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: masenouniversity@yahoo.com

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.

CAHTI by George (2013) 19

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:

CAHTI by George (2013) 20

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)

CAHTI by George (2013) 21

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

CAHTI by George (2013) 22

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

CAHTI by George (2013) 23

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

CAHTI by George (2013) 24

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.

CAHTI by George (2013) 25

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

CAHTI by George (2013) 26

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

CAHTI by George (2013) 27

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

CAHTI by George (2013) 28

(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.

CAHTI by George (2013) 29

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

CAHTI by George (2013) 30

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

CAHTI by George (2013) 31

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.

CAHTI by George (2013) 32

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.

CAHTI by George (2013) 35

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.

CAHTI by George (2013) 36

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,

CAHTI by George (2013) 37

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.

CAHTI by George (2013) 38

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.

CAHTI by George (2013) 39

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

CAHTI by George (2013) 40

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.

CAHTI by George (2013) 41

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

CAHTI by George (2013) 42

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

CAHTI by George (2013) 43

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.

CAHTI by George (2013) 44

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

CAHTI by George (2013) 45

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

CAHTI by George (2013) 46

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.

CAHTI by George (2013) 47

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.

CAHTI by George (2013) 48

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

CAHTI by George (2013) 49

• 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

CAHTI by George (2013) 50

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

CAHTI by George (2013) 51

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:

CAHTI by George (2013) 52

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

CAHTI by George (2013) 53

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

CAHTI by George (2013) 54

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

CAHTI by George (2013) 55

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

CAHTI by George (2013) 56

• 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