At this point in time, the vast majority of hotels already have a property management system (PMS). If you have a system, you will eventually look towards upgrading that system. You may have obsolete hardware that prompts the upgrade, or perhaps changes in your customer profiles have put more strain on your capacity to handle Internet-based bookings. In the case of some chains like Best Western, you may need to upgrade your system to meet the requirements of the chain. Of course with some chain affiliations you don’t have any choice. A new PMS arrives in a box one day and the old one is sent away, and after cursing head office for a few days, the staff settles down and sings the praises of the new system. Of course they don’t have much choice, so sing they will.

This article will not tell you what to buy or from whom. But hopefully, it will point out some factors to consider when upgrading or purchasing a new system. We will work on the assumption that most property management systems will perform the following tasks: maintaining your rooms inventory, making reservations, tracking revenues, and performing the standard back-of-house accounting tasks. Variations to these tasks are largely based on user requirements such as banquet and meeting room capacities. 

The most important thing to remember throughout this process is to be realistic about your needs. If you are a limited service hotel then you simply do not require a system designed to handle meetings, banquets, and food and beverage system interfaces. With hardware costs bottoming out and relatively constant, the major variations in costs will be the software that runs the systems, and of course, the ongoing service and license fees associated with it. Look for systems that have modular software options so that you don’t pay for more than you need. 

Without a doubt, the single most influential factor in the last two years has been the consumer trend towards booking online and the functionality of the Internet. I use both terms for a reason. 

The massive increase in consumer traffic over the Internet has prompted huge changes at Best Western International. Recognizing that people are making purchasing decisions in seconds, the chain has mandated that all of its properties install or upgrade to property management systems that have fully functional two-way interfaces to their central reservations system. They know that by having real time, live inventories more customers are likely to book rooms at Best Western hotels. Of course the reason that customers are making these faster decisions is because the Internet is so much quicker than it has been in the past. If you don’t have rooms listed as available for sale, or your website comes up too slowly, they will click on the next one and you have lost the business. 

The functionality of the Internet has also allowed new developments in the booking end. Independents can easily purchase a PMS that will interface with a web reservation system, more efficiently selling their inventories. There are even new PMS suppliers that are completely web-based. No more hard drives on site, just computer terminals that access the property’s information over the Internet, held and maintained by a server off site. These can be very cost efficient, but may require a leap of faith for some operators. This type of set up is completely in keeping with predicted technological trends of the future. There is something marvelous about being able to run your hotel from a wireless notebook that you may set up on a welcoming veranda, or access your property information while off site on vacation or on a business trip, allowing you to keep in touch and run your business from anywhere.

If all of this enlightenment has only served to confuse you further, here is a little bit of information to consider: A Google search on hotel property management systems came up with 1,270,000 leads in 0.11 seconds. So you’re not alone. But here, in a nutshell, are things for you to consider:
Do you have food and beverage operations which run on point-of-sale systems that need interface with your PMS? There are usually corresponding costs involved that warrant consideration. If you don’t, do your future plans include this sort of growth? Plan now if you do.

Changes in technology will soon be bringing additional services to hotels that may become excellent secondary revenue sources. These will include (but not be limited to) streaming movies and other digital services like games and entertainment. Internal network capabilities and newer televisions and monitors may allow guests to view their accounts or access the Internet from their rooms without the need of their own computers. Similar services are currently offered by third party suppliers. Will your PMS allow you to expand your services and revenue streams to include these things and maximize the profitability of your operation without going out-of-house for the guest services? Tomorrow’s property management systems will. 

Does your property’s layout and design support the use of wireless terminals for your front desk? Perhaps you are considering design changes that may include a welcoming concierge desk or station where a portable notebook computer will allow for better guest services. With the increase in functionality and the decrease in prices of notebook computers, this has become a truly viable option for smaller hotels. Larger properties may even use this option for booking or welcoming tours as they arrive at a special tours arrival area. The computer can then go back on the desk of the sales agent or out to a meeting with a potential client, allowing for immediate bookings rather than the old style of inquiries and follow-up. Will your new PMS allow for remote access and the potential increase in guest services? Imagine the potential of showing up in a client’s office and confirming the sale right there with your notebook, even booking specific rooms to meet the client’s special needs and requests.

New guestroom key card technology such as VingCard’s “Signature RFID” series will lead to new potential services and requirements from our PMSs. (Check the article “Technology Trends” in the Winter 2006 issue of InnFocus.) This new style of guestroom access is quickly becoming the standard for convenience, service, and security. 

With so many of the new cell phones and PDAs having geographical locators and GPS technology, the following scenario will be possible within the next year: One of your frequent and therefore most important guests has you set as his or her preferred place to stay. When the guest gets within a certain distance from your property, an automatic communication will happen between your system and the guest’s device. Since your hotel is online and your inventory is live, your system will recognize the guest, determine if a room is available, match it to your guest’s preferences, and send a quick message to the guest, offering him the room. For the sake of illustration, let’s say the guest responds by pressing the “accept” button on the phone or PDA, and the hotel will immediately confirm the reservation and send a signal to the guest that will include the room number and the near field communication code that will allow the guest to use the device itself as the key to the room. As simple as that, the room will be sold while your employees go about their business of helping other guests with their immediate needs.