Systems

Managing information overflow

With easy availability of precise and concise information, Neeti Mehra finds out that hotels are deploying Management Information Systems to give them the edge for constructive decision-making, and subsequently growth

In a market driven by technology, reams of disorganised data and misinterpreted information would amount to professional harakiri.

This is especially true for hospitality, where a single misinformed manager's decision can drive away guests straight into the arms of mushrooming competition. To prevent such an occurrence, managers are now looking at Management Information Systems (MIS) as a timely decision-making tool within the organisation to optimise operations and drive growth.

Managed, informed and systematic

MIS today has distanced itself from its traditional, narrow connotation to encompass a suite of technology-driven solutions that assist in decision making, be it for property management, sales and marketing, quality and HR management, revenue, accounting, and mixed-use condo/hotel room management, CRM, apart from a host of other avenues.

Elaborating on this, Ratnesh Verma, area director (South Asia) at Hyatt International Hotels & Resorts, opines, "Initially, MIS systems were merely reactive systems that provided information and were essentially simplistic reporting packages. Today, decision support systems are a broader term and technology actually assists us in better decision making by thoroughly analysing information and trends to ultimately build efficiencies - a reality the industry is turning to."

As per the Indian Hotel Industry Survey 2004-2005 conducted by Federation of Hotel & Restaurant Associations of India along with HVS International, the percentile of usage of MIS across hotels stands at a healthy 83.4 per cent. It is the larger and chain affiliated hotels in the metros that are leading the way with this indispensable management tool. Figures from the survey reveal that the highest utilisation is in five-star hotels, by category, but it is the chain-affiliated hotels that are making the most of MIS, with 92.9 per cent of respondents utilising it.

Optimising, adapting

Today MIS does not restrict itself to plain vanilla usage; they can be deployed for standalone hotels as well as multi-brand hotel chains. However, the usage for the former is still not as extensive although this situation is changing. Sanjay Narang, president of Mars Restaurants, which owns the boutique style Gordon House hotels, is planning to implement a comprehensive MIS for project scheduling, yield management, F&B revenue, sales and reservations, and real time management information, in addition to connecting the CRS to the Internet with payment gateways in place.

Naresh Chandnani, VP (sales & marketing), IHHR Hospitality, uses the reports to see if the hotel is on track with respect to its sales strategy. "We do an analysis of where our clients are coming from, analyse average spends, etc," he explains. This strategy enables hotels to pinpoint which country delivers in terms of sales, marketing and PR investments, after judging the number of guest arrivals and their average spends. They also use MIS to rectify slow moving packages and chalk out marketing strategies for the lean and heavy seasons.

A critical element of these systems is also CRM for evolving service standards, and phasing out unpopular items, plus keeping a check on errant staff. Muthukumar, manager (MIS) at Concept Hospitality ,explains the system the group devised nearly seven years ago. "While most reports are statistical, this is a qualitative report where guest comments are keyed in to generate their satisfaction index," he says. This report is used to ascertain trends, services and practices that need to be phased out, simultaneously building up database.

This is not all. MIS has multiple benefits. Elaborating on this, Pradeep Kalra, VP (sales & marketing), Sarovar Hotels, says, "MIS helps in tracking and studying individual performances, team performances, city performances, city trends, etc."

To keep these systems updated, retrofitting the existing system is a necessity in the changing market scenario, and in some cases, replacement. Hyatt International has outlined technological advances over the next couple of years to enhance guest service and build greater efficiencies in support functions. Verma adds, "This includes upgradation of property management systems as well as point-of-sale system, revenue management system, human resources and talent tracking system."

Maximum benefit

While detailed reports are half the job done, the other half is solely dependent on human interpretation. H A Mishra, MD of Foodesign Hotels & Resorts Systems, stresses that it is the calibre of the user, which can make the difference in the quality of decision making. "It is pure experience, competency and education that can make the most of MIS reports. Information is only as good as its analysis."

Consequently, the thrust is on transparency and distribution of reports to every centre is imperative. Muthukumar evinces that “Concept generates three critical reports across nearly 17 properties - daily sales report, monthly revenue report and the profit and loss account, which is a snapshot rather than a post-mortem, so that corrective action can be taken at the beginning of each month rather than the end." Using efficiency indicators, the reports help stymie any roadblocks that may be encountered, either in revenue streams, material management or departmental contributions.