What is a hotel PMS?
A PMS or hotel property management system is a hospitality software used by hotels to manage operations, including (but not limited to) reservations, rate management, housekeeping, and daily front desk tasks like check-in and check-out. It helps enhance operational efficiency, boost guest satisfaction and drive revenue.
Every PMS will have different features, but the idea is that it acts as a central hub to manage everything you need to ensure that your hotel is working properly. Plus, it gives you tools to manage your revenue, optimize rates, digitalize things like check-in, upselling and key cutting, and organize your staff better through shift management and other communication tools.
Characteristics of a property management system
So, what exactly does a PMS do, and why do hoteliers need to carefully choose this software? Thanks to the following core functionalities, PMSs have become indispensable tools for modern hoteliers.
Reservation management
A PMS can be used to manage bookings from different sources, whether direct bookings or bookings from other third parties. You can use it to handle group bookings and room assignments based on availability and guest preferences.
You can also use the software to help with check-in and check-out, offer digital keyless entry, and track guest history and preferences to improve guest satisfaction throughout their stay.
Revenue management
You can use your PMS to carry out revenue management and automate rate management based on historical data and customer preferences. Use your PMS to create segments based on automation that adjusts pricing by attributes. This way you can implement dynamic pricing, space-type pricing, prices per day, prices by age segment, and more.
Housekeeping management
Your PMS can also assist you with better managing housekeeping operations. Through internal communication on the platform, the front desk can alert housekeepers when guests have checked out and track room status, helping to better align and monitor tasks for housekeeping staff.
Payment processing
Your PMS can also help you better manage payments through specialized terminals that allow you to collect payment at different points of sale, whether online through direct bookings, at your hotel restaurant, bar, or pool, or at a self-check-in kiosk. The smoother the payment process is, the easier it will be to drive revenue across the whole guest journey.
Manage the guest experience
The guest experience can be enhanced with your PMS offering digitally forward services like a virtual concierge, online check-in, or even a check-in kiosk that allows guests to check themselves in and cut their own keys. Alternatively, digital keys can be made available that allow guests a full contactless experience from online booking through to entering their rooms.
You can also use your PMS to promote direct bookings with a booking engine that features options for customization, as well as extra add-on options, that will help deliver exactly what guests want.
What is a hotel channel manager?
A channel manager is software hotels use to connect their booking system with online travel agencies (OTAs) and other distribution channels, allowing them to manage their inventory, availability and rates in real time. It helps to streamline distribution and maximize revenue-generating opportunities.
What should a channel manager have?
It's important that a channel manager is able to handle all of your OTA listings, whether with Expedia, Booking.com or Hotels.com. This way you don't have to manage availability across your own direct booking sites and OTAs, running the risk of double bookings. Channel managers update inventory in real time, allowing for smooth distribution.
A channel manager should have integration capabilities, multi-channel connectivity, the possibility for automation, real-time synchronization for inventory and rate management, the ability for analytics and reporting, and the capability of promoting special deals.
Inventory and rate management
You should be able to update room availability and rates across all connected channels at the time of booking. This way you can avoid overbooking by ensuring inventory is up to date across channels. You should also be able to adjust rates to enable dynamic pricing, length-of-stay discounts, or any other special offers.
Possibility for integration
Your channel manager should be able to integrate and sync with your PMS, allowing you to centralize reservations and automate guest flows. It should also integrate with your hotel's direct booking engine to support upselling efforts and link up to your revenue management system.
Support multi-channel distribution
It should be able to support different channels including OTAs, meta-search engines, Global Distribution Systems and your own direct booking channels. By supporting multiple channels, you can ensure easy distribution across them all.
Analytics and reporting
Use your channel manager to track booking trends, occupancy levels and revenue. This way you can better forecast based on historical trends and market demand, while investing more in the top-performing channels.
PMS vs channel manager: which to choose?
A channel manager and a PMS both contribute to a hotel's success, but in different ways. While a channel manager functions as a distribution tool helping your hotel manage rates and availability across multiple channels, a PMS is a broader tool that can be used for operations, channel management, and a wide range of other functions outlined above.
When does your hotel need a PMS?
A hotel PMS is important for hotel operations - it drives efficiency and helps streamline processes while also reducing manual errors.
Small independent hotels and B&Bs might choose to begin with a manual system or a basic tool like a spreadsheet (at least at the beginning) and then slowly move on to a simple PMS that can handle automation of reservations, check-ins, check-outs and billing. A channel manager is likely something that can be added later once operations expand, but if you're only listing on one or two OTAs like Airbnb or VRBO, a full-blown channel manager software might be too complex.
Mid-size hotels, on the other hand, would benefit from both a PMS and channel manager because more rooms, staff and distribution channels, means more work in day-to-day operations. To keep everything working smoothly, mid-size hotels should invest in a PMS that can handle front desk operations, keep track of housekeeping tasks, provide reporting and enable guest communication. For this kind of hotel, it is also a good idea to integrate a channel manager to avoid overbookings.
Large chains require PMS solutions that have advanced features like the ability to manage multiple properties, integrations with CRMs, revenue management tools and analytics tools to analyze key metrics. To streamline workflows across properties, hotels need a user-friendly PMS to manage daily operations and help make strategic decisions while avoiding manual tasks.
As your hotel grows, the complexity of operations increases because you have more guests, more bookings, more staff and more channels to manage. This is where a PMS comes into play. You can centralize everything, allowing your hotel operations staff and managers better control and visibility. It's not just about automation, but about finding a way to make your operations scalable, and choosing a tool that can grow with your hotel. At the end of the day, even small hotels can benefit from features like guest profiles, automated communications and reporting functions.
When does your hotel need a channel manager?
A channel manager is essential when your hotel is listed on multiple OTAs or booking platforms. The more channels you're on, the greater the risk of overbooking or errors. Online distribution without a channel manager can be cumbersome and lead to errors, especially if you're trying to manage bookings across multiple properties and channels.
If you want to avoid double bookings by syncing availability in real-time, save time by automating rate and inventory updates, and increase visibility and revenue by distributing across multiple hotel distribution channels, then a channel manager is crucial. Some hotels may feel intimidated by implementing more tools, but at the end of the day, the more tools you have in your toolkit that actually make a difference in your hotel's scalability, and automation, the better positioned you'll be for growth.
When to use both a PMS and a channel manager
Utilizing both a PMS and channel manager together creates a streamlined workflow where bookings flow in through the channel manager to the PMS, and then the front desk staff can handle the reservations, create guest profiles, manage housekeeping task and take care of billing. The channel manager ensures there are no double bookings by syncing bookings with the PMS and making sure availability and rates are synchronized with real-time updates. This helps to maximize revenue by optimizing inventory and pricing.
It's less about choosing between a PMS and channel manager, and more about choosing a PMS that incorporates a channel manager as part of its functionality. Some PMSs (like 榴莲视频) offer the ability to connect to a channel manager through an API, allowing you to link your software of choice to manage the different elements of your business.
Common mistakes to avoid when choosing a PMS and channel manager
Choosing the right tech stack is an important decision for your hotel, and a PMS and channel manager are fundamental to your business.
The more you can leverage software to reduce the pressure on your staff - automating tasks and reducing errors from manual entry - the greater your staff satisfaction and your guest satisfaction will be. You'll also waste less time, avoid staff frustration and missed revenue opportunities, while keeping guests happy because everything runs smoothly without any issues. The decision is not easy, which is why it's a good idea to have some of the common pitfalls in mind to make an educated decision.
Choosing based only on price
It's tempting to go for the cheapest option and not necessarily the best option, especially if your hotel is on a tight budget or if your operations are quite small. However, a low-cost system may lack essential features that can end up costing your hotel in the long run. Look for tools that have scalable options, meaning that the tool can grow with your operations, adding more features as you need them. This is why it's important to focus on value over price.
Ignoring how systems work together
It can be easy to make isolated decisions without choosing a holistic ecosystem, but this is a huge mistake. The more your PMS and channel manager can integrate together, the less risk you have of double bookings, data mismatches and manual workarounds.
Underestimating the learning curve
Picking a complex tool that has too many features can be more work than it's worth. Choosing a tool that doesn't require a lot of training, requires no installation, is intuitive, has good documentation and offers responsive support should you need it is a good idea. Not only will it support the learning curve, but it will make implementation smoother.
Not planning for growth
Choosing a channel manager or PMS with limited functionalities that can only support a small hotel will create more work in the long run when you need to look for another tool once your hotel outgrows it. This is why it's a good idea to choose a PMS or channel manager that can scale with your business, supporting more rooms, more channels and more features as you grow.
Overlooking user experience
User experience is critical because an easy tool makes your staff's lives easier, not harder. An interface that isn't user-friendly or intuitive means more training will be necessary, slowing down operations and increasing the chance of errors or lost time. Prioritize user-friendly platforms with strong UX and UI to simplify and streamline operations.
Why do you need 榴莲视频 PMS?
We've looked at the ins and outs of property management systems, but are you still wondering how can you choose the PMS that's right for you?
By avoiding the aforementioned pitfalls, and going for a user-friendly, no-installation, intuitively designed platform like 榴莲视频 that can also easily integrate with your channel manager, you can set your hotel up for success and ease. 榴莲视频 easily connects with your channel manager of choice through an API, allowing you to automate processes, centralize your operations in one tool and make data-driven decisions through reporting functions that will drive your profitability.
榴莲视频 enables you to better manage rates and reservations, whether they're for hotel rooms, parking, co-working spaces or anything else your property offers. Plus, an integrated POS with mobile, all-in-one payment terminals simplifies and elevates the F&B experience.
With 榴莲视频, hotel management is faster, more streamlined and ultimately more profitable.
Conclusion
We've explored the key roles that PMS and channel managers play in driving your hotel's success and profitability. The ideal solution? A single PMS that seamlessly integrates channel management, bringing all your processes together into one streamlined system. It's the simplest way to save time, reduce complexity, and focus on delivering incredible guest experiences.
Download our guide The Hotelier's Guide to Changing PMS
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