Second Edition Technology Strategies for the Hospitality Industry Peter D. Nyheim The Pennsylvania State University Daniel J. Connolly University of Denver with Lesley Holmer Steven Durham Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
Preface xi Foreword xv Biographies and Acknowledgments xix Chapter 1 If You Think You Don't Need to Know About IT, Think Again! 1 Interview 1 Introduction 3 Welcome to the World of IT! 7 Managing Your Career 8 Decisions, Decisions, Decisions 10 IT Managerial 10 - IT Technical 12 Non-IT Managerial 13 Summary 15 Case Study and Learning Activity 17 Key Terms 19 Chapter Questions 19 Chapter 2 Using Information Technology to Drive Competitive Advantage 20 Interview 20 Introduction 23 Technology Takes Center Stage 24 Bounded by Tradition 25 Enlightenment 26 The Concept of Co-Alignment 28 Achieving Competitive Advantage 30 Resource-Based View of the Firm 32 Examples of Competitive Advantage Derived from IT 33 Sustainability? 35 Summary 37 Case Study and Learning Activity 38 Key Terms 43 Chapter Questions 44 References 44 Chapter 3 Computing Essentials 46 Interview 46 Introduction 48 System 48 -N Hardware 51 Smart Phones and Tablets 53 Software 53
vi Contents Operating Systems and More 54 Summary 56 Case Study and Learning Activity 56 Key Terms 57 Chapter Questions 57 References 57 Chapter 4 Networks 58 Interview 58 Introduction 61 Small Networks 61 Large Networks 64 Transmission Technologies 66 The Internet 66 The World Wide Web 68 Internet Layout 69 Large Wireless Networks 69 Other Network Usage in the Enterprise 70 Forward-Looking Issues in Hospitality 70 Security 71 Summary 72 Case Study and Learning Activity 73 Key Terms 73 Chapter Questions 74 References 74 Chapter 5 E-Commerce 75 Interview 75 Introduction 77 Advertising 77 Auctioning 78 Subscriptions 78 Mobile Commerce 78 E-Commerce Technologies 78 Servers 79 Content Management and Performance 79 Consumer and Business Tracking 79 E-Marketing 80 Search Engines and Strategy 80 Hospitality Web 2.0 81 Security 81 Security of Your Electronic Transactions 81 Securing Your Web Site 82 Message Security 82 Summary 83 Case Study and Learning Activity 83 Key Terms 84 Chapter Questions 84 Reference 85
Contents vii Chapter 6 Restaurant Management Systems 86 Interview 86 Introduction 89 Restaurant Management System (RMS) Components 90 Other POS Functionality 90 The Kitchen Management System 92 Inventory and Menu Management 92 Inventory Levels and Consumption 92 Purchasing 92 Theft 93 Benefits of Inventory and Menu Management 93 Reservations and Table Management 93 Interfaces 94 Other Restaurant Management Systems 95 Storefront Operations 95 System Functions 96 BackOffice 96 Self-Ordering 96 Proprietary Versus Nonproprietary RMS 97 Security and Compliance 98 Summary 98 Case Study and Learning Activity 99 Key Terms 100 Chapter Questions 100 References 100 Chapter 7 Hotel and Resort Technology 101 Interview 101 Introduction 104 The Guest Lifecycle 106 The Property Management System 108 Enable Guests to Make Reservations 111 Enable Guests to Check In/Register When They Arrive and Check Out/Pay When They Leave 111 Enable Staff to Maintain Guest Facilities 111 Account for Guests' Financial Transactions 112 Track Guests' Activities for Use in Future Sales Efforts 112 Interface with Other Systems 113 Four Key Interfaces 114 Real-Time Interface with the GDS/CRS 115 Integration with Activities Management Systems 115
viii Contents Built-in Revenue Management Tools 116 The Enterprise 117 Graphical User Interface 119 Summary 121 Case Study and Learning Activity 122 Key Terms 123 Chapter Questions 123 Reference 123 Chapter 8 Global Distribution Systems and Channels 124 Interview 124 Introduction 128 Importance of GDS 131 Developing a Distribution Channel Strategy 133 Finding and Competing for Electronic Shelf Space 134 Cost Implications 135 Understanding Share of Distribution 138 Maintaining Inventory Control: A Daunting Challenge 139 Inadequate GDS Technology Infrastructure 139 Inventory and Rate Management Issues 140 Commissions and Transaction Fees Erode Profit Margins 140 Rise in Number of Electronic Intermediaries 140 Shift in Balance of Power from Supplier to Customer 141 New Models of Distribution and Pricing 141 Accelerated Rates of Change 142 Relinquished Control of the Customer Relationship 142 Trends in Hotel and Resort GDS 142 Disintermediation and Reintermediation 142 Digital Divide 143 Transparency: A Hope for the Future 144 Bypassi ng Ai rl i ne G DSs 144 Leveraging Technology to Reduce Overhead 144 Mobile Apps (Applications) 145 Shopping Bots 145 Summary 145 Case Study and Learning Activity 146 Key Terms 150 Chapter Questions 150 References 151 Chapter 9 Databases 152 Interview 152 Introduction 154 Database Basics 155 Database Management Systems (DBMSs) 156 Functions of a DBMS 158
Contents ix Data Extraction and Information Gathering 158 Database Servers and Distributed DBMSs 159 Database Usage 159 Analysis 160 Customer Relationship Management (CRM) 160 CRM in Operations 161, CRM in Sales 163 Summary 164 Case Study and Learning Activity 164 Key Terms 166 Chapter Questions 167 References 167 Chapter 10 Competing on Knowledge: How the Power of Information Can Enable Great Things 168 Interview 168 Introduction 171 Defining Business Intelligence 172 Data Versus Information 175 Information as a Valued Asset 177 Information Overload 179 Working Smart 180 Tools that Can Help 181 The Balanced Scorecard 183 The Importance of Infrastructure 186 Summary 187 Case Study and Learning Activity 189 Key Terms 191 Chapter Questions 191 References 192 L Chapter 11 Technology in the Casino Industry 193 Interview 193 Introduction 197 Definitions 197 Electronic Gaming Devices 199 Ticket In, Ticket Out 201 Fills 204 Players'Clubs 205 Radio Frequency Identification 206 Customer Relationship Management 207 Surveillance 207 Software in the Enterprise 210 Summary 213 Case Study and Learning Activity 213 Key Terms 215 Chapter Questions 216 References 216
Contents Chapter 12 Technology for the Meetings and Events Industry 217 Interview 217 Introduction 219 Audio and Visual Equipment 219 Audio 219 Visual 220 Virtual Meetings 220 Desktop and Online Tools 221 High-Speed Internet Access 221 Desktop Applications 221 Portals and Online Searching 222 Social Networking 222 Communication Devices 222 VoIP 222 RFID 222 Audience Response Systems 223 PDA 223 Bluetooth 223 The Future 223 Summary 223 Case Study and Learning Activity 224 Key Terms 224 Chapter Questions 224 References 225 Chapter 13 Strategic Hospitality Technology Investment 226 Interview 226 Introduction 227 ; Reducing Expenses and Increasing Profits 228 Decreased Expenses 228 Increased Gross Profits 229 System Examples 230 Cash Flow and Costs 230 System Selection Process 231 Implementation 238 Summary 240 Case Study and Learning Activity 240 Key Terms 243 Chapter Questions 243 References 243 Appendix 244 Index 255