Knowledge

Choosing A Property Management System

Selecting a Property Management System is not simply a matter of buying software — it is an investment made to benefit and revolutionise hotel operations, says Arun Pradheep N.

The hospitality industry has seen the benefits of getting an integrated Property Management System (PMS) system in place. Evidence of this fact is increased revenues and optimised operations.

These systems are now fairly developed and there are several established, reliable and highly functional systems, usually based on Windows NT and SQL Server environments that many consider far more superior to the traditional systems.

Know Where To Go

Picking up a Property Management System is not just a matter of buying software - it is an investment made to benefit and revolutionise hotel operations. Modern technology has levelled the playing field for vendors, making entry more practical than ever for new property developers, providing them with the opportunity to buy from numerous vendors.

Consolidation amongst the upper tier of vendors has resulted in fewer but stronger companies, while still maintaining a healthy level of competition. The mid-tier continues to thrive, having expanded their customer base sufficiently to provide a solid base for growth. Increasing standardisation of systems by major chains leaves less room for the smaller vendors, yet new systems continue to arrive, bringing fresh ideas and approaches.

Whatever the size of vendor, the solution has to sustain scalability and high integration, i.e. the ability to grow as you grow.

Although the market is full of modern, attractive choices you still have to narrow the field. Your first thought might be to focus on functionality. After all, the system must do what you need it to, at your property and in your environment, whether you have a 40-room resort or a 2,000-room convention hotel, though these will definitely have different priorities. There are many different ways of satisfying similar operational needs, and most systems cover the fundamentals (reservations, room selection, guest folio management, etc) reasonably well.

In the real world the first question most people actually ask is, 'Windows or other platforms?' This seems like a simple question, but the underlying question should really be, 'How much technology do I really want to support?'

Once you know that, you can focus on the key functions that matter to your property.

• Are you highly group-oriented, and need very strong and flexible group booking/billing functions?
• Do you enjoy a high level of city-centric convention activity and need powerful function/catering handling?
• Do you have a spa or many different guest-related activities and need a specialised module to track and bill them?
• Are you a boutique property that prides itself on outstanding service, and needs exceptional guest history features?
• Are you operating a roadside motel that just needs good, solid, straightforward guest handling with minimum fuss?
• Do a high percentage of your reservations come from a franchiser, a representation service or the Internet?
• Does the system provide interfaces to all the sub-systems you have on property and will not be replacing for some time?

You probably have a mix of these issues to deal with, but by putting them in priority and talking about those priorities with the vendors, you should be able to reduce the system choices to a more manageable number quite quickly.

Here are a few key issues you need to consider about the vendor and their systems:

• How long have they been in business, and how many installations do they have of the system you are interested in, and of all their products?
• How large is their support staff, and which of their customers can you call for references? Ideally, you should find the names of some of their less enthusiastic users, too - no one can keep everyone happy all the time - but always keep a sense of perspective about what you hear, from both camps. Their support needs are probably different from yours.
• When checking prices, do not forget to include all interfaces (these really add up), installation and training for your staff, annual service fees and any additional software needed to run the PMS, such as a database license, etc.
• Check on training too, to make sure there is a balance. Too little is a waste of time and leads to frustration and inefficiency. Too much can be overwhelming, with the same result. Focussing on the essentials upfront, and scheduling a return visit after a few months to build on them is a better approach.

Once again, when choosing between similar systems, do not underestimate the value of matching the system style to your operational style. A PMS is only a tool, after all, and a good tool feels instinctive in use, fading into the background and not getting in your way otherwise.

What You Should Expect

• Full access to data: This is becoming an absolute necessity, as the value of the guest and operations data contained in the PMS records becomes more and more apparent. Most PMSs can import and export data in plain character ASCII and other formats, but check how easy this is for the system you are considering.
• Integration with Microsoft Office: This is almost a sub-set of the previous item. Many properties use standard office systems for mail-merge marketing letters, spreadsheet analysis and graphical operational reports. Again, Windows-based PMS systems have an obvious advantage but it is certainly possible in other environments too. Ask for a demonstration.
• Internet distribution: Doing without this feature will get harder as travellers and businesses become more used to relying on the Internet, whether they are potential guests looking for information, or reservation agents or suppliers offering discounts for Internet-based ordering and settlement. Make sure your system can provide for it, even if the way you will use it is not all that clear at the moment. Again, there is a caveat here - security. Check for adequate safeguards on any external link, including passwords, encryption, anti-virus programs, firewalls, and so on. Also stay alert - both the benefits and vulnerability of the Internet change daily.
• Revenue management: More properties are aware of the bottom-line benefits that come from an awareness of each market segment's habits - when they come, in what quantities, how far out they book, setting their rates, and length-of-stay restrictions accordingly. In other words, stay updated on revenue management practices. If you are seriously considering a full-strength revenue management program because your guest mix is complex enough and variable enough to make it hard to track all the variables manually, make sure the PMS you buy has a Rate Management interface, and a good one at that. If you are just looking to control fewer rate plan variables, make sure you are comfortable with the facilities built into the PMS itself. Many have surprisingly sophisticated and detailed options, while others take a less complex approach. There is a fine line between having enough options and having too many.

Weighing Your Options

There is so much choice out there that you can easily feel buried in options, but with a methodical approach you can quickly narrow them down.

The starting point, as always, is to know your own system of functioning. Understand your operations and management style well enough to know what key functions are really important to your property, in your market, and decide how much technology you want and are prepared to support.

Given these main criteria, pre-qualify vendors against these fundamentals and get quotes from three or four that seem best suited to your needs, trying to balance large and small vendors, national and local. Have them run demos focused on your needs, not theirs, and check references. After running a check on references, go ahead and implement the system, assured in the knowledge that you have made a good choice.

The author is assistant manager - marketing at IDS Softwares Pvt Ltd