APPLIED BUSINESS TOOLS AND TECHNOLOGIES IN HOSPITALITY INDUSTRY

I. TITLE: Module 1: Information Systems Used in the Hotel Industry

Introduction:

The tourism and hospitality sector has been a key beneficiary as it has
allowed the contemporary traveller to enjoy a plethora of options. Information
systems play a crucial role in the hotel industry as they facilitate planning,
management, overall operations of the hotels as well as policymaking.

The information systems used in hotels are much more advanced owing to
the latest technological innovations. One of our earlier posts covered a lot
of Hotel Management Software in detail.

II. LEARNING OBJECTIVES

 After reading this module, students should be able to;

 Identify the Information systems used in the Hotel

 Learn how this system work and how it is being used by the Hote

III. LESSON PROPER

TOPICS TO BE DISCUSSED

 Informtion System
 Different tyes of Information Systems Used in the Hotel Industry
o Transaction Processing System (TPS)
o Point of Sale System (POS)
o Management Information System (MIS)
o Property Management Information System (PMS)
o Decision Support Syste (DSS)

Information systems in the Hotel industry refer to computer systems in a hotel that
supply information about that hotel’s business operations.

Information systems typically include all computerised systems which are used to gather
data continuously both for use internally and externally. Information technology has
influenced every sphere of human life in the last few decades in a tremendous way.
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Some of the information systems that are commonly used in the hospitality industry
include:

Information systems are an integral part of the complete IT infrastructure used in the
hotel industry.

IT in the hotel industry is now probably the most important tool for sustained competitive
advantages. Information systems play a crucial role in the same. Listed below are few of
the same. Have a look please.

1. Transaction Processing System

The World is going gaga over The Cloud and Data analytics. Processing data effectively
helps the hotel to be more flexible to demand, in understanding customer and keeping
costs down.

Transaction Processing System allows business transactions involving the collection,

retrieval, and modification of transactional data.

This system processes data generated about and by transactions in the hotel. These
systems are vital as they ensure that the data collected is accurate and timely, which
increases labour efficiency.

It is mostly used by managers in the hotel industry at an operational capacity. 

2. The Point of Sale (PoS) System used in the Hotel Industry

PoS is the most common form of information systems used in the Hotel industry. This
computerised system keeps track of merchandise sales such as those that would occur
in a hotel restaurant, bar, coffee or gift shop.

There are various versions that are also used by the Front office of the Hotel and the
Housekeeping department.

These systems incorporate registers, computers and any peripheral equipment that
make be established on a computer network.

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 Image Courtesy- Becas

This system is important because it keeps track of payroll, labour, and sales, as well as
generates records which may be useful for accounting purposes.

Micros and version of Micros are commonly used by the Hotel restaurants, Fast food
restaurants and stand-alone restaurants.

Even security departments of the Hotel industry have their own PoS system.

3. Management Information Systems

These systems provide information required by the hotel for proper management of staff
and the facilities.

This system can be used to analyse and facilitate operational and strategic activities
and is used functionally in areas such as security, housekeeping, maintenance, and
financial controls and accounting.

4. Property Management Systems (PMS)

This is a comprehensive software application which is used to cover basic goals such
as coordination of the operational duties of the staff at the front office, sales, and
planning.

Property management systems facilitate the automation of important functions such as

guest booking, guest information, online reservations, as well as sales and marketing.

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Image Courtesy-  Hotelogix

The whole purpose of PMS is to manage various operations of the Hotel and to
streamline data.

There are a lot of customised PMS providers across the globe as covered in our post on
Hotel Management software.

5. Decisions Support Systems

Decision support systems aid the decision-making process. Each hotel creates a
decisions support system based on the operational model of the hotel establishment.

This system is particularly important in ensuring that the hotel operations are functional
and that decisions are made in a timely manner.

IV. SELF PROGRESS TEST/ACTIVITY

I. TRUE OR FALSE
1. Information systems in the Hotel industry refer to computer systems in a
hotel that supply information about that hotel’s business operations.
2. Information technology has influenced every sphere of human life in the
last few decades in a tremendous way.
3. IT in the hotel industry is now probably the most important tool for
sustained competitive advantages.
4. Property management systems facilitate the automation of important
functions such as guest booking, guest information, online reservations,
as well as sales and marketing.

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 5. Each hotel creates a decisions support system based on the operational
model of the hotel establishment.

II. IDENTIFY THE FOLLOWING

1. A System that allows business transactions involving the collection,
retrieval, and modification of transactional data. ________________
2. The most common form of information systems used in the Hotel industry.
This computerised system keeps track of merchandise sales such as
those that would occur in a hotel restaurant, bar, coffee or gift shop.
_____________
3. Facilitate the automation of important functions such as guest booking,
guest information, online reservations, as well as sales and
marketing.____________________
4. These systems provide information required by the hotel for proper
management of staff and the facilities. _____________
5. This system is particularly important in ensuring that the hotel operations
are functional and that decisions are made in a timely manner.
________________

III. Explain: What do you think will be the advantage of the

Hospitality Industry in using Information System

V. ANSWER TO SELF-PROGRESS TEST/COMMENTS

I. TRUE OR FALSE

1. True
2. True
3. True
4. True
5. True

II. IDENTIFICATION

1. Transaction processing System

2. Point of Sale Syatem
3. Property Management System
4. Management Information System
5. Decision Support System

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VI. SUMMARY OF THE LESSON
There is a clear overlap in these information systems used in the hotel
industry. A lot of Hotel software providers have bundled packages for using
multiple products under one administrative panel.

Using these information systems in the Hotel is good for the implementation
of Hotel Marketing strategies for gaining a competitive advantage.
While a lot of hotels already use these systems, there is no harm in others to
test out these information systems. Moreover, most of the software providers
provide a free trial.

Go for it if you still don’t have these systems installed at your Hotel.

VII. SUPPLIMENTARY READINGS AND MATERIALS

VIII. RFERENCES
https://www.soegjobs.com/2017/08/07/information-systems-used-hotel-
industry/