Académique Documents
Professionnel Documents
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ON
Financial Processes in Hotel Industry
FOR
ITC Gardenia, Bangalore
IN PARTIAL FULFILLMENT OF THE AWARD FOR THE
DEGREE OF INTEGRATED BBA-MBA
UNDER THE GUIDANCE OF
Mr. Joy Raj
Training Coordinator, ITC Gardenia
Submitted by:
Vedantam Gupta (20152095)
BBA- MBA 2015
JINDAL GLOBAL BUSINESS SCHOOL
O.P.JINDAL GLOBAL UNIVERSITY
SONIPAT
EXECUTIVE SUMMARY
ITC Gardenia, a hotel that is conveniently located in the commercial heart of
Bengaluru - equipped with 292 Luxury rooms and suites ITC Gardenia offers the
discerning business and leisure traveller the best in Hospitality and Hotel
services. Overlooking the century old Bangalore Club, the hotel is situated in the
midst of Bengaluru's most elite neighbourhood. An abode for the indulgent and
the aspirational, a sublime confluence of the city's unhurried past and it's dynamic
present - ITC Gardenia embodies the splendours of nature. Inspired from the
magnificent gardens of the city, this luxury hotel was built as a tribute to the
beautiful city of Bengaluru and is in close proximity to key business districts and
IT hubs of Bengaluru.
Acknowledgement
Vedantam Gupta
Place: MCA Management Consultants Pvt Limited
Date: 27th July 2019
Declaration
I, Vedantam Gupta, hereby declare that the presented report of internship titled
“Financial Processes in Hotel Industry” of ITC Gardenia, Bangalore is uniquely
prepared by me after the completion of 40 days’ internship at ITC Gardenia,
Bangalore.
I also confirm that, the report is only prepared for my academic requirement. It
must not be used for any other purpose.
…………………………………..
Vedantam Gupta
20152095
BBA MBA
OP JINDAL GLOBAL UNIVERSITY
SONIPAT HARYANA
TABLE OF CONTENTS
SL No. TOPIC PAGE
NO.
1 Cover Page 1
2 Executive Summary 2
3 Disclaimer 2
4 Acknowledgement 3
5 Declaration 4
6 Introduction 6
11 Methodology of Analysis 9
12 Detailed Analysis 10
13 Conclusion 19
INTRODUCTION
While I was training in the Finance department of ITC Gardenia, I was observing
and assisting in the day to day processes that happen in a hotel.
1. Income
2. Credit
3. Payables
4. F&B Controls
5. Purchases
6. Store
7. IT Department
In ITC Gardenia, the Purchase Manager handles the purchases of the entire
cluster. Also Payables and Receivables are done on a shared basis in ITC
Gardenia between ITC Gardenia, ITC Windsor, WelcomHotel Bangalore.
METHODOLOGY OF ANALYSIS
The methodology of analysis for the above project was that I had to spend
certain time period with each department and understand the process involved
in that area and how it assists the other sub departments.
DETAILED ANALYSIS
Before understanding the financial processes in the hotel, we were given a 5 day
induction on all the processes in the hotel.
In that we were told about the history and details of the hotel.
About ITC
ITC was first constituted as Imperial tobacco company, dealing in paper boards
and tobacco. Later in 1970 Imperial was changed to Indian and later on in 2001
ITC changed its name and has no full form now. Also ITC is one of the highest
tax payers in the country.
ITC Hotels- Luxury Collection has been LEED Certified (Leadership in Energy
and Environment Design). Under this ITC Hotels has been
Water +Ve for 16 Years in a row
Carbon +ve for 13 Years in a row
Solid Waste +ve for 11 Years in a row.
ITC Hotels follows a Triple Bottom Concept
Financial
Environmental
Social
ITC Hotels also have received certain awards
Peacock Suite- Largest Suite in Asia
Bukhara, ITC Maurya- Top 50 Restaurants
ITC Grand Bharat- Favourite New Leisure Hotel
Club ITC – Loyalty Program
The core Value of ITC Group are as follows
1. Trusteeship
2. Customer Focus
3. Respect for People
4. Exellence
5. Innovation
6. Nation Orientation
ITC Hotels has 3 parameters for Triple Bottom Line
1. Economic Prosperity
2. Environment Stewardship
3. Social Responsibility
After this I learnt the various Etiquette, such as Telephone, E-Mail and
Cellphone. Then I learnt about platinum standard that are followed in the hotels,
In total there are 14 Platinum Standards.
After this I learnt about Food Safety Certification, that is acquired by ITC
Hotels
1. BSA
2. FSSAI
3. ISO 22000:2005
I also learnt that there are different Chopping boards for different categories of
food products.
FINANCE DEPARTMENT
Initially I was in the Income and Credit department.
In that I learnt the following
Credit Policy of ITC Hotels ( Details cannot be shared, because of
Confidentiality)
Front Office Allowance Reports
In this report we generate the discounts that have been given to the
customers, and re verify if the allowance given was authorized or not.
Loyalty Programmes and their operating procedure
ITC Hotels has different Loyalty programmes, such as Marriott Bon Voy,
Club ITC, ITC Culinaire, WelcomClub
How are the Loyalty Points Calculated?
Revenue and Tax Liabilities, Major Revenue Sources in a Hotel
We also learnt that Finance Department in service industry also acts as
an Statutory norms fulfilling such as
o Verifying the details of the guest
o Updating the details of foreign Guest (Form C)
Opera Rate Loading Process
o Rate Communication to Revenue Manager – Fixed Corporate
Rates
o Rate Communication to Revenue Manger- LANYON and
MARRFP
Best Available Rates
This is based on the demand for the rooms. If the demand is high then the
price drops and vice versa
GST Amendments for charging tax on rooms
Previously this was done on basis of rack rates, but after and amendment the
GST rate changes based on room rates slabs.
ICE- Inter Cost Efficiency Reports
Night Audit Reports
o No show reports
o Front Office Allowance Reports
o Early Departure Reports
o Late Check out Reports
o Reservation Cancellation Reports
o Complimentary Room Reports
o High Balance Reports
o Bills on Hold Reports
I also learnt about different types of SAP ledger
o CFGD- Cash Paid (Reimbursement)
o REGD- Receipts of Cash
o CKGD- Cheques/DD
Retention Charges are also taxed (for late checkout, No Show, Early
Check In and Early departure reports)
We also provide travel packages ( ITC and ITH Agreement)- It also has
2 types- Paid Out and Part of the Package)
SPA Management System- Detailed record of each service provided in
KAYA KALP- The Spa
In Night Audit the Night Auditor does the 3 way Balance
o Cashier Report
o Detailed Report
o Checkout Folio
Cashier Audit- Done for Checkout folio to match 3 way balance, Mode
of Settlement.
Modes of Settlement done in Checkouts
o Cash
o AMEX
o VISA
o Diners Club
o Master Card
Also we do the credit card reconciliation, this is done to match the
payment that have been made and also match with the cashier Audit, so
that we get all the payments and no transaction is missed.
The cashier audit is mainly done to do rate check.
Components of Night Audit
o MICROS- Done for Outlets
o SPA
o Opera- Date Roll Over
o Opera Income Audit
o Open Check Report- If the Bill has not been Settled
Sales Reconciliation- MICROS OPERA
Night Audit Discrepancies are verified and rectified the next morning by
the day auditor.
Day Auditor Checklist
o Foreign Exchange Display Board
o Registration Cards Audit
o Front office Cash Book- Tally FO Cash Book from Opera with
Cash Collection, paid out and Foreign Encashment.
o Credit Card Settlement
o Encashment Certificate
o Complimentary Rooms
o Paid Out
o Scanty Baggage
o Advance received in case of Cash Settlement
o Pre Auth in case of Credit Card
o Wash and Change rooms
o Spot Check of FO Cash and outlet Cash
o Business Center
o Duplicate Room Key Card/Guest Locker
o Front Office Checklist
o City Ledger- Check all supporting vouchers for all check out
folios and ensure no bill is missing
o Foreign Regional Registration office
o Telephone Report
o Travel House Audit
o Income Audit
o F&B Audit
Banquets Checks
Discount in Restaurants
Pending Checks
Imprest Spot Checks
Void Checks
Mini Bar checking
o Club ITC Update
o Extra bed Request
o WelcomBreak Package
o Outlet Menu
o Pre Auth Against Guaranteed Booking
o Allowance passed as per WelcomProcedure 32
CREDIT DEPARTMENT
The credit department of the hotel looks into credit extension, credit payments
and follow ups.
There are 3 types of tax invoice that is generated at a hotel
1. Bill to Company (BTC)
In this the bill is generated as per rates mentioned in the agreement with the
company.
2. Banquets
On conclusion of the event, the bill is raised in the name of the company and
sent to the company for payment within the period specified in the agreement
3. Travel Agents
Every month the bill is generated for travel partner and the payments are made
according to the agreement.
GST Input
So if a individual is staying at the hotel then hotel pays the GST on behalf of the
customer.
And if stay is booked under the company’s name then the company will get a
GST input credit.
Guest Ledger- People who have checked in at the end of the month/ quarter
and Checking out in the next month. In this GST is paid by the hotel in any of
the above cases.
We also learnt the Tax filling process
1. Compile the data as mentioned
2. Verify the data for errors
3. Then we send this data to Divisional Headquarters and Tax Coordinator
4. Tax Coordinator will send it HQ at Kolkata
5. HQ will remit to the Government
Also I raised invoices for payments from travel agents such as Expedia,
MakeMyTrip.