Chapter 6

Functional Applications of Hospitality

Information System (HIS)
6.1 What is Hospitality Information System?
• Hospitality and Tourism management (HTM) is a multidisciplinary field focused on
management, marketing, and operations of restaurants and food services, lodging,
attractions, recreation events, and travel related services.
• Hospitality not only includes hotels and restaurants but also refers to other kinds of
institutions that offer shelter, food or both to people away from their homes. This
might include private clubs, casinos, resorts and so on.
• Information system in the Hospitality industry refers to computer system that supply
information about its business operations. Information system plays a crucial role in
the hospitality industry as it facilitates planning, management of overall operations as
well as policymaking.
• IT systems used in the hospitality industry primarily include computers and telephone
systems but some special software and hardware technologies are also used in various
sectors of the industry. For example: orders can be taken tableside by hand-held
wands or touch screens.
• Hospitality information systems also provide entertainment to guestrooms through on-
demand movies, video games and premium channel selections.
Hospitality Information System designed by Inspire Soft
6.2 Information Systems used in
Hospitality Industry
1. Computer Reservation System (CRS)
A computer reservation system or a central reservation system (CRS)
is a web-based software used by travel agencies and travel
management companies to retrieve and conduct transactions related
to air travel, hotels, car rental, or other activities. It was originally
designed to be used by airlines but was later extended to be used by
travel agencies and Global Distribution Systems (GDS) to book and
sell tickets for multiple airlines.

The main objective of CRS was to make a one-stop service shop and
eliminate physical and geographical distances between mediators and
consumers. With universal coverage, these distribution systems
provide information for airlines, hotels, car rental companies, travel
agencies, corporations and more.
Here are some of the basic functions in a CRS:

• Displays travel services with prices and images

• Inventory and reservation management
• User friendly reservation system
• Online payment gateway integration
• Customer data management
• Email notifications
• Booking cancellation and refund management
2. Global Distribution System (GDS)
• A GDS is a worldwide conduit (network) between travel agents 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 most common uses for GDSs is in the tourism industry, mainly for
airlines, hospitality companies, and car rental companies.

• The GDS mainly uses real-time inventory (e.g. number of hotel rooms
available, number of flight seats available, or number of cars available)
from the service providers.

• Four of the major legacy GDSs are: Amadeus, Galileo, Sabre,

Worldspan.
How Does a GDS Work?
In short, a GDS functions as a middleman between a travel agent and
a hotel’s (or airline’s) central reservation system. Travel agents can
see real-time rates and inventory for a given hotel via the GDS,
though the GDS doesn’t actually hold its own inventory. It’s simply a
window into the hotel’s system, which shows available room types,
rates, and restrictions. When a travel agent books a room, the GDS
transfers the reservation information to the hotel’s system and
removes that room from the hotel system’s inventory. The travel
agent does not need to talk to anyone from the hotel, and the hotel’s
reservations agents don’t need to enter any data manually
3. Property Management System (PMS)
• A property management system (PMS) is sometimes referred to as a
hotel operating system or hotel OS. PMS provide a centralized
computer system to organize, schedule and perform day to day
functions and transactions (like reservations, front desk,
housekeeping, maintenance, billing and invoicing, analytics and
reporting) involved in accommodation business.

• Property management systems facilitate the automation of important

functions such as guest booking, guest details, online reservations,
point of sale, telephone, accounts receivable, sales and marketing, food
and beverage costing, HR and payroll and many more.

• PMS is often used to keep track of materials and supplies, as well as

employee-owned property and equipment.
Some of the popular providers of these property management systems in
hospitality are:

• Oracle Hospitality
• Hotelogix
• eZee Technosys
• MSI Cloud
• Opera PMS
• Maestro Property Management System
 4. Point of Sales System (PoS)
A Point of Sale (POS) system is a software application used by businesses, such as
restaurants, cafes, bars, and retail stores, to manage their sales and inventory
operations. The POS system typically consists of a combination of hardware and
software, including a computer or tablet, cash register, barcode scanner, and receipt
printer.

The POS system serves as the central hub for all sales data, providing real-time
information on inventory levels, sales, and revenue. It allows businesses to efficiently
manage their sales and inventory, reduce human error, and improve customer service.

Here are some common features of a Point-of-Sale system:

Sales Management: The POS system allows businesses to manage their sales
transactions, including payment processing, discounts, and returns.
Inventory Management: The POS system tracks inventory levels and provides real-time
data on stock levels, allowing businesses to manage inventory levels and avoid
stockouts.
4. Point of Sales System (PoS) contd.
Reporting and Analytics: The POS system provides data and insights on sales trends,
revenue, and inventory performance, allowing businesses to make data-driven decisions.
Order Management: In the restaurant industry, the POS system is used to manage
orders, including table management, menu changes, and order modifications.
Employee Management: The POS system allows businesses to manage employee data,
including shifts, sales performance, and payroll.
Overall, a Point-of-Sale system is an essential tool for businesses to manage their sales
and inventory operations, improve customer service, and increase revenue. Some popular
POS system providers include Square, Shopify, and Lightspeed.
 Features of POS
• Reducing theft
• Speeding guest ordering and checking out
• Ensuring accuracy
• Multiple payment methods
• Customer-facing display
• Inventory counts
• Friendly user-interface
• Reporting
End of Chapter 6