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COMPUTER APPLICATION IN FRONT OFFICE OPERATION

The use of technology has greatly impacted the hospitality industry, from the way guests book

their accommodations to the services they receive during their stay. With the increasing use of

smart phones and other technological devices, it has become even more important for the

hospitality industry to keep up with the latest technological advancements. In this blog, we will

discuss the role of information technology in the hospitality industry, its impact on the industry,

and future possibilities.

Role of IT in the hospitality industry

Information technology plays a vital role in the hospitality industry by providing efficient and

effective solutions for a range of tasks, from booking reservations to managing operations and

enhancing customer experiences. Here are some key areas where information technology has

impacted the hospitality industry:

1. Online booking and reservations: Information technology has made it easier for guests to book

and reserve rooms, tables, and other services online through hotel websites or third-party

booking platforms.

2. Mobile technology: Mobile apps and websites have allowed guests to access hotel information,

make reservations, and manage their bookings from their smartphones or tablets.

3. Property management systems (PMS): These systems help hotels manage their operations by

streamlining front desk operations, managing inventory, tracking guest preferences, and

generating reports.
4. Point of sale (POS) systems: These systems help hotels manage their cash flow, track inventory,

and manage transactions for restaurants, bars, and other service areas.

5. Customer relationship management (CRM) systems: These systems help hotels collect and

analyze guest data to provide personalized experiences, anticipate customer needs, and build

customer loyalty.

6. Marketing and advertising: Social media, email marketing, and other digital marketing

channels have allowed hotels to reach wider audiences and promote their services more

effectively.

Overall, information technology has helped hotels and other hospitality businesses improve their

efficiency, reduce costs, and enhance the guest experience.

Technology Used in Hospitality & Tourism

Technology plays an important role in the hospitality and tourism industry. Both customers and

businesses can benefit from advances in communication, reservations and guest services

systems. Technology allows continuous communication and streamlines the guest experience,

from reservation to checkout.

Internet

The Internet has a powerful impact on hospitality and tourism. For many businesses and

locations, the experience starts long before a traveller arrives–it begins with the first visit to the

website when a person sees photos of the location and gets a sense of what to expect. In the

hospitality and tourism business, effective use of Internet technologies can improve revenue.

Websites, blogs, online advertising, social media, online ordering and information repositories

all help convince customers to choose a location or business.

Reservations Systems
Booking engines to allow easy access by consumers and travel professionals; the systems enable

individuals to make reservations and compare prices. Many, like Expedia and Orbitz, are

available through online interfaces. Booking engines cut costs for travel businesses by reducing

call volume and give the traveler more control over their purchasing process.

Computer Systems

Because many tourism businesses are large and dispersed, they use computer systems to stay

connected. Computer systems allow communication between branches and locations which

makes it easier to streamline reservations and cross-company policies. They are also used

internally to keep all of the staff on the same page and make it easier to access information that

can improve the guest experience: guest preferences, housekeeping information and reservation

details can all be kept on a single system.

Mobile Communication

Many travelers take some form of mobile communication device with them on the road, whether

it is a tablet computer or a mobile phone. To keep customers advised of changes many tourism

and hospitality businesses use mobile communication; they send delay notices, offer deals and

sponsor location-based advertising. Depending on the type of business the communication might

happen through emails, text messaging or GPS tagging, for example.

In-Room Technology

Today’s traveler carries numerous electronic devices, and reliable, wireless Internet connectivity

ranks at the top of the list for customer needs. Some luxury hotels provide iPads or smartphones

to the customers for use during their stay. Guests can use the hotel’s Web application to access

room service options via an e-dining Internet site, or use an interactive service that finds nearby

restaurants, transportation or shopping.

IMPACT OF INFORMATION TECHNOLOGY IN THE HOSPITALITY INDUSTRY

Improved Customer Service

With the help of technology, the hospitality industry has been able to improve its customer

service. Hotels can now provide a personalized experience to each guest by collecting and

analyzing data about their preferences, past stays, and feedback. Hotels can also use technology

to offer 24/7 support to guests and resolve issues quickly.

Enhanced Operational Efficiency

Technology has made it easier for hotels to manage their operations. Automated check-ins,

keyless entry, and self-service kiosks are just a few examples of how technology has enhanced

operational efficiency. These advancements have helped reduce the workload of hotel staff,

resulting in better service and more satisfied guests.

Better Marketing and Revenue Management

Technology has also made it easier for hotels to market their services and manage their revenue.

Through social media, hotels can engage with potential customers and promote their services.

Revenue management systems can use data to adjust room rates in real-time based on demand,

helping hotels to maximize their profits.

FUTURE POSSIBILITIES OF INFORMATION TECHNOLOGY IN THE

HOSPITALITY INDUSTRY

Artificial Intelligence (AI)

 AI can be used to automate tasks such as room service, cleaning, and maintenance. It can also

help personalize the guest experience by predicting their preferences and offering tailored

services.

Virtual Reality (VR)

VR can be used to offer virtual tours of hotel rooms and facilities, providing a better

understanding of what guests can expect during their stay. It can also be used to create

immersive experiences, such as virtual travel and events.

THE IMPORTANCE OF A PROPERTY MANAGEMENT SYSTEM IN THE HOTEL

INDUSTRY

The right property management system (PMS) is a key factor in hotel success. Having a system

that makes frontdesk workflows easy, will create a seamless guest experience. With the

abundance of new technology in the property management systems industry, there is no time like

the present to upgrade your PMS.

 Guest’s first impression

Upon arrival, a guest’s first impression is created as they walk through the doors and interact

with the first point of contact, your front desk. A property management system should easily

display arrivals for the day and have any important information about stay preferences attached

to a guest’s booking. This will ensure you make a good and memorable first impression.

 Streamlined check in and checkout

There is nothing more frustrating than waiting a long time to be checked in or out, these

processes should be fast and easy to provide a seamless guest experience. Having streamlined

and easy check in and checkout processes is important for both the guest experience and hotel
 efficiency. A property management system will help you perform these tasks with ease,

increasing productivity and delivering that exceptional guest experience.

 Clear communication

Having clear lines of communication between all departments of your property and with the

guest is integral to a successful accommodation. With a property management system you can

facilitate easy communication, and ensure that all departments are operating effectively and

efficiently.

 No double bookings

A PMS that connects to a channel manager means all your availability is constantly being

updated. This means no double bookings, saving you and your team time by eliminating double

bookings. When the guest arrives there won’t be any complications with their room or booking,

making for a pleasant guest experience.

 Focus on your guests

The guest experience is such an important aspect of your accommodation, and is the key to

returning guests. Using a streamlined and intuitive PMS will save you time on your day-to-day

processes. So you’ll have more time and opportunities to interact with your guest and offer them

a truly personalized experience.

A PMS is at the heart of hotel operations, helping with efficiency and guest experience, it is an

indispensable hotel tool.

SELECTING THE RIGHT PMS SOLUTION IS VERY IMPORTANT FOR A HOTEL

Hotels often make the mistake of choosing a lower end PMS solution that doesn’t fulfill their

basic requirements or else, they opt for a high end solution that comes with a lot of features

which may not be of much use to the hotel.

 What you should look for:

Reporting and Business Intelligence

Reporting is a very important aspect of your hotel’s operations and strategic planning. While

selecting a PMS, hoteliers must look at the different reports it provides and whether it will help

gain insights on the revenue and performance of the hotel.

Web Booking Engine

Online bookings are an important part of revenue generation for the hotel. Having a property

management system with its own Internet booking engine and payment gateway is a must have

feature.

Housekeeping and POS

Housekeeping forms one of the basic operations of a hotel. Having a property management

system that also has the housekeeping module is a plus. Point of Sale feature is again an

advantage as it gets easily integrated with the PMS and room management, thereby,

simplifying the billing and check-out process.

Sales and Marketing Functionality

Technology for online marketing of hotel rooms has been evolving at an exponential rate with

many OTAs, meta search engines, review sites, social media and aggregators entering the

market.

 Direct connection with Channel Managers

To have a successful sales and marketing strategy, hotels cannot ignore Channel Manager.

Channel manager connection is important to connect to the OTAs and GDS for real-time

distribution of room inventory and dynamic room pricing. Choosing a PMS that does not give

this functionality is a huge loss of revenue.

 Social Media & Review Site Integration

The property management system should provide a platform that will connect to your social

media platforms and review sites like Trip Advisor easily. Check if the PMS offers a Face book

booking button to improve direct bookings.

Integration

The property management system should be able to integrate with the common external systems

like key card access, mini bars and call accounting to name a few.

Flexibility in Rate Management

Rate management is very important for a hotel. Hoteliers spend a lot of time strategising the rates

and rendering attractive packages and deals. A property management system should be able to

support these processes.

After Sales Support & Security

Last but not the least, hoteliers should look at the after sales support of the system and the

security features offered. Ask questions like where the data is being stored and if credit card

payments are being done through the system. Make sure that the basic standards are met.

What you should avoid:

Looking at only the cost benefit

One of the most common mistakes hoteliers make while choosing a property management

system is to select the one that costs the least. They go in for a low cost solution that does not

fulfill their requirements instead of a solution that may cost a bit more on the outset but in turn

gives higher revenues. One should not just look at the cost factor alone but weigh it against the

ROI (return on investment) that can be derived.

 Choosing attractive features that may not be of use

Hoteliers should not opt for features that look glitzy and high end as they might not be of much

use to the hotel. Instead, keep a list of your hotel’s requirements ready and match it against

the key features of a PMS system.

Not giving technology its due

Many hoteliers refuse to accept that they need to keep in tune with the latest technology.

Investing in a low cost outdated property management system which is not in tune with today’s

latest technology will only lead to a system which is more of a nuisance than an asset.

FIDELIO

Fidelio is a complete integrated system package designed to achieve maximum efficiency of the

hotel. This PMS is produced in Munich, Germany, advanced version 6.20. The demo version

enables the employees to practice and learn in a real life environment. Its main features are:

1. It is DOS- based and the newer version-OPERA-is Oracle-based.

2. It can protect its software from all sorts of virus. If a virus enters the system, it is transferred to a

non- usable file from a database file in order to save the other files.

3. It is flexible and easy to use the software.

4. It can be easily operated with a minimum of training inputs.

5. The red alert software can be used for extra protection of files from the virus.

KEY FEATURES OF FIDELIO

Reservations

FIDELIO Reservation features are integrated with other functionality such as profiles,

cashiering, and deposits. This module offers a complete set of features for making and updating
individual, group, and business block reservations, including deposit handling, cancellations,

confirmations, wait-listing, room blocking, and sharing.

Rate Management

An extensive set of features for setting and automatically controlling rates, for rate quotation, and

for revenue forecasting and analysis are integrated into FIDELIO to create the most

comprehensive rate management system in the industry. FIDELIO interfaces with the FIDELIO

Revenue Management Systems and other major yield management applications.

Front Desk

Arrivals and in-house guests are served using the Front Desk features This module handles

individual guests, groups, and walk-ins, and has features for room blocking, managing guest

messages and wakeup calls, and creating and following up on inter-department advisories, or

traces.

Rooms Management

FIDELIO’s Rooms Management features handle all facets of room supervision including

availability, housekeeping, maintenance, and facility management. The Queue Rooms feature

coordinates Front Office and Housekeeping efforts when guests are waiting for rooms which are

not immediately available for assignment.

Cashiering

Posting guest and passer-by charges (including taxes and other generates), making posting

adjustments, managing advance deposits, settlements, checkout and folio printing are a few of

the many activities handled by FIDELIO Cashiering. Cashiering accommodates multiple

payment methods per reservation including cash, check, credit cards, and direct bill. In multi-
 property environments, guest charges can be cross-posted from any property in the hotel

complex.

Global Perspective

FIDELIO PMS supports multi-currency and multi-language features to meet the requirements of

global FIDELIO expectations. Rates and revenues can be dynamically converted from the local

currency to any other currency. The appropriate language for guest correspondence can be

automatically determined by the guest’s profile language; country-specific

address formats are supported.

Reporting

FIDELIO offers over 360 separate standard reports. Reports can be customized for each hotel

and new reports may be created as needed using FIDELIO’s built-in Report Writer.

Accounts Receivable

AR is fully integrated with the FIDELIO database and includes direct billing, invoicing, account

aging, bill payments, reminder and statement generation, and account research. Old balances

from external accounting systems may be entered.

FRONT OFFICE MODULE

The whole operating system can be operated by using the Function keys(F keys/Hot keys).

 These keys help access information which is commonly required and is general in nature.

 These Function keys can be accessed at any time and can be opened simultaneously when

working in any part of the various modules.

 There are a total of 30 functions available including a combination of an F- key and Shift or

Control functions.

 A maximum of 3-4 F key functions can be opened simultaneously on the screen.

The main modules of Fidelio used are:

1. RESERVATION

2. ROOMS MANAGEMENT

3. FRONT DESK

4. CASHIER

5. OPTIONS

6. MENU

RESERVATIONS MODULE

The creation of booking is possible for an unlimited number of rooms, guests and for unlimited

time unless that period has free capacities. If you do not have the available capacity, the rooms

can be added to the waiting list. Booking entry module includes reservations for individuals as

well as group reservations and block (allotment) reservation. Group reservations can be fixed the

dates of arrivals and departures of all group members, or with flexible dates, when you enter the

date of arrival of the first member of the group and departure of the last member of the group.

There are different options to post charges (individual, group, etc.).. Check-In and assigning

rooms are fully automated.

When entering a reservation it is possible to define room type, price, check-in time, the initial

and final meals, method of payment, as well as the billing instruction to the company.

Confirmation letter of booking is printed on the guest’s language.

 FRONT DESK

Automated system to check in guests by reservation. At any moment you can check the expected

arrivals, expected departures, and the view of guests in the hotel. This module allows you to

enter messages for guests with printing option, and to track the status: delivered or undelivered.

CASHIERING

Using module Cashiering you will have access to the balance of each guest, as well as invoicing

in a user-defined format invoice in multiple languages. There are different styles of the standard

invoices. It is possible to merge invoices, and unlimited opportunities to split invoices,

regrouping of posting and transfer to other room or account. There are no restrictions on

combinations of payment: credit cards, cash, invoices, check.

ROOMS MANAGEMENT

A complete overview of the rooms’ status with the possibility of changing their status. Graphical

display makes it easy to access floors to the status of the room, and in the availability of capacity

also. In addition to monitoring the status of basic rooms, you can change the room status to “out

of use” with a defined reason.

OPTIONS

Contains various functions of which report creation and printing is a major task. The various

functions contained here are:

 Reports

 Word processing

 Printer

 Users log file

 Batch Folios

MENU

Without logging off, users can operate the following:

 Check out

 Check-in

 Cancelled

 Cashier

AMADEUS

Amadeus PMS solutions let you share information across your hotels, deliver integrated channel

management and help streamline the sales process. Amadeus supports seamless integration

between Amadeus PMS and Light Speed POS.

o No manual transfer of tickets.

o Items are posted onto the guest invoice using the POS article description.

o Real-time revenue recording in PMS. No separate EOD procedure. The interface transfers both

room and non-room postings (cash paid revenue)to PMS. Unlimited revenue mappings.

“Your PMS, when integrated with a supported back office system, can transfer hotel and POS

revenue into the back office system. No separate back office interface needed from the POS to

the back office system.”

Integrates with all 3 Amadeus PMS’s.

o No need for onsite installation. The entire installation and testing can be done by remote session.
o No manual EOD procedure.

o POS always in balance with PMS.

Amadeus XMLPOS is an interface standard developed by Amadeus and is supported by all

Amadeus PMS systems. It supports both room and non-room postings enabling the transfer of

the entire POS sales/revenues, including payments, into the PMS. No EOD procedure. Each POS

ticket is transferred to the PMS when settled. This keeps the POS and PMS in balance at all

times and in real time (depending on how often the POS sends the cash tickets to PMS).
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FRONT OFFICE (ACCOUNTING)

Front office accounting system

 Creates and maintains an accurate accounting record for each guest or non guest account.

 Front office accounting system tracks financial transactions through the guest cycle.

 Front office accounting system ensures internal control over cash and non cash transactions.

 Front office accounting system records settlement for all goods and services provided.

There are two types of accounts maintained by front office department with front office

accounting system:

1. Guest Account

A guest account in front office accounting system is to record of financial transaction between a

guest and the hotel. It is created when the guests guarantee their reservations or during

registration. The front office usually seeks payment for charges during the departure and

settlement stage of the guest cycle.

2. Non-Guest Account

A hotel may extend in-house charge privileges to local businesses or agencies as a means of

promotion or to groups sponsoring meetings at the hotels. The front office creates non-guest

accounts to track these transactions which may also be called house accounts or city accounts.

FOLIOS

Front office transactions are charted on account statements called folios. A folio is a statement of

all transactions (debits and credits) affecting the balance of a single account. There are basically

five types of folios used in front office accounting and maintained with front office accounting

system:

1. Guest Folios – Accounts assigned to individual guests or guestrooms.

2. Master Folios – Accounts assigned to more than one guest or guestroom, usually applicable for

group accounts.

3. Non-Guest or Semi-Permanent Folios – Accounts assigned to non-guest business or agencies

with hotel charge purchase privileges.

4. Employee Folios – Accounts assigned to employees with charge purchase privileges.

5. Split Folios – Accounts assigned to a guest on his/her request to split his/her charges and

payments between two personal folios – one to record expenses to be paid by the sponsoring

business company and the other to record personal expenses to be paid by the guest. In this case

two folios are created for the same guest.

 VOUCHERS

A voucher details a transaction to be posted to a front office account. There are several types of

vouchers used in front office accounting system:

1. Cash Voucher – A voucher used to support a cash payment transaction at the front desk.

2. Charge Voucher – A voucher used to support a charge purchase transaction that takes place

somewhere other than the front office.

3. Allowance Voucher – A voucher used to support an account allowance.

4. Cash Advance Voucher – A voucher used to support cash flow out of the hotel, either directly

to or on behalf of the guest.

5. Correction Voucher – A voucher used to support the correction of a posting error which is

rectified before the close of business on the day the error was made.

6. Credit Card Voucher – A form designated by the credit card company to be used for imprinting

the credit card and recording the amount charged.

7. Paid-Out Voucher – A voucher used to support the cash disbursed by the hotel on behalf of a

guest.

8. Transfer Voucher – A voucher used to support a reduction in balance on one folio and an equal

increase in balance on another. Transfer vouchers are used for transfers between guest accounts

and for transfers from guest accounts to non-guest accounts when they are settled by credit cards.

9. Travel Agency Voucher – In travel agent guaranteed reservation, the travel agent forwards a

voucher to the hotel as proof of payment and guarantees that the prepaid amount will be sent to

the hotel when the voucher is returned to the travel agency for payment.

POINTS OF SALE (POS)

The term ‘point of sale’ denotes the location at which goods or services are purchased. Any hotel

department that collects revenue for its goods and services is considered a point of sale. The

front office accounting system must ensure that all charge purchases at these points of sale are

posted to the proper guest or non-guest account. A computerized POS system allows terminals at
 the points of sale to communicate directly with a front office computer system, and helps front

office staff to create a well documented folio statement with a minimum number of errors. Some

basic information to be provided by the POS includes the amount of the charge, name of the POS

outlet, room number, name of the guest and a brief description of the charge.

LEDGERS

A ledger is a summary grouping of accounts. A front office ledger is a collection of front office

account folios. There are two types of ledgers in front office accounting system:

 Guest Ledger – It refers to the set of accounts related to the registered hotel guests. It is also

known as Transient ledger, Front Office ledger or Rooms ledger.

 City Ledger – Also called the non-guest ledger, it is the collection of non-guest accounts. It can

contain credit card payment accounts, direct billing accounts, and accounts of past guests due for

collection by the hotel.

ACCOUNTING SYSTEMS

 Non-Automated: Guest folios in a manual system contain a series of columns for listing debit

and credit entries accumulated during occupancy. At the end of the business day, each column is

totaled and the closing balance is carried forward as the opening balance of the next day.

 Semi-Automated – In this system, transactions are printed to a machine-posted folio.

 Fully Automated – Computerized systems in which POS transactions are automatically updated

in the front office accounts.

CREDIT MONITORING

The front office accounting system must monitor guest and non-guest accounts to ensure that

they remain within acceptable credit limits.

 Guests who present an acceptable credit card at registration may be extended credit facility equal

to the floor limit authorized by the issuing credit card company.

 Guest and non-guest accounts with other approved credit arrangements are subject to limitations

established by the front office called house limit.

 The night auditor is mainly responsible for identifying accounts which have reached or exceeded

the fixed credit limits. Such accounts are called high risk or high balance accounts. The front

office may deny additional charge purchase privileges to such accounts.

 This situation may be resolved by requesting the guest to make a partial payment or requesting

the credit card company to authorize additional credit.

FRONT OFFICE ACCOUNTING SYSTEM FORMULA

Transaction postings in the front office conform to a basic accounting formula, which Previous

Balance + Debits – Credits = Net Outstanding Balances

INTERNAL CONTROL IN THE FRONT OFFICE

Internal control in the front office involves:

 Tracking transaction documentation

 Verifying account entries and balances

 Identifying vulnerabilities in the accounting system

Auditing is a process of verifying front office accounting records for accuracy. Certain records

are maintained to have a control in front office cash:

 FRONT OFFICE CASH SHEET – The front office is responsible for a variety of cash

transactions affecting both guest and non-guest accounts. The front office cashiers have to

complete a front office cash sheet that lists each receipt or disbursement of cash.
 CASH BANK – A cash bank is the amount of cash assigned to a cashier so that he/she can

handle the various transactions that occur during a particular work shift. Cashiers should sign for

their bank at the beginning of their shift and only the person who signs should have access to it.

NET CASH RECEIPTS = Amount of Cash, Checks, Vouchers etc in the Cashier’s

Drawer – [Amount of Initial Cash Bank + Paid Outs]

OVERAGES – When the total of cash and checks in a cash drawer is greater than the initial

cash bank + net cash receipts

SHORTAGES – When the total of cash and checks in a cash drawer is less than the initial cash

bank + net cash receipts.

DUE BACK – A due back occurs when a cashier pays out more than he/she receives i.e. there is

not enough cash in the cash drawer to restore the initial cash bank. This may happen when a

cashier accepts many checks, or encashes large amount of foreign exchange offered by a guest

during shifts. These checks and bills are deposited with other receipts and consequently the front

office deposit may be greater than the cashier’s net cash receipts, with the excess due back to the

front office cashier’s bank.

 AUDIT CONTROL – Internal auditors should make unannounced visits to the front office

cashier’s desk for auditing accounting records as well as conducting spot checks of the cash bank

of the cashier on duty. A report should be completed for management and ownership review.

SETTLEMENT OF ACCOUNTS

The collection of payment for outstanding account balances is called account settlement which

involves bringing the account balance to zero. An account can be brought to zero balance as a

result of a cash payment in full or a transfer to an approved direct billing or credit card account.

All guest accounts must be settled at the time of check out.

ACCOUNTING SYSTEM

NON-AUTOMATED:

Guest folios in a non-automated or manual system contain a series of columns for listing

individual debit (charge) and credit (payment) entries accumulated during occupancy. At the

end of the business day, each column is totaled and the ending balance is carried forward as the

opening folios balance of the following day.

SEMI AUTOMATED:

Guest transactions are printed sequentially on a machine posted folio. The information recorded

for each transaction included the date, department or reference number amount of the

transaction, and new balance of the account. The folio’s outstanding balance is the amount the

guest owes the hotel or the amount the hotel owes the guest in the event of a credit balance at

settlement. The column labeled previous balance pickup provides an audit trail within the

posting machines frame work that helps prove the current outstanding balance is correct. If the

semi automated posting is done by mechanical equipment, it does not retain individual folio

balances. This means that each accounts previous balance must be re-entered each time an

account posting is made to the folio. This process enables the machine to produce a new current

total on the folio card, but it is very error prone and often and often leads to in correct folios

balances and subsequent night audit mistakes. Electronic posting equipment often does retain

folio balances.

FULLY AUTOMATED:

Point of sale transactions may be automatically posted to an electronic folio when a printed copy

of a folio is needed, debits (charges) and credits (payments) may appear in a single column with

payments distinguished by parentheses or a minus sign. Printed folio copies may also be
proceeded in the traditional multiple-column account format. It is unnecessary to manually

maintain an account’s previous balance in a fully automated system, since computer based

systems maintain current balances for all folios.