Managing a hotel can be very challenging. Dealing with staff management, financial administration, marketing, service quality, and guest satisfaction is indeed complex, and requires hard and continuous work. Luckily, a PMS can make the operational routine simpler by optimizing tasks like guest check-ins and check-outs, reservation handling, inventory control, and housekeeping coordination.
What is a PMS?
PMS stands for Property Management System, an essential hotel management solution. This type of system was first created in the 1980s to assist with rate and reservation management, and it has been improved over the years to meet the demands of digitalization in the hotel industry.
One of the main benefits of this type of software is providing a clear and centralized view of the operational status of the hotel, simplifying management by organizing tasks efficiently. But how does it work in practice?
How a PMS Works in Hotel Management
With the help of a Property Management System, complex tasks become more practical and visible, facilitating administration and improving efficiency. This tool integrates all hotel operations, from reservations to billing management, offering a complete real-time view on the operation.
Check-in Management
The system supports automated check-in operations, including data transmission to local authorities and managing complex check-ins, such as groups.
Imagine a group of 30 guests booking the hotel for a corporate event. With a good PMS, the check-in for the entire group is handled automatically, avoiding long lines and waits. It automates the service without excluding the personal preferences or special needs that each guest may have.
Additionally, in a group reservation, the Property Management System ensures that all group members are accommodated close to each other, improving everyone’s experience and reducing the manual work of the hotel staff.
Payment Management
When integrated with a payment management system, the PMS facilitates the secure receipt and accurate recording of digital payments, enhances billing efficiency, and significantly reduces check-out time.
Consider a scenario where a guest decides to pay their bill with a credit card during check-out. The integrated Property Management System processes the payment directly through the hotel’s payment terminal, automatically updates the bill, and prints the receipt for the guest, all while adjusting the reservation balance in real-time.
Revenue Management
Integration with a Revenue Management System (RMS) allows the use of PMS data, such as availability and occupancy rates, to create forecasts and optimize pricing strategies, maximizing profits.
Consider a scenario where a hotel has a high occupancy rate forecast for the following month due to a major local event. The Revenue Management System identifies availability and occupancy data from the PMS so that room rates can be adjusted for that period. In this way, the manager can increase the price of accommodation during periods of high demand to generate more revenue.
Connection with the Channel Manager
Integration with a Channel Manager allows synchronized management of reservations, availability, and pricing across multiple online sales channels, preventing overbooking.
Imagine a hotel offering rooms on three online booking platforms. With the integration of the PMS and Channel Manager, any reservation made on one of the platforms automatically updates availability and pricing on all others. This prevents overbooking and ensures that information about available rooms is always accurate across all channels in real-time.
Connection with the Booking Engine
Integration with a Booking Engine allows managing reservations directly on the hotel’s website, without OTA commissions, and obtaining more customer data. If the hotel has a PMS integrated with the Booking Engine, upon receiving the reservation, the hotel management will have all the necessary information to provide the best accommodation experience for the guest.
Housekeeping Management
The PMS helps plan and monitor housekeeping and maintenance routines, assigning tasks and checking their status in real-time, ensuring rooms are ready for guests.
When a guest checks out, the housekeeping team receives this information and knows how to prepare the room for the next stay. The system’s notification allows for specific details to be communicated, such as replacing a light bulb. The manager monitors task progress in real-time, ensuring the room is cleaned and properly prepared for the next guest without delays.
Implementing a Property Management System
Implementing a PMS in a hotel results in integrated solutions to improve property management.
A good Property Management System automates essential processes, such as check-in and check-out, updates room availability in real-time, and synchronizes reservations across the various distribution channels used by the hotel, preventing overbooking. It also manages payments, issues invoices, and provides detailed financial reports. Additionally, the PMS monitors housekeeping and maintenance tasks, ensuring that rooms are properly prepared for the next guests.
Integrating the Property Management System with other tools, such as Customer Relationship Management (CRM) Software and Revenue Management Software, allows for personalized guest experiences and optimized pricing strategies.
Thus, a PMS provides an integrated, efficient, and effective view of hotel management, enhancing administration, communication, and profitability.
Implementing the right PMS for your hotel may be complex and time-consuming, but it gets easier with the help of experts.
Choosing a personalized consultancy to assess your property’s needs and carry out the implementation of the PMS will guarantee its efficient operations.
Would you like to know how RegiÔtels can help you? Contact us and schedule a call with an expert.
Frequently Asked Questions
1. What is a Property Management System (PMS) and why do hotels need it?
A Property Management System (PMS) is software designed to manage a hotel’s daily operations, including reservations, check-ins, billing, and housekeeping. Hotels need it because it centralizes all tasks, making management simpler, reducing mistakes, and enhancing the guest experience by automating processes.
2. How does a PMS make check-ins and check-outs more efficient?
A PMS streamlines check-in and check-out by automating tasks such as recording guest preferences, updating room availability, and processing payments. This speeds up check-in and check-out, reducing waiting times.
3. How can a PMS help hotels increase their revenue?
When connected to a Revenue Management System (RMS), a PMS gives an overview of occupancy for the price to be adjusted accordingly. This allows hotels to set the best prices, especially during busy periods, helping to increase revenue.
4. How does a PMS prevent overbooking?
A PMS works with a Channel Manager to update room availability in real-time across all online booking platforms. This ensures that reservations are accurately tracked, which prevents overbooking and ensures the correct availability is always displayed for potential guests.
Need help with your revenue strategy?
Related Articles
Generating Hotel Bookings with Google Ads Campaigns
Google Ads is a powerful advertising platform that offers independent hotels the opportunity to reach a large and targeted audience. With the ability to create custom campaigns, set budgets, and target customers based on various factors, hotels can maximize their...
Streamlining Your Hotel Operations with a Channel Manager and Booking Engine
Channel managers and booking engines are two hotel technologies which work together to help hotels manage their distribution channels and increase direct bookings, giving properties the tools they need to reach more guests, increase revenue, and improve their bottom...
Why Hotels Should Focus on OTA Optimization
Online Travel Agencies (OTAs) play a crucial role in the hotel industry, providing a platform for hotels to reach potential guests and drive bookings. In today's digital age, it is more important than ever for hotels to have a strong online presence, and OTAs offer a...