Computer Application In Hospitality And Tourism Industry 5i295

COMPUTER APPLICATIONS IN HOSPITALITY AND TOURISM INDUSTRY MANAGEMENT

DIPLOMA LEVEL ONE

MASENO UNIVERSITY DEPARTMENT OF ECO-TOURISM HOTEL AND INSTITUTION MANAGEMENT

By Sir Georges

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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 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 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 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)

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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.

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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         

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

Tactical Benefits         

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

Strategic Benefits  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 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)

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Desktop (PCs): - For / standard computing needs e.g. Word, excel, playing games. Emphasis is placed on display, input, and one . 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 s 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. STORAGE Permanent Disk/CD

Keyboard Scanner Diskette CD-ROM

Control Unit

ALU

Temporary Storage RAM

INPUT

PROCESSING

Fig.1. Computer System Model CAHTI by George (2013)

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Monitor Printer CD-ROM

OUTPUT

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 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)

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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, ing, food and beverage etc. Trackball: - A variation on the mouse is the trackball. The trackball is like an upsidedown 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) s 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 deg 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

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the computer system, which determines the location on the screen where the 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 s: Touch screen electronic cash s 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).

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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 (U) 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 U 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 Us, 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 Us 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 U. Execute: - During this step, various portions of the U are connected so they can perform the desired operation. If, for instance, an addition operation was

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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 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. 

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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.).

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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. ments 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 (U, 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 U. The U 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)

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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 nonvolatile as well, and not as costly. Secondary storage in popular usage differs from primary storage in that it is not directly accessible by the U. 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.

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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 ed for free at openoffice.org. Microsoft Word is the most widely used CAHTI by George (2013)

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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 (CtrlZ).  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)

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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)

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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 deg 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.

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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 to easily rid the disk of unwanted files. 2.2.4 Word Processing in Hospitality and Tourism Industry Within the hospitality business and the organization world, word processors are extremely useful tools and typical uses include: legal copies letters and letterhead memos reference documents preparing reports Exercises Exercise One: Opening New Word Document o Click on start button o Click programs o Click the installed generic program e.g. Microsoft Office o From the drop down menu select the word processor e.g. Microsoft word Exercise Two: Text Editing 

Once you have opened a new word document, type in the following text:

Date: 20th February, 2012

(20/02/2012)

Maseno University Faculty of Science Department of Eco-tourism Hotel and Institution Management Private Bag, MASENO-40105 Email: [email protected] Ref: The Impact of Computers in Hospitality and Tourism Industry Internet: The biggest change in the travel industry in recent years has been the rise of the Internet. It used to be that you had to speak with your travel agent, or call hotels and airlines directly, to make your travel plans.

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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   

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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.

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 can create a simplified mailing list in a spread sheet by entering names and addresses in individual columns. There are even word processing features offering control over fonts, bold or italic typeface, size, colour and page formatting.

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2.2.2 Parts of Spread sheet Row: The horizontal strips of the spread sheet are called rows. They are identified by number at the far left hand side of the spread sheet. This is called the row header. Columns: The vertical strips of the spread sheet are columns. They are identified by letters across the top of the spread sheet. This is called the column header. You can select an entire column by clicking on the letter at the top of the column-- or select an entire row by clicking on the number at the left of the row. Cell: A "cell" can be thought of as a box for holding a datum. A single cell is usually referenced by its column and row. Its physical size can usually be tailored for its content by dragging its height or width at box intersections (or for entire columns or rows by dragging the column or rows headers). We enter information into cells-- which are different from a word processor. For example, when you center text, it is centered in its cell, not across the page. You select a cell by clicking on it. A rectangular group of cells is referred to as a range. You can select a range by holding your (left) mouse button down while moving across the range, or by clicking in the topleft 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

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  

Labels are words, phone numbers, etc... Numbers are (duh!) numerical data (note that phone numbers aren‘t numbers) Formulas perform calculations on numbers-- when you‘re done typing a formula, it only shows the answer... to see the formula that you typed, look in the formula bar above the spreadsheet: Note that all formulas start with an equal sign (that‘s how the spreadsheet knows it‘s a formula!):

An array of cells is called a "sheet" or "worksheet". In most implementations, many worksheets may be located within a single spread sheet. A worksheet is simply a subset of the spread sheet divided for the sake of clarity. Many worksheets is called book. 2.2.3 Applications of Spread sheet Spread sheets can do more than perform simple arithmetic calculations a) Functions: - Spread sheets feature columns and rows to keep inserted information legible and simple to understand. You can use spread sheets to enter data, calculate equations and create charts and graphs. This is applied in the hospitality industry in presentation of certain reports by various departments. A function is a formula built-into the spreadsheet... functions are applied to whatever is inside the parentheses. Typical spreadsheets have 50-200 built-in functions, for business purposes (mortgage calculations, for example), statistical analysis, and other specialized purposes. Two are most often used by ‗everyday‘ people:  =Sum to add all the numbers in a range: =sum(A5:D15)  =Avg to get the average of all the numbers in a range: =avg(A5:D15)

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b) Computations: - A spread sheet program can be made to compute a variety of mathematical functions, beginning with addition, subtraction, multiplication and division. You can create relational functions such as greater than, equal than and less than. This is mostly applied at the s department. Arithmetic with spread sheets: Addition:

=15 + 30

=B3 + D7

Subtraction:

= 30-15

=B3 - D7

Multiplication:

= 30 * 15

=B3 * D7

Division:

= 30/15

=B3/D7

Exponent:

= 30^2

=B3^2

Square Root:

=sqrt(16)

=sqrt(B3)

You can mix numbers and cell addresses: =B7 + 3 for example. And you can combine different arithmetic operations, using parentheses as needed: =B7 * (A3+A18 - 47) By nesting parentheses, you can make very complex arithmetic sentences-- but most of us won't ever need to do this! c) Statistical Analysis: - Excel can calculate sums, variances and averages of a range of numbers. Creating and analysing statistical values, such as standard error of the mean and percentile ranks, and variables are additional available functions. A spread sheet can translate complicated data and reports into a combination of numbers and graphs. It is applied by the marketing department when conducting research pertaining to certain products in the hospitality industry. d) Formatting: The spread sheet software allows cells, rows and columns to expand, merge, be inserted and deleted. This helps when you are using lengthy text and equations. Spread sheet software also features some of the functions found in word-processing applications, allowing you to format row and column headlines by underlining and changing styles to italic, bold and other text attributes. You

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can edit font size and colour of the data and centre or align the information in the cells.

Examples of Spread Sheet Data

Hotel Bed Occupancy by zone.xls

Visitor Arrivals,Parks Stats.xls

Hotel Bednights Occupied by Zone.xls

Hotel bednights Occupied by Country of Residence.xls

Hotel Bed-Nights Occupancy by Country of Residence.xls

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2.3 Database A database is an integrated collection of logically related records or files consolidated into a common pool that provides data for one or multiple uses. You can use databases to store information in an organized way. The information could be on customers, sales, staff, finances, facilities etc. 2.3.1 Historical development of Databases As the term ‗computer‘ implies, originally most istrative 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, s istration 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 ing 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)

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b)

c)

d) e)

data entry form would have fields for: Customer ID, Name, Street, City, State, Zip Queries: - Common Queries to the database can be formed by the database designers. Queries can also be saved for specific purposes. supplies criteria for the query and executes the query against the tables in the database. 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. Applications Code: - Applications code is used to enforce business rules. Menus: - Menus tie applications together. It also provides a convenient way for s 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 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 makes a choice at the first level of the menu, a second series of choices appears.

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Keyword search engine: A program that allows a 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 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 s who might not know the format for the records in a database. One way to help s search structured databases is by providing a ‗query by example‘ 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)

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called relations. The only requirement is that the information must be capable of being laid out in rows and columns (similar to a list of names, addresses and phone numbers). This database was developed as a result of the limitations from the other database models. Relational databases not only accommodate multiple views but allow new links to be forged as needs arise. Relational databases are powerful because they require few assumptions about how data is related or how it will be extracted from the database. As a result, the same database can be viewed in many different ways. The personnel office keeps records of the department, rank, names, and social identity numbers of the teaching staff, and so on. The following figure shows examples of relational tables. A relational database stores information across different tables and connects them with links in the computer. Table: Personnel Office Database PF No 4567 4568 4570 4571 4572 4575 4576 4578 4580

Last name McDowell Smith Morgan Gomez Heinz Deal Frear Conrad Whitney

First Name Tina Steven George David Judith Sue Robert Mark Pam

Department F&B FO F&B House Keeping F&B FO Sales &Market Purchasing Maintenance

ID No 2053021 3171386 7016639 4344891 8200461 0010534 0355703 9105977 9470825

Rank/Post F&B Manager FO Manager Restaurant Manager Executive Housekeeper F&B Controller Reservationist S&M Manager Purchasing Officer Chief Maintenance Officer

2.3.5 Types of Database a) Operational database: - These databases store detailed data needed to 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)

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b)

c)

d)

e)

f)

Sales database 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-s. It‘s sometimes referred to as multidimensional databases, management databases, or information databases. 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- professionals throughout an organization 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 databases, as well as data generated and used only at a ‘s own site. End- database: These databases consist of a variety of data files developed by end-s at their workstations. Examples of these are collections of documents in spread sheets, word processing and even ed files. External database: These databases provide access to external, privately-owned data online - available for a fee to end-s 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 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 s. It allows organizations to place control of organization-wide database development in the hands of Database s CAHTI by George (2013)

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(DBAs) and other specialists. In large systems, a DBMS allows s 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 , 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 s to create highly stylised images for slide presentations and reports. They can also be used to produce various types of charts and graphs. Many software applications include graphics components including: paint programs, desktop publishing applications and so on. Communications applications typically include software to enable people to send faxes and emails and dial into other computers. 2.5 Desktop Publishing Desktop publishing (dtp) uses both word processing and graphics to produce publications and presentations. Some common dtp programs are MS Publisher and Quark Express. Both Adobe (adobe page maker) and Corel have a number of programs that work like dtp programs. OpenOffice.org Draw is an OpenSource free option. Desktop publishing programs layout their documents in a series of slides that can contain text, graphics and dynamic content. Content is added to each slide in a series which can be printed or saved as a slide presentation. Sound and music can also be added to the presentation.

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Desktop publishing has found use in the hospitality and tourism industry in preparing the following: a) Menu: To communicate list and prices of food items on offer to guests as well as act as a merchandising tool depending on how it has been designed. b) Catalogs: To show prices of particular items and services on offer within tourism and hospitality business c) Brochures: To give information pertaining hospitality facility to guests d) Tent Cards: To market a special dish to clients in the restaurant e) Business cards: For networking and maintaining business s for business and referrals f) Banners: Can be prepared to functions within a hotel facility g) Labels: Food labels can be prepared and used in the buffet service layout to identify dishes on the buffet h) Name Tags: For identification purpose. Used to identify personnel within hospitality facility or in conference proceedings and events. i) Programs: Used to prepare programs for events organized within hospitality facility such as food festivals, conventions, conference, seminars etc. j) Flyers: Used for creating awareness about availability of certain products or services k) Invitation Cards: Used to invite guests or individuals to special events within the hospitality industry

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CHAPTER THREE

3.0 TECHNOLOGY SYSTEMS IN HOSPITALITY AND TOURISM INDUSTRY There are so many applications and technologies developed as a result of integrating the generic applications to suit the needs of an establishment and help it achieve its objectives. In the hospitality and tourism industry, such technologies include property management systems (PMS), computer reservation systems (CRS), global distribution systems (GDS), management information systems (MIS), point of sale systems (POS), etc. Some of the software which have aided the development and also of benefit to the hospitality industry are: a) Electronic point of sale (EPOS): The electronic point of sale system is used in recording the details of transaction. b) Computer reservation system (CRS): CRS are used to reserve rooms, restaurant seats, airline seats etc. by the client either online or by the reservationist at the hospitality facility. c) Event management system: These are packages targeted at the hotels and conferences centre designed to deal with all element of taking booking and managing events such as conferences, meeting, expositions, conventions weddings, banquets, seminars, workshops etc. d) Food and beverage management system: Food and beverage management system takes the concept of stock control one stage further. They add a control frame work when correctly implemented, gives greatly improved level of management control. e) Menu engineering: This technique utilizes the computer modelling of data which holds data about sales volume, cost and profit of each dish on the menu. This is achieved by creating a menu offering the optimum balance between popularity and maximum profit. f) Dietary analysis: Information and communication technology used to systematically analyse the nutritional content of the menu. Many people are conscious of what they eat, customers requires more dietary information which

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gives details of composition of individual food or complete dishes at the touch of a button. g) Global distribution system (GDS): reservation channel used by travel agents to book hotel rooms, restaurant seats, meals, airline seats, train, cruise etc. for clients.

3.1 Property Management Systems (PMS) In the hospitality industry, a property management system is a computerized system used to manage guest bookings, online reservations, point of sale, telephone and other amenities. Hotel property management systems may interface with central reservation systems and revenue or yield management systems, front office, back office and point of sale systems. There are many different types of property management systems available (e.g. Oracle, Opera, etc.), but a /business will want to work with the different companies to determine which property management system best fits their needs.

3.1.2 PMS Functions As an umbrella system in the hospitality and tourism industry, PMS may be interfaced and integrated with other systems to perform the following functions: a) Reservation: The reservationist can make reservation via the PMS and CRS interface or reservation module at the front office. The reservation module will have the options for rooms or product availability/forecasting, access to reservation records and reservation confirmations. b) Rooms’ management: It is possible to manage rooms by the housekeeping and front office department through PMS. When interfaced with rooms management module, room status for all the rooms in the establishment can be obtained or viewed easily, registration of guests and room assignment is fast with highest level of efficiency.

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c) Guest ing: PMS makes guest ing process to be faster, effective and efficient through the Guest ing Module. The guest ing 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 ing Call ing 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 s, 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)

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e)

f)

g) h)

i)

j)

k)

keeping that guest within your group. One is also able to Store and access all of your data in one central location. Automatic Rate Selection: There are pre-defined room rates based on managementcreated 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. Web reservations Subsystem Interface: This allows customers to easily access realtime availability at a given property and to book a reservation from an existing website directly to the hotels Front Office System. Cashier reconciliation: Provision of an audit trail of transactions at the end of each cashier's shift for cashier balancing. 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 -defined requests the hotel wish to track. 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. 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. 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.

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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 d to one group. This provides a single point of for prospective guest and ensures that sales are maximized. c) Global distribution system(G.D.S) this type of reservation is based on airline this in turn are linked to the central reservation systems and travel agent and thus allow direct selling and reservation to take place. d) World Wide Web- currently they are number of agencies offering the hospitality industry the opportunity to market hotels in the World Wide Web. This system also offers the opportunity to make direct reservation of hotel accommodation. The benefit of this approach is that is available to anyone having access to the internet everything about reservation is being simplified. 3.2.3 Importance of CRSs a) A CRS is essentially a database which manages the inventory of a tourism enterprise, whilst it distributes it electronically to remote sales offices and external partners. Intermediaries and consumers can access the inventory and they can make and confirm reservations. b) CRSs enable principals to control, promote and sell their products globally, while facilitating their yield management. In addition, they integrate the entire range of business functions, and thus can contribute to principals‘ profitability and long term prosperity. c) CRSs often charge competitive commission rates in comparison with other distribution options, whilst enabling flexible pricing and capacity alterations in order to adjust supply to demand fluctuations. d) CRSs also reduce communication costs, while providing intelligence information on demand patterns or the position of partners and competitors. Hence, CRSs contribute enormously to both the operational and strategic management of the industry.

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3.2.4 Practical Exercise with iMagic Hotel Reservation System

3.3 Global Distribution Systems (GDSs) Global Distribution System (GDS) is Worldwide computerized reservation network used as a single point of access for reserving airline seats, hotel rooms, rental cars, and other travel related items by travel agents, online reservation sites, and large corporations. GDS is also called automated reservation system (ARS) or computerized reservation system (CRS). The GDS or Global Distribution System is a means of electronic booking airlines seats, car hire hotel rooms and ship cruises only by Travel Professionals (mostly agents). IDS or Internet Distribution System on the other hand is a means of booking the above services by channelling potential end 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 Services) for hotels without PMS. 3.3.1 Historical Development of GDS Initially, airlines used to operate their own CRS because engers 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 enger train companies and hotel chains so clients can make multiple bookings for various tickets and locations.

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3.3.2 GDS Performance A Global Distribution System holds all pertinent data relating to travel information. It stores a client‘s name, ticket details, fare tariffs, and a schedule of flights. This information is entered into a company's system and is then automatically sent to the Global Distribution System. Global Distribution Systems also allows airlines and hotels to market themselves. By entering available flights or rooms into the system, those unsold tickets are immediately brought to the attention of thousands of customers. This effective technology allows business owners to reach new clients with relatively little footwork. Global Distribution System technology is simple to use. When an individual or business enters travel details, such as dates and cities, the system automatically pulls up a list of available tickets and ticket classes for purchase. If a flight is not direct and requires a change of planes, the system will find corresponding connecting flights from a selection of carriers. The can then select and purchase flights. In addition to storing enger 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 hip 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 t 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 , 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)

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55,000 hotel properties, 52 car rental companies, 9 cruise lines, 33 railroads, and 229 tour operators. It provides access to approximately 58,000 hotels and 50 car rental companies serving some 24,000 locations. Having acquired e-Travel, Inc. from Oracle Corporation in July of 2001, Amadeus now has a new business unit dedicated to delivering solutions to e-commerce players worldwide. b) Galileo: Galileo International was founded in 1993 by 11 major North American and European airlines. In October of 2001, Cendant Corporation acquired Galileo International for approximately $1.8 billion in common stock and cash. It serves travel agencies at approximately 45,000 locations i.e. 500 airlines, 227 hotel companies, 33 car rental companies and 368 tour operators in North America, Europe, the Middle East, Africa, and the Asia/Pacific region. c) Sabre: Sabre was founded in the mid 1960‘s by 4 major North American Airlines... most predominantly American Airlines. It is represented in 45 countries as a leading provider of technology for the travel industry. In July of 1996, Sabre became a separate legal entity of AMR (parent company of American Airlines). Sabre connects more than 60,000 travel agency locations around the world including 400 airlines, 55,000 hotel properties, 52 car rental companies, 9 cruise lines, 33 railroads, and 229 tour operators.

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d) Worldspan: Worldspan was founded in February 7, 1990. It was originally owned by s 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 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)

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3.3.5 GDS Connectivity Types GDS connectivity is what links a hotel‘s CRS and the GDS and the link type determines the rate at which information about the hotels room availability and other pertinent information about the property and the clients profile is exchanged. Years ago, all hotel companies had manual links to global distribution systems. Reservations were delivered to a queue, from which they were manually extracted, processed and a confirmation or denial message entered into the GDS. Manual Reservation Processing meant that reservation message was delivered to a queue in the GDS and maintained by the hotel company‘s CRO. The staff could then retrieve the queued message manually, make the necessary reservation request in their reservation system and receive the confirmation number. They would then update the hotel booking confirmation field in the hotel Segment of the PNR (enger Name Record). Manual processing required more time to be completed. A travel agent can expect to wait longer before a confirmation is delivered. Since that time more sophisticated connectivity options -- Type A, Type B, seamless connectivity and next generation seamless, -- have become available and have been adopted where hotel companies feel appropriate. 1) Type A Processing: Type A connections use a dedicated telephone line and provide interactive confirmation processing. It can be compared to talking to someone on the telephone -- you send your message and receive a reply almost

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immediately without having to end the record. Most hotel companies operate on Type A connections to the GDS. Why it matters to a Travel Agent Type A connectivity works in ―real time‖. It provides an immediate response allowing travel agents to receive their hotel reservation confirmation number within about 7 seconds. Advantages of Type A Connectivity  Confirmation speed – about 7 seconds or less  Interactive processing and error response 2) Type B Processing: Type B (or teletype) connections work via ARInc or SITA data communications lines and can be compared to sending a fax -- you know your message has been received but have to wait for a response. Type B connectivity allows for greater speed and convenience for travel agents over manual processing. With Type B links, the confirmation number is updated in the PNR (pseudo city code) and placed in the travel agent‘s queue generally within minutes to a few hours after completing the reservation depending on the hotel company‘s operational procedures. Why it matters to a Travel Agent The travel agent has to complete the hotel booking request, send the transaction and re-display the PNR (pseudo city code) to determine if the reservation has been confirmed. Type B communication is used as a ―fall-back‖ procedure for hotel companies using Type A processing when a Type A link is down for maintenance, for example. On occasion, every hotel company that uses Type A links will revert to Type B. This explains why it is possible to receive confirmation numbers immediately during one transaction while for another at the same hotel there is an longer confirmation delivery time. 3) Seamless Processing: Seamless connectivity is an advanced connection for displaying interactive data. Reservation processing is still Type A, but the messaging standards are newer and more efficient. Additionally, interactive modifications and cancellations are usually included in this level of connectivity.

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Why it matters to a Travel Agent Seamless connectivity allows much of the room description, rate, booking rules and availability data displayed to a travel agent through their GDS to be gathered directly from the hotel company‘s central reservation system. Advantages of seamless connectivity  Viewing information drawn directly from CRS  Confirmation speed  Real-time information  More information and more accurate information  Information is less cryptic – more 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 s specific hotel requests/requirements

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3.3.6 Exercise with Amadeus System

3.4 Management Information Systems (MIS) Definition: A management information system (MIS) is a system or process that provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions. Management Information System (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization. The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making. The Information System consists of six parts which include: people, procedures, software, hardware, information and data. There are various types of information systems, for example: transaction processing systems, office systems, decision 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)

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consist of computer resources, people, and procedures used in the modern business enterprise. 3.2.1 Applications of MIS Strategy : 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 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 to managers to provide a competitive advantage. The system must the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows: a) ing management information systems: All ing reports are shared by all levels of ing managers.

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b) Financial management information systems: The financial management information system provides financial information to all financial managers within an organization. c) Marketing management information systems: A marketing management information system s 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 o o o o o o

strategic planning delivering increased productivity reducing service cycles reducing product development cycles reducing marketing life cycles increasing the understanding of customers' needs Facilitating business and process re-engineering.

MIS can also be used across the organization as an information utility to o o o o o o

policy making meet regulatory and legislative requirements research and development consistent and rapid decision making enable effective and efficient utilization of resources provide evidence of business transactions

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o Identify and manage risks o Evaluate and document quality, performance and achievements. The availability of information is fundamental to the decision making process. Decisions are made within the organization at Strategic, Operational and Activity level. The information needs and decision making activities of the various levels of management include:a) Senior Management: Involved with the strategic business direction and looks into things like information for strategically positioning the organization, competitive analysis and performance evaluation, strategic planning and policy, external factors that influence the direction etc. b) Mid-Level Management: It is concerned with the organizational and operational functions of the organization. It entails information for coordination of work units, information for delivery programs, evaluation of resources usage, budget control, problem solving, operational planning etc. c) Line Management:- Involved mainly with activity management and these are, information for routine decision making, information for problem solving, information for service delivery etc. d) Functional Information Systems:- ing Information Systems, Marketing Information Systems, Enterprise Information Systems, Decision Information Systems, Executive Information Systems Quality Management Information Systems, Manufacturing Information Systems, Financial Information Systems and Human resource Information Systems By its very nature, management information is designed to meet the unique needs of individual institutions. As a result, MIS requirements will vary depending on the size and complexity of the operations. 3.5 Point of Sale (POS) System A well designed point of sale display attracts the attention of the consumer while at the same time transmitting information or message about the business or products. To

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make POS efficient and effective, appropriate Peripherals, Software and Systems Integration needs to be in place. These may include: Bar code scanner or reader Remote receipt, kitchen, slip and report printers Card reader Programming Utility Software Back Office Software Hotel PMS CCTV Kitchen Monitor Waiter Pad 3.5.1 POS Restaurant and Hospitality Touch Screen System Touch POS systems are used in both large establishments and in smaller cafes and fastfood 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)

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c) Requisition Printer: - It's easy to add another requisition printer to either the kitchen or bar. You'll need a hub and the printer for this purpose. d) Cash Drawer: - POS has the ability to run two cash drawers per terminal. However, another cash drawer can be added to improve cash control when more than one employee is accepting payments. Effective touch screen terminal based on the powerful & proven HMS (Hospitality Management System) should be flexible enough to be configured to meet the operational requirements of bars, restaurants, and fast food operators. With touch screens, operators are led through transactions, prompting them to select options such as cooking instructions or side orders. The system promotes good customer service and it also significantly reduces transaction times. POS system options such as Magnetic or Smart Card Reader for: Server/ Employee Sign On, Key Strokes, Loyalty Programs, Credit Card with Data Transaction, Debit Cards; Printing for receipts and orders for shared kitchen, Shared Bar Order Printers, Slip Printers and PC Printer; Expansion Boards, Colour Kitchen Videos, CCTV Monitoring and Software such as Programming Utility Software, Back Office Software etc. may be included. 3.5.2 Hospitality Management System Colour Screen Colour screen with the small foot print design is ideal for front of bar mounting, maintaining customer interaction at all times. The colour screen is ideal for bars, nightclubs and quick service restaurants. The terminal can be linked to a range or remote printers. Features included here are: a) Menu Keys: Up to 156 individual keys can be set-up to display lists of up to 40 like items for selection. Keys can be set-up for appetizers, soups, salads, entrees, desserts and beverages for example. Each item in the list can also be linked to 5 preparation groups. The set menu functions are available for fixed price meals with a choice of up to 5 courses. b) Intelligent Prompting: Intelligent prompting for cooking instructions, condiments and side items leads employees through each item registration. This feature simplifies training and ensures accurate order entry. c) Kitchen Control: Automatic transmission of food and drink orders with preparation instructions goes to any combination of 8 kitchen or dispensing areas and is instantaneous.

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d) Automatic backup and redirecting of print jobs: Automatic backup and redirecting of print jobs to remote or internal printers eliminates "lost" orders. e) Keyboard and Item Files: Each keyboard contains 156 programmable key positions. 5 Menu levels are available. Each menu level can contain both direct entry keys and item look-up keys. Access to any one of 5000 items takes only 2 keystrokes. f) Management Control: Full financial, product and employee flash reporting can be displayed on the LCD or printed. Individual employee sales and ability, electronic journal, auditor‘s report, remote terminal monitoring and 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 ability help make the SX-800 one of the most easily managed hospitality systems, ever. Automatically displaying a list of each employee's open checks makes recalling previous orders quick and simple. h) Price Control: Promotions, special pricing and happy hour pricing can be set to automatically start and stop at pre-selected items during the day. Up to 3 different Price Levels can be programmed for each item and each price level can be set to automatically start and stop. i) Waiter Pad: An optional wireless, hand-held terminal ensures that all servers can spend more time on the floor waiting on customers. Simple entry of the order while at the table increases accuracy and speed. The items are automatically printed at appropriate preparation areas while the customer's guest check or order is updated. POS Order Entry Functions •

• • • • • •

Displays menu items o Different prices o Different meal periods o Different outlets Applies modifiers to menu items Groups menu items with single price Defines a default order display location Allows delayed order entry to time service Counts down items in short supply Provides rapid entry of quick-service items

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• •

Offers simple way to re-order a round of drinks Enables off-menu orders

POS Settlement Functions • • • • • • • • •

Splits charges on check Transfers checks from one server to another Combines checks for different tables or servers Can apply service charges Automatically adds gratuity when appropriate Manages server tips Records settlement method Tracks voids, corrections, and adjustments Provides reports such as: • Cashier shift balances • Menu item sales analysis • Server productivity

3.6 Front Office Applications Front Office System offers a flexible and feature-rich environment that handles all basic front office operations as well as many in-depth functions. Front office systems help maximize the efficiency of staff and guest services, and increase management's control of all aspects of front office operations. Front office systems modules include: a) Reservations b) Front Desk c) s Receivable Ledger) d) Night Auditing e) Daily Reports

(City

f) g) h) i) j)

Housekeeping Concierge Sales & Marketing Telephone 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)

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Seasonal rate changes with automatic rate adjustment Advance deposit posting and tracking Room pre-assignment Travel agent master Direct bill 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 s, 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 Guest inquiry details Reservations & Walk-ins Processing of guest charges Registration card printing Advance deposit tracking Credit card authorizations Automatic posting of group charges Room pre-assignment Reservation cancellation Share-with guest functions

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.) s 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 ing Systems. It handles all issues the staffs needs to run the property s receivables, including payment posting routines and historical tracking of paid s. 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 s; automatic distribution

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to general ledger. The module posts direct bill s 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 ing 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 s. 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 ing 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 ing 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 ing systems. The Night Audit automatically generates daily report data from all of the Front Office System components. The module then track valuable statistics, like Revenue Per Available Room (RevPAR), on a daily basis in the Daily Report, and on a monthly basis in the hotel General Ledger and Profit & Loss Statements. f.) Housekeeping Module: This module helps to effectively manage hotel housekeeping department. It provide a wide variety of reports that allow maid staff to divide workloads and cleaning schedules based on hotel policies and specific property needs. With this module the following activities can be done:

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Morning reports for cleaning schedules and room assignments Housekeeping room status inquiries Housekeeping room status changes as rooms are cleaned Special Requests: The module tracks and reports guest special requests, and alerts the staff about late sleepers, extra towel requirements, in-room pets, and whatever -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)

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track billing for long-distance and local service; message waiting functions; and Do-Not-Disturb options for your guest. With a capable phone system interfaced to Front Office system, housekeepers can change a room's housekeeping status using the phone extension. Once the room is clean, the housekeeper simply picks up the room phone and punches in a code that will immediately change the room's Housekeeping Status in the Front Office System. The code may be that the room is now clean, dirty, or needs inspection, depending on the hotel policies. j.) Travel Agent Commissions Module: Travel Agent Commissions software has all the functions need to track and pay travel agent commissions. This module is normally integrated with the Front Office system, ing 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 s, 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 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)

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l) Rooms Management: This basically links the front desk to other departments of the hotel such as housekeeping. As guests with reservations arrive at the front desk, reservation information is transferred from the reservation module to rooms management module. The guest is assigned a guest folio or guest is created to keep track of changes and payments. m) Guest ing: In the guest ing 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 s 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 ing, purchasing, and human resource a) General Ledger Module: This is the primary ledger or of hospitality operation. It contains all the property‘s balance sheet and income statement s. The three commonly reports found in the ledger include balance sheet (summary of assets, liabilities and equity s), 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) s Receivable Module: To monitor and improve the cash flow in the operation by making sure monies owed by customers are collected in a timely

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manner. Such modules greatly reduce the amount of folder shuffling, filing and refilling of physical paper records. c) s 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 ing Applications s Receivable Module • • •

Customer master file City ledger file aging file

s Payable Module •

Vendor master file

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• •

Invoice file Check file

Payroll Module • • •

Employee master file Payroll file Government 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 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

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• •

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 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 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 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)

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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 predesigned 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

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• • •

Enterprise systems Web-based applications Website development

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