Tourism and Hospitality
Home > Tourism and Hospitality > Hospitality operations (240 hours) > Strand B Accommodation services > Additional units > Provide accommodation reception services > Provide accommodation reception services
Foreign Currency Calculation
The foreign currency display board in a hotel shows the value of one (1) unit of the foreign currency in Australian dollars (A$). It is a lower rate than that given by the banks to cover the hotel for currency fluctuations and bank charges. Management, accounts department or the Front Office Manager usually calculates the hotel rate.Calculate the Hotel Rate
In a small hotel often a foreign currency board is not available, however even a small property will receive requests for foreign currency exchange. When the Receptionist rings the bank to obtain the exchange rate the teller generally will issue a rate giving the value of the foreign currency for one (1) Australian dollar.To convert the bank rate to show the value of one (1) unit of foreign currency equivalent in Australian dollars we must complete the following calculation:
1 divided by the bank rate =
value of one (1) unit of foreign currency in A$
Deduct the hotel's commission to arrive
at the hotel exchange rate. E.g. the exchange rate for one unit of foreign
currency is A$ 1.37 and the hotel deducts five percent (5%)
commission:
1.37 x 0.95 = Hotel Rate (95
% of Bank Rate)
ExerciseSelect the following exchange rates from today's paper. Establish the exchange rate for one unit of the currencies in A$. Deduct 5 % of the converted rate to arrive at the hotel rate. All calculation must be to four (4) decimal points.
|
Currency |
Bank Rate |
Converted Rate |
Hotel Rate |
|
US $ |
|
|
|
|
Canadian $ |
|
|
|
|
Swiss francs (SFr) |
|
|
|
|
German Marks (DM) |
|
|
|
|
New Zealand $ |
|
|
|
|
£ Sterling |
|
|
|
|
Japanese ¥ |
|
|
|
|