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Revenue leakage is money your hotel earned but never received — or received but cannot account for. It is rarely one dramatic theft. It is a room sold for a few hours and never recorded, a debt nobody chased, a figure changed after the day was closed. Here are the most common leaks, and how to close each one.
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A short stay paid in cash, a room given to a friend of staff, a late checkout nobody charged for. If the room board lives on paper or in someone’s head, an occupied room and an empty one look the same in the books.
How to close it: Keep one live room board that every check-in must go through, and compare it with housekeeping’s list of rooms cleaned. In OTTO the front desk works from a shared live board, and the owner can open it from a phone at any hour.
Cash written down as a transfer, a transfer that never actually arrived, card payments spread across terminals nobody reconciles. The total looks right at the end of the day, but the money is not where the books say it is.
How to close it: Record every payment with its method and, for cards, the terminal it went through — then reconcile each method separately every night. OTTO tags every payment this way, so the cash-up shows cash, transfer and each POS terminal on its own line.
If a payment can be changed or removed, a day can be quietly rewritten after the money has gone.
How to close it: Never delete money records. A refund should be a new, negative entry — not an eraser. In OTTO payments are never deleted: a refund is recorded against the original payment, so the books always show what came in and what went back.
“I’ll pay when I check out.” “Put it on my tab.” Without a ledger, promises quietly become write-offs.
How to close it: Record every balance the moment it is created, and go through the list of who owes what every week. OTTO keeps every guest debt and outlet tab on record until it is paid, with the full history behind it.
A room let at a lower price for a friend, a discount given without a reason. Each one is small; together they add up.
How to close it: Let only management change room prices, and keep a record of every change. In OTTO every room edit — with any price change spelled out — is written to a staff activity log that cannot be edited or erased.
A drink handed over and paid for in cash, with no sale recorded. The takings look fine; the shelf is short.
How to close it: Count the shelf against the system at every handover. OTTO starts each till shift with a count and records any over or short against that shift and that name.
Soap, towels, detergent and food issued with no record of who took them.
How to close it: Record every issue with the name of the person who collected it. OTTO’s stock control does this, and keeps a history that corrections cannot erase.
When the whole front desk uses one password, nobody is responsible for anything.
How to close it: Give each person their own login, or at the very least record who is on duty. OTTO gives every staff member their own login, and on a shared front-desk login an on-duty picker attributes each payment to whoever is actually on shift.
None of this strictly needs software — it needs the records to exist, and to be honest. That is what OTTO is built for: every room, payment, debt and stock movement in one live system, with a history nobody can rewrite, and the whole hotel visible from the owner’s phone.
Money the hotel earned but never collected, or collected but cannot account for — unrecorded rooms, unpaid debts, sales never rung up, missing stock and unapproved discounts. It usually happens in small amounts, every day, which is why it is hard to see.
No software can honestly promise that, and you should be wary of any that does. What a system can do is make every gap visible and tie it to a shift and a name — which is what makes most leakage stop.
No. Guests pay you directly — cash, your own POS terminal, or a transfer to your own account. OTTO records what was paid and how; it never touches the money.
Yes. OTTO runs in the browser, so an owner can open the room board, the day’s takings and the debts from a phone, anywhere, while the front desk works.
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