A reliable property management system (PMS) is the backbone of your hotel’s core operations. The right solution can help you automate and streamline your internal processes and secure more revenue for your business.
But what is a PMS system for hotels and what are the specific benefits of using one?
Let’s find out.
What is a PMS system for hotels?
Before we discuss the benefits of using one, let’s start with the basics: What is a PMS system for hotels?
A property management system, also known as a PMS system, is a software solution that helps hotel revenue managers streamline and automate their daily operations. This includes managing room bookings, checking guests in and out, coordinating housekeeping and maintenance tasks, and handling accounting and billing processes.
So, how does it work?
A PMS system typically includes a centralised database that stores all guest and reservation information, as well as a range of features and tools that allow hotel staff to manage various aspects of the hotel’s operations more efficiently. This can include features for online booking and reservations, room assignment and inventory management, guest profile and preferences management, and reporting and analytics tools.
The benefits of using a PMS system for hotels
Now that we’ve answered the question “What is a PMS system for hotels?”, let’s see how using a property management system can benefit your revenue management strategy.
Real-time data analysis
New-generation PMS systems are equipped with powerful analytical tools that allow hoteliers to analyse real-time data on occupancy rates, revenue per available room, guest behaviour, guest satisfaction, and revenue trends. You also get access to detailed reports so that you can monitor trends over time and identify booking patterns. This helps hotels make informed strategic decisions relating to pricing, inventory management, and marketing so that they can maximise total revenue.
Integration with other systems
A new-generation PMS system can often integrate with other systems, such as revenue management tools, point of sale systems, customer relationship management solutions, and marketing automation tools. This allows hotels to create a more seamless and integrated technology stack. As a result, they can streamline their operations, reduce manual errors, improve efficiency, reduce costs, and provide a more seamless guest experience.
Dynamic pricing is becoming increasingly popular in the hospitality industry, and new-generation PMS systems are making it easier for hotels to implement. These systems use algorithms and data analytics to adjust prices in real time based on demand, competition, and a range of other factors.
Specifically, a PMS system can improve hotel dynamic pricing in the following ways:
- Real-time data: A PMS system provides hotel revenue managers with real-time data on occupancy rates, demand, and pricing trends. They can then use this data to adjust prices in line with supply and demand.
- Historical data: A PMS system analyses historical data in order to identify pricing patterns and trends. This helps hotels forecast future demand and set prices accordingly. They can also use this data to determine the best time to offer promotions and adjust prices based on external factors such as seasonality and upcoming local events.
- Automated pricing: A PMS system can automate pricing rules based on factors including occupancy rates and demand. As a result, hotels can make faster and more accurate dynamic pricing decisions.
- Integration with revenue management tools: Revenue managers can integrate their PMS system with their existing revenue management tools in order to create more sophisticated dynamic pricing models that take into account factors including competition, seasonality, and market demand.
New-generation PMS systems are designed to personalise guest experiences. With the help of data analytics, hotels can now offer customised packages, promotions, and services to guests based on their preferences and behaviour.
For example, you can use a PMS system to create detailed guest profiles that include information such as previous stays, special requests, and more. This information can be used to anticipate customer needs and personalise the guest experience. Hoteliers can also integrate their PMS system with various communication channels to facilitate personalised communication with guests. Plus, you can access insights on guest spending habits and preferences and use this information to offer targeted upselling and cross-selling opportunities that are tailored to each guest’s interests and preferences.
Finally, new-generation PMS systems are designed with a mobile-first approach, allowing hotel staff to manage operations and guests to interact with the hotel using their mobile devices. For example, you can offer contactless check-in, automate check-in communications, and maintain constant communication with guests throughout their stay. This enhances the guest experience, reduces wait times, and increases operational efficiency.
And there you have it. Ultimately, by using a PMS system, hotel revenue managers can streamline their workflows and reduce the risk of errors or oversights that can lead to lost revenue and guest dissatisfaction. They can also gain valuable insights into their business operations, allowing them to make data-driven decisions that can help improve the guest experience and boost their bottom line.