College Of Business and Accountancy

Department Of Hospitality and Tourism Management

MODULE 2

COURSE Applied Business Tools and Technologies with PMS ( HPC3)

DEVELOPER AND THEIR

BACKGROUND MS. EMMERY P. BALBAS
Faculty
[email protected]

COURSE DESCRIPTION This course identifies common tools, technology and techniques
used in the Tourism and Hospitality industry. It includes an overview
of the applications or systems composed of technical processes,
methods, software and hardware that have evolved and streamlined
certain functions in workplace. These applications and systems
include those used in (1) organization’s functions, (2) business –to-
business operations including operations with supplier and (3)
business-to consumer transactions. The goal is to expose students
to different applications so he can identify, learn, analyze and
understand available devices and solutions, from which they can
select he one/s that is most appropriate for the business function.
The student will learn to appreciate the impact of technological
innovations to the economy, the industry, the organization’s business
model and to specific functions/operations of the organization. This
will ensure that the students will also know the value of including
tools and technology in its business strategy.

(CHED CMO.62 Series of 2017 Page 54)

COURSE OUTLINE A. Overview of the Course
B. Review of Hospitality and Tourism Industry
C. Access and Use of Common Business Tools
D. Select and Use Common Business Tools and Technologies
E. Obtaining and Maintaining of Business Tools and
Technologies
F. Introduction to Business Technologies/ Information Systems
G. Hospitality Information Systems
H. Property Management Systems
 I. Front Office Systems and Software
J. Food and Beverage System and Software
CHAPTER # G.
TITLE Hospitality Information Systems

I. RATIONALE This module gives us an insight on the basics of hospitality

information system use by industry. It is one of the world’s most
emerging and changing industry. This industry gives us wide scope
of opportunities in terms of career, development and travel.

This module will demonstrate familiarity regarding hotel

management software for hotels. And identify the interface of the
soft wares for better understanding.

The sub topics for this module are as follows:

Hospitality Information Systems:

- Central Reservation System

- Global Distribution System
- Point of Sale System
- Energy Management System
- Call Accounting Systems

INSTRUCTION TO THE This module should be completed within 2 week.

USERS
If you set an average of 1.5 hour per meeting, you should be able to
complete the module comfortably by the end of the assigned week.
Try to do all the learning activities in this module . If you do not get a
particular exercise right in the first attempt, you should not get
discouraged but instead, go back and attempt it again. If you still do
not get it right after several attempts then you should seek help from
your friend, tutor or professor.

PRE-TEST At the start of this module, answer the following:

1. What is the difference between a PMS and a POS?
2. Which is more useful in the hospitality industry?
3. What is the importance information technology in the industry?

II. LEARNING After going through this module, you are expected to:
OBJECTIVES
◼ Identify the characteristics of information technology and
information systems in the hospitality industry
◼ Identify the different types of information systems
 ◼ Differentiate between information technology use in hotels and
restaurants
◼ Apply the importance of information systems to the hospitality
industry
◼ Relate hospitality industry technology to management, such
as property management systems

III. CONTENT
A. PREPARATOR
What is Hospitality Industry Systems (HIS) ?
Y
ACTIVITIES
• It is the collection of components that work together to
provide information help in the operations and management
of a hospitality organization.
• It helps to meet the demands for timely and accurate
information by customers.

The use of information technology in hospitality industry has grown

very fast over the past 10-20 years. The hospitality industry
revolutionized due to advancements in innovation and information
technology.

Many problems within the hospitality industry were solves as a result

of the IT revolution. It reduce costs, higher productivity and
efficiency, improves service quality, increased customer
satisfaction, better organizational integration and higher
profitability.

CHARACTERISTICS OF HOSPITALITY
INFORMATION SYSTEM (HIS)
• Hospitality is a diverse field which is service oriented.
• The characteristics of HIS are similar to the characteristics
of MIS. Some specific characteristics of HIS are:
- Product service MIX
- Two way communication
- Relationship Building
- Diversity in culture
- Labor intensive
 - Product is intangible and perishable
- Inseparable services
- Shift work
- Recreational services
- Patience and tolerance

COMPONENTS OF HIT

◼ 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

IT BASED
SYSTEM

Distribution Hotel Facing Guest Facing

Systems Systems Systems
 1. Distribution Systems
A worldwide computerized reservation network used as a single
point of access for reserving airline seats, hotel rooms and other
travel related items by travel agents and online reservation sites

1.A GLOBAL DISTRIBUTION SYSTEM (GDS) and internet have

now become a sort of super market for linking the buyer and sellers
of tourism services.
Global Distribution System serves as a network for allowing
service providers in the travel industry to carry out transactions. The
systems are almost exclusively used by travel agencies or similar
companies, in order to access real-time information about hotel room
availability, airline ticket availability and similar products.

What is GDS?
A global distributed system is a network operated by a
company which enables automated transactions between third
parties and booking agents in order to provide travel- related
services to the end consumers.
o A GDS can link services, rates and bookings
consolidating products and services across all three
travel sectors: i.e. airlines reservation, hotel
reservations, car rentals and activity.
o GDS is different from a computer reservation
system which is a reservation system used by the
respective vendors.
o Primary customer of GDS are travel agent to make
reservations on various reservation system run by the
vendors.
o A GDS, contains database with the information on
travel products such as schedules, prices, availability
and descriptions.
Airlines industry created the first Global Distribution System
GDS in1960’s for keeping the track of flight schedules, availability
andprices.
 • In hospitality industry GDS is natural outlet for online
marketing, itmaintains the hotel information, room inventory
and rates and also manages the reservation and
cancellation process

Four Major Global Distribution Systems:

Let us take a look on the whereabouts and what about of the 4 Big
GDS:
• AMADEUS
Travel broadens horizons, creates connections and builds
economies. Travel powers progress. And Amadeus powers
travel

As a travel technology company we build the critical

solutions that help airlines and airports, hotels and railways,
search engines, travel agencies, tour operators and other travel
players to run their operations and improve the travel
experience, billions of times a year, all over the world.

We've been doing it for more than 30 years, and we're just
getting started. Innovating. Moving fast. Working with
customers and partners to power better, more rewarding
journeys. Leading the industry forward to shape a better future
of travel.

Facts about Amadeus:

• In operates in 190_+ markets
• It has 19,000+ employees made up of 150 nationalities
• 1 of the world’s top software companies (Forbes 2019
global ranking)
• 8th consecutive year included in Dow Jones Sustainability
Index in 2019
• 645+ million bookings processed in 2019
 • 1.9+ billion passengers boarded in 2019
• 7.5 Euro Billion invested in R&D since 2004
• 5.5 Euro Billion revenues in 2019
Industries they operate in:
✓ Corporations
✓ Retail Travel agencies
✓ Business Travel agencies
✓ Online Travel agencies
✓ Hospitality
✓ Airports
✓ Airlines
✓ Mobility
✓ Travel Insurance
✓ Destinations
✓ Cruise
✓ Meta Search and Travel Media
✓ Ground Handles
✓ Rail
✓ Tour Operators

• GALILEO
Galileo GDS is a global distribution system, which is based in
Atlanta, Georgia, in the United States. It is owned by Travelport,
forming one part of their collective offering, which also includes the
Apollo and Worldspan systems. Galileo can be used to book hotel
rooms, airline tickets, train tickets, cruises and car rentals.

The system was originally developed in 1987 by nine European

airlines, including British Airways.

For hotel owners, the primary benefit of the Galileo GDS system is
the ability to distribute hotel rooms to travel agencies and customers
on a global scale. This is achieved by providing travel agents with
24-hour live access to inventories and pricing information, allowing
them to book rooms at the hotel for their customers.
Galileo system commands lead position in airline software and
connected to almost all the leading airlines. Galileo GDS provides
solutions to travel agencies by offering the desktop solutions (search
& book) and web services XML to connect to core database. Galileo
GDS offers flights, hotels, cars, cruise, holiday packages among
others.

Galileo GDS gives you access to a world of content and functionality

through web services APIs and desktop connection. It's designed to
run alongside your existing API solutions for an efficient and low-risk
implementation. Galileo GDS provides you access to worldwide low
cost carriers, high speed rail providers and multi-source content via a
single API can help you clear the clutter of multiple programming
interfaces, while saving valuable time and money.
▪ Online Travel Agent Software (including B2B, B2C, B2B2C,
Corporate module)
▪ Single or Multiple PCC interface
▪ Flight Reservation System
▪ Hotel Booking System
▪ Car Reservation System
▪ Bus Reservation System
▪ Modules for Rails / Visa / Cruise / Holiday Packages

• SABRE
Sabre is regarded as one of the ‘big three’ GDS systems, with a
history that can be traced back to the 1960s. The company and
network is based out of Southlake, Texas, in the United States, and it
is estimated that around 60,000 travel agencies around the world
currently utilise the system in order to sell travel products. Although
Sabre technically has a smaller market share than one of its rivals,
Amadeus, a larger percentage of bookings made using the Sabre
system are hotel-related, as opposed to airline-based.
Sabre GDS is one of the three main GDS systems used by
hotels and other travel companies, in order to improve distribution.
By connecting a hotel to the Sabre system, travel agents will be
granted real-time access to inventory and pricing information,
allowing them to sell hotel rooms to their customers
Sabre GDS is a global distribution system that can be
traced back to the 1960s. It is based in the United States, and it is
estimated to serve around 60,000 travel agencies around the world.
However, it is regarded as being especially strong within the North
American market .

It is estimated that Sabre currently has a total market share of

around 35 per cent. The system also attracts a larger proportion of
hotel bookings than its main rivals in the travel industry.

Together, we make travel happen.

We are a software and technology company that powers the global

travel industry. With decades of revolutionary firsts, our team of
experts drive innovation and ingenuity in the industry.

Today, we are creating a new marketplace for personalized travel.

We partner with airlines, hoteliers, agencies and other travel partners
to retail, distribute and fulfil travel. We are committed to helping
customers operate more efficiently, drive revenue and offer
personalized traveller experiences with next-generation technology
solutions.

Positioned at the centre of the business of travel, our platform

connects people with experiences that matter in their lives.

The Sabre history. It all began with a chance encounter…

What started as a joint initiative between American Airlines and IBM

to create the world’s first computerized airline reservation system in
1960 has since evolved into a technology ecosystem that touches
almost every stage of your travel experience.

Learn how an unexpected meeting started it all. The history of

Sabre is a fascinating look inside one of travel’s more enduring
technologies. From the birth of airline automation to #7 on the
InformationWeek list of “Greatest Software Ever Written,” learn about
the technology, the times and the people who all helped shape
Sabre.

• Worldspan
WorldSpan, a provider of travel technology and content
and is a part of the Travelport GDS (Global distribution system)
business. The worldspan travel software offers e-distribution and
travel information, products and connectivity along with e-commerce
capabilities. These features are specifically designed for the travel
agencies, travel service providers and the corporations. The primary
system is known as worldspan global distribution system and
facilitates online airline booking, online hotel booking, online car-
rental booking, online bus booking, online rail booking, online cruise
booking and many other services.
Worldspan travel software acts as a single source for
providing travel deals and data all over the world. The travel
agencies and the travel companies have been greatly benefited from
the worldspan travel. This is mainly because integration of worldspan
travel software enables the travel agents to enhance the customer
experience by providing information like rates, inventory, discount,
room and description which is done on real time basis.

Benefits of Worldspan GDS system implementation:

Implementing the aspects of expansion, flexibility and

collaboration through technological implementation.
The different types of online booking procedures include
airline booking, hotel booking, rail booking, car-rental,
transfers booking, cruise booking, vacations etc.
Implementing a worldspan GDS software in the travel agency
software business helps in reducing the implementation cost.
Worldspan airline reservation system helps in increasing the
revenue and creating a brand name for the organization.

Role of Travel Agent

The role of travel agent is to provide information to the
customer as well as to facilitate the booking and purchase of
the hospitality product.
Travel agents typically work on commission. i.e. they sell
rooms at the negotiated rate or at the prevailing rate and
receive a percentage rate and receive a commission.
1.B COMPUTER RESERVATION SYSTEM (CRS)
Computer reservation system are primarily for inventory
management by airlines, hotels, and other tourism and hospitality
enterprises.
• Presently CRS provides an integrated solution for managing
sales, bookings, customer relationship management and
services, other marketing practices, payments and accounting
at one to one basis.
• It has several benefits such as Integration with external reservation
networks, In-house reservations networks, single- property
reservation systems, and property management systems.
• CRS are central to the hospitality industry and are becoming the
digital nervous system of the hospitality value chain.

2. Hotel-facing Systems

Front of House Systems

Such Propert ement Systems &
Energy Management Systems

Hotel Facing Systems

Food and Beverage Systems
Such as Stock Control Systems
Material Management system,
reciper management system and
electronic point of sale system.

Front of House Systems

Property Management Systems (PMS)

- PMS coordinates the operational functions of front office,
sales and planning
- PMS is a computer-based lodging information system that
relates to both the front and back office activities
- These systems helps hotels to automate their processes
related to reservations, details about customers, events,
marketing, maintenance and quality management.
- PMS enables hotels to manage front-office capabilities,
such as booking reservations, guest check-in/check-out,
 room assignment, managing room rates, and billing.
- PMS acts as a Room Management Module, which keeps
the front office and housekeeping informed about the
status of room. PMS contains the data on each room such
as room number, room type, room features and location.

◼ Security
- Security is the one of the highest concerns of guests who
visit the hotels
- Hotel information technology systems includes surveillance
systems, Fire Alarms, Smoke Detectors, Sprinklers, Fire
Extinguishers, Luggage Scanner, Handheld Metal
Scanners, Metal Detectors, Hotel Safe Lock etc, helps to
ensure guest’s safety
- Electronic key card offers superior room security, typically
do not list hotel name or room number.so if it lost or stolen,
the key is not easily traceable.
- Most key card system record every entry in and out of the
room.

Energy Management Systems (EMS)

- EMS involves monitoring equipments or procedures in
order to control and regulate the energy consumption in
a hotel.
- Using Infrared motion sensors, door contacts detect
occupancy to control the Heating, Ventilating and Air Conditioning
systems
- turning off the lights when a room is not occupied

Food & Beverage Systems

It gives managers a better idea of the flow of food through the
restaurant.
Enables them to plan cash flow and stock control more effectively.
It provides chefs with a more structured way of planning menus,

taking into account nutritional and financial considerations .

◼ POS
- A Point Of Sale is found in the front of house in a
restaurant or a bar. This is where a server physically rings
 up a customer’s order and the POS records transactions.
A POS could be a terminal or tablet, such as an iPad.-
- Benefits including simplifying the accounting process, easy
access to past transactions, faster service, and informative

itemized receipts .
◼ Guest Management System
Also known as a reservation system or table management software.
A front house solution that manages reservations, wait lists, and
provides analytics that help restaurant owners make important
restaurant decisions.
Provides a better guest experience by giving guests accurate wait
times and by providing a convenient method for making reservations.
Guest management systems offer a consumer app where guests
can check wait times and make their reservations without calling the
restaurant
◼ Digital Inventory System
- inventory management systems integrated with the
restaurant POS allows you to control and organize each
and every aspect of the stock, maintains a smooth flow of
supply and also helps you boost your overall profit
◼ Automated Purchasing Tool
- Restaurant management software that streamlines
restaurant purchasing, invoicing, inventory and vendor
management. Paperless and Painless

◼ Tabletop or Tablet Ordering System

- TOUCHSCREEN MENU
Vivid photos and descriptions enhance menu browsing, naturally
driving upsells.
- ORDER ON-DEMAND
Put the power to order – and reorder – in their hands with a self-
service POS system
- INSTANT PAYMENT
Guests love paying their bill on a secure, responsive handheld

POS machine.
 ◼ Kitchen Display System
- A Kitchen Display System (KDS) is found in the back house of a
restaurant and replaces your paper tickets and kitchen printers.
KDS manages food routing, recipe storage, and holds important
kitchen data.
Benefits of KDS includes organizing your back of house, improving
efficiency, reducing ticket times, and raising food quality.

◼ Recipe Viewer
- A digital recipe book your staff, seasoned and brand new
can access at any time to ensure accurate food prep.
- Recipe Viewer gives you the ability to centrally manage
recipes, cooking procedures, and training information.
- Easy-to-use program protects your valuable recipes on a
secure database

3. Guest-facing Systems
Refer to the technologies used directly by the client within the
property and particularly within the guest room.
High-speed Wi-Fi
Express check-in/check-out
Mobile Concierge
Self-Service Kiosks
Thermostat
Electronic door lock
HD Television
Telephone based systems
In-room refreshment systems
in-room alarm clock

Call Accounting Systems

◼ Track guest phone charges
◼ Available software application
◼ Coordination with PBX and PMS
◼ Discounts during off peak hours
 Additional Information:
Mobile Technology to Serve Customers Better
Mobile check-in/check-out is perhaps the biggest trend
regarding mobile in the hotel industry
Smartphone Keys
Smartphones are even being used in place of room keys
Complete Room Control
Shutting the curtains in the room
Turning down the lights
Adjusting the thermostat
Changing the TV channel
Activating the lifts
Getting access to local information
Ordering room service

B.DEVELOPMENTAL
ACTIVITIES Individual Activity:
1) Research hospitality and tourism establishment that uses the
information systems discussed. Analyze the importance of
such system in that particular establishment.

C.CLOSURE Watch the vide and write a synopsis about it, emphasizing the
ACTIVITIES importance and use of a central reservation system.

https://m.youtube.com/watch?v=n-jtS5BBUbo
Central Reservation System published by Erik Weller of
iTEsso (www.itesso.com) on January 2, 2013

IV. SYNTHESIS/GENE
RALIZATION
In the development an improvement of the hospitality and tourism
industry, there are necessary big changes and advancement occurs.
Guests’ preferences a lot of time that is why the industry must
comply and follow the trends that the guests demands. One of the
biggest development in the industry is the application of technology
base soft wares or systems that are now essential to the operational
aspect of the organization. Several systems are used in the different
sections of the industry respectively, whichever is essential and
 effective in achieving organizational aims and objectives and at the
same customer satisfaction.
Hospitality information systems are collection of components that
work together to provide information help in the operations and
management of a hospitality organization. By the use of system
many problems within the hospitality industry were solves as a result
of the IT revolution. It reduce costs, higher productivity and
efficiency, improves service quality, increased customer satisfaction,
better organizational integration and higher profitability.

V. EVALUATIONS Answer the following questions:

1. What is Global Distribution System?

2. What are the advantages in using a system?
3. What are the big 4 providers of GDS?
4. What are the guest facing systems?
5. How important technology in this era in relation to
hospitality and tourism industry?
6. Describe the systems use under the food and beverage
system
7. What is the result of using Energy Management
System in the sustainability aspect of the
establishment?
8. What is the difference between a CRS and a GDS?
9. What is the role of travel agent?
10. How the GDS works?

VI. ASSIGNMENT/AG Watch this video regarding the operation or process of CRS and
REEMENT GDS and write a report paper on the pros and cons of the
information system.
https://youtube.com/watch?v=kysFEvbzEgA#searching
Global Distribution System Published by Altexsoft on January
18,2019

https://m.youtube.com/watch/?v=xF10Gj2MIEw
Introduction to Global Distribution System Published by
Amadeus on August 29,2018
REFERENCES

Introduction to Hospitality, 4th Edition John Walker, Pearson

Education. Chapter 18

https://www.slideshare.net/SarabindhGManoj/information-
technology-in-hospitality-industry-127675137?qid=e22f1161-aaed-
46f6-8454-0d4dd605ea73&v=&b=&from_search=1

provab.com/galileo-gds-system.html

https://www.revfine.com/sabre-gds/

https://www.sabre.com/about/