In order for a hotel business to thrive amidst competition, there are two key elements required: First, it must possess an online presence that simplifies the reservation process. Second, it is imperative that they offer exceptional customer service to encourage repeat patronage. Achieving customer satisfaction involves automating daily operations and administrative duties, enabling consistent and reliable delivery of services.
The workings of a hotel involve numerous departments and require comprehensive monitoring. To achieve this, hotel managers employ a range of instruments such as paper forms, spreadsheets, and integrated property management systems.
This article will discuss property management systems (PMSs) that manage reservations, front and back office tasks, channel management and other functions. You’ll be informed on the key features of PMSs, compare products of various providers and get advice on selecting the best suited system for your hospitality business.
What is a property management system?
A software known as property management system (PMS) assists hotels with reservation management and administrative duties such as front-desk operations, reservations, channel management, housekeeping, rate, occupancy management, and payment processing. While primarily focused on managing reservations and finances, PMS software may also offer features for housekeeping and human resources management. Overall, PMS software streamlines both internal and external hotel operations.
Although hotel property management systems were first introduced in the 1970s, not all hotels have implemented them to this day, as noted by Adam Harris, CEO of Cloudbeds, in a recent interview with Skift. Harris mentioned that the adoption rate of technology in the hotel industry remains low and that the average expenditure on technology is much less than it ought to be. Furthermore, he explained that fear of change is the main reason why many potential customers are hesitant to sign up for their services, rather than opting for a competitor.
Despite being traditionally slow to embrace technology, the hospitality industry has now progressed significantly. The “Hotel Management Software BuyerView” report from Software Advice in 2015 revealed that barely a third of hotels were using specific software, with a quarter of them still relying on manual pen and paper to manage their hotels, and another 16 percent neglecting to employ any hotel management system whatsoever. Currently, however, as per the Stayntouch 2022 Technology Sentiment Report, some 81.7 percent of hotels have implemented at least one form of technology during the pandemic.
Hotel operators have begun seeking inventive resolutions like self-check-in kiosks, in-room management systems, mobile access keys, and electronic payments. Several major industry players have already incorporated advanced technologies utilizing an Internet of Things framework, however, there are still numerous outdated systems in operation.
Hotels might find the older generation of PMS software to be inadequate due to their limited functionality, dependence on supplementary modules, or lack of compatibility with other essential hotel management software. Hence, there’s a growing demand for a comprehensive solution that can manage all the necessary processes in a single go. The 2022 Hotel Technology Survey revealed that over 80% of the participants desired to gather more knowledge about technology.
Hotel property management systems are utilized by a variety of establishments, including large hotel chains and small hostels. Such systems enable hotels to monitor the status of room bookings and manage reservations. Moreover, PMS allows hoteliers to oversee back-office procedures, food and beverage services, and track room occupancy rates. Let us delve into the most widespread functions supported by PMS.
Main modules of property management systems
A single piece of software in a modern property management system integrates various work environments. The combination of modules and functions varies among providers, and individual module functionality may differ slightly. Furthermore, certain vendors offer their systems as separate modules that can be incorporated into a hotel’s current solution. Presented below is the fundamental framework of a hotel PMS.
Please note that it is challenging to rank the importance of PMS features as each one is crucial. Nonetheless, all hotel property management systems should have a reservation system, front-desk operations module, and website booking engine, regardless of the property. Typically, other necessary modules encompass channel management, housekeeping, revenue management, analytics, customer data management, and reporting. Larger hotels or resorts should also incorporate point-of-sale (POS) services and back-office modules.
Reservation
In the contemporary hotel industry, the primary means of generating sales is through online bookings. As a result, the reservation module becomes an essential component of any property management system, facilitating the efficient management of online reservations. A central reservation system (CRS) or other booking platforms can either be integrated into a PMS as a separate module or used as a standalone internal solution for the hotel.
The front desk receives inventory data and dates from a hotel reservation system, which should be connected to the website booking engine and other distribution channels. Independent hotels manage their own reservation systems, whereas chain hotels operate one central reservation system for multiple locations. If a hotel or hotel chain already utilizes a specific reservation software, PMS ought to provide integration with the current service.
The reservation module’s crucial operations comprise of:
- Room bookings. The system checks room availability and status, shows free rooms across different channels and the website booking engine. This function monitors double bookings and allows group reservations. Then it schedules bookings and displays information about current and upcoming bookings on a dashboard.
- E-payments processing. Software collects online transactions and classifies them according to their types and categories.
- Management of room inventory and allocation. Reservation tools prevent overbookings and double bookings. In some software, this function is part of a channel management module.
- Reservation emails . The system sends confirmations to guests after they complete their booking. In some PMSs, this function is a part of the front-desk operations module.
- Activities booking . Some software allows guests to book not only accommodation but also activities with this system.
Front-desk operations and room management
The inclusion of a front-office module enables a front-desk manager to access and manage room reservation details, register and accommodate guests, and execute financial transactions. During check-in, hotel guests prioritize speed and efficiency, which highlights the significance of receptionist assistance. As such, the front-desk personnel must be adept at providing swift and effective service to guests.
Self-service check-in kiosks can be integrated with certain property management systems, enabling guests to check-in or out using a QR code. For example, Marriott and other companies use digital self-services to automate check-ins, providing valuable insight into the process.
Room status can be easily checked by the front-office manager using the front-desk module, which provides them with the latest updates on all current and future reservations. The module ensures that room status is promptly updated and also allows for automatic room allocation and convenient room changes.
The management of electronic key cards, payment processing, and guest receipt issuance are all included in the Keys Management module.
Users can conduct night and shift audits as well using the front-office module alongside their daily audits.
With the increasing advancement of hotels in technology, the management of in-room controls has gained significant importance. This is because it allows for remote access to the automated systems in the room, such as lighting and HVAC, to ensure readiness for guest arrival.
Interface for front-desk operations.
Channel management
The software for managing channels provides a unified platform for managing and dispersing supplies to various channels, including GDSs, OTAs, wholesalers, direct booking platforms, and others. The central reservation system, to which the channel manager is connected, maintains information on hotel room availability and pricing, which is disseminated through distribution channels. Travelers seeking to reserve a room or accommodation online have access to the available room inventory across multiple platforms. Moreover, the channel management component streamlines booking-related transactions.
Inventory can reach diverse audiences depending on the distribution channels used. Being connected to OTAs and some airline websites can expand the reach to a greater number of potential guests, particularly those who pre-book flights or plan trips beforehand. Meanwhile, metasearch sites facilitate price comparison across various channels, enabling customers to make informed decisions. GDS connections, on the other hand, are useful for securing non-leisure traveler bookings, as well as group reservations.
Direct distribution via booking engine
A hotel’s website equipped with an online booking engine serves as a significant distribution channel as it enables tourists to make direct reservations without involving travel agents and OTAs.
Direct bookings play a critical role for hotels and are essential for their success.
Enabling direct booking for loyal customers is essential, and online hotel reservation should be accessible for those discovering it through the website. The booking engine acts as an extra sales channel for hotels when synchronized with their central reservation system and website, conveniently processing payments through integrated payment gateways.
Furthermore, reservation platforms commonly facilitate the practice of upselling, which involves presenting customers with options for room upgrades or additional services, as well as bundling these options into packages.
Revenue management
Implementing a PMS is a significant move in enhancing a hotel’s revenue management metrics, including Occupancy, RevPAR, and ADR, which are critical in assessing its financial achievements. Despite GDS and OTA integration’s role in optimizing these figures, revenue management systems guide managers on how to tweak processes for better outcomes and financial control.
According to studies, most hotel owners acknowledge the significance of revenue management. Duetto, a tech provider, conducted a 2022 study that revealed 67.6 percent of participants presently employ a revenue management system, while 77.6 percent anticipate a growth in their hotel tech investments over the next three years.
Utilizing machine learning to predict occupancy rates and determine inventory pricing adjustments, the revenue management component of the PMS maximizes total room revenue.
Dynamic pricing is supported by this function, which utilizes algorithms to assist hotels in setting room prices using data from past bookings, while simultaneously tracking the rates of competitors as well as local events and weather conditions. This feature helps to enhance pricing strategies and ensure that optimal rates are set across all distribution channels to increase room sales. For further information on revenue management, please read our article about how machine learning is revolutionizing this field in the hotel industry.
Housekeeping
Housekeeping staff can be connected to the front office using a PMS module specifically designed for managing PMS housekeeping. The front-office manager is able to allocate tasks by creating a list and the housekeepers can in turn update the status of each room. For those using a cloud-based PMS, housekeepers have the option to update their assignment or room information through a mobile app or tablet linked to the module. Additionally, maintenance tasks and reports are stored within the module for users to easily access.
The primary purpose of this module is to manage housekeeping and property maintenance tasks. Its housekeeping features allow for the management of room statuses, assignment of maids for room cleaning based on block or floor location, and the creation of task lists for housekeepers. Maintenance management records hotel disruptions and repair activities and assigns an attendant to resolve issues.
CRM and customer data management
Collecting and organizing guest data is essential for hoteliers to maintain communication with present and past customers throughout and beyond check-out. Integrating the front desk and reservation system with the CRM module facilitates the collection of all guest information from these channels and saves it in an easily accessible database. This setup also allows guest contact information to be stored before and after their stay. Though, if a hotel already possesses a CRM system, the PMS should join with it.
In addition to its capability to arrange promotions, evaluate guest experience, and streamline pre- and post-stay services, the module can facilitate the implementation of membership and loyalty programs to tailor the guest experience for hotel chains and resorts, thanks to the assistance of the CRM module.
Reports and analytics
Business owners use analytics to keep track of current operations and assess business performance. A PMS can function as a valuable business intelligence tool by gathering pertinent data pertaining to the hotel industry and presenting hoteliers with several kinds of automated reports. These reports could include night audit records, reports on room and tax, shift audit summaries, arrival/departure records, housekeeping summaries, or other regular reports, depending on the software.
Back-office management
The management of a hotel team, administrative hotel operations, and back-office operations can be easily achieved using this PMS module. The module’s features may encompass those of a back-office management module, such as:
- Event management (conference and reception organization) and catering,
- Spa and gym management (sometimes it’s a separate, optional module),
- Staff management (human resources management in back and front office: shift management, staff invoicing, etc.),
- Consumption costs and hotel spendings analysis,
- Inventory analysis,
- Sales and management of promotional campaigns, and
- Reviews management.
The back-office module assists in the smooth functioning of internal operations, streamlines employee management, and commonly incorporates features related to accounting and finance.
Point-of-sale services
Many hotels offer amenities like restaurants, gyms, and spas. If a hotel has multiple payment terminals, a POS system is necessary to properly process transactions from various sources. By using a POS module in their PMS, hotel managers can add extra charges or discounts to the customer’s final bill, such as:
- Spa, gyms, and other activities;
- Food and beverage services (restaurants, cafes, breakfasts); and
- In-room services, mini-bar items, TV, or Wi-Fi.
Apart from the automated processing of payments, a thorough point of sale module has the capability to aid in managing inventory, gather data pertaining to clients’ buying patterns, produce reports on sales activity, and centralize financial information.
BONUS: Best Restaurant Reservation Software
With restaurant reservation software, customers can book a table on the internet and notify the proprietors of new reservations, cancellations, or absences. Moreover, an online reservation program could include features such as in-house table management and waitlist capabilities to regulate the amount of occupancy or enable the sale of event tickets on the internet.
BEST OVERALL
Tablein
Tablein secures the top position as the most cost-effective and user-friendly program for managing your restaurant reservations. Take command with Tablein.
Despite not having the same level of recognition as Yelp or OpenTable, Tablein offers small and medium-sized restaurants with comprehensive solutions for managing reservations and enhancing customer satisfaction. This reservation system stands out due to its reasonably priced options, powerful features, and efficient installation process.
Tablein operates differently from other programs in that it doesn’t require the installation of an app. You can use it by accessing it via a browser on any device, and the adaptable platform will automatically adjust to fit the screen size of your cell phone, tablet or desktop.
BEST FOR CUSTOMIZATION
Resy OS
Resy OS software enables customization of floor plans, communication, and employee access to suit individual preferences.
Restaurants can receive both reservations and exposure on the Resy platform, which boasts 35 million users. The Resy OS system enables restaurateurs to personalize each stage of the reservation process, earning it top marks in the customization category.
Guests and employees can access Resy OS through both web and mobile apps, enabling them to review or make reservations on any device.
BEST FOR EASE OF USE
Eat App
You can conveniently reach reservations, customer information, table administration, and promotional materials from all types of gadgets.
Eat App is a comprehensive platform that allows users to manage table bookings, occupancy restrictions, and analytics in one place. The app’s management tools, visual representations, and editing features are easy to use, making it the most user-friendly option available.
BEST LINKED TO POS
OpenTable
Connect your restaurant booking system with 20 different POS systems.
With over 50,000 eateries globally, OpenTable accommodates more than one billion diners annually. Unlike other reservation software that imposes steep monthly fees to facilitate integrations with restaurant POS, OpenTable effortlessly links with renowned systems, presenting itself as the ideal option for establishments looking to connect their reservation system with their current POS program.
BEST FOR CONSUMER-FACING RESERVATIONS
Yelp Guest Manager
Yelp Guest Manager is designed to provide an effortless reservation management experience while simultaneously bringing satisfaction to guests through their highly-rated mobile apps and commitment to customer-centric communication.
Yelp has accommodated more than 433 million customers since 2017, establishing itself as a leading platform for discovering eateries, placing food orders, or making table reservations. Its consumer-oriented booking system, Yelp Guest Manager, is known for its user-friendly design and customer-centric features.
BEST FREE SOFTWARE
GloriaFood
GloriaFood’s restaurant reservation software lets you receive limitless bookings and orders without any setup fee or subscription cost. The platform’s all-in-one system manages not only reservations, but also pick-up orders, delivery orders, and advance orders. Unlike some competitors that offer temporary free deals, GloriaFood’s software is permanently free of charge, which makes it the top complimentary restaurant reservation software.
Bottom Line
Choosing the most suitable software for your restaurant amidst numerous reservation options can be daunting. Begin by identifying your budget and indispensable features such as waitlist management, customer-focused apps, or visual floor planning functions. Evaluate the restaurant reservation software that aligns with your business needs and caters to your customers’ preferences.
