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

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

Terminology Database Field Record 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 07458

Linking Tables: Keys Primary Key Foreign 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 07458

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 07458

Concepts Data Extraction Data Manipulation Data Integrity File Locks 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 07458

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 07458

3. 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 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 Not just a frequent guest or loyalty program. This is only a component of CRM Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey 07458

Paradigm Shift From To Mass Market Mass Customization 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 07458

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

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