HPC 7 & TPC 6 Module

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CHAPTER THE TOURISM AND HOSPITALITY INDUSTRY

1
At the end of this chapter, students will be able to:
 Discuss what composes the tourism and hospitality industry
 Provide examples of the tourism and hospitality industry establishments
INTRODUCTION
The tourism and hospitality industry helps a country in terms of economic

stability. People of varying skill are hired in travel agencies, hotels,
restaurants, airline companies, gaming companies, catering establishments,
and the like, thus, producing a large number of employed individuals who
provide a great and rewarding experience in the hospitality world. These
industries continue to grow and present new trends that a guest could surely
benefit from regardless of how much it may cost them.
The Travel Industry
History shows that human has an innate bent towards travel. Earliest
stage of human evolution has shown a desire of travelling spurred by their
needs for survival. Travel on foot just to get to another place was the most
common mode during that time. During the introduction of some modes of
transportation, the personnel were not that really trained, and companies will
not even look for someone who is educated, with height accepted in their
qualifications as long as they could handle the work given to them. The
introduction of different modes of
transportation in three different
ways such as air (by plane), sea (by
ship and vessels), and land (bus,
car rentals, trains) paved the way
for travel not mainly for survival but
also for business, leisure, religion,
or health. With varying
requirements for travelers, services
offered vary as well. Information from services offered to how they satisfy the
clients will serve as a basis for the industry as to how it is doing currently, and
how it should do in the future.
Course Code: HPC 7 & TPC 6

Descriptive Title: APPLIED BUSINESS TOOLS AND
TECHNOLOGIES Instructor: CLARIZA G. VALDEZ, MIT
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The Food and Beverage Industry
This is an intrinsic part of travel in which at the moment are facilities that are
scattered like mushrooms in all parts of the globe. Restaurants of various
types and specialties can be found anywhere. In the Philippines, various food
establishments offer different specialties, local or international.
F&B ESTABLISHMENT SPECIALTY
Jollibee Chicken/Hamburger
McDonald’s Hamburgers
KFC Chicken
Dairy Queen Sweet
Pizza Hut Pizza
Dunkin Donuts Doughnuts
Burger King Hamburgers
Starbucks Coffee
Greenwich Pizza
With the services offered by different food establishments, systems are also
needed to ensure that these are still doing well in accordance with the requirements
of the diners. Those operating as a network or chain needs information management
system to ensure that necessary information for business decision making are
collated in such a way that it will be used for forecasting, planning, and other uses
that will make it beneficial to the organization.
The Lodging Facilities

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These may include hotels, motels, apartels, condotels, inns and other
establishments offering both food and bed at a certain cost. These lodging facilities
grew with travel, as travelers needed places for shelter and food in times they are
travelling for whatever purpose they have.
The following are some of the known lodging facilities in the Philippines:
 Manila Hotel
 Hyatt Hotel and Casino
 Crown Regency Hotels
 Marriot Hotel
 Shangri-La Hotels
 Marco Polo Hotel
 Diamond Hotel
 Dusit Thani
 Bayview Park Hotel
In hotels, especially those chains, information management is very significant.

With various departments and ancillary sections, the need to manage the data
needed to operate it effectively and efficiently should be considered. From managing
employees, services, subsidiaries, suppliers, and the rest as significant management
team, using hard copies of records may not be practical. Communication between
various departments may not be possible with just calling them may not be enough.
This is also important when managing the financial status of establishments.
The Resorts

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These are places which attract visitors during holidays or vacation, for
relaxation and recreation and are operated by a single company or by
business partners. Some known resorts in the country are the following:
 Boracay Beach Resort

 8 Waves Water Park and Hotel, Bulacan
 Panglao Island Bohol
 Mactan Island Cebu
 Puerto Galera Mindoro
 Dakak Beach Resort
 Pagudpud Ilocos Norte
 Siargao Island
 El Nido Palawan
 Pearl Farm, Davao
Resorts are not

exempted in
managing
information
systems
especially that
most operates in
an island to offer
the best
relaxation
package that an
ordinary hotel or
other lodging
establishments cannot provide. Use of computer based information system
is very important to monitor the viability of current services offered, the
feasibility of future offerings, the capacity to provide other services of the
establishment based on the requirement of the market, as well as the
standing of the organization in terms of competition.
The Travel Agency and Tour Operations
Travel and tour operations are responsible in dealing with the travelers for
their travel needs. The services they offer varies depending on the type of
market they are catering to.
Some of the services offered are the following:
 Reservation/Ticketing
 Packaged Tour

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 Travel Documentation
As travel agencies and tour

operations need to monitor
the current status of the
tourism industry, it is
important for them to collect
data, process it, and then
become information as an
output so operators can
make decisions to cope up
with trends in the industry.
In fact, ticketing nowadays
is no longer offered by just
going to a travel agency and
talk to travel consultants about a package that would best fit a client. Online
reservation has evolved and continues to provide convenience to travelers.
INTENDED LEARNING ACTIVITY – CHAPTER 1

Course Code: ___________________________
NAME: HPC 7 & TPC 6 DATE: __________
COURSE AND YEAR: ______________ SCORE: ________
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ASSIGNMENT – CHAPTER 1
NAME: ___________________________ DATE: __________
COURSE ANDTECHNOLOGIES
YEAR: ______________ SCORE:
Instructor:________
CLARIZA G. VALDEZ, MIT
Instructions: Visit any website of establishments that falls under the tourism and hospitality
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CHAPTER USE OF COMPUTER-BASED INFORMATION SYSTEM

2
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 Define computer-based information system
 Discuss what management of information is
 Enumerate activities in information management and discuss each
 Enumerated and discuss organization’s main resources
 Explain the importance of using information management system
INTRODUCTION
One of the main resources available for managers in tourism and hospitality
industry is information. Within an organization’s environment, computer
information is used not only by managers but also by the non-managers.
These people are found anywhere in an organization’s circle of influence.
Managers who perform functions and play roles necessary for the growth of
the organization need to be proactive in terms of information management.
Skills in communication and problem solving are very important. Not only
these but, managers should also be computer literate, and most importantly
information literate.
MANAGEMENT OF INFORMATION
If you are a manager of a hotel’s newsstand in the lobby, managing it would

be easy. You can manage it merely by observing the tangible assets which in
this case are the newspapers or other merchandise, the POS or point of sale
(cash register), the area where the newsstand is located, the person dealing
with the guest concern or order and the guest flow. However, in the most
complex part of hotel’s operation, observation will not be a practical step to
manage. There are hundreds of hotel employees, different types of services
and all other aspects to manage, hence it is difficult to just observe. In this
case, managers need more information for decision making and problem
solving.
Managers of hotels will need information or reports from various departments

to show the physical condition of the organization. They will go on a per
section basis to know how each department is doing. They will rely more
importantly to the reports of each department of the hotel as these are the
most valuable resources. Information that is not useful is replaced by those
that are current and important so decision or problem solving will be accurate.
Information Management can be summarized below:

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 Collecting information
 Processing and using it effectively for decision making
 Disposing it at the right time
ORGANIZATION’S MAIN RESOURCES
Hotels, resorts, restaurants and other establishments have main resources by

which managers need to manage in order for them to be used in the most
effective way. These are the following:
 The employees who frontline the services or products offered

 The materials used to render service or produce products
 The machines used in the operation including facilities and energy
 The finances or money used to operate including facilities and energy
 The information from various sources including data
The first four as enumerated pertains to the main resources a manager could
touch as they are tangible. They exist physically so manager can see and
judge them by looking at them. Decisions as to replacing a machine, an
employee, or adding finances to a project may be done immediately as they
can see them. However, before a decision is made, managers would look into
the information from the reports given by the different departments. The fifth
resource is very important not on its tangible from but on what it represents. It
is through this resource that managers can make decisions and manage the
other resources.
NEED FOR INFORMATION MANAGEMENT
The need for information management is not only for the tourism and
hospitality industry, but for all types of businesses. Managers, especially
those at the top management or executive levels pay attention to information
management because of these two reasons found in the following table.
COMPLEXITY OF BUSINESS USEFULNESS OF COMPUTER

PROCESSES CAPABILITIES
Whether you are operating a small Computers continue to make a
or large business, its processes or business’ life easier. The fastest way
activities will never stay as it is. to keep track of business records is
Increasing complexity is possible through this resource. Networked
especially nowadays. For you to computers make the operation’s
compete in the industry, it is activities more accessible. Without
important that you deal with its computers, processes will surely
complexity. become a disaster as speed it offers
cannot be given by human
resources.

INTENDED LEARNING
ACTIVITY – CHAPTER 2
NAME: ___________________________ DATE: __________
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ASSIGNMENT
NAME: ___________________________
DATE: __________
COURSE AND YEAR: ______________
TECHNOLOGIES SCORE:
Instructor: ________
CLARIZA G. VALDEZ, MIT
Instructions: Interview any employee or manager of a hospitality or tourism

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CHAPTER MANAGEMENT INFORMATION SYSTEM

3
 Define MIS
 Discuss the history and evolution of MIS
 Explain MIS in small businesses
INTRODUCTION
The tourism and hospitality industry caters to various types of guests.

Different requirements form different markets need to be addressed. As the
number of guests varies from time to time and the type of information and
service they need are beyond expectations, this industry needs to address
these through careful planning and implementation of practices.
WHAT IS MIS?
A Management Information System or MIS refer to the following:
 A study of people, technology, organizations and the relationships

between them.
 It is a people-oriented field with an emphasis on service through
technology.
 It may also represent an approach a company use to collate
information necessary to make business decisions.
 It can also be a computerized database of financial information
organized and programmed so it will produce reports regularly about
the operations for every level of management in an organization. It is
possible to obtain special reports from the system easily if
programmed in accordance with the needs of the organization.
As a computer-based system, it makes information available to users, who, in

some ways or another, have similar needs. Typically, users of information are
the organizations or a subsidiary or a subunit. The information that may be
obtained from computer-based system describes the organization or any one
of its major systems. The description may be in terms of what has happened
in the past, what is currently happening and what is to happen in the near
future.
The management uses MIS at all levels of operation to collect, process and
store data and give them feedback about their own performance. In the form

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of information, the management then aggregates and disseminates this data
needed to carry out daily operations of business.
People who are in business, from someone who pays the bills to the person
who make employment decisions, actually use information systems.
Example: A car dealership may use a computer database to keep track of

which product sells best. A retail store on the other hand, can use a computer-
based information system to sell products online. As a matter of fact, many if
not all business concentrates on the alignment of MIS with business goals
and objectives in order to achieve a competitive advantage over other
businesses in the other industry. Tourism and hospitality is not an exemption
to that.
Information that is made available to users of an MIS may be in the form of

the following:
 Cyclic or periodic reports

 Special reports
 Results or outputs of mathematical simulations
ORIGIN AND EVOLUTION OF MIS
o Like any other processes, MIS represents the electronic automation of

several different kinds of business processes such as counting,
tallying, record keeping and accounting techniques under financial
aspect of the operations of which was the ledger, on which the
business owner kept track of his or her business.
o Automation emerged in the 1880s

in the form of tabulating cards.
These cards can be sorted and
counted which were called as
punch-cards. Elements of
information are captured by these
cards as keyed in punch card
machines. It will then be
processed by other machines in
which come could print results of
tallies. Each of the punch cards was the equivalent of a database
record. These were used to keep time records and to record weight at
scales.

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o It was after World War 2
when the first computers
emerged and punch-card
systems were used both as
their front end and as their
output. Use of punch-card
system did not entirely
disappear until the 1970
because what happened
was, they were ultimately
replaced by magnetic storage
media like tape and disks.
The MIS developed to be the most crucial accounting functions now
became computerized.
o Innovation waves broaden the fundamental virtues of coherent
information systems in all corporate functions and to all sizes of
businesses in the 1970s to 1990s. Within organizations, major
functional areas developed their own MIS capabilities. These were
often not yet connected in one system. These were engineering,
manufacturing and inventory systems that were developed side to side
sometimes running on specialized hardware.
o In 70s, personal computers appeared and spread widely in the 80s
which became famous. In fact, some of these were used as free
standing “seeds” of the MIS systems. As “seeds”, it served the sales,
marketing and personnel systems, with summarized data from them
and is transferred in the main frame
o It was in 1980s that networked PCs appeared. It developed into
powerful systems in the 1990s in many organizations displacing
midsized and small computers. These networked PCs were equipped
with powerful database engines which were in turn organized for MIS
purposes. During 1990s, World Wide Web came of age
simultaneously. This morphed into the Internet with a visual
interference which then connected all sorts of systems to one another.
MIS IN SMALL BUSINESS
With the definitions of MIS discussed, we can say that a small business
running even a single computer appropriately equipped and connected is
operating a management information system
Examples:
 A medical practice with a single doctor running software for functions

like billing customers scheduling appointments, and is connected by

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the internet to a network of insurance companies, cross-linked to
accounting software capable of cutting checks is actually using MIS.
 A small manufacturer’s rep organization with three principals on the
road and an administrative manager at the home office has actually an
MIS system. That system becomes the link to inventory systems, it
handles accounting, and it also serves as the base of communications
with each representative carrying a laptop.
 A small hotel serving various clients with different services offered is as
well using an MIS to keep track of business operations.
In effect, all businesses engaged in consulting, marketing, sales, research,

communications as well as other service industries including hotels, resorts, and
restaurants have large computer networks on which they deploy substantial
databases. This is just an indication that MIS has come of age and has become an
integral part of small businesses. It is therefore more valuable for large businesses to
utilize MIS.

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NAME: ___________________________ DATE: __________
Instructions: Elaborate on the following based on what you have learned from this chapter.
Give examples to support your ideas. (30 points)
1. Definition of MIS
2. Origin and evolution of MIS
3. Application of MIS in the hospitality sector

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ASSIGNMENT
NAME: ___________________________ DATE: __________
Instructions: Create a one-page essay focusing on the topic “Management Information System
in the Modern World”. Discuss the importance and benefits of MIS in the corporate world most
especially in the tourism industry. (50 points)

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CHAPTER MIS IN FOCUS

4
 Explain the components of an MIS
 Enumerate and explain the impact of an MIS
 Explain the features of an MIS
 Enumerate limitations of an MIS
INTRODUCTION
The use of MIS in any business operation is very significant. As discussed in

the previous chapter, it helps managers in coming up with decisions. This
chapter will focus on components, uses, and other aspects of a management
information system that a tourism and hospitality management professional
needs to know and understand.
COMPONENTS OF AN MIS
Management Information System is composed of five basic components in

order to assist management in decision making. These are the following:
Component Description
Hardware These are the input and output devices of an MIS. It includes
computers or desktops, laptops, video monitors, magnetic
disk drives, optical scanners, printers and others necessary
for the system to function accordingly.
Software These include those programs and applications that convert
data into machine readable language. Examples are operating
system programs, payroll programs, word processing
programs and spreadsheet programs.
Data This refers to raw details to produce desired information or
facts and figures entered into computer for processing.
Examples of this are customer records, inventory databases,
product descriptions and employee files.
Procedures These are set of guidelines to be followed in order to use
effectively the other components.
People These are the users which may include computer experts,
managers, analysts, programmers, database managers and
many other computer professionals
SIGNIFICANCE OF MIS

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Managers will not waste time if MIS is not of great importance to any
organization. In the tourism and hospitality industry, use of MIS is important
for its continuous improvements. Below outlines the uses of an MIS:
 Supports strategy decisions of an organization

 Improves the accuracy and integrity of financial statements and
performance reports
 Brings together massive amounts of data needed by top level
management
 Provides a central location to store business data
 Provides a common language for managers to understand processed
information
 Increase sales and makes the business grow better
 Provides a company a greater market share
 Improves people’s performance
 Anticipates future problems or trends
 Helps in controlling various operations of an organization
Undeniably, MIS is an important factor for an organization’s future. There are

a lot of impacts an MIS creates to a company using it. Those mentioned
above are just some. Depending on how this is implemented in an
organization, MIS plays a vital role in its survival in this challenging world of
business.
FEATURES OF AN MIS
With the uses presented in the above topic, MIS has features which translate
said impacts to an organization. Particularly critical to business that work in
conjunction with other businesses, MIS let them share information with or
transfer information to each other especially chain hotels, chain restaurants,
chain of resorts and the like.
The following are some features of an MIS that tourism and hospitality
professionals need to understand:
1. Capable to handle Voluminous Data

- storing data for organizations would be difficult without a system.
Considering the complexity of a business operation, hotel for instance, data
storage will be a challenge. MIS stores input from users, like sales of the day,
then relates the information to other information (previous sales) throughout

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the system and then subsequently puts that information into graphs or charts
so users can understand and compare data.
2. Generates reports for management use
- users of MIS determine the types of reports they will need, using specific
templates available in the system.
- The reports will then be analyzed by the managers for decision making to
solve a problem, update product lines, add services offered or for any other
purposes.
3. Convenient to be accessed and can be integrated with other systems
- users of MIS can access it easily as it functions with open access which
means that the primary MIS can be connected to or integrated with the
organization.
4. Flexible
- business organizations can purchase a small version of system and then,
overtime, add to it as finances allow them.
- Flexibility includes adding increased data capabilities, as well as system
features, to the initial system as business grows.
5. Facilitate quick search and retrieval of information
- MIS allows for quick search and retrieval of information whenever needed by
the user
6. Management-oriented
- MIS is designed from the top to work downwards. This does not mean that
only top level managers are allowed to use it, but other can also access it.
LIMITATIONS OF MIS
Though MIS is useful to an organization, it has also limitations. Some of these

are:
 Its output is dependent to the input entered and its process
 It is not too effective when information is not shared with others in an
organization
 It cannot substitute judgements of managers in decision making
 It is not that valuable for making non-programmed decisions

NAME: ___________________________ DATE: __________

Instructions: Answer
Descriptive Title: the
APPLIED following
BUSINESS questions
TOOLS AND substantially.
1. Give three significance of MIS and explain each (15 points each)
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NAME: ___________________________ DATE: __________
Instructions: Research on how MIS is used by small and big businesses. Give a detailed
Course Code:of
comparison HPC 7 & you
what TPC 6have researched. Write your answers on the space below. (50 points)
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CHAPTER MIS APPLICATIONS IN TRAVEL AND TOURISM INDUSTRY

5

 Explain what composes the travel industry
 Enumerate and explain the advantages of Amadeus MIS
 Differentiate CRS from GDS
 Explain the functionalities of CRS and GDS
INTRODUCTION
The use of MIS in travel and tourism industry is highly significant. As this
industry is big and is challenging, serving to all types of passengers and
travelers will be difficult to manage without the right system that will help the
organization to provide the convenience they deserve. Airline’s success, for
instance, depends largely on its ability to intelligently manage sales,
marketing and other business processes as well as its customer database.
THE TRAVEL INDUSTRY
The travel industry is composed of those establishments responsible for

transporting people from one place to another based on their desired
destination such as the following:
 Airline Companies
 Shipping Lines
 Bus Lines
 Travel Agencies / Tour Operators
Below are some of the airlines operating in the Philippines:
 Philippine Airlines
 Cebu Pacific
 AirAsia
 Skyjet
 Tigerair Philippines
Below are the different expectations from the clients of the travel industry:
 Schedules of flight
 Prices of Tickets
 Comfort of seats

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 Quality of Meals
 Treatment by the crew members and ground staff
 Airport facilities
 Assistance in travel arrangements
 Assistance in arranging hotel accommodation
 Assisting in customer’s problems immediately in the airport front office
Below show figures of some typical reservation process for an airline service:
A. Customer with the Travel Agency
Customer to Travel agency to

Passenger to
look for book the
wait for his
assistance of a desired
travel schedule
travel agency itinerary
B. Customer with Online Booking
Customer to Customer to fill Passenger to

visit websites of out flight details print e-ticket
airline and pay through and wait for
companies credit card travel schedule
These are just some of the current setups when booking a flight at any of the
available airlines in the country. The second provides convenience to the
customers as they will no longer need to wait and fall in line just to avail a
specific airline service. More and more systems are being implemented by
different companies to be able to provide necessary services to their clients to
maximize their return of investment. For airlines and travel agencies using the
Amadeus Global Distribution System, this technology also offers convenience.
AMADEUS MANAGEMENT INFORMATION SYSTEM
For managers needing relevant information to make informed decisions about the
business, this is a powerful business intelligence tool for them not only the
managers but also those corporate customers and everyday users from which
they will take from their Amadeus Agency Manager mid-office. This pertains to a
repository of operational data which was gathered from the Agency Manager and
allows the users to present or analyze them to make business decisions. With the

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MIS interface, travel agencies can offer their corporate customers an access to
their personal data which then provides them with instantly updateable reports.
With MIS, it provides the following advantages:
1. On Customer Service and Flexibility
- provides better customer service as it allows the users to have a list of standard
reports or create their own standard
- reports from that system are built fast which can be sent via email in PDF format
- it also allows corporate customers to access their data if they need it for
reporting purposes
2. On Data Security
- it offers high security of data as it is hosted in a secure environment at the

Amadeus Data Center
3. On Accessibility
- it is accessible via the Internet which then allows easy deployment of the
solution not only to the internal users but to the corporate customers as well.
- more importantly, it is available to everybody anytime, anywhere to retrieve the
information and reports they need
CENTRAL RESERVATION SYSTEM VS GLOBAL DISTRIBUTION SYSTEM
In this world of travel, addressing the needs of various clients is challenging.

Airline companies need to store a lot of information such as routes,
schedules, fares and reservations where these clients depend from.
1. Central Reservation System

- CRS is a computer-based reservation system in the travel and
tourism industry used to store and retrieve information and eventually conduct
transactions related to travel.
- it was originally designed and used by airlines but was then extended
to travel agents and hotels for more convenience in transacting with various
guests and travelers. It provides information about the following:
 Flight Schedule
- This function is important for the clients to know the days and times
for flights operated by a particular airline.
 Availability
- This separates an airline’s service class as available for passengers
whether economy, business or first class
 Fare Quotes

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- Pertains to the consolidated fare for a particular itinerary that a
passenger has chosen which is based on flight, day, time, service
class or type and passenger type.
 Reservation
- Information such as seat bookings or the confirmed service a
particular passenger has availed
 Ticketing
- Pertains to the capability of the system to generate and store tickets
for passengers
 Refunds or Cancellations
- The system allows for refund should the confirmed passenger
decides to cancel a booking due to some personal reasons
provided it conforms to an airline’s cancellation and refund policy.
A typical CRS function as shown in the following representation:
TRAVEL AGENT
Mainframe Mainframe Mainframe

Connectivity Connectivity Connectivity
Airline CRS Airline CRS Airline CRS
Based on the illustration, the travel agent to provide services to

prospective passengers need to have individual connections to airline
companies. For instance, a travel agent to book for a customer for ABC
Airlines need to have connection to airline’s CRS, and if another customer
needs to book to CDE Airlines, the agents to connect to that airline’s CRS.
The problem here is when two or more airlines are using different mainframe
systems, the travel agent needs to use both systems hence needs to be
trained on different mainframe clients. The CRS also is unable to perform
direct searches across airline systems, thus, difficult for the travel agent.
Lastly, inventory will be tedious because inventory searches and reservations
had to be done through individual airline CRSs separately.

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2. Global Distribution System

- a Global Distribution System or commonly known as GDS is
another computer-based reservation system in the travel and
tourism industry.
- It is a network of providers bringing the products and services
together which are geographically spread across the world to the
doorstep of the consumer anywhere in the world
- Its system architecture are largely based on a mainframe TPF or
Transaction Processing Facility
Below are the four major global distribution systems:
 SABRE – this was created by American Airlines

 Amadeus – this was created through the efforts of four
airlines – Air France, Iberia, Lufthansa, and SAS
 Galileo – this was created by collaborative efforts of a group
of European Airlines
 Worldspan – this was formed by Delta Airlines, Northwest
Airlines and Trans World Airlines in early 1990
The GDS offers the following advantages:
 It provides simplified access to users

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- This function is important for the users as access to possibly
all airlines in the world is simplified via a single interface
 It connects multiple airlines
- The system is able to connect to various airlines via modern
PC-based clients or even through legacy mainframe clients
 It needs less maintenance
- The system need not to be maintained most of the time thus
offers less up-keep overhead
 It offers flexibility
- The system is able to combine airline inventories without
being tedious to the part of a travel agent.

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NAME: ___________________________ DATE: __________
Instructions: Visit the websites of the mentioned four main GDS and observe their features and
functions. Discuss below the similarities and differences among the four GDS.
GDS FEATURES/FUNCTION SIMILARITIES/DIFFERENCES

1. SABRE
2. Amadeus
3. Galileo
4. Worldspan

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NAME: ___________________________ DATE: __________
Instructions: Research on two mobile applications used by travelers for booking their travels,
accommodation and tours. Browse on the mobile applications and observe their features. Read
also on the reviews given by the users. Create as an output an essay comparing the two mobile
applications’ features and uses. Use the space provided below.

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CHAPTER MIS APPLICATIONS IN THE F&B SERVICE INDUSTRY

6
 Explain how F&B industry operates
 Discuss the use of MIS in the F&B service industry
 Explain how POS works in the restaurant business
INTRODUCTION
Service industry refers to those establishment rendering services to their
clients such as airline, hotels, restaurants and others. As the previous chapter
specifically deals with the use of MIS in travel and tourism industry, this
chapter will focus on how useful is MIS in the restaurant and beverage service
industry.
THE F&B SERVICE INDUSTRY

The food and beverage industry is built of complex systems for buying,
storing, preparing and selling local food and beverage. The total look and feel
of this industry depends on its management information systems, which
coordinate everything from scheduling personnel to customer service.
Restaurant Management System can help create an ambiance and make it
more profitable as well as a better place for customers to eat.
 MIS IN THE F&B SERVICE INDUSTRY

MIS application in the restaurant service industry is supported by three
components. These are the following:
 People whom the service is to be rendered
 Service process as implemented in the organization
 Service technology as used in the decision making of the
organization
Restaurant
Service
Industry
PEOPLE

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The illustration above shows the three components that is important when an MIS is
to be applied in the restaurant service industry. Its application should focus on the
service needs of the people, or the guests who will patronize the establishment.
Their needs should be continuously monitored and evaluated so that managers can
revise the service strategy to meet guest’s expectation.
The moment the managers were able to fix the service strategy, next thing to
consider is the service process. The MIS should now evaluate the efficiency and
effectiveness of the processes for the decided operating standards. This will help
them analyze what technology will then be applied so as to ensure that company
goals and objectives are met.
The third significant component is the service technology which decides the
efficiency and effectiveness of the processes. This component involves data
communication, information search, as well as real time decision of the managers or
management using the system. Should these parameters be met or handled
effectively, it follows that the system efficiency improves significantly. This will then
result to management relying to this if appropriate technology was chosen. With this
appropriate technology, the difference in service quality is observable.
POINT OF SALE IN THE RESTAURANT BUSINESS

Point of Sale or commonly knowns in its abbreviation as POS, helps
restaurant operate more effectively, manage the operation and connect with
customers. In fast food chain, POS is commonly used like that in McDonald’s.
The discussion below explains how it works:
1. Order-taking – the moment the order was taken and confirmed, it will be
entered into the computer or by touching the screen. The computer then
calculates the bill including tax. Once the customer pays, the staff will then
enter the receipt number and the amount paid.
2. Food and Beverage Preparation – after the order was paid, it will then
appear on the computer screen back in the food preparation area. The
cook or crew in case of fast food chains prepares the order and keys into
the computer once done preparing. The staff at the counter will then can
see on his/her screen that the order is finished and ready to be served.
3. Inventory Management – once the orders were completed, the POS

automatically tells the inventory system that the ingredients in making the
order having been used from the available items. The items subtracted
from the total available ingredients on hand are placed then at the
purchasing system.
4. Reports Generation – the POS can track employee productivity, average

sales per employee, what menu items are the most popular, what items
are less popular and how quickly orders are served from time of input. The
number of customers served on an hourly and daily basis and the number

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of times the tables turn – new customers are seated, can also be tracked
or generated.
NAME: ___________________________ DATE: __________
I. TRUE OR FALSE. Write the word TRUE if the statement is correct and FALSE if incorrect. (10 points)
____ 1. Service industry refer to those establishments rendering services to their clients such as airlines, restaurants
and hotels.
____ 2. The food and beverage service industry are built of complex systems for buying, storing, preparing and selling
food and beverage.
____ 3. Restaurant management systems can help create a food service ambiance and make it more profitable as
well as a better place for customer to eat.
____ 4. Fast food chains are operated as a network, thus, their processes are complex by which the need for MIS is
very significant.
____ 5. The manager of a restaurant or beverage establishment must be able to determine prices and schedules,
make forecasts, perform an ongoing audit of inventory and other company assets and monitor performance.
____ 6. One of the components of MIS applications in a restaurant is money.
____ 7. Another component a restaurant’s MIS is data.
____ 8. MIS application in a restaurant should focus on the service needs of the people or the guests who will
patronize the establishment.
____ 9. The customers’ needs should be continuously monitored and evaluated so that the managers can revise
restaurant’s service strategy to meet their expectations.
____ 10. The third significant component of an MIS of a restaurant is the service technology which decides the
efficiency and effectiveness of the service process.
II. ESSAY. Answer the following substantially. (20 points)
Discuss in your own words the importance of the three components of the MIS of the F&B industry. Give concrete
examples to support your answer.
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NAME: ___________________________ DATE: __________
Instructions: Interview industry experts on how they utilize MIS in the restaurant business. Use
POS in some fast food chain can also be used a s a basis of your output. Write your findings in
the space provided.

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CHAPTER MIS APPLICATIONS IN THE HOTEL INDUSTRY

7
 Explain further what hospitality industry is
 Provide examples of establishments in the hospitality industry
 Explain how MIS is implemented in the hotel industry
 Enumerate and discuss the features of some information systems used in
the hotel industry
INTRODUCTION
Hotel industry also utilizes MIS to help them manage effectively its day to day
operations. With the competition nowadays, the management needs an
effective and efficient system to address the needs of various guests. This
chapter will deal on how the hospitality industry uses MIS as an aid in the
management decisions
THE HOSPITALITY INDUSTRY

The hospitality industry is composed of establishments responsible for
providing guests with bed and food at a certain cost. Planning for a guest’s
stay in this industry would be challenging as it includes managing
accommodations, aggressive pricing and marketing, forecasting and
implementing reporting controls. A flexible system that provides information in
order to achieve optimal standards is needed. The system that provides
information and feedback to measure financial impact and quality is also
important to ensure its success especially that various hotels are located
anywhere so competition becomes complex in all aspects. As discussed in
the introductory chapter of this book, hospitality or lodging industry can be
composed of the following:
 Hotel
 Motels
 Apartelle
 Condotels
 Inns
The following are common hotel classifications which, in the complexity of its
services offered, needs a complete hotel management system
1. Airport Hotels – these are hotels located near airports and are
conveniently located to provide any level of service from just a clean

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room to room service. They may provide bus or limousine service to
the airlines when needed to address guests needs
2. Commercial Hotel – these hotels cater mainly to business clients. They
usually offer room service, coffee-shop, dining room, cocktail lounge,
laundry and valet services as well as access to computers and fax
services.
3. Economy Hotels – as the name suggests, this hotel classification
provide a limited service and are known for clean rooms at low prices,
meeting just the basic needs of travelers.
4. Suite/All-Suite Hotels – these are hotels which offer spacious layout
and design. Most business people like the setting which provides
space to work and entertain separate from the bedroom. As the name
suggest, all rooms are in suite type.
5. Residential Hotels – these are hotels that used to be very popular. The
typical residential hotel offers long term accommodations. These are
mostly seen in the business centers and areas where access to main
cities can be found.
6. Casino Hotels – these are hotels that are often quite luxurious. Their
main purpose is actually in support of the gambling operation. In the
country, casino hotels often offer top name entertainment and excellent
restaurants.
7. Resort Hotels – these are hotels that are planned destination of guests,
usually vacationers. Hotels of this classification are located at the
ocean (for some countries), near the ocean, or in the mountains away
from inner cities. These may offer any form of entertainment to keep
their guests happy and busy.
These type of hotels need to be able to have an improved guest service,

efficient internal operations and control over financial data. The following are
hotel’s tasks that need careful planning and execution:
 Handling of reservations
 Checking in and out of guests
 Assigning of rooms
 Managing of room inventory
 Accommodating the needs of in-house guests
 Handling accounting and billing
MIS IN THE HOSPITALITY INDUSTRY
MIS application in the hospitality industry is very vital. Without a proper
system in all aspects of its operation, reaching to guest needs, adapting to
trends, and other changes in the industry, maximization of profit and all others
will be difficult and is challenging.

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Because hotel administration includes several different responsibilities, MIS
can help them track both financial and operational information at one point,
allowing managers to measure the hotel’s effectiveness and efficiency all the
way from sales and marketing to room rentals, housekeeping, food service
maintenance and facilities management. This then allows hotel managers to
the following important things to consider:
 Determine how well they sell rooms
 Know the profit from each night
 Determine the cost of ancillary services
 Identify the staff needed to run the company
MIS application in hotels can then be summarized below:
 Guest profile
 Occupancy Rate
 Future projections
 Monitoring expectations
 Needs for communication
 Guest database
 INFORMATION SYSTEMS USED IN THE INDUSTRY

To manage hotel’s occupancy rate, reservation system, room availability,
guest records and other aspects pertaining to selling of hotel facilities,
information systems are available for their use.
1. Lodging Property Management System – this information system
used by some hotels is divided into four modules. It can interact with
the travel front office, group sales, guest history, accounts receivable,
as well as travel agencies and yield management
2. Paragon AS/400 Front Office System – this claims a flexible system
that provides information and feedback to measure financial impact
and quality. It can manage the complete hotel system which can be
integrated with Paragon Back Office, Central Reservations and
complementary products. It has the following features:
 Reservation
 Flexible rate configuration and maximum room occupancy
resulting to optimal return on rooms
 Access on room availability by type
 Provision of confirmation letters and pre-printed registration
cards
 With hotel configurable fields to capture additional guest
information
 Able to maintain wait lists
 With flexible package configurations

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3. CLS Software Property Management System – can support
properties of all sizes from 50 to 1000 rooms and has a comprehensive
integrated modular system that links all aspects of the hotel function
which comes in domestic and international versions
4. Opera Property Management System – commonly used by hotel
operations, this was designed to meet varied requirements of any size
of hotel. It provides users with all tools they need for doing their day-to-
day task. This system has the following key features:
 Reservations
 Rate Management
 Profiles
 Front Desk
 Back Office interface
 Rooms Management
 Cashiering
 Accounts Receivable
 Commissions
 Reporting Fully configurable
 Global perspective
 Hospitality System Interfaces
 OPERA Xpress
It also supports multicurrency and Multilanguage features to meet global

operations requirements.

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NAME: ___________________________ DATE: __________
Instructions: Elaborate your ideas of the following terms based on what you have learned in this
chapter. You can research more in the internet for further information. (30 points)
Opera PMS
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Paragon Front Office System
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CLS Property Management System
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NAME: ___________________________ DATE: __________
Instructions: Research for property management systems used by hotels in your locality. If
possible, you may interview managers of hotels and resorts to further extract information on how
their practices in MIS. Identify the key features of the systems used. Write your output on the
space provided.

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CHAPTER ETHICAL ISSUES IN MIS

8

 Define ethics
 Enumerate the four main ethical concerns in MIS
 Discuss the points to be considered in each ethical concern
 INTRODUCTION
Technology, as in MIS, as discussed is vital in the organization’s growth. Its
impact is significant in all aspects of the business. However, there are ethical
issues that an organization needs to consider ensuring safety and security of
company information. This chapter will focus on these issues so that future
tourism and hospitality managers are aware of their implications.
 WHAT IS ETHICS?
In its simplest meaning, ethics pertains to guiding principles and standards
that define and measure choices we make in life. Ethics are values used in a
professional setting.
Privacy
One of the ethical issues that we will discuss is privacy. In this issue,
managers of MIS should be aware of the following points:
o The information to be required to divulge about one’s self and to others
o The conditions of divulging information
o The information that one be able to keep strictly to one’s self
Accuracy
The next ethical concern is on accuracy. The information that
managers need in order to make informed decisions will depend on its
accuracy. As such, the following points shall never be overlooked.
o The person who will be responsible for the information’s authenticity,
fidelity and accuracy.
o The person who will be held accountable for errors in information
Property
In this concern, MIS managers should consider the following points:

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o The owner of the information
o The just and fair prices for information exchange
o The owner of the channels through which information is transmitted
o Allocation of access to the scarce resource of information
Accessibility
The last ethical issue is about the information accessibility. This shall
also be considered by MIS managers. The following points for this issue shall
be dealt with:
o The information to be obtained by a person or an organization having a

right to do that
o The conditions in accessing information and to what safe guards

NAME: ___________________________ DATE: __________
Instructions: Answer the following questions substantially.
1. What is the role of ethics in the management of information in the tourism and hospitality
industry? Give a particular situation where you can apply ethics in any sector of the
industry. (30 points)
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NAME: ___________________________ DATE: __________
Instructions: Research for an article that talks about ethical issues in Management Information
Systems as applied to the tourism and hospitality industry. Give your reactions or opinion
regarding the issue and suggest ways on how it will be resolved. (50 points)
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ILOCOS SUR

CHAPTER THE TOURISM AND HOSPITALITY INDUSTRY

The tourism and hospitality industry helps a country in terms of economic

The Travel Industry

Course Code: HPC 7 & TPC 6

The Food and Beverage Industry

The Lodging Facilities

Course Code: HPC 7 & TPC 6

In hotels, especially those chains, information management is very significant.

Course Code: HPC 7 & TPC 6

 Boracay Beach Resort

Resorts are not

The Travel Agency and Tour Operations

Some of the services offered are the following:

Course Code: HPC 7 & TPC 6

As travel agencies and tour

INTENDED LEARNING ACTIVITY – CHAPTER 1

CHAPTER USE OF COMPUTER-BASED INFORMATION SYSTEM

At the end of this chapter, students will be able to:

If you are a manager of a hotel’s newsstand in the lobby, managing it would

Managers of hotels will need information or reports from various departments

Information Management can be summarized below:

Course Code: HPC 7 & TPC 6

ORGANIZATION’S MAIN RESOURCES

Hotels, resorts, restaurants and other establishments have main resources by

 The employees who frontline the services or products offered

NEED FOR INFORMATION MANAGEMENT

COMPLEXITY OF BUSINESS USEFULNESS OF COMPUTER

Course Code: HPC 7 & TPC 6

Instructions: Interview any employee or manager of a hospitality or tourism

Course Code: HPC 7 & TPC 6

CHAPTER MANAGEMENT INFORMATION SYSTEM

The tourism and hospitality industry caters to various types of guests.

A Management Information System or MIS refer to the following:

 A study of people, technology, organizations and the relationships

As a computer-based system, it makes information available to users, who, in

Course Code: HPC 7 & TPC 6

Example: A car dealership may use a computer database to keep track of

Information that is made available to users of an MIS may be in the form of

 Cyclic or periodic reports

ORIGIN AND EVOLUTION OF MIS

o Like any other processes, MIS represents the electronic automation of

o Automation emerged in the 1880s

Course Code: HPC 7 & TPC 6

MIS IN SMALL BUSINESS

 A medical practice with a single doctor running software for functions

Course Code: HPC 7 & TPC 6

In effect, all businesses engaged in consulting, marketing, sales, research,

Course Code: HPC 7 & TPC 6

INTENDED LEARNING ACTIVITY – CHAPTER 3

COURSE AND YEAR: ______________ SCORE: ________

2. Origin and evolution of MIS

3. Application of MIS in the hospitality sector

Course Code: HPC 7 & TPC 6

COURSE AND YEAR: ______________ SCORE: ________

Course Code: HPC 7 & TPC 6

CHAPTER MIS IN FOCUS

The use of MIS in any business operation is very significant. As discussed in

Management Information System is composed of five basic components in

Course Code: HPC 7 & TPC 6

COURSE AND YEAR: ______ SCORE:

COURSE AND YEAR: ______ SCORE:

COURSE AND YEAR: ______ SCORE:

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COURSE AND YEAR: ______ SCORE:

COURSE AND YEAR: ______ SCORE:

NAME: _________________ DATE:

COURSE AND YEAR: ______ SCORE:

COURSE AND YEAR: ______ SCORE:

COURSE AND YEAR: ______ SCORE: