Computer Applications in Hospitality
Computer Applications in Hospitality
The application of computers in the hospitality sector is of great importance because this area offers the
greatest potential for improvement- cost reduction, better management information, reduced training
and manpower costs and prospect of more interesting work. Today, even smaller hotels have turned to
the use of computers to manage their enterprise.
PROPERTY MANAGEMENT SYSTEM (PMS):
In recent times, hotels have started using PMS in order to manage and respond to guest needs efficiently
and effectively. A PMS is a single site version and is need-specific to an individual property.
A PMS is a generic term used to describe the computer applications (computer hardware and
software) in managing the interface of various departments in a hotel in order to manage the
property effectively.
A PMS is important and essential to front office operations in modern hotels. It includes the
process of reservations, registration, guest accounts, guest check in and checkout, handling
discounts and allowances and the night audit. Interfacing, electronic sharing of data of
departments such as Front Office, F&B through points of sale, Maintenance through monitoring
of energy and heating and cooling systems and Security through control of guest keys are a few
of its applications in a hotel, mentioned below:
Energy Management System (EMS)
Material Management System (MMS)
Point of Sale (MICROS)
Human Resource Information System (HRIS)
Accounting System
Call Accounting System (CAS)
Management Information System (MIS)
BENEFITS OF A PMS:
3. REGISTRATION:
This is linked by information transferred from the reservation’s module. Pre-registration, quick guest
room assignments and online verification of room status increase the efficiency during the check in
process. The information gets updated automatically which further speeds up the process of handling
guest check in, issuing of key cards and card keys as well as handling group arrivals.
4. GUEST ACCOUNTING & CHECK OUT:
This provides accurate online posting of guest charges when interfaced with the POS. Split charges and
multiple folios with specific billing instructions that have been set for each guest speeds up the
accounting process. Master and Incidental folios can be monitored easily and effectively. Foreign
exchange vouchers control flow of foreign currency and helps in handling settlement of guest folios
with different payment methods. Guest check outs can be handled more efficiently and smoothly.
5. ROOMS MANAGEMENT (HOUSEKEEPING): this module allows for constant updating of
room status and maintenance status of all room types in the hotel. This information can also be
communicated and made accessible for confirmation to the Front Office. It can display work area
allocations of different staff on the floors and can create room occupancy reports and other reports
required by housekeeping. It can store statistics related to occupancy with room history records that can
help in future planning and in providing better maintenance services to keep rooms in shipshape
condition.
6. NIGHT AUDITING: the most important function of daily operations of a hotel is the night audit.
This process posts room tariff and taxes automatically on the guest’s folio and helps confirm and
reconcile the final balance of the entire day’s transactions. During the night audit procedural rights of
front office staff are limited and therefore the PMS needs to have features that can allow other non-
accounting tasks to be carried out during the night audit process.
7. SALES & CATERING (S&C/BANQUETS): This function of the PMS deals with banquet
activities and reservations regarding the booking status for any function space, specific occasions as
well as days and time of the booking. More advanced systems also record the number of pax and
employee assignment. The most important function is billing or posting of transactions to the Sales
ledger which can be handled efficiently by the F&B staff.
B. BACK OFFICE SYSTEMS OF THE PMS
Other modules used by the hotel management for operating efficient hotel operations usually
include:
i. MATERIAL MANAGEMENT SYSTEM-MMS- (Stores & Purchase): This covers the
entire material management operations such as requirement planning, purchase, receiving of
stock, costing, etc. The system also provides information for effective decision making and
budgeting.
ii. MANAGEMENT INFORMATION SYSTEM (MIS): the MIS should provide statistical
information to the management to assist in decision making and revenue control.
MIS provides the database regarding forecasts and budgets which helps management in
establishing room rates.
Comparison of budgeted figures along with actual figures established by sales & marketing
department in relation with front office helps the management to address the problem in case
of losses.
An MIS should provide data which is comprehensive, accurate and detailed with business and
sales analysis to ensure increased revenue and higher occupancy.
iii. FINANCIAL ACCOUNTING SYSTEM: this module provides information required for basic
accounting as well as financial management of the hotel. Its main features are:
Integration of account receivable, account payable, material management, ledgers, and payroll
in the financial accounting system.
An accounting system facilitates the administration in audit reconciliation on a daily basis,
comparing of cash with raised vouchers, etc.
Monthly information regarding balances, profit and loss statements is also prepared.
Provides timely updated and accurate financial information to accounts receivable for future
financial control.
Forecasts daily cash flow for better cash management.
Comparison of budgeted to actual revenue and related expenditure is efficiently managed.
Timely financial statement of account is made available.
iv. F&B CONTROL SYSTEM: this is the most important area of concern as a major POS which can
raise revenue and create a lot of savings through control of F&B by minimising wastage of material.
An efficient control system should establish standards of raw material usage in order to
minimise wastage.
This should highlight raw material consumption reports in case consumption is exceptionally
high.
It should automatically pick up sales details for the POS system.
This should also control and check beverage consumption through the POS.
POINT- OF- SALE (POS) SYSTEM: POS system is made up of a number of terminals located at
various outlets or points of sale in the hotel. Each POS terminal contains its own input and output
components which are interfaced with a remote central processing unit.
The interface allows the electronic data to be processed, and transferred to guest folios when required,
thus reducing the time required to post a charge in the appropriate guest folio and recording of the F&B
sale at the same time.
a) The essential information input at the POS is the identity of the server, location of the customer
(table number), number of covers and menu items being ordered.
b) This order is electronically transmitted to the kitchen where it is printed as a KOT. This reduces the
number of trips of the server/waiter to the kitchen.
c) An additional function could be that the order for hot items can be printed at one location and that
for cold items at another location.
d) The prices of all menu items, food and beverages, can be stored allowing for printing or settlement
of the check.
e) When the guest settles the check, the settlement method (cash, credit card, city ledger or room
settlement) can be entered and specified from the terminal on check.
f) At the end of the shift, a server can obtain the report of all unsettled or open checks. Usually all
checks are required to be settled or closed by the F&B supervisor.
g) Each check raised for a room settlement (for an in-house guest) should be signed by the respective
guest.
h) A credit card EDC (Electronic Data Capture machine) will have all the details of all credit card sales.
i) Once all checks are settled, a check settlement report showing details of total sales and its breakdown
will be printed. This report will be the basis of balancing of F&B sales during the night audit.
The CROs (Central Reservation Offices) are linked for an effective and real time management
It primarily works on WAN- Wide Area Network
Examples are:
TAJ, WELCOME GROUP, MARRIOT Etc,.
Holiday Inn World Wide, OCC (Oberoi Call Centre), and more
The CRS can operate in two ways. One, it can be a CRS for one group of hotels in different
locations (affiliate members). Second, it can sell rooms belonging to different hotels which
are not connected or linked to each other but use the services of the CRS to sell their rooms
on a wider scale thus reducing their investment and reaching a greater market which may not
have been possible on their own.
All properties featured in the CRS database can be accessed by a search criterion- this means
that a reservationist can assure customised service based on the needs of a prospective client.
Hotels fitting in the search criteria and displaying availability for the requested dates will be
displayed on the screen. This enables the reservationist to offer a hotel that may be a better
option for a scheduled date.
Repeat guest history data for each hotel can be stored in the CRS. The past stay information
on each guest history is updated at the time of the last departure. When the guest wants to
return to the same hotel, this data can guide the reservationist to offer appropriate rooms.
SELECTION OF A PMS
Since the PMS is a capital investment, great thought goes into the decision for the shift of a manual
working system to a fully automated one.
STEP 1: NEEDS ANALYSIS
It includes such issues as analysing the ease with which the telephone system can be used; the
availability of room status; the length of time taken to complete a reservation request; analysis of needs
include such issues as how do the F&B report guest charges? How does Engineering monitor and
control energy usage in guestrooms? etc.
Similar information is researched and various operational and administrative needs are
combined to determine which computer application would be appropriate for the property in question.
So, the needs analysis enables to know what is needed and what is not needed and will help
choose from the many PMS available in the market.
PROCEDURE FOR PERFORMING A NEEDS ANALYSIS:
A. Select a team to analyse needs.
B. Analyse the flow of guests through the lodging property:
Reservations Registration
Guest accounting Check Out
Night audit Guest History
Based on requirements based on the conclusion of the need analysis in step 1, a hotel may go
in for the entire PMS or parts of it, i.e. certain modules. Many hotels combine modules for
different departments from various PMS available. A hotel may have the rooms’ module of
Fidelio, the payroll and accounting module of Shawman, and so on.
Proper software selection is important as it involves heavy investment.
It should be configured or customised as per the need of the hotel.
Other features of a software that should be considered are:
a. Growth and flexibility: it should be able to handle present needs and grow with the hotel; i.e. can
be added on with increased number of services.
b. User friendliness: should be well designed with clear menu prompts, self-explanatory input screens,
simple error correction, should require minimum training, etc.
c. Operating system should be carefully selected and compatible with the hardware.
d. Multi-user capability: several users can have access to and enter data at the same time.
e. Report generator: to meet special requirements of the hotel those are meaningful to management.
f. Stability: PMS should be able to operate without crashing and causing loss of information.
g. Secure: the PMS should be able to incorporate security needs of the property- establishing user rights,
tracking changes with user ID, etc. in order to establish accountability of actions of the users.
GDS is different from a computer reservations system which is a reservation system used
by the respective vendors. Primary customers of GDS are travel agents (both online and
office based) to make reservation on various reservations systems run by the vendors. GDS
holds no inventory, the inventory is held on vendors reservation system itself. A GDS
system will have real-time link to the vendors’ database. For example, when a travel
agency requests a reservation on the service of a particular airline, the GDS system routes
the request to the appropriate airline computer reservations system. This enables a travel
agent with a connection to a single GDS to choose and book various flights, hotels,
activities and associated services on all the vendors in the world who are part of that GDS.
Various tourism-linked services, one of them being hotel accommodation among others
such as air tickets, car rentals, etc.
Usually the GDS terminals are with travel agents. They may be linked to the GDS
through a dial-up mode or a leased line.
Examples are, Apollo, Galileo, Sabre, Amadeus, Abacus, WorldSpan, Fantasia, and more
1. Internet in the hotel guestrooms: hotel guests are provided full access to the Internet on their
in-room television. Innovative infrared wireless keyboards may be used. A web browser, e-mail
connection, and on-line multi-lingual help can be provided to maximise Internet experience at the
hotel. Wi-Fi access in rooms, free or charged for, is provided by nearly all large hotels. Free Wi-Fi
is also being considered for availability in public areas of the hotel.
2. TV interactivity: Through this concept, various guests can have access to the same movie at
different times according to their own convenience. Another use is that the guest can refer to their
TV sets at any time for viewing their bills, credit limits and expenditures, even local and city
information, etc.
3. E-concierge: this facility empowers the guest to take a “multi-media graphic and sound assisted
tour” of the city, shopping centres, etc. while sitting in his room. This may include making
reservations at restaurants, operas, etc.
4. Other technologies: these may include the use of voice-over Internet Protocol (VOIP), video
conferencing, staff scans, etc. and many other services.
Introduction to Fidelio and Amadeus
Fidelio is a complete integrated system package designed to achieve maximum efficiency of
the hotel. This PMS is produced in Munich, Germany, advanced version 6.20. The demo
version enables the employees to practice and learn in a real-life environment. Its main features
are:
1. It is DOS- based and the newer version-OPERA-is Oracle-based.
2. It can protect its software from all sorts of virus. If a virus enters the system, it is transferred to
a non- usable file from a database file in order to save the other files.
3. It is flexible and easy to use the software.
4. It can be easily operated with a minimum of training inputs.
5. The red alert software can be used for extra protection of files from the virus.
Reservations
FIDELIO Reservation features are integrated with other functionality such as profiles,
cashiering, and deposits. This module offers a complete set of features for making and updating
individual, group, and business block reservations, including deposit handling, cancellations,
confirmations, wait-listing, room blocking, and sharing.
Rate Management
An extensive set of features for setting and automatically controlling rates, for rate quotation,
and for revenue forecasting and analysis are integrated into FIDELIO to create the most
comprehensive rate management system in the industry. FIDELIO interfaces with the
FIDELIO Revenue Management Systems and other major yield management applications.
Front Desk
Arrivals and in-house guests are served using the Front Desk features This module handles
individual guests, groups, and walk-ins, and has features for room blocking, managing guest
messages and wakeup calls, and creating and following up on inter-department advisories, or
traces.
Rooms Management
FIDELIO’s Rooms Management features handle all facets of room supervision including
availability, housekeeping, maintenance, and facility management. The Queue Rooms feature
coordinates Front Office and Housekeeping efforts when guests are waiting for rooms which
are not immediately available for assignment.
Cashiering
Posting guest and passer-by charges (including taxes and other generates), making posting
adjustments, managing advance deposits, settlements, checkout and folio printing are a few of
the many activities handled by FIDELIO Cashiering. Cashiering accommodates multiple
payment methods per reservation including cash, check, credit cards, and direct bill. In multi-
property environments, guest charges can be cross-posted from any property in the hotel
complex.
Global Perspective
FIDELIO PMS supports multi-currency and multi-language features to meet the requirements
of global FIDELIO expectations. Rates and revenues can be dynamically converted from the
local currency to any other currency. The appropriate language for guest correspondence can
be automatically determined by the guest’s profile language; country-specific
address formats are supported.
Reporting
FIDELIO offers over 360 separate standard reports. Reports can be customized for each hotel
and new reports may be created as needed using FIDELIO’s built-in Report Writer.
Accounts Receivable
AR is fully integrated with the FIDELIO database and includes direct billing, invoicing,
account aging, bill payments, reminder and statement generation, and account research. Old
balances from external accounting systems may be entered.
When entering a reservation, it is possible to define room type, price, check-in time, the initial and
final meals, method of payment, as well as the billing instruction to the company. Confirmation letter
of booking is printed on the guest’s language.
FRONT DESK
Automated system to check in guests by reservation. At any moment you can check the
expected arrivals, expected departures, and the view of guests in the hotel. This module allows
you to enter messages for guests with printing option, and to track the status: delivered or
undelivered.
CASHIERING
Using module Cashiering you will have access to the balance of each guest, as well as invoicing
in a user-defined format invoice in multiple languages. There are different styles of the standard
invoices. It is possible to merge invoices, and unlimited opportunities to split invoices,
regrouping of posting and transfer to other room or account. There are no restrictions on
combinations of payment: credit cards, cash, invoices, check.
ROOMS MANAGEMENT
A complete overview of the rooms’ status with the possibility of changing their status.
Graphical display makes it easy to access floors to the status of the room, and in the availability
of capacity also. In addition to monitoring the status of basic rooms, you can change the room
status to “out of use” with a defined reason.
OPTIONS
Contains various functions of which report creation and printing is a major task. The various
functions contained here are:
Reports
Word processing
Printer
Users log file
Batch Folios
MENU
Without logging off, users can operate the following:
Check out
Check-in
Cancelled
Cashier
Amadeus is a computer reservation system (or global distribution system, since it sells
tickets for multiple airlines) owned by the Amadeus IT Group with headquarters in Madrid,
Spain. The central database is located at Erding, Germany. In addition to airlines, the CRS is
also used to book train travel, cruises, car rental, ferry reservations, and hotel rooms. Amadeus
also provides New Generation departure control systems to airlines. The company is structured
around two key related areas – its global distribution system and its IT Solutions business area.
Amadeus Hotel Front Office generates text files for multiple use (for example: printing labels
or creating mailings etc). Select guests according to a variety of criteria such as number of
stays, turnover achieved, country, postal code area, segment code, birthday, age etc and aim
your direct mail at the right segments easily.
Various Modules/ Customer Solutions offered by Amadeus:
Amadeus Air
Amadeus Rail
Amadeus Traveler
Amadeus Office
Amadeus Cars
Amadeus Hotels
Amadeus Tours
Amadeus Cruise
TECHNOLOGY
Travel industry’s leading technology delivers efficient solutions to meet customer’s critical
business needs -increasing revenues, productivity, reducing costs and improving customer
service. Amadeus invests in the latest technology solutions and operating environment making
it a forerunner in innovative products and service development.
ADVANTAGES
Increased revenue: Travel industry-leading solutions help customers to maximize
their revenue from existing channels and explore new ones, thus keeping their
businesses successful, both now and in the future.
Reduced costs: Amadeus solutions are designed to maximize productivity through ease
of use. Continuous innovation and enhancements to the solutions include the
incorporation of state-of-the-art graphical interfaces, making it easier to book travel
while Business Management solutions include value added features that increase
efficiency saving time and cost.
Service Differentiation: Amadeus designs solutions may be customized and
personalized so that travel providers and sellers can deliver the most effective customer
service and benefit from increased adoption and customer loyalty.
Easy system migration/connectivity: The combination of Amadeus robust leading–
edge technology and inside knowledge of the travel industry allows seamless
integration of solutions.
AMADEUS HOTELS ( PMS)
With the integration of Optimism, the leading hotel IT provider fully owned by Amadeus since
2005, Amadeus has added to its hotel distribution technology a sample of portfolios of IT
solutions for the hotel industry. In 2010, Amadeus is reported to have sold its PMS division to
SoftBrands, a provider of business software.
Benefits/Advantages
1. Time saving as it provides all travel, client and agency information through single
screen access to travelers round the clock.
2. Easy to find and understand information.
3. Better control as the entire travel agency business can be integrated and hence increase
profitability.
4. Possibility of cross selling the products and larger offers to clients is possible.
5. Amadeus caters to all hotel needs from hotel management software to distribution to
all sales channels.
6. Amadeus can anticipate the needs of the guests in advance and be ahead of the
competition in delivering them.
Features of Amadeus-Hotels
Technology to distribute hotels in both online and travel traditional environments.
PMS for individual hotels.
Centrally managed PMS for hotel chains and hotel groups.
Revenue Management System both for hotels and central reservation offices.
Direct connection to GDS to streamline the distribution.
Central Reservation System to connect individual properties and hotel groups to the
GDS and online distribution.
Amadeus Property Management System (PMS) is a fully integrated solution for hotel chains
that offers a single view of rates, inventory, content, guest information and reservations for all
properties within the chain.