe collection of all non-guest accounts ,including house accounts and unsettled departed guest accounts .CLOSEDThe status of a date for which a reservation system will not accept additional COMMERCIAL HOTELA property, usually located in a downtown or business district ,that caters primarily to business clients .Also called a transient hotel .COMMERCIAL RATEA special room rate agreed on by a company and a hotel for frequent guests. Also called a corporate rateCOMPLIMENTAPY(COMP)A room status term indicating that the room is occupied, but the guest is assessed no charge for its use.CONCIERGEAn employee whose basic task is to serve as the gues t’s liaison with both hotel and non-hotel attractions, facilities, services, and actives.CONDOMINIUM HOTELSee Time-Share HotelCONFERENCE CENTERA property specifically designed to handle group meetings. Conference centers are oftenlocated outside metropolitan areas and may provide extensive facilities; most offer overnight accommodation.CONFIRMATIONSee Reservation ConfirmationCONFIRMATION NUMBERA code that provides a unique reference to a reservation record and assures the guest that the reservation record exists.CONNECTING ROOMSRooms with individual entrance doors from the outside and a connecting door between. Guest can move between rooms without going through the hallway.CONTINTAL BREAKFASTA small meal that usually includes a beverage, rolls, butter, and jam or marmalade. CONTRIBUTION MARGINSales less cost of sales for either an entire operating department or for a given product; represents the amount of sales revenue that is contributed toward fixed costs and/or profits.CONTROL FOLIOAn accounting document used internally by a front office computer to support all account postings by department during a system update routine.CORPORATE GUARANTEEA type of reservation guarantee in which a corporation signs a contractual agreement with the hotel to accept financial responsibility for any no-show business travelers it sponsors. CORPORATE GUARANTEEA type of reservation guarantee in a corporation signs a contractual agreement with the hotel to accept financial responsibility for any no-show business travelers it sponsors . CORPORATE RATESee Commercial RateCORRECTION VOUCHERA voucher used to support the correction of a posting error which is rectified before the close of business on the day the error was made.CREDIT (CR)An entry on the right side of an account.CREDIT CARD GUARANTEEA type of guarantee supported by credit card companies. These companies guarantee participating properties payment for reserved rooms that remain unoccupiedCREFIT CARD SETTLEMENT SYSTEMA computer interface that can instantly capture, verify, and authorize credit card information and settle accounts.CRESIT CARD VOUCHERThe form designated by a credit card company to be used for imprinting a credit card and recording the amount charged .Also called a credit card invoice.CROSS-TRAININGTeaching employees to fill the requirements of more than one position .CURRENT ACCOUNTA city ledger account than is within the current billing period.CURRENT RESERV ATION RACKSee Reservation RacksCUT-OFF DATEThe date agreed upon between a group and a hotel after all unreserved rooms in the group and a hotel after which all unreserved rooms in the group’s block will be released back to the genera; rooms inventory for sale.D CARDA night auditor’s rep ort used in semi-automated front office accounting systems.DAILY OPERATIONS REPORTA report ,typically prepared by the night auditor ,that summarizes the hotel’s financial activities during a 24-hour period and provides insight into revenues ,receivables , operating statistics ,and cash transactions related to he front office .Also known as the manager’s report.DAILY TRANSCRIPTA detailed report of all guest accounts that indicates each charge transaction affecting a guest account for the day, used as a worksheet to detect posting errors.DAY RATEA special room rate for less than an overnight stay.DAY SHIFTA hotel work –shift, generally 7:00 a.m. to 3:00 p.m.DAY USEA room status term indicating that the room will be used for less than an overnight stay. DEBIT (DR)An entry on the left side of an account.DELINQUENT ACCOUNTA city ledger account that has not been settled within the reasonable collection period, usually 90 days.DIRECT BILLINGA credit arrangement, normally established through correspondence between a guest or a company and the hotel, in which the hotel agrees to bill the guest or the company for charges incurred.DISCOUNT GRIDA grid indicating the occupancy percentage needed to achieve equivalent net revenue, given different discount levels.DNCO (DID NOT CHECK OUTA room status term indicating that the guest made arrangements to settle his or her account (and thus is not a skipper), but has left without informing the front office.DOUBLEA room assigned to two people; may have one or more beds.DOUBLE BEDA bed approximately 54 inches by 75 inches.DOUBLE OCCUPANCY RATIOSSee Multiple Occupancy Ratio.DOUBLE –DOUBLEA room with two double (or perhaps queen ) beds; may be occupied by one or more people. Also called a twin –double.DOUBLE –ENTRY BOOKKEEPINGA system for recording financial transactions in which every transaction creates that affect at least two accounts.DUE BACKA situation that occurs when a cashier pays out more than he or she receives; the difference i s due back to the cashier’s cash bank. In the front office, due backs usually occur when a cashier accepts so many checks and large bills during a shift that he or she cannot restore the initial bank at the end of the shift without using the checks or large bills. DUE OUTA room status term indicating that the room is expected to become vacant after the following day’s check –out time.EARLY ARRIV ALA guest who arrives at a property before the date of his or her reservation. ECONOMY/LIMITED SERVICEA level of service emphasizing clean, comfortable, inexpensive rooms that meet the most basic needs of guests. Economy or limited service hotels appeal primarily to budget –minded travelers.ELECTRONIC LOCKING SYSTEMA locking system that replaces traditional mechanical locks with sophisticated computer –based guestroom access devices. See also Centralized Electronic Locking System and Micro –Fitted Electronic Locking System.EMERGENCY KEYA key that opens all guestroom doors, even when they are double –locked. EMPLOYEE FOLLOA folio used to chart transactions on an account signed to an employee with charge purchased complete though that tim e.EQUIV ALENT OCCUPANCYGiven a contemplated or actual change in the average room rate, the occupancy percentage needed to produce the same net revenue as was produced by the old price and occupancy percentage.EUROPEAN PLANA billing arrangement under which meals are priced separately from rooms. See also American Plan, Modified American Plan.EVENING SHIFTA hotel of a hotel that offers world –class service. Also called the tower concept. EXPECTED DEPARTURES LISTA daily report showing the number and names of guests expected to arrive. EXPECTED DEPARTURES LISTA daily report showing the number and names of guests expected to depart as well as the number of stayovers.EXPRESS CHECK –OUTA pre –departure activity that involves the production and early morning distribution of guest folios for guests expected to check out that morning.FAMILY RATEA special room rate for parents and children in the same room.FINANCIAL REPORTING SOFTWAREA back office computer application that helps the hotel develop a chart of accounts on order to produce balance sheets, income statements, and transactional analyses reports. FIXED COSTSCosts that remain constant in the short run even though sales volume varies.FLOOR LIMITA limit assigned to hotel by credit card companies indicating the maximum amount in credit card charges the hotel is permitted to accept from a card member without. special authorization.FOLIOA statement of all transactions affecting the balance of a single account.FOLIO TRAYA bin used to store guest folios. In non –automated and semi –automated properties, folios remain in the tray throughout occupancy, except when they are used in posting transactions. Also called a folio bucket.FORECASTINGThe skill of predicting future events and trends in business. Typical forecasts developed for the rooms division include room availability and occupancy forecasts. FRANCHISINGA method of distribution whereby one entity that has developed a particular pattern or format for doing business –the franchiser –grants to other entities –franchisees –the right to conduct such a business provided they follow the established pattern.FREE INDEPNDINT TRA VELER (FIT)A guest coming to the hotel as individual and not as part of a group. Also called a Transient Guest.Front DESKThe focal point of activity within the front office, usually prominently located in the hotel lobby. Guests are registered, assigned rooms, and checked out at the front desk.FRONT DESK AGENTA front office employee whose responsibilities center on the registration process, but also typically include pre –registration activities, room status coordination, and mail, message, and information requests.ERONT OF THE HOUSEThe functional areas of a hotel in which personnel have extensive guest contact, such as the food and beverage facilities and the front office.FRONT OFFICEA department of the rooms division that is the most visible department in a hotel, with the greatest amount of guest contact. Traditional front office functions include reservations, registration, room and rate assignment, room status, maintenance and settlement of guest history records. Also, the physical location at which front –of – the –house activities are coordinated.FRONT OFFICE ACCOUNTING FORMULAThe formula used in posting transactions to front office accounts: Previous Balance + Debits –Credits =Net Outstanding Balance.。