APPLIED BUSINESS TOOLS AND TECHN0LOGIES
IN TOURISM AND HOSPITALITY especially since most operate on an island to offer the best
CHAPTER 1 - The Tourism and Hospitality Industry
 The tourism and hospitality industry helps a country in
terms of economic stability. People of varying skills
are hired in travel agencies, hotels, restaurants, airline
companies, gaming companies, catering
establishments, and the like, thus, producing many
employed individuals who provide a great and
rewarding experience in the hospitality world.
The Travel Industry
 History shows that the human mind has an innate bent
towards travel. Studies showed that the earliest stages
of human evolution had shown a desire to travel
driven by their needs for survival, such as food.
Travelling on foot just to get to the place they wanted
was very common because there were no other ways at
that time. There were no uniformed personnel to assist
them in their travel.
MODES OF TRANSPORTATION
 Air (by plane),
 Land (by buses, trains, etc.),
 Water (by ships, vessels, etc.)
The Food and Beverage Industry
This is an intrinsic part of travel in which now are
facilities that are scattered like mushrooms in all parts of
the globe.
The Lodging Facilities
These may include
hotels,
motels,
apartels,
condotels,
inns,
and other establishments offering both food and bed at a
certain cost.
The Resorts
These are places that attract visitors during holidays or
vacations, for relaxation and recreation and are operated by
a single company or by business partners.
Resorts are not exempt from managing information,
relaxation package that an ordinary hotel or other lodging
establishments cannot provide. The use of a computer-
based information system is very important to monitor the
viability of current services offered, the feasibility of future
offerings, the capacity to provide other services of the
establishments based on the requirements of the market, as
well as the standing of organization in terms of completion.
The Travel Agency and Tour Operations
Travel and tour operations are responsible for dealing
with the travelers for their travel needs.
As travel agencies and tour operations need to monitor
the status of the tourism industry, they need to collect data,
process it, and then become information as an output, so
operators can make decisions to be able to cope with the
trends in the travel industry.
The Attractions Sector
Attractions are important considerations and a vital part
of the tourism industry.
The Wellness Sector
Like other sectors, wellness has become an integral part
of one's travel. The need to be well and relaxed after a long
journey or after a series of tiring yet fulfilling tour activities
necessitates this sector to be available and affordable.
CHAPTER 2 – Introduction to Business Tools and
Technologies in Tourism and Hospitality
One of the main resources available for managers in the
tourism and hospitality industry is information. Within an
organization's environment, computer information is used
not only by managers but also by non-managers.
The use of business tools, technologies, and other
systems is an important consideration in the operation of
any hospitality and tourism-related business. Without such,
the operation and other functions may fall short in
providing quick and efficient services to the clients.
Management of Information
the POS or point of sale (cash register), the area where
the newsstand is located, the person dealing with the guests'
concerns or orders, and of course, the guests flow.
Managers of hotels will need information or reports
from various departments to show the physical condition of
the organization. Information that is no longer useful is
replaced by those that is current and important so decision-
making or problem-solving will be accurate.
Information management then can be summarized below:
● collecting information
● processing and using it effectively for decision making.
● disposing it at the right time It provides potential tourists or customers with easy and
● The first stage will be to gather information from various immediate access to a textual and visual representation of
departments. This information came from the normal destinations wherever they are in the world. In just a few
reports of respective departments but may include new seconds, potential customers can already see the place or
data, depending on its availability. attraction they wanted to visit.
● Once the data is gathered, the next stage is to process it,
Processing may include analyzing it, comparing it with the Product and Service Marketing
previous data gathered, and other means to arrive at a sound Traditional marketing strategies may not be effective
decision! ● when targeting a large market share. As the tourism and
The moment data has been processed, it can now be used hospitality industry is generally composed of products and
for decision making, and for whatever purpose it may serve services not just offered to the local people where these are
to the organization. situated, marketing them in a way that more people can see
Organization's Main Resources and learn from what the destinations and establishments are
offering is the best thing to do. Company websites play a
Hotels, resorts, restaurants, and other related vital role in communicating the services a tourist attraction
establishments have main resources by which managers offers. For instance, a traveler from Manila would find it
need to manage for them to be used most effectively. convenient for him to check on what Davao can offer
through a website where the destinations, restaurants, and
the four (4) main resources a manager could touch or hold other activities are marketed. With the use of mobile
as they are tangible. technologies such as cellular phones and iPad, browsing
Information as a resource is very important not in terms of websites has become easier for travelers.
its tangibility but in terms of what it represents where The competition also affects the way a product or
managers can derive inputs to be used in their decision- service is marketed online. Therefore, customers tend to
making. This resource also serves as 'manager' for the rest check which establishments offer the best products and
of the resources mentioned herein. services at reasonable prices.
The Need for Business Tools and Technologies With this, we can say that information technology plays
The need for business tools and technologies is not only a vital role in marketing tourism and hospitality products
for the tourism and hospitality industry but for all types of and services.
businesses. Managers, especially those at the top Behavior and Performance Analysis
management or executive levels pay attention to these
resources because of these two reasons: With the use of information technology, the behavior of
potential product buyers is observed in the way they browse
1. Complexity of business processes websites.
2. Usefulness of business tools and technologies Regulatory Process
capabilities
The use of IT applications is also observed in business
Common Business Tools and Technologies in Tourism and regulatory compliances. Systems such as the accounting
Hospitality software as accredited and approved by the Bureau of
Some of these are the following: Internal Revenue (BIR) are used in the business so that
compliance to tax reporting is easy, fast, and efficient.
● Management Information System (MIS) Tools used by a company to access other government-
● Hotel Property Management System (PMS) mandated compliances such as Social Security System
● Restaurant Point of Sale System (POS) (SSS) employee contributions and PhilHealth are also
● Globa Distribution System (GDS) necessary when operating tourism or hospitality related
● Computerized Reservation System (CRS) business.
● Accounting Information System (AIS)
Business-to-Business/Business-to-Consumer Transactions
CHAPTER 3 – General Applications of Technology in the
Tourism and Hospitality Industry Business-to-business or B2B is a form of a business
transaction involving either a manufacturer and wholesaler
General Service Requirements or a wholesaler and a retailer.
Today, IT plays a vital role for the services to be Business-to-consumer or B2C is another transaction that
delivered to the customers efficiently. In fact, adoption of pertains to a deal between a business and a customer
information technology is rapidly increasing every year. It
has transformed the tourism and hospitality world into a Information technology has also become an integral tool
global sector that can be navigated at the click of a mouse in these kinds of business transactions.
or the tap of a finger.
Other Uses of IT in Tourism and Hospitality security,
There are various uses of IT in the tourism and  integration,
hospitality industry.
and exchange.
Owners of establishments should never overlook
investing in IT tools to be able to compete with the rest. Information that is made available to users of an MIS
may be in the form of the following:
Technologies, applications, tools, whatever they may call ● cyclic reports
such, their importance is something that business owners ● special reports
should implement in their business strategies. ● results or outputs of mathematical simulations
The following are some other uses of IT in the tourism and Origin and Evolution of MIS
hospitality industry:
● Managing destination resources Like any other process, MIS represents the electronic
● Inventory of tourism and hospitality resources automation of several different kinds of business processes
● Managing sites and attraction such as counting, tallying, record-keeping, and accounting
● Identifying suitable locations for tourist techniques under the financial aspect of the operations of
● Managing tourist statistics which was the ledger, on which the business owner kept
● Managing inventory track of his or her business.
● Managing consumer behavior The automation that emerged in the 1880s was in the
● Managing establishment's performance form of tabulating cards. These cards can be sorted and
● Marketing of products and service counted which are called punch-cards. Elements of
CHAPTER 4 – Overview of Management Information information are captured by these cards as keyed in on
System punch-card machines. It will then be processed by other
machines in which some could print out results of tallies.
A Management Information Systems or MIS may refer
to the study of people, technology, organizations, and the These were used to keep time records and to record
relationships between them. weights at scales and other similar business processes. It
was after World War II when the first computers emerged,
It is a people-oriented field with an emphasis on service and punch-card systems were used both as their front end
through technology. and as their output. The use of punch-card systems did not
entirely disappear until 1970 because what happened was,
It may also represent the approach a company uses to they were ultimately replaced by magnetic storage media
collate information necessary to make business decisions. like tape and disks. The MIS developed to be the most
It can also be a computerized database of financial crucial accounting function now became computerized,
information organized and programmed so it will produce making the process easier.
reports regularly about the operations for every level of Innovation waves broaden the fundamental virtues of
management in an organization. coherent information systems in all corporate functions and
It is possible to obtain special reports from the system to all sizes of businesses in the 1970s-1990s, within
easily if programmed in accordance with the needs of the organizations, major functional areas developed their own
organization. MIS capabilities, These were often not yet connected to in
one system. In the 1970s, personal computers appeared and
As a computer-based system, it makes information spread widely in the 1980s which then became famous.
available to users, who, in some ways or another, have This is the reason why during the 1980s, networked
similar needs. personal computers (PCs) appeared. It developed into
powerful systems in the 1990s in many organizations
The management uses MIS at all levels of operation to causing the displacement of midsized and small computers.
collect, These networked PCs were equipped with powerful
database engines which were in turn organized for MIS
process, and purposes. During the 1990s, the World Wide Web (WWW)
came of age simultaneously. This morphed into the Internet
 store data with a visual interface, which then connected all sorts of
 and give them feedback about their performance. systems, and is up to now a useful process in the tourism
and hospitality business.
Professionals who are responsible for an organization's
MIS help it realize maximum benefit from investment in Components of an MIS
personnel, equipment, and business processes. They play a Hardware - These are the input and output devices of an
key role in areas such as information MIS. Tangible in nature.
 Software - These include those programs and applications making ● It is
that convert data into machine-readable language. These not that valuable for making non-programmed decisions.
are not tangible in nature.
CHAPTER 5 – It Applications In The Travel And Tourism
Data - This refers to raw details to produce desired Industry
information or facts and figures entered computers for
processing. The use of Information Technology (IT) applications and
tools in the travel and tourism industry is very significant.
Procedures - These are a set of guidelines to be followed As this industry is big and is challenging, serving all types
to use the other components effectively and efficiently. of passengers and travelers will be difficult to manage
without the right system that will help the organization
People - These are the users which may include computer provide the convenience their clients deserve. The airline’s
experts, executives, managers, analysts, programmers, success, for instance, depends largely on its ability to
database managers, and many other computer intelligently manage sales, marketing, and other business
professionals. processes as well as its customer database.
Significance of an MIS The Travel Industry
Below outlines the uses of an MIS: The travel industry is composed of those establishments
● supports strategy decisions of an organization. responsible for transporting people from one place to
● improves the accuracy and integrity of financial another based on their desired destination such as the
statements and performance reports following:
● brings together massive amounts of data needed by top-
level management. ● airline companies
● provides a central location to store business data ● Shipping lines
● provides a common language for managers to understand ● Bus lines
processed information. ● Travel agencies/Tour operators
● increases sales and makes the business grow better.
● provides a company with a greater market share. Below lists some of the airlines operating in the
● improves people's performance. Philippines
● anticipates future problems/trends. ● Philippine Airlines
● helps in controlling various operations of an organization. ● Cebu Pacific
Flexible ● Air Asia
● SkyJet
The flexibility of an MIS cannot be underestimated.
Flexibility can be either increasing data capabilities, more Below are some of the different expectations from the
valued system features, and the likes that can be added to clients of the travel industries:
the initial system. This then eliminates the need for the ● Schedules of flight
organization to purchase an entirely new system every few ● Prices of tickets
years. ● Comfort of seats
● Quality of meals
● Facilitates quick search and retrieval of information. ● Treatment by the crew members and ground staff
MIS allows quick search and retrieval of information ● Airport facilities
whenever needed by the user. For the hospitality and ● Assistance in travel arrangements
tourism industry, this feature is important. ● Assistance in arranging hotel accommodation
● Assisting in customer's problems immediately in the
● Management – Oriented airport front office.
MIS is designed from the top to work downwards. This Below show figures of some typical reservation procedures
does not mean that only the top-level managers are allowed for an airline service:
to use it. Others who may need it for whatever valid reason
can also access it. 1. Customer to look for assistance of a travel agency
2. Travel agency to book the desired itinerary
Limitations of an MIS 3. Passenger to wait for his travel schedule.
Some of these limitations are enumerated below: It can also be virtual by calling a travel agency ticket
● Its output is dependent on the input entered and its seller of an airline to inquire about a particular flight
process schedule.
● It is not too effective when information is not shared with 1. Customer to visit websites of airline companies
others in an organization 2. Customer to fill out flight details and pay through a
● It cannot substitute judgments of managers in decision
credit card
3. Passenger to print e-ticket and wait for his travel
schedule.
For airlines and travel agencies using a Global
Distribution System (GDS), this technology also offers
convenience.
The Amadeus Management Information System
Amadeus Agency Manager mid-office. This pertains to a
repository of operational data which was gathered from the
Agency Manager and allows the users to present or analyze
them to make business decisions.
This system offers the following advantages:
On customer service and flexibility
● It provides better customer service as it allows the users
to have a list of standard reports or create their own
standards.
● The reports from that system are built fast which can be
sent via email in Portable Document Format (PDF).
● It permits corporate customers to access their data if they
need it for reporting purposes.
On data security
● It offers high security of data as it is hosted in a secure
environment at the Amadeus Data Center.
On accessibility
● It is accessible via the Internet which then allows easy
deployment of the solution not only to the internal users but
to the corporate customers as ● More
importantly, it is available to everybody anytime, anywhere
to retrieve the information and reports they need.
Central Reservation System
Central Reservation System or commonly known as
CRS is a computer-based reservation system in the travel
and tourism industry.
It is used to store and retrieve information and eventually
conduct transactions that have something to do with travel.
CRS is exclusively used by airlines but was then
extended to travel agents and hotels for them to
conveniently transact with various guests and travelers.
It has the following functions:
● It provides details on available daily flight schedules
● It provides flight availability details
● It provides fare quotes details
● It provides reservation details
● It provides ticketing details
● It provides refunds and cancellations details
Global Distribution System
A Global Distribution System or commonly known as
GDS is another computer-based reservation system in the
travel and tourism industry.
it is a network of providers bringing the products and
services together to the doorstep of consumers anywhere
worldwide.
 It provides the end-users with real-time access to
inventories and pricing a company offers.
Below are the four major global distribution systems:
● Amadeus - This was created through the efforts of four
airlines:
Air France,
 Iberia,
Lufthansa,
and Scandinavian Airline System (SAS).
The evolution of this GDS was an innovative solution to a
common industry problem related to efficient sales and
travel distribution.
● Galileo - This was created by the collaborative efforts of
a group of nine European airlines including British
Airways. It is based in Atlanta, Georgia, in the United
States and is owned by Travelport.
● Worldspan - This was formed by;
Delta Airlines,
Northwest Airlines,
 and Trans World Airlines in the early 1990s.
It provides travel distribution, technologies, and services
for travel companies worldwide.
● SABRE - Created by American Airlines, this is owned
by Sabre Corporation. Its headquarters is in Southlake,
Texas, USA. Travel agents and companies around the
world use this GDS to search for flight details and services
offered by airlines, hotels, car rental companies, rail
providers, and tour operators that are utilizing it for their
operations.
The GDS offers the following advantages:
● It provides simplified access to users
● It connects to multiple
● It needs less maintenance
● It offers flexibility