IT Boom For Hospitality Industry

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Information is the key to decision-making in any business, therefore getting the right information at the right time, at the right place, and faster makes a lot of difference in any business and so, especially in Hospitality Business where the decisions are taken instantly at some levels. In this context, the age-old phrase “Garbage In and Garbage Out” is valid even today as incorrect information may lead to problems. It is not uncommon that one may have a good computer system yet may not be successfully getting the right information for the business. 

It is a combination of the Right People and the Right System that makes a business successful. Although lots of developments have taken place in terms of computers and their applications, making use of them completely rests with the person using them. Computers cannot replace men! With this, I would like to put a few of my thoughts that may be useful to the Hotel Fraternity.

There was a time when people used to write simple expense statements and general ledgers to balance sheets manually. Most difficult front office operations used to be monitored manually through a long sheet of paper. Computer pundits came out with great solutions specifically to the hotel industry making life easier for front-end staff who need to attend to guests most of their time rather than looking at the paper. Information and good service are the keys to success in the hospitality industry. 

Today, computers do magic for the front-end staff enabling them to devote more time to pleasingly attending guest requirements without compromising the Standard Operating Procedures (SOP). From the time of reservation until the time the customer checks out of the hotel, everything is recorded and the data is available. The computer system monitors the guest's requirements, likes and dislikes, wants, and satisfaction levels in a readable way that helps the hotel enhance its future services.

To achieve good results through the computer system one should first understand one’s requirement in terms of fastness of information, kinds of reports, formats, etc. Second, the flow of work that takes place in each activity. Third comes the procedures and last its effective implementation. All this becomes the system component. Once this is understood, the next step is to make a program or customize it accordingly through the software. The software cannot work without hardware. A good Information Technology System comprises three components, Systems, Software, and Hardware.

Selecting the right type of system is most important for any hotel operation. Most of the hotels use special software made for hotels which is generally called Property Management System (PMS). PMS comprises both front-end and back-end solutions. Various other solutions are not part of PMS but, get interfaced with the PMS. There are very few property management systems that have integrated solutions built in with both front and back ends, like IDS Fortune Enterprise. Choosing the right system requires expertise and knowledge about the hotel operation. 

Normally, all systems come with Room Division – with Front Office System and House Keeping Module, Food, and Beverage Division – with Point of Sale and Back End system – with Accounting, Inventory, and Human Resources. 

System requirement for each facility differs and it should preferably be a cost-effective solution. Not all hotels need to require the most expensive computer systems. Small hotels need a simpler system than big operations where complicated services, standards, data assimilation, and decision-making tools are required. Many big operations require various interfacing such as Telephones, Internet, Interactive Television, Door Locking systems, Yield Management, Global Distribution Systems, Visa/Master Card, etc. 

All these can be automated through the Property Management System efficiently and effectively. This reduces not only the manpower but also reduces mistakes that happen when handled manually.

While choosing the system, a proper evaluation of the PMS has to be made. The evaluation must be in terms of User Friendliness, Menu Driven navigation, Key defined access, Lesser number of keystrokes, Easy access to required data, Visual Impacts, Meaningful reports, various levels of security access, the possibility of customization at the user level, etc.

Some of the systems are more strong in the front end and weak in the back end. Some of the properties may require a strong front end and the back end could just be reasonable. Some of the properties such as Hotel Apartments generate more room-oriented business and hence Front Office system must be stronger. Similarly, a property with various food and beverage outlets must use the right Point of Sale (POS) system. 

One has to choose the system that is sufficient for the property depending on the number of keys, food and beverage outlets, other minor operating departments, facilities, and services offered in the property. Many times, one may come across choosing a very powerful system for a small operation by paying huge sums of money or vice-versa. Many of the features of the system may not be even useful or under-utilized and similarly, big operations may not have the right system offering sufficient features.

Good IT personnel should have knowledge of all three components, i.e., System (flow of each activity), Software (that translates the activity in measurable terms both quantitatively and qualitatively), and Hardware (Media through which we can see these activities). All this should reflect primarily guest satisfaction, staff satisfaction, management satisfaction, and owner satisfaction. 

Most PMS software gives generic solutions. Customization is important to achieve what one wants from the system chosen. Some of the PMS software is customer friendly and customization becomes easier there is also rigid software that does not allow customization. It all depends on the architecture one has used to build the software. User-friendly software will allow customization without making structural changes.

Many times, I have come across hotels not using the software to its full extent. Although the system is capable of delivering various reports and usage, they are not fully utilized due to the lack of proper training and induction in using the software. This happens when properties are opened in a hurry without giving sufficient time for training. Due to the vastness of the PMS, a person has to undergo training for a minimum of two months to understand the complete system. Out of two months, one month must be on-the-job training. Most of the users will come across various problems while on the real job. A good PMS supplier will be able to give solutions for all the problems that have logical answers. Proper training is the key to effective implementation.

While choosing PMS software for a property, one has to derive the guest needs in the front end on one side and the needs of the management and the owner at the back end on the other side. Staff should be able to use the system comfortably in achieving both ends. One has to set the right parameters in the system that can be used to create meaningful reports that help in decision-making easier and faster at all levels. This, as said before, requires expertise and knowledge of all three components of IT.

Today, computers and software can give solutions to the most complicated logical problems in any operation. Computers make life easier in getting the right reports at the right time which helps in the decision-making process easier and faster. Computer systems can prompt if any mistake is made, it can prompt opportunities and it can prompt to take corrective action proactively. Yield Management in the rooms division or Menu Engineering in the food and beverage division is an example of such functions. The computer system can be used to enable both planning and control functions to achieve the objectives of the organization.

Yet, man made the computer and not the other way. One has to understand, that man is intelligent and intellectual. The computer is made with the intellect of man and hence works only with the logic of the mind. The logic of the mind cannot go beyond mathematics! Intelligence is beyond mathematics. 

Man cannot be replaced at any level. Despite having the most advanced system, one has to rely on the supervision of a man to see the level of satisfaction guests get in a hotel. Expression of satisfaction from the guests can be seen only when you see them eye to eye.

 

 

© Sanjay K Mohindroo 2024