EP4 — Head Office & Property Policy: Controlling Override Risks
By Charles tan EP4 — Head Office & Property Policy: Controlling Override Risks Introduction In hotel groups, the greatest overbooking risk is uncontrolled head office overrides. Policy alignment is essential to protect both brand and property operations. Key Corporate Policies Real-Time Visibility RequirementHead office may sell only when live property inventory is visible.No visibility = […]
EP3 — Standard Operating Procedures for Room Inventory Control
By Charles Tan EP3 — Standard Operating Procedures for Room Inventory Control Introduction Even the best technology fails without structured operating discipline. SOPs ensure every department touches inventory in a controlled, predictable manner. Core SOP Framework Assign a Room Inventory Controller (RIC)Only one role has authority to: Open/close sales Adjust allocations Approve overrides PMS as […]
EP2 — Modern Technology Tools to Prevent Real-Time Overbooking
By Charles Tan Introduction In today’s hotel environment, technology is no longer the limitation.The limitation is how effectively it is used. Hotels that still experience overbooking today do so because systems are underutilized or inconsistently managed. Property Management System (PMS) The PMS must be the single source of truth. A professional PMS must: Update room […]
EP1 — Overbooking During Peak Season: The Silent Time Bomb in Hotel Groups
By Charles Tan Introduction Overbooking is the practice of selling more rooms than physically available.In controlled situations, limited overbooking can be part of revenue optimization to compensate for no-shows. However, during peak seasons, festivals, and long weekends, overbooking becomes a high-risk operational threat — particularly in hotel group environments. When unmanaged, it leads to guest […]
EP 6: Conclusions and Implementation Framework
By Charles Tan Building an Effective Prevention System Fraud prevention in hospitality transcends mere detection—it requires creating a fraud-resistant ecosystem with these core components: Technology & Automation Essential Systems: PMS (Property Management System) with real-time departmental integration POS Systems preventing easy retrospective modifications or duplicate billing Inventory Management with automatic stock movement tracking Biometric Time […]
EP 5: Support Department Vulnerabilities
By Charles Tan Purchasing & Engineering Controlling expenditure and critical maintenance, this department handles high-value contracts making it susceptible to large-scale fraud. Fake Quotations Common Schemes: Creating dummy companies for comparative quotes while ensuring favored supplier victory Using legitimate company names but forging quotes to appear more expensive than preferred suppliers Warning Signs: All three […]
EP 4: Operational Department Vulnerabilities
By Charles Tan EP 4: Operational Department Vulnerabilities Front Office The front desk serves as the primary revenue gateway for room sales, handling cash and credit card transactions while accessing sensitive guest information. Walk-in Fraud (Off-System Sales) Common Schemes: Accepting cash from walk-in guests without recording stays in the PMS Issuing handwritten or counterfeit receipts […]
EP 3: Food & Beverage Operations Risk
By Charles Tan Food & Beverage Department and Kitchen This department handles high-volume cash transactions, rapid inventory turnover, and extensive staffing—making it one of the most vulnerable areas for multiple fraud schemes. Bill Recycling Common Schemes: Retaining paid cash bills from previous guests, reusing them for new guests ordering identical items Collecting cash from new […]
EP 2: Front-of-House Vulnerabilities
By Charles Tan Sales & Catering Department This department represents the initial revenue touchpoint for events, banquets, and conferences. High transaction values and extensive negotiations create multiple exposure points for fraudulent activities. Deposit Manipulation Common Schemes: Accepting cash or transfers to personal accounts while issuing counterfeit or handwritten receipts Receiving deposits without immediate system entry, […]
EP 1: Introduction and Foundational Principles
By Charles Tan Foreword: Building a Shield Against Fraud in the Hospitality Industry In the intricate world of hotel operations, where thousands of transactions flow through daily channels, vulnerabilities are an ever-present reality. This series compiles fundamental fraud prevention strategies across departments, laying the groundwork for a robust internal control framework. We must acknowledge that […]