Operating a hotel without a Property Management System (PMS) can be difficult and time-consuming. Hotel PMS’s help manage reservations, billing, and other important aspects of everyday hotel operations. In this article, we’ll discuss how crucial having a PMS is and why hoteliers shouldn’t miss out on this advancement.
How to Manage a Hotel without using a PMS
In order to manage a hotel without using a PMS, hotels will need to establish systems and procedures for bookkeeping, reservations, guest check-in and check-out, housekeeping, and maintenance. They will also need to train their staff on how to use these systems effectively.
For bookkeeping, a hotel has to track all income and expenses manually or use a third-party accounting software. For reservations, they can take calls or use a booking website. For guest check-in and check-out, they will need to have a system for tracking key cards or room numbers. For housekeeping, hotels will need to create a cleaning schedule and for maintenance, they would have to keep a log of all repairs and preventive maintenance tasks.
By establishing these systems and procedures, hotels can manage their business without the use of PMS software, but it’s going to be more laborious and prone to human error. A PMS can automate many tasks and make life much easier.
Hoteliers have long known the benefits of using a Property Management System. A PMS can save hotels time and money while also providing a better experience for their guests. It streamlines the day-to-day operations of running a hotel.
The benefits of using a PMS
From managing bookings and reservations to keeping track of maintenance and housekeeping, having a PMS in a hotel tech-stack, can certainly help. Here are the top benefits of using one.
1. Save Time
One of the core benefits of using a PMS is saving time. With all of the reservations, bookings, and guest information to sort, it’s important to quickly and easily access whatever and whenever it’s needed. No more sifting through piles of paperwork or searching through multiple software platforms or spreadsheets in order to find what a hotel admin is looking for—a PMS can have everything needed, right in one central location. And because a PMS automates many of the tedious tasks associated with running a property, such as sending confirmation emails or generating invoices, or automating payments with a solution like Kovena, hotels have more time to focus on the things that matter most, like unlocking hotel revenue.
2. Save Money
In addition to saving time, a hotel PMS can also help save money. By automating many of the tasks, a PMS can help businesses reduce labour costs and increase efficiencies across the entire operation—from housekeeping and maintenance to bookkeeping and marketing. Hotels are then able to boost their bottom line even further.
3. Better Guest Experience
When it comes to running a hotel, the guest experience is everything. After all, if guests have a bad experience at a property, they’re unlikely to come back—or worse yet, they could leave negative reviews that damage the business’ reputation.
Fortunately, a good PMS can help avoid these kinds of problems by giving hotels the tools they need to provide an exceptional experience for their guests from start to finish. For example, with online booking capabilities and automatic confirmation emails, guests will appreciate the convenience and peace of mind that comes with knowing their reservation is taken care of before they even arrive at the property. Features like online check-in/check-out and self-service portals make it easy for guests to get settled in and take care of any necessary business without having to wait in line or track down someone on staff. By providing a seamless experience for guests from beginning to end, hotels can increase satisfaction ratings, boost repeat business, and generate positive word-of-mouth reviews—all of which will help grow their business in the long run.
How to choose the right PMS software for a hotel
From monitoring bookings to managing staff schedules to dealing with guest requests, there is a lot to keep track of on a daily basis when managing a hotel. That’s where a Property Management System (PMS) comes into play to streamline operations and keep everything running smoothly. But with so many different options on the market, how can hoteliers choose the right one? Here are a few tips to consider:
1. Determine the hotel needs
Hotel managers or owners should first sit down and make a list of what they need from a PMS. What kind of features are most important to their business? Do they need software or payments that integrate with other systems into their hotel tech stack? Is ease of use a priority? Once the requirements are set, hotels are able to narrow down their options more effectively.
2. Compare costs
Hotels always have to consider the costs when employing any kind of software or system. They would want to know what their options are and compare costs accordingly. It’s best to shop around while considering both the budget and the features and functionalities they want to use.
3. Read reviews
It also helps to read the reviews and recommendations of other hoteliers online to gain insight as to which Property Management System offers excellent support, great functionalities, and so on. It’s best to look for independent review sites to ensure authenticity.
4. Receive a product demo
Allowing the sales team of the hotel PMS to do a product demo will allow hotels to shop around and understand the look and feel of each software solution. Every PMS differs from one another, so it’s best to thoroughly look at multiple options to get the best deal.
Choose a PMS with embedded payments
A PMS can already be highly valuable in and of itself for hoteliers. However, a PMS that has embedded payments can maximise efficiencies twice over. Embedded payments can help eliminate the following problems:
Reduce No-shows
According to Kovena’s Pacific Islands Hotel Insights 2022 Report, hotels lose an average $137K every year due to no-shows in the region. No-shows can really hamper a hotel’s occupancy rates and financial forecasting. By choosing a PMS with embedded payments, hotels can reduce no-shows by charging guests before their arrival according to the hotel’s booking terms and conditions.
Reduce Chargebacks
With chargeback technology built directly into the Property Management System and the Kovena iframe, a hotel can be sure that they will significantly reduce chargebacks at their property. Kovena is currently seeing a chargeback rate 20x lower than the industry average.
Better Reconciliation Visibility
If a PMS does not have embedded payments, they will need to access a separate software in order to access booking and payment reports, which can be difficult for reconciliation purposes. With Kovena, hoteliers will be able to access a reconciled report with booking details and payment details, directly within their Property Management System extranet.
Secure hotel payments
A business can be exposed to more payment security risks if their system is not PCI Compliant. Property Management Systems that use Kovena have access to our PCI Travel Vault which allows hotels to process payments via the stringent PCI DSS Level 1 standards, giving the hotel and their guests more peace of mind as they complete their booking.
A PMS software can dramatically improve the guest’s booking experience and the hotel’s operational processes. It’s important to do thorough research when deciding which Property Management System to employ.
Contact us if you’d like to hear our recommendations as to what the most robust and competitive Property Management Systems are. Or if you are a PMS looking for an embedded payment solution like Kovena, let’s have a chat to make your hotels and their guests have a frictionless payment experience.
