Question

A106: Credit Limit is necessary because: SSM

a) Guest's must have enough Credit Limit with their bank in order to pay for their stay. If the bank does not issue then an appropriate credit amount they aren't able to pay for goods and services consumed. This could be exploited and make the company and owners lose money.
b) As a business it is important to run checks that will ensure that the guests can pay for goods and services consumed. Otherwise, we would fail in our commitment to the company and the owners.

Answer 1

A credit limit is necessary in the hospitality industry to ensure guests can pay for their stay and prevent loss of money for the company and owners.

Step-by-step explanation:

In the hospitality industry, providing guests with a credit limit is important for several reasons. Firstly, guests must have enough credit limit with their bank in order to pay for their stay. If the bank does not issue an appropriate credit amount, they won't be able to pay for the goods and services consumed. This could result in the company and owners losing money. Secondly, as a business, it is important to run checks that ensure guests can pay for the goods and services consumed. Without a credit limit, the commitment to the company and owners would be compromised.