Hotel Property Management System(PMS): Complete Guide

Multiple global hotel chains are using property management systems to ensure smooth operations. Additionally, small hotels, motels, resorts, and other similar accommodations are jumping on the PMS bandwagon to reap its benefits; boost their direct bookings as well as other bookings, and elevate the guest experience.

Now that we have understood what a PMS is and how it serves hotels, let’s now look at the different types of hotel property management systems.

Types of Hotel Property Management Systems (PMS) 

With time, technology matured, and different types of hotel property management systems were introduced.  

The three major types of hotel PMS are:

1. On-premises hotel PMS

This type of hotel property management system involves investing in, setting up, and maintenance of hardware and local servers on the hotel premises. It is usually installed through a local server at the property level and can be accessed using desktops. Hotel software is installed in different systems.

Properties also need to buy a license for the individual machine on which the software would be used. In addition, different licenses must be acquired for each user, and a license fee has to be paid. Payments also have to be made for upgrades, that must be made on every individual machine. Furthermore, a hotel must have a proficient IT team to manage everything on the property.

This hotel PMS does not depend on an active internet connection and thus, proves to be useful in remote areas having low connectivity. However, data security must be ensured by the property itself. Hotels need to install firewalls as well as anti-virus programs on computers/desktops leveraging the systems. 

The monitoring and management of these systems are done manually. Moreover, integrating different systems or software is a complex process with legacy systems with a lot of major technical work and additional hardware required. 

2. Web-native cloud hotel PMS   

This is a web-native cloud-based hotel property management system in India and abroad that can be accessed anytime and from anywhere using a browser or mobile device. It does not need any special installation or downloads. Instead, it can be hosted either through a private cloud or a public cloud.   

Every single function is executed, and the data is stored on the cloud. So, no IT personnel or department is required for maintenance, it is taken care of by the software vendor administers. Automatic data backup, internet connectivity, and fail-safe monitoring are done by the administrators. This makes cloud PMS a safer option than on-premises systems.   

Moreover, updates are generally carried out without hampering hotel operations. These systems further offer open APIs for ease of deployment of various third-party solutions.  

3. Hybrid Cloud Hotel PMS

This type combines both on-premises and cloud-based elements to get the best of both worlds.

It is a web front-end solution that can be accessed through the web browser on a desktop, tablet, or mobile device. It can be hosted either locally at the property or remotely. But some PMS functionalities can’t be moved and stay on-premises only.   

This type of hotel PMS software offers flexibility in terms of choosing the most suitable setup for different functionalities. It further offers scalability as resources can be scaled up or down as per the hotel's requirements.

Since we know the different types of PMS, let’s move on to the key features that make this software one of the most sought-after in the hospitality industry.

Key Features of Hotel Property Management System

A hotel property management system is a combination of different work environments or spaces in a single, centralized technological solution. 

Thus, different PMSs can have different combinations of modules and functions, and even the functionalities of modules can be slightly different from each other. Some hotel PMS have separate modules that can be later integrated with an existing solution used by properties.

Thus, the key features or modules of a hotel property management system can vary as per the specific system and its capabilities, but below are some common features of many hotel PMS:

1. Reservation Management

One of the key features of hotel property management systems is reservation management. Your hotel PMS manages as well as organizes booking from different sources including direct bookings, online travel agencies (OTAs), and other online and offline channels.

A central reservation system (CRS) or some other reservation platform might be available as a separate module of hotel PMS or can be implemented as a hotel’s independent internal solution.

It effectively manages bookings by automating the process and maintaining a centralized database of guest data, maximizing the revenue generated per booking. The risk of double or over-booking is significantly reduced and the guest experience is enhanced.

2. Front desk operations

Using this feature, front-desk managers can view, manage, and update room reservations, check-ins/outs, and process payments through automation. It streamlines hotel front-desk responsibilities, roles, and duties for the staff.

With a simplified and seamless check-in, the registration process is streamlined, resulting in reduced wait times. This allows for an enhanced guest experience, and the hotel staff gets more time to interact, serve them better, and forge connections with the former.

Furthermore, a hotel PMS facilitates room assignment based on the guest’s tastes, preferences, and requests through a centralized database including guest information. This enables a hotel to offer a personalized experience.

3. Channel manager  

Proper channel management is crucial for boosting visibility, bookings, and revenue. If this process gets streamlined, hotels could effectively manage inventory and rates across various offline and online distribution channels.  

PMS for hotels allows effective channel management through the channel manager software. Many people confuse the two systems, however, there are some major differences between PMS and Channel Manager.  

The former is a wider concept and helps the property manage its day-to-day operations, the latter is a narrower concept and only facilitates the management of various online and offline distribution channels. 

Therefore, sometimes a channel manager is built into a hotel property management system, the other times it gets integrated. A channel manager helps to create and apply a diverse distribution strategy and drive hotel bookings through data analytics and reports.   

Hoteliers could manage direct, OTA, and GDA (Global Distribution System) bookings, update rates and availability across all the channels, and practice dynamic pricing successfully. Channel management through a hotel PMS reduces the risk of errors in updating room availability or prices, which is a concern with traditional manual practices and saves big bucks.

4. Revenue management  

Revenue management system tracks manages, and analyses payments to help hotels maximize revenue. This software comes with a simple interface and security provisions. RevMaxi is one such practical, easy-to-navigate, and secure RMS.   

RMS accepts online payments and quickly verifies payment information, and in case of a failed payment or non-payment, this software helps with outstanding charges management. Hotels could also access data-driven revenue management insights and strategies using it. With this data, hotels can set the most profitable rates, and update and modify them across all distribution channels. It can also create special packages and offers.

Important KPIs and revenue metrics such as occupancy rates, RevPAR (revenue per available room), ADR (Average Daily Rate), GOPAR (Gross Operating Profit Per Available Room), etc., could be managed and monitored by hoteliers.

5. Customer data and CRM integration

With so many guests visiting and enquiring, a hotel is a data-rich business. However, to make the most of this data, properties must integrate CRM or customer relations management systems with front-desk and reservation management systems. 

This allows them to compile and leverage guest data from each source. Hotels can maintain centralized guest profiles based on their preferences and history and offer personalized experiences. 

CRM then serves as an extensive database for the management team to access guest data, create targeted marketing campaigns, and meet guest needs during the stay and post-check-out. Not just that, hotels are also able to encourage guest engagement and feedback and gain guest insights.

Hotels can even identify repeat business and can offer loyalty programs and subscription models to them for enhanced guest experience.

6. Housekeeping

This module bridges the gap between the housekeeping staff and the front-office team, facilitating smooth and continuous communication.

Using a PMS, hotels optimize their hotel housekeeping and property maintenance activities such as room status management, and task assignment for housekeeping staff. Tools are provided to schedule and monitor housekeeping tasks. 

The housekeeping staff can further update the tasks using a device with cloud-based PMS software. This way, hotels can ensure that rooms are cleaned and prepared for guests on time.

Maintenance requests are efficiently managed using a PMS that facilitates effective communication between different departments and thus, guest requests are catered to promptly.

7. Point of sale services

A hotel might have multiple point-of-sale touchpoints across the property. These may include restaurants, bars, gift shops, spa and wellness, etc. This makes the point-of-sales module in a hotel PMS a crucial feature for managing transactions.   

With integrated point-of-sales capabilities, hospitality businesses automate sales transaction processing, track inventory requirements, and generate invoices smoothly. This streamlines the process and allows guests to opt for services without putting in much effort or facing long waiting times. Moreover, hotels keep all the financial data secured in one place with the point-of-sales feature.   

With easy access to consolidated sales and inventory data, hotels can gain useful insights for effective stock management and revenue tracking.

8. Invoice and payment options  

A payment system integrated with a PMS facilitates faster and seamless payments, fewer errors, and more automatic payment process options. This enhances guest experience and allows hotels to keep their financial management clear and effective. 

Through payment systems, card payments at the reception, online payments, etc., get processed, and invoices can be generated automatically for guests. This way guests can pay for the services enjoyed without worrying about payment processes and the staff can manage these transactions more efficiently.

9. Reporting and Analytics 

With so many crucial systems integrated within the hotel property management software, hotels can gain data-driven insights and could make different strategies accordingly for best results. A hotel PMS offers strong reporting and analytics capabilities, allowing properties to track and analyze their key performance indicators and gain a comprehensive view of the performance.

These insights, reports, and hotel data analytics help in strategic planning, informed decision-making, revenue management and maximization, and identification of improvement areas. Furthermore, an advanced hotel PMS also assists with adherence to local tax reporting laws and regulations.

A hotel PMS further allows for multi-property support from a centralized system. Hoteliers can enjoy consistent reporting and effective management across different properties. Hotel PMS has a mobile-friendly interface and accessibility for on-the-go management. Lastly, these systems come with data security features to ensure complete guest information security and safety.   

The basic structure of a hospitality PMS is:

While these features or modules collectively help hotels streamline their operations, elevate guest experiences, and optimize revenue management, some specific features may vary with different PMS providers. Hospitality businesses must choose property management software as per their unique requirements and preferences.

After looking at the key features of a hotel PMS, we will now move on to the benefits that come out of this practical and scalable software.

Benefits of Using a Hotel Property Management System 

The importance of a hotel property management system in the hospitality industry is immense. 

Since it integrates some of the key management systems, a hotel PMS offers a myriad of benefits. Some of them are:

1. Streamlines Operations and Administrative tasks 

A hotel PMS automates key administrative tasks and front as well as back-office operations such as reservation management, check-in/out, room assignment, housekeeping, and maintenance, employee scheduling, payroll management, inventory tracking and control. etc.

This allows a hotel to eliminate manual errors, cut down the paperwork and time consumed on admin tasks, and make more time for staff to look after the guests properly and forge connections with them. 

Some PMSs also provide hotels with useful data on employee retention, welfare as well as productivity.  

Thus, this software streamlines hotel operational management.

2. Enhanced Guest Experience  

A PMS allows a hotel to streamline its front-desk operations and facilitates faster check-in/outs. Furthermore, with guest profiles created and preferences and the stay history of a guest stored in a centralized system, hotels can offer personalized guest experiences and cater to individual requirements.  

A hotel PMS also facilitates better and an effective communication with the guests. With better housekeeping and property maintenance management, requests are handled on time, and issues are identified and resolved at the earliest. All this enhances a guest's experience and allows them to retain more guests.

3. Improved Revenue Management  

PMS Software offers hotels some crucial tools to monitor and analyze some key revenue metrics such as occupancy rates, RevPAR, ADR, etc., in real time. This helps a hotel optimize and maximize its room occupancy rates and revenue potential.   

Moreover, PMS offers a better connection with payment gateways, point-of-sale systems, and accounts payable and receivable.

It further offers data on market demand and dynamics, competitor pricing, weather conditions, guest preferences, etc., that helps a hotel practice effective dynamic pricing, provide personalized experiences to guests, and send targeted marketing communications. Data-driven reporting, analytics, and competitive intelligence allow a hotel to enhance its operations and earn more.

4. Integrated Channel Management  

PMS integrated with multiple OTAs, GDSs, and other online and offline booking channels helps a hotel to update accurate room availability and rates across multiple platforms. This results in the avoidance of over or double bookings and the resultant revenue loss and hampered guest experience. 

With proper inventory, rate, and channel management, hotels stand to gain more bookings and revenue.

5. Efficient Housekeeping and Maintenance  

A hotel PMS allows hotels to streamline the housekeeping management process. Hotels can create housekeeping schedules, track room statuses, and easily handle maintenance requests. Effective communication and coordination between concerned departments such as housekeeping staff, front-desk office, and maintenance teams are ensured by a centralized PMS.

This facilitates high-quality and timely room cleaning services, a well-maintained property, and ultimately an elevated guest experience.

6. Better Accounting and Financial Management  

Automation of financial processes such as billing, expense storing and tracking, and invoicing using PMS software allows the hotel to keep its data updated and streamline its accounting and financial management.

7. Data-driven Reports and Analytics 

Since hotels have and also need an abundance of data to offer personalized experiences and charge the best prices, having a centralized data point or system can be highly beneficial. PMS is one such system that allows hotels to have centralized access to real-time data and analytics.   

These insights help hotels optimize their operations, implement effective pricing strategies, and identify areas that require improvements. 

With so many benefits, it comes as no surprise that the future of a hotel PMS will be indeed bright!  

After benefits, let’s see how this software works in this PMS complete guide.

How Does a Hotel Property Management System Work? 

The work of a hotel property management system begins with the booking and reservation module. Guests make reservations through various online channels or platforms such as hospitality websites, OTAs, etc., that are integrated with the PMS. The system thus records and centralizes all the booking data including guest details, room preferences, etc.

Then the check-in/out module helps automate these processes with an integrated payment processor. Hotel PMS manages key card access, and room assignment as per room availability and guest preferences. While check-out involves settling bills as well as updating the room status for cleaning.  

The CRM module facilitates the creation of a database of guest information including their tastes and preferences. This data is utilized to personalize guest’s experience, and marketing campaigns and promotions. Then the housekeeping module further ensures a positive customer experience by improved management and tracking of cleaning and maintenance requests and other related tasks.

Lastly, the financial reporting module does its magic and offers actionable insights into the property's performance including revenue breakdowns as per room types, occupancy rates, expense tracking data and reports, revenue metrics, etc.

Challenges and Solutions in Hotel PMS 

Like everything in life, a hotel property management system also has its own set of challenges. However, hotel challenges also come with solutions, that may be hard to find but certainly exist.   

So, below are some of the hotel PMS challenges with their solutions:   

• Hotels might face integration issues.

Challenge: Multiple hospitality businesses use different software solutions for different functions, and integration of the same with PMS could pose a challenge.   

Solution: Hotels must go for a PMS that offers seamless integration with other systems or software. We recommend you go with APIs and middleware solutions as they can enable smoother connections between various software apps.   

• The next challenge could be data security concerns.

Challenge: Hoteliers fear that sensitive guest information might be at risk of cyber attacks or data breaches.   

Solution: Hotels must implement strict security measures such as encryption protocols, access controls, as well as regular security audits. Ensure compliance with data protection regulations.   

•  Staff may face training and adaptation issues.

Challenge: This is a common challenge that could come with new technology when staff may have a hard time adapting to the hotel PMS, leading to miscommunications, inefficiencies, and errors.

Solution: Conduct comprehensive and regular training programs to ensure that staff is well-versed in the usage of PMS. Choose systems that are user-friendly and offer round-the-clock support.    

• System downtime is another hotel PMS challenge. 

Challenge: Technical glitches or maintenance issues can lead to system downtime that could hamper operations.

Solution: Hotels must choose a PMS that has reliable uptime records, and schedule maintenance during low seasons. Always have a backup or contingency plan for such events.   

• Customization limitations are another challenge.   

Challenge: Some PMS available in the marketplace may lack flexibility and customization options, making it challenging for hotels with unique needs to adopt the technology.   

Solution: Hotels must go for PMSs that have customization options.   

• Some PMSs lack real-time updates.  

Challenge: Lack of real-time updates by PMS may lead to overbookings or revenue loss as rates and availability do not get updated accurately or uniformly across different channels.   

Solution: Hotels must go for a PMS with real-time synchronization capabilities to ensure accurate updates across all distribution channels instantly.  

• Regulatory compliance can be another challenge.

Challenge: Hotels might face issues keeping up with the changing data privacy and protection regulations.    

Solution:  Hotels must regularly update the software to comply with all the latest regulations.  

These were some of the key challenges that hotels may face with hotel property management systems. However, these challenges could be addressed with strategic planning, the most suitable PMS for your needs, and round-the-clock support and training. 

How to Choose the Right PMS for Your Hotel  

Hotels need to choose the most suitable Hotel PMS Software that meets their property type and unique needs. 

But this is not as easy as it sounds. It requires a hotel to be clear with its requirements, consider some crucial points, and ask the right questions from the potential vendors.

Some things to factor in and questions to ask while choosing the hotel property management system are:   

• Access your unique and specific requirements.  
• Meticulously evaluate the system’s features and functionalities.
• Check if the software is user-friendly; easy-to-navigate interfaces and intuitive navigation.
• Make sure hotel PMS is compatible and can easily integrate with existing systems.
• Ask and check the scalability and flexibility of the system for future purposes; and if the software will be able to adapt to the changing, and growing needs of travelers and the hotel.
• Ask about the frequency of updates or upgrades.
• Review maintenance, customer support/service, and training provisions/options.
• Compare and evaluate pricing structure and ROI. 
• Ask around in your hospitality network for recommendations, reviews, or feedback.  
• Request demos and trials to test the usability and performance of the hotel property management system. 
• Check data security measures and provisions and compliance with regulations.   

These points help a hotel find the right solution.

However, due to multiple things to factor in, and options available, hotels might feel lost and apprehensive about adopting the revolutionary technology of hotel PMS.

Thus, we introduce you to a comprehensive and smart PMS for hospitality businesses of every size. 

Introducing BOTSHOT PredictoPMS

It is a cloud-based, AI-powered Hotel PMS Software that allows you to smartly and seamlessly manage your property/properties.

PredictoPMS is a centralized platform to automate your hotel operations within 3 minutes and manage everything from pre-booking to post-stay.

PredictoPMS offers:

• Easy and seamless integration with multiple hotel systems such as Channel Manager, Revenue Management System, CRM, etc.
• Complete customization
• Reservation center/management
• Contactless Check-in
• Invoice Generation and Payment
• POS tools
• Smart Housekeeping tools
• Multi-property and currency support

PredictoPMS complies with GDPR and ISO 27001 regulations, offering complete guest data privacy and security.

With a 20% increase in direct bookings and a 73% increase in operational efficiency, PredictoPMS should be your next technological investment!

BOTSHOT offers products for all your unique needs, scalability in all its revolutionary products, and around-the-clock support and maintenance services.

And all this comes at affordable prices, allowing you to get the best within your budget.

Not multiple solutions to overwhelm you further, but just ONE SOLUTION to make things easier for you!

So, don’t wait up. Transform your hotel operations today, Book a Demo with BOTHSOT!

Conclusion

Thus, a hotel property management system is one of the greatest technological innovations in the hospitality industry. Over the years, the technology has matured, allowing hotels to manage entire properties or multiple properties from one single place.

This centralized system integrates and allows a hotelier to always have control of the key systems such as channel manager, revenue manager, etc. It automates crucial functions, operations, and administrative tasks.

This results in enhanced operational efficiency, accuracy, as well as guest satisfaction. The interconnected nature of a hotel property management system further facilitates better communication and coordination between different departments, thereby improving the overall hotel management.

Although it has some challenges such as data security concerns, system downtime issues, integration issues, etc., there are solutions for each one of them. A hotel just needs to be entirely clear on its requirements and ask important questions, to overcome these challenges or completely avoid them.