ITCT 2023 Study Material

Name of the Program: Bachelor of Commerce (B.Com.
)
Course Code: B.Com.TT. 4.3
NAME OF THE COURSE:
INFORMATION TECHNOLOGY AND COMMUNICATION FOR TOURISM
Module No.1: Basic Computing: 10

An appreciation of computer hardware and terminology, The use of an operating system, various programming
languages, A descriptive survey of some of the important application: communication, office systems,
information storage and retrieval of Data.
Module No. 2: Office Work: 10

The study and use of typical micro–computer storage software packages such as word processor, spreadsheet
and MS Office (Word, Excel, Powerpoint, Access and Outlook Express)
Module No. 3: Internet 14

Management information systems, Office automation, E-mail and electronic highway, Internet, Web Page
Designing.
Module No. 4: Computer Networking: 10

What is CRS, How it functions. CRS for Rail Transport, Hotel Bookings, Airlines: Different packages used:
Abacus, Fantasia, Amadeus, Apollo-Galileo, Sabre etc. Use dummy of one for the CRS packages (if available).
Module No. 5: Promotion 12

Definition, tools and importance of communication in tourism industry. Communication types and process.
Advertising and essentials of god advertising, word of mouth, publicity. Multimedia technology. Role of
Computers in Travel and Tourism.
ChandanTourism/8123000676/kalyug6@gmail.com
Computer System Fundamentals
Introduction
Computers are an essential tool of information technology (IT). They are multi-purpose machines that are used
to solve a variety of problems in different fields. The basic working principle of a modern computer is based on
the analytical engine designed by Charles Babbage in the 19th century. Computers have changed our daily
routine as the entire task performed by us in our daily routine is automated. Our lives are directly or indirectly
affected by the computers. It was in the past era where computers were used in industries. In this era of
information, we are dependent on the storage, flow, and processing of data and information which can only be
possible with the help of computers. This is the reason a computer is called a multi-purpose machine.
Computer System
The term ‗computer’ is derived from the word ‘compute’, meaning ‘to calculate’. A computer is a
programmable electronic machine that accepts data from the user, processes it by performing calculations and
operations on it, and generates the desired output results. Computer performs both simple and complex
operations, with speed and accuracy. Computing is not restricted to only mathematical computing but to a
variety of logic-based tasks. Computer, process the data as per the given set of instructions. It can perform
operations like generating bills, reserving tickets, printing mark-sheets, printing business reports, or
communicating messages. Data can be text, number, audio, video, graphs, or animations.
Characteristics and Limitations of a Computer

As we know, computers can execute millions of instructions per second. The computer gives a correct result
only if the data and instructions given are correct. The term garbage in, garbage out (GIGO) is used to refer to
this feature. Computers are very useful because of their characteristics like speed, accuracy, automation,
programming ability, storage, diligence, versatility, and ability to retain data.
Characteristics
Speed: The speed of computer data processing is measured in terms of instructions per second. Modern
computers can process the data very fast that is at the rate of millions of instructions per second. It means the
calculations which otherwise require hours and days to compute manually, can be completed in a few seconds
using computers.
Accuracy: Computers can perform complex arithmetic and logical computations with 100% accuracy. For
example, the computer can accurately give the result of division of any two numbers up to ten decimal places.
Automation: Computers can automatically perform a given task based on the given instructions. Once data and
necessary instructions are stored in the computer memory, human intervention is not required.
Programmability: Computers can be programmed to execute predefined set of instructions. The program once
written can be modified later for the revised task.
Storage: Computers can store large volumes of data permanently in secondary storage for a long time. The
stored content can be retrieved whenever required. A limited amount of data can be stored, temporarily, in the
primary memory.
Diligence: Computers are machines and hence they can operate consistently for long hours without any break.
They can perform long and complex calculations with the same speed and accuracy from the start till the end.
Versatility: Computers are versatile in nature. They can perform different types of tasks with the same ease. At
one moment, you can use the computer to prepare a letter document and the next moment you may play music
or print a document.
Limitations
Computers also have some limitations. Computers do not have emotions, knowledge, experience, and feelings.
They can only perform tasks as per the instructions given by the user and do not take their own decisions.
Generations of Computer
The computer has evolved from a large simple calculating machine to a smaller but much more powerful
machine. The evolution of the computer to the current state is defined in terms of generations of the computer.
Each generation of the computer is designed based on a new technological development, resulting in better,
cheaper, and smaller computers that are more powerful, faster, and efficient than their predecessors. There are
five generations of the computer.
Generations of computer
Generations Hardware Technology Systems Examples
First Generation (1942–1954) Main electronic component: ENIAC, EDVAC, EDSAC,
vacuum tubes Input/Output device: UNIVAC, IBM 701
punch card
Second Generation (1955–1964) Main electronic component: IBM 7030, IBM 7094, IBM 1400
transistors Input/Output device: series, CDC 164, UNIVAC series
floppy disk and tape
Third Generation (1964–1975) Main electronic component: IBM 7030, IBM 7094, IBM 1400
integrated circuits (IC) series, CDC 164, UNIVAC series
Input/Output device: keyboard and
mouse as input device, high
capacity disk for secondary storage
Fourth Generation (1975– Very large scale integrated circuits STAR 1000, CRAY-X-MP (super
Present) (VLSI) technology, microprocessor computer), DEC 10, PDP 11
Input/Output device: keyboard and CRAY-1, IBM 4341, ALTAIR
mouse as input device, high 8800, Apple computers, VAX9000
capacity disk for secondary storage
Fifth Generation (Present– These machines will incorporate IBM notebooks, Pentium PCs,
Future) bio-chip and VVLSI (very very SUN workstations
large scale integration) or ultra-
large scale integration (ULSI)
artificial intelligence (AI)
Hardware and Software
A computer needs both hardware and software to function properly.
Hardware: It consists of mechanical and electronic devices which we can see and touch. CPU, keyboard,
mouse, and monitor are examples of hardware.
Software: It consists of programs, operating systems, and the data that resides in the memory and storage
devices. Windows, Microsoft Office, LibreOffice, and Photoshop are some examples of software. A
computer system is useful only if it consists of both hardware and software.
Test: Identify whether the following are a part of the computer hardware or software.
Component Hardware/Software
Motherboard
Monitor
DVD drive
Hard disk
Microphone
MS Office
Keyboard
CorelDraw
LibreOffice
RAM
The Input-Process-Output Concept

A computer is an electronic device that accepts data, processes data, generates output, and stores data. A
computer mainly performs the following four functions:
1. Input: The computer accepts input data from the user via an input device like keyboard. The input data
can be characters, word, text, sound, images, document, etc.
2. Process: The computer processes the input data. It performs arithmetic or logic calculation, editing,
modifying a document, etc. During processing, the data, instructions, and the output are stored
temporarily in the computer‘s main memory.
3. Output: It is the result generated after the processing of data. The output may be in the form of text,
sound, image, document, etc. The computer may display the output on a monitor and send the output to
the printer for printing.
4. Storage: The input data, instructions, and output are stored permanently in the secondary storage
devices like hard disk. The stored data can be retrieved, whenever needed.
Main Components of the Computer System
The internal design of a computer differs from one model to another but the basic components of all computers
remain the same. The basic working model of a computer is based on the John von Neumann architecture.
It consists of some functional units namely input/output unit, central processing unit (CPU), and memory. A
computer has the following three main components—
(i) input/output unit
(ii) central processing unit
(iii) memory unit
Input and output unit
The user interacts with the computer via the I/O unit. The input unit accepts data from the user and the output
unit provides the processed data that is the information to the user. The input unit accepts data from the user,
converts it into computer understandable form. Similarly, the output unit provides the output in a form that is
understandable by the user. The input is provided to the computer using input devices like keyboard and mouse.
The commonly used output devices are monitor and printer.
Central Processing Unit (CPU)

It is the main component of the computer. It performs all the processing of input data and is responsible for
activating and controlling the operations of other units of the computer. In microcomputers, the CPU is built on
a single chip or integrated circuit (IC) and is called microprocessor. Internal architecture of a CPU consists of
the following parts—
(i) Arithmetic logic unit (ALU)
(ii) Registers
(iii) Control unit (CU)
(iv) Buses
(v) Clock
Arithmetic logic unit (ALU)

It consists of two units—arithmetic unit and logic unit. The arithmetic unit performs arithmetic operations such
as addition, subtraction, multiplication, and division. Logic unit performs comparisons of numbers, letters, and
special characters. Logic operations include testing for greater than, less than or equal to condition. ALU
performs arithmetic and logic operations and uses registers to hold the data that is being processed.
Control unit (CU)
It controls the input, output, and processing activities inside the computer. It maintains the order and controls
the operation of the entire system. The control unit interprets the instructions given to the computer, determines
the data to be processed, where to store the results (output), and sends the control signals to the devices required
for the execution of the instructions. It directs the computer to carry out stored program instructions by
communicating with the ALU and the registers. CU uses the instructions in the instruction register (IR) to
decide which circuit needs to be activated. It also instructs the ALU to perform the arithmetic or logic
operations. When a program is run, the program counter (PC) register keeps track of the program instruction to
be executed next. CU tells when to fetch the data and instructions, what to do, where to store the results, the
sequencing of events during processing, etc. CU also holds the CPU’s instruction set, which is a list of all
operations that the CPU can perform.
Memory unit
It stores the data, instructions, intermediate results and output, temporarily during the processing of data. The
memory unit consists of cache memory and primary memory. Primary memory or main memory of the
computer is used to store the data and instructions during execution of the instructions. Random access memory
(RAM) and read-only memory (ROM) are the primary memory. The input data that is to be processed is
brought into the main memory before processing. The instructions required for processing of data and any
intermediate results are also stored in the main memory. The output is stored in memory before being
transferred to the output device. CPU can work with the information stored in the main memory. In addition to
the main memory, there is another kind of storage device known as the secondary memory. It is nonvolatile
memory and is used for permanent storage of data and programs.
Primary memory
It is the main memory of a computer. It is used to store data and instructions during the processing of data. It is
semiconductor memory and is of two kinds—random access memory (RAM) and read-only memory (ROM).
1. Read-only memory (ROM) It is an essential memory unit in every computer. It holds the boot up
program called BIOS (Basic Input Output System) required to boot the computer. This memory is
permanent and is not erased when the system is switched off. The memory capacity of ROM varies from
64 KB to 256 KB depending on the model of the computer.
2. Random access memory (RAM) It is used to store data and instructions during the execution of
programs. CPU accesses the data and the instructions from RAM, as it can access them at a faster speed
than the storage devices connected to the input and output unit.
Memory representation
In a computer, data is stored as a machine code. The machine code has only two states either 0 or 1. Binary digit
or bit is the basic unit of memory. A bit is a single binary digit that is 0 or 1. A bit is the smallest unit of
representation of data in a computer. The storage capacity of memory is measured in bytes. A group of 8 bits
form a byte. One byte can store 28 that is 256 different combinations of bits and thus can be used to represent
256 different symbols. In a byte, the different combinations of bits fall in the range 00000000 to 11111111.
Binary digit = 1 bit = 0 or 1
1 Nibble = 4 bits
1 Byte (B) = 8 bits
1 Kilobyte (KB) = 210 = 1024 bytes
1 Megabyte (MB) = 220 = 1024KB
1 Gigabyte (GB) = 230 = 1024 MB = 1024*1024 KB
1 Terabyte (TB) = 240 = 1024 GB = 1024*1024*1024 KB
A computer with 2GB of RAM can hold 2 billion bytes of data and instructions at any time.
Secondary memory
It stores data and instructions permanently. The information can be stored in secondary memory for a long time
(years), and is generally permanent in nature unless erased by the user. It is a non-volatile memory. It provides
backup storage for data and instructions. Hard disk drive and optical disk drives are some examples of storage
devices.
The data and instructions that are currently not being used by CPU, but may be required later for processing are
stored in secondary memory. It has a higher storage capacity and is also cheaper than the primary memory. But
it takes a longer time to access the data and instructions stored in secondary memory than in primary memory.
Magnetic Storage Devices

These use plastic tape or metal or plastic disks coated with magnetic materials. Data is recorded magnetically in
these devices. Read/write heads are used to access data from these devices. Hard disk drive is the most popular
magnetic storage device now.
Hard disk drive (HDD): This consists of metal disks coated with magnetic material concealed in dust free
containers. Hard disks have a very high storage capacity, high data transfer rates, and low access time. They are
more durable, less error prone, and are the most common secondary storage device used in computers.
Optical storage devices: This is a data storage medium which uses a low power laser beam to read from and
write data into it. The laser beam reads the pits and lands (all optical media have pits and lands which are
microscopic) as 0s and 1s. It is very cheap to manufacture optical disks in large quantities and it is a popular
secondary storage medium. The main types of optical disks are—CD, DVD, and Blu-ray.
Compact disc (CD): This is an optical storage medium capable of storing up to 700 MB of data. A CD drive
uses red laser beams for reading from and writing data into CDs. There are two types of CDs—CD-R and CD-
RW. In CD-R (compact disc recordable), data can be written once and read many times whereas in CD-RW
(compact disc rewritable) disks, it can be erased and rewritten at any time.
Digital versatile disk (DVD): This is an optical storage media similar to CD-ROM but with a higher storage
capacity. This is achieved by using smaller spots to record data. Recording and reading of data is done using a
DVD drive. Here also, red laser beam is used for these operations. The capacity of a DVD varies from 4.37 GB
to 15.9 GB. DVDs also come in the form of DVD-ROM and DVD-RW.
Blu-ray DVD: This is an optical disk format developed to enable recording, rewriting, and playback of high
definition (HD) video as well as storing huge amounts of data. CD and DVD technologies use red laser to read
and write data while Blu-ray format uses a blueviolet laser. The benefit of using a blue-violet laser is that it has
a shorter wavelength than a red laser, which makes it possible to focus on the laser spot with greater precision.
This allows data to be packed more tightly. Therefore, it is possible to store more data on the disk even though
it is the same size as that of a CD or DVD. The format offers more than five times the storage capacity of
traditional DVDs and can hold up to 25 GB on a single layer disc and 50 GB on a dual layer disc.
Classification of Computers
Generally, the word computer refers to a personal computer such as a desktop or laptop. However, we see
different types of computers in our daily lives performing various tasks, for example while operating an ATM,
purchasing groceries at the store, etc.
Purpose
According to purpose, computers can be classified into two types:
1. General purpose computers: These computers are used for general use such as office applications,
banking, invoice, sales analysis, and financial accounting. They are used at home, offices, and
educational institutions.
2. Special purpose computers: These computers are designed to perform scientific applications, weather
forecasting, space applications, etc.
Working principle
According to the technology used, computers can be classified into three types—analog, digital, and hybrid
computers.
1. Analog computers: These deals with analog data which represents the continuously varying physical
quantities, such as current, voltage, or frequency. They are used to measure physical quantities like
pressure, temperature, speed, etc., and to perform computation on these measurements. Examples are
thermometer and speedometer.
2. Digital computers: These operate on digital data. Input and output is in the form of on/off type (digit 1
and 0). Digital computers are based on counting operation. Any data to be manipulated by a digital
computer must be converted to a discrete (1,0) representation. The digital computers are mainly used in
office, home, and industry.
Hybrid computers: These use the combination of digital and analog computers. These computers use digital-
to-analog (DAC) and analog-to-digital (ADC) technology to deal with both types of data. They store and
process both analog and digital data. Hybrid computers are mainly used in artificial intelligence. The ECG
machine used in hospitals is an example of hybrid computer. ECG machine reads the heart beat as an analog
signal and then converts it into digital signal to print the graph.
Classification of computers according to size and storage capacity
Supercomputer: This is designed by interconnecting a number of processors. It has the highest processing
speed with multiprocessing technology. It is mainly used in weather forecasting, biomedical research, aircraft
design, remote sensing, and other areas of science and engineering. A supercomputer focuses on executing a
few programs as fast as possible. Examples of supercomputers are CRAY YMP, CRAY2, NEC SX-3, CRAY
XMP, and PARAM.
Mainframes: These are slower than the supercomputers in speed and processing power. They can support
hundreds of users simultaneously. In one way, mainframes are more powerful than supercomputers because
they support more programs simultaneously, while the supercomputer can execute a single program faster than
a mainframe. Mainframes have a very large storage capacity and can handle large database systems, such as
patient information system in a big hospital or student information system in an university. Example of
mainframes are DEC, ICL, and IBM 3000 series. The capacity of a mainframe can be a hundred or even a
thousand times that of a modern PC.
Minicomputer: This uses multiprocessing. It is capable of supporting hundreds of users simultaneously. It has
a large storage capacity and operates at a higher speed. The minicomputer is used in multi-user system where
various users can work at the same time. This type of computer is generally used for processing a large volume
of data. It is also used as a server in Local Area Networks (LAN).
Microcomputer: This has the lowest speed and storage capacity. Its CPU is a microprocessor. The 4 bit
microprocessor chip was invented first. The 8 bit microprocessor chip was used in the first microcomputer. The
microprocessor chip continues to improve 16 bit, 32 bit, and 64 bit chips. Examples of microcomputer are IBM
PC, PC-AT. The PC supports a number of input and output devices. Today‘s microcomputer is so powerful that
it can serve the purpose of a server, or sometimes that of a minicomputer that can be used as a server. The
microcomputer can be categorised as below—
Desktop computers
Desktop computers are also known as personal computer (PC). They are intended for use at a fixed location.
They consist of CPU, monitor, speaker, keyboard, and mouse. Desktop computers are easy to upgrade and
expand. They are also less expensive.
All in one computer

All in one computers are the new form of desktop PC. They have inbuilt CPU and monitor like that of a laptop.
They can also have a touch screen monitor and are mounted on a desk like a standard monitor. CPU is mounted
on the back side of the monitor. It has a USB port for connection of a mouse and keyboard.
Laptop computers
A laptop has a built-in monitor, keyboard, touch-pad, and speakers to make a fully functional computer. The
modern laptops also have touch screen, which minimises the use of a keyboard or mouse. They are called
laptops because of their small size and being light enough to be used while being placed on one‘s lap. A laptop
can perform almost all jobs of a desktop. The main components of laptop are—touchpad, battery, AC adapter
and ports. A user can work on a fully charged laptop without connecting it to a power supply for three to seven
hours. A laptop has a power cable and AC adapter designed to be used with specific type of laptop. The laptop
also have 3–4 USB ports to connect peripheral devices, a VGA or HDMI port to connect the projector and a slot
to insert a memory card.
Mobile computers
Many mobile devices work as specialised computers. These are normally used for internet, e-mail, photography,
capturing and storing images and videos. These devices are portable and consume very less space. The various
mobile computers are categorised as—tablets, smartphones, wearable devices, vehicle-mounted, handheld
computers, e-book readers, etc. The most common are tablets and smartphones, which are discussed here.
Tablets
They are handheld computers and are more portable than laptops. They use a touch sensitive screen for typing
and navigation. The size of a tablet is about 7 to 10 inches. They work on specialised operating systems such as
Android, Windows, and iOS. The iPad is an example of a tablet.
Smartphones
In addition to providing telephone services, a smartphone is designed to run a variety of applications (apps).
They are small tablet computers and can be used for web browsing, watching videos, reading e-books, and
playing games. Many apps can be installed on the smartphone which we use in our daily lives for booking
tickets, bill payment, etc.
Personal Digital Assistants (PDAs)

They are just like a mobile phone with a touch screen and keypad. They have bigger screens than mobile
phones. They use handwriting recognition software to enter text and are extremely portable and fit into pockets.
They are a powerful computer that includes satellite navigation facilities (GPS), mobile phone capability, and
versions of application software that have a limited range of functions.
Types of computers on the basis of brand

There are two types of PCs—IBM/IBM compatible Intel PC and Mac PC.
IBM PC: IBM PC began with the original IBM PC that was introduced in 1981. Other companies began
manufacturing similar computers which were called IBM Compatible.
Apple/Macintosh: Macintosh introduced the first personal computer with graphical user interface (GUI) in
1984. Macs are made by Apple Inc., and use Mac OS X (an operating system).
Input and Output Devices

Introduction
Input and output devices are required to communicate with the computer. These devices are connected to the
CPU through various ports or with the help of wireless technologies. Input devices feed data and instructions
into the computer, and output devices present information from a computer system. Output generated by the
output devices may be hardcopy or softcopy output. Hardcopy outputs are permanent outputs which can be used
later when required. They produce a permanent record on paper. Printer is a common output device, that
produces hardcopy outputs. Softcopy outputs are electronic and are available on the screen in a digital form.
They do not produce a permanent record. Monitor is a common softcopy output device.
Input Devices: An input device is used to feed data into a computer. It is also defined as a device that provides
communication between the user and the computer.
Text Input Devices

Keyboard: This is the most common input device. It is designed just like a conventional typewriter. It allows
the user to input alphabets, numbers, and other characters. It provides keys for additional functions. It detects
the key being pressed and generates the corresponding ASCII code which can be recognised by the computer.
Numeric keypad: It is a small keyboard having only numbers. It is used to enter only numeric data such as
those in ATMs. The computer keyboards also have a numeric keypad.
PIN pad: This is a device with a numeric keypad used to enter a personal identification number (PIN) of debit
card or credit card while doing the transaction.
Pointing Devices: These devices are used to move an onscreen pointer or cursor (usually an arrow). They are
commonly used with graphical user interfaces (GUIs).
Mouse
It is a small handheld device used to indicate the position of a cursor or its movement on a computer‘s screen by
rolling it over a mouse pad or flat surface. A mouse has one or more buttons and possibly a scroll wheel. This
scroll wheel is used to scroll the screen vertically or horizontally.
Light pen: It is a pointing device shaped like a pen. The tip of the light pen contains a light-sensitive element
which when placed against the screen detects the light from the screen, enabling the computer to identify the
location of the pen on the screen. Light pens have the advantage of drawing directly on the screen.
Touch screen: It is an input device that allows the user to operate by simply touching on the display screen.
Some computers, tablets, smartphones, etc., have touch-sensitive display screens. It can also be operated using a
stylus which gives more precision. Information kiosks at railway stations and bank ATMs also use touch
screens as input device.
Graphic tablet: This consists of an electronic writing area and a special pen that works with it. It allows artists
to enter natural hand movements to create graphical images with motions and actions similar to traditional
drawing tools. A stylus is used like a pen and moved over the surface of the tablet.
Touchpad: This is a pointing device found on the laptop computers in place of a mouse to control the pointer. It
allows the user to move the finger across the touchpad just as a mouse pointer does and this movement in the
form of data is sent to the computer.
Joystick: This is an input device used for playing video games, controlling training simulators and robots.
Joysticks and other game controllers can also be used as pointing devices. The joystick has a vertical stick
which can move in any direction.
Audio Visual Input Devices

Scanner: Scanning is a process of taking a close-up photograph. Scanner is an input device which functions
like a photocopying machine. It has a glass plate to place the paper which is to be scanned. Scanners can capture
information, like pictures or text, and convert it into a digital format that can be edited using a computer.
Microphone: This is used to input human voice into the computer. It is attached to a computer for the input of
sound. It accepts sound which is analogue in nature as input and converts it to digital format.
Digital camera: This can take pictures and videos and convert them into digital format. Pictures or videos taken
using a digital camera are stored inside its memory and can be transferred to a computer by connecting the
camera to it. It is a kind of small computer that controls camera focus, stores images, etc.
Webcam: It is a compact and less expensive version of a digital camera. It is used in computers for video
chatting. It does not have an internal memory. It is a very basic video camera used to feed live video into a
computer. The video data from a web cam is low quality compared to a full video camera. Applications like
Skype, Yahoo Messenger, etc., use webcam to capture images.
Closed circuit: TV (CCTV) CCTV captures the images and videos fed as input to the computers. CCTVs are
commonly used to maintain road safety and the security on premises.
Input card Readers
Smart card or chip reader: This is a plastic card that stores and transacts data. It has a tiny ‗chip‘ of computer
memory embedded inside. Data can be stored in the chip‘s memory and read back using a ‗chip‘ reader.
Magnetic strip reader: The credit cards have a magnetic strip. This strip stores the user‘s data in the form of
magnetised dots (for example, the credit card number, card expiry date, and customer name). The strip allows
inputting of this data to a computer system faster and more accurately than typing.
Input-reading Text or Codes

Entering the data in a computer using a keyboard may be a slow process and it is prone to mistakes. Sometimes
speed and accuracy may be essentially required. In such cases, the following input devices are used to read and
input the data.
Barcode or Quick Response (QR) code reader: It is a set of vertical lines of different thickness and spacing
that represent a number. These lines are read by a barcode reader or scanner. Barcode readers are devices that
are used to input data from such set of barcodes. This code is converted to an alphanumeric value and is fed to
the computer connected to it.
Optical Mark Reader (OMR): It is an input device that recognises marks made by a pencil or pen in a
multiple-choice type form. It is commonly used to check forms filled with pen or pencil and to correct MCQs of
exam papers. It can read the marks and feed that data to a computer.
Magnetic Ink Character Reader (MICR): It reads the data written by the magnetic ink. The cheque number is
printed at the bottom of each bank cheque by special magnetic ink using a special font. It can be detected by a
MICR reader. MICR reads this data and feeds it to the computer quickly and accurately.
Optical Character Recognition (OCR): This is a software technology that converts images of text into an
actual text file. To use this technology, first scan the document using the scanner. Then the scanned image is
analysed by the OCR software. The result is such that it seems the text has been typed by hand.
Input Sensors
A sensor is a device that senses the real world data (for instance, temperature) and converts it into digital data to
be processed by the computer. A computer system cannot sense the real world data such as light or dark, hot or
cold, quiet or noisy. We use our senses (eyes, ears, mouth, nose, and skin) to read such data. In the same way,
the sensor reads this kind of data and converts it into its digital equivalent.
Remote control: This is a very commonly used input device. It sends data signals each time a button is pressed
using infrared light or radio signals. The signals can control the system from some distance. It is also used to
control a presentation slide show.
Biometric sensor
It is a device that identifies unique human physical features with high accuracy. It is an essential component of a
biometric system which uses physical features like fingerprints, retina, iris patterns, etc., to identify, verify, and
authenticate the identity of the user. The three major types of biometric sensors are semiconductor sensor,
optical sensor, and ultrasound sensor.
Output Devices
These can be categorised into three types based on the output produced by the computer in the following form:
1. Soft copy
2. Hard copy
3. Sound output
Soft copy output device:

The output on the screen is called a soft copy. The soft copy output can be provided on the following devices.
Visual Display Unit (VDU)

This is an output device that visually conveys text, graphics, and video information. Information shown on a
display device is called softcopy because the information exists electronically and is displayed for a temporary
period of time.
Display devices include Cathode Ray Tube (CRT) monitors, Liquid Crystal Display (LCD) monitors,
Thin Film Transistor (TFT) monitors, Light Emitting Diode (LED) monitors, and gas plasma monitors.
Flat panel monitor

These are very thin, lightweight, and need very less power. Flat panel displays are thinner, lighter in weight,
consume less power, and emit less heat as compared to CRT monitors. They are most commonly used in
computers, especially in laptops. Different types of flat panel monitors are LCD (Liquid Crystal Display), LED
(Light Emitting Diode) and OLED (Organic LED). LCD uses liquid crystal molecules for display, LED uses
light emitting diodes for display, and OLED uses a special organic compound for display. LED displays have
better brightness.
Liquid crystal display (LCD): This display consists of liquid crystals sandwiched between two plastic plates.
These crystals rearrange to form an image when an electric current passes through them. A light source at the
back of this plate makes the picture visible. This light source can be a fluorescent lamp or LED.
Light emitting diode (LED) monitor: This uses LED directly behind the liquid crystal display (LCD) in order
to light up the screen. This technique is very effective and gives each area of the screen its own light, which can
be on or off. LED screens can produce massive contrast ratios resulting in better color quality and clarity.
Further, wider viewing angle, faster refresh rates, and power saving are its other advantages, making this
technology expensive.
Plasma monitors: A flat panel display consists of sandwiching neon or xenon gas between two sealed glass
plates with parallel electrodes deposited on their surfaces. When a voltage pulse is passed between two
electrodes, the gas lights up as different colours creating images on a monitor. Plasma monitors provide high
resolution but are also expensive.
Organic light emitting diode (OLED) monitors: The panel of OLED is made up of millions of tiny LEDs.
The ‗O‘ in OLED stands for organic which means there is carbon in the light emitting layer of the panel. OLED
screens are thinner and lighter than LCDs and LEDs. They can produce better quality images and have a better
viewing angle. OLEDs consume less power but are again very expensive.
LCD projector: This is a type of video projector used for displaying videos, images, or computer data on a
large screen or any other flat surface. Several people in a classroom can view the output on a wide screen at the
same time. It is a modern equivalent of the slide projector or overhead projector. A beam of high-intensity light
travels through thousands of shifting pixels in a LCD display. This beam of light then passes through a lens
which projects and focuses the image on the surface.
Hard copy output devices

Hard copies are tangible computer outputs. Printer and plotter are used to get a hard copy output.
Printer: This is used to produce a hard copy output. There are different kinds of printing technology. Two
factors that determine the quality of a printer are its resolution and speed. Resolution is measured in terms of
DPI. Speed is measured in terms of number of characters printed in a unit of time and is represented as
characters per second (CPS), lines per minute (LPM), or pages per minute (PPM). Based on the technology
used, they can be classified as impact or non-impact printers.
Impact printers: These use the typewriting or printing mechanism where a head or needle strikes against an
ink ribbon to make a mark on the paper. The ink ribbon used in this printer is not very expensive. It is used in
banks and shops for printing receipts, etc. Dot matrix printers fall under this category.
Dot matrix printers: Use small electromagnetically activated pins in the print head and an inked ribbon to
produce images by impact. The most commonly used printer heads consists of nine pins. Certain printers use 24
pins for better print quality. A dot matrix printer prints a letter in a grid or matrix pattern of dots.
Line Printer: The line printer also uses the similar technology but it is a fast printer which prints one row at a
time. This means it can print upto 3,000 lines per minute
Non-impact printers: These do not touch the paper while printing. And since they don‘t strike the printer head,
they are not noisy. They use different technologies to print characters on paper. Inkjet, laser, and thermal
printers fall under this category. Running cost of these printers is more expensive than impact printers.
Inkjet printers: These form the image on the page by spraying tiny droplets of ink from the print head. The
four colour ink (cyan, yellow, magenta, and black) is used to produce colour printouts. The droplets of ink come
from tiny holes (the jets).
Laser printers: These produce a good quality output. It utilises a laser beam to produce an image (through a
mirror) on a drum. The light of the laser alters the electrical charge on the drum and applies toner (dried ink) in
the cartridge. The toner powder from the toner cartridge is then sprayed onto the drum. The toner powder sticks
onto the portions traced on the drum by the laser beam. It is transferred to a paper by rolling the paper over the
drum.
Thermal printers: These produce a printed image by selectively heating heat sensitive thermal paper when it
passes over the thermal print head. The coating turns black in the areas where it is heated, producing an image.
These printers are less noisy and faster than dot matrix printers. They are also smaller, lighter, and consume less
power, making them ideal as portable printers. They are commonly used in business to print receipts in devices
such as an ATM and in printing labels.
Three dimensional (3D) printers: This is a new generation output device used to print 3D objects. It can
produce different kinds of objects in different materials and this can be done using the same printer. It can print
anything from ceramic cups to plastic toys, metal machine parts, stoneware vases, fancy chocolate cakes, etc.
SOFTWARE
As you are aware, computer cannot do anything on its own. It is the user who instructs computer; what to do,
how to do and when to do. In order to perform any task, you have to give a set of instructions in a particular
sequence to the computer. These sets of instructions are called Programs. Software refers to a set of programs
that makes the hardware perform a particular set of tasks in particular order.
System Software
When you switch on the computer the programs stored in ROM are executed which activates different units of
your computer and makes it ready for you to work on it. This set of programs can be called system software.
System softwares are sets of programs, responsible for running the computer, controlling various operations of
computer systems and management of computer resources. Operating System (OS) falls under this category.
An operating system is system software that provides an interface for a user to communicate with the computer,
manages hardware devices (disk drives, keyboard, monitor, etc), manages and maintains disk file systems and
supports application programs. Some popular Operating systems are UNIX, Windows and Linux.
Application Software
Application software is a set of programs, which are written to perform specific tasks, for example: An
application package for managing library known as library information system is used to manage information
of library such as: keeping book details, account holder details, book issue details, book return details etc.
Another application package for managing student details is called student’s information system, manages
student‘s roll no, name, parents name, address, class, section, processing of examination results etc. Application
software can be broadly classified into two types:
(a) Generalized packages
(b) Customized packages
Generalized Packages
These are user friendly softwares written to cater to user‘s very general needs such as preparing documents,
drawing pictures, database to manage data/information, preparing presentations, play games etc.
It is a group of programs that provide general purpose tools to solve specific problems. Some of the generalized
packages are listed below:
 Word Processing Software(for preparing documents): Word Perfect, MS-Word, OpenOffice.org
Writer
 Spreadsheets (Data Analysis): Lotus Smart suites, MSExcel, OpenOffice.org Calc, Apple Numbers
 Presentations : Presentation Graphics, MS-PowerPoint, OpenOffice.org Impress
 Database Management System: MS-Access, OpenOffice.org Base, MS-SQL Server, ORACLE
 Graphics Tools: Paint shop pro, Adobe Photoshop
Customized Packages: These are the applications that are customized (or developed) to meet the specific
requirements of an organization/institution. For Example: Student information details, Payroll packages,
inventory control etc. These packages are developed using high-level computer language.
COMPUTER LANGUAGES
Languages are a means of communication. Normally people interact with each other through a language. On the
same pattern, communication with computers is carried out through a language. This language is understood
both by user and the machine. Just as every language like English, Hindi has its grammatical rules; every
computer language is bound by rules known as SYNTAX of that language. The user is bound by that syntax
while communicating with the computer system.
Computer languages are broadly classified as:

1. Low Level Language: The term low level means closeness to the way in which machine understand. The
low level languages are:
a. Machine Language: This is the language (in the form of 0‘s and 1‘s, called binary numbers)
understood directly by the computer. It is machine dependent. It is difficult to learn and even more
difficult to write programs.
b. Assembly Language: This is the language where the machine codes comprising of 0‘s and 1‘s are
substituted by symbolic codes (called mnemonics) to improve their understanding. It is the first step to
improve programming structure.
Assembly language programming is simpler and less time consuming than machine level programming, it is
easier to locate and correct errors in assembly language than in machine language programs. It is also machine
dependent. Programmers must have knowledge of the machine on which the program will run.
2. High Level Language

You know that low level language requires extensive knowledge of the hardware since it is machine dependent.
To overcome the limitation, high level language has been evolved which uses normal English like, easy to
understand statements to solve any problem. Higher level languages are computer independent and
programming becomes quite easy and simple. Various high level languages are given below:
 BASIC (Beginners All Purpose Symbolic Instruction Code): It is widely used, easy to learn general
purpose language. Mainly used in microcomputers in earlier days.
 COBOL (Common Business Oriented language): A standardized language used for commercial
applications.
 FORTRAN (Formula Translation): Developed for solving mathematical and scientific problems. One
of the most popular languages among scientific community.
 C: Structured Programming Language used for all purpose such as scientific application, commercial
application, developing games etc.
 C++: Popular object oriented programming language, used for general purpose.
MS Office Applications & its Functions
Currently, MS Office 2016 version is being used across the world and all its applications are widely used for
personal and professional purposes.
Discussed below are the applications of Microsoft Office along with each of their functions.
1. MS Word
 First released on October 25, 1983
 Extension for Doc files is ―.doc‖
 It is useful in creating text documents
 Templates can be created for Professional use with the help of MS Word
 Work Art, colours, images, animations can be added along with the text in the same file which is
downloadable in the form of a document
 Authors can use for writing/ editing their work
2. MS Excel
 Majorly used for making spreadsheets
 A spreadsheet consists of grids in the form of rows and columns which is easy to manage and can be
used as a replacement for paper
 It is a data processing application
 Large data can easily be managed and saved in tabular format using MS Excel
 Calculations can be done based on the large amount of data entered into the cells of a spreadsheet within
seconds
 File extension, when saved in the computer, is ―.xls‖
3. MS PowerPoint
 It was released on April 20, 1987
 Used to create audiovisual presentations
 Each presentation is made up of various slides displaying data/ information
 Each slide may contain audio, video, graphics, text, bullet numbering, tables etc.
 The extension for PowerPoint presentations is ―.ppt‖
 Used majorly for professional usage
 Using PowerPoint, presentations can be made more interactive
4. MS Access
 It was released on November 13, 1992
 It is Database Management Software (DBMS)
 Table, queries, forms and reports can be created on MS Access
 Import and export of data into other formats can be done
 The file extension is ―.accdb‖
5. MS Outlook
 It was released on January 16, 1997
 It is a personal information management system
 It can be used both as a single-user application or multi-user software
 Its functions also include task managing, calendaring, contact managing, journal logging and web
browsing
 It is the email client of the Office Suite
 The file extension for an Outlook file is ―.pst‖
6. MS OneNote
 It was released on November 19, 2003
 It is a note-taking application
 When introduced, it was a part of the Office suite only. Later, the developers made it free, standalone
and easily available at play store for android devices
 The notes may include images, text, tables, etc.
 The extension for OneNote files is ―.one‖
 It can be used both online and offline and is a multi-user application
Internet
Basics of Internet, Intranet, E-mail, Audio and Video-conferencing
Basic of Internet
 The Internet is a worldwide telecommunications system that provides connectivity for millions of other,
smaller networks; therefore, the Internet is often referred to as a network of networks.
 The World Wide Web—usually called the Web for short—is a collection of different websites you can
access through the Internet.
 Internet Service Provider- an ISP offers a variety of services for a variety of prices: web page access,
email, web page hosting and so on. Most ISPs offer various internet connection speeds for a monthly fee
 A browser is a program that allows you to interact and view the internet and contents of the Web. The
Web Browser, Internet Explorer, or IE is developed by Microsoft and comes pre-installed when you buy
a Windows computer.
 A browser is a free software package or mobile app that lets you view web pages, graphics, and most
online content. The most popular web browsers include Chrome, Firefox, Internet Explorer, and
Safari, but there are many others.
 A webpage is what you see in your browser when you are on the internet. Think of the webpage as a
page in a magazine. You may see text, photos, images, diagrams, links, advertisements and more on any
page you view.
 Uniform Resource Locators—URLs— are the web browser addresses of internet pages and files.
 URLs consist of three parts to address a page or file:
 The protocol is the portion ending in //: Most web pages use the protocol http or https, but there are
other protocols.
 The host or top-level domain, which frequently ends in .com, .net, .edu or .org but can also end in one of
many others that have been officially recognized.
 The filename or page name itself.
 A domain name is the unique, alphabetically-based part of a URL. This domain name can be officially
registered with a domain registrar by a person, business, or non-profit organization
 The top level domain name that designates what kind of site it is; for example, .com (for commercial
domains), .org (organizations), .edu (for educational institutions).
 Domain name system- An Internet address has four fields with numbers that are separated by periods or
dots. This type of address is known as an IP address. Rather than have the user remember long strings of
numbers, the Domain Name System (DNS) was developed to translate the numerical addresses into
words.
 SSL- The acronym SSL stands for Secure Sockets Layer. SSL is a secure encryption Web protocol
used to make data safe when transmitted over the Internet.
 Web Hosting- A web host is a business/company that offers space, storage, and connectivity in order to
enable a website to be viewed by Internet users.
 Web Server- The Term Web server refers to a specialized computer system or dedicated server
specifically designed to host or deliver Web sites.
 Hypertext Markup Language is the programming language of webpages. HTML commands your web
browser to display text and graphics in a specific fashion. Beginning internet users don‘t need to know
HTML coding to enjoy the webpages the programming language delivers to browsers.
 XML is eXtensible Markup Language, a cousin to HTML. XML focuses on cataloging and databasing
the text content of a web page.
 XHTML is a combination of HTML and XML.
 HTTP- The client/server protocol used to exchange hypertext documents is called HTTP (HyperText
Transport Protocol). The main thing you need to know is that HTTP is a language spoken between
your web browser (client software) and a web server (server software) so that they can communicate
with each other and exchange files
Basic of Intranet
 An intranet is a private network that is contained within an enterprise. It may consist of many interlinked
local area networks and also use leased lines in the wide area network.
 The main purpose of an intranet is to share company information and computing resources among
employees.
 Today‘s working environment often means colleagues are no longer present in the same room at the
same time, but separated by large distances. This can make teamwork and face-to-face interaction
difficult – unless an intranet with the latest communication and collaboration tools is available
 Typically, larger enterprises allow users within their intranet to access the public Internet through
firewall servers that have the ability to screen messages in both directions so that company security is
maintained.
 Extranet refers to network within an organization, using internet to connect to the outsiders in controlled
manner. It helps to connect businesses with their customers and suppliers and therefore allows working
in a collaborative manner.
Basic of Email
 Electronic mail is a method of exchanging messages between people using electronic devices. Invented
by Ray Tomlinson, email first entered limited use in the 1960s and by the mid-1970s had taken the form
now recognized as email.
 Email, short for Electronic Mail, consists of messages which are sent and received using the Internet.
There are many different email services available that allow you to create an email account and send and
receive email and attachments, many of which are free.
 Today, the top three webmail providers are Yahoo!, Microsoft‘s Outlook.com (previously Hotmail),
and Google‘s Gmail.
 Many people also have an email address hosted by their company, school, or organization. These email
addresses are usually for professional purposes.
The first five lines of an E-mail message is called E-mail header. The header part comprises of following fields:
 From
 Date
 To
 Subject
 CC
 BCC
Email Protocols: IMAP, POP3, SMTP and HTTP

E-mail Protocols are set of rules that help the client to properly transmit the information to or from the mail
server.
 POP3 (Post Office Protocol 3)- This is a simple, standardized protocol that allows users to access their
mailboxes on the Internet and download messages to their computers. The simple design of POP3 allows
casual email users who have a temporary Internet connection (dial-up access) to access emails. They can
read their emails, draft new emails or reply to emails while they are offline, and can send these emails
when they are back online.
 IMAP (Internet Message Access Protocol)– This is a standard protocol used for email transfer by
users. Like POP3, it also supports both online and offline modes of email access. The email message is
downloaded to the user‘s machine only when a specific request is made to read it. Users can download
mails to their computers while keeping a copy on the server. The mails on the server are the primary
copy and anything changed on the local machine is updated by what is on the serve
 SMTP (Simple Mail Transfer Protocol)– As the name suggests, SMTP is a simple, text-based
protocol that works best when devices are interconnected to each other. However, SMTP protocol can
only be used to send emails. Unlike POP3 and IMAP protocols, SMTP does not provide the
functionality to the users to retrieve emails from the server. This limits the use of SMTP to some extent.
One of the main issues with SMTP is the lack of sender email authentication. SMTP lacks security
features too and thus users get spam emails.
Basic of Audio and Video-conferencing

 When a number of participants of a meeting use telephonic instruments to communicate with each other
then it is known as audio conferencing
 When two or more people use digital platforms communicate and collaborate with each other to achieve
a common goal effectively then it is known as a video conferencing mode of communication or a tool of
face-to-face conferencing.
 There are many online tools, incorporating a range of options from free one-to-one audio conferencing
all the way to more sophisticated and expensive tools such as Polycom which allow multiple sites with
entire classes participating using video and audio.
 Most Popular Video Conferencing Software
o Skype
o Zoom
o Cisco WebEx.
o GoToMeeting
o Zoho Cliq.
o Workplace by Facebook.
 Web conferencing involves sharing content live over the web between two or more locations. Visual
material is usually accompanied by an audio track.
What is a computer network?
 A computer network comprises two or more computers that are connected—either by cables (wired) or
WiFi (wireless)—with the purpose of transmitting, exchanging, or sharing data and resources. You build
a computer network using hardware (e.g., routers, switches, access points, and cables) and software
(e.g., operating systems or business applications).
 Geographic location often defines a computer network. For example, a LAN (local area network)
connects computers in a defined physical space, like an office building, whereas a WAN (wide area
network) can connect computers across continents. The internet is the largest example of a WAN,
connecting billions of computers worldwide.
 You can further define a computer network by the protocols it uses to communicate, the physical
arrangement of its components, how it controls traffic, and its purpose.
 Computer networks enable communication for every business, entertainment, and research purpose. The
internet, online search, email, audio and video sharing, online commerce, live-streaming, and social
networks all exist because of computer networks.
Computer network types

As networking needs evolved, so did the computer network types that serve those needs. Here are the most
common and widely used computer network types:
 LAN (local area network): A LAN connects computers over a relatively short distance, allowing them
to share data, files, and resources. For example, a LAN may connect all the computers in an office
building, school, or hospital. Typically, LANs are privately owned and managed.
 WLAN (wireless local area network): A WLAN is just like a LAN but connections between devices
on the network are made wirelessly.
 WAN (wide area network): As the name implies, a WAN connects computers over a wide area, such
as from region to region or even continent to continent. The internet is the largest WAN, connecting
billions of computers worldwide. You will typically see collective or distributed ownership models for
WAN management.
 MAN (metropolitan area network): MANs are typically larger than LANs but smaller than WANs.
Cities and government entities typically own and manage MANs.
 PAN (personal area network): A PAN serves one person. For example, if you have an iPhone and a
Mac, it‘s very likely you‘ve set up a PAN that shares and syncs content—text messages, emails, photos,
and more—across both devices.
 SAN (storage area network): A SAN is a specialized network that provides access to block-level
storage—shared network or cloud storage that, to the user, looks and works like a storage drive that‘s
physically attached to a computer. (For more information on how a SAN works with block storage, see
Block Storage: A Complete Guide.)
 CAN (campus area network): A CAN is also known as a corporate area network. A CAN is larger
than a LAN but smaller than a WAN. CANs serve sites such as colleges, universities, and business
campuses.
 VPN (virtual private network): A VPN is a secure, point-to-point connection between two network
end points (see ‗Nodes’ below). A VPN establishes an encrypted channel that keeps a user‘s identity
and access credentials, as well as any data transferred, inaccessible to hackers.
Important terms and concepts
The following are some common terms to know when discussing computer networking:
IP address: An IP address is a unique number assigned to every device connected to a network that uses the
Internet Protocol for communication. Each IP address identifies the device‘s host network and the location of
the device on the host network. When one device sends data to another, the data includes a ‗header‘ that
includes the IP address of the sending device and the IP address of the destination device.
Nodes: A node is a connection point inside a network that can receive, send, create, or store data. Each node
requires you to provide some form of identification to receive access, like an IP address. A few examples of
nodes include computers, printers, modems, bridges, and switches. A node is essentially any network device
that can recognize, process, and transmit information to any other network node.
Routers: A router is a physical or virtual device that sends information contained in data packets between
networks. Routers analyze data within the packets to determine the best way for the information to reach its
ultimate destination. Routers forward data packets until they reach their destination node.
Switches: A switch is a device that connects other devices and manages node-to-node communication within a
network, ensuring data packets reach their ultimate destination. While a router sends information between
networks, a switch sends information between nodes in a single network. When discussing computer networks,
‗switching‘ refers to how data is transferred between devices in a network. The three main types of switching
are as follows:
 Circuit switching, which establishes a dedicated communication path between nodes in a network. This
dedicated path assures the full bandwidth is available during the transmission, meaning no other traffic
can travel along that path.
 Packet switching involves breaking down data into independent components called packets which,
because of their small size, make fewer demands on the network. The packets travel through the network
to their end destination.
 Message switching sends a message in its entirety from the source node, traveling from switch to switch
until it reaches its destination node.
Ports: A port identifies a specific connection between network devices. Each port is identified by a number. If
you think of an IP address as comparable to the address of a hotel, then ports are the suites or room numbers
within that hotel. Computers use port numbers to determine which application, service, or process should
receive specific messages.
Network cable types: The most common network cable types are Ethernet twisted pair, coaxial, and fiber optic.
The choice of cable type depends on the size of the network, the arrangement of network elements, and the
physical distance between devices.
Examples of computer networks

The wired or wireless connection of two or more computers for the purpose of sharing data and resources form
a computer network. Today, nearly every digital device belongs to a computer network.
 In an office setting, you and your colleagues may share access to a printer or to a group messaging
system. The computing network that allows this is likely a LAN or local area network that permits your
department to share resources.
 A city government might manage a city-wide network of surveillance cameras that monitor traffic flow
and incidents. This network would be part of a MAN or metropolitan area network that allows city
emergency personnel to respond to traffic accidents, advise drivers of alternate travel routes, and even
send traffic tickets to drivers who run red lights.
 The Weather Company worked to create a peer-to-peer mesh network that allows mobile devices to
communicate directly with other mobile devices without requiring WiFi or cellular connectivity. The
Mesh Network Alerts project allows the delivery of life-saving weather information to billions of
people, even without an internet connection.
Computer networks and the internet

The internet is actually a network of networks that connects billions of digital devices worldwide. Standard
protocols allow communication between these devices. Those protocols include hypertext transfer protocol (the
‗http‘ in front of all website addresses).
Internet protocol (or IP addresses) is the unique identifying numbers required of every device that accesses the
internet. IP addresses are comparable to your mailing address, providing unique location information so that
information can be delivered correctly.
Internet Service Providers (ISPs) and Network Service Providers (NSPs) provide the infrastructure that
allows the transmission of packets of data or information over the internet. Every bit of information sent over
the internet doesn‘t go to every device connected to the internet. It‘s the combination of protocols and
infrastructure that tells information exactly where to go.
How do they work?

Computer networks connect nodes like computers, routers, and switches using cables, fiber optics, or wireless
signals. These connections allow devices in a network to communicate and share information and resources.
Networks follow protocols, which define how communications are sent and received. These protocols allow
devices to communicate. Each device on a network uses an Internet Protocol or IP address, a string of numbers
that uniquely identifies a device and allows other devices to recognize it.
Routers are virtual or physical devices that facilitate communications between different networks. Routers
analyze information to determine the best way for data to reach its ultimate destination. Switches connect
devices and manage node-to-node communication inside a network, ensuring that bundles of information
traveling across the network reach their ultimate destination.
Architecture
Computer network architecture defines the physical and logical framework of a computer network. It outlines
how computers are organized in the network and what tasks are assigned to those computers. Network
architecture components include hardware, software, transmission media (wired or wireless), network topology,
and communications protocols.
Main types of network architecture

There are two types of network architecture: peer-to-peer (P2P) and client/server. In P2P architecture, two or
more computers are connected as ―peers,‖ meaning they have equal power and privileges on the network. A
P2P network does not require a central server for coordination. Instead, each computer on the network acts as
both a client (a computer that needs to access a service) and a server (a computer that serves the needs of the
client accessing a service). Each peer makes some of its resources available to the network, sharing storage,
memory, bandwidth, and processing power.
In a client/server network, a central server or group of servers manage resources and deliver services to client
devices in the network. The clients in the network communicate with other clients through the server. Unlike
the P2P model, clients in a client/server architecture don‘t share their resources. This architecture type is
sometimes called a tiered model because it's designed with multiple levels or tiers.
Network topology
Network topology refers to how the nodes and links in a network are arranged. A network node is a device that
can send, receive, store, or forward data. A network link connects nodes and may be either cabled or wireless
links.
Understanding topology types provides the basis for building a successful network. There are a number of
topologies but the most common are bus, ring, star, and mesh:
A bus network topology is when every network node is directly connected to a main cable.
In a ring topology, nodes are connected in a loop, so each device has exactly two neighbors. Adjacent pairs are
connected directly; non-adjacent pairs are connected indirectly through multiple nodes.
In a star network topology, all nodes are connected to a single, central hub and each node is indirectly
connected through that hub.
A mesh topology is defined by overlapping connections between nodes. You can create a full mesh topology,
where every node in the network is connected to every other node. You can also create partial mesh topology in
which only some nodes are connected to each other and some are connected to the nodes with which they
exchange the most data. Full mesh topology can be expensive and time-consuming to execute, which is why it's
often reserved for networks that require high redundancy. Partial mesh provides less redundancy but is more
cost effective and simpler to execute.
Security
Computer network security protects the integrity of information contained by a network and controls who
access that information. Network security policies balance the need to provide service to users with the need to
control access to information.
There are many entry points to a network. These entry points include the hardware and software that comprise
the network itself as well as the devices used to access the network, like computers, smartphones, and tablets.
Because of these entry points, network security requires using several defense methods. Defenses may include
firewalls—devices that monitor network traffic and prevent access to parts of the network based on security
rules.
Processes for authenticating users with user IDs and passwords provide another layer of security. Security
includes isolating network data so that proprietary or personal information is harder to access than less critical
information. Other network security measures include ensuring hardware and software updates and patches are
performed regularly, educating network users about their role in security processes, and staying aware of
external threats executed by hackers and other malicious actors. Network threats constantly evolve, which
makes network security a never-ending process.
The use of public cloud also requires updates to security procedures to ensure continued safety and access. A
secure cloud demands a secure underlying network.
Mesh networks
As noted above, a mesh network is a topology type in which the nodes of a computer network connect to as
many other nodes as possible. In this topology, nodes cooperate to efficiently route data to its destination. This
topology provides greater fault tolerance because if one node fails, there are many other nodes that can transmit
data. Mesh networks self-configure and self-organize, searching for the fastest, most reliable path on which to
send information.
Type of mesh networks
There are two types of mesh networks—full mesh and partial mesh:
In a full mesh topology, every network node connects to every other network node, providing the highest level
of fault tolerance. However, it costs more to execute. In a partial mesh topology, only some nodes connect,
typically those that exchange data most frequently.
A wireless mesh network may consist of tens to hundreds of nodes. This type of network connects to users over
access points spread across a large area.
Load balancers and networks

Load balancers efficiently distribute tasks, workloads, and network traffic across available servers. Think of
load balancers like air traffic control at an airport. The load balancer observes all traffic coming into a network
and directs it toward the router or server best equipped to manage it. The objectives of load balancing are to
avoid resource overload, optimize available resources, improve response times, and maximize throughput.
Content delivery networks

A content delivery network (CDN) is a distributed server network that delivers temporarily stored, or cached,
copies of website content to users based on the user‘s geographic location. A CDN stores this content in
distributed locations and serves it to users as a way to reduce the distance between your website visitors and
your website server. Having cached content closer to your end users allows you to serve content faster and helps
websites better reach a global audience. CDNs protect against traffic surges, reduce latency, decrease bandwidth
consumption, accelerate load times, and lessen the impact of hacks and attacks by introducing a layer between
the end user and your website infrastructure.
Central Reservation System (Computerized Reservation System)

What is a hotel CRS?
A Central Reservation System, or CRS, is a technology that lies at the heart of a hotel‘s functions. It‘s a
computerized system that contains the hotel‘s availability, rates, and inventory (ARI) data and helps manage
online and offline bookings. With the help of the channel manager that we discuss below, it distributes the hotel
information to various sales channels — such as GDSs, OTAs, independent travel agents, and its own website,
— synchronizes reservations, and processes transactions.
 Application Programming Interface- API
 Central Reservation System- CRS
 Availability, Rates, and Inventory- ARI
 Global Distribution System- GDS
 Online Travel Agents (OTA)
 Property Management Software- PMS
Implementing CRS increases overall efficiency due to the automation of numerous processes, i.e. immediately
updating the hotel‘s ARI across all distribution channels or sending confirmation emails. Obviously, that speeds
up performance, minimizes errors caused by manual operation, and reduces the cost of human labor. Also, the
CRS booking capabilities provide an easy way for customers to manage their own reservations which increases
their satisfaction and loyalty.
Another benefit involves providing better visibility into the booking activity and other related data, allowing for
more comprehensive planning, forecasting, and marketing.
PMS, CRS, channel manager, and booking engine — differences and integration
Sometimes the concepts of PMSs, CRSs, channel managers, and booking engines are understandably conflated
as they are closely related and have some overlapping functions. Let‘s see how they work and what the
distinctions are.
A property management system, or PMS, is software that helps manage all the operations in a hotel from
catering to accounting with a CRS usually being its main module. We have an all-encompassing article about
how a PMS and all its parts work.
A CRS is either included in the PMS or can be a stand-alone solution. It‘s closely related to the front-desk, as it
passes all the information about the new reservations for further processing, and revenue management modules
of the PMS, as it makes price changes according to certain variables, thus influencing revenue.
The channel manager connects the PMS and all distribution interfaces. It collects information about the room
availability and rates from the CRS and shares it across multiple channels, such as GDSs, OTAs, wholesalers,
metasearch sites, and the hotel‘s own website through different types of APIs. As rooms get booked, it syncs
the inventory information throughout all the online platforms to prevent overbooking and also maintains rate
parity. A channel manager can also come as a part of the comprehensive PMS, as part of the CRS if the latter is
designed separately, or as independent software to be integrated with the existing hotel software.
A booking engine is software that is integrated into the hotel‘s website and social media pages that helps
customers book, pay for, and manage their stay directly. It gets the ARI from the CRS through the channel
manager and sends back the booker‘s reservation information.
Hotel search and booking process steps

Hotel reservation software is designed to automate and facilitate all the booking-related processes. So, let‘s take
a closer look at how reservations are created and how technology is involved. A typical hotel reservation
process can be broken down into several steps as described below.
1. Through a channel manager allows this to be done in a flash, pulling the data from the CRS and shooting
it back to the booker.
2. Receiving a reservation request. If the booker is satisfied with the rate and decides to stay at your
hotel, the reservation request is created with the help of the booking engine (either the booking engine
on your side or the OTA‘s, depending on the channel) and sent to the CRS. It contains all the essential
information about the number of guests, arrival and departure dates, room type, contact details, special
requests, etc.
3. Confirming and blocking. In case the requested room is still available, it has to be blocked to prevent
double-booking. At the same time, a reservation record is created in the CRS that contains all the
information related to this booking. An email notification is then generated and sent to the booker to
confirm the reservation. Also, it usually contains payment details and cancellation policy.
4. Receiving payment. This step is optional as many guests still prefer to pay on arrival. Many OTAs do
not require paying in advance, but having a secure payment tool included in your booking engine is a
big advantage, as it gives travelers the opportunity to pay in a convenient way and save time during
check-in.
5. Transferring information to other departments. The reservation record shares all the reservation
details with other PMS modules. For example, the housekeeping staff has to be informed about all the
expected arrivals in order to appropriately prepare all the reserved rooms; the front desk should have all
the information to ensure a smooth guest check-in; the reporting module uses this data to create reports,
and so on.
6. Optional reservation modifications. Prior to arrival, the booking details might be adjusted. A guest
might want to change arrival or departure dates, type of room or desired amenities, number of visitors,
etc. If that happens, changes have to be confirmed by the hotel, registered in the reservation record, and
shared with other modules.
7. Cancellations. Sometimes reservations are cancelled. In this case, the room has to be unblocked to
allow for further booking, and, if prepayment took place, a refund has to be issued (if envisaged by the
hotel‘s policy). As soon as availability changes in the CRS, the channel manager shares this information
across different channels.
CRS functionality
Depending on the software you choose for your hotel, the number of features offered can be different. Some
CRSs only have the basic reservation functionality, while others provide a comprehensive solution having the
capabilities traditionally inherent in other modules of the PMS. Let‘s take a look at the possible options.
Key reservation features of the CRS

Most CRSs provide similar capabilities to manage the hotel‘s reservations. Here are the main features
mandatory for a modern hotel to facilitate and streamline the booking process.
Reservations management and synchronization — Keeping track of your reservations can be challenging,
especially if you have multiple properties and work with various distribution channels. CRS provides you with
an effective mechanism to immediately synchronize all the bookings in one system, not allowing double-
booking or overbooking rooms.
Email notifications — besides sending regular booking confirmation and a payment receipt, email automation
can be used for promotional purposes, personalized offers, and encouraging feedback.
Group bookings — sometimes there is a need to reserve multiple rooms with a variety of room types and rates,
i.e., for a wedding or a big group reunion. A multi-room booking feature facilitates this procedure and allows
for making all the necessary arrangements effortlessly.
Cancellations and refund management — this feature allows for handling cancellations, updating room
availability in all channels, and automating the refund process.
Integration options — your CRS software has to allow for smooth integration with other solutions and
technologies you are already using or planning to implement.
Additional features that come integrated with CRS

A lot of CRS providers offer products with the booking engine, mobile application, and/or channel manager
already integrated. That can save you time and money for establishing the connection between separate products
and provide better cooperation between these modules. Let‘s see what those additional functions are and what
they can help you with.
Direct booking (booking engine and website) — With OTAs charging up to 30 percent commission, it‘s
critical for hotels to encourage direct bookings. This isn‘t possible without a modern, mobile-optimized booking
engine integrated with the hotel‘s website. A good online booking system gives an advantage over competitors
as many small hotels still lack online booking capability, and thus, can‘t use their website‘s full potential. Some
providers offer website white labels. They are pre-integrated with a booking engine and have all content
management capabilities ready. The only thing a hotelier should do is customize the look to match brand
identity.
Today, 90 percent of travelers expect a personalized experience when they plan their trips. So besides
displaying the ARI information and processing reservations, a booking engine has to provide personalization
options like sending special requests, scheduling an airport transfer, pre-stocking room with preferred amenities,
or a ―choose your own room‖ feature as in Hilton hotels.
Online payments — today, a lot of customers still prefer to pay at the front desk on arrival to the hotel, even if
they booked the accommodation online (i.e., through an OTA). Since the share of online payments keeps
increasing, providing your guests with a secure payment option is essential. Normally, it comes as one of the
booking engine‘s features, but it‘s still necessary to research deeper and decide on the payment gateway type
and provider to work with.
Supporting multi-language and multi-currency — to attract visitors from abroad, it‘s important to offer
translated versions of the interface and automatically convert rates to different currencies. NB: 53 percent of
people said that they get frustrated when they see a price in a currency other than their own when looking for a
hotel.
Mobile app — today, over 50 percent of the total online traffic comes from mobile devices. Studies show that
two-thirds of millennials plan their trip on mobile devices, 64 percent booked a hotel from a smartphone, and 23
percent have checked in using a mobile device.
Compared to websites, applications are usually more user friendly and suggest a variety of features for customer
convenience, not mentioning building brand awareness. For instance, the apps of big chains such as Hilton or
Marriott allow their guests to find nearby hotels, create and manage their reservations, check in and check out
on their own, receive special offers, find attractions or restaurants in the area, use smartphones as digital keys,
get driving directions, find friends nearby, and even have a virtual tour of the property.
Channel manager — if it comes together with the CRS, it‘s nothing but convenient. As we already mentioned,
this tool allows you to manage your distribution across various online platforms. More about different channels
is in the next section.
Additional features that overlap with other systems in a PMS

A lot of providers now offer the all-in-one products that include a broad variety of built-in capabilities, typically
characteristic of other solutions, i.e., customer relationship management (CRM), a revenue management system
(RMS), or customer support. Here are some of those related additional features.
Rate management — it allows for creating dynamic pricing rules, rate plans and restrictions, set up season or
weekend prices, assigning different rates for different channels, generating geo-targeted promotions, and more.
You can have your rates changed automatically depending on market demand or your hotel occupancy, or it can
set up special discounts for such categories as senior citizens, military personnel, war widows, etc. to encourage
additional bookings.
Profiles management (CRM) — collecting customer data is crucial for providing a personalized experience
and increasing customer satisfaction and loyalty. So, all the information such as contact details, payment
preferences, past stay experiences, membership status, special rates, etc., has to be stored for future reference
and providing customized offers. There can be different categories of guest profiles, i.e., individual, group,
corporate, and more. If you already have a CRM, check whether it can be integrated with the reservation system
in question or consider migrating to a new one that includes a CRS.
Data collection and reporting — you can maintain control of all the reservation-related processes with the
help of the reporting feature. Keep track of expected arrivals, total booking activity, occupancy, revenue, and
more. All the statistics data can then be turned into the basis for further analysis and forecasting. Check out our
dedicated article about hotel data management for more details.
Customer support — research shows that almost 70 percent of people are inclined to spend more money with
a company that provides great customer service and about 97 percent will share with others if they had an
excellent customer service experience. Obviously, providing your guests with an opportunity to contact you
24/7 with any issue or inquiry and receive professional assistance is vital.
Hotel distribution channels: GDSs, OTAs, metasearch engines, etc.

Even though nowadays the emphasis on direct booking is growing, using different distribution channels is vital.
Connecting your CRS with various platforms makes your property visible and accessible to thousands of
travelers and travel agents, thus attracting more guests and increasing your revenue.
Fuel Travel research shows that almost 44 percent of leisure travelers start their search for accomodations with
an internet search provider such as Google, Yahoo, or Bing, and more than 18 percent – on an OTA website
(Booking.com, Expedia.com, or others). Another 30 percent go to review providers, vacation rental websites,
deal sites, social media, or use other online sources which adds up to almost 92 percent of people searching for
hotel information online!
When choosing a CRS, you might want to consider different integration options and choose the distribution
channels that suit your hotel best and can be most profitable.
GDS for corporate travel
Many companies prefer to use global distribution systems, or GDSs, to organize their corporate travel as it lets
traveler‘s book flights, accommodation, and other activities in one system. If your hotel is located in the
downtown or business area and there is a lot of business travel going on, it can be a great option for you to
increase your bookings. Besides, thousands of OTAs and travel agents work with the GDS database.
A lot of CRS providers have a channel manager as part of the solution and offer direct connectivity with major
GDSs. They enable a single point of entry so that you don‘t have to sign up for each one individually. As for
pricing, you have to pay a small initial setup fee to sign up, and then you pay transaction fees for confirmed
bookings.
Once your hotel system has integration with a GDS, the process is fairly simple. Live rates and inventories are
sent directly to a GDS from the hotel‘s CRS. Travel agents and booking websites can then request this data and
make reservations. When a new booking is made, the information is immediately passed back to the CRS to
update availability across other channels.
OTAs as the main distribution channel

Online travel agencies, or OTAs, spend a large share of their revenue on marketing, thus having a significantly
higher customer reach. Besides, they provide a variety of options to choose from and an easy way to compare
prices. Therefore, even though OTAs charge frustrating commissions, it‘s almost impossible to increase your
bookings without integrating with at least major ones — and then encourage customers to book directly in the
future.
Most providers offer integration with numerous OTAs. It is not common though that a CRS connects directly to
OTAs. Normally, it‘s done through a channel manager (actually, Booking.com doesn‘t even accept direct
connections; it‘s only possible via a channel manager) that lets you integrate with a number of OTAs and sync
your inventory properly.
The procedure is similar to the previous one and involves establishing a two-way integration. After sending in
your hotel‘s information and agreeing on the commission rate, your hotel‘s description and inventory are listed
on the OTA’s website, allowing visitors to check your rates, pictures, reviews, and other information, and make
reservations. The details are then sent to your CRS, changing availability throughout the channels.
Metasearch as the biggest search starter

Connecting to metasearch engines is another way to generate traffic, as the role of, say, Google and Tripadvisor
in today‘s travel research process can‘t be overstated. These sites don‘t allow for making reservations, but
similar to OTAs they use your hotel‘s information to present a consolidated offer, letting customers choose
between options. Afterwards, they redirect visitors to your hotel‘s website to complete the booking. You only
pay for advertising, saving on OTA commission. To make maximum profit from this channel, you have to have
a strong marketing and advertising strategy, an attractive profile, and a well-designed website with a convenient
booking engine.
A lot of CRS providers have a metasearch management tool integrated that pulls rates and availability
information from the booking engine and displays it on different metasearch websites. It can process numerous
inquiries from those sites.
Every metasearch engine has its own procedure for connection. For example, to be listed on Kayak, you can
either connect via your booking engine, or have your property on one of the OTA websites they work with
(though in this case, the booking will be done through an OTA with the corresponding commission).
Tripadvisor gives instructions for hotels to set up the API connection and enable booking, and Google offers the
Hotel Ads option with a set of guidelines to get listed, unless, again, your CRS provider doesn‘t offer those
integrations.
Wholesalers to contract allotments

Wholesalers, or bed banks, are intermediaries that buy rooms in bulk at a discounted price and then resell them
to travel providers such as travel agents, tour operators, or OTAs. That generates volume and guarantees
occupancy. Wholesalers either sign 1-year contracts directly with hotels with a net rate, or they contract a so-
called best available rate that can be adjusted through a channel manager. In many cases, wholesalers contract
allotments, or blocks of rooms that are pre-negotiated and bought out, i.e., for a season or specific dates.
Bed banks can be a good channel to increase distribution. However, before choosing who to partner with, it‘s
important to consider the discounts you are ready to offer. Other issues include possible discrepancy in the
services offered, limited control over end price, and rate parity violations.
Social media to reach customers where they spend most of their time
Today, social media sites are growing in importance. Here are some previously unimaginable 2020 stats: More
than half of the world‘s population is using social media, spending an average of 2 hours 24 minutes per day,
which would total 6 years 8 months per life! No wonder social media became a powerful marketing tool and
can‘t be neglected when it comes to advertising. People spend more time on social media than anywhere else
online. So, if you want to increase bookings, you have to reach your customers right where they are.
Booking engine on the hotel’s website for direct bookings

However, relying only on indirect distribution channels would be a huge mistake, as an overwhelming 86.7
percent of travelers visit the hotel‘s own website before booking. Thus, it is crucial to develop and maintain an
attractive website to present the best of your property and have a booking engine to make the booking process
simple and convenient for users, if they decide to book directly with you.
Hotel reservation software provider’s overview

Not all hotels need or can maintain a full-fledged property management software. Small properties might only
need booking functionality. In other cases, the hotel might already have some management solutions but lack
specific capabilities like integration with various distribution channels or a rate management module. Let‘s take
a look at some of the popular providers that offer stand-alone solutions with core reservation functionality.
Pegasus became a 2020 winner as the best reservation software according to the Hotel Tech Report. While
prioritizing direct bookings from the website, this cloud-based software offers full connectivity to all major
distribution channels. It provides seamless integration with different channel managers, intelligent rate tools,
flexible APIs, and great technical support.
SynXis CRS by Sabre is one of the oldest solutions on the market and one of the most popular among big hotel
brands. It‘s designed for scale, so best suits mid-to-large hotels owning multiple international properties. This
CRS has a revenue management feature, an integrated channel manager, and offers easy packaging creation. It
also provides all the necessary integration options.
TravelClick’s iHotelier CRS by Amadeus is another web-based solution that connects to multiple distribution
channels, boasts a broad range of reporting options to provide maximum visibility, and offers a variety of
business intelligence tools.
Windsurfer CRS by SHR, besides the usual integration options, offers a powerful online booking engine with
a shopping-cart style booking process. It also has an enhanced rate management feature to optimize revenue
strategy.
Cloudbeds or eZee reservation solutions can be recommended for smaller hotels, motels, resorts, vacation
rentals, or B&Bs. Both providers offer a comprehensive PMS or a separate booking engine. Having all the
essential features, they are easier to use and maintain and also cheaper as the pricing is based on the number of
rooms you have and modules you use.
Final recommendations
The world is changing rapidly and the travel industry is no exception. The latest statistics show that using new
technology in hospitality increases online revenue by 135 percent and reduces guest complaints by 71 percent.
At the same time, 81 percent of travelers expect greater digital customer service from hotel brands.
To keep up and succeed in a hyper-competitive environment, hotels have to invest in technology that lets them
effectively manage, control, and improve their business. In order to choose the right CRS, the one that would
best serve your needs, you, as a hotelier, have to compare the following important factors:
1. functionality to cover all the reservation-related processes in your hotel and customization options,
2. scalability for future growth and development,
3. integrations provided — both with other software and various distribution channels,
4. time necessary to implement the software and train staff,
5. price, including possible customizations, and
6. customer service of the solution provider.
Implementing the CRS software will give you the advantage of working with a broader range of distributors,
adjusting rates according to market conditions, streamlining all the booking processes, and providing excellent
customer service.
Property management system (PMS)

A property management system or PMS is a key software that automates and facilitates all the main internal and
external activities of a hotel, vacation rental business, or other type of alternative accommodation. A PMS helps
manage such aspects of everyday hospitality routine as
1. front-desk operations,
2. reservations,
3. channel management,
4. revenue management,
5. housekeeping,
6. back office,
7. guest data
8. payment processing,
9. reporting, and so on.
Beside their main functionality and user-friendly interface, modern PMSs also offer a wide range of integration
options, mobile access, broad customization opportunities, and other capabilities.
Some of the most popular hotel PMS providers are Oracle, Maestro, and eZee Technosys, while vacation
rentals are often managed with such solutions as Hostaway, Guesty, or Vreasy.
Hotel Revenue Management: Solutions, Best Practices, Revenue Manager’s Role

A hotel jam-packed with people isn‘t always a profitable hotel. The hallmark of a successful hospitality
business is revenue. To increase the bottom line, hotels have to employ various revenue management techniques
and strategies.
What is hotel revenue management?

―the art and science of predicting real-time customer demand at the micro market level and optimizing the price
and availability of product.‖
Simply, revenue management means predicting consumer behavior to sell the product at an optimal price every
day. Therefore, the definition of hotel revenue management is straightforward: selling the right room to the right
client at the right moment at the right price on the right distribution channel with the best commission
efficiency. Sometimes revenue management is called yield management, but these terms aren‘t interchangeable.
Revenue management is defined by interconnected components, which are

1. Customer segmentation,
2. Demand forecasting,
3. Inventory management,
4. Yield management, and
5. Pricing.
Each plays a crucial role and greatly impacts the ultimate financial result of a hotel, so let‘s describe them one
by one.
Hotel revenue management elements and strategies

Revenue management components don‘t exist in a vacuum. They complement each other and form a general
strategy, which serves as a basis for rates, policies, distribution, and marketing activities.
Customer segmentation
Customer segmentation is an important part of marketing and pricing as it allows you to define groups of
travelers that visit your hotel and address them differently. For example, business travelers have different needs
and preferences than backpackers on a budget, so you have to know your customer and be ready with the offers
that fit each group.
However, there are more possible categories that you might want to identify and market to than just ―business
vs leisure‖. Some typical segmentation criteria are
1. Demographic factors (age, gender, marital status, etc.),
2. The trip‘s purpose (business, sport or entertainment event, family vacation, wedding, etc.),
3. Stay duration,
4. Traveler status (new, returning, or regular),
5. Booking channel (direct, through an OTA, or walk-in), and so on.
Each customer group provides opportunities to gain extra profit — if you do it right. For example, you might
offer discounts to your loyal customers, create tour packages for families, or negotiate rates with companies that
have many business trips.
Further analysis can help you discover important trends in customer behavior. You might find out that some
customer groups have a high rate of cancelations or no-shows, so it makes sense to focus your marketing efforts
on other segments. Here, the technique that can help predict such disruptions is demand forecasting.
Demand forecasting
Customer demand is never static. It fluctuates depending on different factors such as the season, important
events in the area, or even macroeconomic conditions. Demand forecasting is the analysis of information about
past demand, as well as current and future events across all the customer segments. Based on this data, you can
predict when the demand will increase or decrease, and develop the right pricing, marketing, and distribution
strategy.
This part of revenue management is especially important because it serves as a basis for setting prices, choosing
distribution channels, creating promotions to engage more guests, or launching other marketing activities to
increase occupancy. To learn more, visit our post about machine learning approaches to price forecasting.
Yield management
The goal of yield management is to define customer behavior and set the best price to sell rooms with maximum
profit. This concept appeared much earlier than the concept of revenue management and is narrower. While
revenue management is focused on the whole revenue of a business, including ancillary revenue and spendings,
yield management focuses on the price and the volume of sales.
Yield management is closely related to both inventory management and demand forecasting since it aims at
selling the greatest number of rooms at the highest possible price according to customer demand. Here are some
of the tactics and tricks you can use to play around with your inventory and maximize revenue.
Maximum length of stay (MaxLOS) restricts reservations to a maximum duration. It can be used to limit the
availability of discounted or promotional rates.
Minimum length of stay (MinLOS) restricts reservations to a minimum duration. It‘s used during high-
demand periods to encourage longer visits.
Closed to arrival means that no reservations are allowed with arrival on a particular day. It can be applied to
lighten the workload of the front desk team on a busy day but is definitely risky as it can turn away some of the
guests.
Allotment is giving your partners (such as wholesalers, travel agents, or event organizers) a pre-negotiated
number of rooms to sell, often at a discounted rate.
Last room availability relates to a contract between a company and a hotel that fixes the room rate. It is done
to support last-minute reservations for business trips and guarantee room availability for a pre-negotiated price.
Inventory management or distribution management

In revenue management, the term inventory refers to the product (i.e. rooms) sold. A room is considered a
perishable product with a certain ―expiration date‖. It means that if you do not sell a room for tonight, you can‘t
sell it later. And if a room is not sold, a hotel loses money.
So, another core aspect of revenue management is choosing the right mix of distribution channels. The main
channels you deal with are probably GDSs, OTAs, bed banks (or wholesalers), and metasearch engines. Using
demand forecasting results for various customer segments and channels, you build the distribution strategy that
will balance occupancy and revenue maximization.
For instance, hotels may use online travel agencies as the leading distribution channel, while making allotments
for bed banks to fill in remaining rooms for a lower cost.
Pricing
Price is one of the main factors impacting a guest‘s decision to choose your hotel. Pricing, or setting optimal
rates for your inventory, is the key to maximizing your revenue. You have to carefully analyze the market to
understand your customer and see booking trends. That will help you build the right pricing strategy for your
hotel.
Note that you have to analyze demand and set your rates well in advance so that you have everything ready for
travelers who prefer to book early.
Pricing strategies and approaches

You already know that it‘s a good idea to base your pricing strategy on customer demand forecasts and the
different groups of guests that you can carve out. However, there are several approaches to price setting. Let‘s
see what the main ones are.
Dynamic pricing
Dynamic pricing is about changing the room rates regularly (sometimes multiple times per day) according to
market demand. Dynamic pricing strategies are built around selling the property for the best price possible.
They are based on supply and demand ratio, as well as external and internal data. External data includes such
data points as competitors‘ prices, weather data, and booking patterns; while internal data includes
segmentation, customer profiles, rates, etc.
Dynamic pricing strategies allow hotels to keep up with the market and maximize occupancy rate, as well as the
other hotel revenue management KPIs (we‘ll talk more about them in the next section).
Open pricing
Open pricing refers to creating different prices for reservations made by different guest segments at different
time periods through different distribution channels, etc. Such flexibility allows you to maintain stable levels of
occupancy and generate revenue even during low demand periods.
So, if dynamic pricing mostly focuses on the supply and demand balance, open pricing is more about varying
profitability margins across segments and channels.
Open pricing requires building complex price matrixes based on accurate forecasts; however, it enables
discount channels to generate revenue instead of closing them off.
Here‘s an example to illustrate the concept. Imagine you have your standard room priced at $100 and your luxe
suite at $200. But you know that there‘s going to be an elite car show in the area so you can charge more for
your luxes since they would be in demand. At other times, you expect a big business conference nearby, so you
can discount the luxes to get them occupied together with standard rooms.
Additional pricing strategies

There is a wide variety of other pricing strategies that can be implemented (often in conjunction with one
another):
Length of stay pricing can refer to either setting a minimum visit duration (can be effective during high-
demand period) or offering a lower rate for longer stays (say, set a discount for reservations of more than 4
nights). The latter not only ensures higher occupancy, but might also lead to higher ancillary revenue.
Packages and value-added pricing is offering a bundle or package of services at discounted rates. You can
include other hotel services in such packages (e.g., airport transfer, meals, spa, etc.) or partner with external
providers (such as car rentals or tour agencies) to provide guests with special deals.
Cancellation policy can also impact your pricing strategy. For example, you offer higher prices with an
opportunity to cancel the reservation and get a refund and vice versa.
Segment based pricing is setting different rates for different guest segments. For example, you can offer
special rates or create special offers for those who book directly through your website (read on to learn more
about the importance of encouraging direct bookings).
Exclusivity vs affordability are two opposite approaches when you either position yourself the highest (most
exclusive) or the cheapest on the market. Depending on your property, you can promote yourself as a luxury
place and target top-shelf travelers or as an affordable place for price-sensitive guests. Note that in the first case,
it‘s important to create and maintain an excellent reputation and also to be fully transparent with what you offer,
letting your guests understand what they are paying for. In the second case, remember about the break-even
point and don‘t let high occupancy with low prices lead to losses.
Usually, a revenue manager is the person in charge of deciding on a pricing strategy. Let‘s look closer at the
revenue manager‘s role and tasks.
Revenue manager: job description

A hotel revenue manager has a long list of responsibilities that largely match the main elements of revenue
management that we described above. To achieve best results, this specialist must cooperate with all hotel
departments, especially sales and marketing teams to push the hotel business forward.
So, the main activities of a hotel revenue manager revolve around the following.
Forecasting is based on data and segmentation, the main pillars supporting revenue management. Predicting
customer behavior enables a revenue manager to optimize revenue. The primary intelligence is derived from
historical data on occupancy, room rates, previous revenue, and the current data on customer activity.
Pricing depends on market demand and customer desire to pay for a particular type of property. To set the
price, a revenue manager analyzes the market, competitors‘ prices, and their products. The prices are optimized
according to different pricing strategies.
Inventory management. Since one of the main tasks of a revenue manager is to make sure that all the rooms
are occupied, he or she sets the entire marketing, pricing, and distribution strategy to maximize occupancy.
Distribution channel management. Building a distribution strategy is one of the core activities of inventory
management. Channels are often closely tied to the customer segments that use them, so depending on the
product type, a revenue manager can choose a channel and set prices for a particular segment of a target
audience.
Marketing. The goal of any marketing activity is to increase the volume of sales. It uses the tools that allow a
property to sell the entire inventory by keeping customer flow steady and attracting new guests. This includes
such marketing activities as promotions, discounts, and loyalty programs. So a revenue manager has to work
closely with the marketing team to align their efforts with the overall strategy.
If you are a hotel owner who is considering hiring a revenue manager or someone looking for this position, you
have to understand that this is a highly analytical role requiring a strong statistics or math foundation.
Specialized training and a dedicated degree or certification is good ways to prove qualifications.
KPIs in hotel revenue management

Traditionally, the effectiveness of revenue management strategy is measured using the following KPIs:
 Occupancy rate – the number of occupied rental units at a given time, compared to the total number of
available rental units at that time.
 Occupancy rate = Rooms sold / Room available
 Average daily rate (ADR) – this rate is applied to a room‘s average rental income during a certain
period of time. It‘s compared to the hotel‘s historical ADR or competitors‘ metrics.
 ADR = Rooms revenue earned / Number of rooms sold
 Revenue per available room (RevPAR) – a KPI that assesses financial and business performance of a
hotel. RevPAR measures the ability of a property to fill all the rooms and define the best price for them.
There are two ways to calculate it:
 RevPAR = Rooms revenue / Rooms available
 RevPAR = Average daily rate * Occupancy rate
 Total revenue per available room (TRevPAR) – a metric that assesses total revenue, generated by the
property, including additional revenue streams. This KPI captures a snapshot of overall business
performance. TRevPAR is one of the main benchmarking tools for big hotels and resorts.
 TRevPAR = Total revenue / Total number of available rooms
 Net revenue per available room (NRevPAR) – a KPI that includes spendings on marketing and
distribution in the calculation. It allows hotel revenue managers to measure the impact of distribution
costs on the room revenue.
 NRevPAR = (Room revenue – distribution costs) / Number of available rooms
 Gross operating profit per available room (GOPPAR) – measures the profit of a hotel and value of
all assets at any given time. GOPPAR measures profit to capacity, including all the hotel‘s expenditure.
 GOPPAR = Gross Operating Profit / Number of available rooms
A revenue manager‘s task is to track these KPIs and develop a strategy to improve the metrics, making the
hotel a successful business. A hotel revenue manager has to deal with multiple reports and data. Specialized
software can save time and resolve some issues. In the next section, we‘ll look closer at some of those systems.
Revenue management software solutions and systems

Even today, in the world of global digitization, revenue manager spends most of the time managing reports
manually, rather than analyzing them and working on an effective pricing strategy. Automated revenue
management software can facilitate everyday manual tasks that he/she performs.
1. Hotel revenue management software facilitates setting the best prices for hotel rooms, based on data and
helps generate dynamic offers. Typical features are
2. Detecting the most profitable pricing options,
3. Demand forecasting,
4. Analysis of lost revenue due to overbooking or cancellations,
5. Revenue reports by KPIs,
6. Collection of historical inventory data,
7. Channel- and segment-based revenue analysis, and
8. Day- or week-based performance analysis.
The software can consist either of several modules or be oriented to particular revenue management tasks. Let‘s
look at some popular tools. Note that we don‘t promote any of them but want to give you an idea of what‘s on
the market.
 Duetto – industry-leading, cloud-based revenue management software featuring three main modules:
GameChanger to support pricing and segmentation, ScoreBoard for advanced reporting, and
BlockBuster for contracted-business optimization.
 IDeaS – another popular automated solution for revenue management, pricing, forecasting, and
reporting. IDeaS also offers products that track revenue of parking lots and function space.
 Atomize — a top-rated, innovative specialized platform for dynamic pricing and demand forecasting. It
can manage multiple properties, optimize group pricing, and track performance through a robust
business intelligence module.
 Kepion – a revenue management platform powered by Microsoft that has integrated planning and
reporting features. And, the vendor offers additional solutions with an expanded business intelligence
module.
 RateBoard – a software that uniquely focuses on yield management and analysis. It analyses booking
habits and the market to suggest prices for 365 days in advance.
 RevPar Guru – software focused on tracking hotel KPIs and dynamic rate optimization. Besides the
revenue management system, RevPar Guru has a channel management module and a booking engine.
 ResNexus – a yield management solution with front desk, CRM, reservation manager, housekeeping
integrations, and reporting.
Bed Banks: Comparing Inventory and Connectivity of Hotelbeds, WebBeds, HPro Travel (HotelsPro), Travco,
Bonotel, and GRNconnect
What is a bed bank?
A bed bank (also called a wholesaler) is a B2B company that purchases rooms from accommodation providers
in bulk at a discounted, static price for specific dates, and sells them to OTAs, travel agents, destination
management companies, airlines, or tour operators.
Wholesalers can partner with accommodation providers directly or access their inventory via suppliers or
connectivity solutions. Some companies use both approaches. Wholesalers connect with suppliers‘ Property
Management Systems to send updates on who will occupy these rooms and when (e.g., guest Vinay will occupy
X room from date A till date B).
Many bed banks go beyond selling lodging and offer other types of travel inventory such as activities, tickets,
transfers, or car rentals.
So, bed banks are middlemen between hoteliers that aim to have decent occupancy rates and travel providers
looking for inventory for their end customers that will get them a commission.
Which bed banks should you consider to enhance your position in chosen markets? We will explore several
major accommodation wholesalers to help you choose a business partner.
Accommodation
The properties cover both traditional and alternative accommodation types, so Hotel beds partners can deliver to
various market segments:
1. Hotels,
2. Resorts,
3. Boutique hotels,
4. Hostels,
5. Apartments,
6. Homes/villas,
7. B&Bs, and
8. Aparthotels.
Hotel profiles are marked with tags, such as best for beach, luxury, nightlife, business, families, value, and solo
travelers, to help users select the options.
The company partners with big hotel brands like IHG, Hilton, Sheraton, Hyatt, NH Hotel Group, Iberostar,
Melia, Accor, and Barcelo.
Other travel inventory

 Lodging is just one of the travel package components end customers may be interested in, so tours and
attractions are here to let them immerse in local culture and learn about the destination. Hotelbeds
Beyond the bed portfolio includes18,000+ activities and tickets in more than 680 destinations in 200
countries (i.e., Legoland Windsor Resort, Port Aventura, Big Bus Tours, Gray Line Tours, City
Sightseeing hop-on-hop-off bus tours);
 24,000+ transfers (private and shared); and
 500+ car rental suppliers in over 170 countries (i.e., Goldcar, Hertz, Enterprise, Alamo, Sixt).
WebBeds is the family of brands, each with a strong presence in one or several regions.
JacTravel DMC – one of the leading European destination management companies that offers tailor-made
touring itineraries and packages to a vast portfolio of locations.
Sunhotels – the company operates across Europe and is said to be the market leader in the Nordic countries.
Sunhotels offers lodging (200,000+ hotels of all categories) in 120 countries, as well as transfers and
excursions.
Destinations of the World (DOTW) – the global accommodation provider specializing in the Middle East
market. DOTW can supply you with more than 130,000 hotels in over 10,000 destinations around the globe.
FIT Ruums – focuses on the Asian market and offers worldwide hotel accommodation, rail passes, and tickets,
as well as airport transfers. One of the things you‘ll get when partnering with FIT Ruums is hotel content
mapping.
Lots of Hotels (LOH) – the company has a solid presence in 26 markets in the Middle East and Africa and has
also expanded into the Americas. It has a diverse portfolio of over 200,000 properties, including direct contracts
with 2,000 hotels .
Umrah Holidays International (UHI) – religious travel service provider to the Kingdom of Saudi Arabia, the
company has direct connections with more than 600 hotels in cities and partners with local tour operators.
Accommodation
The wholesaler mostly partners with small independent hotels saying it serves as an alternative distribution
channel. However, it also works with apartments, resorts, and has connections with 65 hotel chains.
Hotel Booking APIs: Wholesalers, Channel managers, and GDS

(API=Application Programming Interface)
 How do you find hotel room APIs and what kind of providers are out there?
 How do you find hotel content?
 How do you map hotel room inventory?
Global Distribution Systems (GDSs)
This is the oldest middlemen type. It originated from the airline industry and slowly tried to capture adjacent
travel segments. Global distribution systems gather data from multiple sources, create their APIs, and distribute
them across travel agents and OTAs. If you are familiar with airline APIs, you may know how big GDSs are in
that market. However, in hospitality, they won‘t be the first option to look at.
What’s cool about GDSs?

They boast a large inventory of hotels and other travel services across the world. This means that on paper you
can have a one-stop-shop experience with GDSs. Have a look at these stats from the three largest GDSs:
Why GDSs are bad?

Global distribution systems are inherently the monopolists of the air market. But this monopolist approach
contaminates other segments they work with. Their customer service may not be answering your emails. And if
it does, your requests can drown in the bureaucratic swamp. You‘ll also likely experience problems with
technology, supply, room availability, and content. Content, perhaps, is the main problem as you‘re not likely to
find much besides low-res hotel logos. And you won‘t find vacation rentals here. Not the best option overall.
Who uses GDSs?

In hospitality, they may be interesting for travel agencies that support multiple types of services (air, hotel,
rentals, etc.) Another use case is corporate travel, as TMCs (travel management companies) are traditionally
stuck with GDSs.
Amadeus API: basic hotel support (Application Programming Interface)

Amadeus is one of the oldest GDSs, that suggests two main types of connectivity: Self-Service APIs and
Enterprise APIs.
Self-service APIs.
These are standard REST/JSON APIs catering to a large variety of developers to test and use in production.
They don‘t require any special negotiation. You just register online and start using them. You can:
 Find hotels
 Check hotel rooms with availability, rates, and details
 Book hotel rooms
 Receive hotel ratings based on sentiment analysis of feedback with detailed breakdown by different
services and characteristics (comfort, facilities, nearest points of interest, etc.)
With self-service APIs you get from 2,000 to 3,000 free requests per month for test purposes and from €0.015
($0.017) to €0.03 ($0.034) per request for production environment. Hotel booking requests are free!
Enterprise APIs. These SOAP API services are aimed at larger businesses and if you are one, you should
contact Amadeus directly and negotiate all conditions, including prices and request limits with them. Currently,
the services include:
Searching for both single and multiple hotels by their availability

Booking
Full hotel pricing details
Amadeus also has its reservation system iHotelier under its subsidiary brand TravelClick, which features
connection to the main Amadeus APIs and other GDSs, including Sabre and Travelport.
Sabre API: (Application Programming Interface)
Sabre is another giant GDS on the market. Unlike Amadeus, Sabre doesn‘t divide its APIs into testing and
enterprise use ones. All connections and rates must be negotiated directly with Sabre representatives. Sabre
offers both SOAP and some REST APIs for:
 Hotel and availability search
 Hotel details and rates
 Booking, booking cancellations, and modifications
 Loyalty programs
As Sabre has SynXis, its own hotel reservation system, a number of APIs are designed specifically to
communicate with this product. Although Sabre has hotel content, it may be somewhat limited compared to
hotel-focused providers.
Travelport Universal API: both GDS and non-GDS hotels

Travelport is a large UK-based GDS that unites all its services into a single Universal API. Some of you may
know that Travelport is a combination of multiple GDSs: Galileo, Apollo, and Worldspan. They supply the
following services:
 Hotel and availability search
 Hotel details, rules, and rates
 Hotel booking
 Hotel content
Additionally, you can get non-GDS deals from such suppliers as Agoda, Tourico (owned by Hotelbeds) and
others
Corporate discounts and negotiated rates
Let‘s check other opportunities on the market.
Hotel Channel Managers: Key Providers and How to Choose a Channel Manager
What is a hotel channel manager?
A channel manager is a software tool that enables achieving multichannel inventory distribution with instant
updates of prices and availability. In other words, it allows you to simultaneously sell your inventory across
several websites and provide customers with actual information on prices and a property occupancy.
A channel manager can be a stand-alone solution or part of a hotel‘s property management system (PMS) or
central reservation system (CRS).
Hotel booking engines

A hotel booking engine is a piece of a complex puzzle known as a property management system (PMS) and
often comes as an integral part of a channel manager — a module that controls all hotel reservations made via
OTAs, GDSs, bed banks, and other distribution channels.
The main purpose of the hotel IBE is to capture and process direct online reservations, coming from a hotel‘s
website. Other important functions of the hotel booking engine are:
 Integrating and syncing with the hotel‘s social media pages;
 Cross-selling (promoting extra services) at the time of booking;
 Managing discount and promo codes;
 Displaying best available rates against prices available on OTAs; and
 Sending emails — confirmation, pre-arrival, and post-departure.
There are many providers of hotel software offering a booking engine as a separate module that can be
integrated into an existing PMS or website, including:
 Beds24 (best fit for small-to-mid-size hotels, B&Bs, hostels),
 SiteMinder (for hotels of different sizes, from small hostels to giant hotel chains),
 InnQuest (for hotels from five to 5000 rooms),
 Clock (for medium-sized and large properties and hotel groups),
 HotelRunner (for small hotels. hostels, villas, B&Bs), and
 NetAffinity (for independent hoteliers).
How to Integrate Airport Transfer and Shuttle Functionality with Hotel and Flight Booking Systems
Airport transfers are a vital part of today‘s travel experience. Ground transportation cars, buses, or trains take
travelers to and from airports and train stations to hotels or other places of stay.
Integration of ground transportation services enables travel companies, online travel agencies, hotels, and flight
booking systems to solve the first/last mile problem for their customers. Ground transportation helps provide a
complete door-to-door experience and gives travelers an opportunity to control every step of their journey right
from their desktop or other device anytime, and anywhere. Travelers are able to pre-book flat-rate transfer
services available at airports after completing their hotel or flight reservation.
For the most part, we‘ll be talking about these ground transportation options:
 Bus shuttles from airports and railway stations
 Car and van transfers, including luxury vehicles
 Local train transportation
Transfer integration services are provided by the third-parties – travel technology companies that specialize in
this type of booking. There are three common integration models for ground transfer functionality:
 white-label
 plug-in
 API
Amadeus Transfers: transfer service from the major GDS

Amadeus is a major global distribution system that provides travel technology solutions for different travel
industry segments including airlines, travel agencies, OTAs, travel management companies, hotels, ground
handlers, transfer services, etc. Amadeus Transfers service provides coverage in 142 countries.
Amadeus supports transfer solutions in different formats to simplify the integration for travel agents and other
companies selling flights and accommodation. The company suggests a commission-based transactional
business model. In this model, transfer providers pay a commission rate of about 5 to 10 percent to the booking
engine.
Amadeus transfers system operates using one of these three main models:
Plug & play white label. This solution is a helpful tool for fast integration. The white label HTML works on the
basis of plug-and-play. The approach offers a lot of customization parameters that will fit into your existing
website. It can also be easily integrated with a mobile app.
Web services (classic and mobile). This is the API integration way. It will be the best choice for you if you
want to build your own front-end interface.
Amadeus front-end solutions & self-booking tools. This is the way of booking transfer services on Amadeus
Selling Platform and its other self-booking tools. Here, traveler‘s details and dates are extracted from an
existing booking system to the transfer booking tool.
Amadeus is one of the largest players in the travel technology market. While its transfer service has not been
around that long, we recommend considering it among the first companies to contact.
Mozio: worldwide transfer booking provider

Mozio is focused on connecting customers, local companies, and global travel brands to facilitate getting to and
from airports. It covers more than 2000 airports around the world including the US, Canada, Latin America,
Europe, and Asia. Mozio also has a commission-based model that will earn you 5-10 percent per booking.
Mozio offers three main integration options:

White label. Mozio white label provides customers with the ability to search and book transfers without leaving
your website. It‘s quick and customizable.
Plug-in. The branded widget is easy to integrate into any interface. Mozio offers the Widget Builder with which
you can create the widget that fits your company‘s website.
API. Mozio offers an API that includes about 100 ground transportation providers around the world. The
RESTful API works with dynamic websites and is available in the JSON format.
One of the main benefits of Mozio is a wide variety of transfer vehicle options. Not only do they include
conventional cars and SUVs, you can source trains, suttles, buses, taxis, and local drivers.
World AirportTransfer: wide coverage with over 700 airports

World AirportTransfer is a company that has specialized in airport transfers since 1997. It provides transfers to
over 700 airports in more than 190 countries with over than 90,000 hotels supported. AirportTransfers selects
only local suppliers that meet a set of quality standards.
AirportTransfer provides an automated search interface that guides a user through the whole procedure. It
allows travelers to select transfer options, ranging from the cheapest to the most luxurious transfers. It also
provides a cancellation grace period during which travelers can manage and cancel their transfers.
World AirportTransfer offers two main options for ground transfer integration:
White label. AirportTransfer white-label solution is an online version of their website available for integration
using HTML elements. It can be quickly installed without any development effort.
JSON API. On top of that, AirportTransfer provides a JSON service API that can be used to build a custom
website and a mobile application, or it can be integrated with your existing website. The company also provides
full documentation and technical support.
Trawex: transfers by a travel technology provider

Trawex is a travel technology company that provides a wide range of travel solutions for more than 70 suppliers
across flights, hotels, car, and ground services. You can integrate your travel website with the Trawex transfer
service using their APIs. Trawex transfers coverage encompasses over 2000 cities in more than 60 countries.
Trawex transfer API supports both B2B and B2C markets and is suitable for OTAs, tour operators, corporates,
and travel management companies. It offers all types of ground transport including private van service, sedan
service, group shuttle transportation, and limousine. The API is built on scalable Open System architecture
based on the RESTful API format with JSON or XML responses available. The company also provides high
quality support that includes a dedicated account manager and an engineering support team.
Talixo: transfers with the corporate travel focus
Talixo is a transfer booking company that focuses on business travel, while also providing standard transfer
booking for regular users. The company boasts that it supplies Fortune 500 clients and cover about 700 cities
worldwide with limousine and taxi services.
Talixo suggests four main ways of integrating their product:

 API
 White label
 Widgets (supporting direct booking from them)
 API for mobile
What is a payment gateway?

A payment gateway is a service that authorizes and processes payments in online and brick-and-mortar stores.
A gateway serves as a portal to facilitate transaction flow between customers and merchants. It uses security
protocols and encryption to pass the transaction data safely. The data is transferred from
websites/application/mobile devices to payment processors/banks and back.
Payment gateways can execute the following transaction types:

Authorization – a type of transaction used to check if a customer has enough funds to pay. It doesn‘t include
the actual money transfer. Instead, during authorization, a merchant ensures that a cardholder is capable of
paying for an ordered item. An authorization transaction is used for orders that take time to ship/manufacture.
Capture – the actual processing of a previously authorized payment resulting in funds being sent to the
merchant‘s account.
Sale – a combination of authorization and capture transactions. A cardholder is first authorized. Then funds may
or may not be captured. It‘s a regular payment for immediate purchases, like a subscription purchase, or e-
tickets.
Refund – the result of a canceled order for which a merchant will have to apply a refund payment processing to
return the money.
Void – similar to refund but can be done if funds were not yet captured.
Payment processing flow

The infrastructure of online payment processing is a little bit more complicated than you might imagine. For the
customer, it‘s represented by a small window, or a separate website, where they have to pass through the
checkout. But actually, processing involves several financial institutions, or tools, verifying the transaction data
on both ends, allowing the customer to complete the purchase in a few seconds.
When a customer checks out – passing the card number, expiration date, and CVV – a payment gateway has to
perform several tasks, which take about 3-4 seconds:
 Customer. A customer presses a ―Purchase‖ button and fills in the necessary fields to pass the
transaction data. The data is encrypted and sent to the merchant‘s web server via an SSL connection.
 Merchant and payment gateway. After the transaction data is received, a merchant passes it to the
payment gateway via another encrypted SSL channel. If any of data is stored by a payment gateway, it is
settled in a specific type of secured storage. Usually, gateways don‘t store actual credit card numbers,
but rather save tokens.
 Payment processor. The information goes to payment processors. These are the companies that provide
payment processing services as third-party players. Payment processors are connected both with a
merchant‘s account and a payment gateway, transferring data back and forth. At that stage, a payment
processor is passing the transaction to a card network (Visa, Mastercard, American Express, etc.).
 Visa/Mastercard/American Express/Discover. The role of a card network is to verify the transaction
data and pass it to the issuer bank (the bank that produced the cardholder‘s credit/debit card).
 Issuer bank. The issuer bank also accepts or denies the authorization request. In response, a bank sends
a code back to the payment processor, which contains the transaction status or error details.
 Payment gateway. Transaction status is returned to the payment gateway, then passed to the website.
 Customer and issuing bank. A customer receives a message with the transaction status (accepted or
denied) via a payment system interface.
 Issuer bank. Within a couple of days (generally the next day), the funds are transferred to the
merchant‘s account. The transaction is performed by the issuing bank to the acquiring bank.
Promotion
What are the 7 Ps of marketing?
The 7 Ps of marketing is a method encompassing seven distinct principles that professionals can use to create
and employ strategies that attract and engage customers, motivate customer sales and increase revenue. The
creator of the 7Ps of marketing is E. Jerome McCarthy in 1960. It comprises three additional marketing
principles that build on the original concept of the four Ps of marketing. Here's each element of the seven Ps and
how you can apply it to your marketing mix:
1. Products
The first P represents a brand's physical products or services. Physical products require considerations, such as
appearances and features. Often, services focus on quality and customer relations. This section allows
consumers to determine how the brand's products or services can solve their challenges and why it's the best one
for them to choose. To showcase your products in the digital marketing mix, consider using SEO, writing blogs
or articles or incorporating influencer marketing.
2. Price
Price refers to the pricing strategy a company establishes for products or services. Marketers apply the principle
by researching competitors, analyzing costs and establishing product prices. When choosing product prices, it's
also helpful to think about what the consumer may expect to pay for the product. For your marketing mix,
consider creating a subscription opinion for the products or services that provide a discount or using email
marketing to offer coupons and discounts to the consumer.
3. Place
The place principle focuses on where a company makes its products available, such as at a physical storefront or
on an e-commerce website. Marketers determine where to promote products to the organizations' target
customers by analyzing the consumers' purchasing trends and how it influences their buying cycle. The buying
cycle is the consumer's awareness of their challenge, researching products or services to solve it, considering
their options based on their research, choosing and purchasing a product or service and assessing if the purchase
helped their problem and if the consumer may return.
4. Promotion
Marketers use the promotion principle to determine where and how to advertise relevant products and services
to target customers. For instance, promotional tactics and customer relations activities are important to consider
when choosing where to promote products or services. For the company's marketing mix, you may choose a
variety of in-store and online promotions to capture the consumer's attention. Some online promotions can
include:
 Livestreams
 Chats
 Exclusive social media events
5. People
The people element refers to the highly trained and knowledgeable individuals comprising the marketing and
sales teams. This can also refer to the brand's website's chatbot that helps consumers with their questions as
they're browsing online. These professionals provide customer support, build customer relationships and
implement strategies for improving each aspect of the customer experience.
Ensuring the company's customer service team is polite can help increase sales and customer loyalty. If a
consumer has a positive interaction with the company, they might refer the brand to others, which supports the
sales process.
6. Process
Process refers to the company's procedures in creating the products and services, including promoting and
selling new products processes. The principle can help streamline production operations, improve promotional
activities and increase how quickly products sell. When creating the brand's processes, it's essential to ensure it
aligns with the values. For example, an ethically sourced clothing company may ensure its business operations
are sustainable and environmentally friendly.
7. Physical evidence
Physical evidence refers to creating proof or reputation, promoting a brand's image, product and service
qualities, and building overall brand awareness among consumers. Brand awareness is the ability a consumer
has to recall a company when deciding where to make a purchase to solve their challenges. You can garner
physical evidence by creating business cards for the company and handing them out to others when it's
appropriate. The physical evidence may also refer to a consumer's proof of purchase, which includes digital and
physical receipts, follow-up emails to the consumer asking about purchased products and invoices.
Why are the 7 Ps important?

The seven Ps are important because they can help a company review and revise marketing strategies to ensure
it's using optimal techniques, while also identifying if the brand is encountering challenges to resolve. In
addition, applying the marketing theory to your commerce activities may help you:
 Stay updated on current trends to continue meeting customer needs

 Strengthen the organization's market and industry position
 Increase market reach and engage new customer leads
 Build interest in new markets and increase brand awareness
 Boost product sales, increase cross-selling and keep more customers
Examples: Here are a couple of examples to help you understand how product-based and service-based
businesses can apply the seven Ps to marketing methods:
Example 1
Sonia Mariya’s Ayurveda Shop sells Ayurveda products through an online store. The market team applies the
seven Ps to each aspect of the product development and sales cycles:
Product: The business focuses on its beautiful custom labels and designs for the products and online shop and
provides custom blends from customer requests.
Price: The brand analyzes competitor prices and builds a pricing strategy for available products and custom
blends.
Place: Sonia Mariya‘s Ayurveda Shop is a small business that makes its products available in its small physical
and online shop. The business only carries fresh ingredients and stores products for shorter periods, which
means it may generate more online sales than in-store.
Promotion: Promotional activities for the brand may include digital and physical marketing tactics, such as
social media ads, content strategies and local craft fair events to build awareness around the business.
Processes: The business's marketing team determines the average time it takes the artisans to create products
and identifies the time in introducing new items and customer purchases. The information may help to produce
effective strategies for reducing sales time.
People: The company employs two artisans who make aromatherapy products, four marketing team
professionals, three sales specialists, a customer service team, a graphic designer, a web developer, an IT
specialist and a bookkeeper. The marketing team applies this principle to ensure each individual in the business
is contributing to growth and development.
Physical evidence: To build brand awareness, marketers create special offerings, attend live trade shows and
network with health care professionals and massage therapists. The professionals also apply several digital
marketing strategies to establish a positive reputation and increase influence on the market.
Example 2
Garden City Computer Repair is a small business offering computer repair and troubleshooting services. The
business's promotional team uses the seven Ps to evaluate operations, quality of service and efficiency in
generating revenue:
Product: The marketing team analyzes the business's offerings, which include quick, reliable computer repair.
The company also focuses on quality, giving customers up to three months for testing the repairs and requesting
additional services.
Price: Garden City Computer Repair has competitive prices, often lower than other local shops. The brand may
charge a higher price for overnight work or computers with unusual parts.
Place: The repair company has one location near its city's community college and one on Main Street. Its
marketing team evaluates the customers' perception of the storefronts to ensure clean, safe environments.
Promotion: One shop location uses local billboards and signage to advertise repair services, while the other
location hosts game nights to promote repair and maintenance services on high-speed personal computers. The
business also maintains an active social media presence, and the IT team hosts an online podcast every week to
answer questions and promote its services.
Processes: The Company has several procedures for answering in-person and online repair service claims. The
marketing team applies the process principle to ensure customers experience simple processes for answering
questions, requesting repairs and paying service bills.
People: The brand ensures its staff is knowledgeable and up-to-date on technology trends, solutions approaches
and current computer repair and diagnostics applications. It employs certificated IT specialists, software and
hardware developers, customer support technicians and accounting professionals.
Physical evidence: Garden City Computer Repair uses digital and offline promotional methods to build
awareness, introduce service discounts and engage with communities. The business maintains a social media
presence and engages current and past customers who leave reviews on major online business review platforms.
Marketing for the travel and tourism industries in 2023
TikTok marketing – this social video platform became a powerful marketing tool for those skilful enough to
unlock its potential. Often referred to as a platform for children and youth (and dismissed for being such),
TikTok hosts 1 billion active users. It‘s a value that shouldn‘t be ignored.
Social media marketing – the dominance of TikTok does not mean that other social media platforms are
doomed in marketing. Instagram, Facebook, and even LinkedIn – all those media have their place and are still
valid marketing platforms. The key is – as always – targeting the right audience.
Influencer marketing – staying in the social media area: engaging celebrities and influencers in your
marketing activities is an idea worth thinking of. Of course, the influencer with a 250K Instagram profile won‘t
bring thousands of customers directly to your company, but the recognizability should definitely help.
The Minister for Tourism, Culture and DONER, G Kishan Reddy
The first marketing initiative of its kind, Incredible India was conceptualized in 2002 by V Sunil (while he was
Creative Director, O&M; Delhi), and Amitabh Kant, Joint Secretary, Ministry of Tourism. The primary
objective of this branding exercise was to create a distinctive identity for the country. This resulted in the iconic
Incredible !ndia• logo, where the exclamation mark that formed the image of India was used to great effect
across all communications. The campaign successfully established India as a high-end tourist destination,
generating a 16% increase in tourist traffic in the first year.
Overseas Marketing
Brochure Support is a marketing tool used by National Tourism Offices (NTOs) to promote their tourism
products amongst the travel trade and the potential consumer. The India Tourism Offices overseas undertake
this activity on regular basis. This support to tour operators etc. is given to ensure that India‘s tourism products
and packages find place in this brochure and other promotional material produced in the international markets.
Approved Revised Guidelines for Champion Services Sector Scheme (CSSS Scheme) - Incentive to Tour
Operators for Enhancing Tourist Arrivals to India.
The Ministry of Tourism undertakes various promotional activities in source markets overseas to promote India
as a tourism destination and to increase foreign tourist arrivals to the country. These activities are undertaken
directly by the Ministry as well as through the overseas India Tourism offices.
Joint Advertising Support

Advertising Support is an effective marketing tool used by the National Tourism Organization (NTOs)
including Indiatourism, Offices overseas to promote their tourism products amongst the travel trade and the
potential consumer. The Indiatourism offices overseas undertake this activity on a regular basis. This support to
the tour operators / travel agents etc. is given to ensure that India‘s tourism products and packages find place in
the promotional material produced overseas.
Adopt a Heritage Project

Project for Development of Tourist Friendly Destinations September 2017
Objectives of the project are to:
 Develop basic tourism infrastructure in and around heritage monuments and any other tourist sites.
 Inclusive tourist experience for heritage site / monument or tourist site.
 Promote cultural and heritage value of the country to generate livelihoods of local communities of
respective heritage site / monument/ tourist site.
 Enhance the tourist attractiveness in a sustainable manner by developing world class infrastructure at
heritage site / monument or tourist site.
 Create employment through active involvement of local communities.
 Harness tourism potential for its multiplier effects in employment generation and economic
development.
 Develop sustainable tourism infrastructure and ensuring proper Operations and
 Maintenance therein.
Swadesh Darshan Scheme
The Ministry of Tourism launched its flagship scheme of 'Swadesh Darshan' in 2014-15 and provided
financial assistance to the State Governments/ UTs Administration/Central Agencies for development of
tourism infrastructure at various destinations, subject to availability of funds, submission of suitable Detailed
Project Reports, Adherence to scheme guidelines and utilization of funds released earlier etc. During the period
2014-15 to 2018-19, a total number of 76 projects were sanctioned under identified thematic circuits in 31
States/UTs of the country for Rs. 5292.57 Crore.
The Ministry of Tourism has now revamped its Swadesh Darshan scheme as SD2.0 with the objective to
develop sustainable and responsible destinations following a tourist & destination centric approach.
PRASHAD Scheme
The Government of India launched the PRASAD scheme in the year 2014-2015 under the Ministry of Tourism.
The full form of the PRASAD scheme is ‗Pilgrimage Rejuvenation and Spiritual Augmentation Drive‘.
This scheme focuses on developing and identifying pilgrimage sites across India for enriching the religious
tourism experience. It aims to integrate pilgrimage destinations in a prioritised, planned and sustainable manner
to provide a complete religious tourism experience. The growth of domestic tourism hugely depends on
pilgrimage tourism.
For tapping the potential of pilgrimage tourism, there is a need for holistic development of the selected
pilgrimage destinations by the government along with the cooperation of other stakeholders.
The PRASAD scheme aims at paving the way for the development and promotion of religious tourism in India.
Scheme of Capacity Building for Service Providers (Institutes)

A large segment of people are involved directly and indirectly in the tourism industry. Professional expertise is
required for specialized vocations in this field. At present there are Food Craft Institutes (FCIs) and Institute of
Hotel Management (IHMs) where technical training is being provided to persons for the Hospitality Industry.
Tourism training is being provided by the Indian Institute of Tourism and Travel Management, Gwalior, its
Eastern Regional Centre at Bhubneswar, and through its various ―Chapters‖ located at different places in the
country to persons for taking up professions in the Travel and Tourism Industry. The tourism service providers
are both in the approved/ organized and also the unorganized sector. The IHMs and FCIs cater mainly to
organized sector i.e. Hotels and Restaurants. At the same time, there are a large number of persons who are
engaged in the unorganized sector such as small hotels, road side eating places, ticketing/ travel agencies,
dhabas etc.
There is a segment of tourism service providers who are engaged in other professions but come in contact with
the tourist. These persons, such as staff at bus/ railway stations, police personnel, immigration staff at airports,
coolies, taxi/ coach drivers, staff at monuments, guides etc.
The tourists come in contact with various service providers and it is this experience they have while interacting
with the cutting edge governs their experience of India as a tourist destination. It was therefore felt necessary
that this large number of service providers are given certain inputs which can improve their behavior and
service levels. Therefore a Scheme was formulated wherein these service providers in the unorganized sector
are given some inputs so as to upgrade their behavior and service skills.
Some of the important areas being covered under the training include Health & Personal Hygiene, Cleanliness,
Basic Service techniques, Cooking Techniques, Garbage Disposal, Etiquette and basic manners, basic nutrition
values. Energy saving and basic tourism awareness, Communication skills, Behaviour Skills, First Aid, Client
Handling & Behaviour Skills etc.are also covered in the training programmes. The duration of the course ranges
from 4 days to 6 days.
The implementing agencies have been given flexibility in devising the training programmes/ modules.
However, general parameters have been fixed.
Under this scheme the institutions are conducting Training using their own infrastructures in their own premises
or are providing the training at site of the service providers. In the case of IHMs and FCIs the Faculty and
students are being used widely. A large number of the Service providers are located around the tourist sites
and therefore such persons have to be trained at their place of work.
Importance Role of Technology in Tourism Marketing

Technology has played a vital role in the tourism industry and its marketing. The internet has provided a
platform for tourist destinations to market themselves globally. With the help of social media, potential tourists
can learn about different destinations, their attractions, and amenities.
Some of the most popular travel websites are TripAdvisor, Expedia, and Booking.com. These websites provide
ratings and reviews of hotels, restaurants, and tourist attractions. They also offer a platform for travelers to share
their experiences with others.
Social media platforms such as Facebook, Instagram, and Twitter have also become popular among travelers.
These platforms allow travelers to connect with each other and share information about their trips. Hashtags
such as #travelgoals and #wanderlust have become popular among travelers who use them to find inspiration for
their next trip.
Technology has also made it easier for travelers to book their trips online. Online booking platforms such as
Airbnb and HomeAway have made it possible for travelers to find accommodations that fit their budget and
preferences.
In conclusion, technology has played a significant role in the tourism industry and its marketing. The internet
has provided a platform for tourist destinations to market themselves globally. Social media platforms have also
become popular among travelers as they allow them to connect with each other and share information about
their trips. Online booking platforms have made it easier for travelers to find accommodations that fit their
budget and preferences.
Technology Trends in Tourism Marketing

As the world progresses, technology continues to provide new opportunities for marketing in the tourism
industry. Here are some of the latest trends that have been taking the industry by storm:
1. Augmented Reality (AR)

Augmented reality is one of the newest and most innovative technology trends in tourism marketing. It allows
businesses to create an interactive experience for their customers by superimposing digital content onto the real
world. This can be used in a variety of ways, such as providing information about tourist attractions or giving
directions to businesses. AR is still in its early stages, but it has great potential to revolutionize tourism
marketing.
2. Virtual Reality (VR)

Virtual reality is another emerging technology trend that is starting to gain traction in the tourism industry. VR
allows businesses to create immersive experiences for their customers that can transport them to different
locations or give them a taste of what it would be like to visit a certain attraction. This can be an extremely
effective marketing tool, as it allows businesses to give potential customers a taste of what they can expect from
their products or services.
3. Social Media Marketing
Social media marketing is nothing new, but it continues to be one of the most important tools for businesses in
the tourism industry. Platforms like Facebook, Twitter, and Instagram provide businesses with a great way to
connect with potential and current customers. Through social media, businesses can share information about
their products or services, promote special deals or discounts, and engage with their customers.
4. Location-Based Services
Location-based services are becoming increasingly popular for businesses in the tourism industry. These
services use GPS data to provide customers with relevant information about local attractions, hotels, restaurants,
and more. This can be a powerful marketing tool, as it allows businesses to target potential customers who are
near their locations or who have recently expressed interest in a certain destination.
The Benefits of Using Technology in Tourism Marketing

Tourism is one of the world‘s largest and most important industries, accounting for over 10% of global GDP.
Technology plays a vital role in the marketing and promotion of tourism products and services.
The use of technology in tourism marketing has many benefits, including:
Increased reach: Technology can help you reach a larger audience with your marketing messages. For
example, you can use social media to connect with potential customers from all over the world.
Improved engagement: Technology can also help you create more engaging content that will capture people‘s
attention and encourage them to take action. For example, you can use video or interactive content to tell your
story in a more engaging way.
Greater efficiency: With the help of technology, you can automate some of your marketing tasks, such as email
marketing or social media postings, to save time and resources.
In today‘s digital age, it‘s essential for businesses in the tourism industry to leverage technology in their
marketing efforts to stay competitive and attract new customers.
How to Use Technology in Tourism Marketing

Technology plays an important role in tourism marketing. It helps connect potential customers with businesses
and allows businesses to share information about their products and services. Technology can also help
businesses track customer behavior and preferences, and create targeted marketing campaigns.
Some of the most effective ways to use technology in tourism marketing include:
Creating a responsive website: A responsive website is one that automatically adjusts to fit the device it is
being viewed on, whether that‘s a smartphone, tablet, or desktop computer. This is important because potential
customers are increasingly likely to search for information about businesses on their mobile devices.
Developing targeted online ads: Online advertising platforms like Google AdWords and Facebook Ads allow
businesses to target potential customers with ads based on their location, interests, and even the specific
keywords they have used in a search engine. This ensures that your ads are seen by people who are most likely
to be interested in what you have to offer.
Tracking customer behavior: Google Analytics and other similar tools allow businesses to track how visitors
interact with their website. This information can be used to improve the user experience on your site, as well as
to assess which marketing campaigns are most effective at driving traffic and conversions.
Utilizing social media: Social media platforms like Twitter, Facebook, and Instagram provide an easy way for
businesses to connect with potential customers and build relationships. By sharing relevant content and
engaging with users, you can increase brand awareness and drive traffic back to your website.
Using virtual reality and video tours: Virtual tours allow potential customers to explore your business or
destination before they even arrive. Video tours are also an effective way to promote tourism, as they provide a
more immersive experience than photos alone.
By incorporating technology into your tourism marketing efforts, you can reach more potential customers and
increase awareness of your business or destination.

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Name of the Program: Bachelor of Commerce (B.Com.

Module No.1: Basic Computing: 10

Module No. 2: Office Work: 10

Module No. 3: Internet 14

Module No. 4: Computer Networking: 10

Module No. 5: Promotion 12

Characteristics and Limitations of a Computer

The Input-Process-Output Concept

Central Processing Unit (CPU)

Arithmetic logic unit (ALU)

Magnetic Storage Devices

All in one computer

Personal Digital Assistants (PDAs)

Types of computers on the basis of brand

Input and Output Devices

Text Input Devices

Audio Visual Input Devices

Input-reading Text or Codes

Soft copy output device:

Visual Display Unit (VDU)

Flat panel monitor

Hard copy output devices

Computer languages are broadly classified as:

2. High Level Language

Email Protocols: IMAP, POP3, SMTP and HTTP

Basic of Audio and Video-conferencing

Computer network types

Examples of computer networks

Computer networks and the internet

How do they work?

Main types of network architecture

Load balancers and networks

Content delivery networks

Central Reservation System (Computerized Reservation System)

Hotel search and booking process steps

Key reservation features of the CRS

Additional features that come integrated with CRS

Additional features that overlap with other systems in a PMS

Hotel distribution channels: GDSs, OTAs, metasearch engines, etc.

OTAs as the main distribution channel

Metasearch as the biggest search starter

Wholesalers to contract allotments

Booking engine on the hotel’s website for direct bookings

Hotel reservation software provider’s overview

Property management system (PMS)

Hotel Revenue Management: Solutions, Best Practices, Revenue Manager’s Role

What is hotel revenue management?

Revenue management is defined by interconnected components, which are

Hotel revenue management elements and strategies

Inventory management or distribution management

Pricing strategies and approaches

Additional pricing strategies

Revenue manager: job description

KPIs in hotel revenue management

Revenue management software solutions and systems

Other travel inventory

Hotel Booking APIs: Wholesalers, Channel managers, and GDS

What’s cool about GDSs?

Why GDSs are bad?

Who uses GDSs?

Amadeus API: basic hotel support (Application Programming Interface)

Searching for both single and multiple hotels by their availability

Travelport Universal API: both GDS and non-GDS hotels

Hotel booking engines