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

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    Online Instructor’s Manual to accompany Technology Strategies for the Hospitality Industry Third Edition Peter D. Nyheim Duy Tan University

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    iii TABLE OF CONTENTS TO THE INSTRUCTOR 1 SAMPLE SYLLABI 2 TEXT OUTLINE 8 CHAPTER 1 INTRODUCTION AND COMPETITIVE ADVANTAGE 20 CHAPTER 2 COMPUTING BASICS AND NETWORKS 24 CHAPTER 3 E-COMMERCE AND DIGITAL MARKETING IN PRACTICE 28 CHAPTER 4 RESTAURANT MANAGEMENT SYSTEMS 33 CHAPTER 5 HOTEL AND RESORT TECHNOLOGY 37 CHAPTER 6 TECHNOLOGY IN MEETINGS AND EVENTS 43 CHAPTER 7 MAXIMIZING REVENUES THROUGH GLOBAL DISTRIBUTION 48 CHAPTER 8 DATABASES 54 CHAPTER 9 INFORMATION TO KNOWLEDGE 58 CHAPTER 10 VIRTUAL REALITY AND AUGMENTED REALITY APPLICATIONS FOR THE TOURISM AND HOSPITALITY 66 INDUSTRY CHAPTER 11 STRATEGIC HOSPITALITY TECHNOLOGY INVESTMENT 70

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    1 To the Instructor: This Instructor’s Manual is designed to provide flexibility in your choice of assignments and 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 student objectives that can be focused on for class discussions • Suggested “real world” applications of chapter materials which focus on students finding examples of actual meetings and events to use in applying the chapter material, and or students developing model examples of meetings and events themselves. 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 to provide 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 questions Additionally, this Manual include suggested 10 and 16-week syllabi for a course using this text. These syllabi utilize suggested assignments and projects that could be taken from any of the chapter materials. As each chapter has an abundance of possible assignments, Instructors have many options to customize the course to their needs and focus. Instructors can also, of course, use these syllabi as models and edit and adjust components and wording of the syllabus to cater to the requirements and policies of their departments or institutions.

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

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    3 Course Objectives This course is designed to provide students with an introduction and overview of strategies 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 reality Course Requirements Students will be required to attend each week’s class meetings; read the required readings and 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 and attendance are critical to the success of this class and will be used to help determine the final grade. Grades Chapter Quizzes 10% Chapter Assignments 10% Group Presentation 15% Group Presentation Paper 10% Mid-term Exam 15% Final Exam 15% Participation 10% Final Report 15% Exams The 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 short answers. The final exam is not cumulative, and will cover the final chapters in our text. It will be in the same format as the midterm exam.

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    4 Paper / Report The paper and report should be typed and double-spaced in a 12-point Times Roman font with 1-inch margins. The format for papers should be MLA style. A sample paper in MLA style can be found in most college handbooks and online. Failure to follow correct format will result in a loss of points for the assignment. Late papers will drop your grade by ten points for each class period missed. Any paper that is not turned in by one week after due date will be given a grade of 0. Any paper that is plagiarized will receive a grade of 0, and I may pursue further disciplinary action. I w ill have further h a ndouts of details of the t w o papers. Group Presentation You 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 a group 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 with more details of this assignment. Group Paper The group will also turn in a formal paper detailing the information given in their oral presentation. I will have a further handout with more details of this assignment. Final Report You will write a final report for this class in which you are asked to demonstrate a thorough knowledge and understanding of technology strategies for the hospitality industry. This will be a comprehensive report that will ask you to incorporate material and skills from throughout the course. I will have a further handout with more details of this assignment. Quizzes We will have a quiz on the material covered in that week’s chapter on the first class period of that week. There may also be quizzes on other materials discussed in class including videos or group presentations. Chapter Assignments For some chapters, I will assign an activity for you to complete and submit to me. These assignments may be research-based, or they may ask you to practice some of the techniques we are learning from that chapter, or ask your opinion about some of the issues that we have been discussing in class. Chapter Assignments are formally written and those turned in late will receive partial credit.

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    5 Participation and Classroom Conduct You are expected to come to class well prepared with all assignments complete, and to participate in whole-class discussions. If you are attentive and regularly make helpful, insightful comments in class, and complete all assigned work on time, you will earn an “A” for your participation grade. If you rarely offer useful insight or comments, if you are disruptive, if you sleep or are otherwise 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 well on the quizzes and in collaboration with your group, you will most likely earn a C for participation. Repeated tardiness will also affect your participation grade. Because it is only fair to apply the same requirements to all students, please do not ask for an exemption from the requirements listed above. Classroom Conduct You are expected to treat faculty and fellow students with respect. Civility in the classroom and respect for the opinions of others is very important in an academic environment. It is likely that you may not agree with everything that is said or discussed in the classroom. Courteous behavior and responses are expected and lack of this will affect your grade. A word about cell phones. When you are in class, you should not take cell phone calls. They should be turned off when you enter the classroom. If you leave class to take a call, it will affect your participation grade. If you are in an emergency situation and need to be accessible by cell phone, set it to vibrate, and inform me privately at the beginning of class. Also: no txt msg n cls!! Rlly!!! Academic Integrity Academic integrity is fundamental to the process of learning and evaluating academic performance. Academic dishonesty will not be tolerated. Academic dishonesty includes, but is not limited to, the following: cheating, plagiarism, tampering with academic records and examinations, falsifying identity, and being an accessory to acts of academic dishonesty. Accommodations for Students with Disabilities Students who qualify for services will receive the academic modifications for which they are legally entitled. It is the responsibility of the student to register with the Office of Disability 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 needing disability accommodation.

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    6 Attendance Policy Students are expected to attend every class and are responsible for all class work. You will be penalized for excessive absences. For each absence after three, your final grade will be lowered two points. I may also notify your dean who may put you on attendance probation. You will be marked absent if you are not present when the roll is taken. If you come to class late, it is your responsibility to see me at the end of class to have the absence changed. Additionally, if you leave early, you may be marked absent for half or all the class period. You are also expected to let me know at the beginning of class if you need to leave early. You should save absences for times that are truly unavoidable. You are responsible for finding out from a class member whatever occurs in class on a day 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 not ask for an exemption from the requirements listed above. If you observe religious holy days that are not noted in the academic calendar, please see me by the end of the second week of class. Weekly Syllabus (Sixteen Week Schedule). Students are responsible for the material listed at that week before coming to the first class period of that week. Expect quizzes for all chapters. Syllabus may change, with advance notice to class . Week One Introduction to the course / Introduction to the class Week Two Chapter 1 / Chapter 2 Week Three Chapter 3 Week Four Chapter 4 Week Five First Group Presentations / Class Review and Discussion Week Six Chapter 5 Week Seven Chapter 6 Week Eight Second Group Presentations / Class Review and Discussion Week Nine Review / Midterm Exam Week Ten Chapter 7

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    7 Week Eleven Chapter 8 Week Twelve Third Group Presentations / Class Review and Discussion Week Thirteen Chapter 9 Week Fourteen Chapter 10 / Chapter 11 Week Fifteen Fourth Group Presentations / Class Review and Discussion Week Sixteen Final Reports Due / Final Exam Review Final Exam: Time and date TBA during Finals Week in our regular classroom. Weekly Syllabus (Ten Week Schedule). Students are responsible for the material listed at that week before coming to the first class period of that week. Expect quizzes for all chapters. Syllabus may change, with advance notice to class . Week One Introduction to the course / Introduction to the class / Chapter 1 Week Two Chapter 2 / Chapter 3 Week Three Chapter 4 / First Group Presentation Week Four Chapter 5 / Chapter 6 Week Five Chapter 7 / Second Group Presentation Week Six Midterm Review / Midterm Exam Week Seven Chapter 8 Week Eight Chapter 9 / Third Group Presentation Week Nine Chapter 10 / Fourth Group Presentation Week Ten Chapter 11 / Final Reports Due

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    8 Final Exam: Time and date TBA during Finals Week in our regular classroom. Text Outline CHAPTER ONE – Introduction and Competitive Advantage Chapter Objective Learning Objectives Chapter Introduction Interview Overview Welcome to the World of IT! Managing Your Career Strategy Achieving Competitive Advantage Resource-Based View of the Firm Past Examples of Competitive Advantage Derived from IT Sustainability Summary Case Study and Learning Activity Key Terms Chapter Questions CHAPTER TWO – Computing Basics and Networks Chapter Objectives Learning Objectives Chapter Introduction Interview Overview System Hardware Software

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    9 Networks Security, Performance, and Reliability Small Networks Large Networks The Internet The World Wide Web Large Wireless Networks Forward-Looking Issues in Hospitality Security Summary Case Study and Learning Activity Key Terms Chapter Questions CHAPTER THREE – E-Commerce and Digital Marketing in Practice Chapter Objective Learning Objectives Chapter Introduction Interview Overview Advertising Auctioning Mobile Commerce Social Commerce User-Generated Content E-Commerce Technologies Overview of E-Commerce Technologies Servers E-Commerce Web Apps and Tools Conversion Rate Optimization Analytics

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    10 UGC (Pixlee, Curalate) Social Sharing Browser Notifications (Pushfire, Pushcrew) Email Subscriptions Social Buy Buttons Live Chat Dynamic Landing Pages Content Management and E-Commerce Platforms Social Media Subscriptions (Starbucks, Cratejoy) Loyalty Programs Inbound Marketing Affiliate Marketing Internet of Things (IOT)—Smart Speakers, Smart Everything Messaging Apps and Chatbots Digital Marketing Introduction to the Topic of Digital Marketing and Its Impact on Hospitality SEO SEM Paid Advertising Media Buying Pay-Per-Click—PPC Cost per Action—CPA Shopping Ads Pay per View—PPV Paid Social Advertising Native Ads Mobile Ads Retargeting Email Marketing

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    11 Reputation Management (Hotel-Focused Reputation Management) Content Marketing Video Marketing Podcasting Conversion Optimization Web Analytics Security Security of Your Electronic Transactions Securing Your Web Site Message Security Message Integrity E-Commerce Security Trends Growth in Cyber Crimes Ransomware, Malware, and Adware Exploiting Social Commerce Zero-Day Exploits Fake Reviews Summary Case Study and Learning Activity Chapter Questions Key Terms CHAPTER FOUR – Restaurant Management Systems Chapter Objective Learning Objectives Chapter Introduction Interview Overview Restaurant Management System (RMS) Components Other POS Functionality

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    12 Decreased Service Time Order Accuracy Security of Cash Transactions and Internal Auditing Functions Reduced Training Burden Labor Scheduling and Performance Control Analytics The Kitchen Management System Kitchen Management System (KMS) Inventory and Production Management Inventory Levels and Consumption Purchasing Theft Benefits of Inventory and Menu Management Reservations and Table Management Interfaces Self-Ordering/Online Ordering Proprietary versus Nonproprietary RMS Payment, Security, and Compliance Summary Case Study and Learning Activity Key Terms Chapter Questions CHAPTER FIVE – Hotel and Resort Technology Chapter Objective Two Questions Addressed in the Chapter Learning Objectives Chapter Introduction Interview Overview The Guest Lifecycle

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

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

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

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

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    17 The Importance of Infrastructure 138 Summary 139 Case Study and Learning Activity 139 Key Terms 140 Chapter Questions 140 CHAPTER TEN – Virtual Reality and Augmented Reality Applications for the Tourism and Hospitality Industry 141 Chapter Objective 141 Learning Objectives 141 Chapter Introduction 141 Interview 142 Overview 143 VR Definition 144 AR 144 Technologies for VR and AR 145 Overview of 3D Scanning Technology 145 Types of 3D Scanning Technologies 145 360-Degree Video for Quick VR/AR Scene Generation 146 VR/AR HMD Technologies 147 Tethered VR Headsets 147 Wireless VR Headsets 148 Wireless AR Headsets 148 VR/AR in Tourism and Hospitality: Rationales and Applications 149 Effective Policy Planning and Management 149 Effective Entertainment Tool 149 Education Tool 149 Virtual Attractions at Effective Cost 149 Interactive Dining Experience 149 Easy Translation Capabilities 149 Real-Time and Reliable Navigation 150

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

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

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    20 Chapter by Chapter Suggestions for the Instructor Chapter One – Introduction and Competitive Advantage Chapter Overview Money aside, the reality is that for most careers, IT is an integral and necessary component. Thanks to the convergence of various forms of technology (e.g., computers, software, and cloud technology), the rise in electronic business (e-business), and a growing number of enterprise-wide technology initiatives, technology is a critical aspect of almost any job, disrupting functional silos and creating the need for boundary spanners. Simply put, IT is changing everything—from guest expectations and needs to industry structure to how we perform our jobs and what skills we will need to be successful. 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 hospitality manager or executive. Management guru Peter Drucker often stated that everyone in the firm is responsible for marketing the firm and ensuring customer satisfaction. In a similar vein, 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 act like a chief information officer (CIO). One cannot make marketing decisions in a vacuum without in-depth knowledge about the capabilities and limitations of IT. Global distribution, supply chain management, customer relationship management (CRM), electronic commerce (e-commerce), digital marketing, social media, customer segmentation, revenue management, and so on are all underpinned by IT applications. Thus, a good marketer, by default, must be well versed in IT. The same could be said for every other discipline, including human resources, finance and accounting, management, and operations. You can’t make decisions about the business without using IT (or information generated from IT systems) and without factoring in IT considerations. Therefore, every manager or executive must strive to understand how to use IT, see its strategic potential, and recognize its limitations so as not to be bamboozled by it, led astray, or be constrained by the limitations of the firm’s IT infrastructure. While hiring experts or outsourcing may be a viable approach and help reduce the amount of expertise you must have in this area, it does not completely absolve you from having proficiency and a solid understanding of what technology can and cannot do and what questions to ask. Like anything, understanding and using IT require investment (of both time and money), commitment, and diligence. Students’ knowledge in this area will reduce their dependence on others and improve their ability to ask the right questions so they can properly lead their firms. Chapter Objectives At the end of this chapter, students will gain an understanding of the technology they will use in their career and competitive advantage.

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