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 its 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 otherlodging 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.