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  1. Front office introduction
  2. Research design
    1. Aim
    2. Objective
    3. Methodology
    4. Primary data
    5. Data collection tools and techniques
  3. Organization structure of front office
    1. Cashier section
  4. The principle of hotel front office operations
    1. The guest cycle
    2. Interaction of the guest with the hotel
    3. Duties of the front office personnel
    4. Staff in the reservations office include
    5. Porters(concierge)
  5. Handling corporate and groups
  6. Foreign currency exchange in hotels
  7. Foreign exchange rules and regulations
  8. Foreign exchange market and contracts
    1. Other foreign exchange contracts
    2. Foreign exchange exposures
    3. Transaction exposures
  9. Managing foreign exchange risk
  10. Rules and restrictions for foreign exchange in hotels
    1. Foreign exchange restrictions enforced by the government
    2. Hotel regulation for foreign exchange
    3. Procedure for accepting foreign exchange
  11. Conclusion

The front office in a hotel is the department responsible for the sale of hotel rooms through systematic method of reservation, followed by registration and assigning rooms to customers. The term sale of rooms may appear misleading to those unfamiliar with the industry. 'Sale here means the use of hotel rooms at a price. A room is termed 'sold' for the day when a guest leases the room for stay in the hotel. 'Room tariff i.e. rate charged per room is computed for a "revenue day" which begins at noon of a particular day and ends at 12.00 hours the next day. In other words room charges are levied for a revenue day, which is between noon and noon. Of course, a room may be sold for half a day as well, for which special rates are applicable. Such rates are referred to as "half day" rates.

The front office in a hotel holds prime importance in view of the basic nature of business of a hotel, i.e. to sell rooms. Revenue collected from the
sole of rooms contributes to more than 50% of the total hotel sales. The profit percentage from the sale of rooms is very high. It has a complementary role of image building, which is the first and last point of contract of every guest. If one looks at each component of a front office role, one could have a better perception of this department. While the title front office is a generic term to include a number of activities, smaller hotels are satisfied to call it simply hotel reception. Thus the role of the front office is thus to reserve, receive, register, assign rooms to guests and act as a continuous source of information to guests during their stay at the hotel.

[...] The payment was negotiated at 14,135,000 Indian rupees based on the foreign exchange rate of 28.27 rupees. Thus Days Inn had to exchange $500,000 for 14,135,000 Indian rupees to pay the construction contractor. However by the time of payment, the exchange rate between the dollar and rupee changed to 28.22 rupees. Days Inn now had to pay $500886 to exchange for the 14,135,000 rupees as agreed upon in the original contract. For this particular transaction Days Inn had to pay $886 more because of the exchange rate fluctuation between the time when the contract was signed and the payable was disbursed. [...]

[...] Restrictions on Dealings in Foreign Exchange 1.21 Except for transactions involving purchase or sale of foreign currency between any person and an authorized money changer, no person, firm or company, other than an authorized dealer, is permitted to enter into transactions involving the buying, acquiring or borrowing from, or selling, transferring or lending to, or exchanging with a person not being an authorized dealer, any foreign exchange except with the general or special permission of Reserve Bank. Anyone dealing in foreign exchange in any form, except to the extent indicated above, will be deemed to be contravening the provisions of the Act. [...]

[...] Again the function of the currency options contract is to hedge against the foreign exchange fluctuation. The call options are often used to hedge future payables while a put option is employed to hedge future receivables. Swap contract A swap is the simultaneous buying of a foreign currency at spot rate, and selling the foreign currency back into the initial currency at forward rate. For instance, assume a US based hotel company needs French francs now. The hotel company can enter into a swap agreement wherein the hotel trades dollars for franks now at spot rate and trades the surplus franks back to dollars at forward rate in three months. [...]

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