Management Information System in Hotel Industry

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MIS ASSIGNMENT 1

Assignment for
Management Information System





Assignment
On
Hotel Industry



Submitted By:

ROHIT BARVE 2013240
ROHAN RAJ 2013239
SARGAM SHARMA 2013259
Section E

Course Instructor - MIS

Prof. Anil Kumar


MIS ASSIGNMENT 2


GLOBAL ENVIRONMENT
The hotel industry is a broad category of fields within the service industry that includes
lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional
fields within the tourism industry. The hospitality industry is a several billion dollar industry
that mostly depends on the availability of leisure time and disposable income. A hotel unit such
as a restaurant, lodging, or even an amusement park consists of multiple groups such as facility
maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders,
etc.), management, marketing, and human resources.
Global economic crisis during 2008 affected the tourism industry worldwide. The same year
added to the downturn of hotel industry in India on the account of increased safety concerns,
triggered by the Mumbai terror attack at Hotel Taj. Globally weak macroeconomic scenario,
the European sovereign debt crisis, geopolitical turmoil in the Arab countries, high interest
rates, inflation coupled with muted domestic corporate performance have sapped the hotel
industry. The Indian hospitality industry is however, on the path of recovery and the domestic
traveller has spearheaded its growth. The improving demographics, rising affluence and
spending propensity of Indians along with current under penetration throw up significant
growth opportunity for Indian hotel industry in the long run.

Year 2011 saw some developments in this regard with tourists flow picking up worldwide
(more rapidly in India) though the revenue realizations of the hotel industry remained
constrained. Despite the upheavals, foreign tourist arrivals (FTA) to India grew by 8.8% to
62.9 lakh tourists while international tourist arrivals grew by 4.4% to 980 million travellers
during CY2013 (Calendar year - Period ending December-13).


International Tourist Arrivals and Growth Rates




MIS ASSIGNMENT 3

As per information on approved hotels maintained by Ministry of Tourism, number of
rooms increased by 27 % during 2010 compared to the previous year whereas the increase
was about 38 % compared to 2002. The increase in number of hotels was more at 36 %( 2010
over 2009) and 58 %( 2010 over -2002).However, since the data pertains to classified hotels,
any analysis may be taken with caution since greater No. of hotels pending for classification
may bring down the increase or vice versa. However on the whole it seems that average size
of hotels has seen a decline. This may be in tune with the increasing number of rising middle
class budget conscious traveller and growth in demand in that segment.
Financial Performance of Hotel Industry: Hotel Industry is characterized by seasonality
with industry peaking during the second half of the fiscal. The muted RevPAR (revenue per
available room) growth has been on account of subdued ARRs, while occupancies remained
stable despite the incremental supply in several markets. While this trend shows demand
generation and absorption of new supply albeit at a slower than expected pace, the lack of
pricing power in a seasonally strong quarter is a concern and has impacted margins. Quarterly
trends show revenues improving but operating profits continue to be pared by higher customer
servicing cost & heavy interest burden.



MIS ASSIGNMENT 4

LIST OF HOTELS
There are many Hotels in the hospitality industry that makes planning a vacation or a business
trip easy for everyone. The Hotels plays a vital role in helping people regain their happiness.
The chief purpose of these firms is to make people relax and enjoy the trip of their choice.
Some of the well-known firms of the Hotel industry are given below:
Hilton Hotels

The Oberoi

The Taj Mahal

JW Marriot

Radisson Blu

Distribution of Hotels:
Categories of Hotels: In general, to be called a hotel, an establishment must have minimum
of six letting bedrooms, at least three of which must have attached (ensuite) private bathroom
facilities. Although hotels are classified into Star categories. (1-Star to 5 Star), there is no
standard method of assigning these rating, and compliance with customary requirements of
voluntary. In India there were 2483 government approved hotels as on 31st Dec 2010 with
about 1.18 lakh rooms.

One Star hotels provide a limited range of amenities and services, but adhere to a high standard
of facility-wide cleanliness whereas two-Starred hotels generally provide good accommodation
and better equipped bedrooms, each with a telephone and attached private bathroom. There
were about 67 One Star & 307 two star government approved hotels with about 2,500 and
8,500 rooms respectively. Their share in total number of approved hotels was 3 and 13 %
respectively whereas the share in total number of rooms was 2 & 7 % respectively.

Three-Star hotels usually have more spacious rooms and add high class decoration and
furnishing and color TV. They also offer one or more bars or lounges. With more than one third
hotels in the category, three star hotels occupied the largest share and accounted for about 31%
of total rooms.

Four Star hotels are much more comfortable and larger. It provides excellent cuisine (table
dhte and a la carte), room service, and other amenities. Four star hotels comprised 6 % of the
total approved hotels and about 10% of total rooms in various categories.

Five-Star hotel offers most luxurious premises, widest range of guest services, as well as
swimming pool and sport and exercise facilities. They (including Five Star Deluxe Hotels, 149
five star hotels and 153 five star deluxe hotels) comprised about 12% of approved hotels and
about 45 % (51,331 rooms) of total number of rooms in India.

We have selected Hilton Hotels to do further analysis on the usage of information systems in
this industry.

MIS ASSIGNMENT 5

INFORMATION SYSTEM
Transaction Processing System (TPS)
Transaction Processing System (TPS) is a no-compromise, Enterprise Level management
solution that offers a long list of powerful features to streamline your work and enhance
productivity. Such a system would usually bring forth an impression of a Complex application
that could take days to understand and months to master. A long & taxing training may appear
inevitable, and so would the efforts to retain the operational staff that is trained.

TPS offers Front desk with its revolutionary design and Graphical Interface that dramatically
cuts costs and simplifies the tasks of managing your Front desk.
Reservations
Creating a Single or a Group reservation on TPS Front desk is as simple as drawing it on its
Reservation Chart Interface. One can use the Quick Reservation form to do this instantly, or
choose to enter details in the appropriate Reservation Forms, and manage its components with
complete control. Features like applying multiple room rates, booking on different date ranges
for different room types, or accommodating special requests of Group etc. are all easy to add
and update on a simple principle of "click to change".

Housekeeping
This is where the front desk is linked to your housekeeping staff. All communication -
regarding rooms that need to be cleaned, inspected and/or repaired -flows through here.
TPS seamlessly integrates the Hotel Front desk with Housekeeping tasks and keeps them
simple. The Housekeeping module lets you organize rooms quickly, and lets you manage the
job of assigning work to your Housekeeping team and monitor them with minimal fuss.
Web Reservation Engine

Web Reservation System integrates seamlessly to your hotel website and helps you increase
direct booking revenues instantly. It is an extensively featured web booking engine that allows
both single and group reservations with immediate confirmations. The web booking page can
be customized match your website design extensively.
Guests can book multiple rooms for multiple dates in one go, and can also book or buy add-on
services offered by your Property in advance. These bookings get confirmed instantly through
credit card guarantees or deposits that are processed directly through the secured web booking
page.
The web booking process has been specially engineered to let you offer the maximum to attract
your online bookers. The booking process has been kept uniquely simple for your prospective
guests, to increase conversions by letting them complete their bookings in well defined, easy
to follow steps, quickly.
In the Web Reservation Form, you can set your terms for Booking & Cancellations. This is a
pretty straight forward reservation interface that allows Web site visitors to book online.

MIS ASSIGNMENT 6

Point-of-sale (POS) system

POS lets you manage a wide variety of services at your property through its integrated 'Point
of Sale' terminals. This includes Restaurants, Mini bar, Spa, or even services like the Travel
Desk, City Tours and much more. All orders and services of a POS can be sold directly to the
Guests, or transferred to their room as "Room Service" (to the checked-in rooms only). POS
further lets you offer the POS merchandise & services with the rooms tariffs as rate inclusions.
This is done with amazing simplicity and with easy-to-define posting rhythm and calculation
rules through our innovative Rates & Package Manager. This powerful feature gives an edge
to your Business by letting you promote your property through a wide array of inclusive rates
and packages on various distribution mediums.

Management Information System (MIS)

Perhaps the most important part of an organizations operations is its reports. Reports are what
let you judge your current performance, what it lacks and how you can improvise your services
in the future. Towards this end you can generate and view n number of reports via this module.
Access is granted strictly by clearance. All interfaces are interactive and easily navigated to &
fro with a single click.
Customer Relationship Management
The CRM provides online customer feedback form, from which the data is compiled and is
used to maintain the customer records. Further the feedbacks are used for business growth.

Challenges Overcome by use of Information System
The challenges overcome by Hotel by the use of information system are:
1. Cost reduction

2. Value addition

3. Speed

4. Agility

5. Innovation

6. Customer service and customer satisfaction

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