Hospitality Industry Systems Defined

Published Date: 02 Nov 2017

Hotel Industry

While hotels have been in existence since ancient times, the modern hotel traces back to the advent of railroad travel. Rail travel brought with it many more business people, initially in the form of traveling salespeople. These hotels were, for the most part, all independently owned and operated. Since these establishments were relatively small, and supplies were all obtained locally, there was no great need for a formal information system. In the 19th century, with the advent of pleasure travel, the resort hotel was born.

Chain hotels became prevalent in the decades following World War II. With the advent of chain hotels, travellers came to expect a certain level of consistency within a Hotel chain’s properties. As hotels migrated from independently owned and operated

Establishments to parts of a larger corporation, the need for Information Systems grew.

Information Systems would be needed for increased efficiencies in, among other areas,

Purchasing, sales, and reservations. (Hotel, n.d., hotel, 2007, Hilton, Conrad, 2007, and Hilton Hotel, n.d.)

Information Technology in the hospitality industry

Traditionally, hotels were largely dependent on cards and documents at the reception to keep in touch with old customers and current. They were largely at the mercy of the desires of vacationers to arrive, and their efforts and staff to be ready for potential surges or long droughts employment. Fortunately, these methods are old-fashioned and discomfort for some time past, thanks to advances in information technology.

The first area in which information technology has become important was with reference to billing. Old-fashioned paper records were time consuming and inefficient and it was able to quickly tell a hotel owner what the situation of their hotel was. Fortunately, advances in modern record keeping allow for a hotel to keep track of what they have on hand, how much of it they have, and how much it costs. Accounting is complicated, but the advanced accounting software, especially tailored to the specific needs of the hospitality industry, helping to bring the hotel owners to make intelligent decisions. Services and products that are no longer used can be quickly cut to save money, while those who show demand can be increased in quantity or modified so as to reduce the heavy usage.

Most hotels are familiar with booking rooms and reservations over the phone, but information technology has expanded far beyond. Hotels can now work with several travel agencies and online booking services to have their rooms booked online, without the need to hire expensive staff. This also allows a hotel to advertise their open rooms and special offers directly to the people who would be most likely to purchase them, instead of wasting a lot of money on advertising so blurry. High quality information technology thus allows for better organization and management of the reservations, in order to allow a hotel to maximize better jobs, and to know in advance when large groups or lean times are approaching. This allows a hotel manager to make plans regarding temporary staff, good times to renovate or expand, or other concerns, because he / she can determine the status of their hotel at the moment and for the next few months with just a few clicks on your computer.

Advances in information technology extend well beyond booking, however. Internet is essential for tourists who wish to contact their loved ones, and for business travellers to get in touch with the office. Therefore, wireless internet service has become a very common and very useful for hotels provide. Many businessmen mentality also require a service hotels offer internet so that they can continue to work while on the road. Fortunately, these services are not easy to predict, as all that is required is a wireless router and other devices to ensure the entire hotel is filled with the network. Modern advances in wireless internet also allow wireless internet access available to hotel guests use to connect to the network the same hotel. Security cameras, locks, and other equipment essential to the safety and security structure can be connected in the network, so that staff are alerted whenever a door is left open, a fire alarm goes off or suspicious activity occurs. Even if guests are totally unaware, this type of greater safety and security keeps them safe, and in the event of a problem that almost certainly appreciate the benefits of such a system.

As advanced as it is, the information technology in the hospitality industry is still going forward. Intelligent booking systems enable customers quickly and efficiently, along with the ability to predict who would use the hotel again and inform them via e-mail or text messages when they get good deals. Hotels with room service or other services can offer their menus online, allowing for the hotfixes and high quality photographs and other ways to allow guests to see and order services before you even arrive. There is also progress in terms of wages and inventory which make information technology a valuable asset for saving money and maximizing profits. The uniqueness of the hospitality industry makes it an ideal place for new and emerging technologies, and far-sighted owners and managers are always looking for intelligent devices and software to invest in.

Hospitality Industry Systems (HIS) Defined

It is the collection of components that work together to provide information that help in the operations and management of a hospitality organization.

Components of HIT (Hospitality Industry Technology)

Sales, reservations, rooms and revenue management

F&B applications, inventory control, purchasing, receiving storage

Email, intranet, extranet, voicemail, videoconferencing

Human resource applications

PCs and computer networks

Accounting

POS

catering management

Components of HIT

.

SYSTEMS

Work group information systems

LAN

WAN

Email

Organization information system

Global/international information system

HOSPITALITY INFORMATION PROCESSING

Data

Information

Information sharing

Electronic data exchange

PROPERTY MANAGEMENT SYSTEM

Hub of information processing

Rooms management module

Guest accounting module

Ving cards system

ENERGY MANAGEMENT SYSTEM

Automatic lighting control

Room occupancy status reporting

Minibar access reporting

Smoke detector alarm reporting

Central electronic lock control

Guest control amenities

CALL ACCOUNTING SYSTEMS

Track guest phone charges

Available software application

Coordination with PBX and PMS

Discounts during off peak hours

GUEST RESERVATION SYSTEM

Global distribution systems

Affiliate

Non-affiliate

Springer Miller Systems.

Central reservation systems (CRS)

FRONT OF HOUSE SYSTEMS IN RESTAURANT

Point of Sale (POS)

Kitchen display systems

Guest services solutions

POS SYSTEM

Central processing unit (CPU) interfacing with individual units

Acts as a cash register

Guest transactions

Sales and guest checks

MICROS

Contingents

Size and type of operation

Security issues

Guest identification verification

Ease of training for manager and employees

Compatible with financial applications

Uses Microsoft Windows NT and SQL

Scalable over time

BACK OF THE HOUSE

Inventory and food costing

Labor management

Financial reporting

BEVERAGE MANAGEMENT

Scanbar

On-going, real-time inventory control

Tamper-proof reliability interfaced the major POS systems

Bar coded label

Wine module

Keeps control of all wines by region, variety or vintage

Bar coded

AZ Bar America

CURRENT TRENDS

Online travel purchasing is rising dramatically

Online reservation sites provide a place for independent restaurants to advertise and book reservations

Customer relationship management

Use of PDA’s

Hotels utilizing wireless connections

By the literature review, it is found out that there is no widely accepted guidelines and

no common ITC theory for the development, usage and evaluation of information

technologies particular to hospitality industry. Decisions regarding information

systems or information technology investments are usually made by the managers by

looking at studies or theories which are developed specific to some other disciplines

(Silva, 2001) .

Since ICT investments are known as in the long run benefits recognized type

investments, most of its results may not be measured in short run. ICT investments

are also not directly specified by any particular department since it is utilized by the

whole organization (David, Grabski & Kasavana, 1996). Since technology is used

along the whole production - value chain of an hotel organization, it is difficult to

measure direct affects of the IT on the productivity (Sofield, 1998). There are lots of

independent and dependent variables affecting the output of IT. Therefore, it is a

difficult and complex job to study on determining the affects of ICT on the

organizational performance (Hildebrand, 1997; Loveman, 1991; Bakos, 1987;

Chakravarthy, 1986; King, 1983; Anderson, 1984).

ICT investments are seen in general expensive investments (Connolly, 1999). In this

study, it is tried to determine in which degree hospitality firms utilize this expensive

ICT investments. It is supposed that the results of this research may help to the

shareholders and practitioners in hospitality firms to make more rational investment

decisions or more precise re-designating the existent processes.

Hospitality information system

Hospitality information systems are 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 is 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.

Centralised purchasing management systems are available to create purchase orders that can be immediately communicated to vendors. This system works best for multi-unit organisations. 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 authorisation 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 machines, modem connections, conference calling and videoconferencing. As technology increases, this continues to be a growth area for the industry. Hospitality information systems provide entertainment to guestrooms through on demand movies, video game 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 maximise revenue through yield management.

Nevertheless, contemporary hospitality industry, as well as tourism, is highly dependent

on successful information management (Buhalis and Costa 2006). There are three

fundamental dimension of IT’s influence to the hospitality industry (DiPietro & Wang,

2010): firstly, IT is used for business process streamlining/automation and cost reduction.

After ensuring that individual processes are performed in the most effective way, additional benefits are obtained from improved communication within a hotel (or a hospitality enterprise). Lastly, marketing and customer relationships are improved by means of IT. Namely, majority of tourist products/services are sold before it is consumed, which emphasizes the quality and distribution of hotel presentations and the distribution of such information to the right audience(s). IT mediates and fosters these processes, which is the source of its influence on the experience and purchasing behaviour of tourists (Chiang and Jang, 2006; Law and Hsu, 2006). In addition, consumers are increasingly aware of the opportunities offered by the Internet for collecting tourist-related information, as well as for communicating and engaging on-line customers (Buhalis and Law, 2008, Xiang, 2011). Therefore, website design (Gregory et al., 2005, Gruter et al, 2010) is proving to be essential for the success of hospitality enterprises. The industry is also taking advantage of social software (Web 2.0) which enables networking with existing and potential customers (O’Reilly, 2005).

There are, also, effects of IT/IS application at the level of the entire tourist/hospitality industry (Connolly, 2005; Singh and Kasavana, 2005). Some applications, such as Computer

Reservation Systems (CRS), even have a strategic impact with far-reaching implications (Buhalis and Law, 2008). Specifically, usage of such systems can be described as providing new opportunities, they also represent a potential threat to the existing profit levels, since online distribution channels might also erode pricing levels, due to their extensive bargaining power (DiPietro & Wang, op. cit.).

However, there are still significant research questions to be addressed in the empirical analysis of the hospitality industry. Although there may be specific characteristics of the industry itself, it is even more important to determine which specific aspects of IS influence the hotel performance.

There are, also, effects of IT/IS application at the level of the entire tourist/hospitality industry (Connolly, 2005; Singh and Kasavana, 2005). Some applications, such as Computer

Reservation Systems (CRS), even have a strategic impact with far-reaching implications

(Buhalis and Law, 2008). Specifically, usage of such systems can be described as providing new opportunities, they also represent a potential threat to the existing profit levels, since online distribution channels might also erode pricing levels, due to their extensive bargaining power (DiPietro & Wang, op. cit.).

Why do Hotels need IT?

As noted in the History section of this study, until fairly recently, hotels were very

much a local business. Hotels offered very few amenities and travelers did not expect

much beyond a room with a bed. In the early 1900’s, the chain hotel business began to

take form and later coast-to-coast hotel chains came into existence. This all occurred

along with increased business and pleasure travel. With increased travel, and with the

hotel chain having business units spread over a larger geographic area, some form of

Information System (IS) became necessary. With increased business and improved

technology an Information Technology (IT) System became possible. IS and then IT

became necessary to have a consistent method of tracking and maintaining business

operations. Later, as customers expectations changed, IS/IT became necessary to ensure

consistency of meeting customer needs.

Ward and Peppard (2002), beginning on page 100, discuss three questions that

should be addressed before instituting an IT project. These questions, for our purposes,

can be stated as:

1. How can IT affect the services offered by the hotel industry?

2. How can IT affect the market for hotel services and customer behavior?

3. How can IT impact the economics of hotel operations?

History about movenpick

Set on 16 acres of landscaped gardens, the Movenpick Ambassador Hotel, Accra is ideally located for both business and leisure. The hotel is located close to government ministries, the National Theatre and the Accra International Conference Centre. After a busy day, relax in an urban style resort with the largest swimming pool in Ghana. A variety of entertainment venues include the all-day Sankofa Restaurant as well as one to one, Accra’s elegant cocktail bar.

QUESTIONAIRE

This study is aimed at finding impact of information systems on hospitality industry and is purely for academic purpose in partial fulfillment of award of Bachelor of Science in Hospitality and Tourism Management.

Any information given shall be treated in outmost confidentiality

√Please tick box as appropriate

DEMOGRAPHIC DATA

.Age: 25-30 31-35 36-40 41-45 46-50 51-55

Gender: Male Female

.Level of Education

Middle school leaving certificate JHS SHS HND Degree

Others please specify…………..

Department of employment

Front office Food Production Account

Food and beverage Housekeeping

Is Information systems important in increasing employee efficiency?

Not at all important very important

Does IT have an impact in increasing overall customer satisfaction?

Strongly agree slightly agree disagree

Does IT have impact in generating revenue for the hospitality industry?

Strongly agree slightly agree disagree

Is information system important in the smooth running of operations?

Not at all important very important

What type of software is used in your establishment?

……………………………………………………………..

How useful is it to the establishment?

Very useful slightly useful not useful

How reliable and effective is it?

Very reliable not reliable

How do information systems improve your internal communications?

Very effective not effective

Are there any challenges limiting the use of IS in your facility?

If any, how do you rectify them?

…………………………………………………………………………………………..

How do the information systems in your hotel help you in decision making?

Very useful slightly useful not useful

How can IT affect the services offered by the hotel?

Comment

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How can IT affect the market for hotel services and customer behavior?

Comment

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How can IT impact the economics of hotel operations?

Comment

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How does the software run through all the department of the hotel?

Comment

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