Computer

application in • Dr Jai Sonker

Front Office
ROLE OF INFORMATION TECHNOLOGY IN HOSPITALITY
INDUSTRY

• It would be an advantage to the hotel industry to find a way

to combine time with technology. New hotels are finding it
advantageous to incorporate information and latest
technology in their operations.
• 1. Internet in the hotel guestrooms: hotel guests are
provided full access to the Internet on their in-room
television. Innovative infrared wireless keyboards may be
used. A web browser, e-mail connection, and on-line multi-
lingual help can be provided to maximise Internet
experience at the 11 hotel. Wi-Fi access in rooms, free or
charged for, is provided by nearly all large hotels. Free Wi-Fi
is also being considered for availability in public areas of the
hotel.
ROLE OF INFORMATION TECHNOLOGY IN HOSPITALITY
INDUSTRY

• 2. TV interactivity: Through this concept, various guests can

have access to the same movie at different times according
to their own convenience. Another use is that the guest can
refer to their TV sets at any time for viewing their bills, credit
limits and expenditures, even local and city information, etc.
• 3. E-concierge: this facility empowers the guest to take a
“multi-media graphic and sound assisted tour” of the city,
shopping centres, etc. while sitting in his room. This may
include making reservations at restaurants, operas, etc.
• 4. Other technologies: these may include the use of voice-
over Internet Protocol (VOIP), video conferencing, staff
scans, etc. and many other services.
•  
PROPERTY MANAGEMENT SYSTEM (PMS)

• Computers are used for many different purposes in hotels.

• The first use is at the front desk, where the computers are
equipped with intricate software called the Property
Management System (PMS) to do all check-ins, guest
accounting, check-outs, etc. In a restaurant, lounge or bar of
a hotel,
• the second type of computer system, called a Point of Sale
(POS) system, is used. This system collaborates with a PMS to
generate bills for meals and drinks consumed by guests, but
it may also be used as a cash register.
• The third use of the computer is in the sales office, which
has a booking terminal.
PROPERTY MANAGEMENT SYSTEM (PMS)

• A PMS is a computer - based management system. In

the hospitality industry, it is a computerized system
used to manage guest bookings, online reservations,
point of sale, telephone, and other amenities.
• A hotel PMS may interface with Central Reservation
Systems (CRS) and revenue or yield management
systems, front office, back office, and POS systems.
TYPES OF
PMS

• There are several companies

that provide the PMS
softwares to hotels, with their
own unique features to suit
the different requirements of
various hotels. Some of the
companies providing PMS
software are:
• Micros, b) Amadeus, c) IDS
Fortune, d) ShawMan, e)
Fidelio, f) Opera
Points to consider while selecting a PMS

Budget: Budget must be a consideration while selecting a Property

Management System for your hotel. A small hotel may want to opt for a local,
lesser-known brand for the cost constraints while bigger hotels may opt for
well known brands as they can afford it.

Brand: Well known PMS brands are considered reliable which may help
bigger hotels to decide upon selecting hotel management software based on
their brand image.

Cost of Operation:  The hardware (computer, printer, back-up discs etc) used
by the PMS should be replaceable at a reasonable cost.  Costs for operating
supplies, such as paper and cartridges should also be reasonable.  Systems
that require such hardware part which cannot be obtained economically,
readily and locally should be avoided. 
Points to consider while selecting a PMS

Ease of Installation:  Hotel’s operate 24hrs a day and 7 days a week, so any
disruption in the continuous operation of its PMS can affect the hotel and its
guests.  Before selecting a new PMS, the FOM should thoroughly investigate the
amount of time required in the installation of the new system.  Installation time
and its actual cost must be a common consideration in the selection of a new PMS.

Ease of Use:  New Front Office employees must learn how to use the PMS.  The
ease with which they can learn the system is a factor in reducing training costs and
increasing the pace at which new employees become comfortable operating the
system.

Ease of Interface Integration:  Information needed by FOMs to professionally

manage Front Office comes from a variety of sources.  Hotels use many automatic
systems like card-key machines, telephone systems which must interface with the
PMS for operational utility and efficiency.
Points to consider while selecting a PMS

Maintenance Requirements:  Like any other hotel equipment, the PMS must be
properly maintained to operate efficiently.  The cost of effective preventive
maintenance may vary from one PMS to another. The FOM must determine and
understand the time and money required to minimize down time and to maximize
system efficiency by providing routine, ongoing maintenance.

Ease and Frequency of Upgrading:  Technology advances at a fast pace.  Hardware

and software upgrades are routinely issued by manufacturers, and most of these
significantly improve the operational effectiveness of a PMS.  FOMs should
anticipate significant increases in demand for up gradation, memory, and speed
and should provide for the same at the time of procurement. 

Quality and Availability of Support Services:  A PMS is a computerized system and

is vulnerable to hardware malfunctioning, software glitches, and potentially
damaging intrusive viruses.  Support services personnel, preferably via a toll free
telephone number must be accessible on a 24 hrs and 7 days basis.
OTHER CONSIDERATIONS:
a. Vendor claims: (claims made by the supplier) One may inquire about
the product from current users whether they are satisfied using their
system.

b. Installation plans: Proper planning of installation is essential for

maintaining guest satisfaction and employee morale. One must have a
complete plan laid out for hardware and questions such as who would
be installing the hardware and cables, etc. should be clearly identified.

c. Training: Is classroom and on-the-job training provided by the

vendor or not? If yes, is it charged for separately or is inclusive in the
price quoted? Whether a training module is included or not?
OTHER CONSIDERATIONS:
d. Documentation of procedures: Clear-cut procedures and
instructions, guides and manuals provided- yes/no?

e. Back-up power supply: Provision of UPS sources- yes/no?

f. Maintenance agreement: The cost of repair and replacement

of hardware and software; provision of emergency services
should be considered. Annual Maintenance Contracts- AMC-
may be a good idea to keep the system functioning smoothly.
 IMPORTANCE OF USING COMPUTER APPLICATIONS IN FRONT
OFFICE

Reduces paper Environment Increases

Saves time
work friendly efficiency

Improves co-
Increases speed
ordination among
Reduces error and guest
different hotel
satisfaction
departments
Reservation Module includes the following features:

It provides room status It can check the It displays room

records when the date of reservation status of a availability status by
arrival, date of departure guest quickly. simply selecting a date.
and type of guest rooms
are entered in the system.

It can attach guest It can automatically It can create group blocks

messages to relevant calculate rates. etc.
reservations, to be
delivered at the time of
arrival.
Front Desk Module includes the following features:

• It can access guest information easily and quickly for

viewing, modification or check-in.
• It displays a graphical room layout with the room status
information.
• It tracks all guest activities for the length of their stay.
• It prints registration cards.
• It updates the system in case of a guest room change etc.
 Cashier Module includes the following features:

It manages all aspects of the guest folio It allows the viewing or printing of folio It consolidates all transactions and
including debits, credits, adjustments, details and summary information. produces and accurate bill, enabling a
transfers and allowances. speedy checkout.
Reporting
Module • The reporting module has various formats which
includes allow the management to retrieve operating or
financial information at any point of time.  With
the this module, the management can quickly access
information such as the availability of rooms on a

following
particular day, the number of guests arriving on a
specific day, listing of guest’s folio balances,
outstanding balance reports etc
features:
Night Audit Module

• It balances the day’s activity and completes the hotel’s

accounting functions for the day.
• It can perform routine tasks of posting room charges, changing
non – guaranteed room reservations to no – shows, and
changing the status of guaranteed no – shows with one touch.
• It has direct access to reports module.
• It automatically posts service charges like garage fees, crib fees
etc.
• It can do batch printing of registration cards.
• It has the ability to process no-shows with deposit payments.
• It automatically sets the housekeeping status of occupied room
to dirty.
Set-up Module

• It can specify mandatory fields for required information and add

custom information and forms.
• It can customize according to the market, source and rate codes,
and can also define text for field selections.
• It can generate and customize colour codes.
• It allows the employees to access their function areas in the
system using unique user IDs and passwords.
• It creates and maintains profiles of individuals, groups,
companies, and travel agents.
• It can display all message prompts and screen text in the local
language.
• It sets a time limit for retaining the guest folios and profiles.
 Sales and Catering (Banquets)

• This function of the PMS deals with banquet activities

and reservations regarding the booking status for any
function space, specific occasions as well as days and
time of the booking. More advanced systems also
record the number of pax and employee assignment.
The most important function is billing or posting of
transactions to the Sales ledger which can be handled
efficiently by the F&B staff.
Back Office Module

• The back office module provides an integrated system

for managing the hotel’s financial and statistical
information. It simplifies accounting process such as
posting of accounts payable, transfer of accounts
receivables, compilation of the payroll, budget
preparation, and the production of the hotel’s profit
and loss statement and balance sheet. The back office
module is also linked with the night audit module,
which helps in streamlining the accounting process.
MATERIAL MANAGEMENT SYSTEM-MMS- (Stores &
Purchase):

• This covers the entire material management operations such

as requirement planning, purchase, receiving of stock,
costing, etc.
• The system also provides information for effective decision
making and budgeting.
• Purchase requirement is effectively managed helping in
better management.
• It stores the history of purchase vendors in order to
efficiently study cost analysis for lower purchase costs.
• It gives automatic reminders on pending purchases which is
helpful during high occupancy this ensures orders for timely
supplies.
MATERIAL MANAGEMENT SYSTEM-MMS- (Stores &
Purchase):

• Easy monitoring of stock.

• Assists management in making effective purchase in
relation to proper storage area.
• Provide for automatic stock accounting details.
• Facilitates on the spot checking of stock.
• Facilitates comparison of market trends for analysis and
decision making.
MANAGEMENT INFORMATION
SYSTEM (MIS):
• The MIS should provide statistical information to the
management to assist in decision making and revenue
control.
• MIS provides the database regarding forecasts and budgets
which helps management in establishing room rates.
• Comparison of budgeted figures along with actual figures
established by sales & marketing department in relation with
front office helps the management to address the problem
in case of losses.
• An MIS should provide data which is comprehensive,
accurate and detailed with business and sales analysis to
ensure increased revenue and higher occupancy.
 FINANCIAL ACCOUNTING SYSTEM:

This module provides information required for basic accounting as well as financial
management of the hotel. Its main features are:
• Integration of account receivable, account payable, material management,
ledgers, and payroll in the financial accounting system.
• An accounting system facilitates the administration in audit reconciliation on a
daily basis, comparing of cash with raised vouchers, etc.
• Monthly information regarding balances, profit and loss statements is also
prepared.
• Provides timely updated and accurate financial information to accounts
receivable for future financial control.
• Forecasts daily cash flow for better cash management.
• Comparison of budgeted to actual revenue and related expenditure is efficiently
managed.
• Timely financial statement of account is made available
 F&B CONTROL SYSTEM:

This is the most important area of concern as a major POS which can raise
revenue and create a lot of savings through control of F&B by minimising
wastage of material.
An efficient control system should establish standards of raw material
usage in order to minimise wastage.

This should highlight raw material consumption reports in case

consumption is exceptionally high.

It should automatically pick up sales details for the POS system.

This should also control and check beverage consumption through the
POS.
HUMAN RESOURCE INFORMATION SYSTEM (HRIS):

• The human resource of the hotel is the most important and

the most expensive asset.
• A good HRIS should integrate the requirement for effective
career planning, personnel administration, and payroll
information.
• The system should include comprehensive data regarding
personnel career development as well as future manpower
requirements.
• Should facilitate extensive reporting on appraisals.
• Should facilitate a complete database on leave and
attendance.
• Should facilitate comprehensive and detailed payroll system
with automatic salary calculation and printing of payslips.
CENTRALISED RESERVATION SYSTEM (CRS):

• A CRS is used for a chain or group of hotels to enable the sale of their
rooms more effectively.
• The CROs (Central Reservation Offices) are linked for an effective and
real time management
• It primarily works on WAN- Wide Area Network
• Examples are: MARSHA, TAJ, Leading Hotels of the World,
WELCOMNET, Holiday Inn World Wide, OCC (Oberoi Call Centre), and
more
• The CRS can operate in two ways. One, it can be a CRS for one group of
hotels in different locations (affiliate members). Second, it can sell
rooms belonging to different hotels which are not connected or linked
to each other but use the services of the CRS to sell their rooms on a
wider scale thus reducing their investment and reaching a greater
market which may not have been possible on their own.
CENTRALISED RESERVATION SYSTEM (CRS):

• All properties featured in the CRS database can be accessed

by a search criterion- this means that a reservationist can
assure customised service based on the needs of a
prospective client. Hotels fitting in the search criteria and
displaying availability for the requested dates will be
displayed on the screen. This enables the reservationist to
offer a hotel that may be a better option for a scheduled
date.
• Repeat guest history data for each hotel can be stored in the
CRS. The past stay information on each guest history is
updated at the time of the last departure. When the guest
wants to return to the same hotel, this data can guide the
reservationist to offer appropriate rooms.
PMS
• PMS AND OTHER SYSTEM INTERFACES
• An interface is a point where two systems meet and interact,
operate jointly and communicate with each other.

• Non-Guest Operated Interfaces – When the PMS integrated

with other stand-alone automation systems like point of
sale, Energy Management System, Call Accounting System
and Electronic Locking System, it becomes more effective
and useful for hotel operations. Common interfaces that are
initiated and directed by hotel staff include the following:
POINT OF SALE
(POS)
• In a hotel, POS are the products /services other
than accommodation from where the hotel
generates revenue. These include restaurants,
bars, discotheque, night club, health centre etc.
Each point of sale is equipped with a stand-alone
automated support for billings. If this is linked
with the PMS, the data is immediately
transferred to other modules for further
processing.
• For Example – A resident guest’s credit sale in a
restaurant will be immediately transferred to the
cashier’s module, where it will be posted in the
respective guest folio.
CALL
ACCOUNTING
SYSTEM (CAS) –
• Hotels provide telephone facility to their
guests. The resident guests can make local
as well as long distance calls from the
comfort of their rooms. The call
accounting system tracks all outgoing and
incoming calls. It has the features like
identification of outward dialling,
automatic route selection, and call rating
programme. When the call accounting
system is integrated with the PMS
interface, the calls are automatically
posted in the respective caller’s account.
ENERGY
MANAGEMENT
SYSTEM (EMS) -
• This is designed to manage the operations
of equipments and instruments that
consume energy. One typical function
would be to shut down the operations of
equipments that are not in use.
• For Example – When a guest locks his
room with the electronic key, the weather
control system and lights are
automatically turned off.
 • The electronic locking system is used widely nowadays. This system helps the hotels
ELECTRONIC to control access to guest rooms. Only a person with the proper card key coded for
the specific room can enter that room. When the electronic locking system is
LOCKING networked with the PMS, the front desk person is able to code the room keys for
the guests. The coding is such that the key will become non – functional after the
SYSTEM (ELS) – check-out time on the date of departure.
Guest – Operated
Interfaces:

• Automatic information kiosks in public

areas
• In-room remote control devices
• In-room operated tab.
• Self c/in , c/out kiosks
GLOBAL DISTRIBUTION SYSTEM (GDS):

A global distribution system (GDS) is a network operated by a company that enables

automated transactions between third-parties and booking agents in order to provide
travel related services to the end consumers.

A GDS can link services, rates and bookings consolidating products and services across all
three travel sectors: i.e., airline reservations, hotel reservations, car rentals, and
activities.

GDS is different from a computer reservations system which is a reservation system used
by the respective vendors. Primary customers of GDS are travel agents (both online and
office based) to make reservation on various reservations systems run by the vendors.
GDS holds no inventory, the inventory is held on vendors reservation system itself. A GDS
system will have real-time link to the vendors’ database.
GLOBAL DISTRIBUTION SYSTEM (GDS):

• For example, when a travel agency requests a reservation on the

service of a particular airline, the GDS system routes the request to the
appropriate airline computer reservations system. This enables a travel
agent with a connection to a single GDS to choose and book various
flights, hotels, activities and associated services on all the vendors in
the world who are part of that GDS.
• Various tourism-linked services, one of them being hotel
accommodation among others such as air tickets, car rentals, etc.
• Usually the GDS terminals are with travel agents. They may be linked to
the GDS through a dial-up mode or a leased line.
• All GDS are linked through apparent satellite.
• Examples: Apollo, Galileo, Sabre, Amadeus, Abacus, WorldSpan,
Fantasia, and more
AMADEUS 

Amadeus property management system can be integrated with Front

Office, sales and marketing, and financial management functions.  It allows
the user to move faster in all core aspects of guest experience
management. 

FRONT OFFICE MODULE:  This module offers full availability, reservation,

billing, and yield functionalities, which in turn generate useful performance
statistics.  It provides data on performance indicators such as sales,
accounts, source, and segment activity, which is monitored to analyze
business efficiency and used to generate management reports. 

SALES AND MARKETING MODULE:        This module aids the sales and
marketing professions to target potential guests and effectively manage
customer relationships. 
AMADEUS 

CONFERENCE AND BANQUETING MODULE:      Event

planning is a feature that helps generate revenue for
hotels.  The key features of the conference
management system include real time conference/
meeting room availability and equipment management.

FINANCIAL MANAGEMENT:  It is designed for liquidity

planning and control along with comprehensive
accounting, financial reporting and analysis
FIDELIO

Fidelio hotel management software is a completely integrated system package.  Fidelio headquarter is
in Munich, Germany.  This EMS maximizes the efficiency of the hotel.  It is a highly flexible system.  Its
uniform and user friendly programme means that the hotel employees can learn this system quickly. 
Fidelio has pulled down menus which help and assist the user at every step and only short term training
to staff is required. 

Fidelio promotes smooth functioning of all the departments.

It reduces paper work and helps in saving money on extra stationery.

It eliminates communication gap between departments.

FIDELIO

It helps in providing quality service to the guest thereby, up-

keeping the hotel’s goodwill.

It is a highly flexible Programme and has facilities like screen

painter, report generator, user definable report menus and night
audit etc.

It has the ability to create extensive guest history.

It has extensive modules for various hotel management

operations like reservation module, front desk module, cashier
module, night audit module, material management system etc.
 FIDELIO

• One disadvantage of Fidelio may be that it is very expensive, and any

underutilization will be expensive.  Its maintenance is also costly compared
to other systems.  Another disadvantage may that during night audit
terminals are shut down, thus check-ins and check-outs during the period
cannot be taken during the period