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CAVITE STATE UNIVERSITY

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BSHM23: APPLIED BUSINESS TOOLS

AND TECHNOLOGIES

MODULE TITLE : Applied Business Tools and Technologies

“FUNCTIONAL APPLICATION OF HOSPITALITY INFORMATION SYSTEM”
( Week 10 & 11 )

This module contains skills, knowledge and performance outcomes required to

understand and operate relevant IT systems that are used in the hotel and restaurant
industries. Topics covered include folio systems for front office; POS systems from F&B
operations as well as other reservation, finance, housekeeping, marketing and public
relation.

MODULE CONTENT

1.0 Functional Application of hospitality information System.

1.1 Introduction to business Technology
1.2 Introduction to Hospitality Information System
1.3 Characteristic of hospitality information system
1.4 Types
1.4.1 Computer Reservation System ( CRS )

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 1.4.2 Global Distribution System ( GDS )
1.4.3 Property management System ( PMS )
1.4.4 Point of Sale System ( POS )

SUMMARY OF LEARNING OUTCOMES

After completion of the Chapter , Students should be able to;

1.0 Learn about the system and information technology in the hospitality industry
2.0 Learn the types of different hospitality industry technology system

INTRODUCTION

Traditionally, hotels were largely dependent on cards and paperwork at the front desk to
keep in touch with old and current customers. They were largely at the mercy of the
desires of vacationers to arrive, and on their own efforts and staff to be ready for
potential surges or long droughts of occupancy. Luckily, such inconvenience and old-
fashioned methods are long since passed, thanks to advances in information
technology.

Automation is one of the fastest-changing aspects of the hospitality industry. Advances

in the areas of reservation systems, guest services, food and beverage management,
hotel sales, food service catering, and hospitality accounting have placed computer
systems technology in virtually every area of hospitality operations.

Ever since the 1980s, ICTs have been changing the way in which business is conducted
in the hospitality and tourism industries. Progress in ICTs has transformed business
practices, strategies and industry structures dramatically. The development of computer
reservation systems (CRSs) in the 1970s, global distribution systems (GDSs) in the late
1980s, and the internet in the 1990s not only generated a new paradigm-shift, but also
changed operational practices in the industries.

Today, more than ever before, hospitality managers must understand the fundamental
features of computer systems and manage the information systems within their
organizations.

Chapter Five
FUNCTIONAL APPLICATION OF HOSPITALITY
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 INFORMATION SYSTEM
1.1 Introduction to Business Technology
Businesses, regardless of sector, are living, breathing and operating in an environment
where information technology is changing the landscape around them, transitioning from
the back room of an organization into the hands of customers, employees and society.
There is a continual shift towards a service economy, with services ever more tailored
and personalized for the customer.

As technology has advanced over the last 10 years, a number of phenomena have
emerged that, when combined, have rapidly and radically transformed the ability of
businesses to construct customer services and products. Most importantly, the speed at
which innovation and incremental improvement can occur has also increased.

Definition of business technology

Business technology is a strategy for organizing and coordinating technology
management across the entire enterprise. It is a set of management practices, tools,
organizational structures and technology governance designed to ensure that the use of
technology is optimized across the enterprise with the overarching aim of satisfying
customer needs and expectations. Most businesses understand that they need to
challenge not only their competitors but also themselves in order to constantly improve
their customers' view and their ability to meet market demand.

When information technology was introduced to businesses over 30 years ago, it was
such a specialized topic that organizations created new departments with the remit and
responsibility for managing it. This resulted in the birth of the IT department, which was
seen by many as a pure support function and separate from the business.

Large amounts of effort have been spent since in trying to “contain” information
technology, ensuring that it is under the watchful eye of IT teams and that spend is
controlled. Of course, cost control is still a major required discipline, however digital has
unleashed technology and made it widely available, meaning it can no longer be
efficiently controlled by a single department.

Today’s technology function should work alongside all business areas to make their
skills available, whilst embracing those disciplines of customer focus, revenue
generation, and product development from other parts of the organization. This is not a
one-way conversation – marketing teams, for example, need to embrace the technology
management skills available to them to prevent runaway cost or implementation of
solutions that cannot interact with others across the internal ecosystem.

Many organizations have found themselves in limbo – somewhere between the digital
revolution and the status quo. They lack the capability to integrate incremental
improvement with disruptive digital innovation. To frame the challenge, business
technology introduces three core elements as illustrated in the picture below.

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 Figure 1.  Business Technology mindset model with three dimensions

Business capabilities and transformation

Emerging technologies are accelerating digital transformation, requiring business and
process development and a forward-looking governance. Business capabilities are the
sum of all processes and assets (systems and data) within the company, and comprise
the entire business organization, including any supporting functions within the
organization. Business capabilities are the key for developing the business and for
utilizing technology in the best possible way. Transformation comprises the parts and
processes of an organization that are engaged in improving business capabilities.

Digital frontline
Digitalization provides new business opportunities and requires consistent design
thinking on how to face customers, partners and employees in a networked multi-
channel world.

The digital frontline can be defined as any digital means that connects the company to
the user and is visible to the user, whether the user is a customer or a partner, or
whether the customer is internal or external.

Customer experience is at the heart of all digital frontline activities. Digital frontline is a
crucial area as it is the key area where the emerging business focus and growth
possibilities reside and where digital transformation happens through speed and agility.
Digital apps and web, as well as digital enterprises, enable the creation of new business
possibilities around customer experience, digital business and internet of things (IoT)
services.

Technology backbone
Traditional information technology management function (or IT) needs to become the
technology backbone that is responsible for development, and management of digital
and administrative solutions in a professional way. The technology backbone consists of
all information technology systems and processes that support the running of the
businesses operations, through the management of end-user services, plus enterprise
and business applications. It is where the essential business asset of a company
resides, and the purpose is to provide operational efficiency to the company through

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reliability, security and scalability.

Technology domains
Technology exists within many areas of the enterprise today. Often this technology is
outside of the influence of the traditional CIO and technology function. Every business is
different, and the type, location and amount of technology will rightly vary within each
area.

We define four distinct categories of technology: customer interfacing technology,

product technology, operational technology and business process technology.

Each of the four technology areas contain a wide variety of technologies, some
overlapping and some discrete. These are underpinned by infrastructure, data and

security.

Figure 2 Business Technology domains

Customer interfacing technology

The key characteristic of this technology type is interaction with the customer and the
technology centers around the customer experience. Customer interfacing technology is
all about the digitization of customer facing processes and services. Thus, it is in this
area where digital initiatives have an obvious and direct impact. Improving or
implementing these technologies drives a need to review end to end customer journeys.
When these solutions are developed, the business should ensure that their strategy is
not constrained to digital channels only. This constraint can be acceptable as a short-
term strategy. However, as previously discussed, digitalization is a much broader topic
and needs to be viewed as a broader strategy.

Product technology
This area consists of information technology embedded within the products the company
sells: technology that can be operated, monitored and/or interfaced remotely and can
interact with its environment 24/7. Thus, only the technology component of the product

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that fulfils these criteria can be seen as product technology, not necessarily the whole
product itself. For example, a lawn mower itself does not fulfil these criteria, but in a
robot lawnmower the embedded technology enabling its remote control and operation
fits the product technology definition.

Whilst customer interfacing technology provides the gateway for interaction with your
customers, it is often the technology within your product, whether it be a banking
product, electronic goods or professional services to name a few, that provides the real
value to customers. Technology innovations within this area are fast moving with new
rich sources of data and new techniques such as rapid prototyping, agile development
and new business models such as the “as-a-Service” model often used.

Operational technology
Operational technology contains all information systems used for managing, operating
and monitoring automation systems and other “shop floor” systems. Information
technology is expanding into this area even more than before. Many previously low-tech
or even manual operations today start with an information technology enabled check,
such as the servicing of a car. What used to be a purely manual operation is now
assisted by operational technology such as a laser assisted wheel alignment machine as
an example. 

Business process technology

Business Process Technology consists of information technology and solutions that are
used for managing business processes and executing business transactions, i.e.
systems that support day-to-day business operations. Classic examples of business
process technology are the enterprise resource planning (ERP) and customer
relationship management (CRM) systems used in organizations.

The future of business is technology

In today’s business world, information technology penetrates organizations from an
increasing number of angles. This trend will continue to accelerate, a traditional
technology department can no longer act as the only gatekeeper to an organizations’
technology.

In many organizations, the cooperation between the business and technology functions
is not optimal and would enable greater business outcomes. To overcome this, business
leaders must ensure that a culture of cooperation is embedded within the organization
so that technology management skills are applied in equal measure across all business
units.

This shifting landscape demands that your business is organized in a way that allows
you to maximize business potential, reacting rapidly to opportunities, and driving
continuous improvement and change.

Transforming from traditional, soloed business and technology functions into business
technology organization also presents a fantastic opportunity to leverage technology
management practices directly in the business teams where it can have the largest
impact. Business technology will ensure that businesses are able to derive real value
from technology, and ultimately, to better serve their customers

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1.2 Introduction to Hospitality Information system

Hospitality Information Systems (HIS) Hospitality information systems are a collection of

components that work together to provide information help in the operation and
management of a hospitality organization. Information technology systems in use in the
hospitality industry are primarily computers and 2 HCM 432 MODULE 1 telephone
systems. However, some software applications and hardware are in use in various
sectors of the industry.

In the hospitality industry, computers and telephones are used to provide guest services,
to make business more effective, and to perform decision-making functions for
managers. The computers, communication equipment and other technology in use in
information systems are called information technology (IT).

Computer information systems give hospitality managers an advantage because they

reduce the chance of error. These systems allow the managers to control an entire
property at the touch of a button. For example, computerized systems can now help
monitor work as it is going on thereby warning against obvious or likely errors before
such errors cascade and create additional errors elsewhere. In housekeeping
operations, housekeepers can be notified in advance of guests‘ requests before the
guests check into the hotel. Information is kept on guests‘ likes and dislikes. This helps
create a comfortable and predictable environment for guests and at the same time, it
saves time and provides efficiency in the housekeeping department.

Hospitality information systems are also mechanisms that deliver processed data to
management to facilitate the decision-making process. Much of the information needed
by management exists within the enterprise. Some are required to be maintained by law,
and other data exists as a result of business transactions entered into by the enterprise.
Some information exists within individuals and is not available without involving that
person in the decision-making process. As the operation grows, hospitality information
systems become more structured, requiring additional data production, sorting and
processing. With the increased speed and capabilities of microcomputers, and the
reduced cost of hardware and software, hospitality information systems are available to
assist management in many ways.

Centralized purchasing management systems are available to create purchase orders

that can be immediately communicated to vendors. This system works best for multi-unit
organizations. There are also products available to track inventory and to compute
theoretical sales. These systems can automatically route requisitions and delivery
worksheets. Systems for recording food and beverage sales continue to improve,
offering not only sales tracking data but internal control features, such as remote printers
at production stations giving authorization to release inventory. Orders can be taken
tableside by hand-held wands or touch screens, eliminating the need for servers to write
down guest selections. In the area of telecommunications, hospitality information
systems have proven to help enterprises generate additional revenue through facsimile
3 HCM 432 HOSPITALITY INFORMATION SYSTEMS (fax) machines, modem
connections, conference calling and videoconferencing. As technology increases, this
continues to be a growth area for the industry.

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Hospitality information systems provide entertainment to guestrooms through on demand
movies, video games and videotape rentals, and premium channel selections. Security,
a major concern in tourism, is another area where the systems have improved delivery of
guest service through key cards, security cameras and motion detectors. Energy costs
are also better managed with hospitality information systems by controlling heating and
air conditioning. Front office and back office accounting procedures have been greatly
enhanced by hospitality information systems. The most visible to the guest is the
property management system which helps the check-in and check-out process and
stores data on each guest. This, coupled with other sales software packages, allows
management to maximize revenue through yield management.

1.4 Types of Hospitality Industry Technology System

1.4.1 Hotel Reservation Systems

Hotel reservation systems, commonly known as a central reservation system (CRS) are
a computerized system that stores and distributes information of a hotel, resort, or other
lodging facilities.

A central reservation system is a tool to reach the global distribution systems as well as
internet distribution systems from one single system, namely a central reservation
system. A CRS is mainly assistance for hoteliers to manage all of their online marketing
and sales, where they can upload their rates and availabilities to be seen by all sales
channels that are using a CRS. Sales channels may include conventional travel
agencies as well as online travel agencies. An hotelier using a central reservation
system eases his/her tasks for online distribution, because a CRS does everything to
distribute hotel information to the sales channels instead of the hotelier.

Information commonly stored in a CRS are:

• room types
• rate plans architecture
• room Rates and conditions (guarantee, deposit, customized cancellation rules,
minimum length of stay, maximum length of stay, closed to arrival, arrival not allowed,
departure not allowed)
• room inventories • generic hotel information (address, phone number, fax number) •
distribution content (descriptions, amenities, pictures, videos, local attractions) are stored
in the CRS or in a content management system
• reservation information
• geocode information.
• nearby IATA cities and airports.

Roles of Reservation Systems:

• selling individual reservations
• selling group reservations
• displaying room availability and guest lists
• tracking advance deposits
• tracking travel agent bookings and commissions
• generating confirmation slips and various reservation reports.

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Front Office Applications

A. Front Office System

Figure. 3 Front Office System

B. Reservation Module A reservation module enables a hotel to rapidly process room

requests and generate timely and accurate rooms, revenue, and forecasting reports.
Reservations received at a central reservations site can be processed, confirmed, and
communicated to the destination property before the receptionists finish talking with the
caller on the telephone. When the destination property uses a PMS, the reservation
module receives data directly from the central (or global) reservation system, and in-
house reservation records, files, and revenue forecasts are immediately updated.

Functions of Reservation Module

1. Reservation Inquiry

This inquiry typically collects the following data:

• date of arrival
• type and number of rooms requested
• number of room nights
• room rate code (standard, special, package, etc.)
• number of persons in the party.

The receptionist enters the data through a computer terminal according to rapidly
defined inquiry procedures. Once the inquiry is matched with rooms availability data, the
PMS assigns and blocks a room, thus removing it from the availability file.

2. Determination of Availability
Once entered, the reservation inquiry is compared to rooms‘ availability data according
to a predetermined system algorithm. The algorithm is a computer-based formula
designed to sell rooms in a specified pattern (by zone, floor, block, etc).

Processing a reservation request may result in one of several system generated

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responses appearing on the display screen:
• acceptance or rejection of the reservation request
• suggestion of alternative room types or rate
• suggestion of alternative hotel properties.

3. Creation of the Reservation

Record Once the reservation request has been processed and the room blocked, the
system requires that the receptionist completes the reservation record by collecting and
entering necessary data, such as:
• guest‘s personal data (name, address, telephone number)
• time of arrival
• reservation classification (confirmed, guaranteed )
• confirmation number
• caller data (agency or secretary)
• special requirements.

4. Confirmation of the Reservation

PMS can automatically generate a letter of confirmation on the day a reservation request
is processed. Information can be retrieved from the reservation record and printed on a
specially designed hotel form.

5. Maintenance of the Reservation Record

Reservation records are stored in an electronic file and commonly segmented by date of
arrival:
• group name; and
• guest name.

File organization and the method of file retrieval are critical to an effective reservation
module because callers frequently update, alter, cancel, or confirm their reservation. For
example, if a caller requests a cancellation, the receptionist must be able to quickly
access the correct reservation record, verify its contents, and process the cancellation.

Reservation record data can be:

• printed onto pre-registration cards to facilitate faster check-in procedures
• used as the basis for printing in-house guest folio and guest information lists
• transferred to commission agent files for later processing
• formatted for eventual inclusion in a guest history file.

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Reservation Details

Figure. 4 Reservation Details

6. Generation of Reports Similar to many computer applications, the number and type
of reports available through a reservation module are functions of the user‘s Needs,
software capability, and database contents. A computer-generated room‘s availability
report lists, by room type, the number of rooms available each day.

Rooms Management Module

Rooms‘ management module maintains up-to-date information on the status of rooms,

assists in the assignment of rooms during registration, and helps coordinate many guest
services. Rooms‘ management modules perform the following functions:
• identify current room status
• assist in assigning rooms to guests at check-in
• provide in-house guest information
• organize housekeeping activities
• provide supplementary services
• generate useful reports for management.

Rooms‘ management module alerts front desk employees of the status of each room,
just as room racks do in non-automated operations. A front desk employee simply enters
the room‘s number, and the current status of the room is displayed immediately on the
terminal‘s screen.

Once a room becomes clean and ready for occupancy, housekeeping staff change the
room‘s status through a terminal in their work area, and the information is immediately
communicated to terminals at the front desk. The hotel property management system
(PMS) routes data through the rooms‘ management module and, thereby, helps
coordinate the sale of rooms.

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Computer-based hotel technology is capable of instantly updating the housekeeping
status of rooms, which enables front desk employees to make quick and accurate room
assignments to guests at the time of check-in.

Guest Account Module

Guest accounting module processes and monitors financial transactions that occur
between guests and the hotel. When remote electronic cash registers (ECR) or POS,
situated at various revenue centers throughout the hotel are interfaced with a guest
accounting module, guest charges are communicated to the front desk and automatically
posted to the appropriate electronic guest folio.

1.4.2 Global Distribution Systems

A GDS is a worldwide conduit between travel bookers and suppliers, such as hotels and
other accommodation providers. It communicates live product, price and availability data
to travel agents and online booking engines, and allows for automated transactions.

The GDS is often used to tap into the corporate travel market because it has the ability
to present hotels, flights, and car rentals in one simple interface which is convenient.
Many companies organizing trips for their staff will use the GDS as their preferred
booking method.

The history of global distribution systems dates back to the 1960s when a more
sophisticated method was needed to keep track of flight schedules, availability, and
prices.

As early as the 1970s GDSs were some of the first companies in the world to facilitate
business to business (B2B) electronic commerce (now more commonly known as
ecommerce). Airlines realized that by automating the reservation process for travel
agents, they could make the travel agents more productive and essentially turn them into
an extension of the airline’s salesforce.

Four of the major legacy GDSs are:

1. Amadeus 2. Galileo 3. Sabre 4.Worldspan

Hoteliers are always looking at ways to increase their reach to attract more customers,
increase revenue, and make a profit. It seems a global distribution system (GDS) is a
valuable channel to achieve this. A GDS passes on hotel inventory and rates to travel
agents and travel sites that request it and also accepts reservations.

How does the GDS work in travel?

The tangled web of databases has become even more of a labyrinth following the
explosion of online travel agencies (OTAs) like Booking.com, Expedia and Wotif. Hotels
and other travel entities can use technology solutions to capitalize on this trend, tapping
into all GDSs, including the likes of Amadeus, Galileo, Sabre, and Worldspan by Travel
port.

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Live rates and availability are sent from a hotel’s property management system (PMS)
directly to the GDS and online booking websites via a channel manager. As soon as a
reservation is made on the GDS or an online booking website, the channel manager
instantly reduces inventory across all channels, including the hotel’s own website, and
automatically delivers the reservation details back into the PMS or central reservation
system (CRS). Each GDS has its own set of connection fees and requirements to sign up
if you do this independently, rather than through a technology solution.

What are the major GDS systems?

There are several major global distribution systems that house and process the majority of
data from hotels, airlines, and other distributors. These include Amadeus, Sabre, Galileo,
Worldspan, Apollo, and Pegasus.

However there are many technology providers that help hotels tap into these GDSs and
by extension the thousands of travel agents and travelers across the world.

Amadeus GDS
Amadeus has been operating for over 30 years, building critical solutions to help airlines,
hotels, railways, travel agencies, tour operators and more to run their business and
improve the travel experience.
Amadeus has the biggest global footprint of any of the GDSs, with a potential reach to
millions of guests. The company operates in over 190 markets and employs over 17,000
people.

Sabre GDS
Sabre is a leading technology and data-driven solutions provider helping airlines, hotels
and travel agencies grow their businesses and transform the traveler experience.
Sabre is seen as a pioneer for online travel agencies, corporate booking tools, revenue
management, and web and mobile itinerary tools, to name a few.
Sabre Travel Network is its global business-to-business travel marketplace and consists
primarily of the GDS and a broad set of solutions that integrate with the GDS.
This marketplace is used by travel suppliers including 400 airlines, 175,000 hotels, 200
tour operators, 50 rail carriers, 40 car rental outlets and 17 cruise lines.

Galileo GDS
Galileo traces its roots back to 1971 when United Airlines created its first computerized
central reservation system. Due to the high market penetration of the Sabre and Apollo
systems, owned by American Airlines and United Airlines, respectively, Worldspan and
Galileo were created by other airline groups in an attempt to gain market share in the
computer reservation system market.
The Galileo system was moved from Denver, Colorado, to the Worldspan data center in
Atlanta, Georgia, in 2008, following the merger of Travelport and Worldspan (although
they now share the same data centre, they continue to be run as separate systems).

Worldspan GDS
Worldspan is a Travelport platform, and is the technology leader in web-based travel
ecommerce, offering solutions for all facets of travel business online. As a leading GDS,

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Worldspan provides travel distribution, technologies and services for thousands of travel
companies worldwide, including travel agencies, corporations, travel suppliers and travel
websites.
Worldspan transforms global travel distribution and transaction processing with industry-
first fares, pricing, shopping and booking technologies, and a portfolio of interactive
shopping tools that enable travel companies to reduce costs, increase productivity and
build revenues.

Apollo GDS
As a leading GDS, Apollo provides travel distribution, technologies and services for
thousands of travel companies worldwide, including travel agencies, corporations, travel
suppliers and travel web sites.
The Apollo reservation system was used by United Airlines until 2012, when it switched
to SHARES, a system used by its former Continental Airlines subsidiary. Apollo is still
used by Galileo International (now part of Travelport GDS) travel agency customers in
the United States, Canada, Mexico, and Japan.

Abacus GDS
Abacus was founded in 1988 and became a leading provider of travel solutions and
services in the Asia Pacific region.
The company is headquartered in Singapore and owned by Sabre Holdings, after Sabre
acquired a full stake off 11 Asian airlines who were holding a majority share.
Abacus serves more than 100,000 travel agents across the Asia-Pacific region’s 59
markets and has both global and uniquely local relationships with airlines and hotels,
including the leading portfolio of low-cost content and Chinese airline content.

Pegasus GDS
Pegasus strives to remove friction and create simplicity amidst an otherwise complicated
environment. Pegasus Solutions pioneered the hospitality reservations industry.
The company is a market leader in the electronic processing, management, distribution,
sales and marketing of hotel inventory, rates and content across different sales channels
to include direct bookings via hotels’ branded websites, voice, travel agents (GDS),
OTAs and metasearch partners.

How to access leading GDSs with GDS software

There are a number of technology providers that enable a single point of entry to the
GDS, allowing your hotel access to hundreds of thousands of travel agents across the
globe.

The best systems will connect your hotel directly to the world’s most prominent GDSs –
like the ones mentioned above – so you don’t have to worry about signing up to each
one individually. The connection will also come with complete integration with the most
popular central reservation systems and property management systems to eliminate
manual data entry via your channel manager, saving you time and simplifying the
processes. Once signed up you should only have to pay a transaction fee for confirmed
bookings.

Using a software provider to tap into the GDS saves a lot of money and time. In one fell
swoop you can access all the retail and traditional travel agents you want:

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● Your rooms are sold through all channels connected through the GDS e.g. traditional
travel agents.

● Whoever sells your room earns a standard commission.

● Your guest pays you, then you pay your agent.

This is the default model used upon connecting with a GDS.

Is the GDS suited to your hotel?

Before you investigate the true benefits of the GDS, you first need to know it’s relevant
to you and a good fit for your hotel.

There are a few specifications which will greatly aid successful GDS connectivity:
● Being centrally located

● Being located close to an airport

● Room capacity of more than 20 rooms

● Lodgings that are set up for corporate markets and not affected by seasons

These requirements are not essential but will be beneficial. It’s also important to choose
an established provider and make sure you ask for training and support.

Benefits of connecting your hotel to the GDS

Essentially, the GDS can increase hotel bookings and revenue by placing hotels on
more ‘supermarket shelves’ globally. This approach is particularly effective at capturing
international corporate travelers. You can gain lucrative international corporate business,
particularly if you’re near a major airport gateway or close to government or commercial
enterprises.

But there are many reasons why a hotel might need a GDS solution including:

● The number of bookings generated through a GDS generally outpaces that of

direct bookings. While direct bookings are rising, and they do represent a
significant amount of revenue for hotel operators, there are still more bookings
being generated through the GDS than through hotel websites.

● Hotels generate more revenue through a GDS because it places the hotel’s
information, availability and rates in prominent locations where it is easy for travel
agents to find. It helps hotels maximize their bookings during any given time
period while also reaching powerful travel markets that are willing to spend
money in order to book the best room available.

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 ● A lot of travel agents who specialize in corporate travel use a GDS to get their
clients booked quickly and efficiently.

● The GDS can help hotel managers uncover new market segments to promote
their products to. In many cases, hotel operators discover through the GDS that
there are traveler market segments interested in their products that they couldn’t
previously reach.

● More travel agents are relying on the GDS to find the best places for their clients
to stay. Every year, more agents are realizing that this is the best way to easily
connect with hotel properties from around the world. Through the GDS, the
agents have access to live rates and availability, and they can easily book rooms
for their clients.

● When you complete your hotel description comprehensively, the GDS improves
search positioning and displays your brand messaging during the search and
booking process, which means travel agents are more easily able to source your
hotel for their clients.

1.4.3 Hotel Property Management Systems

In the hospitality industry a property management system also known as a PMS is a

comprehensive software application used to automate hotel functions like guest
bookings, online reservations, point of sale, telephone, accounts receivable, sales and
marketing, banquets, food and beverage costing, materials management, human
resources and payroll, maintenance management, quality management 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.

Property Management systems integrate all of the information needed to manage:

• front office
• back office; and
• office automation.

Property management systems also provide data that marketing can use for various
activities such as:

Revenue maximization, better rooms‘ inventory control, more accurate management of

room blocks, and yield management capabilities.

Automation helps hotels provide better guest service and related recognition
programmed. Indeed, guests can count on same room, same seat, and same car
preference as a result of guest history and preference systems. By automation, guests
will experience automated check-in and check-out.

Similar technology has provided automated airline ticketing and car rentals.

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A variety of stand-alone applications may also be interfaced with an installed PMS such
as: point-of-sale, call accounting, electronic locking, etc.

Computerized back office applications typically included in back office PMS packages
contain modules covering accounting and internal-control function.
Hotel Property Management System Interfaces;

Figure 5. Hotel Property Management System Interfaces

Point-of-Sale Systems When the main processor of a POS system interfaces with a
property management system (PMS), data can be directly transferred from the POS
system to various front office and back offices POS place at:
• restaurants
• bar and Lounge areas
• room service stations
• gift shops
• pool areas
• pro shops

Telephone Call Accounting Systems Telephone Call Accounting Systems (CAS)

tracks guest room phone charges. It thus enables hotel to take control over local and
long-distance 39 HCM 432 HOSPITALITY INFORMATION SYSTEMS telephone
services and to apply a markup to switchboard operations. A call accounting system can
place and price out-going calls. When a CAS is interfaced with a front office guest
accounting module, telephone charges can immediately be posted to the proper folios.

Electronic Locking Systems Often these systems interface with a front office computer
system, thereby enabling management to exercise important key control measures. One
kind of electronic locking system functions through a computer terminal at the front desk.
The terminal selects a code that will permit entry and then produces a card for the guest
to use. Once a code is entered and a card produced, all previous codes are canceled,
and cards issued to previous guests no longer function.

Energy Management Systems Interfacing energy management systems with a hotel

computer system links guest room energy controls with the front office rooms‘
management package. This technology is used to extend guest in-room comfort.
Passive infrared motion sensors and door switches automatically switch off lights and air
conditioning when a guest is out of the room thus reducing energy consumption.

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An energy management system monitors guest room temperatures by computer. This
may lead to significant reductions in energy consumption and lower energy costs.

Auxiliary Guest Service Devices Automation has simplified many auxiliary guest
services such as the placement of wake-up calls and voice messaging for guests. An
automated wake-up system permits front desk employees to input a guest‘s room
number and request wake-up time. At the specified time, the system automatically rings
the room and calls back at predetermined intervals until the guest answers the phone.

Electronic message-waiting systems are designed to let a guest know that a message is
waiting at the front desk.
• Traditional message-waiting device is capable of flashing a light on a telephone or
television in the guest‘s room.
• Now, they actually display messages on the television screen.

Functions of Property Management System

A good property management system must be able to provide six basic functions which
include:

A. Enable guests to make reservations

Figure 6. Use of PMS in Guest Room Reservation

B. Enable Guests to Check-in/Register when they arrive and Check-out/Pay When

They Leave

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• at front desk
• remotely
• personal Digital Assistants
• remote terminal

C. Enable Staff to Maintain Guest Facilities

Figure 7. Shows the Current Status of Guests

• room type
• status
• occupant
D. Account for Guests’ Financial Transactions
• credit card information
• address information • business
• home
• room rate
• room charges
• night audit
• collects and posts room/guest data.

E. Track Guests’ Activities for Use in Future Sales Efforts Information relevant and
beneficial to future sales efforts Accessed by:

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• Central Reservation System (CRS)
• Customer Relationship Management (CRM).
CRM is used to collect and maintain data about sales contacts. It is very comprehensive
and holds such data as: names, addresses, birthdates, anniversaries, business, and
other personal information.

F. Interface with other systems

• Global Distribution System (GDS)
• Central Reservation System (CRS) Must integrate seamlessly even if from different
vendors.
• Sales and Catering Applications
• POS (Food and Beverage)
• Retail Points • HVAC or EMS Systems
• In-Room Amenities • Messaging
• Security • Call Accounting System Seamlessly to avoid duplicate data and mistakes.

REFERENCES:

Manzoor, Engr. Dr. Amir. (2017). Information Technology in Business Second Edition.

Additional Sources :
1. Excerpted from ‘Introduction to business technology’
https://www.managebt.org/book/introduction/introduction-to-business-technology/
2. Excerpted from ‘Default Files’
https://www.nou.edu.ng/sites/default/files/2019-07/HCM432.pdf
3. Excerpted from ‘Global Distribution system’ https://www.siteminder.com/r/global-
distribution-system/
4. Excerpted from http://researchersworld.com/ijms/vol5/issue3_3/Paper_06.pdf

ACTIVITY:

Make a summary on how does this topic helps the hotel or hospitality industry by
using all the software by means of all business technology. (2-3 paragraphs).

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