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This document contains notes on computer applications for hospitality and tourism industry that would be very useful for hospitality and tourism students.
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CAHTI by George (2013) 1
COMPUTER APPLICATIONS IN HOSPITALITY AND TOURISM INDUSTRY
MANAGEMENT
DIPLOMA LEVEL ONE
MASENO UNIVERSITY
DEPARTMENT OF ECO-TOURISM HOTEL AND INSTITUTION
MANAGEMENT
By Sir Georges
CAHTI by George (2013) 2
CHAPTER ONE:
COMPUTING IN HOSPITALITY AND TOURISM INDUSTRY
Overview of Computing and the Industry
The hospitality and tourism industry has changed more than a little since the first
motel, in San Luis Obispo, California, was opened in 1925. Since then, the industry has
grown and the process of its growth has seen many challenges and complexities in
terms of operation. The past economic recession has caused businesses, individuals, and
families to cut back on their spending on travel, and fears of terrorism have made many
folks even less inclined to travel. The results have included lower industry revenues,
layoffs, and a tighter job market. Today, though, there are signs that people are starting
to travel more and that the industry is back on its feet again.
Despite these challenges and complexity of the industry, today many of its arms are
interconnected by technology. Computer systems now allow people to reserve airline
tickets, rental cars, hotel rooms, and tours-all at the same time. These computer systems
are called computer reservation systems (CRSs) or global distribution systems (GDSs).
Decision support systems, management information systems (MIS), property
management systems (PMS), etc. provide hotel managers with mechanism for
efficacious management of hotels. Computers have found use in various operational
and functional units of the hotel and other tourism organizations. These include front
office, marketing and sales, purchasing, F&B service, security surveillance, HRM etc.
Although many in the industry work in behind-the-scenes positions, those on the front
lines-travel agents, front desk clerks, tour guides, and so on-must be enthusiastic and
articulate. Almost in any position, you'll need to have a love of service and a strong
attention to detail. In the end, your job is about how satisfied you've made the
customer. So advances in computer technology in the industry today is all about
offering efficient and effective service to clients. However, the need for computer
applications cannot face-out the need for human touch in the industry given the nature
of the industry products.
Definition of Terms and Concepts
Computer: An electronic device for storing and processing data, typically in
binary form according to instructions given to it in a variable program
Hospitality: The Standard Industrial Classification (SIC) (1968) defined it as
'establishments (whether or not licensed for the sale of intoxicating liquors)
CAHTI by George (2013) 3
providing meals, light refreshments, drink or accommodation (.Jones, 1996).
Knowles(1996:2) further describes the hospitality industry as 'any combination of
the three core services of food, drink and accommodation...a blend of 'tangible
and intangible elements - and the service, atmosphere and image that surrounds
them.‗
Information: Data that is (1) accurate and timely, (2) specific and organized for a
purpose, (3) presented within a context that gives it meaning and relevance, and
(4) can lead to an increase in understanding and decrease in uncertainty.
Information communication technology (ICT): Any technology that enables
communication and electronic capturing, processing and transmission of
information (Ashrafi & Murtaza, 2008; Zelenka, 2009).
Information technology (IT): Collective term given to the most recent
developments in the mode (electronic) and the mechanisms computers and
communication technologies) used for the acquisition, processing analysis,
storage, retrieval, dissemination and application of information (Poon, 1993)
Systems: A set of connected things or parts working together as a whole
Technology: Machinery and devices developed from scientific knowledge
(Oxford English dictionary)
Tourism: According to UNWTO, tourism comprises the activities of persons
traveling to and staying in places outside their usual environment for not more
than one consecutive year for leisure, business and other purposes not related to
the exercise of an activity remunerated from within the place visited.
Impact of Computers in Hospitality and Tourism Industry
The contribution of computers in the hospitality and tourism industry is debatable.
However, it is evident that the advent of computers and the continuous development in
computing significantly impacts the operations of the hospitality and tourism industry.
The most valuable commodity for effectiveness and efficient operation in the hospitality
business is reliable up to date information. Computers provide benefits in information,
storage, manipulation and communication.
Students Assignment
There are several functional and operational units within a hospitality establishment
like a hotel. These include marketing, sales, purchasing and supply, reservation,
housekeeping, security and maintenance, F&B service, and conferencing. Discuss
with relevant examples how ICTs and computers have impacted these
functional/operational units.
CAHTI by George (2013) 4
Why do hotels adopt ICT?
According to Love and Irani (2004), ICT adoption and application provides many
benefits at different organization levels namely operational level, tactical level and
strategic level as shown in Table 1 below.
Table 1 Benefits of ICT adoption and application to organization
Operational Benefits Tactical Benefits Strategic Benefits Reduced paper work Reduced labour cost Reduced work Improved decision making Improved data
management Improved communication Improved ability to
exchange data Improved response time to
queries Improved control of cash
flow
Improved team work Improved service quality Improved planning times Improved response to
changes Improved efficiency &
effectiveness Reduced time to compile
tenders Improved ability to exchange
data Improved integration in
departments Promotes pro-active culture
Reduced marketing cost Improved market share Improved growth and
success Improved competitive
advantage Improved organizational
flexibility New technology
leadership Improved customer
relations Improved supplier
satisfaction Improved customer
satisfaction
Basic Computer System
The computer system includes not only the computer, but also any software and
peripheral devices that are necessary to make the computer function. Every computer
system, for example, requires an operating system. A computer system consist of five
basic features namely the Processor , Random access memory (RAM) , Operating
system , Graphics adapter and video RAM and the Monitor. When we talk of computer
system, we refer to either the notebook (i.e. lap tops, hand-held devices, PDAs)
,workstation and servers or the physical components in terms of the system box,
display, loudspeakers, input devices, cabling and other peripheral devices.
Types of Computer Systems
Notebooks: - For mobile computing needs such as browsing the net, keeping
track of life, picking up emails. Everything is (often) in one box e.g. lap top,
hand-held devices, PDAs etc.
CAHTI by George (2013) 5
Desktop (PCs): - For user / standard computing needs e.g. Word, excel, playing
games. Emphasis is placed on display, input, and one user.
Workstation: - For high powered computing needs e.g. 3D design /
development. More emphasis is placed on display and input just like the PCs.
Server: - For delivering the requirements of many users that share data e.g. Web
services like Google / Yahoo, Game servers, etc. Emphasis is in what is in the
system box.
Supercomputing Farms: - Many smaller computers pulled together to function as
one on the same task that requires the processing of huge amounts of data e.g.
SETI
Functions of a Computer System
There are four main equipment functions of a computer system: Input, Processing,
Storage and Output
a) Input: the transferring of information into a computer system - for our purposes
this will be accomplished when you, the programmer, type source code at the
keyboard or open a previously typed program.
b) Processing: This is the manipulation and control of information within the
computer system. Such manipulations are handled by the Control Unit, the
Arithmetic Logic Unit and Temporary Storage.
c) Storage: the means by which information can be "permanently" saved (until
such time as you wish to delete it). This usually occurs on a hard drive, a
diskette or a CD.
d) Output: the displaying of information - for our purposes this will be
accomplished when your program displays information on the monitor or
printed on paper.
Fig.1. Computer System Model
Permanent Disk/CD
STORAGE
Control Unit ALU
Temporary Storage RAM
Monitor
Printer
CD-ROM
Keyboard
Scanner
Diskette
CD-ROM
INPUT PROCESSING OUTPUT
CAHTI by George (2013) 6
Input/output Devices
In computing, input/output, or I/O, refers to the communication between an
information processing system (such as a computer), and the outside world – possibly a
human, or another information processing system. Inputs are the signals or data
received by the system, and outputs are the signals or data sent from it. The term can
also be used as part of an action; to "perform I/O" is to perform an input or output
operation. I/O devices are used by a person (or other system) to communicate with a
computer.
It should be noted that the designation of a device as either input or output depends on
the perspective. Mice and keyboards take as input physical movement that the human
user outputs and convert it into signals that a computer can understand. The output
from these devices is input for the computer.
Sometimes the output is an instant reaction to the input and good examples are where
special codes are employed by hotels nowadays in the slotted key cards to open doors
for guests. This helps in the beefing up of security system of the hotel. A sales
representative also uses an instrument that looks like a pen to enter an order on a
special pad especially in the food and beverage service. The handwritten characters are
displayed as "typed" text and are stored in the pad, which is actually a small computer.
Input and output may sometimes be separated by time or distance or both. A good
example of its application is the use of card time recorder to monitor tardiness of staffs
in the hospitality industry and this aids them in the time management system by the
human resource department.
The examples in this section show the diversity of computer applications, but in all
cases the process is the same: input-processing-output.
Keyboard: - A keyboard is usually part of a personal computer or part of a terminal that
is connected to a computer somewhere else. When any keys pressed it sends electronic
signal with unique identification to the computer operating system detects these
identifications with the help of map. Other than regular keys there are functions keys,
Ctrl key, Alt key, etc. Not all keyboards are traditional, however. A fast-food franchise
like McDonald's, for example, uses keyboards whose keys represent items such as large
fries or a Big Mac.
Mouse: - A mouse is an input device with a ball on its underside that is rolled on a flat
surface, usually the desk on which the computer sits. The rolling movement causes a
CAHTI by George (2013) 7
corresponding movement on the screen. You can communicate commands to the
computer by pressing a button on top of the mouse. This finds a wider use in the
hospitality industry for data input at the front office, stores, accounting, food and
beverage etc.
Trackball: - A variation on the mouse is the trackball. The trackball is like an upside-
down mouse-you roll the ball directly with your hand. The popularity of the trackball
surged with the advent of laptop computers, when traveling (business travellers
patronizing hotels in various destination) users find themselves without a flat surface
on which to roll the traditional mouse so the need for the trackball. This has really
encouraged tele-working by people in the hospitality industry.
Imaging:-Here, a scanner converts a drawing, a picture, or any document into
computer-recognizable form by shining a light on the image and sensing the intensity of
the reflection at each point of the image. This is particularly applied in the hospitality in
designing and printing menus by the food and beverage department.
Voice Input:-Speaking to a computer, known as voice input or speech recognition is
another form of source input. Speech recognition devices accept the spoken word
through a microphone and convert it into binary code that can be understood by the
computer. Such uses are employed in the hospitality and airline industry through
changing radio frequencies in airplane cockpits.
Touch Screens: - One way of getting input directly from the source is to have a human
simply point to a selection. The edges of the monitor of a touch screen emit horizontal
and vertical beams of light that crisscross the screen. When a finger touches the screen,
the interrupted light beams can pinpoint the location selected on the screen. Coffee
houses and some restaurants employ the use of touch screens in offering their services
especially in the Food and Beverage section where waiters make orders through touch
screens and also in the vending machines. Once the orders have been placed, it‘s
reflected in some screen in the kitchen and the chef responds to the orders from the
screen.
Looking: - This involves delivering input to a computer by simply looking at the
computer would seem to be the ultimate in capturing data at the source. The principles
are reminiscent of making a screen selection by touching the screen with the finger.
Electrodes attached to the skin around the eyes respond to movement of the eye
muscles, which produce tiny electric signals when they contract. The signals are read by
CAHTI by George (2013) 8
the computer system, which determines the location on the screen where the user is
looking.
Application of Input Devices in the Hospitality Industry
Input devices used in the foodservice area include:
a) Finger print biometric systems: Finger print biometric systems are also input
devices that allow for the tracking of employees hand washing and sanitization.
b) Magnetic strip readers: Magnetic strip readers that can read credit cards are input
devices when credit cards are swiped over.
c) Touch-screen electronic cash registers: Touch screen electronic cash registers and
point of sale devices become input devices when they are used to key in
purchase details.
d) Touch-screen point of sale devices: Touch screen point of sale devices become input
devices when they are used to key in purchase details.
e) Touch-screen devices: Touch screens become input devices when they are used to
make table reservations via the table seating software and when used at food and
beverage vending machines when keying in orders.
f) Card swipes that are used in vending machines and other automated machines: At
freestanding locations within the lobby, self-service food and beverage terminals
accept guest‘s credit cards for purchases of items through the card swipes that
act as input devices.
g) Remote order pads: Remote order pads are a form of point of sales systems that
handle transactions at the point of sale. They become input devices when they
are used to place orders at the kitchens. The food and beverage orders are
entered and routed automatically from the point of sale to the point of
production.
h) Digital timers on food production equipment: Digital timers on food production
equipment like the oven and microwave become input devices when the time
that a food or beverage item is keyed in and set for the equipment.
i) Personal digital assistants (PDAs): Personal digital assistants become input devices
when they are used to write food and beverage orders that are then transmitted
to the bar and kitchen computers.
j) Vending machines keyboards: These become input devices when they food and
beverages orders are keyed in at the keyboards stationed at the vending
machines or information kiosks, when purchase details are keyed into a
computerized electronic point of sales system and when guests use keyboards to
select tables when a computerized system is used (Connor and Piccoli, 2003).
CAHTI by George (2013) 9
k) Keyboards are common input devices when they are connected to a computer and
are used to key in details like purchase orders.
l) Point of sale: The point of sale may act as an input device when the point of sale is
online and charges are posted directly from the department to the electronic
folio. Being on-line, means that the point of sale interacts directly with the central
processing unit of the property management system. The property management
system might be a smart personal computer. In this instant the point of sale acts
as an input device.
Class discussion: How is technology applied in the following functional areas?
a) Security and Safety
Keycards
Smoke detectors
Finger print detectors
Temperature regulators
b) Rooms Division
Swipe cards
TV
Telephones/mobile phones
Central Processing Unit
The Central Processing Unit (CPU) or processor is the portion of a computer system that
carries out the instructions of a computer program, and is the primary element carrying
out the computer's functions. The computer CPU is responsible for handling all
instructions and calculation it receives from other hardware components in the
computer and software programs running on the computer.
The fundamental operation of most CPUs, regardless of the physical form they take, is
to execute a sequence of stored instructions called a program. There are four steps that
nearly all CPUs use in their operation: fetch, decode, execute, and write back.
Fetch: - Involves retrieving an instruction (which is represented by a number or
sequence of numbers) from program memory.
Decode: - The instruction fetched is broken up into parts that have significance to
other portions of the CPU.
Execute: - During this step, various portions of the CPU are connected so they
can perform the desired operation. If, for instance, an addition operation was
CAHTI by George (2013) 10
requested, an arithmetic logic unit (ALU) will be connected to a set of inputs and
a set of outputs.
Write back: - Simply "writes back" the results of the execute step to some form of
memory.
After the execution of the instruction and write back of the resulting data, the entire
process repeats, with the next instruction cycle normally fetching the next-in-sequence
instruction because of the incremented value in the program counter.
Output: Information for the User
Computer output takes the form of screen or printer output. Other forms of output
include voice, microfilm, and various forms of graphics output. A computer system
often is designed to produce several kinds of output.
Screens: - Cathode ray tube monitors that display text and graphics have been in
use for some time. Other types of screen technology include the liquid crystal
display (LCD) and light emitting diode (LED) the latter being the latest advent.
LCD and LED screens are used on laptop computers and desktop computers
with the use of TFT.
Terminals: - A screen may be the monitor of a self-contained personal computer,
or it may be part of a terminal that is one of many terminals attached to a large
computer. A terminal consists of an input device, an output device, and a
communications link to the main computer. Most commonly, a terminal has a
keyboard for an input device and a screen for an output device, although there
are many variations on this theme.
Printers: - A printer is a device that produces printed paper output, known in the
computer industry as hard copy because it is tangible and permanent (unlike soft
copy, which is displayed on a screen). Printers are used in the hospitality
industry to provide backup information in form of hard copy virtually in all
departments of a hotel.
Voice Output: - Computers are frequently like people in the sense that they find
it easier to talk than to listen. Speech synthesis is the process of enabling
machines to talk to people is much easier than speech recognition. Voice output
has become common in such places as airline and bus terminals, and hotels. It is
typically used when an inquiry is followed by a short reply (e.g. flight time, meal
time etc.).
CAHTI by George (2013) 11
Computer Graphics:- Business Graphics: - Colourful graphics, maps, and charts
are used by managers in the hospitality industry to compare data more easily,
spot trends, and make decisions more quickly. Also, the use of colour helps
people get the picture-literally. Although colour graphs and charts have been
used in business for years-usually to make presentations to higher management
or outside clients-the computer allows them to be rendered quickly, before
information becomes out-dated.
Video Graphics: - Video graphics have made their biggest splash on television, but
many people do not realize they are watching a computer at work.
Advertisements are being employed by hotels nowadays through the media
(TV).
Computer Data Storage
Computer data storage, often called storage or memory, refers to computer
components, devices, and recording media that retain digital data used for computing
for some interval of time. Computer data storage provides one of the core functions of
the modern computer, that of information retention. It is one of the fundamental
components of all modern computers, and coupled with a central processing unit (CPU,
a processor), implements the basic computer model.
In contemporary usage, memory usually refers to a form of semiconductor storage
known as random-access memory (RAM) and sometimes other forms of fast but
temporary storage. Similarly, storage today more commonly refers to mass storage -
optical discs, forms of magnetic storage like hard disk drives, and other types slower
than RAM, but of a more permanent nature.
Purpose of storage
A computer system usually contains several kinds of storage, each with an individual
purpose. Without a significant amount of memory, a computer would merely be able to
perform fixed operations and immediately output the result. This is acceptable for
devices such as desk calculators or simple digital signal processors. Various forms of
storage are divided according to their distance from the central processing unit.
Primary storage, presently known as memory, is the only one directly accessible to the
CPU. The CPU continuously reads instructions stored there and executes them as
required. Any data actively operated on is also stored there in uniform manner. Many
types of "ROM" are not literally read only, as updates are possible; however it is slow
CAHTI by George (2013) 12
and memory must be erased in large portions before it can be re-written. Some
embedded systems run programs directly from ROM (or similar), because such
programs are rarely changed. Standard computers do not store non-rudimentary
programs in ROM; rather use large capacities of secondary storage, which is non-
volatile as well, and not as costly.
Secondary storage in popular usage differs from primary storage in that it is not directly
accessible by the CPU. The computer usually uses its input/output channels to access
secondary storage and transfers the desired data using intermediate area in primary
storage. Secondary storage does not lose the data when the device is powered down i.e.
it is non-volatile. Per unit, it is typically also an order of magnitude less expensive than
primary storage. In modern computers, hard disk drives are usually used as secondary
storage. Some other examples of secondary storage technologies are: CD ROM, flash
memory (e.g. USB flash drives or keys), floppy disks, magnetic tape, paper tape,
punched cards, standalone RAM disks
Tertiary storage or tertiary memory provides a third level of storage. Typically it
involves a robotic mechanism which will mount (insert) and dismount removable mass
storage media into a Storage device according to the system's demands; this data is
often copied to secondary storage before use. It is primarily used for archival of rarely
accessed information. Typical examples include tape libraries and optical jukeboxes.
Off-line storage, also known as disconnected storage, is computer data storage on a
medium or a device that is not under the control of a processing unit. The medium is
recorded, usually in a secondary or tertiary storage device, and then physically
removed or disconnected. It must be inserted or connected by a human operator before
a computer can access it again. Unlike tertiary storage, it cannot be accessed without
human interaction. Off-line storage is used to transfer information, since the detached
medium can be easily physically transported. Additionally, in case a disaster, for
example a fire, destroys the original data, a medium in a remote location will be
probably unaffected, enabling disaster recovery. Optical discs and flash memory
devices are most popular, and to much lesser extent removable hard disk drives. In
enterprise uses, magnetic tape is predominant. Older examples are floppy disks, Zip
disks, or punched cards.
CAHTI by George (2013) 13
CHAPTER TWO
2. GENERIC COMPUTER APPLICATIONS IN HOSPITALITY AND TOURISM
INDUSTRY
2.1 Word Processors
A word processor is a program used to type documents. Documents can be saved, closed
and the opened again to continue working on them. They have various functions that
allow a person to revise text without retyping an entire document. As the text is entered
or after it has been retrieved, sections ranging from words and sentences to paragraphs
and pages can be moved, copied, deleted, altered, and added to while displayed.
As word processors have become more sophisticated, such functions as word counting,
spell checking, footnoting, and index generation have been added. In addition, a
document's format-type size, line spacing, margins, page length, and the like-usually
can be easily altered.
2.2.1 The Keyboard
The keyboard of a word processor is similar to that of a typewriter, but its capabilities
extend far beyond the typewriters. For example, you don't have to press the Return or
Enter key at the end of every line - in word processing, the line "wraps around" when it
reaches the margin you've set and allows you to continue typing without stopping, you
only press Enter (or Return) when you want to start a new paragraph or insert blank lines.
If you make a mistake while typing use backspace or delete to erase it.
2.2.2 Word Processing Programs
There are many commercial word processing programs including Open Office Writer
, Microsoft Word , Corel WordPerfect and others. Default programs vary
depending on the operating systems being used. Windows comes with WordPad to edit
and format documents and Notepad to edit text. Mac OS X comes with Text Edit or
SimpleText in previous version. Open Office is an Open Source office application that
can be downloaded for free at openoffice.org. Microsoft Word is the most widely used
CAHTI by George (2013) 14
computer word processing system. There are also many other commercial word
processing applications, such as WordPerfect, Abiword, KWord, LyX and OpenOffice.org
Writer other than those already mentioned. Online word processors such as Google Docs
are a relatively new category.
2.2.3 Functions of Word Processor
a) Text Editing: - Editing functions such as inserting, deleting, moving, and copying
characters, words, lines, and even blocks of text, typing over texts are fast and easy
with only a few keystrokes. The process of text editing involves:
Selecting the text you want to modify with the mouse or by holding down
Shift and using the arrow keys. Holding Control (CTRL) will select text one
word at a time.
Once you have the text selected use Cut (Ctrl-X) to cut the text off the page
and into a clipboard.
Use Copy (Ctrl-C) to transfer a copy of the selected text to the clipboard. Use
Paste (Ctrl-V) to paste the text into the document at the cursor. Note that the
Windows clipboard only holds a single selection of text which is replaced
with each new cut or copy.
If you make a mistake most modern programs have an Undo feature (Ctrl-
Z).
Many also have a Redo feature.
Use the space bar to place spaces between words.
Use backspace to erase to the left of the cursor and delete to erase to the
right of the cursor.
CAHTI by George (2013) 15
Use Enter (or Return) to move the cursor down a line.
The Insert key toggles between Insert and Type over. Sometimes an indicator
on the bottom of the screen will display the typing mode you are in.
Normally, any text after the cursor will be pushed across the screen
(inserted) as new characters are typed in. With Type over on the new
character will just replace the old character at the cursor.
b) Word Wrap and Text Alignment: - Words that extend beyond the right margin
are wrapped around to the next line. Text can be centred between left and right
margins. It can also be aligned to the left, right or justified by clicking at the text
alignment icons on the formatting tool bar.
c) Search and Replace; Move and Copy: - Any occurrence of text can be replaced
with another block of text. You can mark a block of text and move it elsewhere in
the document or copy it throughout the document.
d) Layout Settings: - Margins, tabs, line spacing, indents, font changes, underlining,
boldface and italics can be set and reset anywhere within the document.
Text layout can be changed using the various available font styles, shapes
and sizes. A font is the shape and size of a character of text. The most
commonly used font style, shape and size is Times New Roman 12.
Text can also be indented and tab settings added which modify where the
text is placed on the page. Rather than press the space bar more than once
set tabs where you want the cursor to move to.
Word processors allow you to type text in Bold, Italics or Underline. This is
useful when highlighting some word or line in a document. To activate
Bold, Italics or Underline:
o Click the icon button on the Toolbar
o Type the text that you wish to have highlighted
o Press toolbar icon again when you are finished. Note that the
indicator on the Toolbar will appear highlighted as long as the
highlight style is on.
One can as well italicize, underline or apply text bold on existing texts by following the
following process:
o Highlight text
o Click the icon on the toolbar
CAHTI by George (2013) 16
The page can be modified by changing the margins.
e) Headers, Footers and Page Numbering: - Headers and footers are common text
printed on the top and bottom of every page. Headers, footers and page
numbering can be set and reset anywhere within the document. Page numbering
in optional Roman numerals or alphabetic letters is common.
f) Style Sheets: - After designing a document, its format can be used again. Layout
codes (margins, tabs, fonts, etc.) can be stored in a style sheet file and applied to a
new document.
g) Mail Merge: - Creates customized letters from a form letter and a list of names
and addresses. The list can be created as a document or can be imported from
popular database formats.
h) Math and Sorting: - Columns of numbers can be summed and simple arithmetic
expressions can be computed. Lines of text can be reordered into ascending (A-Z)
or descending (Z-A) sequence.
i) Preview, Print and Group Print: - A document can be previewed before it is
printed to show any layout change that may not normally show on screen (page
breaks, headers, footers, etc.). Documents can be printed individually or as a
group with page numbers consecutively numbered from the first to the last
document.
j) Footnotes and Endnotes: - Footnote entries can be made at any place in the
document, and the footnotes printed at the end of a page or document.
k) Spelling Checker and Thesaurus: - Spelling can be checked for an individual
word, marked block of text or an entire document. When words are in doubt,
possible corrections are suggested. Advanced systems can correct the
misspellings automatically the next time. A thesaurus displays synonyms for the
word at the current cursor location. Although most word processors will check
your spelling and many have thesauruses and will check your grammar, don't rely
on the editing tools to replace a good proof reading.
CAHTI by George (2013) 17
l) File Management: - Documents can be copied, renamed and deleted, and
directories, or folders, can be created and deleted from within the program.
Advanced systems set up a purge list of names or glimpses of document contents
in order to allow a user to easily rid the disk of unwanted files.
2.2.4 Word Processing in Hospitality and Tourism Industry
Within the hospitality business and the organization world, word processors are
extremely useful tools and typical uses include:
legal copies
letters and letterhead
memos
reference documents
preparing reports
Exercises
Exercise One: Opening New Word Document
o Click on start button
o Click programs
o Click the installed generic program e.g. Microsoft Office
o From the drop down menu select the word processor e.g. Microsoft word
Exercise Two: Text Editing
Once you have opened a new word document, type in the following text:
Date: 20th February, 2012 (20/02/2012)
Maseno University
Faculty of Science
Department of Eco-tourism Hotel and Institution Management
Private Bag, MASENO-40105
Email: [email protected]
Ref: The Impact of Computers in Hospitality and Tourism Industry
Internet: The biggest change in the travel industry in recent years has been the rise of the Internet. It used to be that
you had to speak with your travel agent, or call hotels and airlines directly, to make your travel plans.
CAHTI by George (2013) 18
Niche Markets: As in many other industries, the big players in the hospitality and tourism industry have become
vastly more efficient due to technology and management advances in recent years. These days, smaller players just
can't compete on price.
Data: Specific data about the business financial operation and forecasting of the business, production of routine text
and graphic based materials such as menu‘s, nutritional analogy and rota‘s have been made possible through the use
of computers.
Bolden and underline the REF section. Change its font to Bodoni MT Black. Align it to the centre.
Bullet (using (a), b), C) etc.), Bolden and italicize the words ―The Internet‖, ―Niche Markets‖ and ―Data‖
Change the language of the text to English Australia or US or UK
Exercise three: Printing word documents
To print a document, click on the file menu on the toolbar and select print or CTRL+P.
Select printer i.e. Document writer or an installed printer (ink jet or laser jet) etc.
Set printing options: paper orientation (i.e. portrait or landscape), paper size (i.e. letter, A4, A5, B3 etc.),
print range (all pages or customised pages), page per sheet, margins etc.
2.2 Spread Sheet
A spread sheet is a computer application that simulates a paper worksheet. It displays
multiple cells that together make up a grid consisting of rows and columns, each cell
containing either alphanumeric text or numeric values. Spread sheets are frequently
used for financial information within the hospitality and tourism industry because of
their ability to re-calculate the entire sheet automatically after a change to a single cell is
made.
VisiCalc is usually considered the first electronic spread sheet (although this has been
challenged). Lotus 1-2-3 was the leading spread sheet when DOS was the dominant
operating system. Excel is now considered to have the largest market share on the
Windows and Macintosh platforms. Other spread sheet in use includes Apple
Numbers, Open Office.org Calc, Gnumeric, Web based spread sheet etc.
2.2.1 Features of Spread Sheet
Spread sheets can function as basic databases. By inserting data and number in different
columns, the results can be sorted, searched or filtered. There are mathematical and
trigonometric functions as well. A user can create a simplified mailing list in a spread
sheet by entering names and addresses in individual columns. There are even word
processing features offering control over fonts, bold or italic typeface, size, colour and
page formatting.
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2.2.2 Parts of Spread sheet
Row: The horizontal strips of the spread sheet are called rows. They are identified by
number at the far left hand side of the spread sheet. This is called the row header.
Columns: The vertical strips of the spread sheet are columns. They are identified by
letters across the top of the spread sheet. This is called the column header.
You can select an entire column by clicking on the letter at the top of the column-- or
select an entire row by clicking on the number at the left of the row.
Cell: A "cell" can be thought of as a box for holding a datum. A single cell is usually
referenced by its column and row. Its physical size can usually be tailored for its content
by dragging its height or width at box intersections (or for entire columns or rows by
dragging the column or rows headers).
We enter information into cells-- which are different from a word processor. For
example, when you center text, it is centered in its cell, not across the page. You select a
cell by clicking on it.
A rectangular group of cells is referred to as a range. You can select a range by holding
your (left) mouse button down while moving across the range, or by clicking in the top-
left corner, holding down the shift-key and clicking in the bottom-right corner of the
range. Notice that the first cell in the range isn‘t highlighted-- a source of endless
confusion! A range is referred to by the top-left and bottom-right cells, with a colon in
between—For B3:D7
You can type a number of things into a cell:
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Labels are words, phone numbers, etc...
Numbers are (duh!) numerical data (note that phone numbers aren‘t numbers)
Formulas perform calculations on numbers-- when you‘re done typing a formula,
it only shows the answer... to see the formula that you typed, look in the formula
bar above the spreadsheet: Note that all formulas start with an equal sign (that‘s
how the spreadsheet knows it‘s a formula!):
An array of cells is called a "sheet" or "worksheet". In most implementations, many
worksheets may be located within a single spread sheet. A worksheet is simply a subset
of the spread sheet divided for the sake of clarity.
Many worksheets is called book.
2.2.3 Applications of Spread sheet
Spread sheets can do more than perform simple arithmetic calculations
a) Functions: - Spread sheets feature columns and rows to keep inserted information
legible and simple to understand. You can use spread sheets to enter data,
calculate equations and create charts and graphs. This is applied in the
hospitality industry in presentation of certain reports by various departments.
A function is a formula built-into the spreadsheet... functions are applied to
whatever is inside the parentheses. Typical spreadsheets have 50-200 built-in
functions, for business purposes (mortgage calculations, for example), statistical
analysis, and other specialized purposes. Two are most often used by ‗everyday‘
people:
=Sum to add all the numbers in a range: =sum(A5:D15)
=Avg to get the average of all the numbers in a range: =avg(A5:D15)
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b) Computations: - A spread sheet program can be made to compute a variety of
mathematical functions, beginning with addition, subtraction, multiplication and
division. You can create relational functions such as greater than, equal than and
less than. This is mostly applied at the Accounts department.
Arithmetic with spread sheets:
Addition: =15 + 30 =B3 + D7
Subtraction: = 30-15 =B3 - D7
Multiplication: = 30 * 15 =B3 * D7
Division: = 30/15 =B3/D7
Exponent: = 30^2 =B3^2
Square Root: =sqrt(16) =sqrt(B3)
You can mix numbers and cell addresses: =B7 + 3 for example.
And you can combine different arithmetic operations, using parentheses as
needed: =B7 * (A3+A18 - 47)
By nesting parentheses, you can make very complex arithmetic sentences-- but
most of us won't ever need to do this!
c) Statistical Analysis: - Excel can calculate sums, variances and averages of a range
of numbers. Creating and analysing statistical values, such as standard error of
the mean and percentile ranks, and variables are additional available functions.
A spread sheet can translate complicated data and reports into a combination of
numbers and graphs. It is applied by the marketing department when
conducting research pertaining to certain products in the hospitality industry.
d) Formatting: The spread sheet software allows cells, rows and columns to expand,
merge, be inserted and deleted. This helps when you are using lengthy text and
equations. Spread sheet software also features some of the functions found in
word-processing applications, allowing you to format row and column headlines
by underlining and changing styles to italic, bold and other text attributes. You
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can edit font size and colour of the data and centre or align the information in the
cells.
Examples of Spread Sheet Data
Hotel Bed Occupancy by zone.xls
Hotel Bednights Occupied by Zone.xls
Hotel bednights Occupied by Country of Residence.xls
Hotel Bed-Nights Occupancy by Country of Residence.xls
Visitor Arrivals,Parks Stats.xls
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2.3 Database
A database is an integrated collection of logically related records or files consolidated
into a common pool that provides data for one or multiple uses. You can use databases
to store information in an organized way. The information could be on customers, sales,
staff, finances, facilities etc.
2.3.1 Historical development of Databases
As the term ‗computer‘ implies, originally most administrative uses of computers were
to process figures rather than text. These were usually activities involving high volumes
of numerical calculations, where the workflow was highly predictable and routine.
Typical examples include payroll, accounts administration or personnel data. These
database applications were primarily organisation-wide transaction processing systems.
The limitations of file processing prevented the easy integration of data. Database
technology held the promise of solving these problems so large organisations began to
develop organisational databases. Companies centralised their operational data, such as
purchase orders, inventory and accounting data in these databases.
Databases were originally developed using mainframe computers but are now common on
personal computers and in networked environments.
The following are examples of database applications that find their use in the
hospitality and tourism industry:
automated teller machines
flight reservation systems
computerized inventory systems
Hospitality Reservation Systems
Customer Relationship Management
2.3.2 Database Application Components
The applications used to access database include:
a) Data Entry Forms: - This provides a primary means to enter data into a database
and to edit existing data. It can also be used to query. It allows data to be
typically arranged in groups of related data items. A data entry form would have
fields that correspond to each of the database columns. For example, a Customer
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data entry form would have fields for: Customer ID, Name, Street, City, State,
Zip
b) Queries: - Common Queries to the database can be formed by the database
designers. Queries can also be saved for specific purposes. User supplies criteria
for the query and executes the query against the tables in the database.
c) Reports: - Primarily used to convey large portions of data in the database. Output
can be specially formatted for a variety of purposes such as printing mailing
labels.
d) Applications Code: - Applications code is used to enforce business rules.
e) Menus: - Menus tie applications together. It also provides a convenient way for
users to access forms, reports and queries.
2.3.3 Concept of Databases
Data field: A space allocated for a particular item of information. In a database, fields
are the smallest units of information you can access. A data field contains a single piece
of information (first name, family name, ministry, employee number, salary and so on).
A collection of data fields comprise a record such as, in this example, an employee
record.
Database record: A complete set of information in a database; records are composed of
fields, each of which contains one item of information. A collection of records (in this
case, employee records) comprises a database.
Data structure: A scheme for organising related pieces of information. The basic types
of structures include: files, lists, arrays, records, trees, tables. Each of these basic
structures has many variations and allows different operations to be performed on the
data. Structured databases typically store data that describes a collection of similar
entities. ‗Salaries and benefits‘ is an example of an entity; ‗education/training‘ is
another entity. An employee database stores data about the employees in an
organisation. A medical database stores data for a collection of patients. An inventory
database stores data for a collection of items stocked in a warehouse.
Menu: A collection of onscreen choices given to the user to help him or her interact with
a computer system. Database menus are similar to those used in most software. They
are typically arranged as a hierarchy so that after the user makes a choice at the first
level of the menu, a second series of choices appears.
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Keyword search engine: A program that allows a user to search a database by an index
entry that identifies a specific record or document. Keyword searching permits access to
databases through the use of keywords. Keyword search engines are especially popular
for searching the many documents stored in a free form database such as the World
Wide Web. To use a keyword search engine, the user types in a word and the search
engine locates areas in the database where the word or related information can be
found.
Query language: A set of command words that can be used to direct a computer to
create databases, locate information, sort records and change the data in those records.
When information in a database needs to be accessed quickly, it is usually stored as a
structured database. However, the structure in structured databases can cause a
problem for users who might not know the format for the records in a database. One
way to help users search structured databases is by providing a ‗query by example‘ user
interface based on the use of a query language.
One query language is called SQL (structured query language). The use of query
language is based on knowledge of the command word and the grammar or syntax that
will let one construct valid query sentences.
2.3.4 Database Models
a) Hierarchical databases exhibit a branching structure, with information arranged
into sets and sub-sets; getting to a particular piece of data may require going
through several vertically ordered files. An example is the process involved in
finding a distant cousin on a family tree.
b) Network databases offer many more direct connections between files, but,
similar to hierarchies, the links are predefined and are difficult to change or
adjust.
c) Object-oriented databases link self-contained entities (or objects) together.
Objects can be text, a picture, a piece of film or any item that can be individually
selected and manipulated. This kind of database is particularly useful for
organising large amounts of disparate information, but they are not designed for
structured numerical analysis.
d) Relational database: A database that spreads information across different tables
while maintaining links between them. A relational database stores facts in tables
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called relations. The only requirement is that the information must be capable of
being laid out in rows and columns (similar to a list of names, addresses and
phone numbers). This database was developed as a result of the limitations from
the other database models.
Relational databases not only accommodate multiple views but allow new links
to be forged as needs arise. Relational databases are powerful because they
require few assumptions about how data is related or how it will be extracted
from the database. As a result, the same database can be viewed in many
different ways.
The personnel office keeps records of the department, rank, names, and social
identity numbers of the teaching staff, and so on. The following figure shows
examples of relational tables.
A relational database stores information across different tables and connects
them with links in the computer.
Table: Personnel Office Database
PF No Last name First Name Department ID No Rank/Post
4567 McDowell Tina F&B 2053021 F&B Manager
4568 Smith Steven FO 3171386 FO Manager
4570 Morgan George F&B 7016639 Restaurant Manager
4571 Gomez David House Keeping 4344891 Executive Housekeeper
4572 Heinz Judith F&B 8200461 F&B Controller
4575 Deal Sue FO 0010534 Reservationist
4576 Frear Robert Sales &Market 0355703 S&M Manager
4578 Conrad Mark Purchasing 9105977 Purchasing Officer
4580 Whitney Pam Maintenance 9470825 Chief Maintenance Officer
2.3.5 Types of Database
a) Operational database: - These databases store detailed data needed to support
the operations of the entire organization. They are also called subject-area
databases (SADB), transaction databases, and production databases. These are all
examples:
Customer databases
Personal databases
Inventory databases
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Sales database
b) Analytical database: - These databases store data and information extracted
from selected operational and external databases. They consist of summarized
data and information most needed by an organization's management and other
end-users. It‘s sometimes referred to as multidimensional databases,
management databases, or information databases.
c) Data warehouse: - A data warehouse stores data from current and previous
years - data extracted from the various operational databases of an organization.
It becomes the central source of data that has been screened, edited, standardized
and integrated so that it can be used by managers and other end-user
professionals throughout an organization
d) Distributed database: - These are databases of local work-groups and
departments at regional offices, branch offices, manufacturing plants and other
work sites. These databases can include segments of both common operational
and common user databases, as well as data generated and used only at a user‘s
own site.
e) End-user database: These databases consist of a variety of data files developed
by end-users at their workstations. Examples of these are collections of
documents in spread sheets, word processing and even downloaded files.
f) External database: These databases provide access to external, privately-owned
data online - available for a fee to end-users and organizations from commercial
services. Access to a wealth of information from external database is available for
a fee from commercial online services and with or without charge from many
sources in the Internet.
2.3.6 Database Management System
A database management system (DBMS) consists of software that organizes the storage
of data. Database management software is used to create and manipulate databases.
Data access software is usually used to search databases. The data access software
understands the structure and details of the database which means the user simply has
to enter his or her search specifications, using either a menu, a keyword search engine, a
query language or a natural language (among others).
A DBMS controls the creation, maintenance, and use of the database storage structures
of organizations and of their end users. It allows organizations to place control of
organization-wide database development in the hands of Database Administrators
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(DBAs) and other specialists. In large systems, a DBMS allows users and other software
to store and retrieve data in a structured way.
There are many different types of DBMSs, ranging from small systems that run on
personal computers to huge systems that run on mainframes. Database management
systems are categorized according to the database model that they support, such as the
network, relational or object model. The model tends to determine the query languages
that are available to access the database.
One commonly used query language for the relational database is SQL, although SQL
syntax and function can vary from one DBMS to another. A common query language
for the object database is OQL, although not all vendors of object databases implement
this.
2.4 Presentation Tools
Presentation packages and graphics are computer programs that enable users to create
highly stylised images for slide presentations and reports. They can also be used to
produce various types of charts and graphs. Many software applications include
graphics components including: paint programs, desktop publishing applications and
so on.
Communications applications typically include software to enable people to send faxes
and emails and dial into other computers.
2.5 Desktop Publishing
Desktop publishing (dtp) uses both word processing and graphics to produce
publications and presentations. Some common dtp programs are MS Publisher and
Quark Express. Both Adobe (adobe page maker) and Corel have a number of programs
that work like dtp programs. OpenOffice.org Draw is an OpenSource free option.
Desktop publishing programs layout their documents in a series of slides that can
contain text, graphics and dynamic content. Content is added to each slide in a series
which can be printed or saved as a slide presentation. Sound and music can also be
added to the presentation.
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Desktop publishing has found use in the hospitality and tourism industry in preparing
the following:
a) Menu: To communicate list and prices of food items on offer to guests as well
as act as a merchandising tool depending on how it has been designed.
b) Catalogs: To show prices of particular items and services on offer within
tourism and hospitality business
c) Brochures: To give information pertaining hospitality facility to guests
d) Tent Cards: To market a special dish to clients in the restaurant
e) Business cards: For networking and maintaining business contacts for
business and referrals
f) Banners: Can be prepared to advertise functions within a hotel facility
g) Labels: Food labels can be prepared and used in the buffet service layout to
identify dishes on the buffet
h) Name Tags: For identification purpose. Used to identify personnel within
hospitality facility or in conference proceedings and events.
i) Programs: Used to prepare programs for events organized within hospitality
facility such as food festivals, conventions, conference, seminars etc.
j) Flyers: Used for creating awareness about availability of certain products or
services
k) Invitation Cards: Used to invite guests or individuals to special events within
the hospitality industry
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CHAPTER THREE
3.0 TECHNOLOGY SYSTEMS IN HOSPITALITY AND TOURISM INDUSTRY
There are so many applications and technologies developed as a result of integrating
the generic applications to suit the needs of an establishment and help it achieve its
objectives. In the hospitality and tourism industry, such technologies include property
management systems (PMS), computer reservation systems (CRS), global distribution
systems (GDS), management information systems (MIS), point of sale systems (POS),
etc.
Some of the software which have aided the development and also of benefit to the
hospitality industry are:
a) Electronic point of sale (EPOS): The electronic point of sale system is used in
recording the details of transaction.
b) Computer reservation system (CRS): CRS are used to reserve rooms, restaurant
seats, airline seats etc. by the client either online or by the reservationist at the
hospitality facility.
c) Event management system: These are packages targeted at the hotels and
conferences centre designed to deal with all element of taking booking and
managing events such as conferences, meeting, expositions, conventions
weddings, banquets, seminars, workshops etc.
d) Food and beverage management system: Food and beverage management system
takes the concept of stock control one stage further. They add a control frame
work when correctly implemented, gives greatly improved level of management
control.
e) Menu engineering: This technique utilizes the computer modelling of data which
holds data about sales volume, cost and profit of each dish on the menu. This is
achieved by creating a menu offering the optimum balance between popularity
and maximum profit.
f) Dietary analysis: Information and communication technology used to
systematically analyse the nutritional content of the menu. Many people are
conscious of what they eat, customers requires more dietary information which
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gives details of composition of individual food or complete dishes at the touch of
a button.
g) Global distribution system (GDS): reservation channel used by travel agents to
book hotel rooms, restaurant seats, meals, airline seats, train, cruise etc. for
clients.
3.1 Property Management Systems (PMS)
In the hospitality industry, a property management system is a computerized system
used to manage guest bookings, online reservations, point of sale, telephone and other
amenities. Hotel property management systems may interface with central reservation
systems and revenue or yield management systems, front office, back office and point of
sale systems.
There are many different types of property management systems available (e.g. Oracle,
Opera, etc.), but a user/business will want to work with the different companies to
determine which property management system best fits their needs.
3.1.2 PMS Functions
As an umbrella system in the hospitality and tourism industry, PMS may be interfaced
and integrated with other systems to perform the following functions:
a) Reservation: The reservationist can make reservation via the PMS and CRS
interface or reservation module at the front office. The reservation module will
have the options for rooms or product availability/forecasting, access to
reservation records and reservation confirmations.
b) Rooms’ management: It is possible to manage rooms by the housekeeping and
front office department through PMS. When interfaced with rooms management
module, room status for all the rooms in the establishment can be obtained or
viewed easily, registration of guests and room assignment is fast with highest
level of efficiency.
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c) Guest accounting: PMS makes guest accounting process to be faster, effective and
efficient through the Guest Accounting Module. The guest accounting module in
the PMS allows for folio management, credit monitoring and transaction tracking
3.1.3 Common PMS Interfaces
Other functions that PMS can achieve are associated with the following PMS interfaces:
Central reservation system (CRS)
Internet
Sales and catering
Point-of-sale
Electronic payment processing
Revenue management
Back office accounting
Call accounting
Electronic locking systems
Energy management
Auxiliary guest service devices
Self-service devices
3.1.4 Impacts of PMS in Hospitality Industry
a) Ease of work load: It has maximized the efficiency of staff and guest services, and
increase management's control of all aspects of the front office operations. A
centralized view of guest behaviour and reservation performance gives the
necessary insight to quickly adapt future business strategies.
b) Yield Management Dynamic Rate Tiers: This yield management tool automatically
increases room rates based on current availability. When availability is high, the
system will automatically provide the lower rate; when your availability is low,
the system will automatically provide the higher rate.
c) Streamlined Reservations: Reservations are being entered quickly and easily from
Repeat Guest History, existing guests and reservations, condominium accounts,
prospects, and wait lists, minimizing redundant data entry.
d) Comprehensive Reservations Screen: From one single database you can access
inventory and availability for all properties within your brand and make instant
reservations for sister properties: cross-selling brings additional revenue by
CAHTI by George (2013) 33
keeping that guest within your group. One is also able to Store and access all of
your data in one central location.
e) Automatic Rate Selection: There are pre-defined room rates based on management-
created codes for groups, corporate rates, market segments, package plans, and
or standard room rates, preventing reservationists from selecting an incorrect
rate during the reservation process.
f) Web reservations Subsystem Interface: This allows customers to easily access real-
time availability at a given property and to book a reservation from an existing
website directly to the hotels Front Office System.
g) Cashier reconciliation: Provision of an audit trail of transactions at the end of each
cashier's shift for cashier balancing.
h) Special requests: The software tracks and reports guest special requests, and alerts
the staff about late sleepers, extra towel requirements, in-room pets, and
whatever user-defined requests the hotel wish to track.
i) Inquiry searches and printing: When a guest asks for specific information, the
concierge or bell stand may search the System for the attraction, retrieve details,
and print the information to hand to the guest.
j) Housekeeping Features: Housekeepers can change a room's housekeeping status
using the phone extension. Once the room is clean, the housekeeper simply
picks up the room phone and punches in a code that will immediately change the
room's Housekeeping Status in the Front Office System. The code may be that
the room is now clean, dirty, or needs inspection, depending on policies.
k) Shared guest control: The system handles unlimited shared guests per reservation,
splitting rates throughout the stay even if shared guests arrive and depart on
different dates. Shared reservations may split the folio equally or route
transactions to separate folios as desired.
3.2 Computer Reservation System (CRS)
Computerised networks and electronic distribution systems (EDS) in tourism emerged
in the early 1970s, through internal CRSs in the airline industry. They became central to
the distribution mix and strategy of airlines. CRSs are widely regarded as the critical
initiators of the electronic age, as they formulated a new travel marketing and
distribution system.
CAHTI by George (2013) 34
3.2.1 Types of Reservation Systems
There are four principle types of reservation system systems used in the hospitality and
tourism industry which has given the industry a face lift.
a) Single property based system- this system deals with the recording of
accommodation sales for a single property.
b) Central reservation system- this kind of system deals with hotels affiliated to one
group. This provides a single point of contact for prospective guest and ensures
that sales are maximized.
c) Global distribution system(G.D.S) this type of reservation is based on airline this in
turn are linked to the central reservation systems and travel agent and thus allow
direct selling and reservation to take place.
d) World Wide Web- currently they are number of agencies offering the hospitality
industry the opportunity to market hotels in the World Wide Web. This system
also offers the opportunity to make direct reservation of hotel accommodation.
The benefit of this approach is that is available to anyone having access to the
internet everything about reservation is being simplified.
3.2.3 Importance of CRSs
a) A CRS is essentially a database which manages the inventory of a tourism
enterprise, whilst it distributes it electronically to remote sales offices and
external partners. Intermediaries and consumers can access the inventory and
they can make and confirm reservations.
b) CRSs enable principals to control, promote and sell their products globally, while
facilitating their yield management. In addition, they integrate the entire range of
business functions, and thus can contribute to principals‘ profitability and long
term prosperity.
c) CRSs often charge competitive commission rates in comparison with other
distribution options, whilst enabling flexible pricing and capacity alterations in
order to adjust supply to demand fluctuations.
d) CRSs also reduce communication costs, while providing intelligence information
on demand patterns or the position of partners and competitors.
Hence, CRSs contribute enormously to both the operational and strategic management
of the industry.
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3.2.4 Practical Exercise with iMagic Hotel Reservation System
3.3 Global Distribution Systems (GDSs)
Global Distribution System (GDS) is Worldwide computerized reservation network
used as a single point of access for reserving airline seats, hotel rooms, rental cars, and
other travel related items by travel agents, online reservation sites, and large
corporations. GDS is also called automated reservation system (ARS) or computerized
reservation system (CRS).
The GDS or Global Distribution System is a means of electronic booking airlines seats,
car hire hotel rooms and ship cruises only by Travel Professionals (mostly agents). IDS
or Internet Distribution System on the other hand is a means of booking the above
services by channelling potential end user bookers (self-bookers) via the existing GDS
or directly through the internet system. These two (GDS & IDS) forms part of the
Electronic Distribution System (EDS). Other EDS include e-commerce and call centres
(with Call Center Reservation and Support Services) for hotels without PMS.
3.3.1 Historical Development of GDS
Initially, airlines used to operate their own CRS because passengers were relatively few.
As demand for air travel increased and schedules grew more complex, this process
became impractical. GDS technology has been utilized since the 1940s and has been
enhanced and perfected over the decades. The first Global Distribution System called
the experimental electromechanical Reservisor was introduced by American Airlines in
1946. The development and perfection of GDS continued and it was not until mid-1980s,
that concrete GDSs that could be utilized by almost every airline with bigger
geographical coverage came up. Range of tourism products such as accommodation, car
rentals, train and ferry ticketing, entertainment and other provisions were incorporated.
Global Distribution System technology today is commonly utilized by airlines, travel
agencies and travel-booking websites. The System technology is also employed by
several passenger train companies and hotel chains so clients can make multiple
bookings for various tickets and locations.
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3.3.2 GDS Performance
A Global Distribution System holds all pertinent data relating to travel information. It
stores a client‘s name, ticket details, fare tariffs, and a schedule of flights. This
information is entered into a company's system and is then automatically sent to the
Global Distribution System.
Global Distribution Systems also allows airlines and hotels to market themselves. By
entering available flights or rooms into the system, those unsold tickets are immediately
brought to the attention of thousands of customers. This effective technology allows
business owners to reach new clients with relatively little footwork.
Global Distribution System technology is simple to use. When an individual or business
enters travel details, such as dates and cities, the system automatically pulls up a list of
available tickets and ticket classes for purchase.
If a flight is not direct and requires a change of planes, the system will find
corresponding connecting flights from a selection of carriers. The user can then select
and purchase flights.
In addition to storing passenger data, the system also makes a record of special service
requests, such as meal preferences or seating requirements; additional data, such as a
customer's membership details in a loyalty program, are typically stored as well.
The Global Distribution System (GDS) helps small businesses to compete on an equal
footing with large hotel chains.
3.3.3 Premier GDS
The premier GDS are: Amadeus, Galileo, Sabre, and Worldspan owned and operated as
joint ventures by major airlines, car rental firms, and hotel groups. Other GDSes include
Abacus, PARS, Travelsky, Patheo, KIU and Shares.
a) Amadeus: Amadeus was founded in 1987 by Air France, Iberia, Lufthansa, and SAS.
It is the youngest of the four GDS companies and has a large European
representation. It has a comprehensive data network and database, among the
largest of their kind in Europe, serve more than 57,000 travel agency locations and
more than 10,500 airline sales offices in some 200 markets worldwide. 400 airlines,
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55,000 hotel properties, 52 car rental companies, 9 cruise lines, 33 railroads, and 229
tour operators. It provides access to approximately 58,000 hotels and 50 car rental
companies serving some 24,000 locations. Having acquired e-Travel, Inc. from
Oracle Corporation in July of 2001, Amadeus now has a new business unit dedicated
to delivering solutions to e-commerce players worldwide.
b) Galileo: Galileo International was founded in 1993 by 11 major North American and
European airlines. In October of 2001, Cendant Corporation acquired Galileo
International for approximately $1.8 billion in common stock and cash. It serves
travel agencies at approximately 45,000 locations i.e. 500 airlines, 227 hotel
companies, 33 car rental companies and 368 tour operators in North America,
Europe, the Middle East, Africa, and the Asia/Pacific region.
c) Sabre: Sabre was founded in the mid 1960‘s by 4 major North American Airlines...
most predominantly American Airlines. It is represented in 45 countries as a leading
provider of technology for the travel industry. In July of 1996, Sabre became a
separate legal entity of AMR (parent company of American Airlines). Sabre connects
more than 60,000 travel agency locations around the world including 400 airlines,
55,000 hotel properties, 52 car rental companies, 9 cruise lines, 33 railroads, and 229
tour operators.
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d) Worldspan: Worldspan was founded in February 7, 1990. It was originally
owned by affiliates of Delta Air Lines, Inc., Northwest Airlines, and TWA.
Worldspan has successfully developed the strategies, solutions, and services to
ensure the company‘s long-term success in the new web-based world of travel
distribution. Worldspan currently serves 20,021 travel agencies in nearly 90
countries and territories. It connects approximately 421 airlines, 210 hotel
companies, 40 car rental companies, 39 tour and vacation operators, and 44
special travel service suppliers.
3.3.4 GDS Switch Companies
The purpose of the GDS switch companies is to pass the data between the GDSs and the
Central Reservation Systems (and Offices) and to reduce the costs of individual
connections to each GDS. These switches levy approx. $1 per transaction. There are two
common GDS switch companies:
a) Pagasus Solution, originally known as THISCO was founded in 1989 by16 hotel
companies and offers the Ultra Switch communication link.
b) Wizcom International, a subsidiary of Cendant began its operation in 1987 to
provide GDS and reservation services.
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3.3.5 GDS Connectivity Types
GDS connectivity is what links a hotel‘s CRS and the GDS and the link type determines
the rate at which information about the hotels room availability and other pertinent
information about the property and the clients profile is exchanged.
Years ago, all hotel companies had manual links to global distribution systems.
Reservations were delivered to a queue, from which they were manually extracted,
processed and a confirmation or denial message entered into the GDS.
Manual Reservation Processing meant that reservation message was delivered to a
queue in the GDS and maintained by the hotel company‘s CRO. The staff could then
retrieve the queued message manually, make the necessary reservation request in their
reservation system and receive the confirmation number. They would then update the
hotel booking confirmation field in the hotel Segment of the PNR (Passenger Name
Record).
Manual processing required more time to be completed. A travel agent can expect to
wait longer before a confirmation is delivered.
Since that time more sophisticated connectivity options -- Type A, Type B, seamless
connectivity and next generation seamless, -- have become available and have been
adopted where hotel companies feel appropriate.
1) Type A Processing: Type A connections use a dedicated telephone line and
provide interactive confirmation processing. It can be compared to talking to
someone on the telephone -- you send your message and receive a reply almost
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immediately without having to end the record. Most hotel companies operate on
Type A connections to the GDS.
Why it matters to a Travel Agent
Type A connectivity works in ―real time‖. It provides an immediate response
allowing travel agents to receive their hotel reservation confirmation number
within about 7 seconds.
Advantages of Type A Connectivity
Confirmation speed – about 7 seconds or less
Interactive processing and error response
2) Type B Processing: Type B (or teletype) connections work via ARInc or SITA
data communications lines and can be compared to sending a fax -- you know
your message has been received but have to wait for a response.
Type B connectivity allows for greater speed and convenience for travel agents
over manual processing. With Type B links, the confirmation number is updated
in the PNR (pseudo city code) and placed in the travel agent‘s queue generally
within minutes to a few hours after completing the reservation depending on the
hotel company‘s operational procedures.
Why it matters to a Travel Agent
The travel agent has to complete the hotel booking request, send the transaction
and re-display the PNR (pseudo city code) to determine if the reservation has
been confirmed. Type B communication is used as a ―fall-back‖ procedure for
hotel companies using Type A processing when a Type A link is down for
maintenance, for example. On occasion, every hotel company that uses Type A
links will revert to Type B. This explains why it is possible to receive
confirmation numbers immediately during one transaction while for another at
the same hotel there is an longer confirmation delivery time.
3) Seamless Processing: Seamless connectivity is an advanced connection for
displaying interactive data. Reservation processing is still Type A, but the
messaging standards are newer and more efficient. Additionally, interactive
modifications and cancellations are usually included in this level of connectivity.
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Why it matters to a Travel Agent
Seamless connectivity allows much of the room description, rate, booking rules
and availability data displayed to a travel agent through their GDS to be
gathered directly from the hotel company‘s central reservation system.
Advantages of seamless connectivity
Viewing information drawn directly from CRS
Confirmation speed
Real-time information
More information and more accurate information
Information is less cryptic – more user friendly language
4) Next Generation Seamless: Also known as ―NGS‖, this technology enhances
and is built upon classic Seamless Connectivity to allow seamless data to be
displayed on the multi-property, hotel list and availability displays.
Why it matters to a Travel Agent
Next Generation Seamless products make the ‗shopping‘ displays in GDSs more
accurate with real time seamless data and aids in the selection process thus
improving the first step in the shopping/booking process in GDS.
Each GDS has its own name for their NGS Product and which are as follows:
Amadeus – Dynamic Access
Galileo – Inside Shopper
SABRE – Direct Connect Shopper
WorldSpan – Integrated Source
Advantages of Next Generation Seamless Connectivity
Real-time information on the first hotel availability displays
Alleviates misinformation between the multi-hotel availability displays and
single hotel displays
Saves time by making appropriate hotel selections from the multi-hotel
availability display
Saves time by manipulating the multi-hotel availability displays to users specific hotel
requests/requirements
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3.3.6 Exercise with Amadeus System
3.4 Management Information Systems (MIS)
Definition: A management information system (MIS) is a system or process that
provides the information necessary to manage an organization effectively.
MIS and the information it generates are generally considered essential components of
prudent and reasonable business decisions. Management Information System (MIS) is the
term given to the discipline focused on the integration of computer systems with the
aims and objectives on an organization.
The development and management of information technology tools assists executives
and the general workforce in performing any tasks related to the processing of
information. MIS and business systems are especially useful in the collation of business
data and the production of reports to be used as tools for decision making.
The Information System consists of six parts which include: people, procedures,
software, hardware, information and data. There are various types of information
systems, for example: transaction processing systems, office systems, decision support
systems, knowledge management systems, database management systems, and office
information systems.
A system is a combination or arrangement of parts to form an integrated whole. The
term system in MIS implies order, arrangement, and purpose. Data are facts and figures.
However, data have no value until they are compiled into a system and can provide
information for decision making.
Information is what is used in the act of informing or the state of being informed.
Information includes knowledge acquired by some means.
Management: Management is the process of allocating an organization's inputs,
including human and economic resources, by planning, organizing, directing, and
controlling for the purpose of producing goods or services desired by customers so that
organizational objectives are accomplished.
Management information systems are those systems that allow managers to make
decisions for the successful operation of businesses. Management information systems
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consist of computer resources, people, and procedures used in the modern business
enterprise.
3.2.1 Applications of MIS
Strategy Support: While computers cannot create business strategies by themselves
they can assist management in understanding the effects of their strategies, and help
enable effective decision-making. MIS systems can be used to transform data into
information useful for decision making. Computers can provide financial statements
and performance reports to assist in the planning, monitoring and implementation of
strategy.
MIS systems provide a valuable function in that they can collate into coherent reports
unmanageable volumes of data that would otherwise be broadly useless to decision
makers. By studying these reports decision-makers can identify patterns and trends that
would have remained unseen if the raw data were consulted manually.
MIS systems can also use these raw data to run simulations-hypothetical scenarios that
answer a range of ‗what if‘ questions regarding alterations in strategy. For instance, MIS
systems can provide predictions about the effect on sales that an alteration in price
would have on a product. These Decision Support Systems (DSS) enable more informed
decision making within an enterprise than would be possible without MIS systems.
Data Processing: MIS systems provide a valuable time saving benefit to the workforce.
Where in the past business information had to be manually processed for filing and
analysis it can now be entered quickly and easily onto a computer by a data processor,
allowing for faster decision making and quicker reflexes for the enterprise as a whole.
3.2.2 Types of MIS
Management information systems can be used as a support to managers to provide a
competitive advantage. The system must support the goals of the organization. Most
organizations are structured along functional lines, and the typical systems are
identified as follows:
a) Accounting management information systems: All accounting reports are shared by
all levels of accounting managers.
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b) Financial management information systems: The financial management information
system provides financial information to all financial managers within an
organization.
c) Marketing management information systems: A marketing management information
system supports managerial activity in the area of product development,
distribution, pricing decisions, promotional effectiveness, and sales forecasting.
More than any other functional area, marketing systems relies on external
sources of data. These sources include competition and customers, for example.
d) Human resources management information systems: Human resources management
information systems are concerned with activities related to workers, managers,
and other individuals employed by the organization. Because the personnel
function relates to all other areas in business, the human resources management
information system plays a valuable role in ensuring organizational success.
Activities performed by the human resources management information systems
include, work-force analysis and planning, hiring, training, and job assignments.
The above are examples of the major management information systems. There may be
other management information systems if the company is identified by different
functional areas.
The information can be used for various purposes,
o strategic planning
o delivering increased productivity
o reducing service cycles
o reducing product development cycles
o reducing marketing life cycles
o increasing the understanding of customers' needs
o Facilitating business and process re-engineering.
MIS can also be used across the organization as an information utility to
o support policy making
o meet regulatory and legislative requirements
o support research and development
o support consistent and rapid decision making
o enable effective and efficient utilization of resources
o provide evidence of business transactions
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o Identify and manage risks
o Evaluate and document quality, performance and achievements.
The availability of information is fundamental to the decision making process.
Decisions are made within the organization at Strategic, Operational and Activity level.
The information needs and decision making activities of the various levels of
management include:-
a) Senior Management: Involved with the strategic business direction and looks
into things like information for strategically positioning the organization,
competitive analysis and performance evaluation, strategic planning and
policy, external factors that influence the direction etc.
b) Mid-Level Management: It is concerned with the organizational and operational
functions of the organization. It entails information for coordination of work
units, information for delivery programs, evaluation of resources usage,
budget control, problem solving, operational planning etc.
c) Line Management:- Involved mainly with activity management and these are,
information for routine decision making, information for problem solving,
information for service delivery etc.
d) Functional Information Systems:- Accounting Information Systems,
Marketing Information Systems, Enterprise Information Systems,
Decision Support Information Systems, Executive Information Systems
Quality Management Information Systems, Manufacturing
Information Systems, Financial Information Systems and Human
resource Information Systems
By its very nature, management information is designed to meet the unique needs of
individual institutions. As a result, MIS requirements will vary depending on the size
and complexity of the operations.
3.5 Point of Sale (POS) System
A well designed point of sale display attracts the attention of the consumer while at the
same time transmitting information or message about the business or products. To
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make POS efficient and effective, appropriate Peripherals, Software and Systems
Integration needs to be in place. These may include:
Bar code scanner or reader
Remote receipt, kitchen, slip and report printers
Card reader
Programming Utility Software
Back Office Software
Hotel PMS
CCTV
Kitchen Monitor
Waiter
Pad
3.5.1 POS Restaurant and Hospitality Touch Screen System
Touch POS systems are used in both large establishments and in smaller cafes and fast-
food restaurants. A PC-based touch-screen POS stations help cashiers, bartenders,
waiters, and telephone order personnel to enter and process food orders.
a) POS in Table Service entails an on-screen review to ensure order accuracy, an easy
item and check splitting and employee-centric access to typical functions such as
void and promo
b) At the Bar Service, POS is used to check based functionality, name a guest check
for easy recognition and to order a complete round or individual items.
c) POS at the counter service enables minimal keystrokes for order entry, quick
access to configurable payment keys, automatic order routing to preparation
station and also allow an employee to remain logged onto terminal. This enables
employees to see the remaining number of a particular menu item. When
depleted, the item will automatically show up as inhibited and employees won't
be able to put an order through for it.
Hardware add-ons may include a wide variety of available peripherals such as:-
a) Scale: - Scale may be added to a POS for items that are charged by weight. A
cafeteria or a deli or an operation with a salad bar may make use of this feature.
b) Bar Code Scanner: - Use a bar code scanner to scan items into the POS. This is
great for retail items.
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c) Requisition Printer: - It's easy to add another requisition printer to either the
kitchen or bar. You'll need a hub and the printer for this purpose.
d) Cash Drawer: - POS has the ability to run two cash drawers per terminal.
However, another cash drawer can be added to improve cash control when more
than one employee is accepting payments.
Effective touch screen terminal based on the powerful & proven HMS (Hospitality
Management System) should be flexible enough to be configured to meet the
operational requirements of bars, restaurants, and fast food operators. With touch
screens, operators are led through transactions, prompting them to select options such
as cooking instructions or side orders. The system promotes good customer service and
it also significantly reduces transaction times.
POS system options such as Magnetic or Smart Card Reader for: Server/ Employee Sign
On, Key Strokes, Loyalty Programs, Credit Card with Data Transaction, Debit Cards;
Printing for receipts and orders for shared kitchen, Shared Bar Order Printers, Slip
Printers and PC Printer; Expansion Boards, Colour Kitchen Videos, CCTV Monitoring and
Software such as Programming Utility Software, Back Office Software etc. may be
included.
3.5.2 Hospitality Management System Colour Screen
Colour screen with the small foot print design is ideal for front of bar mounting,
maintaining customer interaction at all times. The colour screen is ideal for bars,
nightclubs and quick service restaurants. The terminal can be linked to a range or
remote printers. Features included here are:
a) Menu Keys: Up to 156 individual keys can be set-up to display lists of up to 40
like items for selection. Keys can be set-up for appetizers, soups, salads, entrees,
desserts and beverages for example. Each item in the list can also be linked to 5
preparation groups. The set menu functions are available for fixed price meals
with a choice of up to 5 courses.
b) Intelligent Prompting: Intelligent prompting for cooking instructions,
condiments and side items leads employees through each item registration. This
feature simplifies training and ensures accurate order entry.
c) Kitchen Control: Automatic transmission of food and drink orders with
preparation instructions goes to any combination of 8 kitchen or dispensing areas
and is instantaneous.
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d) Automatic backup and redirecting of print jobs: Automatic backup and
redirecting of print jobs to remote or internal printers eliminates "lost" orders.
e) Keyboard and Item Files: Each keyboard contains 156 programmable key
positions. 5 Menu levels are available. Each menu level can contain both direct
entry keys and item look-up keys. Access to any one of 5000 items takes only 2
keystrokes.
f) Management Control: Full financial, product and employee flash reporting can
be displayed on the LCD or printed. Individual employee sales and
accountability, electronic journal, auditor‘s report, remote terminal monitoring
and password access to reports and programs provide security and control.
g) Flexible Order/Guest Check Tracking System: Automatic Order #'s, entry of table
numbers with multi checks and seat #'s, split checks, transferring checks and
"banked" employee accountability help make the SX-800 one of the most easily
managed hospitality systems, ever. Automatically displaying a list of each
employee's open checks makes recalling previous orders quick and simple.
h) Price Control: Promotions, special pricing and happy hour pricing can be set to
automatically start and stop at pre-selected items during the day. Up to 3
different Price Levels can be programmed for each item and each price level can
be set to automatically start and stop.
i) Waiter Pad: An optional wireless, hand-held terminal ensures that all servers
can spend more time on the floor waiting on customers. Simple entry of the
order while at the table increases accuracy and speed. The items are
automatically printed at appropriate preparation areas while the customer's
guest check or order is updated.
POS Order Entry Functions
• Displays menu items
o Different prices
o Different meal periods
o Different outlets
• Applies modifiers to menu items
• Groups menu items with single price
• Defines a default order display location
• Allows delayed order entry to time service
• Counts down items in short supply
• Provides rapid entry of quick-service items
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• Offers simple way to re-order a round of drinks
• Enables off-menu orders
POS Settlement Functions
• Splits charges on check
• Transfers checks from one server to another
• Combines checks for different tables or servers
• Can apply service charges
• Automatically adds gratuity when appropriate
• Manages server tips
• Records settlement method
• Tracks voids, corrections, and adjustments
• Provides reports such as:
• Cashier shift balances
• Menu item sales analysis
• Server productivity
3.6 Front Office Applications
Front Office System offers a flexible and feature-rich environment that handles all basic
front office operations as well as many in-depth functions. Front office systems help
maximize the efficiency of staff and guest services, and increase management's control
of all aspects of front office operations. Front office systems modules include:
a) Reservations
b) Front Desk
c) Accounts Receivable (City
Ledger)
d) Night Auditing
e) Daily Reports
f) Housekeeping
g) Concierge
h) Sales & Marketing
i) Telephone
j) Travel Agent Commissions
a.) Reservation Module: Computer has made reservation work easier by
eliminating or minimizing paper work at the reservation desk. With this module,
it is possible to handle issues to do with:
Reservation creation and editing
Special request tracking
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Seasonal rate changes with automatic rate adjustment
Advance deposit posting and tracking
Room pre-assignment
Travel agent master
Direct bill account creation during reservation entry
Scheduled guest changes
Special guest charges
Reservations may be entered quickly and easily from Repeat Guest History,
existing guests and reservations, condominium accounts, prospects, and wait
lists, minimizing redundant data entry.
b.) Front Desk Module: The Front Desk module gives the staff all of the front desk
functions they need to provide guests with quality service at the front desk. It
handles things to do with:
Check in/check out
Reservations & Walk-ins
Registration card printing
Credit card authorizations
Room pre-assignment
Share-with guest functions
Guest inquiry details
Processing of guest charges
Advance deposit tracking
Automatic posting of group charges
Reservation cancellation
Front Desk module provides different folio types that divide guest charges
between Room, Tax, and Incidentals. For example, one may set the folio type to
show room and tax only with a separate folio for incidentals, or set the folio type
to show room charges with a separate folio for tax and incidentals.
c.) Accounts Receivable Module: Also called city ledger, is an open-item
receivables system that comes as a standard component of both the Front Office
and the Accounting Systems. It handles all issues the staffs needs to run the
property accounts receivables, including payment posting routines and historical
tracking of paid accounts.
With it, it is possible handle cash/miscellaneous transaction entry, editing, and
posting; invoicing options; statement printing; direct bill approval for
reservations and folios; entry and editing of AR accounts; automatic distribution
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to general ledger. The module posts direct bill accounts from the front desk
automatically during the night audit process.
d.) Night Auditing Module: The night audit routines close hotel daily front office,
posting the day's transactions into the hotel accounting system. This module
handles room rate analysis, room & tax posting, print & post of scheduled
charges, and night audit reports. First, the night audit allows a short data file
save, and once completed, allows front office system to function fully while the
night audit staff completes the audit process in the second step.
The night audit routines automatically post room and tax charges to guest folios,
and allocate package plan and group transactions to general ledger accounts.
The night audit routines audit front desk transactions, as well as food and
beverage operations.
The night audit routines then automatically generate travel agent commissions,
allocations, and all daily report transactions. It then automatically posts daily
transactions to the Accounting System for seamless integration.
e.) Daily Report Module: Daily Report module handles all the basic functions in the
daily front office operations and post transactions into the back office accounting
system and guest history files. The module allows for manual entry, edit, and
post routines of Daily Report data for adjustment purposes; Daily Report
printing; and data transfer capability of last year, budget, outlook, and general
ledger data. The hotel management has the flexibility to customize daily report
financial statements to specifications. This module can also be standardized in
the accounting systems.
The Night Audit automatically generates daily report data from all of the Front
Office System components. The module then track valuable statistics, like
Revenue Per Available Room (RevPAR), on a daily basis in the Daily Report, and
on a monthly basis in the hotel General Ledger and Profit & Loss Statements.
f.) Housekeeping Module: This module helps to effectively manage hotel
housekeeping department. It provide a wide variety of reports that allow maid
staff to divide workloads and cleaning schedules based on hotel policies and
specific property needs. With this module the following activities can be done:
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Morning reports for cleaning schedules and room assignments
Housekeeping room status inquiries
Housekeeping room status changes as rooms are cleaned
Special Requests: The module tracks and reports guest special requests,
and alerts the staff about late sleepers, extra towel requirements, in-room
pets, and whatever user-defined requests need to be tracked.
Housekeeping Room Status: Several different levels of housekeeping
status that can be created and defined (Light Clean, Heavy Clean, Towel
Drop, Needs Inspection, etc.). Different levels of clean are ideal for
extended guest stays, green properties, and condominium properties that
don't necessarily provide complete cleaning services on a daily basis.
g.) Concierge & Bell Stand Information Module: The Concierge and Bell Stand
information module allows access of the hotel information system from the
Concierge menu, Check-in screen, and Reservations screen. The concierge and
bell staffs customize and input data that lists and details attractions in a given
area such as restaurants, tours, shops, churches, and whatever information one
choose to have on-hand for the guests.
This module offers the capability for a comprehensive database as designed by
the hotel (i.e. headings, major and minor category breakdown, record details,
and zones e.g. Major category of Restaurants, a minor category of Italian, along
with a zone defined as "within walking distance"). When a guest asks for specific
information, the concierge or bell stand may search the Information System for
the attraction, retrieve details, and print the information to hand to the guest.
h.) Sales & Marketing Module: This module tracks hotel front office data with
significant flexibility, allowing sales staff to effectively target demographic
markets. The module allows for comprehensive group management; timely
detailed reports; vast inquiry and search options; and repeat guest history
details.
i.) Telephone Module: Front Office System handles many of hotel telephone
functions automatically. This module enables certain telephone functions to be
automatically activated upon check-in and automatically deactivated upon
check-out. The functions include: The room phone extension to receive calls and
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track billing for long-distance and local service; message waiting functions; and
Do-Not-Disturb options for your guest.
With a capable phone system interfaced to Front Office system, housekeepers can
change a room's housekeeping status using the phone extension. Once the room
is clean, the housekeeper simply picks up the room phone and punches in a code
that will immediately change the room's Housekeeping Status in the Front Office
System. The code may be that the room is now clean, dirty, or needs inspection,
depending on the hotel policies.
j.) Travel Agent Commissions Module: Travel Agent Commissions software has
all the functions need to track and pay travel agent commissions. This module is
normally integrated with the Front Office system, Accounting systems or
sometimes Condominium systems.
Even though most of travel agent commissions will be posted automatically
during the night audit process, TA module allows manual maintenance of travel
agent accounts, entering and adjusting travel agent commissions, print
statements, and print commission checks.
Travel Agent module interfaces directly to the Daily Report module. The Front
Office Night Audit routines generate travel agent transactions and automatically
post to the Travel Agent and Daily Report detail files. The front office night
audit routine then automatically generates and posts travel agent commissions to
the back office general ledger system as well as the Daily Report.
The System tracks commissions in relation to deposits. If a travel agent sends a
deposit to the hotel less his commission, the system pays only the remaining
commission due; taking into account the original payment that came out of the
deposit. The system also enables data importation including lists of IATA and/or
ASTA travel agents from those organizations on CD Rom and import travel
agent lists directly into the Systems for quick and easy searches.
k) Reservation Application: A reservation module typically performs works such
as selling individual and group reservations, displaying room availability,
tracking advance deposits and level of agent information and generating
reservation reports. Modules used include Central Reservation Systems (CRS) and
Property Reservation System
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l) Rooms Management: This basically links the front desk to other departments of
the hotel such as housekeeping. As guests with reservations arrive at the front
desk, reservation information is transferred from the reservation module to
rooms management module. The guest is assigned a guest folio or guest account
is created to keep track of changes and payments.
m) Guest Accounting: In the guest accounting module, folios are created,
transactions are posted, cashier shifts are opened and closed, and guests are
checked out. Types of folios that may be created include individual folios (for
individual guests), master folio (for groups), city ledgers/folios (containing list of
customers who owe the hotel and non-guest accounts with in-house privileges)
and control folios (set up to ensure that all revenues and payments become part of
the daily report to management).
n) General Management Application: The front-office applications of PMS also
provide information (e.g. occupancy statistics) to management who use them on
their day-to-day decision making. The information can be incorporated into
many different report formats depending on the needs of the property and its
managers
Back-Office Applications
This can be employed at the back office departments such as accounting, purchasing,
and human resource
a) General Ledger Module: This is the primary ledger or account of hospitality
operation. It contains all the property‘s balance sheet and income statement
accounts. The three commonly reports found in the ledger include balance sheet
(summary of assets, liabilities and equity accounts), income statement (showing
income and expenses incurred during a certain interval of time), and comparative
balance sheet and/ or income statement (comparing current results with the
previous period).
b) Accounts Receivable Module: To monitor and improve the cash flow in the
operation by making sure monies owed by customers are collected in a timely
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manner. Such modules greatly reduce the amount of folder shuffling, filing and
refilling of physical paper records.
c) Accounts Payable Module: Provides management with information on what the
operation owes to creditors and what discounts are being offered by the
creditors. By tracking due dates and deadlines, such module increases the
likelihood of timely payments to vendors which help maintain credit ratings and
prevent interruption of supplies.
d) Payroll Module: The payroll module saves the management time by performing
the payroll calculation quickly and accurately, distributing payroll expenses
among departments, printing checks and producing payroll related reports.
e) Inventory Control Module: Tracks product quantities and prices and provides
accurate information on inventory activities thereby enabling the management to
control food cost better. The taking and extending of inventories and ordering
and receiving tasks are made easier.
f) Purchasing Module: Effective purchasing methods are extremely important
because cost savings at the purchasing stage affects a property‘s bottom-line
profitability. The purchasing report is the main report generated by this module
and includes information on prices, allowing management to secure the best
price possible.
3.4.2 Back office applications
Accounting Applications
Accounts Receivable Module
• Customer master file
• City ledger file
• Account aging file
Accounts Payable Module
• Vendor master file
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• Invoice register file
• Check register file
Payroll Module
• Employee master file
• Payroll register file
• Government register file
Financial Reporting File
• General ledger
• Trial balance
• Financial statements
Other Modules
• Inventory
• Purchasing
• Budgeting
• Fixed assets
Sales and Catering—Group Sales
• Creates company master records, including corporate subsidiaries
• Facilitates contact management
• Displays guestroom and function room availability
• Creates and tracks group bookings
• Allows adjustment of contracted rooms based on prior experience
Sales and Catering— Function Rooms
• Records function room size/capacity in different configurations
• Displays images of each function room in typical configurations
• Displays function room availability in graphic form
• Creates and tracks room bookings
• Allows simple relocation of event from one room to another
• Creates pick-lists of standard-priced menu items
CAHTI by George (2013) 57
• Manages requests for audio-visual and other equipment
• Generates contracts and banquet event orders
Customer relation management (CRM)
ELECTRONIC POINT OF SALE SYSTEM {EPOS}
The electronic point of sale system is used in recording the details of transaction. At the
simplest level, they take the form of a single cash register with a processor, memory and
a printer usually supplied in a single case. Although relatively simple to use, they offer
greatly enhanced facilities over traditional non-computerized systems. Such as:
Detailed information about how two items are performing in respect to sales volume.
Price look-up: this enables the user to press a key labelled with the name of a dish or
drink and the correct price will be added to the transaction. The electronic point of sale
system also helps to reduce work for staff ensuring that items are not omitted from the
bill or incorrectly charged, sales breakdown by each outlets number of staff and for each
section are also easy to obtain. Information of this type, if intelligently used can assist
the management of the business to ensure maximum effectiveness and profitability.
FOOD AND BEVERAGE MANAGEMENT SYSTEM
Food and beverage management system takes the concept of stock control one stage
further. They add a control frame work when correctly implemented, gives greatly
improved level of management control. With this type of system, a data base is created
of all recipes in use in the business together with a further data base containing the
ingredients used to support the dishes.
MENU ENGENEERING
Another importance of information and communication technology is menu
engineering. This technique utilizes the computer modelling of data and was originally
developed in the United States of America. This system holds data about sales volume,
cost and profit of each dish on the menu. This is achieved by creating a menu offering
the optimum balance between popularity and maximum profit. Before the emergence of
information and communication technology in Nigeria, the technique was in use with
paper and pencil. But now, it is far more effective with the use of computer system.
CAHTI by George (2013) 58
DIETRY ANALYSIS
Another tremendous benefit of information and communication technology is the
systematic analysis of the nutritional content of the menu. Many people are conscious of
what they eat, customers requires more dietary information which gives details of
composition of individual food or complete dishes at the touch of a button. They may
be simple or complex. They are simple were it is required to supply information to
average restaurant guest i.e., Crude break down. They are complex were they are linked
to government food tables and give accurately and extremely accurate and
comprehensive data which are suitable for calculating detailed nutritional profiles
EVENT MANAGEMENT SYSTEM
Another noticeable importance of information technology to the hospitality industry is
event management systems which are packages targeted at the hotels and conferences
centre designed to deal with all element of taking booking and managing events such as
conferences, meeting, weddings and banquets.
The ranges of facility offered varies, ranging from the costing of the dishes from a pre-
designed menu‘s, modules that allow the physical planning of the room layout on the
screen and the ability of giving a graphic view of how the room will appear from a
specific angle. As with many modern computers management systems, comprehensive
management reporting
CHAPTER FOUR
4.0 INTERNET IN HOSPITALITY AND TOURISM INDUSTRY
E-Commerce Concepts
• Internet
• E-distribution channels
• Online reservation systems
• Social networking: facebook, twitter, googletalk etc
• Internet marketing
CAHTI by George (2013) 59
• Enterprise systems
• Web-based applications
• Website development