Slides of Functional applications of information system

1. 1

2. Functional Applications of Information System
 Introduction to Information System, Characteristics of
Information System,
 ComputerReservation System (CRS), Global
Distribution System (GDS), Property Management
Systems (PMS), Point of Sales Systems (POS)
2

3. Characteristics of information
system i. Understandable:
 Since information is already in a summarized form, it must be
understood by the receiver so that he will interpret it correctly.
He must be able to decode any abbreviations, shorthand
notations or any other acronyms contained in the information.
 ii. Relevant:
 Information is good only if it is relevant. This means that it
should be pertinent and meaningful to the decision maker and
should be in his area of responsibility.
 iii. Complete:
 It should contain all the facts that are necessary for the decision
maker to satisfactorily solve the problem at hand using such
information. Nothing important should be left out. Although
information cannot always be complete, every reasonable effort
should be made to obtain it.
3

4.  iv. Available: Information may be useless if it is not
readily accessible ‘ in the desired form, when it is
needed. Advances in technology have made
information more accessible today than ever before.
 v. Reliable:The information should be counted on to
be trustworthy. It should be accurate, consistent with
facts and verifiable. Inadequate or incorrect
information generally leads to decisions of poor
quality. For example, sales figures that have not been
adjusted for returns and refunds are not reliable.
4

5.  vi. Concise:
 Too much information is a big burden on management and
cannot be processed in time and accurately due to “bounded
rationality”. Bounded rationality determines the limits of the
thinking process which cannot sort out and process large
amounts of information. Accordingly, information should be to
the point and just enough – no more, no less.
 vii. Timely: Information must be delivered at the right time and
the right place to the right person. Premature information can
become obsolete or be forgotten by the time it is actually needed.
 Similarly, some crucial decisions can be delayed because proper
and necessary information is not available in time, resulting in
missed opportunities. Accordingly the time gap between
collection of data and the presentation of the proper information
to the decision maker must be reduced as much as possible.
 viii. Cost-effective:
 The information is not desirable if the solution is more costly
than the problem. The cost of gathering data and processing it
into information must be weighed against the benefits derived
from using such information.
5

6. Computer reservation systems (CRS)
 Computer Reservation Systems (CRS) are
primarily used for inventory management by
airlines, hotels, and other tourism and hospitality
enterprises.
 Now CRS provides integrated solution for
managing sales, bookings, customer relationship
management and service, other marketing
practices, yield management, payments and
accounting even at a one to one customer basis.
6

7. Contd…
 Central Reservation System refers to the CRS
developed by hotel chains for centralizing the
reservation process of all their affiliated properties
and enabling multi-chain management.
 CRS do not only tremendously help in processing
reservations, but they also support decision
making in marketing and sales.
 Most CRS tend to serve and support several
business functions as follows:
7

8. Contd…
 Improved capacity management and operations
efficiency.
 Facilitate central room inventory control.
 Provide last room availability information.
 Offer yield management capability.
 Provide better databases access for management
purposes.
 Enable extensive marketing, sales, and operational
reports.
8

9. Contd…
 Facilitate marketing research and planning.
 Travel agency tracking and commission payment.
 Tracking of frequent flyers and repeat hotel guests.
 Direct marketing and personalized service for repeat
hotel guests.
 Enhance handling of group bookings.
 Integration with external reservations networks.
 In-house reservations networks.
 Single-property reservations systems.
 Property Management System (PMS).
9

10. 10

11. Global Distribution Systems (GDS)
 A 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.
 Primary customers of GDS are travel agents (both
online and office-based) to make reservation on
various reservations systems run by the vendors.
11

12. Contd…
 A GDS system will have real-time link to the
vendor's database.
 The GDS system routes the request to the
appropriate airline's computer reservations system
means work as mediator.
 GDSs are global access technologies that allow
worldwide real time distribution.
 GDS contains a database with information on
travel products (air, hotel, rental car, etc.), such as
schedules, prices, availability, and descriptions.
12

13. Contd…
 GDS can be defined as centralized databases
which are constantly refreshed, updated, and
accessible to the subscribed by means of computer
terminals.
 GDS main objectives are: technological
experience, reduce user costs, simplify the
reservation process, widen their range of products
and services, establish strategic alliances with new
potential competitors, develop a political market
related to the travel agencies, incorporate in their
portfolio offers of low cost companies, etc.
13

14. 14

15. Property Management Systems (PMS)
 It is also known as Hotel Operating System
(HOS), under business terms may be used in real
estate, manufacturing, logistics, intellectual
property, government or hospitality
accommodation management.
 It is a computerized systems that facilitate the
management of properties, personal property and
equipment, including maintenance, legalities and
personnel all through a single piece of software.
15

16. Contd…
 Modern property management systems favor web
and cloud technology and offer their software to
clients using a software-as-a-service model.
 It coordinates the operational functions of front
office, sales and planning etc.
 Sometimes referred to as ‘‘front office systems’’.
 The front office is often described as the center of
all hotel activities.
 It not only acts as the main contact point between
the hotel and the guest, but also provides -
16

17. Contd…
information to and receives information from,
practically every other department.
 PMS’s primary functions are to track which rooms
are currently occupied or vacant, and to maintain
the guests’ folios (sheet) by recording details of all
sales and payment transactions, they also act as
the information hub of all the other ancillary
(additionally) system used to improve customer
service, and interface with reservation systems.
17

18. Contd…
 The functions of a PMS may be broken down into
four different categories:
 Registration
 Housekeeping
 Guest accounting
 Night audit
 Likewise Security, Maintenance, Human Resource
Management, Food & Beverage, Marketing &
Sales, Reservation, etc are also the services and
facilities that are available in the PMS system.
18

19. 19

20. Point of Sales System (POS)
 Any point where a sales transaction can occur in a
hospitality organization, such as restaurants, bars
can be considered a Point of Sale.
 EPOS systems are used in reception and the
restaurants of a hotel and any department that cash
transactions take place.
 EPOS systems can be linked directly to the main
hotel computer system and a transaction at the
restaurant can instantly debited on the room bill.
20

21. Contd…
 A point of sale (POS) system is an integrated
configuration of hardware and software that
connects front of the house operations to the back
of the house accounting functions.
 A POS system can report additional information
such as profit, how much inventory is on the shelf,
which products should be ordered, and how many
individual menu items were sold for a specified
period.
21

22. Contd…
 A POS system can help reduce theft and inventory
shrinkage, reduce or increase inventory levels,
monitor margins, speed guest check settlement,
increase accuracy, and keep track of guests.
 The point of sale is often referred to as the point of
service because it is not just a point of sale but
also a point of return or customer order.
 Additionally, today POS software may include
additional features to cater for different
functionality, such as inventory management,
CRM, financials, warehousing, etc.
22

23. 23

24. 24

25. 25

26. 26

27. 27

28. 28

29. Methods of Minimizing Non-sampling Errors
 Checking the sampling process
 Preparation of questionnaire
 Pilot survey
 Fix procedures
 Use of competent manpower
 Provide information
 Provide training
 Use of experts
 Checking data processing and analysis