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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

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