CU-BSC.TTM-SEM-IV-Automation in aviation and tourism Sector-Second Draft

UNIT 3BILLING SETTLEMENT PROCESS STRUCTURE 3.0 Learning Objectives 3.1 Introduction 3.1.1 Billing vs Settlement 3.2 Benefits of Billing Settlement Process 3.3 Process involved in Billing Settlement Process 3.3.1 Sequential Steps 3.3.2 Mechanism and Working of Billing and Settlement Process 3.4 BSP Agent/Airline relations 3.4.1 Roles and Responsibilities of BSP Manager 3.4.2 Participation in a BSP 3.4.3 Responsibilities of a Data Processing Centre 3.5 Conclusion 3.6 Summary 3.7 Keyword 3.8 Learning activity 3.9 Unit End Questions 3.10 References 3.0 LEARNING OBJECTIVES After studying this unit students will be able to  Describe the concept of Billing Settlement Process (BSP)  Explain Concept of Billing Settlement Process in Aviation and Tourism industry  List Rules and Objectives in Billing Settlement Process 3.1 INTRODUCTION A billing and settlement process (BSP) (sometimes referred to as Bank Settlement Plan) is an electronic billing system designed to facilitate the flow of data and funds between travel agencies and airlines. The advantage of such an intermediary organization is that instead of 51 CU IDOL SELF LEARNING MATERIAL (SLM)

each travel agency having an individual relationship with each airline, all of the information is consolidated through the BSP. 3.1.1 Clearing vs Settlement Clearing and settlement are two important processes that are carried out when executing transactions in financial markets where a range of financial securities can be bought and sold. Clearing and settlement allow clearing corporations to realize any rights obligations, which are created in the process of securities trading, and to make arrangements so that the funds and securities can be transferred accurately in a timely, efficient manner. The article clearly explains how each of these functions falls into the process of securities trading, explains the relationship between the two processes, and highlights the similarities and differences between clearing and settlement. What is clearing? Clearing is the process of settling claims of one set of financial institutions against the claims of other financial institutions. The process of clearing occurs in between the time a trade is executed and a settlement is made. Once a trade is executed or completed in a financial market, the clearing agency will be notified, who will then carry out the process of clearing the transaction. Clearing is similar to bookkeeping, where the clearing house updates the databases by matching the buyer and seller of the transaction thereby confirming that both parties are in agreement to the terms of trade. Next the clearing house will engage in a process known as ‘netting.’ Because financial markets see a significant number of trades and transactions in a single day, the clearing house uses an automated mechanism to set off buy and sell orders, resulting in only a few transactions needing to be settled. The clearing house will notify the parties to the transaction and make arrangements to transfer the monies once the buyers and sellers have been appropriately matched and netted. What is Settlement? Settlement is the step that comes in last to the process of securities purchasing. At settlement, the buyer will complete his side of the transaction by making the necessary payments to the seller, and the seller will in turn transfer the securities purchased to the buyer. Settlement will be completed when the clearing corporation transfers ownership of the securities to the buyer and once the funds are transferred to the seller. Stocks and bonds are settled after 3 days from the date of execution; government securities, options and mutual funds settle one day after the execution date and certificates of deposit are usually settled on the same day as the execution. What is the difference between Clearing and Settlement? Clearing and settlement are both processes carried out by a clearing house in the process of securities trading. It is important that a strong clearing and settlement system is set in place to maintain the smooth securities trading operations within financial markets. Clearing is the 52 CU IDOL SELF LEARNING MATERIAL (SLM)

second part of the process which will come after the execution of the trade and before the settlement of the transaction. Buyers and sellers are matched and confirmed during clearing, and transactions are netted down (a group of purchase and sell transactions) so that just a few transactions must be completed. The clearing house will transfer ownership of the securities purchased to the buyer and transfer monies in payment to the seller at the end of the procedure, known as settlement. The main advantage of the clearing and settlement system is the security of the transactions. Since the process is conducted by a clearing corporation, the buyers and sellers can ensure that the delivery of securities and funds will occur in a timely and accurate manner. Since its launch in 1971, IATA’s billing and Settlement Plan (BSP) has successfully facilitated the distribution and settlement of funds between travel agents and airlines safely and securely. However, the rules for the BSP were established in an era of paper ticket stock, brick-and-mortar travel agencies, limited payment methods and a highly regulated airline industry. These rules no longer address the diverse and complex needs and risks of airlines and travel agents today Concept BSP is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow for BSP Airlines. A truly worldwide system: there are BSP operations in some 180 countries and territories. The system currently serves more than 370 participating airlines with an on-time settlement rate of 99.999%. In 2017, IATA's BSP processed $236.3 billion. The BSP Manual for Agents forms part of the Passenger Sales Agency Agreement and contains the basic rules and procedures for participation in a BSP. By virtue of this Agreement, all approved locations of IATA Accredited Agents are bound to apply such procedures in countries where a BSP is implemented. The BSP reduces Airline distribution costs and at the same time provides Agents with a cost-effective system for selling the products and services of those Airlines that elect to participate in the BSP. The existence of a BSP enables Airlines and Agents alike to save on administrative overheads, whilst streamlining their services to the customer. It provides more time for BSP participants’ selling activities since the administrative burden on management is greatly reduced by the simplification of the issuance, control and reporting of sales and settling of money dues. Definition “The Billing and Settlement Plan (BSP) is a system designed to simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Agents on behalf of BSP Airlines” 53 CU IDOL SELF LEARNING MATERIAL (SLM)

In Japan, the first BSP designed by IATA was launched in 1971. BSP is now a global system that spans over 170 countries and territories. In 2010, the BSP network included more than 55,000 agents and 400 airlines, resulting in gross sales of more than US$ 221 billion. The usage of the impartial electronic Standard Traffic Document is a major aspect of the BSP (STD) 3.2 BENEFITS OF A BILLING SETTLEMENT PLAN (BSP) Simplification ➢ Agents issue one sales report and remit one amount to a central point ➢ Airlines receive one settlement covering all agents ➢ Simplifies and reduces work through the use of electronic ticketing on behalf of all BSP Airlines ➢ Agents’ sales are reported electronically Savings ➢less resources required for billing and collection ➢ Electronic distribution of billing reports, and generation of debit/credit memos (ADMs/ACMs) via BSP link Enhanced Control ➢ Increased financial control thanks to centralization and grouping ➢ Consolidated document flow, permitting accelerated quality controls ➢ Overall process monitoring by a neutral body Automation Potential ➢ Automation of back-office functions is rendered by a single accounting system. ➢ BSP enables and encourages the use of the most modern automated ticket issuing devices, thereby economizing in time and money, whilst presenting the customer with an attractive and legible ticket. For the Agents ➢the advantage of for the agents: ➢ Data Processing Centre (DPC) 54 CU IDOL SELF LEARNING MATERIAL (SLM)

➢provides a set of Standard Administrative Forms (SAFs) to be used on behalf of all BSP Airlines ➢ Provides access to over 400 Airlines participating in the BSPs worldwide using neutral electronic Standard Traffic Documents ➢provides one supply source of ticket numbers for electronic tickets ➢reduces overhead costs by replacing multiple sales reports with a single point of contact - a central BSP ➢ Simplifies remittance procedures by establishing one point for Agents ‘payments ➢ Simplifies staff training through courses organized locally specific to BSP procedures 3.3 PROCESS INVOLVED IN BSP “The Billing Settlement Plan (BSP) is a standardized system for airlines and agents, providing them with a simplified approach to the selling, reporting and administration of passenger air transportation. It is established under the general jurisdiction of the Passenger Agency Conference, delegated to the BSP Committee (BSPC) and coordinated by the Agency Administrator/Plan Management” 3.3.1Sequential Steps 1. The Agent’s TSP transmits the information regarding the issued tickets daily to theDPC. Once the DPC receives the data from the TSP, the DPC 2. Processes all relevant data and produces an ‘Agents Billing Analysis’ for each Agent. This analysis is compiled from the information of one or more reporting periods. 3. Forwards to each BSP Airline an analysis of sales made by Agents on its behalf. The Agent makes a single net periodic remittance covering all its BSP transactions, made on behalf of all BSP Airlines. The BSP preferred method of payment is by electronic funds transfer (EFT) or direct debit (DD). 4. The Accounts Department of each BSP Airline audits incoming data and addresses accounting memoranda 3.3.2 Mechanism and working of BSP ➢ Receives a range of electronic ticket numbers for ticketing from the Ticket System Provider (TSP) ➢ Receives Ticketing Authorities from Airlines allowing the Agent to issue tickets on Their behalf 55 CU IDOL SELF LEARNING MATERIAL (SLM)

➢ Receives access to BSP link including instructions on the issuance of electronic Administrative forms such as Refund Request and Virtual MPDs 3.4 BSP — AGENT/AIRLINE RELATIONS A BSP Manager represents IATA Management in each area of BSP operation. The Manager ensures that adequate assistance, guidance and information at the local level is available to all parties concerned in the BSP and that proper control is exercised. The administrative simplification offered by the BSP permits Airlines and Agents to devote more time to marketing activities. Agents continue to have direct access to BSP Airlines at all times. On a day-to-day basis, Agents may contact the local BSP office or make an enquiry through the Customer Services web site. 3.4.1 Roles and Responsibilities of BSP manager: 1. Coordination 2. Informs the Agency Administrator of irregularities and defaults. 3. Informs the Agents regarding Customer Service procedures 4. Manager advises Agents 5. Notify Agents of a temporary change to established BSP procedures. 6. Provides Agents with access to BSPlink and instructions on how to use the system 3.4.2 Participation in a BSP 1. Airlines 56 2. Clearing bank 3. Data processing centre (DPC) 4. Electronic ticketing system provider (TSP) 5. General sales agents (GSAS) and airport handling agents (AHA) 6. IATA accredited agents 7. Other travel and tourism industry sectors 3.4.3 Responsibilities of Data Processing Centre (DPC) 1. Capturing, recording and validating the data supplied by the TSPs 2. Controlling the timely receipt of data from the TSPs CU IDOL SELF LEARNING MATERIAL (SLM)

3. Monitoring and identifying any discrepancies 4. Notifying BSP Airlines and the BSP Manager of the number of transactions processed and providing them with statistical data as agreed in the contract 5. Notifying the Clearing Bank and the BSP Manager of amounts due by Agents 6. Preparing and dispatching billings to Agents and BSP Airlines through BSPlink 7. Producing a Hand-Off Tape (HOT) or data transfer in accordance with the Data Interchange Specifications Handbook (DISH) 8. Reporting discrepancies. 3.5 CONCLUSION The Billing Settlement Plan (BSP) is a standardized system for airlines and agents, providing them with a simplified approach to the selling, reporting and administration of passenger air transportation. The BSP Manual for Agents forms part of the Passenger Sales Agency Agreement and contains the basic rules and procedures for participation in a BSP. By virtue of this Agreement, all approved locations of IATA Accredited Agents are bound to apply such procedures in countries where a BSP is implemented. The BSP reduces Airline distribution costs and at the same time provides Agents with a cost-effective system for selling the products and services of those Airlines that elect to participate in the BSP. The existence of a BSP enables Airlines and Agents alike to save on administrative overheads, whilst streamlining their services to the customer. It provides more time for BSP participants’ selling activities since the administrative burden on management is greatly reduced by the simplification of the issuance, control and reporting of sales and settling of money dues. BSP has significantly decreased the waiting time and simplified the process of Airline Ticketing by bring Airlines, Ticket Booking Agents, Associated Banks and Online travel websites under one umbrella. It will take care of any pending payments and associated data that is easily accessible for analysing and comparing purposes. In order to avoid empty seats, some airlines sell seats on other flights. This would be a mutual agreement amongst airlines to make the most money from a single flight. It also helps to reduce losses, and such seat sharing booking and management will be handled by the Billing and Settlement Plan, which provides airlines and travel brokers with a simpler, faster, and more manageable service. Even in Hotel industry using of BSP ensures faster upgrade of servers about the information of booking and cancellation of tickets that takes a lot of time for manual upgradation by people. 57 CU IDOL SELF LEARNING MATERIAL (SLM)

3.6 SUMMARY  A billing and settlement process (BSP) (sometimes referred to as Bank Settlement Plan) is an electronic billing system designed to facilitate the flow of data and funds between travel agencies and airlines.  The advantage of such an intermediary organization is that instead of each travel agency having an individual relationship with each airline, all of the information is consolidated through the BSP.  Since its launch in 1971, IATA’s billing and Settlement Plan (BSP) has successfully facilitated the distribution and settlement of funds between travel agents and airlines safely and securely.  However, the rules for the BSP were established in an era of paper ticket stock, brick- and-mortar travel agencies, limited payment methods and a highly regulated airline industry.  These rules no longer address the diverse and complex needs and risks of airlines and travel agents today  BSP is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow for BSP Airlines.  BSP is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow for BSP Airlines.  The BSP reduces Airline distribution costs and at the same time provides Agents with a cost-effective system for selling the products and services of those Airlines that elect to participate in the BSP.  The existence of a BSP enables Airlines and Agents alike to save on administrative overheads, whilst streamlining their services to the customer.  Simplification, enhanced control, Automation potential, reducing overhead costs are few of the advantages of Billing and Settlement Process 3.7 KEY WORDS  Clearing is the process of settling claims of one set of financial institutions against the claims of other financial institutions 58 CU IDOL SELF LEARNING MATERIAL (SLM)

 Settlement is the step that comes in last to the process of securities purchasing. At settlement, the buyer will complete his side of the transaction by making the necessary payments to the seller, and the seller will in turn transfer the securities purchased to the buyer.  Billing and settlement process (BSP) (sometimes referred to as Bank Settlement Plan) is an electronic billing system designed to facilitate the flow of data and funds between travel agencies and airlines.  Data Processing CentreData processing occurs when data is collected and translated into usable information. Usually performed by a data scientist or team of data scientists at a centre, it is important for data processing to be done correctly as not to negatively affect the end product or data output.  Passenger Service AgentPassenger service agents handle administrative procedures for passengers before and after a flight, such as reserving tickets, releasing boarding passes, and accepting luggage. Because this role involves significant interaction with passengers, passenger service agents play a major part in an airline’s customer service function, and they must be diplomatic and respectful in all situations, whether they’re asking passengers to comply with airline rules or explaining flight information. 3.8 LEARNING ACTIVITY 1. Examine the impact of COVID 19 on Airline travel ___________________________________________________________________________ ___________________________________________________________________________ 2. Examine the role of E commerce in the Airline Industry ___________________________________________________________________________ ___________________________________________________________________________ 3.9 UNIT END QUESTIONS A.Descriptive Questions Short Questions 1. How did IATA start Billing and Settlement Process? 2. What are the roles and responsibilities of a BSP Manager? 3. Who are the participating members/ agents in Billing and Settlement Process? 59 CU IDOL SELF LEARNING MATERIAL (SLM)

4. What are the responsibilities of Data Processing Centre? 5. What are the advantages for agents by employing Billing and Settlement Process in ticketing process? Long Questions 1. Define Billing and Settlement Process and mention its importance in Aviation and Tourism industry? 2. Discuss the procedure involved in Billing and Settlement Process? 3. What is the mechanism and working of Billing and Settlement Process? 4. Elaborate are the benefits of Billing and Settlement process? 5. Write about the concept, rules and objectives of Billing and Settlement Process? 6. Narrate the Sequential steps in Billing and Settlement Process? 7. Imagine you are airline agent, explain the advantages of using seat sharing from the perspective of a travel agent? 8. Discuss Simplification, Enhanced control and Automation Potential in Billing and Settlement process? B.Multiple Choice Questions 1. Billing and Settlement Plan was introduced by which of the following Tourism Organisation? a. ICAO b. IATA c. UNWTO d. ITO 2. Which of the following is not a participant of BSP? a. Airlines b. Clearing Bank c. General Sales Agent d. Hotel Booking Agent 60 CU IDOL SELF LEARNING MATERIAL (SLM)

3. How can ticket booking agent can contact BSP airlines? a. An agent cannot have direct contact with BSP airlines b. An agent should be in touch with contract broker who will have direct contact with BSP airlines c. An agent can have direct contact with BSP airlines at all times d. An agent could connect with BSP manager to get direct access with BSP airlines 4. What is the full form of TSP in Billing and Settlement Plan? a. Ticket Service Provider b. Transport System Provider c. Transport Service Provider d. Ticket System Provider 5. Which of the following is a responsibility of BSP MANAGER? a. Inform agents regarding customer Service Procedures b. Controlling timely receipt of data from TSP c. Notifying the clearing banks regarding due amounts d. Preparing and dispatching billings to agents Answers 1-b, 2-d, 3-c, 4-d, 5-a 3.10 REFERENCES Textbooks  Winston, Clifford, \"The Evolution of the Airline Industry\", Brookings Institution Press, 1995. ISBN 0-8157-5843-X. Cf. p. 61–62, Computer Reservation Systems. 61 CU IDOL SELF LEARNING MATERIAL (SLM)

 Wardell, David J, \"Airline Reservation Systems\", 1991. Research paper Websites  https://www.iata.org/en/services/finance/bsp/  https://www.jobhero.com/job-description/examples/aviation/passenger-service-agent  https://www.iata.org/en/services/finance/bsp/how-bsp-works/  http://www.sabretravelnetwork.com/home/solutions/travel_agency/getting_started/  https://www.iata.org/services/finance/bsp/Pages/index.aspx 62 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 4AIRLINES RESERVATION SYSTEM STRUCTURE 4.0 Learning Objectives 4.1 Introduction 4.2 Prospectus of Airways in India 4.3 History of Ticketing in Airlines 4.4 Airlines Reservation System 4.4.1 Importance and Benefits of ARS 4.5 Flight Information Display System 4.5.1 Components of Flight Information Display System 4.6 Summary 4.7 Key Words 4.8 Learning Activity 4.9 Unit End Questions 4.10 References 4.0 LEARNING OBJECTIVES After studying this unit, Students will be able to  Know about history of Airline Ticketing  Describe the Roles and Objectives of Airlines Reservation System  Understand the concept of Flight Information Display System (FIDS) at Airport  Importance and Benefits of Airline Reservation System 4.1 INTRODUCTION The definition of tourism is, “Activities related to persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”. 63 CU IDOL SELF LEARNING MATERIAL (SLM)

It involves people travelling to other places by means of Water in ships and boats, by road, by rail or even by Air in Aeroplanes. Although Waterways is the cheapest, due to convenience and easier availability most people use Roadways and Railways. And the costliest one is Airways which is fastest. The ticketing process involved in it is even more complex. Aviation in India According to the International Air Transport Association, India's aviation market, which is separated into military and civil aviation, is the world's fastest-growing aviation market (IATA). Bangalore, which accounts for 65 percent of the country's aviation manufacturing business, is its epicentre. The UDAN (regional connection scheme) of the government is propelling civil aviation forward. History of Aviation in India Ramayana and Mahabharata have mentioned about flying planes Tamil saint Bhogar mentions about flight in Bhoga Saptha Kandam “Vaimanika Sastra” was written by Pandit Subbaraya Sastry(1866 - 1940) based on ancient Sanskrit epics by Sage Bharadhwaja Based on it, Sanskrit Scholar Shivkar Bapuji Talpade has constructed and flown an unmanned airplane named Marutsakha in 1895 at Chowpathy Beach in Bombay which is 8 years before Wright brothers have flown first controlled flight in 1903. The Wright brothers' significance stems from the fact that it was the first manned flight over a distance of 120 feet, with Orville Wright becoming the first man to fly. However, Talpade's unmanned aircraft had previously flown to a height of 1500 feet, earning him the title of \"first designer of an aeroplane\" according to historian Evan Koshtka. After reaching a height of more than 1500 feet it landed safely without any damage. Between the hustle, Talpade was literally appreciated by Maharaja at that moment itself. It was Maharaja’s happiest moment for which he has been waiting for long period. The News was then published in the famous News Paper “Kesari”, the next day. After the news release in the media, few years later Talpade and Sastry were jailed by the British Government. Maharaja was warned literally. Few years later, after Talpade returned home, his wife passed away and he withdrew his research. It is said that after his death in 1916, his relatives sold a few of his key works to a few Germans. At an aviation expo in Vile Parle, a miniature recreation of Marutsakh was displayed, and Hindustan Aeronautics Limited has kept documentation connected to the experiment. Due to lack of any photographic evidence the news was dissolved and the credit of inventing an Airplane went to Wright brothers - Wilbur Wright and Oliver Wright 64 CU IDOL SELF LEARNING MATERIAL (SLM)

A Bollywood movie named Hawaizaada was made which twisted the facts of original story showing carefree guy assisting Sastry after heroine rejected him where as Shivkar Bapuji Talpade was Sanskrit Scholar and was married happily to his wife. 65 CU IDOL SELF LEARNING MATERIAL (SLM)

Civil Aviation in India On the occasion of the Kumbh Mela, the world's first airmail service was launched in India at Allahabad (Prayagraj) on February 18, 1911. As a result, India's civil aviation industry was born. On this historic day, Henry Piquet flew a Humber biplane from Allahabad to Naini, covering over a 10-kilometer distance. The first international flight to and from India was introduced in December 1912 over the route, London-Karachi-Delhi with the collaboration of Indian state air services and UK based imperial airways. Construction of airports in India started at Dum Dum in Calcutta, Bamrauli in Allahabad and Gillbert hill of Bombay in 1924. Separate Department of civil aviation was set up in April 1927 JRD Tata became the first person to be awarded with pilot license by Aeronautique International on behalf of aero club of India and Burma in Feb 1929 Tata Airlines became a division of Tata Sons Limited in 1932.It started Air Mail services on the Karachi, Ahmedabad, Bombay, Bellary, Madras routes on 15 October. In 1932 Urmila K. Parikh became the first Indian woman to get a pilot’s license India’s first aircraft, the Harlow trainer was rolled out for test flight in July 1941 66 CU IDOL SELF LEARNING MATERIAL (SLM)

In 1960 India entered the jet age with the introduction of Boeing 707-437 into the fleet of Air India and USA was connected to India for the first time by an Indian airline flight 1990 was a watershed moment for Indian civil aviation and Air India, as the airline set a Guinness World Record for the greatest evacuation operation by a single civilian airline, flying over 1,11,000 passengers from Amman to Mumbai in 59 days and 488 flights, just before the Gulf War broke out. 67 CU IDOL SELF LEARNING MATERIAL (SLM)

In Cochin, Kerala, the country's first private airport opened in 1998. With 6 international airports, 82 operating airports, 735 aircraft, 12 active scheduled airlines, and 121 non-scheduled operators, India is currently the world's ninth largest aviation market. This year, the number of air travellers in India is likely to surpass 50 million. The Airports authority of India manages a total of 125 Airports, including 18 International Airports, 7 Customs Airports, 78 Domestic Airports and 26 civil enclaves at Military Airfields Military Aviation in India The Indian Air Force, Indian Naval Air Arm and Army Aviation Corps are the air arms of the Indian armed forces. The Indian Air Force is the world's 4th largest air force with primary responsibility for securing Indian airspace and to conduct aerial warfare during a conflict. The IAF destroyed more than 29 Pakistani tanks, 40 APCs and a railway train during the Battle of Longewala in the 1971 Indo-Pak War besides a number of critical installations. The IAF created a world record by performing the highest landing of a C-130J at the Daulat Beg Oldi airstrip in Ladakh at the height of 16,614 feet (5065 meters). 68 CU IDOL SELF LEARNING MATERIAL (SLM)

UDAN-RCS scheme The Government of India launched the UDAN-RCS scheme in 2016 to increase the number of operational airports, number of operational airports with scheduled flights, number of routes, number of flyers, and reduce the cost of flying. The scheme increased the number of operational airports from 49 to 70 in the first round, which was awarded in April 2017, and several more rounds were awarded in December 2017, and many more rounds are planned later in 2018 and 2019 with number of operational airports expected to go to 150 or even more. FDI With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, 100% FDI under automatic route has now been allowed in Brownfield Airport projects. This move would also serve in further developing the domestic aviation infrastructure. Further, FDI limit for Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service has been raised from 49% to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval. For Non-Resident Indians (NRI's), 100% FDI will continue to be allowed under automatic route. However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49% of their paid up capital and subject to the laid down conditions in the existing policy. Increasing the FDI limit for these aviation services shall not only encourage competition by lowering prices but shall also accord choice to consumers. MRO 69 CU IDOL SELF LEARNING MATERIAL (SLM)

India's civil aviation sector, which has previously relied on foreign countries for maintenance, repair, and overhaul (MRO) services, plans to build its own facilities. With a budget of 50 crores, the Indian government plans to build a sustainable air network in over 400 tier-2 cities across the country. Vision 2040 The Ministry of Civil Aviation released a report entitled \"Vision 2040\" on 15 January 2019 outlining a roadmap for the future of civil aviation in India. The report projects that air passenger traffic will increase sixfold to 1.1 billion by 2040 including 821 million domestic and 303 million international passengers. The report estimates that a total of 2,359 aircraft would be required to server passengers in March 2040. The government expects air cargo movement to quadruple to 17 million tons in 2040. The Ministry projected that the number of airports in India would rise from 101 in January 2019 to around 190–200 by March 2040 and an estimated 150,000 acres of land and US$40–50 billion of capital would be required for construction. The government proposed creating a $2 billion fund to help support low-traffic airports. The report also targets establishing an aircraft manufacturing base in India by 2040 4.2 PROSPECTUS OF AIRWAYS IN INDIA  India is now the third largest and fastest growing aviation market in terms of domestic tickets sold.  The Indian aviation market has grown at an annual rate of 10.2% from 2008–09 to 2018–19.  India has 91 international carriers comprising of 5 Indian carriers and 86 foreign carriers, which ensure that India is well connected with most major countries.  Revenue passenger kilometres (RPK) in domestic airline demand growth of 18.6% in 2018 was three times the global RPK growth of 6.5%.  Indian carriers are projected to increase their fleet size to 1,200 aircraft by 2024.  Freight traffic on Indian airports is expected to cross 11.4 MT by 2032.  Government agencies projects requirement of around 250 brownfield and green-field airports by 2020.  India is the fastest-growing aviation market and is expected to cater to 520 million passengers by 2037.  India has been projected to be the second-fastest-growing country in the world for passenger traffic by the Airports Council International (ACI) in its traffic forecasts between 2017-40.  Demand for aircraft in India is expected to be 1,750 by 2037. 70 CU IDOL SELF LEARNING MATERIAL (SLM)

Sectors in which Foreign Direct Investments are allowed to the maximum by the Government of India  Up to 100% FDI is permitted in Non-scheduled air transport services under the automatic route.  Up to 100% FDI is permitted in helicopter services and seaplanes under the automatic route.  Up to 100% FDI is permitted in MRO for maintenance and repair organizations; flying training institutes; and technical training institutes under the automatic route.  Up to 100% FDI is permitted in Ground Handling Services subject to sectoral regulations & security clearance under the automatic route. 4.3 HISTORY OF TICKETING IN AIRLINES Paper tickets have been around since the 1920s. Each airline has its own form with its own set of rules. To support the growth of an industry that covered the globe, airlines quickly recognised the need for standardisation of traffic documentation, laws, and processes. The first standard hand-written ticket for numerous trips was produced by the IATA Traffic Committee in 1930. The industry was served by the same standards. The first ticketing revolution occurred in 1972 with automation. The IATABilling and Settlement Plan (BSP) for travel agents began in Tokyo that year. This led to the birth of the IATA neutral paper ticket. For the first time the IATA logo appeared on the cover of tickets that could be used by any travel agent to ticket journeys on almost any airline in the world. In 1983, the method was further mechanised with the addition of a magnetic stripe on the back of the ticket. This allowed all ticket information to be saved electronically on the ticket, which could also be used as a boarding pass. In 2005, 285 million IATA neutral paper tickets (both kinds) were printed at their highest point. The first e-ticket was issued in 1994. By 1997 IATA had adopted global standards for e- ticketing. But the evolution was slow and by May 2004, only 19% of global tickets were electronic. 4.4 AIRLINE RESERVATION SYSTEM (ARS): A computerised system is one in which information on flight schedules, their availability, fare categories (economy/business class, etc.) and other related information and services about airlines are maintained, bookings can be made, and tickets may be issued. 4.4.1 Importance and Benefits of ARS 71 CU IDOL SELF LEARNING MATERIAL (SLM)

This kind of reservations system is widely used by airline offices e.g., ATO etc and the various general sales agents (GSA’s) utilized the services of the system for their smooth reservations process. The days of asking for ticket bookings and relying on a single price from travel agents are long gone. In today's environment, customers can purchase tickets using online portals. Consumers may compare fares on multiple airlines, print boarding tickets, and select their preferred seat and meals by using the firms' web portals/ applications. This type if airlines system helps to customers in many ways like booking or reservations on the net. The customers can check it online. The passengers may check the availability and can compare the prices of the tickets on the websites of the companies. Airline Reservation System Few of the companies allow us to choose the fare as per our choice and we may compare the same with the others airlines also. But there is no doubt that we can book the same by contacting to the airline offices. So, system has helped a lot and transformed the way of travel and made very easy and less costly for all the customers. The conventional reservation system, which was in use until 1930, has developed into the Computerized Reservation System. The Modern Reservation System manages the booking and distribution of tickets to clients in a systematic and efficient manner. The Global Distribution System and the Airline Reservation System are normally in sync with Global Distribution System (GDS) and Most of the companies offer one or more booking engines. But no doubt there are other independent travel booking agencies or is also called non-GDS companies like Data Lex and SITA travels also offer popular booking engines. To work effectively it is required that Internet booking engines must access the Global Distribution system (GDS) through a booking engine. History of Airline Reservation System What happened when an anti-competitive atmosphere became competitive? From having a monopoly to having to compete with the right. With the introduction of new distribution channels, a journey from managing manual inventory to using a computerised airline reservation system. This article will provide an overview of the evolution of airline reservation systems, as well as the causes and effects on other airline industries. Prior to Airline Computer Reservation System Prior to airline reservation system travel technology and travel portal development delegates used to visit, call, or send the message through teletypewriter for a booking request in the airport or ticketing office. Reservations were processed manually. Moreover, a team of operators was required to make an airline reservation. Operators sat at a round table surrounded by cards. Each card represented a journey between particular city pairings and 72 CU IDOL SELF LEARNING MATERIAL (SLM)

was manually checked against a booking by the operator. The cards were then sorted by departure date and stored in tubs that were rotated among reservation agents as needed. This whole airline reservation process took approximately 2 hours. As the process was unwieldy it led to errors; booking of two passengers on one seat or under booking which caused distress and inconvenience. Emerging Needs of the Internal Reservation System After the 1950s the airlines started experiencing an increase in demand for flight booking. And the strenuous airline reservation process was a challenge to cater to amplifying demand. To make the process efficacious the airline had to rework on the internal airline reservation system. But to develop and operate the automated systems was quite expensive. American Airlines anticipated this and created a semi-automated computer aeroplane reservation system. The system displayed flight schedules, details, and available seats. However, airline reservations remained a manual process, requiring an agent to phone 73 CU IDOL SELF LEARNING MATERIAL (SLM)

theticketing office, speak with the operator, and enter the relevant information into a gadget. Introduction of the First Computer Reservation System: SABRE Computer Reservation System Definition: An airline reservation system that gives travel agents access to information about flight schedules, fares, and seat availability. It also enables them to make airline reservations and issue tickets automatically. Later on, it was used for booking hotels, car rental, and other activities. Despite the increased demand, the airline's reservation system still needed to be updated. After a conversation between the president of American Airlines and an IBM salesperson on an American aircraft, the idea for the first computer airline booking system was conceived. IBM learned lessons from the SAGE (Semi-Automatic Ground Environment) air defence computer system and moved forward with American Airlines project. American Airlines named the project SABRE (Semi-Automated Business Research Environment). In the mid-1960s the development of SABRE was completed and atthe initial stage, only two IBM 7090 computer systems were installed in New York. The company gained a first-mover advantage after introducing it. American’s SABRE revolutionized the airline industry by handling 84000 transactions per day. The average time for the airline reservation was reduced to seconds. But till now the operators of American’s only used to make the airline reservation after receiving the requirements from agents. 74 CU IDOL SELF LEARNING MATERIAL (SLM)

Development of PARS SABRE gave American a monopoly in the automation of airline reservation systems, forcing other airlines to develop their own computer reservation systems. SABRE's success prompted IBM to develop its own system to sell to other airlines. PARS was created by IBM (Programmed Airline Reservation System). After American United, Delta, Transworld, and Eastern followed with their own system. Airlines approached IBM, as the basic reservation process was the same, airlines adopted PARS with some customization. In 1964 IBM built PANAMAC for Pan American, which offered flight and hotel reservations. Next year, in 1965, Eastern Airlines launched System One, then Delta Airlines launched DATAS II in 1968. United Airlines built the Apollo reservation system and Trans World Airlines came up with PARS customization in 1971 75 CU IDOL SELF LEARNING MATERIAL (SLM)

Amadeus, Travelport (which operates the Apollo, World span, and Galileo systems), Sabre, and Shares are the only significant GDS suppliers in the industry as of February 2009. There is one large regional GDS covering the Asian market, Abacus, as well as a number of regional companies serving particular nations, such as Travel sky in China, Infini and Axess in Japan, and Topas in the South Korea. Of these, Infini is hosted within the Sabre complex, Axess is in the process of moving into a partition within the Worldspan complex, and Topas agencies will be migrating into Amadeus. It shows the list of the various flights which are available for the selected route by the customers. It also depicts the seats available on the selected flight and allows for the passengers to book the ticket online after making the payment through the various methods like online, internet, banking cards, etc. Customers must fill out personal information such as their name, age, and address before making a payment. After making the payment, the customer will receive an e ticket as well as a message to the email and mobile number provided when reserving the e ticket. This type of reservation system not only allows you to reserve tickets, but it also allows you to cancel them in the event of an emergency. 76 CU IDOL SELF LEARNING MATERIAL (SLM)

The basic objective behind to use this type of system to make comfortable and easy and error free (occurs in manual system) for the customers to book the tickets online, modify or cancel the reservation hassle free. The main purpose of this software is to reduce the manual errors involved in the airline reservation process and make it convenient for the customers to book the flights as when they require such that they can utilize this software to make reservations, modify reservations or cancel a particular reservation. In addition to airline travel agents, the extremely useful technology benefits customers because they may acquire the necessary flight data in less time by just sitting at home or at work, rather than waiting in a large line. Customers may easily find information about any flight and reserve or book tickets for their preferred destination and, of course, pricing. The Airline reservation system gives the freedom to choose and compare the flight price and timings with different timing or particular day or date that really encourage them to make the reservation and bookings etc. Even the loyal or repeat passengers get the regular updates of the offers and discounts on their phones and email ID. Complete details, such as timing, fare, luggage rules, and other instructions, departure terminal, Gate No, and expected travel time and time of departure, are now provided/displayed on the screen of a computer or mobile device. As a result, it is possible to conclude that the AIR Line Reservations System is the most reliable and practical software that has been specifically built with integrated features.GDS (Global Distribution System) to offer easier and convenient booking procedure to both passengers and airline companies. Manual form of Ticket Today an internet booking engine (IBE) is an application which helps the travel and tourism industry support reservation through the Internet. IBE providers keep adding new features to internet booking engines such as Multiple Search Options so that a customer can book the flight in a manner that suits his/her requirements. If the customer is “schedule sensitive” or needs to adhere to specific travel dates, the IBE offers ticket fares giving priority to the travel calendar. Because many passengers are concerned about ticket prices, an airline's IBE displays a comparison of low- and high-ticket costs, as well as the services provided in each. A user may be able to access a seat map and book an available preferred seat. It is possible to select a front row, aisle seat, or window seat. Web Check-in is a feature that allows a passenger to check in online. Earlier period since devices for printing tickets are very expensive, as probably all highly specialized devices; this type of forms is not widely spread in the agencies. Besides, it is impossible to print tickets of different airlines from one printer, so if you buy a ticket at the agency, it is likely that the flight will be written exactly in the manual form. Airlines also 77 CU IDOL SELF LEARNING MATERIAL (SLM)

have an “emergency” manual tickets reserve for the case of shutdown or malfunction of the printer. Forms with two or four coupons are the most popular. Because each coupon has a photocopying layer, each one has information about the others. The word \"VOID\" is printed on the \"extra\" flight coupons, and the coupons are \"ripped out\" of the ticket if the number of flights on your route is less than the number of coupons in the form. The final coupon is a passenger duplicate. The Basic Airline Price System The most familiar and well-developed example of revenue management in practice is the Airline industry where: ➢ SEGMENTED MARKETS: Demand is segmented into business and leisure market segments using discount fare restrictions. Relatively price insensitive business travellers are charged higher fares than more price sensitive leisure travellers. ➢ FIXED CAPACITY: The number of seats on a flight is fixed once schedules are set. ➢ PERISHABLE INVENTORY: Once a flight has departed, the unsold seat inventory has no value. ➢ LOW MARGINAL SERVICING COSTS: The out-of-pocket cost of adding a passenger to a flight is very low. ➢ ADVANCE SALES: Booking requests are tendered in advance of departure and can be evaluated using logic programmed into the computerized reservation system. Fares can be changed on short notice. ➢ UNCERTAIN DEMAND FORECASTS: Passenger demand varies by season, day-of- week, and time-of-day and can be forecast by flight and fare category, but not precisely. In the travel industry, the business travel segment is less price sensitive than the pleasure travel segment. The leisure segment of the market receives discounts from service suppliers. The application of prior purchase and length-of-stay conditions prevents most business travellers from taking advantage of these savings. These restrictions are well-known to travel companies. The price of any airline ticket consists of a number of things like  Baggage  Base Fare  Food  Fuel Surcharge  Seat Selection  Service Fee  Applicable Taxes 78 CU IDOL SELF LEARNING MATERIAL (SLM)

 Airport Fees The last four are sometimes optional (especially for low-cost airlines) where you pay for them on top of the ticket price if you want them included. With the older, more traditional airlines, and for long-haul flights, these things are usually included in the ticket price. The question of Why do prices change? Prices change due to seat availability and demand. The cheaper booking classes might be sold out even if there’s still 3 months before you leave. There are some dates of the year where there is simply higher demand. When a lot of people have to fly somewhere (and even more when they want to go to the same destination or area), airlines will set their prices at a higher level. Dasara, Deepavali and Sankranti are the busiest times. 4.5 FLIGHT INFORMATION DISPLAY SYSTEMS Flight information display systems are at the core of any airport, serving both control rooms and passengers with vital information. It's critical to provide FIDS database information in a timely and accurate manner in order to direct passengers to the correct flight, departure, and baggage check, as well as to monitor and control flights, schedules, security, and operations across the airport A flight information display system (FIDS) is a computer system that is used in airports to display flight information to passengers. It consists of a computer system that controls mechanical or electronic display boards or TV screens to display arriving and departing flight information in real-time. The exhibits are set up inside or near an airport terminal. Most airport websites and teletext systems also have a virtual version of a FIDS. Each terminal or even each major airline has its own set of FIDS in large airports. Passengers are informed of boarding gates, departure/arrival times, destinations, flight delays/cancellations, and partner airlines, among other things, via FIDS. 4.5.1 Components of Flight Information Display System Each line on a FIDS indicates a different flight number accompanied by:  the airline name/logo and/or its IATA or ICAO airline designator (can also include names/logos of interlining/code sharing or partner airlines, e.g. HX252/BR2898.)  the city of origin or destination, and any intermediate points  the expected arrival or departure time and/or the updated time (reflecting any delays)  the gate number  the check-in counter numbers or the name of the airline handling the check-in  the status of the flight, such as \"Landed\", \"Delayed\", \"Boarding\", etc. Due to code sharing, a flight may be represented by a series of different flight numbers. For example, LH 474 and AC 9099, both partners of Star Alliance, codeshare on a route using a 79 CU IDOL SELF LEARNING MATERIAL (SLM)

single aircraft, either Lufthansa or Air Canada, to operate that route at that given time. Lines may be sorted by time, airline name, or city. Most FIDS are now displayed on LCD or LED screen, although some airports still use split- flap display. Figure 4.1 FIDS1 Figure 4.2 FIDS2 These are two types of Flight Information Display System 80 CU IDOL SELF LEARNING MATERIAL (SLM)

Travel agencies now account for more than 60% of airline bookings. By 1985, over 90% of all travel agents had signed up for CRSs. Airlines try to rank their flights higher on travel agent terminals due to the high level of competition. Screen biassing was coined as a result of this. CRS (or GDS, as we'll call it from now on) owners bolstered their own positions by hiking fees for competitors and delaying schedule and tariff updates. In order to combat screen biassing, the US government attempted to restrict the actions of distribution systems. However, during the 1980s, the GDS oligopoly's status deteriorated. The Civil Aeronautics Board issued regulations in 1984 prohibiting certain actions against competing airlines. The interaction between travel agencies and distribution platform providers was controlled. Reservation systems could no longer contract travel agents for more than 5 years as well as regulate booking fees. In practice, regulation didn’t work, as travel agents were dependent on the distribution system’s pipelines. The illegal actions also took place until the early 2000s. So, in the late 80s, the GDS-centric distribution model, as we know it today, was formed. Internet access improved airline ticket sales significantly, offering new technological capabilities. Paper tickets, which had been in use since the dawn of air travel, were about to become obsolete. When it came to printing paper tickets when a seat was reserved, ticket operators were more than prepared to give up the practise, and electronic ticketing was implemented. A digital replica of a paper ticket is maintained in the airline's reservation system as an electronic ticket. Because of these digital data, airlines were able to make the booking procedure more affordable and convenient for future travellers. Customers could now bypass the check-in process; all they required were their identification documents. 4.6 SUMMARY  Airways is the costliest way of Transport and the ticketing process involved is also complex  Sanskrit Scholar Shivkar Bapuji Talpade has constructed and flown an unmanned airplane named Marutsakha in 1895 at Chowpathy Beach in Bombay which is 8 years before Wright brothers have flown first controlled flight in 1903.  The world’s first airmail service was started in India at Allahabad (Prayagraj); on 18th Feb 1911 the occasion of Kumbh mela  Separate Department of civil aviation was set up in April 1927  1990 was a land-mark year for Indian civil aviation and Air India when Air India entered the Guinness Book of World Records for largest evacuation effort by a single civilian airline when it flew over 1,11,000 people from Amman to Mumbai in 59 days operating 488 flights just before the Gulf war began 81 CU IDOL SELF LEARNING MATERIAL (SLM)

 With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, 100% FDI under automatic route has now been allowed in Brownfield Airport projects  The Ministry of Civil Aviation released a report entitled \"Vision 2040\" on 15 January 2019 outlining a roadmap for the future of civil aviation in India.  The first ticketing revolution occurred in 1972 with automation. The IATA Billing and Settlement Plan (BSP) for travel agents began in Tokyo that year.  The next revolution took place in 1983 when the system was further automated with a magnetic stripe on the ticket back.  The first e-ticket was issued in 1994. By 1997 IATA had adopted global standards for e-ticketing  Today an internet booking engine (IBE) is an application which helps the travel and tourism industry support reservation through the Internet. IBE providers keep adding new features to internet booking engines such as Multiple Search Options so that a customer can book the flight in a manner that suits his/her requirements.  A flight information display system (FIDS) is a computer system used in airports to display flight information to passengers, in which a computer system controls mechanical or electronic display boards or TV screens in order to display arriving and departing flight information in real-time 4.7 KEY WORDS  UDAN-RCS UDAN (Ude Desh Ka Aam Naagarik) is a regional airport development and \"Regional Connectivity Scheme\" (RCS) of Government of India, with the objective of \"letting the common citizen of the country fly\", aimed at making air travel affordable and widespread, to boost inclusive national economic development, job growth and air transport infrastructure development of all regions and states of India  Foreign direct investment (FDI) is an investment made by a company or an individual in one country into business interests located in another country  Global Distribution System A global distribution system (GDS) is a computerised network system owned or operated by a company that enables transactions between travel industry service providers, mainly airlines, hotels, car rental companies, and travel agencies. 82 CU IDOL SELF LEARNING MATERIAL (SLM)

 Airline Reservation System A computerized system is a system in which information about flight schedules, and their availability, fare types (economy/ business class etc) and others connected information and services about the airlines which helps in booking or issuing the tickets to the customers through which airline inventory is maintained, reservations can be made and/or tickets issued.  Computer Reservation System: An airline reservation system that gives travel agents access to information about flight schedules, fares, and seat availability  Advance Sales: Booking requests are tendered in advance of departure and can be evaluated using logic programmed into the computerized reservation system. Fares can be changed on short notice.  Flight information display systems (FIDS) make up the heart of any airport, operating in crucial functions for both control rooms and passenger information 4.8 LEARNING ACTIVITY 1. Learn from your parents/ Grand Parents about how tickets are booked in Bus, Train and Flights in their times and compare it with current system and prepare a report ___________________________________________________________________________ ___________________________________________________________________________ 2. Write a report of how Tata Airlines was acquired by Government of India to become Air India and subsequent Privatisation and what steps can be taken to prevent it? ___________________________________________________________________________ ___________________________________________________________________________ 3. Watch Hindi Movie Airlift 2016 along with your friends and discuss problems and challenges faced by airlines and how they overcame them to carry out world’s largest civilian evacuation in history? ___________________________________________________________________________ ___________________________________________________________________________ 4. Prepare a survey based on the problems faced by Tourists in booking flight tickets and future expectations they have based on ease of doing business ___________________________________________________________________________ ___________________________________________________________________________ 5. Discuss about FDI investments into Aviation Sector and how they can improve air connectivity across the country and its benefits for common citizens 83 CU IDOL SELF LEARNING MATERIAL (SLM)

___________________________________________________________________________ ___________________________________________________________________________ 4.9 UNIT END QUESTIONS A.Descriptive Questions Short Questions 1. List out the things on which airline fare is included? 2. In what Airline sectors did Government of India allowed 100% FDI? 3. What is Vision 2040 in Civil Aviation? 4. What is manual form of ticket? 5. What is the future prospectus of airways in India? Long Questions 1. Explain about current situation and prospectus of Airways in India? 2. Describe the history of ticketing in airlines? 3. What is Flight Information Display System (FIDS) and explain the components of it? 4. Elaborate about the history and growth of Airways in India? 5. What is the beginning of Civil Aviation in India? 6. Describe the story of Shivkar Bapuji Talpade who was known to flew an Aircraft even before Wright brothers? 7. How is Basic Airline Price System calculated? 8. Describe the process of Airline Reservation System? 9. Explain the development of SABRE and PARS in ARS? B.Multiple Choice Questions 1. Akshay Kumar played whose role in 2016 movie ‘Airlift’ based on Real life Guinness Record of World’s largest Civilian Evacuation by flight? a. Mathunny Mathews b. J R D Tata 84 CU IDOL SELF LEARNING MATERIAL (SLM)

c. Shivkar Bapuji Talpade d. Harbhajan Singh Vedi 2. Which of the following noted Indian Scientist died in an Air India Air crash in 1966? a. Vikram Sarabhai b. Satish Dhawan c. Homi J Bhabha d. C V Raman 3. In which year did Bobby Kooka and Umesh Rao has designed Maharajah, the mascot of Air India? a. 1945 b. 1946 c. 1947 d. 1948 4. The first introduced SABRE system in 1960s handled how many transactions per day a. 16,000 b. 26,000 c. 46,000 d. 86,000 5. The first Internet and online check in was introduced by which of the following Airlines in 1999? a. Air India b. Alaska Airlines c. Azul 85 CU IDOL SELF LEARNING MATERIAL (SLM)

d. Air New Zealand Answers 1-a, 2-c, 3-b, 4-d, 5-b 4.10 REFERENCES Textbooks • http://cgpl.iisc.ernet.in/site/Portals/0/Publications/ReferedJournal/ACriticalStudyOfTh eWorkVaimanikaShastra.pdf Websites  https://www.flightglobal.com/systems-and-interiors/indian-government-draws-up- new-civil-aviation-roadmap-to-2040/130972.article  https://www.collinsaerospace.com/en/what-we-do/Airports/Airport-Operations/Flight- Information-Display-Systems  https://www.altexsoft.com/blog/engineering/flight-booking-process-structure-steps- and-key-systems/ 86 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 5INTRODUCTION TO COMPUTERISED 87 RESERVATION SYSTEM STRUCTURE 5.0 Learning Objectives 5.1 Computerised Reservation System 5.1.1Basic Functions of a CRS 5.1.2 Major Airline CRS Systems 5.1.3 Benefits of CRS 5.1.4 History and Evolution of CRS 5.2 Access of CRS to travel agents 5.2.1 Affiliate System in Computerised Reservation System 5.2.2 Non-affiliate system in CRS 5.2.3 Advantages of using Central Reservation System 5.3 Reservation Service Manual 5.4 Computerised Reservation System in Hotel industry 5.4.1 Types of Hotel Reservation System 5.4.2 Central Reservation System 5.4.3 Role of Internet in Reservation 5.4.4 Sources of Reservation 5.5 Summary 5.6 Key Words 5.7 Learning Activity 5.8 Unit End Questions 5.9 References 5.0 LEARNING OBJECTIVES After Studying this unit, students will be able to  Describe an Overview of Reservation System  Explain the History of CRS CU IDOL SELF LEARNING MATERIAL (SLM)

 Describe the uses of CRS in Aviation and Tourism  Analyse Advantages of using CRS in Tourism and Travel industry  Usage of Reservation Service Manual  Role of Internet in Reservation  Types of Hotel Reservation System 5.1 COMPUTERISED RESERVATION SYSTEM Travel is one of the top business areas. It employs various technological advances and offers numerous benefits to both travellers and travel agencies. Computer Reservation System (CRS) is one of the most widely used tools in the Travel and Tourism Industry. In fact, it has revolutionized the whole industry. Definition A computer reservation system or a central reservation system (CRS) is a web-based software used by travel agencies and travel management companies to retrieve and conduct transactions related to air travel, hotels, car rental, or other activities. It was originally designed to be used by airlines but was later extended to be used by travel agencies and Global Distribution Systems (GDS) to book and sell tickets for multiple airlines. Computerized Reservation System: In the 1970s, the airline industry began to explore for ways to improve their reservations system in order to improve the client experience and make it easier for customers to book, cancel, and sell tickets or bookings online. The industry adopted the latest reservation system so called “Central reservations System” which helps to the travel agents in accessing the information about the flight schedules, fares and seat availability for the specific flights for the selected route etc. The Central Reservation system made very easy to book and cancels the tickets online. A central (or computerised) reservation system allows multiple hotels to access booking information like as availability and pricing from anywhere in the world, as well as deliver the same information to desired hotel properties in a simple and effective manner. It is made up of a central reservation office and member hotels that share information about room availability with the central reservation office. It is widely used as reference manual by the various travel professionals which helps them to refer or access the information pertaining to the fare’s flights and travel advisories etc. This type of system works in line with Global Distribution System (GDS). GDS also provides the complete, current information on the various airlines, railways, cars, hotels, cruises, and tours. The travel agents or professionals may book or cancel the bookings or tickets online by using the central reservations system or Global Distribution System etc. The CRS allows to users to 88 CU IDOL SELF LEARNING MATERIAL (SLM)

search the fights routes or schedule seats availability and other relevant information as per their choice. It is not only helped to user but also to the administer/ managers to modify or make the changes of existing flights or to start the new airlines for the new route etc. Objective The main objective of CRS was to make a one-stop service shop and eliminate physical and geographical distances between mediators and consumers. With universal coverage, these distribution systems provide information for airlines, hotels, car rental companies, travel agencies, corporations and more. A CRS will be handy if you want to focus solely on a single travel-related service, such as selling airline tickets. Using a CRS to connect to numerous services is not recommended. The word CRS is no longer widely used because it is now part of the Passenger Service System (PSS), which includes CRS, an airline inventory system, and a departure control system (DCS). 5.1.1 Basic Functions of a CRS  Displays travel services with prices and images  Inventory and reservation management  User friendly reservation system  Online payment gateway integration  Customer data management  Email notifications  Booking cancellation and refund management 5.1.2 Major Airline CRS Systems The term CRS is not much used as it has become part of a bigger system known as the Passenger Service System (PSS) which comprises of CRS, an airline inventory system and the departure control system (DCS). Here are some of the major players in this field are:  Aircore an Airline PSS Powered by Microsoft Azure  Avantik PSS  Abacus  ACCELaero  Axess  KIU  MARS  Radixx 89 CU IDOL SELF LEARNING MATERIAL (SLM)

5.1.3 Benefits of CRS  All the services-related customer information such as Passenger Name Record (PNR) or Guest Name Record (GNR) are recorded  Invoicing, accounting, customer and quota management is possible  High speed network of information infrastructure  Fare quote, ticketing and voucher generating process  System can also store customer related information such as all the services provided to a certain customer, type of payment, service information etc  CRS are web-based applications which saves a lot of time on administration work  Interfaces with technologies such as Amadeus, Travelport and APIs/XMLs  Suitable for B2B and B2C business models  Includes a comprehensive admin console  Offers custom reporting 5.1.4 History and Evolution of Computer Reservation System Origins The experimental electromechanical Reservoir, the first automated booking system, was deployed by American Airlines in 1946. The Magnetronic Reservoir, a newer system with temporary storage based on a magnetic drum, followed soon after. This system proved to be a success, and it was soon being utilised for inventory control by various airlines, as well as Sheraton Hotels and Goodyear. It was seriously hampered by the need for local human operators to do the actual lookups; ticketing agents would have to call a booking office, whose operators would direct a small team operating the Reservoir and then read the results over the telephone. There was no way for agents to directly query the system. The MARS-1 train ticket reservation system was designed and planned in the 1950s by the Japanese National Railways' R&D Institute, now the Railway Technical Research Institute, with the system eventually being produced by Hitachi in 1958. It was the world's first seat reservation system for trains. The MARS-1 was capable of reserving seat positions, and was controlled by a transistor computer with a central processing unit and a 400,000-bit magnetic drum memory unit to hold seating files. It used many registers, to indicate whether seats in a train were vacant or reserved to accelerate searches of and updates to seat patterns, for communications with terminals, printing reservation notices, and CRT displays. Remote access In 1953, Trans-Canada Airlines (TCA) started investigating a computer-based system with remote terminals, testing one design on the University of Toronto's Manchester Mark 1 machine that summer. Though successful, the researchers found that input and output was a 90 CU IDOL SELF LEARNING MATERIAL (SLM)

major problem. Ferranti Canada became involved in the project and suggested a new system using punched cards and a transistorized computer in place of the unreliable tube-based Mark I. The resulting system, ReserVec, started operation in 1962, and took over all booking operations in January 1963. Terminals were placed in all of TCA's ticketing offices, allowing all queries and bookings to complete in about one second with no remote operators needed. On a journey from Los Angeles to New York in 1953, American Airlines CEO C. R. Smith happened to seat next to R. Blair Smith, a senior IBM sales representative. C.R. invited Blair to come see their Reservoir system and see what IBM could do to improve it. Blair informed Thomas Watson Jr. that American was interested in collaborating on a large project, and a series of low-level studies began. The Semi-Automatic Business Research Environment (SABRE), based on their notion for an automated airline reservation system (ARS), was founded in 1959 and debuted the following year. The network was the world's largest civil data processing system when it was finished in December 1964. Other airlines established their own systems. Pan Am launched its PANAMAC system in 1964. Delta Air Lines launched the Delta Automated Travel Account System (DATAS) in 1968. United Airlines and Trans World Airlines followed in 1971 with the Apollo Reservation System and Programmed Airline Reservation System (PARS), respectively. Soon, travel agents began pushing for a system that could automate their side of the process by accessing the various ARSes directly to make reservations. Fearful this would place too much power in the hands of agents, American Airlines executive Robert Crandall proposed creating an industry-wide computer reservation system to be a central clearing house for U.S. travel; other airlines demurred, citing fear of antitrust prosecution. Travel agent access United Airlines began offering its Apollo system to travel agents in 1976; while the system did not allow agents to purchase tickets on United's competitors, the convenience of the terminal proved invaluable in terms of marketing. Travel agents were quickly given access to SABRE, PARS, and DATAS. Following airline deregulation in 1978, a well-functioning CRS became more vital; by some accounts, Texas ranked first. Also in 1976 Videocam international with British Airways, British Caledonian and CCL launched Travicom, the world's first multi-access reservations system (wholly based on Videcom technology), forming a network providing distribution for initially two and subsequently 49 subscribing international airlines (including British Airways, British Caledonian, Trans World Airlines, Pan Am, Qantas, Singapore Airlines, Air France, Lufthansa, SAS, Air Canada, KLM, Alitalia, Cathay Pacific and Japan Airlines) to thousands of travel agents in the UK. It allowed agents and airlines to communicate via a common distribution language and network, handling 97% of UK airline business trade bookings by 1987. The system went on to be replicated by Videcom in other areas of the world including the Middle East (DMARS), New Zealand, Kuwait (KMARS), Ireland, 91 CU IDOL SELF LEARNING MATERIAL (SLM)

Caribbean, United States and Hong Kong. Travicom was a trading name for Travel Automation Services Ltd. When British Airways (who by then owned 100% of Travel Automation Services Ltd) chose to participate in the development of the Galileo system Travicom changed its trading name to Galileo UK and a migration process was put in place to move agencies from Travicom to Galileo. European airlines also began to invest in the field in the 1980s initially by deploying their own reservation systems in their homeland, propelled by growth in demand for travel as well as technological advances which allowed GDSes to offer ever-increasing services and searching power. In 1987, a consortium led by Air France and West Germany's Lufthansa developed Amadeus, modelled on System One. Amadeus Global Travel Distribution was launched in 1992. In 1990, Delta, Northwest Airlines, and Trans World Airlines formed Worldspan, and in 1993, another consortium (including British Airways, KLM, and United Airlines, among others) formed the competing company Galileo GDS based on Apollo. Numerous smaller companies such as KIU have also formed, aimed at niche markets not catered for by the four largest networks, including the low-cost carrier segment, and small and medium size domestic and regional airlines. Trends For many years the GDSs had a dominant position in the travel industry. To bypass the GDS, and avoid high GDS fees, airlines have started to distribute flights directly from their websites. Another possibility to bypass the GDSs is direct connection to travel agencies. American Airlines' direct connect is a prominent example of this development. Tourists had to rely on information provided by vendors via printed brochures, flyers, and listings in local and regional travel guides prior to the introduction of CRS. As a result, promotional materials were expensive, time-consuming, and information remained static even though data needed to be updated constantly. The first CRS was established as an experiment in the 1960s by airlines to keep track of sold seats in order to promote a seamless and dynamic flow of information. American Airlines created SABRE (Semi-Automated Business Research Environment), the world's first CRS, in 1963. Following that, CRS became the dominant means of disseminating air travel information, having a significant impact on airline competition. They were first used by travel firms in 1976, and they have since become a ubiquitous element of the tourism sector. Basic functions of CRS  Display products and services offered by various tourism providers  Passenger or guest name record  Fare quotation and ticketing depending on the complexity of the services offered  Provision of information about trade shows, visa regulations, and payment gateways 92 CU IDOL SELF LEARNING MATERIAL (SLM)

5.2 ACCESS OF CRS TO TRAVEL AGENTS During 1976, the Apollo system was offered to travel agents which provided immense convenience. Soon after that, SABRE, PARS and DATAS gave access to travel agents as well. During the same year, some of the British Airways joined hands and launched Travicom, the world’s first multi-access reservations system. It allowed agents and airlines to communicate via a common distribution language and network. 97% of the UK’s airline business trade bookings were done through this channel by 1987. An airline deregulation act was passed in 1978 to control fares, routes, and market entry of new airlines. So, a CRS proved particularly important. In the 1980s, European airlines also began to invest in this field due to the demand for advancements in travel. After that, many travel technologies such as Amadeus and Worldspan were introduced. An even smaller company such as KIU was formed to carter low-cost carriers. In conclusion, the CRS technology has reached a point where it would be hard for travel agents to do their work without it. As a major distribution channel, it functions as a powerful sales outlet. 5.2.1 Affiliate system in Computerized Reservation System All the hotels’ properties are generally interlinked and contractually connected through this kind of reservation system. All the chains of the hotels are connected and link their reservation system operations to perform their functions of bookings or reservations and it also helps in reducing the operational cost as well. Under this Reservation system and reduce overall system costs. In this system, all the properties are interconnected and works for each other, they attract and promote their business on mutual basis, put all the efforts to promote the business to another hotel of the same chain. The following are the benefits to the hotels properties to use an affiliate reservation system are as follows: - Makes easier to make the reservation by simplifying the process of the same. Helps in reducing the overall cost of the reservations system Also helps in attracting the business for other property/hotels of the chain means the hotels are inter connected and works for each other. In addition to above the following there are other important functions, may be mentioned as follows: - It helps in maintaining the Inter-property/hotels/chains communication network. It also serves as a very good tool of accounting transfer. 93 CU IDOL SELF LEARNING MATERIAL (SLM)

It also acts as Destination information centre. It works in line with a global distribution system (GDS), which is connected to the various reservation system Under the Central Reservations system any property may receive the booking for the other chain of hotels/properties located at the same places or different places. The agent who is handling the queries might suggest accommodation at another property of the claim in the same in the geographical area. Some properties might even acknowledge such reservations through a specially prepared note. The hotels may refer a hotel to the guest, which matches with the need and choice of the guests. Under this type of system independent hotels may also participate and they are also free to represent the whole market. The requests from the non-affiliate properties may be considered only after giving due consideration or priorities to the queries or requests of the booking of the affiliate system. 5.2.2 Non-affiliate system in Computerized Reservation System Non affiliate system refers to that kind of system which is generally used by the independent or non-chain properties. This kind of system makes enable to the independent accommodation operators to utilize many benefits as the other chains of hotels do. Under this kind of reservation system network the accommodation managers have the information about the potentials customers or guests, name of the independent hotels etc, it is just exactly opposite to the affiliate reservation system, where the independent hotels or properties take up the responsibility of the promoting and advertising its services etc. 5.2.3 Advantages of Using the Central reservations System The main benefit of the Central Reservation System is that the hotels properties are connected to many travel agents not within any country but also across the globe, who facilitates the reservations and booking to the customers located at the different places. The online reservations system has transformed the hotel industry. It benefits to the industry in many ways and cannot be measured in few lines. Due to the internet, it is very easy to make the reservations or bookings in one click.CRS is the system where the number of hotels is connected through computerized system or CRS to the various network situated at one place. This system gather store and helps in retrieving the same while doing the bookings or making reservations for the guests. It helps to the Hotel Reservation system to access the GDS Global Distribution System and many others internet distribution systems like Online web portals/pages or websites from one single window. It also helps to the hotel’s managers in marketing their products and services online. By using this system, the information about the hotels accommodation and facilities, prices of the room 94 CU IDOL SELF LEARNING MATERIAL (SLM)

etc may be uploaded. And the same may be accessed by the others properties or travel agents for their reference and perform any bookings or reservations etc. it clarifies the position of any hotel. During the early stage the hotels rooms were sold by the sales agent or also called travel agents etc but now these days, there are various online travel agencies or websites which makes the reservation process Hassel free and very easy. It also makes easy for the both type of travel agents i.e., traditional or online to access the information about the hotel’s products and services etc. As we know that Central Reservation System is composed of various Modules which really helps to the owners in many ways, which are explained as follows: - Reservation: It assists owners by providing a better reservation system, as well as numerous sales agents, web portals, and others that need to access information and make bookings and reservations. This system keeps track of availability, pricing, and other information, making it simple for customers to book and reserve rooms. Profiles: The profile of the hotels may be accessed to everyone who connected to the airline reservation system. Profile of the hotel enables the customers and travel agents located at the different places to access the information about the hotels. The various customers may be attracted by the name of the profile of the hotels. Groups and Blocks: The creation of a profile in the central reservation system aids hotels in attracting a growing number of potential guests/customers. The impact of an internet presence on the visibility of a hotel's profile is correctly noted and promoted. It significantly contributes to the establishment of a stronger client reservation foundation for hotels. It also assists owners/users in maintaining and updating information about their properties. The information about the rates and inventory of the hotels room and others relates services in comparison to the available competitors. Global distribution System interface: The main advantage to have central reservations system is it connects the respective hotel with the GDS (Global Distribution System) and also makes the hotels visible among the many travel agents spread and located at the different parts of the world. This provides leverage in elevating the hotels sales and Profits. Thus, it acts as economical tool to access the larger people in the hospitality business. Benefits of CRS There are plenty of advantages to using a CRS that a hotelier can benefit from. The CRS essentially acts like a global distribution centre, storing hotel rates and availability so that it’s more accessible to online channels such as OTAs and travel agents. So what are the benefits of a central reservation system beyond booking? We’ll look at how a CRS helps build better customer relationships, synchronizes information, increases flexibility 95 CU IDOL SELF LEARNING MATERIAL (SLM)

and efficiency, saves time and money, keeps track of reservations and streamlines payment. Let’s dive in. 1. Better customer relationship Hospitality flourishes through the provision of quality services and building meaningful relationships with customers. It’s good to wish your customers a happy birthday or remember them during the holidays. A happy customer will bring in referrals and more business. A CRS helps you build sustainable relationships by identifying customers' buying patterns and recording relevant information to understand them better. This information allows you to provide personalized services and improve guest experiences. Some of the customized services include seasonal prices and discounts for regular customers, and a cancellation policy. You can also adjust children's rates and meal plans to suit their preferences. Alternatively, you can make their booking process seamless by pre-filling their preferred room types and personal information. Customers appreciate even small gestures, making them more likely to recommend your hotel to their friends. 2. Synchronization of information In the past, hotels had to manage reservations and bookings manually. When a guest checks in or leaves, the front office and sales staff need to update the available rooms and regularly update the bookings list. Setting room rates, determining availability and managing bookings manually often leads to overbooking or double booking due to human error. It also leads to guest inconvenience, especially if customers fully book the hotel. You can avoid all those errors and inconveniences by embracing automation software like central reservation systems. One of the major selling points of a CRS is that it collects hotel data, including available rooms, rates and inventory, making it accessible on a global level. Hotel management can access the information from any computer, tablet or phone in the building, and make the necessary adjustments. Moreover, information on occupancy levels and room rates are available in real time. For example, if a customer reserves a room, the system will update the status, ensuring it is not available to other visitors. Synchronized data also gives the customer a time-saving search tool to refine their preference according to dates, location and room type. Besides, the online booking system allows visitors to take advantage of special offers and extras like meal deals and airport transfers. Furthermore, this synchronization takes place on a global level via the global distribution system interface, meaning that OTAs and travel agents around the world can access this information. 3. Increases flexibility and efficiency 96 CU IDOL SELF LEARNING MATERIAL (SLM)

As market trends change, hoteliers must adapt by adjusting their pricing strategies and policies. A central reservation system increases your flexibility by adopting new rates and policies according to the corresponding marketing condition, which can also be adapted on a chain level. The global market is not uniform, so you can change the rates for various rooms, and the latest prices will be reflected on the booking website. Apart from occupancy rates, you can also adjust the commission and cost of distribution resources depending on market fluctuations. A CRS also allows the implementation of multi-channel marketing strategies, boosting your online presence and increasing bookings. All the traffic from third-party distribution channels and online travel agents will come to your booking engine. Therefore, if you link the CRS with your website, you can provide relevant information like available rooms, price comparisons and helpful resources to persuade visitors to book a room. That means you can reach worldwide guests without adjusting hotel data for every location. Besides, central reservation systems have an intuitive interface that makes the reservation process smooth and stress-free for your guests. 4. Saves time and money Before hotel booking system software became a standard, hoteliers required additional front office staff to handle bookings and data entry. During peak season, you had to find extra reception staff to check-in guests and take care of booking requests. The introduction of reservation systems that work with all distribution systems eases the burden on hotel management. Hoteliers need fewer reception staff, reducing the operational costs. Not only that, but your staff will have time to tend to other customer needs without data entry tasks. You also don’t need sales agents to advertise your hotel, and you can keep commissions at a minimum with online travel agents. Integrating the booking engine with a CRS will also promote direct bookings and reduce the distribution channels' costs. If you want to save money further, pair your CRS with the Mews cloud-based property management system. You can access your information from any part of the world without worrying about maintaining servers or subscription plans. A central reservation system will streamline your revenue and grow your bottom-line. 5. Keeping track of reservations Sometimes, visitors reserve rooms months ahead, especially when they have a holiday planned out during the peak seasons. Manually managing such reservations can lead to errors. The sales agents may misplace the booking details, inconveniencing the customer or causing overbooking. Fortunately, a central reservation system can solve your booking problems. You can reserve tables and rooms for guest’s months ahead without worrying about losing track of the reservation. The system will display the booked days, preventing chances of 97 CU IDOL SELF LEARNING MATERIAL (SLM)

double or overbooking. You can also note down guest's special requests during reservations like food allergies and favorite rooms. Even better, you can use the reservations to make projections on the peak and low seasons and make preparations. If you have hotels in various countries, you can still access reservation information from the online booking system. Chains can even create reservations on a chain level and steer to a centralized booking engine. Furthermore, you can monitor the occupancy rates in all your hotels, allocate resources and increase marketing efforts in low- performing hotels. 6. Ease of use and secure payment A central reservation system is compatible with various distribution systems and property management systems, allowing the easy streamlining of information. Therefore, hotels do not need to find new distribution systems. It’s also a user-friendly interface for guests and hotel staff. Guests can easily navigate the booking process while staff can access or update information with a few clicks. If you have multiple hotels with separate reservation systems, you can integrate them into a central system and monitor your businesses. Furthermore, visitors booking via the CRS enjoy data security, and their payment information remains confidential. Guests have no reason to worry about sharing their credit card details since they can access other secure payment options. Use of the CRS by Airlines and Travel Agents Computer reservation system (CRS) is probably the most widely used technological tool in the tourism industry. It is basically an electronic system used to promote sales and provide fast and accurate information about availability, price, and bookings of products and services. It was originally designed and employed by airlines for flight ticket reservation, but nowadays CRS is used to store and distribute information about tourism products and services to the public either directly or through intermediaries, which also allows reservations to be made (Beaver 2005). The distribution of such information among customers and intermediaries has resulted in a series of alliances, mergers, and acquisitions among service providers, and this booking system has since evolved into what is widely known as the global distribution system, also referred to as eMediaries. The leading global distribution companies are Amadeus, Galileo, Sabre, and Worldspan 5.3 RESERVATIONS SERVICES MANUAL [RSM] A reference or training guides may be reviewed by the user's properties in order to better grasp the reservations rules and procedure. It offers different examples that assist users in operating in an efficient manner and comprehending the rules and procedures in depth. The main advantage of using the manual system is that all the rules and regulations pertaining to the reservations message procedures etc are agreed and accepted worldwide. The various 98 CU IDOL SELF LEARNING MATERIAL (SLM)

travel related products and services used by the tourists or customers may be distributed with the help of the various marketing distribution channels like professional agents etc. This type of handbook establishes the connection between technology and airlines, customers, media, and service providers, and so on. This system (the Reservations Interline Message Procedures – Passenger, AIRIMP) assists the existing reservations system (the Reservations Interline Message Procedures – Passenger, AIRIMP) in carrying out the booking functions in a systematic and efficient manner. It also helps them to follow the standard procedures and make enable to airlines and other travel industry organizations to perform their day-to-day functions in mostly economic and in a responsible manner to the prospective customers. 5.4 COMPUTERISED RESERVATION SYSTEM IN HOTEL INDUSTRY One of the most crucial jobs of the front office personnel is to make hotel reservations. A potential guest inquiry about the availability of the chosen type of lodging and any ancillary services provided by the hotel. The front desk department must respond to the guests' inquiries. For a guest, reservation increases the chances of a better deal for assured accommodation on arrival. For a hotel, reservation can enable a better management of guest experience during usual as well as peak seasons. Reservation procedure varies depending on the size and brand of the hotel and the reservation system employed. Let us know the details how the front office handles reservations. 5.4.1 Types of Hotel Reservation Systems An efficient and effective reservation system is what adds to the hotel’s profitability. Following are the most popular reservation systems − Whitney System of Reservation The Whitney Paper Corporation of New York invented it in 1940, hence the name. This is a traditional manual reservation system that hotels used to employ in the days before computers. It has the reservation setup listed below.−  Slip for request of accommodation reservation  Whitney slips that records guest name, accommodation type, number, and duration of stay  Temporary/Permanent arrival slip  Guest bill  Guest registration card 99 CU IDOL SELF LEARNING MATERIAL (SLM)

 Correspondence file  Bedroom journal that records daily occupancy of the guest with date, guest name, room type, and room number Let us see how a Whitney slip and the bedroom journal looks like. Whitney Slip Guest Name Date of Arrival Room Type Room Rate Date of Departure Mode of Reservation Reserved By Date Received Reservation Agency if Any: Billing Instructions Date of Confirmation Bedroom Journal Room Number Room Particulars Date: ___________ Guest Name Though this system proved efficient, it generated a lot of paperwork with occasional scope for errors. The drawbacks were overcome by the central reservation system. 5.4.2 Central Reservation System (CRS) It is a computerized reservation system that reduces paperwork and can handle large amount of reservation data effortlessly. In this system, since the guest data and reservation data are stored on the storage disks of the computers, it can be accessed at wish. It is stored in the form of a database of collection of records which can enable searching, adding, removing, or updating any guest related data. The computerized reservation system not only helps to make guest reservations but also helps to forecast how many accommodations can be reserved in an upcoming time period. This is how a CRS typically works − Hotel sales representatives' guests inquire about room availability. It is forwarded to the reservationists at the front desk. The staff gathers information about the requirement and searches the database for available accommodations. The reservation staff member then 100 CU IDOL SELF LEARNING MATERIAL (SLM)