Quick answer: The basis of charging room tariff is the rule a hotel uses to decide how long a guest may keep a room for one room charge. The common bases are the check-out time system (for example, noon), the 24 hour system, the night basis and day use. The basis is printed on the registration card and the tariff card, and it decides when an extra charge starts.
These revision notes cover BHA105 (Foundation Course in Rooms Division, NCHMCT B.Sc. HHA, Semester 1), Unit 2, which includes the basis of charging room tariff. They follow the syllabus topic and are written for IHM and hotel management students. They are not official NCHMCT study material, so read them with your institute's handouts. The National Council's programme pages are at nchm.gov.in.
Table of contents
- What is room tariff and why does the basis matter?
- Basis of charging room tariff: the four main systems
- Check-out time system
- 24 hour system
- Night basis (night rate)
- Day use rate: day use rooms in hotels
- Other charging terms you should know
- What the front desk should do
- Exam tips for BHA105 Unit 2
- Careers linked to room tariff and front desk work
- FAQ: basis of charging room tariff
What is room tariff and why does the basis matter?
Room tariff is the price a hotel quotes for the use of a guest room. It is the "rate" a guest sees on the tariff card, and it is the biggest line on most guest bills. A guest pays for a period of time, not for a bed forever. The basis of charging room tariff defines that period. Without a clear basis, the front desk would argue with guests at every departure.
Tariff is not the same as the total bill. Taxes, service charges and extras such as laundry or minibar items are added on top, and a package may bundle meals with the room. Only the room element follows the basis of charging.
Do not confuse the basis of charging with the types of room rates (rack, corporate, package). Those are separate categories and come in the next syllabus topic.
Basis of charging room tariff: the four main systems
The NCHMCT unit lists the check-out time system, the 24 hour system, the night basis and day use. Hotels can pick one system for all guests, or use different systems for different segments. A resort may use a noon check-out, while an airport hotel may use 24 hour billing.
| Basis | How the clock works | Best suited to |
|---|---|---|
| Check-out time (fixed hour) | Every guest leaves by one fixed time, such as 12:00 noon, no matter when they arrived | Most city and resort hotels |
| 24 hour system | The stay runs for 24 hours from the actual arrival time | Airport, transit and business hotels |
| Night basis | Room is charged only for the night, for example evening to early morning | Late arrivals, transit stops |
| Day use | Room is used for part of a day and is not slept in overnight | Layovers, meetings, rest before a late flight |
Exact timings and percentages differ from one hotel to another. The numbers in these notes are examples only; always quote the policy of your own hotel in practical work and use the syllabus wording in theory papers.
Check-out time system
In the check-out time system, the hotel sets a single hour at which all rooms must be vacated. Noon is a very common choice in India. A guest who arrives at 7 am and a guest who arrives at 9 pm both leave at noon, and each pays one night's tariff.
Advantages
- Housekeeping can plan the day, because most departures fall in the same window.
- It is simple to explain to the guest and easy to print on the tariff card.
- Front desk staff do not need to calculate individual departure times.
Disadvantages
- A guest who arrives very late pays a full night for a few hours of sleep, which can feel unfair.
- A very early arrival has no room ready, so the hotel may charge for early check-in or ask the guest to wait.
- Many departures at noon create a rush at the desk and in the lobby.
Late departure beyond the fixed hour usually attracts an extra charge, often as a part of the room tariff for a few hours and a full tariff after a set time. The front desk should state the policy when the guest registers. Learn how this is recorded in the guest cycle in the front office.
24 hour system
The 24 hour system, sometimes called the rolling or running 24 hour basis, gives the guest the room for exactly 24 hours from the time of check-in. A guest who checks in at 4 pm must leave by 4 pm the next day to pay a single night's tariff. A guest arriving at 2 am has the room until 2 am the following day.
This system is popular with airport hotels, transit hotels and business hotels where guests arrive at all hours. It feels fair, because the guest pays for the full time they can use the room.
The downside is spread-out workload. Housekeeping cannot clean most rooms in one block, and the room rack changes all the time. Smaller hotels often find that harder to manage.
Night basis (night rate)
Under the night basis, the room is sold for the night only. The guest checks in at or after an evening hour and checks out in the morning at a fixed time. The hotel may fix a starting hour, such as 6 pm, and an ending hour, such as 8 am or 9 am.
This is the most basic idea of a "night's stay". It is common for budget hotels and for guests who only need a place to sleep between connecting buses, trains or flights. A guest who wants to stay beyond the morning check-out would then be charged under the policy for extra hours or for a day.
Check the wording used in your own textbook. Some books use "night basis" for charging by the night rather than by the day, while others use "night rate" for a lower late-arrival price. Write the definition you were taught and give a short example, so the examiner sees the idea.
Day use rate: day use rooms in hotels
Day use means a guest uses the room for a few hours in the day and leaves before the evening, without sleeping the night. It is also known as a day room, a day rate or a use-by-the-hour booking in some markets. The hotel usually charges a fixed share of the full night tariff, sometimes 50 to 70 per cent, or a flat price per block of hours. These percentages are examples; hotels set their own.
Typical guests are travellers waiting for a late flight, business visitors needing a quiet room for meetings, and crew on a short layover.
Why hotels like day use
A room that would otherwise sit empty from 10 am to 6 pm earns revenue. The housekeeping team has to turn the room again for the evening arrival, so the hotel should confirm there is enough time and staff before agreeing to it. Day use is also a good extra revenue topic in the rooms division and is covered again when students study revenue management.
Other charging terms you should know
The syllabus wording also touches on terms that sit close to the basis of charging. These come up in practical life and in viva questions.
| Term | Meaning |
|---|---|
| Early check-in | Guest arrives before the standard check-in time and the room is ready; the hotel may add a charge or treat the previous night as occupied |
| Late check-out | Guest stays beyond the fixed check-out time; extra hours are charged as a share of the tariff or a full night after a set hour |
| Half-day charge | Part of the room tariff charged for a short extension, often until an evening time |
These terms matter because every extra hour or night changes the folio and the room status. The desk should post the correct charge before check-out, and the guest should be told in advance, never at the cashier's counter.
What the front desk should do
The basis of charging is a front office task as much as a policy. A trained agent follows these steps for every arrival:
- State the basis clearly at the time of reservation and again at check-in, for example "check-out time is 12 noon".
- Record arrival time, expected departure date and the tariff on the registration card or PMS.
- Print the policy on the tariff card, in the room, and on the booking confirmation.
- Note any special request such as an early check-in or a late check-out, and post the charge only after the guest agrees.
- Alert housekeeping and the room control desk when a room will be used on a day-use basis or released late.
- At check-out, compare the actual departure time with the policy and post any additional charge before the guest reaches the cashier.
If you plan a front office career, practise the polite wording for each step. Guests rarely mind a fair policy; they mind surprises. You can see how these skills are used in front office jobs in hotels: skills, shifts and how to land your first role.
Exam tips for BHA105 Unit 2
- Write the definition first: "Basis of charging room tariff is the rule that fixes the period for which a room tariff is valid."
- Use a small table of the four systems; it earns marks for clarity.
- Add one example for each: noon check-out, 4 pm to 4 pm, evening-to-morning night stay, a few hours of day use.
- Give one advantage and one disadvantage for the check-out time and 24 hour systems.
- Keep this topic separate from room rates and meal plans; those are the next topics.
Practice questions
- What is meant by the basis of charging room tariff? Explain any two systems. (5 marks)
- Compare the check-out time system and the 24 hour system. (5 marks)
- What is day use? Who books it and why do hotels offer it? (3 marks)
- List four situations where a late check-out charge may apply. (3 marks)
Careers linked to room tariff and front desk work
Every front office executive, reservation agent and night auditor handles tariff and charging rules daily. Students who explain the basis of charging clearly are better prepared for a first job and for interviews, where scenario questions about late check-out are common.
- Useful roles: guest service agent, reservation executive, front office associate, night auditor, front office supervisor.
- Typical pay ranges (indicative only): entry-level front desk roles in India often fall roughly between ₹15,000 and ₹30,000 a month, and Gulf hotels often add accommodation and meals; actual pay varies by city, brand and role, so check the live job post.
Browse current front office jobs while you revise, and create a free profile on Hospitality Vacancy so hotels in India, the Gulf and Europe can find you.
FAQ: basis of charging room tariff
What is the basis of charging room tariff?
It is the time rule a hotel uses to decide how long a guest may use a room for one room tariff. The usual systems are the check-out time system, the 24 hour system, the night basis and day use.
What is the difference between the 24 hour system and the check-out time system?
In the 24 hour system the guest has the room for 24 hours from the actual arrival time. In the check-out time system all guests leave by one fixed hour, such as noon, regardless of when they arrived.
What is a day use room in a hotel?
A day use room is a room sold for a few hours in the daytime without an overnight stay. Hotels normally charge a share of the full night tariff or a fixed price for a block of hours.
Which basis is most common in India?
Many hotels in India follow a fixed check-out time, often noon, while some airport and business hotels use the 24 hour system. Policies differ, so always check the hotel's tariff card.
Is a late check-out charge part of the basis of charging?
Yes. It is the extra amount a hotel adds when the guest stays past the fixed time, and it should be stated in advance and posted on the folio before departure.
Read next
- Types of Hotel Rooms Explained: A Front Office Guide
- SMART Rooms and Rooms for Differently Abled Guests: BHA105 Notes
- Front Office Interview Questions and Answers (30 Q&A)
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About the author: Sumit Manwal
Sumit Manwal is the founder of Hospitality Vacancy, the job site built for the hotel industry. He is passionate about helping hotel management students and hospitality professionals build successful careers, and connects talented people with hotel jobs across India, the Gulf and Europe. Through these notes he shares practical, easy-to-follow hospitality knowledge so every reader can learn, grow and get hired.