What is a hotel PMS?
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What is a hotel PMS?
A hotel property management system (PMS) is a set of solutions that hoteliers use to manage their day-to-day hotel operations activities such as reservations,front desk,housekeeping, maintenance, billing and invoicing, analytics and reporting. All of these activities can be labor and time-intensive, so the goal of a modern (Cloud-Based) PMS system is to save hotel managers and their employees time and money.
Why do you need a Hotel Property Management System (PMS)?
Today PMS capabilities have expanded beyond core functions like room inventory, reservations, housekeeping and room assignments, to include all areas of hotel operations. Now you can also schedule preventive maintenance, draw up room attendant sheets for housekeeping and even manage your meeting, conference and banqueting rooms. Another area PMSs have significantly advanced is in the area of integrations. Open APIs have made it possible for tech startups, software developers and even well established behemoths to build useful and innovative technology that hotels can access with the click of a button. Integrations with third-party technologies, like channel managers, point-of-sale systems, payment gateways (VISA, Master Card, etc.) and accounting systems, put the power in your hands to choose the right technology to suit your hotel business needs.
Today PMS capabilities have expanded beyond core functions like room inventory, reservations, housekeeping and room assignments, to include all areas of hotel operations. Now you can also schedule preventive maintenance, draw up room attendant sheets for housekeeping and even manage your meeting, conference and banqueting rooms. Another area PMSs have significantly advanced is in the area of integrations. Open APIs have made it possible for tech startups, software developers and even well established behemoths to build useful and innovative technology that hotels can access with the click of a button. Integrations with third-party technologies, like channel managers, point-of-sale systems, payment gateways (VISA, Master Card, etc.) and accounting systems, put the power in your hands to choose the right technology to suit your hotel business needs.
What are the main benefits of hotel check-in software
1. Booseted efficiency, happier guests
Hoteliers who fully utilise hotel management systems use the system’s functionality to speed up and optimise their existing processes. With the right PMS, daily tasks are made much easier to handle provided the system has the right “tools”. These tools, or features as they are called, ensure that the day-to-day hotel business operations are taken care of.
- Streamlines and simplifies standard operating procedures (SOPs) such as posting restaurant receipts, checking guests in and out and makes it possible to add special offers for your store, restaurant and/or spa.
- Integrates to third-party vendor products so that the hotel can make use of all the latest hotel technology such as a channel manager to receive bookings from Online Travel Agents, Revenue Management to optimize income and POS systems for food and beverage management, totally irrespective of vendor.
- Handles check-in and check-out processes: the handling of POS (point-of-sale) transactions, the management of guest relations, and the efficient optimization of housekeeping.
2. Access to hotel data online and on multiple devices
Whilst some users of hotel property management systems (PMSs) access the systems through a desktop computer or a laptop, there are an increasing number of hoteliers who now access the PMS through other devices, such as a tablet or mobile phone.
Of course you don;t need to do this if you are more comfortable with a desktop or laptop, but once you have experienced the freedom and peace of mind that a mobile property management system offers, you will have one less thing to be stressed about.
Mobile access is very useful when trying to manage the multiple different sales channels of your hotel business. Nowadays, in order to stand out amongst competitor hotels you need to be able to respond to requests in real-time which means you need constant access to:
- The channel manager to manage OTA’s (Expedia, Booking.com, etc.).
- Social media (Facebook, Twitter, Instagram, etc.)
- The PMS to manage hotel operations
Embracing the versatility of mobile property management systems marks a significant leap towards operational excellence and competitive edge in the bustling hotel industry. With the power to effortlessly manage OTAs, engage across social platforms, and oversee hotel operations from the palm of your hand, you unlock unparalleled agility and responsiveness.
Transitioning to mobile access isn't just about keeping up with technological advancements—it's about redefining the way you connect with your guests and manage your hotel's presence in an ever-evolving market.
3. Enforce impeccable quality when it comes to guest records and data
Aside from speeding up check-in and check-out processes and making other mundane daily tasks easier to handle, a good hotel management system will also greatly contribute to the way you manage your guest information and data.
A good hotel property management system will give you the power to manage the 3 most important aspects of guest data:
- Firstly, we have data collection, this is where guest information, i.e. name, date of birth, nationality, preferences, etc. is given to the hotel by the guest
- The second stage is data storage, where data is stored safely, securely and in a logical and easy to use way
- The final stage is data utilization, here is where the magic happens for you as a hotelier, with great quality data you can build targeted marketing and advertising campaigns aimed specifically at your target audience.
With high-quality guest data management, you will undoubtedly give guests a more personalised service, improving your relationship with guests and increase your hotel’s revenue in the process.
4. Choose accurate real-time data to optimise decision making
With the proper hotel management system, you have access to the most pertinent and accurate information exactly when you need it. This includes the room statuses, reservations, housekeeping duties, maintenance management and more. You no longer have to sift through piles of data from different sources – everything you need is on one single platform, available to you anywhere and at any time.
Integrations (with open APIs) enable hoteliers to pick and choose the best systems and software to improve their hotel operations without limitations. Being able to use the best technology goes hand-in-hand with maximising revenue.
Functionalities of a PMS
Finding a technology partner that can work with you to understand your unique operational issues and then provide you with the technology to solve those issues is the real reason hotel technology companies (should) exist. Below we look at the most common features and important functionalities of a world-class, modern PMS.
1. Reservations and group bookings
This function makes it possible to check room availability and status, make new bookings, and it shows available rooms across different distribution channels, including the hotel’s own direct channel, online booking engine and the channel manager.
The group reservation function allows group bookings to be made quickly and reduces errors by walking the user through the group booking options in a logical, systematic and easy to use way.
It schedules bookings and displays information about current and upcoming bookings on a comprehensive dashboard right within the PMS. Collection and identification of all payment methods are generally processed via this module too. The system also sends confirmations, to the guest or an organization, via multiple channels such as email or SMS, once the reservation is complete.
2. Front desk
A front desk module makes it easy for managers and staff to view and update room status’, check guests in and out, and process payments:
- A user-friendly front desk module minimises input-errors and time spent on administration, allowing receptionists more time to concentrate on the guests themselves.
- Some PMS also offer integrations or apps that make it possible for guests to check-in via a kiosk or with a QR code. This is a great feature for hotels looking to go contactless.
- A good hotel PMS has a night audit function that is fast to run, simple to customize, and provides comprehensive reports and backups.
3. Housekeeping
The housekeeping functionality of a PMS keeps properties of all sizes operating at maximum efficiency. Fast room turnover, as a result of alleviating bottlenecks when it comes to room status issues, is the primary function here.
The hotel PMS automates housekeeping administrative tasks to give housekeepers more time to concentrate on getting rooms clean for guests. A great example of where this adds the highest value is with attendant sheets.
Attendant sheets are drawn up by the system based on; number of rooms, room attendants and time taken to clean a room. The system then generates a housekeeper schedule that optimises the efficiency of the housekeeping department.
A modern housekeeping system will indicate which rooms are dirty, clean, inspected and out of order and allow managers to quickly switch between these options. Once the room is clean, room statuses can be updated intermittently, via a desktop, or instantly with the help of a mobile device and a cloud-based PMS.
Ultimately the housekeeping function of a PMS is there to ensure rooms are cleaned and inspected as quickly and efficiently as possible so that hoteliers can resell those rooms as quickly as possible.
4. Cashiering, billing and invoicing
Cashiering, billing, currency exchange and invoicing are complicated and time-consuming if you do not have the right functionality in your PMS to help you.
If you have ever been at the wrong end of a spreadsheet that is not balancing because it is out by one digit, you know the pain. A modern hotel PMS will uncomplicate financial admin, making it really easy for your managers and staff.
Good cashiering and billing systems have the following capabilities:
- A Tokenizer - Takes on the storage and encryption of credit card data. In modern systems only the replacement number, the so-called “token”, not the actual credit card number, will be saved and displayed. Access to the Tokenizer is limited to authorised employees only.
- Multi-currency module - Handles the exchange and acceptance of all major currencies and supports up-to-date exchange rates.
- Cashier numbers - Creates unique cashier numbers for each employee or a floating cashier, if needed, for each shift.
- Quick post/shop - Reduces guest waiting time by minimising the time it takes for essential data (room number, item, description, date and amount) to be captured and posted for fast-moving goods like peanuts, cool drinks and toothpaste.
- Petty cash - Makes sure that all petty cash transactions are recorded accurately and logically so that not a single cent of petty cash goes unaccounted for.
- Fiscalisation - Fiscalisation is a collection of fiscal regulations designed to avoid any intended or unintended underpayment of any specified sales tax by a hotelier when conducting a transaction with a guest. It is quite intricate and needs to be set up by experts who know what they are doing. Fiscalisation functionality is very complicated to code into any system, so when possible, it is best to have a PMS with fiscalisation preloaded.
- Interim invoice - Creates an invoice for a certain time period. When guests request interim invoices the settings can be adjusted depending on whether an invoice number is needed or not. It is important to remember that in some countries if no invoice number is printed the invoice is not valid.
- Pro forma invoice - A pro forma invoice is a preliminary bill sent to guests in advance. The pro forma invoice will typically display the guest charges and other important information such as company name, tax number, address, etc. but is not a valid tax invoice.
- Advance invoice - Allows the anticipated charges for the guest to be posted and then creates an invoice for them.
- Void/Delete invoice - This function allows for invoices to be removed from the system. This function is usually customized depending on the hotel’s requirements, and what the legal requirements of the local legislature are.
- Multiple-language templates - Very useful for hotels with guests from all around the world that need invoices in their local language.
5. Maintenance
Maintenance is 80% about the thorough organising and implementation of routine planned maintenance and 20% about fixing things that break during the normal course of operations (unplanned maintenance). A modern maintenance system can benefit the maintenance department, and the hotel as a whole, by automating planned maintenance of your property.
One very effective way of doing this is by having a simplified ticketing system that enables everyone in the maintenance department to access work instructions, task lists and notes from a desktop or mobile.
Ticketing functionality ensures that everyone knows what they need to do and when they need to do it, reducing downtime for staff, equipment, and sellable rooms, thereby saving the hotel precious time and money in the process.
6. Front desk home screen
The main screen on a PMS is called the home screen, homescreen or start screen. It’s where all the action takes place: where you start the day and where you can easily see what’s going on via notification and status icons.
Home screens usually consist of a grid of application tiles or shortcuts that can often be arranged to your liking on the page, and serve as the hoteliers main method of accessing key PMS functions.
Home screens also tend to include a dock along an edge of the screen, where users can access the different functions of the PMS. Most PMSs allow users to customise the home screen in order to further organize application tiles.
7. Reporting and analytics
Keeping track of revenue, reservations, and room inventory is essential to hotel business growth and it can be a full-time job. Generating timely and consistent reports is a daily task and a good PMS will enable you to do this with relative ease.
Reports give hoteliers valuable insights into their hotel performance, a few essential reports that are standard in most PMSs are: The Daily Report, Occupancy Forecast, ADR (average daily rate) and RevPAR (revenue per available rooms).
Worthwhile reporting functions will assist managers to analyze how the hotel is performing at base level so that they can identify potential issues, such as overbookings, and potential opportunities, such as untapped markets, thus improving the overall performance of the hotel.
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8. Meetings, incentives, conferencing and events (MICE)
When optimizing MICE processes, intelligent technology solutions are particularly important because they provide a central source-of-truth where all staff can record and access data that is essential to the efficient management of conferencing and events.
With proper MICE functionality up to 71% time savings can be achieved while minimizing costs and optimizing high service and quality standards (when compared to non-systemic processes).
9. Cloud-based PMS
A cloud-based hotel PMS is, according to some, more reliable and secure than an on-prem system, due to the consistent automatic refreshes, updates, and the secure infrastructure it is hosted in.
With the mobility of a PMS that operates in the cloud, management and staff with the right credentials can adjust rates, view reports and manage operations anywhere, anytime and from any smart device. Apart from being convenient and technologically advanced, cloud technology perfectly suits the fast-paced, on-the-move, business environment of today.
When needed, the shift to remote working is absolutely “painless”, and there will be no interference to the usual workflow because all the hotel’s data is readily available in the cloud.
These are some of the benefits:
- It is always up to date: With cloud technology, there is no PMS hardware to maintain and no software to purchase, which puts more money in your pocket to improve operations, streamline processes and drive the success of your hotel.
- You can generate more direct bookings: by booking on your website or your Facebook page in real-time, and you can integrate with a channel manager to push your rates and availability to all connected channels. When a booking is made on a channel, it’s automatically updated on the PMS.
- It can more intuitively help you see what people are saying about you online and how your reviews across all platforms affect this. You can choose to automatically prompt guests to leave reviews in order to boost your online ratings and spread the word about your hotel.
- It is great for a growing hotel, as you can’t outgrow it. You’ll be able to scale up services as you expand, and you’ll have easy access to technical support 24/7 without having to have a dedicated IT team on staff.
Find out more about our Cloud PMS
10. Channel management
While an online hotel booking engine handles direct sales, a channel manager controls the distribution channels. This functions to eliminate the manual management of the booking process and facilitates all the associated transactions, automatically.
The system connects directly to the PMS and provides a single interface to control and distribute room inventories across the various channels. All bookings are synchronized, and room availability is updated in real-time across all channels.
Discounts and special offers can be promoted easily and it also ensures consistency in terms of the hotel’s rates. So no more rate parity headaches!
11. Hotel online booking engine solution
A booking engine (or web booking engine) is a tool that enables your hotel to accept direct bookings from guests on your website, which is why it is often referred to as the hotel’s “direct channel”. In addition, the online booking engine integrates to your PMS in order to automatically update essential booking information such as arrival and departure date, room rate, number of guests, room type and guest name(s).
Guests must be able to easily select their required dates, room rate (bed and breakfast, room only, dinner, bed and breakfast, etc.) and room type (single, double, twin, etc.). If there is no availability, according to the chosen filters, the booking engine should propose alternative dates to improve the probability of securing that booking.
The upselling offers and higher-margin ancillary sales that so often bring in much-needed profit need to be automatically offered to the right customer-segment during the booking process.
12. Revenue management system (RMS)
Hotel revenue management is the application of methodical analytics that predict guest behaviour at micro-market levels and optimizes service, product availability, and price to maximize revenue growth. The primary aim of revenue management is selling the right service to the right guest at the right time for the right price. The essence of this discipline is in understanding guests’ perception of service value and accurately aligning service prices, placement and availability with each potential guest segment.
Revenue management systems also track key performance indicators such as occupancy, revenue per available room (RevPAR) and average daily rate (ADR).
Advanced and highly sophisticated algorithms use historical data from the PMS as well as information on competitors’ rates, seasonal activities and local events to help determine optimal rates for maximum income generation. By using demand-based pricing from a revenue management system, Lapithus hotel increased its average room-block revenue by 30%.
Dedicated pricing tools enable hotel managers (or revenue managers) to automatically adjust room prices across all distribution channels, set up restrictions, and create packages and special offers. When accommodation providers use data, analytics and technology in unison, revenue invariably increases.
Benefits of using a PMS
Five years ago, as many as 25% of U.S. hotels still reported using pen and paper or Excel spreadsheets to manage all of their front-office tasks like room bookings, billing, and room availability. This can be an inefficient way to do things in the long run. And what would happen if your spreadsheet or paper records got lost or destroyed?
- Using a hotel management system can save you time by automating recurring tasks like updating room rates and availability, sending out reminder emails to guests prior and upon arrival, and invoicing your guests.
- You can also connect your property management system to a channel manager so that you can take bookings on various channels online, and they will all arrive in your PMS
- With a PMS system, your staff spends less time on administrative tasks and more time on satisfying your guests.
- It can increase your revenue by tracking your performance and gathering data about your hotel, analysing it, and creating reports. You can use your property management system to adopt a dynamic pricing strategy, so you can keep more of your rooms filled at rates that make the customer happy.
Speak to one of our PMS experts
FAQs
A cloud PMS is a type of hotel management software that is hosted on remote servers and accessed through the Internet. These cloud services are managed by third party vendors.
Unlike traditional on-premise PMS software that requires installation and maintenance on local servers, a cloud PMS is deployed and maintained by industry professionals.
- Cloud
Cloud-based PMSs runs on a SaaS (Software as a Service) platform located on the internet. This is an innovative and easy way to manage hotel operations with low IT costs. Leading cloud-based PMSs can run off any modern internet-connected device. Kill the CapEx immediately! - On-prem
The on-premise or legacy-based hotel system runs software on a computer via a server that is physically located at the hotel. All of which you have to pay for in full. Standard requirements usually consist of a PC or laptop with a good quality processor, an operating system (such as Windows 10), a database and a network with at least a 1GBPS capacity.
- Cloud
One of the greatest advantages of a cloud-based PMS is it does not need any special installation or downloads. A few clicks by a novice user is usually all it takes. - On-prem
An on-prem PMS usually has comprehensive infrastructure and technological requirements. These include hardware, software, databases and IT infrastructure. If you don’t already have these installed in your hotel, you will need to get them installed by a professional.
- Cloud – No
Cloud-based PMSs do not need dedicated IT personnel for maintenance and other day-to-day running of the PMS because each and every function is executed and the information is stored and processed, off-site, in the cloud. Companies that host cloud services have teams of IT professionals that maintain and manage the system for you. - On-prem – Advisable
The technical requirements of an on-prem system add considerable cost to implementation and maintenance. It is advisable to have immediate access to an IT professional that is able to troubleshoot the system.
- Cloud
Cloud software hosts, like AWS, have the expertise and budget to implement robust security measures and procedures, including automatic data backups and 24/7 monitoring. This makes cloud systems a slightly more secure option than on-premise systems for independent properties. - On-prem
With an on-premise system, data security is the hotel’s responsibility. In addition to installing firewalls and anti-virus programs on internet-enabled computers, keeping data safe requires the hotel to secure private networks, restrict access to server rooms, perform manual data back-up processes, and to have back-up plans, servers, computers, and generators.
Note: Anti-virus software and strict cybersecurity procedures is a good idea for any computer accessing the internet.
- Cloud
Cloud-based systems are most commonly available via a subscription pricing model, typically based on a monthly fee, and normally a one-time setup fee. The pay-per-use subscription model makes cloud PMS an operating expense, and while the monthly cost adds up over time, the shift from capital to operational expenditure makes cloud-based PMSs a more affordable option for many smaller properties. With a cloud-based PMS, there are no hardware expenses (if your hotel has a computer or mobile device) and software upgrades are included as part of the SaaS rental package. - On-prem
On-premise hotel management systems are a big initial investment and can cost hotels a significant amount for the software licences. Additional costs include annual maintenance, hardware and upgrades. An on-premise system is a capital expenditure that often requires its own financial plan, which can put it beyond the budget of many small and mid-sized hotels, B&Bs, motels and lodges.
- Cloud
Cloud PMSs can be easily integrated with most third-party vendor systems, especially if they are using common HTNG (Hospitality Technology Next Generation) coding and open APIs (application program interfaces). The good news is that all the serious hotel technology companies use APIs and HTNG. The ability for cloud-based PMSs to integrate to existing technologies greatly reduces the hotel’s IT requirements as you can keep existing technology or add new technology from suppliers of your choice as you are not locked into one vendor-preferred supplier. - On-prem
On-premise PMSs can be integrated with external systems such as channel managers, point-of-sale (POS) systems and revenue management systems too, however, it can be a complex process that requires technical know-how, additional hardware, and an experienced IT development team to see the project through.
- Cloud
Cloud-based PMS are accessible via a secure login from any computer or mobile device connected to the internet, anywhere in the world at any time. Modern cloud PMSs offer a high level of accessibility as they are purpose-built to work via the internet. - On-prem
While it is possible for on-premise systems to be accessed remotely from an off-site computer, it requires additional technical setup and, possibly, the installation of desktop virtualisation products onsite. This will require some specialist IT knowledge.
Note: Remote access performance, for both cloud and on-prem PMSs, can be affected by various factors, including server workload, SSL certificate issues and network failures.
- Cloud
Upgrades are fast, frequent and usually free-of-charge with cloud-based systems and can usually be deployed instantly. This means that accommodation providers always have access to the latest version of the PMS, including new features and innovations that keep them ahead of the competition. - On-prem
On-premise systems can face lengthy development cycles, compared to cloud-based systems, and require relatively expensive and, often, time-consuming upgrades to remain current.
An on-prem PMS is not dependent on an internet connection. Therefore, they can be very useful in remote areas with unstable connectivity.
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