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TP 103 APPLIED BUSINESS TOOLS AND TECHNOLOGY IN TOURISM CHAPTER 1: MANAGEMENT INFORMATION SYSTEM WHAT IS A BUSINESS TOOL? -Considered as any asset that helps or assists the organization to achieve its stated aims or objectives. -Business management...

TP 103 APPLIED BUSINESS TOOLS AND TECHNOLOGY IN TOURISM CHAPTER 1: MANAGEMENT INFORMATION SYSTEM WHAT IS A BUSINESS TOOL? -Considered as any asset that helps or assists the organization to achieve its stated aims or objectives. -Business management tools are all the systems, applications, controls, calculating solutions, methodologies, etc. used by organization to be able to cope up with changing markets, ensure a competitive position in them and improve business performance. -Various types of tools may be used in business varying in size, complexity, danger, and importance to the business operation. A business needs to develop criteria tailored to the best interest of their organization. Its proper use, maintenance and management to ensure effectiveness and efficiency. Participation: Students will give examples of business tools USING BUSINESS TOOLS TO STAY COMPETITIVE: Define Objective: Clear definition of your priorities to properly decide what business resources Assess situations: Do a trial & error procedure to figure out what works best and what does not, and be knowledgeable and trained of operating procedures. Create a Roadmap: Compile a practical timeline showing the short- and long-term priorities. It will serve as a guide to follow. Update: Don’t settle with the old tools that you have, research, acquire and improve. Employ Additional Support: Get the right people to do the job. Select Right Tools: Take time to try and do experiments on accessible business tools. Management Information System An Information System consists all the ways that people communicate with others. It is composed of information channels which could be formal or informal, personal or impersonal, and public or private. Different people, businesses, and communities use information channels in different ways and combinations. Tourism Information System is a specific type of information system. It consists of all information channels used in a business or community to promote itself as a tourism attraction. These information channels include commercials, ads, brochures, repeat visitors. employees, friends, and relatives. Information Systems to transportation, travel, hospitality and entertainment will bring many benefits and changes to the tourism industry. In particular, the Internet, is playing an increasingly significant role in travel and tourism. There are three characteristics that all effective tourism information systems have: 1) Each channel the system has its own function. Travelers use different channels to get different kinds of information. An example is deciding where to go on vacation. A person may consult a friend or family member for that decision, but in deciding what to do when he/she gets there, the person may talk with a repeat visitor or employee at the destination site. 2) All the information channels used in the system relate to each other. A tourism information system is like a novel because it has many different parts tied together by the theme. Even though a system's channels serve different functions in providing information, they are all tied together by the projected message. TP 103 APPLIED BUSINESS TOOLS AND TECHNOLOGY IN TOURISM 3) All channels used in the system are interdependent. A tourism information system functions like a puzzle. The different pieces of the system, the channels, are used to communicate with tourists. If any of the puzzle pieces are missing, the puzzle's picture is incomplete. If one or more of the channels used is not dispersing information effectively, or if the information dispersed does not relate to the rest of the system, then the system will not effectively communicate its whole message. If one or more of these characteristics are missing from a tourism information system, then its message will be inconsistent and ineffective. PHONETIC ALPHABET MILITARY TIME COMPUTER/CENTRAL RESERVATION SYSTEM VS. GLOBAL DISTRIBUTION SYSTEM Computer/Central Reservation System is a software platform that allows hotels to manage and streamline their bookings in a centralized manner. It serves as the heart of a hotel's reservation operations, providing a single point of control for managing availability, rates, and inventory across multiple distribution channels. Key Features of Central Reservation Systems: 1. Inventory Management: A CRS enables hotels to manage and control their room inventory, including room types, rates, availability, and restrictions. This centralized approach ensures consistency and accuracy across all distribution channels. 2. Real-Time Updates: CRS provides real-time updates on room availability, rates, and reservations. This ensures that potential guests receive accurate information and minimizes the risk of overbooking or double bookings. 3. Rate Management: With a CRS, hotels can set and manage different rate plans, promotions, and discounts. This flexibility allows hotels to adjust pricing strategies based on demand, seasons, and specific market segments. 4. Channel Management: CRS integrates with various online distribution channels, including the hotel's website, online travel agencies (OTAs), global distribution systems (GDS), and metasearch engines. This integration ensures consistent and up-to-date information across all platforms. Global Distribution Systems (GDS): Global Distribution Systems are platforms that connect hotels, travel agencies, and other travel providers to a vast network of global travel agents. GDS acts as a central hub for travel agents to access and book hotel rooms, flights, car rentals, and other travel services. The GDS communicates live product, price and availability data to travel agents and online booking engines for automated transactions. A Global Distribution System is often used to tap into the corporate travel market because it has the ability to present hotels, flights, and car rentals in one simple interface providing convenience for users. Global distribution systems link hotels inventory to business travel agents and networks, whereas a central reservation system is operated by the original vendor e.g. hotel. Think of a GDS acting as a middleman between a travel agent and a hotel’s central reservation system. Key Features of Global Distribution Systems: 1. Wide Market Reach: GDS provides hotels with access to a vast network of travel agents worldwide. This significantly expands the hotel's market reach and exposure to potential guests, including corporate travelers and travel agencies specializing in specific regions or industries. 2. Content Distribution: GDS allows hotels to distribute detailed information about their property, including room types, rates, amenities, and images. This content distribution ensures that travel agents have comprehensive and accurate information to assist their clients in making informed booking decisions. 3. Rate Parity: GDS typically enforces rate parity, ensuring that the hotel's rates are consistent across all distribution channels. This eliminates rate discrepancies and maintains a fair and competitive environment for travel agents and guests. 4. Streamlined Booking Process: GDS simplifies the booking process for travel agents by providing a centralized platform to search, compare, and book hotel rooms and other travel services. This convenience enhances the efficiency of travel agents and increases the likelihood of bookings for participating hotels. The key differences of CRS and GDS: CRS primarily focuses on centralizing inventory management, rate management, and distribution across the hotel's own channels. On the other hand, GDS connects hotels to a global network of travel agents, facilitating bookings through the travel agency channel. In practice, many hotels integrate CRS with GDS to leverage the benefits of both systems. This integration allows hotels to manage inventory and rates centrally while simultaneously distributing their offerings to a vast network of travel agents via GDS. TP 103 APPLIED BUSINESS TOOLS AND TECHNOLOGY IN TOURISM Central Reservation Systems and Global Distribution Systems have revolutionized the way hotels manage their reservations, connect with distribution channels, and maximize occupancy rates. CRS streamlines inventory and rate management, ensuring consistency across all channels. GDS connects hotels to a global network of travel agents, expanding their market reach and simplifying the booking process for travel agents. The integration of these systems empowers hotels to efficiently manage their reservations and connect with a wider audience, ultimately driving revenue and guest satisfaction in the competitive hospitality industry. Despite the growth of third party online travel agencies (OTAs) like Booking.com and Expedia, GDS systems remain the number one way to promote your hotel to the corporate travel market globally and attract travelers to your hotel. Online Travel Agencies are consumer-facing platforms that aggregate hotel rooms, flights, and other travel services for direct booking by travellers. They are essentially digital marketplaces where travellers can compare and book a wide range of services from various providers. OTAs often have a more extensive marketing reach, targeting leisure travellers through various channels like search engines, social media, and email campaigns. These are under Internet Distribution System (IDS) - It is a collection of internet reservation systems, travel websites and portals that concentrate on online marketing of travel, hotel and related services directly to users. Originally developed to assist airlines in managing their ticket transactions, GDSs have expanded to encompass the hospitality industry, offering hotels a broader reach to corporate travelers and travel agencies. The default GDS process that connects vendors inventory through to service providers for a booking, can be simplified in a few simple steps: 1. Hotels or airlines sign up and link their own inventory to a global distribution system 2. Once connected, customers are able to book rooms through all channels and portals associated with the GDS to purchase from a hotel e.g. traditional travel agents 3. Whoever sells your room earns a standard commission (only once a transaction is completed) 4. To avoid overbooking, each service provider receives real-time updated inventory from the hospitality company 5. Your guest pays you, then you pay your agent The main ‘big three’ legacy GDS systems: Amadeus Travelport (that owns systems Galileo, Worldspan and Apollo) Sabre Sabre Global Distribution System Sabre is a leading technology and data-driven solutions provider helping airlines, hotels and travel agencies grow their businesses and transform the traveller experience on a global level. This network is used by a range of travel suppliers, including approximately 400 airlines, 200,000 hotels, 200 tour operators, 50 rail carriers, 40 car rental outlets and 17 cruise lines. Sabre is seen as a pioneer for online travel agencies, corporate booking tools, revenue management, as well as web and mobile itinerary tools, to name a few. Due to its strong presence within the North American market, Sabre has a large reach to travel agencies, customers and is very attractive to hotel businesses. It has the ability to allocate hotel inventories to travel agents on a global level, and also offers a number of hospitality technology solutions. Travelport Global Distribution System Travelport has the smallest market share out of the ‘big three’ GDS companies and comprises the Apollo, Worldspan and Galileo global distribution systems. While the company is UK based, the main market is considered the US where its child networks can be found. The network is less reliant on its home market compared to other GDS systems and is beneficial for hotel owners to distribute their services to travel agencies worldwide. Galileo Global Distribution System Due to the high market penetration of the Sabre and Apollo systems, owned by American Airlines and United Airlines, respectively, Worldspan and Galileo were created by European airline groups in an attempt to gain market share in the computer reservation system market. Galileo GDS gives hotel owners the ability to distribute hotel rooms and availability to travel agencies globally, offering 24 hour access to inventories and information. Worldspan Global Distribution System Worldspan is part of the Travelport GDS platform, and is a technology leader in web-based travel eCommerce, offering solutions for all facets of travel business online. As a leading GDS, Worldspan provides travel distribution, technologies and services for thousands of travel companies worldwide, including travel agencies, corporations, suppliers and websites. Worldspan transforms global travel distribution and transaction processing with industry-first fares, pricing, shopping and booking technologies, and a portfolio of interactive shopping tools that enable travel companies to reduce costs, increase productivity and build revenues. TP 103 APPLIED BUSINESS TOOLS AND TECHNOLOGY IN TOURISM Apollo Global Distribution System Apollo traces its roots back to 1971 when United Airlines created its first computerised central reservation system. As a leading GDS, Apollo provides global travel distribution, technologies and services for thousands of travel companies, including travel agencies, supplies and corporations, as well as travel web sites. The Apollo reservation system was used by United Airlines until 2012, when it switched to SHARES, a system used by its former Continental Airlines subsidiary. Apollo is still used by Galileo International (now part of Travelport GDS) travel agency with key markets being the United States, Canada, Mexico, and Japan. Other GDS are Abacus, Pegasus Amadeus Global Distribution System Amadeus has been operating for over 30 years, building critical solutions to help airlines, hotels, railways, travel agencies, tour operators and more to run their business and improve the travel experience. The company operates in over 190 markets, with a particularly strong presence in Europe due to the company itself and database being hosted in European countries. Amadeus has the biggest global market share footprint of any of the GDSs, with a potential reach to millions of guests. Many bookings through Amadeus are specific to airlines however hotel owners can still benefit from this major GDS.