Module 4 - Computer Based Hospitality Systems

1.1 IOT (Internet of Things) services

What is IOT
The Internet of things (IoT) describes the network of physical objects or "things" that are embedded
with sensors, software, and other technologies for the purpose of connecting and exchanging data
with other devices and systems over the Internet.

IoT allows objects to be sensed and controlled remotely across existing network infrastructure,
creating opportunities for more direct integration between the physical world and computer-based
systems, and resulting in improved efficiency, accuracy and economic benefit.

"Things," in the IoT sense, can refer to a wide variety of devices such as

 Heart monitoring implants

 Biochip transponders on farm animals
 Electric clams in coastal waters
 Automobiles with built-in sensors
 DNA analysis devices for environmental/food/pathogen monitoring
 Field operation devices that assist fire-fighters in search and rescue operations.

These devices collect useful data with the help of various existing technologies and then
autonomously flow the data between other devices.
History of IOT

“Information is a great way to reduce waste and increase efficiency and that’s really what IOT provides”

The concept of the Internet of Things first became popular in 1999, through the Auto-ID Center
at MIT and related market-analysis publications. R Radio-frequency identification (RFID) was
seen as a prerequisite for the IoT at that point.

If all objects and people in daily life were equipped with identifiers, computers could manage and
inventory them. Besides using RFID, the tagging of things may be achieved through such
technologies as near field communication, barcodes, QR codes, bluetooth, and digital
watermarking.

How IOT works

The Internet of Things (IoT), also sometimes referred to as the Internet of Everything (IoE),
consists of all the web-enabled devices that collect, send and act on data they acquire
from their surrounding environments using embedded sensors, processors and
communication hardware. These devices, often called "connected" or "smart" devices, can
sometimes talk to other related devices, a process called machine-to-machine (M2M)
communication, and act on the information they get from one another.

Humans can interact with the gadgets to set them up, give them instructions or access the data,
but the devices do most of the work on their own without human intervention. Their existence has
been made possible by all the tiny mobile components that are available these days, as well as
the always- online nature of our home and business networks.
IOT Lifecycle

 Collect- Devices and Sensors are collecting data everywhere. At your home, In your car, at
your office and in the manufacturing plant

 Communicate- Sending data and events through networks to some destination. A cloud
platform, Private data centre and Home Network
 Analyse- Creating information from the data. Visualising the data, Building Reports, Filtering
data.

 Action- Taking action based on the information and the data. Communicate with other
machine (m2m), Send a notification (sms, email, text), talk to another system.

Internet of Things is the next stage of the information revolution and referenced the inter-
connectivity of everything from urban transport to medical devices to household appliances.
Integration with the Internet implies that devices will use an IP address as a unique identifier..
Objects in the IoT will not only be devices with sensory capabilities, but also provide actuation
capabilities (e.g., bulbs or locks controlled over the Internet)

On the other hand, IoT systems could also be responsible for performing actions, not just
sensing things. Intelligent shopping systems, for example, could monitor specific users'
purchasing habits in a store by tracking their specific mobile phones. These users could then be
provided with special offers on their favourite products, or even location of items that they need,
which their fridge has automatically conveyed to the phone. Additional examples of sensing and
actuating are reflected in applications that deal with heat, electricity and energy management, as
well as cruise-assisting transportation systems. Other applications that the Internet of Things can
provide is enabling extended home security features and home automation.

IOT in hotels – Lets discuss

There is as massive disruption in the hospitality industry accredited to a new breed of travellers
and immense technology innovations.

Mobile technology is the most popular innovation that hotels are integrating into the guest
experiences. Branded mobile apps are being offered by major hotels like the Marriott, Hilton,
Sheraton, IHG, Ritz-Carlton and Hyatt to name a few.

Guest can easily check-in, make pre-check-in requests, communicate with staff, unlock the room
and control room features through mobile apps.
“IOT is not upon us, it’s here and it’s here to stay”

Smart Rooms will become “the new normal” as travellers sync data across multiple device
when staying at hotels.

Partially mobile controlled rooms, to streaming media using voice assistants and ordering food
hotels are investing rapidly in state of the art smart room features. Big data and A.I. applications
are completely resigning guest experience from scratch. Big data is assisting hoteliers and
marketers identify major trends learning about their guest’s travel behaviour in the process.

Hotels are identifying revenue opportunities and conducting targeted predictive marketing
through the terabytes of guest data they have accumulated over the years.

Robots are becoming a very popular technology being used to surprise guest with something
special. Delivering from basic toiletries to food, these robot butlers are a popular sight in
franchisee hotels like the Aloft, Hilton, Crown plaza and many more.

After Apple’s successfully deployment of biometrics in phone, hotels are also quickly adopting to
the idea. Accor hotels are using biometric scans of guest for predictive marketing, hotel Alma
Barcelona has already deployed fingerprint locks for rooms and chinese franchise yotels have
fingerprint readers across all their properties.

PCI compliance and data security are very critical topics in modern hospitality. Hotels are highly
interested and are making major efforts to secure their hotel technology, guest data and payment
information. Enhanced security is usually achieved through compliant hardware, routinely
updated software and continuous staff training.

 Self-check in kiosks
 Keyless (Bluetooth-enabled) room entry
 Smart hotel maintenance
 Voice searches and chatboxes to make reservations
 In room features
 360 degree virtual tour of the property.
 Cross property integration
 Energy Management
 Automation for room service improvements
 On demand housekeeping service
 Dynamic Pricing system
Technology currently being adopted - Alexa for hospitality, Mount kelvin- automation of rooms,
Valpas- Hygiene and bed bug safe, Google nest thermostats

Embrace IOT and make hotels FUTURE

READY.
Few Application of IOT

 Building and home automation

 Manufacturing
 Medical and health care system
 Media
 Environmental monitoring
 Infrastructure Management
 Energy management
 Transportation etc..

Drawbacks and controversies of IOT

 Privacy
 Security
 Autonomy and control
 Social Control
 Political Manipulation
 Design
 Environmental Impact
 Influences human moral decision making

1.2 Automated Valet Services

We are living in a world where technology has become an integral part of all of professional and
personal activities. Fuelled by technology and the immense power of the Internet of Things (IoT),
consumer expectations are growing. In hospitality industry, where customer expectations for a
positive experience run particularly high, technology may just provide the means for overcoming
this challenge. And, deploying solutions that deliver personalized, efficient and unique customer
service has become the key to attracting and retaining guests.
Today, there is a preference for technology over human interaction for mundane tasks. Robotics
is another feature of automation technology that is increasingly being adopted by the hotel
industry. From concierge services to housekeeping services, robots are increasingly being
deployed to perform repetitive tasks with equal efficiency if not better than human employees. An
in-room automation system is equipped with occupancy sensors which can detect when the
guest has entered the room and activate the lights and temperature control. Alternately, lights
and temperature can be controlled by having the guest insert their room key into a reader near
the door. Automation can also help reduce costs and increase revenue in various areas of a
hotel.

Automated Valet Service consist of

a. Automation of Valet/Butler Service

b. Automated Valet/Parking Service

a). A valet, sometimes also known as a 'butler', is employed by a hotel to provide a personalised
and specialist service to guests for the duration of their stay. They add a degree of service, class
and style many people associate with indulgence and opulence.

Automation and control systems have changed the very dynamics of hotel management; enabling
guests enjoy enhanced comfort and convenience. • Right from lighting, HVAC, drapes to audio/video
systems, everything can be controlled from the comfort of the guest’s space. Control lights and set
mood lighting and other lighting scenarios, Automated opening or closing of curtains, Control HVAC
automatically, Control i.e. activate or deactivate room status, View the visitor at the door on TV before
opening the door, Order for room service from the touch pad, Laundry valet pick up on one touch,
Automated ordering of cabs for sightseeing or viewing information about the city Stay connected with
the world outside online via Wi-Fi, Enjoy express check out and save time.
b). A valet greets guests upon their arrival and provides customer service by parking and retrieving
their vehicle.

An automated valet parking (AVP) service offered by a self-driving vehicle driving and parking by
itself after the driver has left the car at a drop-off point probably near the entrance of the building,
and retrieves the vehicle when he/she wants to leave the site.

Fully automated parking systems operate much like robotic valet parking. The driver drives the car
into an APS entry (transfer) area. The driver and all passengers exit the car. The driver uses an
automated terminal nearby for payment and receipt of a ticket.  More sophisticated fully
automated APS will obtain the dimensions of Carson entry in order to place them in the smallest
available parking space. The driver retrieves a car by inserting a ticket or code into an automated
terminal.  The APS lifts the car from its parking space and delivers it to an exit area.

Incorporating automation and smart technology in hospitality industry is a big investment, and it
takes a great deal of coordination and customisation to make it right. More importantly, there is a
delicate balancing act involved: reducing operational costs, addressing hotel needs, and achieving
that ideal guest experience. While many hotels have adopted, these technologies continue to
advance with new ways to use them for improved hotel guest experience.

1.3 Global Reservation System/Global Distribution System

Reservation system is a system that is used to display room availability, make individual and
group reservation, track guest deposits and travel agent commissions and generate report such
as arrival list, reservation forecast and pre-registration cards.

Sources of Reservation

 Global Distribution System

 Central Reservation System
 Intersell Agencies
 Cluster reservation Office
 Property direct reservation system
 Internet distribution system

A global distribution system is a computerised network system owned or operated by a company

that enables transactions between travel industry service providers, mainly airlines, hotels, car
rental companies, and travel agencies. GDS enable the travel agents to access, in real-time,
availability, features and prices of flight tickets, hotel rooms, rental cars, cruises, ferry
reservations, trains and other services.
 The premier global distribution systems are
 Amadeus
 Galileo
 Sabre
 Worldspan.

Hoteliers are constantly seeking ways to increase their revenue and online market exposure. GDS
distribution platforms can open up your hotel to a wide range of potential new bookers who
otherwise would not have access to your hotel's rates, room availability and reservations. Global
Distribution Systems (GDS) such as Amadeus, Sabre, Galileo & Worldspan giving more than half a
million travel agents worldwide instant access to your hotel inventory. Additionally, it distributes
your hotel rates and inventory to millions of bookers through international travel websites such as
Expedia, Travelocity, Orbitz, Priceline, Hotwire, [Link], via the Internet Distribution System
(IDS).

Benefits of GDS
 Increased Access to Travel Agents for More Bookings. ...
 More Efficient Booking Process. ...
 Bundling Options for Other Travel Needs. ...
 Less Expensive than Marketing. ...
 Integration with Property-Management Systems.
1.4 Central Reservation System

A central reservation system controls and maintains reservations for several hotels from one
location and automatically redirects the reservation to the required hotel. A CRS is composed of a
central reservation office and member hotels that share room availability with the central
reservation office.

The central reservation office offers its service via 24 hours toll free telephone numbers. This offices
charge a fee for using their services. Depending upon the agreement a flat fee or a gross profit of the
room division may also be charged.

Central Reservation System Functions

Central Reservation Services are provided by the central reservation office (CRO). The CRO receives
room rate and availability information from participating properties. Non-automated properties
send this information in the form of hard copy and the CRO manually enters the information into the
electronic database. Information from automated properties is typically sent over communication
lines and enters the database directly. With this system, the responsibility and control of central
reservation information lies with managers at the property level. The key to successful central
reservation management is that the property and the central systems must have access to the same
room and rate availability information. The timely delivery of reservation confirmations from a CRS
to individual properties is vital. Many chain systems provide multiple alternatives to ensure that
properties receive all new reservations, modifications, or cancellations. For example, some central
reservations systems relay processed transactions to member properties through on-line interfaces
and telephone call-out techniques.

The goals of a central reservation systems are to improve guest service while enhancing profitability
and operating efficiency. A CRO accomplishes these goals by:
  Providing access to special room rates and promotional packages
 Instantly confirming reservations
 Communicating with major airlines, travel and car rental agencies
 Building extensive guest files

Automatic Room Availability Updating: As room is sold, whether through the CRO, the individual
property, or a remote intersell agency, the inventory of rooms available for sale is automatically
updated at both the property and the CRO. Having current room availability information for each
participating property provides a central reservation system with the ability to automatically close
out room types without obtaining direct property approval. The advantage of an effective CRO is
that the reservations can directly confirm room rates and availability at the time reservations are
made.

Corporate-Wide Marketing: A CRO can function as a powerful marketing resource. The CRO
information system contains important marketing data on individual guests and may provide
individual properties with profiles of groups booked. New central reservation systems technology
allows hotels to vary room rates for each room type on daily basis. Varying conditions of supply and
demand enable the room rates to slide within the ranges prescribed by each individual property.
Guest history data can be extremely helpful in processing reservations. These data also serve as the
basis for determining demographic and geographic patterns of guests staying at participating hotel
properties. By accessing guest history data, central reservation systems are usually able to direct and
support frequent traveler and other marketing-oriented programs. For example, data maintained in
relation to guests in a frequent traveler program generally include:

 Guest Identification Number

 Level of membership in the program
 Home and business address and telephone numbers
 Full name and preferred salutation
 Type of guestroom preferred
 Amenities, such as king-sized bed, non-smoking room, or newspaper preference

Additional Central Reservation Services: In addition to maintaining up-to-date information about

room availability and rates, a comprehensive hotel central reservation system typically maintains
such data as:

 Room types
 Room rates
  Room décor
 Room location
 Promotional packages
 Travel agent discounts
 Alternative booking locations
 Guest recognition programs
 Special amenities

A reservation system may serve as an administrative network for inter-property communications.

The reservation system may also be used to transfer accounting data from individual properties for
processing at company headquarters. In addition, the system may operate as a destination
information centre by serving as a communications channel for local weather, news and reports on
special hotel feature. Central reservation system can report:

 Effectiveness of promotional packages

 Sales forecasting information

Newer systems enable the participating hotels to build in specific rules and
procedures for each of the hotel’s promotional packages or products.

 Yield management (revenue management)

 Centralized commission reporting
 Deposit/refund reporting

Yield management also called revenue management is a set of demand

forecasting techniques used to develop pricing strategies that will maximize room revenue for a
lodging property. Centralized commission reporting details the amount payable to the agencies
booking business with a hotel through the central reservation system. Hotel companies that require
advance deposits to ensure reservation may find the central reservation system helpful in
maintaining accounting records. Records can be kept of deposits made with reservations requests
and of amounts refunded to individuals or groups who cancel reservations within the allotted time
specified by management.
Types of Central Reservation System

1. Affiliate system: - An affiliate reservation system refers to a hotel chain’s central reservation
system (CRS) in which all participating properties is contractually related. Chain hotels link
their operations in order to streamline reservations processing and reduce total systems
costs. Another intended outcome is that one property will attract or promote business to
another property of the same chain.

Advantages of Affiliate reservation system

 Streamlines the process of reservation
 Reduces overall system costs
 Attracts business to another property of the chain.
 Delivers reservations and related information to properties quickly and cost-
effectively
 Destination Information centre
 Connection with a GDS, a system that includes several central reservation offices
connected to each other.
 Maintains statistical information on the volume of calls, talk time, conversion rates,
denial rates and other statistics
 Reservations are often passed from one property of a chain to another property
through a reservation network. (if hotel sold out other hotel is suggested)
 Referrals may also be made to properties whose location might appear more
convenient or suitable to guest needs.

2. NON- Affiliate system:- A non-affiliate reservation system refers to a subscription system

linking independent properties or non –chain properties. A hotel subscribes to the system’s
services and takes responsibility for updating the system with accurate room availability
data. Non-affiliate systems generally provide the same services as affiliate systems, thus
enabling independent hotel operators to gain benefits otherwise available only to chain
operators However, many non-affiliate systems process reservations on the basis of a
declining inventory of both room types. With this method, room types are classified as
either “open” or “close”. Most affiliate systems process reservations on the basis of a
declining inventory of both room types and room rates. This method helps participating
properties to maximize revenue potential and occupancy.
 Additional Content (Not in Syllabus)
Intersell Agencies is a CRS that gives out contracts to handle more than one product line. IA
typically handle reservation services for airline companies, car rentals companies and also hotel
properties in a “one call does it approach”.

Cluster Reservation Office is a single reservation office serving several geographically

connected hotel chains. All the direct calls to each hotel are channelled to the cluster office from
where the reservations are made and again redirected to the concerned hotels.

Property-Direct Reservation System also known as hotel reservation department. It

handles direct requests for accommodations, monitors a communications links with CRS and
intersell agencies and maintains and updates room availability status report. Telephone, Mail,
Property to property, Fax, Email and website.

Internet Distribution System is a collection of more than 2000 internet reservation

system, travel websites, online reservation systems and travel portals which specialize in internet
marketing of travel and related services directly with the customers. Unlike booking through travel
agents or tour operators, consumers with access to WWW have the ability to bookm and travel on
their own. EX of IDS :- Expedia, Hotwire, Travelocity, [Link], [Link] and Priceline

What is CRS and GDS?

The primary function of a GDS is to assist travel agents who are looking for hotels that satisfy certain
criteria. These business-to-business systems are used by organisations to keep abreast of
information about travel arrangements, like hotel room availability. This allows customers to make
bookings on demand. This technology gives travel professionals a common point of entry to access
real-time data about travel reservations.

A central reservation system, or CRS, is designed for the hospitality sector – and in particular for
hotel operations – to manage room availability and rates. These systems relay relevant data across
several distribution channels, such as the GDS, metasearch engines and OTAs (online travel
agencies). Whenever rates are adjusted or bookings are made, the CRS updates your hotel’s rates
and availability on each channel appropriately. Bookings from these third-party channels are
transferred to the CRS immediately, before being logged in the property management system so
rooms can be allocated.

Differences between CRS and GDS in the hotel industry

At first glance, a GDS and CRS appear to have similar functions. Both systems relay your hotel’s
availability and rates across different channels. However, a GDS can link your hotel to business travel
planners and travel agent networks. A CRS can connect you to these partners as well, but also to
customers themselves through your booking engine, metasearch websites and OTAs.

If you tried to list your room details on these channels manually, without a CRS, you would spend
ages updating availability, inputting rates and recording new bookings. Throughout this process,
there's a good chance that errors could occur – and it would be too time-consuming to be viable. A
CRS does this tedious legwork, so revenue managers and reservations staff can work efficiently.