Interact Systems, Inc. has developed software tools that help hotel chains solve application integration problems. Interact’s Application Integration Server provides a two-way interface between central reservations systems and property management systems .
At least two important trends in the hotel industry are relevant. First, hotels are shifting away from the manual booking of room reservations and electronic bookings will continue to increase as more bookings are made over the Internet. Second, competitive pressures are forcing hotels to implement yield management programs and to improve customer service. By integrating the CRS and PMS through Interact’s AIS, inventories can be better managed, yields improved, and customer service enhanced.
A. What are the advantages of having formed the company as a corporation?
B. What other organizational structures would have been appropriate?
C. Could Interact Systems qualify for S corporation status with the IRS? Why or why not?
D. What is the intellectual property involved in Interact Systems’ business model?
E. What methods of protection are available for Interact Systems’ intellectual property?
