What’s the importance of Property Management System? This is a question asked by multiple contemporaries as well as traditional hotels due to the rising popularity of property management systems. A hotel is a busy sight. With so many guests to serve, the staff, more often than not, is on their toes round-the-clock. It is a property full of movement and energy, and thus, is not easy to manage.
However, technology is making property management a smoother process for hotels. Using a property management system or PMS, hotels can efficiently monitor their property and initiate necessary actions.
Not just that, the importance of Property Management System for hotels is huge and vital. Thus, in this blog, we will list the advantages of PMS in hotels.
What is a Property Management System (PMS)?
A hotel property management system is software that allows it to take care of its day-to-day operations and tasks efficiently. From front desk operation, inventory, rate, and channel management to housekeeping, a PMS helps a hotel to plan, schedule, organize, and perform all the crucial as well as the less crucial tasks in an optimized manner.
All the operations and tasks, mainly related to reservation and financial transactions, can be viewed and managed from a centralized dashboard. This helps hoteliers to manage and closely track some of their key business running metrics such as average daily rate (ADR), occupancy, and revenue per available room (RevPAR).
Some tasks that could be managed using PMS are:
Check-in/out
Available rooms
Reservations and rate and rate management for both OTA and direct bookings
Billing as well as scheduling
Housekeeping
Channel management
Payment processing
The concept of PMS was introduced in the 1970s and has evolved a lot in all these years. While traditional property management systems do not offer a lot of features and functionalities, modern ones allow hotels to expand their digital capabilities and enhance guest services and experience.
What Are the Famous Hotel Property Management Systems in Malaysia?
Looking for the best Hotel Property Management System in Malaysia? Multiple points highlight the importance of PMS in hotel industry. From channel and revenue management to BI, customer reservation system, booking engine, and hotel customer data management, PMS Software handles it all like a boss!
Thus, a PMS gives hoteliers an unambiguous overview of all that is going on with different departments on the property. This allows them to manage and monitor all the operational as well as non-operational tasks in real-time, from a single dashboard. This, in turn, increases operational efficiencies.
It’s like the entire hotel is at the fingertips of a hotelier! Or it’s displayed on a single, controllable screen that empowers hoteliers to seamlessly manage their hotel!
There are a few famous hotels PMS in Malaysia, such as:
… and much more.
Importance of Property Management System (PMS) in hotel industry
Before replacing the legacy PMS with the latest, more digital ones, hotels ensure that the benefits outweigh the costs of investing in a hotel PMS. Rightly so. Technology is not a cheap buy but a hefty investment. Moreover, unnecessary or excessive adoption of it could prove to be counterproductive.
Here are some advantages of PMS in hotels that could help hotels decide on the suitability of it for their property:
1. Inventory Management
Guest reservation management is an uphill battle for a property that has multiple operational and non-operational tasks daily. It is a taxing process where a hotel needs to monitor the guest bookings from all its channels; direct and third-party and adjust or update the room availability and rates accordingly, in real-time.
Even the slightest delay can lead to overbooking and an unpleasant guest experience. A property management system helps massively with inventory management. It allows a hotel to centralize all its guest bookings in one place regardless of their source. Further, multiple channels of reservation are simultaneously monitored and updated through a channel manager integrated within the PMS. This eliminates the risk of overbooking or double booking.
With all the bookings in one place, the updated inventory is easily accessible by the hotel staff. This allows the staff to make necessary operational arrangements before and upon the guest’s arrival.
A PMS is also known as the hotel booking software as inventory management is one of the primary functions of this automation solution. Thus, this is one of the key points for the importance of PMS in the hotel industry.
2. Front desk operations
With a PMS, the front desk staff can monitor and update the room booking status. Additionally, the front-desk manager can manage guest check-ins/out and process payments. This enables a hotel to offer a frictionless check-in experience to guests and build a strong and rather pleasant first impression.
Some PMSs offer seamless integration into digital solutions such as check-in kiosks or check-in/out through a QR Code. The front-office module of the PMS connects reservation, housekeeping, point-of-sale services, as well as guest relations management modules in a one, single environment.
Thus, the front-desk module of a hotel PMS allows hotels to access room status, and the latest information about current and upcoming bookings, manage electronic key cards, process payments, and issue guest receipts.
Additionally, this module helps with night and shift audits and point-of-sales services such as in-room automated controls, spa activities, etc. Rooms are made guest-ready with in-room automated systems such as lights, HVAC, etc., operated remotely through the PMS.
3. Revenue Management
One of the main points that add to the importance of PMS in hospitality is its capabilities that allow hotels to manage their revenue effectively. Using a PMS, hoteliers can improve, track, and access the performance of their property based on key metrics such as occupancy rate, ADR, RevPAR, and GOPPAR (gross operating profit per available room).
While integration with a global distribution system and online travel agencies (OTAs) allows a hotel to maximize its rates, a revenue management system helps it to optimize the processes and better allocate finances.
Quick creation of room type-rate plan combinations is possible with a PMS. The revenue management module enables hotels to forecast occupancy rates based on historical and guest data and practice dynamic pricing, with the help of machine learning (ML) technology. This prepares a hotel for any sudden changes in demand that may occur due to seasonality, local events, etc.
4. Third-party integrations
The modern PMS systems offer seamless integration with multiple other digital solutions being used on the property. Often the systems used in hotels work independently or in silos which makes it difficult for them to imagine how things could be more connected and synchronized.
A hotel needs channel, revenue, and inventory management systems, central reservation systems (CRS), booking engines, etc., to run efficiently. Thus, so many systems overwhelm a hotel staff quite often and bring ambiguity in tasks and processes.
However, with a property management system (PMS), a hotel could bring together multiple technical solutions that streamline workflows and hotel operations, in one place and put in a more coordinated effort.
A hotel must ensure that the hotel PMS has an open API or integration options with other digital systems.
5. Guest data management
Hotels must store guest data to stay connected to the present as well as past guests to initiate repeat business. The customer data management (CRM) module thus needs to be integrated with the front desk and hotel reservation system to have updated guest information and act as a centralized database for quick guest data access. If a hotel has its own CRM system, it must integrate the same with the Property Management System.
This CRM module can further help a hotel plan and organize its marketing strategies and activities and personalize the guest experience. Additionally, PMS also helps a hotel manage its guest loyalty program effectively.
6. Reporting and analytics
Hotel data analytics and reporting are essential for hotels to understand market dynamics, property processes, performance, and guest demands. The importance of PMS for hotels is that the software acts as a hotel business intelligence tool; it stores prevalent guest and hotel data and offers insightful reports to hoteliers for operational planning.
These reports include room and tax reports, shift and night audit reports, housekeeping reports, etc. So, the more the Property Management System has integrations with other hotel systems, the more relevant, comprehensive, and effective the reports, analytics, and corrective measures will be!
Conclusion
In conclusion, a Property Management System (PMS) is an essential tool for modern hotels, enhancing operational efficiency, guest satisfaction, and revenue management. By centralizing key functions like reservations, inventory, billing, and housekeeping, PMS enables seamless coordination between departments, reduces operational errors, and ensures a smooth guest experience. Additionally, its ability to integrate with other digital solutions, manage guest data, and generate insightful reports makes it a powerful asset for hoteliers. In today’s competitive hospitality industry, investing in a robust PMS is crucial for driving success and staying ahead of customer expectations.