Fourth at HITEC 2017: everyone’s talking about… hotel cash management
The Fourth team is at the HITEC show in Toronto to meet old friends and make new ones, listen, learn and see the amazing new developments in the US market - about 10x the size of the UK market. Over four days, thousands of hotel technology professionals from all over the US and beyond will visit.
I hope this series of short blogs will provide an interesting glimpse into some of the industry issues occupying the minds of US hotel leadership.
Many of these are similar to the UK’s issues – employee recruitment and retention, labour cost, supply chain pressures, the perpetual battle for customer loyalty in a competitive landscape, legislation, allergens and nutrition to name just a few.
This is one of a number of blogs which look at some of the themes that have been highlighted during the show.
This blog looks at Hotel Cash Management.
It’s all too familiar, isn’t it – at the end of a long shift comes the beginning of a long process of cashing up and reconciliation. Doing it manually causes errors, elongates a shift and takes the managers away from their team members. I remember it well from my own days working in a hotel!
One company here at HITEC, Evention, gave an interesting presentation on the concept of cash recycling. It effectively combines cashier self-banking and completely automated cash reconciliation.
At the start of a shift, the cashier goes to the in-hotel cash recycling machine, which identifies them biometrically. They’re given their float in an appropriate cash mix (eg smaller denominations for coffee shops, larger ones for bars). At the end of the shift, they simply dump their entire cash register (float plus takings) back into the cash recycler machine.
The machine counts the cash in seconds, reconciles it with the journal and automated over/short reporting enables instant action to be taken and the general ledger to be automatically updated.
Once the machine has logged the cash and reconciled it, that cash is then available for use by other departments. The hotel specifies the amount to extract from the machine and deposit to the bank, either daily or every few days.
Cash recycling seems to reduce the costs and risk of hotel cash management, and improve labour productivity in almost every area: fewer cash courier journeys, more accurate reporting (direct API to finance and POS, and happier auditors!), hours saved (shorter cashier shifts, automated cash reconciliation, over/short management) elimination of manual due backs, better process (instant reporting of cashiers’ performance on a daily, weekly and monthly basis – with the ability to take action instantaneously).
If you want to find out more about Fourth’s Purchase-to-Pay and Inventory solution for hotels – get in touch!