INSTITUTE OF HOTEL MANAGEMENT, CATERING & NUTRITION,PUSA. NEW DELHI.

L-1
Computer application in Front Office Operation
Hotel industry is one place that has undergone a tremendous change in the past few
years with the advent of computers. The internet is going so fast that people
nowadays find it easier to plan their holidays online than in person or through a travel
agent. Tourist staying in the hotel find it an inseparable part of their lives. This way
the hotel guests are able to explore various options, compare prices and make
reservations from the comfort of hotel rooms rather than having to walk to the office
of a tour operator.
To become a successful Hotel today it is not enough to provide great service with
regard to room maintenance and meals, one need to cater to the customers’
expectations in terms of the technology and communication as well. The days are
over when a hotel just had to worry about its own computer that helped with the
running of the business. Nowadays a good hotel offer internet access to its guest
either within a certain part of the hotel or as a hotspot zone that surround the entire
building and can be accessed by individual rooms.

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 its advantageous to incorporate information and
latest technology in their operations
1. Internet in the hotel guests room :- Hotel guests are provided full access to
internet on there in room television. Innovation infrared wireless keyboard may be
used. A web browser, email connection, and online multilingual help can be provided
to maximize internet experience at the hotel. Wi-Fi access in rooms, free or charged
for, is provided by nearly all hotels. Free Wi-Fi is also being considered for
availability in public areas.
2.TV interactivity :- Through this concept, various guests can have access to the
same movie at different times according to their own convenience. And other uses
that the guest can refer to the TV set at any time of viewing their bills, credit limit and
expenditures even local and city information etc.
3. E concierge :- This facility empowers the guest to take a” multimedia graphic and
sound assisted tour” of the city ,shopping centres etc. while sitting in his room. This
may include making reservation at the 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

Computers are used for many different purposes in hotels.

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1. It is used and the front desk where the computers are equipped with intricate
software called the Property Management System (PMS) to do all the
check-in. guests accounting, check-out etc.
2. In a restaurant, lounge or a bar of a hotel type of computer system used
are called Point Of Sale(POS) system is used. This system collaborates with
PMS to generate bills for meals and drinks consumed by guests, but it may
also be used as cash register.
3. The computers are used in the sales office, which has a booking terminal.

A PMS is a Computer Based management system. In the hospitality industry

it is a computerized system used to manage guests booking, online
reservation , point of sale, telephones, and other amenities.
Hotel PMS may interface with Central reservation system CRS and revenue
or yield management systems, front office, back office and POS system.

Types of PMS

There are several companies that provide PMS software to hotels with their unique
features to suit the different requirement of various hotels. Some of the companies
providing PMS software are:-
a. Micros
b. IDS Fortune
c. Shaw Man
d. Fidelio
e. Opera.

INTRODUCTION TO FIDELIO
Fidelio is a complete integrated system package designed to achieve the
maximum efficiency of the hotel.This property management system is
produced in Munich Germany. It is not only flexible but easy to understand
and can be taught quickly.It has its own training module and called Advance
Demo Version no 6.11(4), enable the user to work and learn in a real like
environment.
Features of Fidelio
 Fidelio is DOS based and the new version OPERA is Oracle based.
 It can protect its software from all sorts of virus.
 In case virus enters the system then to save the system is a virus is
transferred to non usable file from database file.
 Red alert software can be used for the extra production of the files from virus.

PMS application in front office

The PMS application for the front office has different module for the efficient
functioning of the whole department. Some of the common modules used in front
office are: Reservation Module, Front Desk Module, Cashier Module, Setup Module,
Night Audit Module, Report Generation Module and Back Office Module.

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Reservation Module
 It provides the room status records when date of departure, arrival or room
type are entered.
 It displays room availability status after selecting a date.
 It can calculate rates based on room types.
 It can create group blocks or rooming list.
 It can create special group rates.
 It can check the reservation status of the guest quickly.

Front Desk Module

 It can access guest information quickly and easily for viewing, modification or
check in.
 It displays graphical room layout with the room status information.
 It can create incidental folios.

Night Auditor Module

 It balances the day’s activity and completes the hotels accounting function for
the day.
 It automatically posts service charge like extra bed, etc.
 It can do batch printing of reservation cards.
 It automatically sets the HK status of the occupied room to dirty.
Room’s Module
 It displays the entire layout of the hotel, showing a single floor or a wing at a
time.
 The display of the floor plan can be change to show housekeeping, Front
Desk or specific room status.
 It provides latest room status information to both housekeeping and front
office departments.
 It schedules the maintenance work of the rooms.
 It automatically adjust room inventory.
 It can track discrepancies in the room status.

Cashier Module
 It managers all aspects of the guest folio, including the debits, credit,
adjustments, transfers and allowances.
 It allows the viewing or printing of folios details and summary information.
 It consolidates all transactions and produces the accurate bill, enabling a
speedy check out.
 It manages all aspects of the guest folio, including debit, credit, adjustments
transfers and voids,
 It carries out the transfer of charges from folio to folio, from one room to
another in amounts or by percentage.

Set Up Module
 It can specify mandatory fields for require information and add custom
information and forms.

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 It can customise according to the market source and rate codes and can also
define text for the field selections.
 It can generate and customise colour codes.
 It allows the employees to express their function areas in the system using
unique user id and password.
 It creates and maintenance 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 folio 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 occasion as well
as days and time of the booking.
 A more advanced system also records the number of pax and employee
assignment.
 The most important function is billing or posting of transaction to the sales
ledger which can be handled efficiently by the F and B staff.

Reporting Module
 The reporting module has various formats which allow the management to
retrieve operating or financial information at any point of time.
 With this module the management can quickly access information such as the
availability of the room for a particular day, the number of guests arriving on a
specific day, listing of guest folio balances, outstanding balance report etc.

Back Office Module

 The back office module provides an integrated system for managing the
hotels financial and statistical information.
 It simplified accounting process such as posting of accounts payable, transfer
of accounts, receivable, 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 and Purchase Department

 This cover 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.
 Easy monitoring of stock.

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 Assist management in making effective purchase in relation to proper storage

area.
 Provide for automatic stock accounting details.
 Facilities on the spot checking of stock.
 Facilitates comparison of market trends for analysis and decision making.

Management Information System (MIS)

 Should provide statistical information to the management to assist in decision
making and revenue control.
 MIS provides the database regarding forecast and budget which helps
management in establishing room rates.
 Comparison of budgeted figures along with action figures established by sales
and marketing department in relation with front office helps the management
to address the problem in case of losses.
 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 statement is also
prepared.
 It 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 is 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 used in
order to minimise wastage.
 This should highlight raw material consumption report in case consumption is
exceptionally high.
 It should automatically pick up sales detail for the POS system.
 This should also control and check beverage consumption through the POS.

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Human Resource Information System (HRIS)

 The human resource of the hotel is the most important and most expensive
assert.
 A good HRIS should integrate the requirement for effective career planning
personnel administration and payroll information.
 The system should include comprehensive data regarding personal 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 payslip.

Centralised Reservation System (CRS)

 A CRS is used for a chain or a group of hotels to enable the sale of
their rooms more effectively.
 The CRO (Central reservation offices) are linked for an effective and real time
management.
 It primarily works on W.A.N.( wide area network) - examples are
MARSHA,TAJ, Leading hotels of the world, WELCOM NET, Holiday Inn
World Wide, OCC(Oberoi Call centre) and more.
 The CRS can operate in two ways. One which can be a CRS for one Group of
hotels in different locations (affiliate members), Second it cancel rooms
belonging to different hotels which are not connected or linked to each other
but uses 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.
 All properties featured in the CRS database can be accessed by search
criteria 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 schedule date.
 Repeat guest history data for each hotel can be stored in the CRS. The past
stay information on each case 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 and other Interfaces

An interface is a point where two systems meet and interact, operate jointly and
communicate with each other.
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 the hotel operations.

 Point of sale ( POS) - In the hotel, POS are the products/ services other
than accommodation from where the hotel generates revenue. These include
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restaurant, bars, discotheque, night clubs, health centres etc. Each point of
sale is equipped with a standalone automated support for billings. If this is
linked with PMS, the data is immediately transferred to other module for
further processing. For example- a resident guest’s credit sale in a restaurant
will be immediately transferred to the cashier module, where it will be posted
in the respective guest folio.
 Call Accounting System- 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 program. 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- This is designed to manage the
operations of equipments and instruments that consume energy. One typical
function would be to shutdown the operations of equipment that are not in
use. For example when a guest locks his room with the electronic key, the
weather control system and the lights are automatically turn off.
 Electronic Locking System -The electronic locking system is used
widely nowadays. This system helps the hotels to control access to guest
rooms. Only a person with the proper key card coded for the specific room
can enter that room. When the electronic locking system is networked with the
PMS, the front desk person is able to code the room keys for the guests. The
coding is such that the keys will become functional after the check - out time
on the date of departure.

Factors to consider for selection of a PMS

Since the PMS is a capital investment, great thought goes into the decision for the
shift of a manual working system to a fully automated one.

1. Need Analysis:-
 includes such issues as analysing the ease with which the telephone
system can be used,
 the availability of the room status,
 the length of the time taken to complete a reservation request,
 Issues as how do the F & B report guest charges?
 How does engineering monitor and control in guests room? etc.
Similarly the information is researched and various operational and administrative
needs are combined to determine which computer application would be appropriate
for the property in question. So, the needs analysis unable to know what is needed
and what is not needed and will help choose from many PMS available in the
market.
Procedure for Performing a Need Analysis
A. Select a team to analyse needs.
B. Analyse the flow of guests through the lodging property like reservation,
registration, guest accounting, checkout, night audit, guest history.

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C. Analyse the flow of information from other department to the front office.
D. Analyse the administrative paperwork produced in other departments.
E. Review information in step b c and d above.
F. Evaluate the names that have been identified such as control reports,
communication and administrative paperwork produced in other department etc. in
terms importance.
G. Combined needs to determine design applications.

2. Software selection software

 Today software is available in modules to cater for different areas in a hotel.
Based on requirement based on the conclusion of the need analysis in point
1, a hotel may go for the entire PMS or parts of it, i.e. certain modules only as
per the budget, amount of business etc. Many hotels combine module for
different departments from various PMS available. A hotel may have the
rooms module of FIDELIO, the payroll and accounting module of SHAWMAN
,and so on.
 It should be configured or customised as per the needs of the hotel.
 Growth and flexibility- it should be able to handle present needs and grow with
the hotel i.e. can be added on with increased number of services.
 User-friendliness:- should be well designed with clear menu prompts, self
explanatory input screens, simple error correction, should require minimum
training, etc.
 Operating system: - should be carefully selected and compatible with the
hardware.
 Multi user capability: - several users can have access to and enter data at the
same time.
 Report generator: - to meet special requirement of the hotel those are
meaningful to management.
 Stability: - PMS should be able to operate without crashing and causing loss
of information.
 Secure: - the PMS should be able to incorporate security needs of the
property establishing user rights, tracking changes with user ID, etc in order to
establish accountability of actions of the users.

3. Hardware Selection
Hardware selected should be appropriate to run the selected software with the basic
concept to
A. Processor speed - how fast a CPU makes calculations per second,
B. Disk Drive - in megabytes is the access time, the time taken by the processor
to retrieve information from the hardware drive in milliseconds.
C. I-O ports (input and output devices)- keyboards, printers, monitors, Mouse
modem, CD drives, etc.
D. Other Supplies: - Paper, ink, toner etc.
Other factors to keep in mind are:
 Positioning of the hardware- this is based on the work flow analysis done
during the need analysis.

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 How does it benefit the guest? Who will operate it? Who will require access to
the system at that position? and so on
 Climatic condition: - weather location will be air conditioned offices?
 Ergonomics: - is a study of the psychological and physiological effects of
design of equipment and other work conditions on people in the workplace as
this affect productivity.
For example: glare and flicker from the cursor, a flashing point on the monitor
that indicates where the data can be entered, can cause eye strain, Neck pain
may result from improper positioning of the monitor, extreme pain in finger
joints caused due to excessive use of keyboard and so on.

Other Consideration
A- Vendor claims: - (claims made by the supplier) one may inquire about the
products from the current user whether they are satisfied using the system.
B- Installation plans: - proper planning of installation is essential for maintaining
guest satisfaction and employee morale, one must have a complete plan laid 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?
D. Documentation of procedure: - Clear cut procedures and instructions, guides and
manuals provided yes or no?

E. Backup power supply: - provision of UPS sources yes or 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.

5.Financial Considerations
 The decision regarding options of purchase or rental of a PMS since it is a
heavy investment it can tie up cash flow of an organization.
 If cost benefits are not realistically projected, profit may be difficult to come by.
 Analyse the savings in terms of overtime paid to the employees, losses due to
late charges, cost of marketing, database collection etc.
 Advantages of outright purchase as opposed to staggered payments
(instalments) should be considered. There may be discounts offered for the
outright purchase in cash.
 Advantages of lease- application of leased payment to purchase price, tax
advantage of leasing, etc.

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Global Distribution System(GDS)

Salient features of Global Distribution System
 Global distribution system is a network operated by company that enables
automated transaction between third parties and booking agents in order to
provide travel related services to the end customers.
 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 reservation system which is a reservation
system used by the respective vendors.
 Primary customers of GDS are travel agents (both online and offline) to make
reservation on various reservation system run by the vendors.
 GDS holds no inventory, the inventory is held on vendor reservation system
itself.
 A GDS system will have real time link to the vendors database, for example
when a travel agency request a reservation on the service of a particular
airline, the GDS system routes the request to the appropriate airline computer
reservation system.
 This enables a travel agent with a connection to a single to 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 Link Services, one of them being Hotel accommodation
among one other such as air tickets, car rentals etc.
 Usually the GDS terminals are with travel agents they may be linked to the
GDS throw a dial UP board or a leased line.
 All GDS are linked through apparent satellites.
 Examples: - Apollo, Galileo, Sabre, Amadeus, Abacus , World Span, Fantasia
etc.

INTRODUCTION TO AMADEUS
 Amadeus is a computer reservation system or( global distribution system)
since its sells tickets for multiple Airlines owned by Amadeus IT group with
headquarters in Madrid, Spain.
 The central database is located in Germany. In addition to Airlines, the CRS is
also used to book train travel, cruises, car rentals, ferry reservation, and hotel
rooms. It can be integrated with front office, sales and marketing, financial
management functions. It allows a user to move faster in all core aspects of
guest experience management.
Features of Amadeus
 Direct connections to GDS to streamline the distribution.
 Offers a single view of Rates, inventory, content guest information and
reservation for all properties within the chain.
 Centrally managed PMS for hotel chains and hotel groups.
 Central Reservation System to connect individual properties and hotel groups
to the GDS and online distribution.
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 Technology to distribute hotels in both online and travel traditional

environment.

∝∝∝∝∝∝∝∝∝∝∝∝∝∝∝
 Extra reading is recommended from the book “Hotel Front Office
Management” written by James A Bardi. Pages 96-108.
Important questions
1. What are the needs of a PMS in a hotel and what are the advantages
of using PMS in hotels?
2. Give 10 examples of PMS used by hotels today?
3. Give Salient features of Fidelio and Amadeus?
4. Mention the factors to be considered before purchasing/ selecting the
PMS?
5. What is a Folio? Discuss types of Folios used in hotels and draw
sample of gust Folio.
6. Explain the procedures to be followed, while doing Need Analysis.
7. Explain in detail any four soft ware’s that a PMS has interfaced with?
8. Answer in Two lines:-
a) PMS
b) POS
c) MIS
d) MMS
e) EMS

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