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Investing in a property management system (PMS) is a big step for lodging operators. With the right solution, you can streamline operations, improve efficiency, and elevate the guest experience. But how do you know if it’s the right time?
In this article, we explore what exactly a PMS is, five signs it may be time to adopt one, and how it can help you seamlessly manage group business.
What is a property management system?
A property management system (PMS) is a comprehensive software solution designed specifically for hospitality businesses. Its main objective is to help lodging operators control, organize, and optimize daily operations. At its core, a PMS is the central hub where all hotel-related processes converge.
A PMS is used by hotel staff to handle essential tasks such as managing reservations, overseeing check-ins and check-outs, maintaining guest information, and ensuring guest satisfaction both before and after their stay. Beyond these core functions, a robust PMS with proper integrations can bring hoteliers even more value, including:
- Booking engine: An online platform for guests to book rooms directly, increasing revenue and loyalty opportunities.
- Channel management. A system that syncs your booking data with various channels like OTAs to ensure consistency in availability and pricing.
- Housekeeping management. Keep track of room statuses, ensuring they are clean, maintained, and ready for guests.
- Revenue management. Dynamically adjust pricing strategies to maximize revenue per available room (RevPAR).
- Payment processing. Simplify billing and financial transactions directly through the system to save time and eliminate manual errors.
- Guest engagement. Build a closer connection with guests by personalizing their experience and improving communication.
5 signs your property needs a PMS
A PMS is a significant investment but a necessity for lodging operators looking to take their business to the next level. Recognizing the signs that your hotel needs a property management system is the first step toward a more efficient and profitable business.
Here are five signs that it might be time to consider a PMS:
1. You’re spending too much time on menial tasks
Without a property management system to handle mundane, menial tasks, it can feel like that’s all your team ever has time to focus on. From entering reservation details to updating room statuses and processing payments, a lot goes into everyday operations. While these tasks may be dry, they require precision and can significantly impact guest satisfaction and revenue if errors are made.
How a PMS can help.
That’s where a PMS comes into play. An integrated PMS can automate these tasks, eliminating the need for human involvement. Reservations can flow from your booking engine or channel manager into your PMS, and payments can be processed with the click of a button. The time and resources saved can be reallocated to improving the guest experience and finding ways to drive revenue.
2. You’re juggling multiple systems (or spreadsheets)
Depending on your level of tech adoption, you may find yourself juggling a host of siloed systems that don’t communicate efficiently, or else you’re still relying on manual methods like spreadsheets. Both scenarios result in wasted time and data inconsistencies. With vital information scattered across locations, it can take forever to find what you need, impacting operations and strategic decision-making.
How a PMS can help.
An integrated PMS acts as a central hub, consolidating data so you can find everything you need in one place. It eliminates fragmentation by bringing disparate systems together, streamlining data flow, and ensuring every aspect of operations works together in real-time. Not only does it save you time, but it delivers a cohesive view of operations and performance.
3. You want to improve the guest experience
When it comes to hosting people at your property, it’s the small details that really matter. If you notice things slipping through the cracks, such as guest requests or prolonged waits at the front desk, it might be time to consider a PMS.
How a PMS can help.
A PMS makes it easy to record (and remember) information about your guests to personalize their stay. With an integrated booking engine, guests can book online, pre-book any services or add-ons (like a bottle of champagne to celebrate an anniversary), and leave notes for any special requests. In addition, a PMS with guest communication integrations allows you to reach out to guests before, during, and after their stay. Messaging with guests can significantly improve your relationship with them, offering peace of mind before arrival with information on when to check in and where to park and to answer any questions mid-stay.
4. You want to improve the employee experience
The hospitality industry has the highest turnover rate of any sector at 86%, making retention efforts a crucial part of any lodging business. You must have a system in place that is intuitive, easy to use, and enables your team to focus on higher-value tasks.
How a PMS can help.
The right PMS can help free your front desk team from manual duties, empowering them to focus on improving the guest experience. It can also increase efficiency for your housekeeping team by utilizing mobile capabilities to check room statuses and communicate to the front desk that a room is ready to go. Many PMSs today also offer training courses so your team can learn more about the system and industry as part of their professional development.
5. You want to stay competitive
Are you looking for ways to drive more bookings and increase revenue? Without a PMS, you can only do so much. The properties that thrive in today’s environment are those adopting innovative, cloud-based solutions to streamline operations and enhance the guest experience.
How a PMS can help.
Why a cloud-based system? Compared to an on-premise PMS, it has regular updates and new features to ensure you always operate with the most current technology. A cloud-based system also provides integrations to seamlessly connect the tools you need. Think event management technology, mobile keys, or point-of-sale systems. This flexibility helps support your growth and enables you to build the system that works for your business.
How a PMS can help you better accommodate groups
Attracting group business is a significant opportunity for any hotel to boost occupancy and revenue. However, managing groups is substantially more complex than catering to individual travelers. The logistical challenges—like splitting bills, tracking inventory, and building special event or corporate rates—can be difficult and are compounded when handled manually. A PMS is your ally in navigating these complexities.
A PMS can make your life a lot easier when it comes to group bookings in the following ways:
- Sync group availability. Synchronize group bookings with your availability calendar to offer an instant view of overall occupancy. This eliminates manually tracking each group’s room allotment, providing a comprehensive view of occupancy.
- Group folios. With group folios, you can route different charges to group folios directly, ensuring all transactions within a group are centralized and updated in real time.
- Group rates. Whether you’re a wedding destination or host corporate retreats, you can easily offer special rates, apply discounts, modify stay restrictions, and handle deposits, all while keeping sensitive rate information exclusive to the group.
- Custom URLs. Offering self-service options is crucial. Groups appreciate being able to manage their own bookings, and they can via custom URLs for group allotments. This provides guests with a personalized booking experience, displaying room block availability for their specific dates with any group promo codes.
- Room block release. Easily release unreserved room blocks, making them available for new reservations with delay, to never miss a guaranteed booking.
Are you ready to take the next step?
Recognizing the need for a property management system is essential for a lodging operator looking to enhance their hotel’s efficiency and guest experience. A PMS streamlines mundane tasks, integrates disparate systems, and refines guest and employee interactions, ultimately driving revenue and improving your competitive advantage.
Guest Blog Written by Lana Cook, Content Specialist at Cloudbeds
About Cloudbeds:
Cloudbeds is a comprehensive hotel management software that is revolutionizing the hospitality industry. Distributed across 40+ countries speaking 30+ languages and with over 700+ employees, Cloudbeds is streamlining the complex world of OTAs, payments, reservations, and reporting.
For more information about Cloudbeds, visit: https://www.cloudbeds.com/
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