CHTP REVIEW: Hotel Technology. Cihan Cobanoglu, Ph.D., CHTP University of South Florida Sarasota- Manatee May 5, 2011

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1 CHTP REVIEW: Hotel Technology Cihan Cobanoglu, Ph.D., CHTP University of South Florida Sarasota- Manatee May 5, 2011

2 What To Expect Multiple Choice and True/False 4 Sections 250 Choose most correct answer 75% Passing grade in each section

3 Review Topics General Technology: Network Administration Emerging Technologies Telecom System Architecture Targeted Technology: Facilities Club Applications Resort / Spa Marketing / Web Applications Hotel Technology: Accounting / Payroll / HR Food and Beverage Lodging Applications Managing Technology: Time and Attendance Systems General Management System Strategies System Analysis and Selection

4 HFTP Hotel Technology Section Two

5 POLL QUESTION How many systems are there in a full service hotel? a) Less than 10 b) c) d) e) 75 or more

6 TRAVEL AGENTS GLOBAL RESERVATION SYSTEM Internet/ Intranet HFTP Hotel System Map FORECASTING & SCHEDULING CORPORATE ACCOUNTING SYSTEM PURCHASING & INVENTORY INTERFACE WITH DIRECTION OF DATA FLOW TIME & ATTENDANCE FOOD & BEVERAGE INVENTORY SYSTEM ELECTRONIC BAR DISPENSER CORPORATE GUEST HISTORY SWITCH COMPANY PMS , WWW, DSS, EIS CORPORATE RESERVATION SYSTEM YIELD MANAGEMENT RESTAURANT MANAGEMENT SYSTEM (POS) PAY PER VIEW / CHECK OUT CALL ACCOUNTING SYSTEM (CAS) MINI BAR LD CREDIT CARD AUTHORIZATION & EFT MAID DIAL-IN ELECTRONIC LOCK & SECURITY SYSTEM PBX (SWITCH INROOM ENERGY CONTROL SALES & CATERING SYSTEM WAKE-UP SYSTEM MAINTENANCE ENERGY FIRE & LIFE SAFETY VOIC MESSAGE HANDLING REMOTE SALES MARKETING

7

8 Central Reservation Systems Affiliate Systems System that services an entire chain All properties are contractually related CRES systems handle all reservations with some type of charge or cost.

9 Central Reservation Systems Non-Affiliate Systems Contracted to individual properties Subscription based service Apply to independent hotel properties Have some type of charge or cost Interfaces One-Way verses Two-Way The properties inventory may not reflect the same as the Central reservations depending on the interface to the property.

10 Global Reservation Systems (GDS) International joint ventures of diverse companies Direct linking of: hotels, airlines, car rental companies, and travel agencies using the internet or other private computer networks

11 Poll Question Which of the following is an example of a global distribution system? a) Expedia b) Sabre c) Galileo d) A and B e) B and C

12 GDS HFTP

13 Revenue and Yield Management Systems Revenue Management Program helps hotel managers determine whether a reservation request should be accepted or rejected in order to maximize revenue for a specific period of time. Takes advantage of rate hurdles Yield Management The ratio of actual revenue to potential revenue. Room rates should be higher when demand exceeds supply. Oversell Guidelines maximize revenue potential by selling all available rooms.

14 Property Management System (PMS) The computer-based lodging information system that helps track guests and their special request or inquires.

15 PMS Front Office Applications Reservations Module Used to process room requests. Most helpful in forecasting occupancy Revenue Management Module Maintains the room and package rates Rooms Management Module Maintains current room status information. Guest Accounting Module Maintains the guest charges and payments

16 Property Level Reservations Module An integrated module of the PMS Reduces paperwork, redundancy, clerical Interface point to CRS Quick access to reservation information

17 Rooms Management Module Strengthen communications between Front Office and Housekeeping Current room status information Room assignment and check-in In-house guest information Organize Housekeeping activities Management reporting

18 Guest Accounting Module Enables posting directly to guest and nonguest accounts Enables management control over financial aspects of the guest cycle Eliminates the need for guest folio cards and posting machines Monitors credit and sets the folio at a nopost status when charges approach the house limit

19 The Audit Trail Cross references from: source document serial number work-shifts cashiers POS terminals departmental accounts

20 Credit Card Processing HFTP Interface to Systems Reduces Cost Insures Accuracy Non-repudiation a solution that offers protection against disputed charges to the merchant.

21 Interface vs Integration

22 Interface TRANSLATOR

23 Call Accounting to PMS Interface Call Accounting PMS

24 Integration Common platform Common database

25 Integration Call Accounting PMS COMMON DATABASE

26 OPEN TRAVEL ALLIANCE (OTA) Opentravel.org HOTEL TECHNOLOGY NEXT GENERATION (HTNG) Htng.org

27 Integration v. Interfacing Integrated Systems: A systems which contains a number of subsets that perform separate tasks yet operate within the same structure. Interfaced Systems: More than one system that are linked together through the use of hardware and software in order to provide communication between separate programs.

28 PMS Interfaces Point-of-Sale Call accounting systems Electronic locking systems Energy management systems Auxiliary guest services Guest-operated devices

29 Call Accounting System (CAS) Designed to place and price outgoing calls, and post telephone charges to guest accounts. Not a guest s credit card Interfaces to PMS and Telephone Switch Automatic ID of outward dialing (AIOD) immediately identifies the extension from which a call is placed Least cost routing Directs calls over the least-cost available line, regardless of carrier. When this line is busy, the device prompts the system to use the next least expensive line.

30 HFTP

31 HFTP

32 Call Accounting System (CAS) Performs the following functions call placement call distribution call routing call rating call recording Preferred Features Separate guest calls from admin calls Long-duration calls can be priced at flat rate Area codes can be updated by hotel management Reasons for reduced telecom revenue Increased use of Calling Cards/Pre-Paid Cards Growing cell phone usage High mark-ups on long distance phone calls

33 Accounting Modules / Systems Accounts Receivable Accounts Payable Payroll Accounting Inventory Accounting Purchasing Financial Reporting

34 Accounts Receivable Module Maintains account balances Processes billings Monitors collection activities Generates aging of A/R reports Audit reporting on all A/R transactions

35 A/R Ledgers Guest Ledger Lists all accounts for in-house guests City Ledger Lists all accounts receivable balances of guest who have checked out guest folio balances non-guest accounts bill-to accounts credit card billings group accounts Advance Deposit Ledger

36 Accounts Payable Module Contains Vendor Master File Posts vendor invoices Monitors payment discount periods Determines amounts due Cuts checks for payment Check reconciliation Management reporting

37 Other Accounting Topics HFTP Payment Terms 2/10 Net 30 Days (2% discount in 10 days, otherwise, pay in 30 days) Blind Drops Basic Posting Formula in Audit Process

38 Payroll Module Employee master file Gross and net pay for salaried and hourly employees Cuts paychecks Payroll and tax registers and reports Labor and cost reporting for management

39 Inventory Module Inventory Master File Inventory Status Inventory Valuation

40 Inventory Valuation HFTP FIFO (First in First Out - Latest) LIFO (Last in First Out - Earliest) LIPO (Surgical Removal of Subcutaneous Fat) Actual cost Weighted average

41 Poll Question Which of the following valuation method is the most commonly used in hospitality industry? A) FIFO B) LIFO C) Actual Cost D) Weighted Average

42 Purchasing Module Purchase Order File par levels lead time quantity reorder point Telecommunication of P/O s Bid Specification File

43 Financial Reporting Module Chart of Accounts Trial Balance File Financial Statements Balance Sheet Income Statement Statement of Cash Flows Ratio Analysis

44 POS Terminology Auto-Coursing - time dependent circle of service Forced Modifiers - automatic prompts for order details Menu Engineering - profitability and sales analysis Prechecking - authorization for production/service Postchecking - check totaling for print/settlement Reports - server, day part, shift, terminal, outlet Server Banking - reconciliation by server, not cashier Hand Held remote input device

45 Food and Beverage HFTP Management Applications Process data related to back-of-thehouse food service activities Common management applications Recipe Management Sales Analysis Menu Management, Engineering and Costing

46 The Menu Engineering Grid $ $ $ Contribution Margin $ Puzzle Dog Star Plowhorse 70% Menu Mix %

47 F&B Cost Control Standard Recipe Benefits Net Weight/Volume Standard Portion Cost #60 Scoop

48 Questions HFTP

49 Review Materials CHTP Study Guide Volumes I & II How Networks Work The Essential Guide to Internet Business Technology

50 Good Luck! HFTP

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