1. Technology Strategies for the Hospitality Industry© 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Databases Chapter 9

2. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Interview Robert S. Bennett Senior VP Property Systems and Service Pegasus Solutions CRM not the same as frequent guest and loyalty programs CRM needs all data available

3. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Interview (cont.) Data must be up to date Data must be readily available to all

4. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 1. Introduction CRM can’t exist without a database Databases are playing an ever increasingly important role in the information age

5. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 2. Database Basics Flat Files vs. Database Types of Databases  Simple or Flat  Hierarchical  Network  Relational  Object Oriented

6. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Database Management Systems (DBMS) Key Functions:  Links  Storage, Updating, and Retrieval of Data  Data Integrity, Security, and Control  Coordinate Access  Data Reliability – Backup and Recovery Logical View vs. Physical View

7. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 DBMS Front Office (PMS) Reservations (CRS) F&B (POS) Customer Database Name Address Job Title Club Member Dates of Stay Last Stay # of Stays Amenities Charges Etc.

8. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Terminology Database  Table of data  Relational database is a series of data tables Field  Piece of information  Column Record  All pieces of information for a particular individual or observation  Row

9. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Linking Tables: Keys Primary Key  Unique Identifier  Composite or Concatenated Foreign Key  Primary Key of Related Table (Connector)

10. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Objectives Store tremendous amounts of data Be able to retrieve and process data Simplify data entry (Linking Table) Reduce data redundancy

11. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Concepts Data Extraction  Structured Query Language (SQL) Data Manipulation Data Integrity File Locks “Deadly Embrace” or Deadlock

12. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Storage Database Server Distributed Databases Data Warehousing  Data Mart

13. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 3. Database Usage Profile Data Mining  Profiling  Clustering  Cluster Mapping Online Analytical Processing (OLAP) Pre-Emptive Measures: Trigger

14. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Customer Relationship Management (CRM) All customer touch points All staff trained on its importance and gather data when possible Access given when and where appropriate Staff is empowered to “react” to data Data must be centralized or warehoused

15. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Paradigm Shift From Mass Market Product Focus Brand Loyalty Satisfaction = Repeat To Mass Customization Customer Focus No Loyalty Satisfaction = Repeat

16. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Challenges Departmental control (Political) Long payback period Different technologies Expensive

17. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Database Concepts: Microsoft Access Data is Automatically Recorded (Saved) Design View - Structural Changes One-to-Many Relationship Referential Integrity Form Query Report Macro and Modules Web (Pages) Wizard

18. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 4. Summary Databases provide needed structure Properly used CRM can indeed increase revenue Disparate databases and the ownership of the customer data continue to be problematic for the industry

19. Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458 Additional Resources www.darwinmag.comwww.darwinmag.com - e-business www.economist.com -politics and business www.economist.com