What is a hotel folio?
A hotel folio is a document that collates charges and payments incurred by a guest during their stay, and helps a hotel to accurately track these numbers. Historically the word “folio” has referred to a ledger or book of accounts, and the hotel industry is one of the few that still uses the term.
That’s the hotel folio definition, but what is the use of hotel folios? This itemised record of all the charges that a guest has incurred over the course of their stay – room, food and drinks, laundry, spa treatments – brings transparency to the dealings between a hotel and its guests.
Who manages guest folios? They’re generated by the hotel throughout the course of a guest’s stay. At the end of the stay the folio is converted into a bill that the guest reviews, then an invoice that the guest pays, and a receipt that is proof of that payment.
What is the difference between folio and invoice?
A folio is a record of charges that is updated in real time throughout a guest’s stay. An invoice is the final official document that collates all these charges.
Is a guest folio a receipt?
No, a guest folio isn’t a receipt. As mentioned above, a guest folio is a live, itemised record of charges, while a guest receipt is proof of payment for the finalised list of fees and charges.
In this guide we will take a closer look at hotel folios to understand what they are, how they work, and how your property can better manage them.
What is the purpose of a hotel folio?
Hotel folios allow properties to track the charges incurred and payments made by a guest during their stay, to ensure that the guest is billed accurately both during and at the end of their visit.
Why is hotel folio so important for billing and payment workflows?
An itemised hotel folio is critical for billing and payment processes, as it accurately tracks and organises charges, prevents discrepancies, and can seriously streamline the check-out process.
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Types of hotel folios
While the term ‘hotel folio’ is often used interchangeably with ‘guest folio’, there are other types of folios in hotel businesses too.
Guest folio
As mentioned above, this folio tracks all charges incurred and paid by a guest staying at your hotel.
Master folio
A master folio in a hotel consolidates the collective charges for a group or organisation, covering multiple guests or even multiple events.
Non-guest folio
This folio records transactions for individuals or entities using hotel services without staying overnight.
Employee folio
This folio monitors any expenses incurred by your staff.
What is included in hotel folio?
A hotel folio includes any charges that can be incurred by a guest. This can include room charges, taxes, food, drinks, tours, service fees, payments and adjustments, as well as any additional costs incurred during the guest’s stay.
Example of a guest folio in hotels
What does a hotel folio actually look like? Let’s bring a bit of clarity to the concept with a hotel folio example:
Common problems when managing hotel folios
If you’re not careful with hotel folio management, a lot can go wrong, including:
Data inaccuracies
Hotel folio errors – incorrect or missing charges, misapplied taxes – can lead to disputes and can ultimately damage the reputation of your hotel.
Folio retrieval issues
Delays or difficulties in accessing folios can slow down the check-out process, wasting the time of guests and staff alike. This can be caused by technical issues, poor collaboration between hotel departments, or a lack of worker training.
Manual processes
The more manual your folio processes, whether updating records, reconciling payments or managing disputes, the more prone they are to errors and inefficiencies.
Hotel folio management strategies
To successfully manage hotel folios you need to implement the right tech, deliver the right training and establish the right systems and processes:
Reinforce payment regulations in hotel folio management
When establishing your hotel folio systems and processes, you need to ensure that they tick all the relevant regulatory boxes, from tax compliance to consumer rights.
Train hotel staff on effective folio handling
The best hotel folio systems and procedures in the world won’t mean much if your staff aren’t trained on them. Make sure that every team member knows exactly what they need to do, and when and how they need to do it.
Leverage on hotel folio data
Once you’ve established the basics, you can maximise the value you gain from hotel folios by leveraging the data you collected. You can create more personalised guest experiences, develop more enticing loyalty programs, and invest in services that have proven most popular with guests.
Integrate folios with hotel systems
The best hotel folio management tools tend to be cloud-based and mobile optimised, so your staff can use them from anywhere.
They should also be easy to navigate, intuitive to use, and perhaps most importantly, they should integrate seamlessly with your other hotel tools, as this opens up opportunities for time-saving, error-minimising automations.