Basis of Charging of a Hotel Room Rent depends on the following factors

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Basis of Charging of Room Rent depends on the following factors-

(I) Fixed Check Out Time Basis:

In this system a particular time of the day is fixed as check in/out time. It may be either 10.00 hrs or 12 noon. Mostly the hotels follow 1200 hours check in/out time. This is advantage to our hotels as it earns more revenue for the hotel.

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It has a major disadvantage of losing its goodwill as the customers are not satisfied with the billing. For example suppose a guest checks in at 10.00 hrs of 17th.

November and checks out at 1400 hrs of 18th November and the check-out time is 12 Noon, then he will be charged for 3 days. Thus we see that even though he is staying for just one day and 4 hours but he is charged for 3 days.

(II) Twenty Four Hours Check out Time Basis:

In this system the guest is charged according to the time of arrival that means that one day is calculated from the time he arrives in hotel till the same time next day. This is advantageous to the guest but earns less revenue to the hotel, for example let us consider same example as given above through this system he will be charged only for 2 days.

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(III) Night Basis:

In this system guest is charged according to the number of nights he spent in the hotel. This system is usually found in resort hotels. In order to calculate night basis charges the guest should have stayed for a minimum period of nights. For example suppose a guest checks in 10.00 hrs on 17th November and checks out at 14.00 hrs on 25th Nov. then he will be charged for 8 nights.

(IV) Day Rate Or Day Used Rate Basis:

It is another form evolved from night basis and room rent in charged for maximum 6 hours including in the stay which is never overnight.

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(V) Food Plans:

(a) European Plan (E.P.):

This plan includes only the room rent and anything that is taken from restaurant or the room service is charged to the guest.

(b) Contshestral Plan (C.P.):

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This plan includes continental breakfast along with the room rent. Anything extra that is taken is charged to the guest.

(c) Bumuda Plan (B.P.):

This plan includes American breakfast along with the room rent.

(d) Modified American plan (m.a.p.):

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This plan includes room rent along with breakfast and one of the major meals i.e. Lunch or Dinner. The guest has to specify his preference at the time of arrival.

(e) American plan (a.p.):

This plan contains room rent and all the major meals i.e. breakfast, lunch and dinner. It is also known as all inclusive plan and in French it is known as En. rates Pension.

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