Importance of Literature Review in Research

CHAPTER 2 REVIEW OF RELATED LITERATURE AND STUDIES One of the significance step is research project is conducting a literature review. Through this chapter, the readers can familiarize to the study of researcher. The related and previous studies presented in this chapter will give the readers and future researchers, an idea of the proposed system of the proponent. The proponent selected and reviewed these studies and previous works to provide information to the readers 2. 1 Related Literature The researcher gathered information related to their study to prove the effectiveness of the proposed system.

This information was based on the knowledge of the expert which served as guide to the researcher to pursue the study. 2. 1. 1 Foreign Literature A computer reservations system CRS is a computerized system used to store and retrieve information and conduct transactions related to air travel. Originally designed and operated by airlines, CRSes were later extended for the use of travel agencies; major CRS operations that book and sell tickets for multiple airlines are known as global distribution systems (GDS).

Airlines have divested most of their direct holdings to dedicated GDS companies, who make their systems accessible to consumers through Internet gateways. Modern GDSes typically allow users to book hotel rooms and rental cars as well as airline tickets. They also provide access to railway reservations in some markets although these are not always integrated with the main system. [http://en. wikipedia. org/wiki/Computer_reservations_system] Since computer power was the critical resource, efficiency of processing became the main goal.

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Emphasis was placed on automating existing process such as purchasing or paying, often within single department [Jeffrey A. Hofer on Modern System Analysis and Design (1996). ] Automation is the use of control systems (such as numerical control, programmable logic control, and other industrial control systems), in concert with other applications of information technology (such as computer-aided technologies), to control industrial machinery and processes, reducing the need for human intervention.

In the scope of industrialization, automation is a step beyond mechanization. Whereas mechanization provided human operators with machinery to assist them with the muscular requirements of work, automation greatly reduces the need for human sensory and mental requirements as well. Processes and systems can also be automated. Hotel Management system is an in-house Windows based application used by businesses to automate their day-to-day operations such as room bookings, reservations, check-in or check-out.

Hotel reservation software is developed for suitable works of the following types of accommodation like Hotels, Motels and Guesthouses, University accommodation letting, Cottages, Villas, Cabins, Hostels or Any other room booking which is to be managed on a day-to-day basis. [http://www. hotelsoftwarepro. com/] The propose system uses database which database is a system for quick search and retrieval of information from a database. The Database Management determines how data are stored and retrieved.

It must address problems such as security, accuracy, consistency among different records, response time, and memory requirements. These issues are most significant for database systems on computer networks. Ever-higher processing speeds are required for efficient database management. Relational DBMS, in which data are organized into a series of tables (“relations”) that are easily reorganized for accessing data in different ways, are the most widely used today. [http://www. answers. com/topic/database-management-system] . 1. 2 Local Literature A computer makes doing most almost easier, since it is an electronic device. It operates a high speed of electric flow which is measured in trillions of a second. These high-speed of results are also accomplished with high accuracy. Since the computer is programmed correctly and incoming data is error free. The accuracy of the output is almost guaranteed that can carry out the sequence of the operation without human intervention. “Computer and Word Processing”, Febes A.

De Guzman and Ines Alcantara (1997) Information Technology and Electronic Commerce Council (ITECC) was created to use the necessary and available resources of the public and private sectors. Thus Philippines was coined and defined as an electronically-enabled society where the citizens live in an providing quality education, efficient government service, greater source of livelihood, and ultimately a better way of life. Cebu City (Central Visayas)-citing bullish tourism prospect, Waterfront Philippines Inc. WPI) will invest between 59 million to 60 million pesos (US$ 983,690 to 1. 8 million at P50. 829=$1) improve operation efficiency and profitability. By the end of this year, WPI executive vice president Rexlon T. Gatchalian said that envision Waterfront Cebu City Hotel to be only fully computerized five-star hotel in the country. He said: “In this age of information, we believed the service and industry should join foray we intend to become fully computerized by the end of this year other hotels are doing IT piece by piece. ”

A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms and air conditioning or climate control. Additional common features found in hotel rooms are a telephone, an alarm clock, a television, and Internet connectivity; snack foods and drinks may be supplied in a mini-bar, and facilities for making hot drinks.

Larger hotels may provide a number of additional guest facilities such as a restaurant, a swimming pool or childcare, and have conference and social function services. Hotel rooms are usually numbered (or named in some smaller hotels and B&Bs) to allow guests to identify their room. (Http ://en . wikipedia. org/wiki/Hotel) This paper develops a conceptual framework that describes the impact of information technology (IT) on service management and transaction costs in full service hotel firms.

It details how IT would help such firms to lower operations-related transaction costs. Further, the underpinnings of how IT would impact service management in full service hotel firms is discussed more specifically from a customer satisfaction point of view while focusing on two aspects, i. e. managing customer delight and the customer’s role as a co-producer. Propositions are developed and a discussion on the impact of IT on firm profitability from a transaction cost perspective ensues while concluding with managerial implications. (h ttp://www. sci encedirect. com/science? )

Information technology can provide hospitality firms with a sustained competitive advantage, provided the technology complements operations. Based on interdisciplinary research findings with regard to the sustainability of IT-enabled competitive advantage, this article provides a framework that can help both hospitality scholars and managers formally analyze existing and proposed IT-dependent strategic initiatives. The chief element in achieving a competitive advantage is to identify the drivers of response lag, which is the time it takes for competitors to imitate an IT initiative–if they are able to do so.

The drivers can be grouped into one of the following four barriers to erosion of competitive advantage: (1) IT-resources barrier, (2) complementary-resources barrier, (3)IT-project barrier, and (4) preemption barrier. ( http://www. entrepreneur. com/tradejournals/article/184324458. html) 2. 2 Related Studies In order to gather more information that will serve as guidelines, the researcher conducted some research through some documents available and from undergraduate thesis that may help much in the proving of studies. 2. 2. 1 Foreign Studies

According to Psoinos, Anna, “the role of the computer-based information systems (IS) in manufacturing organizations encourages employee empowerment. The central proposition of the research is that information systems are not able to empower employee, but the IS can support the new work practices created by empowerment, defending on the specific organizational circumstances”. Marshall Management, Inc. is a mid-sized national hotel management company which prides itself on its ability to adapt to a diversified spectrum of hotel properties while being recognized by its franchisors, investors and clients as operations intensive.

We are especially proud of our successes in taking over non-performing loans, revitalizing the hotels and, consequently, selling the properties for an appreciated value. Established in 1980 by Charles L. Marshall, CHA, Marshall Management, Inc. Operates hotels over a multi-state area including roadside, resort, airport and metropolitan high-rise properties. These include numerous franchise types and independents. Our expertise include hotel management operations, fiscal and accountant service, development, insurance programs, hotel sales and marketing, advertising, feasibility studies, asset management, consulting and lender workouts.

Our mission to profitability, for both ourselves and for ownership, operates hotels which are primarily located in the Mid-Western, South-Western and Eastern portions of the United States. We will expand through third party management contracts and the development of full and limited service hotels. When we find a reasonable return on a hotel investment, we will seek opportunities available on Wall Street or with various financial groups. When appropriate for Marshall Management Inc. to emerge with or purchase another management company, the feasibility of such a union will be thoroughly investigated and pursued.

There is growing evidence that hospitality ventures are not using information technology (IT) strategically and are not reaping benefits commensurate with the substantial sums of money being expended on IT. As an example, a recent study by McKinsey concluded that after spending $7. 6 billion in IT between 1995 and 2000, the lodging industry saw no increase in revenue (after controlling for the effects of the booming economy) and no tangible increase in productivity (Brown and Stange 2002).

Yet significant case evidence suggests that IT has had and continues to have the potential to enable value creation and sustained differentiation in the hospitality industry. For example, Ritz-Carlton has traditionally been able to offer unmatched personalized service using a centralized repository named CLASS (Customer Loyalty Anticipation and Satisfaction System) that enables each property in the chain to collect and retrieve personal preferences of each guest (Klein, Sasser, and Jones 1999).

More recently, Harrah’s Entertainment has received significant attention for its business intelligence (BI) initiative (Lal and Carrolo 2002)–a cornerstone of its considerable financial success. ( h ttp://www. entrepreneur. com) Information systems are sociotechnical systems that include IT, processes, people, and organizational structure (Bostrom and Heinen 1977a, 1977b). All four components are necessary to deliver the information-processing functionalities the organization needs. More important, any change in one component (e. . , a new software program, a change in organizational structure from property-focused to brand-focused) will affect and require adjustment in each of the other components. In short, any change has systemic effects (O’Hara, Watson, and Kavan 1999). Using two unique, independent samples of U. S. hotels, this study examines the utilization of information technology (IT) in all hotel sectors, from deluxe to budget, to reveal strategic differences and similarities. Overall, the findings suggest that the U. S. odging industry has focused on employing technologies that improve employee productivity and enhance revenue but has not given strategic priority to technologies designed to improve guest services. The hotel sector, lodging type, size/complexity of the property, and independent versus chain affiliation influenced the number and type of technologies adopted. Luxury and upscale hotels adopted more IT than economy and budget hotels. Similarly, IT development was greatest for certain lodging types such as convention hotels, conference centers, and casinos, and lowest for other types, such as motels and bed-and-breakfasts.

Chain-affiliated properties typically adopted more technologies than independent hotels. (http://jtr. sagepub. com/content/39/2/192. abstract) This article discusses applications of technology to the hospitality environment. Front office information processing systems such as reservations, guest accounting and room management systems are discussed, as well as their impact on the efficiency of operations. Effects of developments in telecommunications and, more recently, teleconferencing on the lodging (hotel) industry are discussed.

Technology benefits, such as energy management and the safety and security of guests and their property, are discussed. This article also clarifies the issues that must be considered in the application of new technology and examines future trends. (http://www. sciencedirect. com/science? _ob=ArticleURL=B6V9R-45P18SD-MN=10=12%2F31%2F1983=1=high=search=search=d==c=1468917908=google=C000050221=1=0=10=d319845ccabb580464d9dfb0dd352779=a) 2. 2. Local Studies “Hotel computerized made a tremendous satisfaction for the employees, most especially to the clients. The system was a great help, it saves time and effort regarding hotel’s activities especially the front desk officers and it ensures speed, accuracy, and reliability in calculating the customer’s bills and in generating the summary report of the hotel. ” According to the study n “An On-line Information and Hotel Registration System” which made by Lopez, Mayoralgo, Miranda, is one of the change emerged in It as the public surf the internet they will see a different form f acquiring facts and detailed information to make hotel more connected to their clients and researchers would build on-line registration. Today’s long haul travelers require destination information before they travel to a destination, and also while they are at the destination. The increasing complexity of the tourism industry and the increasing sophistication and diversity of travelers, makes access to this information both more important and more difficult, especially for long haul destinations.

Indeed there are substantial search costs for travelers to identify products in long haul destinations. More accessible information sources on a destination’s facilities can reduce the substantial search costs that are incurred in the planning and organization of a long haul trip, and thereby facilitate market transactions in the destination. (Pauline J. Sheldon, (1993) “The impact of computer reservation systems on long haul travel”, Tourism Review, Vol. 8 Iss: 4, pp. 31 – 35) 2. 3 Difference between the Existing System and the Proposed System Both the proposed and the existing systems are intended to be used in the Hotel Management System for ALL Season Family Hotel with SMS Technology. The existing system is the basis of the proposed system which will going to computerize. Both have a Reservation process, Reports and data regards to the reservation process in check in and check out.

The researchers will include the data for check in, check out, generating of reports on summary of the customer and other report also implied. The difference between the existing and the proposed system is that existing system reserving process is slow, more error will came out, time consuming and it is not secured. While the proposed system is a better way, it is fast, reliable, accurate and error free if not all, it also a user friendly system and have database where information is store that makes the proposed system secured than existing system.