Technology Strategies for the Hospitality Industry, 3rd Edition Class Notes

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Online Instructor’s Manualto accompanyTechnology Strategies for theHospitality IndustryThird EditionPeter D. NyheimDuy Tan University

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iiiTABLE OF CONTENTSTO THE INSTRUCTOR1SAMPLE SYLLABI2TEXT OUTLINE8CHAPTER1INTRODUCTION AND COMPETITIVE ADVANTAGE20CHAPTER2COMPUTING BASICS AND NETWORKS24CHAPTER3E-COMMERCE AND DIGITAL MARKETING IN PRACTICE28CHAPTER4RESTAURANT MANAGEMENT SYSTEMS33CHAPTER5HOTEL AND RESORT TECHNOLOGY37CHAPTER6TECHNOLOGY IN MEETINGS AND EVENTS43CHAPTER7MAXIMIZING REVENUES THROUGH GLOBALDISTRIBUTION48CHAPTER8DATABASES54CHAPTER9INFORMATION TO KNOWLEDGE58CHAPTER 10VIRTUAL REALITY AND AUGMENTED REALITYAPPLICATIONS FOR THE TOURISM AND HOSPITALITY66INDUSTRYCHAPTER 11STRATEGIC HOSPITALITY TECHNOLOGY INVESTMENT70

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1To the Instructor:This Instructor’s Manual is designed to provide flexibility in your choice of assignmentsand a wide variety of types of assignments. The material for each chapter includes:•A Chapter Overview to summarize the basic issues addressed in the chapter•Chapter Objectives for the students•Suggestions for class lectures, including more specific measurable studentobjectives that can be focused on for class discussions•Suggested “real world” applications of chapter materials which focus on studentsfinding examples of actual meetings and events to use in applying the chaptermaterial, and or students developing model examples of meetings and eventsthemselves. These include suggestions for group projects and presentations.•Suggested video resources from web sources such as YouTube and from films.These can be used as supplementary materials to reinforce chapter concepts or toprovide connections to other media•Suggested chapter assignments for the individual student•Suggested research assignments for the individual student•Suggested answers to end-of-chapter review questionsAdditionally, this Manual include suggested 10 and 16-week syllabi for a course usingthis text. These syllabi utilize suggested assignments and projects that could be takenfrom any of the chapter materials. As each chapter has an abundance of possibleassignments, Instructors have many options to customize the course to their needs andfocus. Instructors can also, of course, use these syllabi as models and edit and adjustcomponents and wording of the syllabus to cater to the requirements and policies of theirdepartments or institutions.

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2Sample Syllabus – Technology Strategies for theHospitality Industry(Sixteen Week and Ten Week versions) Course Name / Instructor NameOffice:Phone:E-mail:Office hours:

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3Course ObjectivesThis course is designed to provide students with an introduction and overview ofstrategies to utilize and incorporate technology in the hospitality industry.By the end of the course, students should:•Understand the competitive advantages of technology in the hospitality industry.•Know the basics of computing and networks•Know E-commerce and digital marketing in practice•Understand strategies for technology in the restaurant, hotel and resort industries•Understand strategies for technology in Meetings and events•Know ways to maximize revenue through global distribution•Understand databases and the concept of information to knowledge•Understand the possibilities of virtual reality and augmented realityCourse RequirementsStudents will be required to attend each week’s class meetings; read the required readingsand handouts; take two exams; complete quizzes and class assignments as directed;contribute to a group project and group paper; and write a final report. Participation andattendance are critical to the success of this class and will be used to help determine thefinal grade.GradesChapter Quizzes10%Chapter Assignments10%Group Presentation15%Group Presentation Paper10%Mid-term Exam15%Final Exam15%Participation10%Final Report15%ExamsThe mid-term exam will cover the chapters we have studied to that point in the semester.It will be a combination of multiple choice, true / false, fill-in-the-blank, and shortanswers.The final exam is not cumulative, and will cover the final chapters in our text. It will bein the same format as the midterm exam.

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4Paper / ReportThe paper and report should be typed and double-spaced in a 12-point Times Roman fontwith 1-inch margins. The format for papers should be MLA style. A sample paper inMLA style can be found in most college handbooks and online. Failure to follow correctformat will result in a loss of points for the assignment.Late papers will drop yourgrade by ten points for each class period missed. Any paper that is not turned in byone week after due date will be given a grade of 0. Any paper that is plagiarized willreceive a grade of 0, and I may pursue further disciplinary action.Iwill have furtherhandouts of details of the two papers.Group PresentationYou will contribute to a group presentation which will be tied to one of our text chapters.Each student will be expected to contribute equally to this project. I will assign you to agroup that will work together to give an oral presentation to the class that details a “real-world” application of the issues discussed in the text. I will have a further handout withmore details of this assignment.Group PaperThe group will also turn in a formal paper detailing the information given in their oralpresentation. I will have a further handout with more details of this assignment.Final ReportYou will write a final report for this class in which you are asked to demonstrate athorough knowledge and understanding of technology strategies for the hospitalityindustry. This will be a comprehensive report that will ask you to incorporate materialand skills from throughout the course. I will have a further handout with more details ofthis assignment.QuizzesWe will have a quiz on the material covered in that week’s chapter on the first classperiod of that week. There may also be quizzes on other materials discussed in classincluding videos or group presentations.Chapter AssignmentsFor some chapters, I will assign an activity for you to complete and submit to me. Theseassignments may be research-based, or they may ask you to practice some of thetechniques we are learning from that chapter, or ask your opinion about some of theissues that we have been discussing in class. Chapter Assignments are formally writtenand those turned in late will receive partial credit.

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5Participation and Classroom ConductYou are expected to come to class well prepared with all assignments complete, and toparticipate in whole-class discussions.If you are attentive and regularly make helpful, insightful comments in class, andcomplete all assigned work on time, you will earn an “A” for your participation grade. Ifyou rarely offer useful insight or comments, if you are disruptive, if you sleep or areotherwise occupied, or if you fail to contribute to the positive functioning of this class,you will earn an F for participation.If you rarely participate in class discussions but turn in your assignments on time, do wellon the quizzes and in collaboration with your group, you will most likely earn a C forparticipation. Repeated tardiness will also affect your participation grade.Because it isonly fair to apply the same requirements to all students, please do not ask for anexemption from the requirements listed above.Classroom ConductYou are expected to treat faculty and fellow students with respect. Civility in theclassroom and respect for the opinions of others is very important in an academicenvironment. It is likely that you may not agree with everything that is said or discussedin the classroom. Courteous behavior and responses are expected and lack of this willaffect your grade.A word about cell phones.When you are in class, you should not take cell phone calls. They should be turned offwhen you enter the classroom. If you leave class to take a call, it will affect yourparticipation grade. If you are in an emergency situation and need to be accessible by cellphone, set it to vibrate, and inform me privately at the beginning of class.Also: no txtmsg n cls!! Rlly!!!Academic IntegrityAcademic integrity is fundamental to the process of learning and evaluating academicperformance. Academic dishonesty will not be tolerated. Academic dishonesty includes,but is not limited to, the following: cheating, plagiarism, tampering with academicrecords and examinations, falsifying identity, and being an accessory to acts of academicdishonesty.Accommodations for Students with DisabilitiesStudents who qualify for services will receive the academic modifications for which theyare legally entitled. It is the responsibility of the student to register with the Office ofDisability Services each semester and follow their procedures for obtaining assistance.Please let me know by the end of the second week of class if you anticipate needingdisability accommodation.

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6Attendance PolicyStudents are expected to attend every class and are responsible for all class work. Youwill be penalized for excessive absences.For each absence after three, your finalgrade will be lowered two points.I may also notify your dean who may put you onattendance probation. You will be marked absent if you are not present when the roll istaken. If you come to class late, it is your responsibility to see me at the end of classtohave the absence changed. Additionally, if you leave early, you may be marked absentfor half or all the class period. You are also expected to let me know at the beginning ofclass if you need to leave early.You should save absences for times that are trulyunavoidable.You are responsible for finding out from a class member whatever occurs in class on aday you are absent. Work due on a day you are absent is still due on the due date.Because it is only fair to apply the same requirements to all students, please do notask for an exemption from the requirements listed above.If you observe religiousholy days that are not noted in the academic calendar, please see me by the end of thesecond week of class.Weekly Syllabus (Sixteen Week Schedule).Students are responsible for the material listed at that week before coming to the firstclass period of that week. Expect quizzes for all chapters. Syllabus may change, withadvance notice to class.Week OneIntroduction to the course / Introduction to the classWeek TwoChapter 1 / Chapter 2Week ThreeChapter 3Week FourChapter 4Week FiveFirst Group Presentations / Class Review and DiscussionWeek SixChapter 5Week SevenChapter 6Week EightSecond Group Presentations / Class Review and DiscussionWeek NineReview / Midterm ExamWeek TenChapter 7

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7Week ElevenChapter 8Week TwelveThird Group Presentations / Class Review and DiscussionWeek ThirteenChapter 9Week FourteenChapter 10 / Chapter 11Week FifteenFourth Group Presentations / Class Review and DiscussionWeek SixteenFinal Reports Due / Final Exam ReviewFinal Exam: Time and date TBA during Finals Week in ourregular classroom.Weekly Syllabus (Ten Week Schedule).Students are responsible for the material listed at that week before coming to the firstclass period of that week. Expect quizzes for all chapters. Syllabus may change, withadvance notice to class.Week OneIntroduction to the course / Introduction to the class / Chapter 1Week TwoChapter 2 / Chapter 3Week ThreeChapter 4 /First Group PresentationWeek FourChapter 5 / Chapter 6Week FiveChapter 7 /Second Group PresentationWeek SixMidterm Review / Midterm ExamWeek SevenChapter 8Week EightChapter 9 /Third Group PresentationWeek NineChapter 10/ Fourth Group PresentationWeek TenChapter 11 /Final Reports Due

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8Final Exam: Time and date TBA during Finals Week in ourregular classroom.Text OutlineCHAPTER ONE – Introduction and Competitive AdvantageChapter ObjectiveLearning ObjectivesChapter IntroductionInterviewOverviewWelcome to the World of IT!Managing Your CareerStrategyAchieving Competitive AdvantageResource-Based View of the FirmPast Examples of Competitive Advantage Derived from ITSustainabilitySummaryCase Study and Learning ActivityKey TermsChapter QuestionsCHAPTER TWO – Computing Basics and NetworksChapter ObjectivesLearning ObjectivesChapter IntroductionInterviewOverviewSystemHardwareSoftware

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9NetworksSecurity, Performance, and ReliabilitySmall NetworksLarge NetworksThe InternetThe World Wide WebLarge Wireless NetworksForward-Looking Issues in HospitalitySecuritySummaryCase Study and Learning ActivityKey TermsChapter QuestionsCHAPTER THREE – E-Commerce and Digital Marketing in PracticeChapter ObjectiveLearning ObjectivesChapter IntroductionInterviewOverviewAdvertisingAuctioningMobile CommerceSocial CommerceUser-Generated ContentE-Commerce TechnologiesOverview of E-Commerce TechnologiesServersE-Commerce Web Apps and ToolsConversion Rate OptimizationAnalytics

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10UGC (Pixlee, Curalate)Social SharingBrowser Notifications (Pushfire, Pushcrew)Email SubscriptionsSocial Buy ButtonsLive ChatDynamic Landing PagesContent Management and E-CommercePlatformsSocial MediaSubscriptions (Starbucks, Cratejoy)Loyalty ProgramsInbound MarketingAffiliate MarketingInternet of Things (IOT)—Smart Speakers,Smart EverythingMessaging Apps and ChatbotsDigital MarketingIntroduction to the Topic of Digital Marketing and Its Impact on HospitalitySEOSEMPaid AdvertisingMedia BuyingPay-Per-Click—PPCCost per Action—CPAShopping AdsPay per View—PPVPaid Social AdvertisingNative AdsMobile AdsRetargetingEmail Marketing

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11Reputation Management (Hotel-Focused Reputation Management)Content MarketingVideo MarketingPodcastingConversion OptimizationWeb AnalyticsSecuritySecurity of Your Electronic TransactionsSecuring Your Web SiteMessage SecurityMessage IntegrityE-Commerce Security TrendsGrowth in Cyber CrimesRansomware, Malware, and AdwareExploiting Social CommerceZero-Day ExploitsFake ReviewsSummaryCase Study and Learning ActivityChapter QuestionsKey TermsCHAPTER FOUR – Restaurant Management SystemsChapter ObjectiveLearning ObjectivesChapter IntroductionInterviewOverviewRestaurant Management System (RMS) ComponentsOther POS Functionality

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12Decreased Service TimeOrder AccuracySecurity of Cash Transactions and Internal Auditing FunctionsReduced Training BurdenLabor Scheduling and Performance Control AnalyticsThe Kitchen Management SystemKitchen Management System (KMS)Inventory and Production ManagementInventory Levels and ConsumptionPurchasingTheftBenefits of Inventory and Menu ManagementReservations and Table ManagementInterfacesSelf-Ordering/Online OrderingProprietary versus Nonproprietary RMSPayment, Security, and ComplianceSummaryCase Study and Learning ActivityKey TermsChapter QuestionsCHAPTER FIVE – Hotel and Resort TechnologyChapter ObjectiveTwo Questions Addressed in the ChapterLearning ObjectivesChapter IntroductionInterviewOverviewThe Guest Lifecycle

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13The Property Management SystemEnable Guests to Make ReservationsEnable Guests to Check-In/Register When They Arrive and Check-Out/Pay WhenThey LeaveEnable Staff to Maintain Guest FacilitiesAccount for Guests’ Financial TransactionsTrack Guests’ Activities for Use in FutureSales Efforts 75Track Guests’ ComplaintsInterface with Other Systems 76Central Reservation System (CRS) 76Point-of-Sale System (Food and Beverage POS) 77Hotel Retail POS Systems 77Back-Office Accounting 77Sales and Catering System 77Energy Management System 77In-Room Amenities 77Security 78The Call Accounting System 78Guest Call/Maintenance Tracking System 78Telephone Service and Guest Messaging 78Three Key Interfaces 78Real-Time Interface with the GDS/CRS 78Integration with Activities Management Systems 79Built-In Revenue Management Tools 80Graphical User Interface 80Advantages and Disadvantages of ExternalTechnologies 81Summary 83Case Study and Learning Activity 83Key Terms 85Chapter Questions

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14CHAPTER SIX – Technology in Meetings and EventsChapter Objective 86Learning Objectives 86Chapter Introduction 86Interview 87Overview 88Planning Phase 88Site Selection and RFPs 88Event Documentation 89Registration, Housing, and Travel 89Marketing and Sponsorships 89Internet Requirements 90Event Phase 90Audio 90Visual 91Virtual Meetings 91Presentation Management System 93Team Communication 93Attendee Experience 93Audience Response and Survey Systems 93Mobile Application Software 94Wearable Devices 94Mobile Payments 94Signage 95Event Capture 96Summary 96Case Study and Learning Activity 96Key Terms 97Chapter Questions 97

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15CHAPTER SEVEN – Maximizing Revenues through Global DistributionChapter Objective 98Learning Objectives 98Chapter Introduction 98Interview 99Overview 100Importance of GDS 103Developing a Distribution Channel Strategy 106Finding and Competing for Electronic Shelf Space 106Cost Implications 107Understanding Share of Distribution 109Inadequate GDS Technology Infrastructure 110How Hotels Find Return on Investment in Third-Party Distribution 110The Rise in Meta Search Engines 111Shift in Balance of Power from Supplier to Customer 111New Models of Distribution and Pricing 111Accelerated Rates of Change 112Relinquished Control of the Customer Relationship 112Trends in Hotel and Resort GDS 112Disintermediation and Reintermediation 112Digital Divide 113Transparency: A Hope for the Future 114Packaging: The Bundling of Air Tickets,Lodging, and Car Rentals 114Leveraging Technology to ReduceOverhead 114Smart Device Apps Applications 115Shopping Bots 115Summary 115Case Study and Learning Activity 116Key Terms 118Chapter Questions 118

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16CHAPTER EIGHT – DatabasesChapter Objective 119Learning Objectives 119Chapter Introduction 119Interview 120Overview 121Structured Data and Database Basics 121Database Management Systems (DBMSs) 121Functions of a DBMS 123Data Extraction and Information Gathering 123Distributed DBMSs and Cloud Computing 124Unstructured Data 125Database Usage 125Analysis 125Customer Relationship Management (CRM) 126CRM in Use 126Summary 128Case Study and Learning Activity 128Key Terms 129Chapter Questions 129CHAPTER NINE – Information to KnowledgeChapter Objective 130Learning Objectives 130Chapter Introduction 130Interview 131Overview 131Defining Business Intelligence 133Information as a Valued Asset 135Working Smart 136The Balanced Scorecard 137

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17The Importance of Infrastructure 138Summary 139Case Study and Learning Activity 139Key Terms 140Chapter Questions 140CHAPTER TEN – Virtual Reality and Augmented Reality Applications for the Tourismand Hospitality Industry 141Chapter Objective 141Learning Objectives 141Chapter Introduction 141Interview 142Overview 143VR Definition 144AR 144Technologies for VR and AR 145Overview of 3D Scanning Technology 145Types of 3D Scanning Technologies 145360-Degree Video for Quick VR/AR Scene Generation 146VR/AR HMD Technologies 147Tethered VR Headsets 147Wireless VR Headsets 148Wireless AR Headsets 148VR/AR in Tourism and Hospitality:Rationales and Applications 149Effective Policy Planning and Management 149Effective Entertainment Tool 149Education Tool 149Virtual Attractions at Effective Cost 149Interactive Dining Experience 149Easy Translation Capabilities 149Real-Time and Reliable Navigation 150

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18Booking Rooms 150Exploring the Property 150Restaurant Experiences 150Local Attractions 150Marketing 150Hotel Management 150Emerging Role of Artificial Intelligence 151VR/AR Adoption in the Tourism and Hospitality Industry 151Failures of VR/AR Adoption 152Summary 152Case Study and Learning Activity 153Key Terms 153Chapter Questions 153CHAPTER ELEVEN – Strategic Hospitality Technology InvestmentChapter Objective 154Learning Objectives 154Chapter Introduction 154Interview 155Overview 156Reducing Expenses and Increasing Profits 156Decreased Expenses 157Increased Gross Profits 158System Examples 158Cash Flow and Costs 159System Selection Process 160Verify/Develop the Conceptual Design for the Enterprise 160Define Functional and System Requirements for the Component Application(s) andCreate Organizational Consensus on the Requirements 162Compile a Request for Proposal (RFP) 163Develop a Vendor Short List 163Solicit Proposals 164

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19Assess Proposals against Criteria 164Visit Reference Sites 165Have Vendors Provide Demonstrations 165Final Selection 166Implementation 166Summary 168Case Study and Learning Activity 168Key Terms 170Chapter Questions 170

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20Chapter by Chapter Suggestions for the InstructorChapter One – Introduction and Competitive AdvantageChapter OverviewMoney aside, the reality is that for most careers, IT is an integral and necessarycomponent. Thanks to the convergence of various forms of technology (e.g., computers,software, and cloud technology), the rise in electronic business (e-business), and agrowing number of enterprise-wide technology initiatives, technology is a critical aspectof almost any job, disrupting functional silos and creating the need for boundaryspanners. Simply put, IT is changing everything—from guest expectations and needs toindustry structure to how we perform our jobs and what skills we will need to besuccessful. In fact, it is changing the very nature of how services are delivered.Consequently, IT is inescapable and must be a core skill for any aspiring hospitalitymanager or executive. Management guru Peter Drucker often stated that everyone in thefirm is responsible for marketing the firm and ensuring customer satisfaction. In a similarvein, because of the confluence of business process, competitiveness, and technology,everyone in today’s organization, by default, must be responsible for IT and think and actlike a chief information officer (CIO).One cannot make marketing decisions in a vacuum without in-depth knowledge about thecapabilitiesandlimitationsofIT.Globaldistribution,supplychainmanagement,customer relationship management (CRM), electronic commerce (e-commerce), digitalmarketing, social media, customer segmentation, revenue management, and so on are allunderpinned by IT applications. Thus, a good marketer, by default, must be well versedin IT. The same could be said for every other discipline, including human resources,finance and accounting, management, and operations. You can’t make decisions aboutthe business without using IT (or information generated from IT systems) and withoutfactoring in IT considerations. Therefore, every manager or executive must strive tounderstand how to use IT, see its strategic potential, and recognize its limitations so asnot to be bamboozled by it, led astray, or be constrained by the limitations of the firm’sIT infrastructure. While hiring experts or outsourcing may be a viable approach and helpreduce the amount of expertise you must have in this area, it does not completely absolveyou from having proficiency and a solid understanding of what technology can andcannot do and what questions to ask. Like anything, understanding and using IT requireinvestment (of both time and money), commitment, and diligence. Students’ knowledgein this area will reduce their dependence on others and improve their ability to ask theright questions so they can properly lead their firms.Chapter ObjectivesAt the end of this chapter, students will gain an understanding of the technology they willuse in their career and competitive advantage.

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