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

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 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

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

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

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

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 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

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

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 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

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

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

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

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

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

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 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

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

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

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 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

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 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

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Additional Resources - e-business -politics and business