Hotel Management system Technology is making deep inroads into the hospitality industry, and hotels across the world are looking to use technology to make operation smooth and efficient. The quest for performance and efficiency in the hospitality industry has given rise to the development of a host of hotel management systems. These are also popularly known as Property Management System (PMS), and Hotel ERP (Enterprise Resource Planning) – if you are looking at a larger, more comprehensive management system. In the early 90s Gartner, an information technology research and advisory firm, came up with the term ERP to denote enterprise management software which automates a large number of business function such as human resource, finance, accounting, supply chain management etc. This software incorporates best practices in all the automated departments so as to facilitate rapid decision making and cost reduction. Over the recent past, many hospitality properties especially those that are growing chains or planning a global presence, have upgraded from smaller, simpler property management systems to the larger hotel ERP. A hotel ERP is a solution that is especially designed for the niche needs of large hotel operations. What is a Hotel Management System? A hotel is a hive of numerous operations such as front office, booking and reservation, banquet, finance, HR, inventory, material management, quality management, security, energy management, housekeeping, CRM and more. All these activities take place simultaneously and managing these diverse activities manually can be a difficult process. This led to the introduction of property management systems or hotel ERP that automates a host of repetitive functions. Integrated, automated software also means management can optimize hotel operations, gather business intelligence as I wrote in my last blog Technology for Better Business Intelligence and thus keep a tight control on costs.
With growing competition in the industry it’s important for a hotel to understand the needs of their guest, for example, things like what gets sold most, what guests demand for most, what food material get used least and results in loss, a good hotel management software, allows hotels to do just that. Difference Between a Property Management System and ERP There is one question which I frequently come across when interacting with hoteliers, irrespective of hotel size or market segment. What is the difference between property management system (PMS) & enterpriseresource planning (ERP), if at all there is? Well with hotel ERPs only just coming in and technology rapidly changing, this is a rather pertinent question. The answer is yes there is quite a lot of difference between a PMS and an ERP. A property management system (PMS) usually consists of front office software and other best of breed solutions. The PMS served hotels well for a reasonable among of time until now, when hotel operations have grown in complexity. Hotel and restaurant chains are the new trend and global chains are making their way into India. As complexity of hotel operations increases, a PMS is woefully inadequate and often results in integration issues too. Additionally, since solutions like telephone, finance, front office software may be purchased from different vendors, licensing can add up to costs. Things are different for an ERP which is usually a comprehensive solution from a single vendor. Although the concept of an ERP in the hospitality industry is still new, it offers numerous advantages in terms of smooth seamless use of technology, greater automation, greater visibility into hotel operations, optimized use of manpower, reduced revenue leakages and higher resultant profits. How to Choose the Right Hotel Management System for Your Hotel? When a hotel is looking to upgrade their software the natural question that comes to mind is which Hotel Management System should I choose?
As installing a hotel management system is an expensive affair, hoteliers need to make a choice with care. The first thing to do is
Look at your hotel needs and areas of operation you want to simplify. You may also want to plot your future needs to ensure the software can scale up as and when you need it to
Make a list of the features you are looking for. One of the main deliverables of a hotel ERP is its business intelligence. Does the ERP you are evaluating give you a bunch of in-depth reports that assist decision making?
Always check if the hotel ERP provider has been in the business for a considerable amount of time, has tested the solution across market segment and geographies if possible. A hotel cannot afford downtime, and so ensure your ERP provider also delivers high quality customer support
Take help of a qualified consultant or delegate someone from within the hotel with exposure to technology to access your needs before you opt for an ERP. This helps you understand you requirements more precisely
Hotel Reservation System A hotel reservation system, also known as a central reservation system (CRS) is a computerized system that stores and distributes information of a hotel, resort, or other lodging facilities. A central reservation system is a tool to reach the global distribution system as well as internet distribution systems from one single system. A CRS assists hotel managers in managing their online marketing and sales, allowing them to upload their rates and availabilities to be seen by sales channels that are using the CRS. Sales channels may include conventional travel agencies as well as online travel agencies.
Modules in a CRS include:
Reservations Profiles Groups and blocks Rate and inventory control Administration Reporting Global distribution interface PMS interface
Information commonly stored in a CRS includes
Room types Rate plans architecture Room rates and conditions (guarantee, deposit, customized cancellation rules, minimum length of stay, maximum length of stay, closed to arrival, arrival not allowed, departure not allowed...) Room inventories Generic hotel information (address, phone number, fax number) Distribution content (descriptions, amenities, pictures, videos, local attractions...) are stored in the CRS or in a content management system Reservation information Geocode information Nearby IATA cities and airports
Contents
1 Reservations 2 Profiles 3 Groups and Blocks 4 Rate and inventory control 5 Administration 6 Reporting 7 Global Distribution Interface 8 Web-based PMS Interface
Reservations
Individual, group, shared, and multi-rate reservations Add, change, and cancel bookings including multiple legs Standard, package, negotiated, and group rates (via on screen button) Multi-Currency rate displays Sell messages dynamically linked to CRO office, property, rate or allotment code Geographical and regional single or multi-property search Property details including pictures, raster maps, rate and room type lists, nearby attractions, and point of interest information Links to external context databases to provide in-depth property, rate, and room details List of room types and rate codes List of rate availability strategies and restrictions User definable products by rate code Waitlist capabilities Quote rates system set up initial and secondary rates per property, per day Query system for reservation action items Intuitive, logical sales process flow
Profiles
Individual guest, groups, corporate, source, travel agency, and wholesales profiles. Multiple address and phone number capability for each profile Membership or club numbers and tracking Comparison and merging of profiles Notation for special commissions for client, agent, or source Relationship linking Unlimited credit card numbers Outstanding history statistics for past and future stays Profile protection Profile privacy Secure privacy Nightly process to identify duplicate profiles and merge them automatically
Groups and Blocks
Groups room control Room inventory allotments with cutoff date or days Elastic room limits to be sold out of general inventory beyond block Tour series (recurring group stays) Super Group Blocks -single group staying at multiple properties Multiple rate assignments for shoulder dates Blocks fully integrated with selling screen Rooming list
Rate and inventory control
Single and Multi-Property availability display Unlimited room classes and room types Multi-level inventory control by room class and room type Strategic overbooking levels Unlimited number of rate plans Detailed rate availability display Rates in multiple currencies
Rates confirmed in multiple currencies Flexible package price calculations Negotiated Rates Versatile tax calculations Chain cross sell capability with schedule Supports generic room types Room and rate management and restrictions Ability to open/close room types by rate code, property, room class, etc. Central interface to yield systems and ability to update the properties with yield information via the Two-Way Interface (where supported) Best available rates Rates based on rates Rate seasons Unlimited number of guarantee, deposit, and cancellation policies, by property,
Administration
Transaction activity by agent and CRO User definable Global Messaging display On-line, written, or faxed confirmations Multiple Chain (brand) definition Brochure requests and on-line customer surveys Extensive revenue and forecasting reporting Security controls Multiple time zone support User definable Closing Script Configurable Profile, Booking, and Display Information Screen layout Multi-tiered source of business tracking Multiple configurations to support regrets and denials manage cancelation process
Reporting The CRS reporting system provides a number of standard reports. Additional reports can be created using the integrated report generator by your IT Specialist. System reports may be generated automatically and
may be run daily, weekly, monthly, yearly or manually upon request. Reports include:
Expected Arrivals Reservation Property Forecast Total Booking Activity Stay Activity Monthly Booking Activity Summary Daily Booking Activity Summary Property Detail Property Detail - Room and Rate Information Agent Activity Automatic Allotment Release Delivery Queue Purge
Global Distribution Interface The CRS offers a GDS (Global Distribution System) interface that allows travel agencies and consortia to confirm bookings and send the information to their CRO. For example the Pegasus Switch gives access to travel industry users of these major applications:
Sabre Amadeus CRS Worldspan
Web-based PMS Interface A CRS offer a two-way interface that allows the CRS to communicate with and exchange information between the CRS central database and the front office PMS (Property Management System) at each property. The two-way interface includes features that allows the CRS and PMS to work with the same information despite differing data structures and values.
