Property Management Systems Chapter 7

History of Automation in Hospitality Industry At first, automation was a tool for producing and analyzing budgets, reports, statistics, accounts. Then, automation crept into such areas as sales reports, rooms inventory control, timekeeping. Advancements in telecommunications and technology brought reservations systems and their ability to handle transactions. Source: American Hotel & Lodging Educational Institute

History of Automation in Hospitality Industry Further advances came as computers were used to analyze captured reservations data, thus providing important marketing info. Still further advances brought front-office systems that provided guest histories, patterns of use, preferences. Source: American Hotel & Lodging Educational Institute

Introduction What influences technology need for lodging establishments? -  Department needs -  Guest amenities Service level and customer relationships -  Facility size and layout -  Organizational structure

Introduction Property Management Systems - PMS Evolving Complex Peer to Peer (P2P) Same application installed on more than one computer Hotels inventory is its rooms Idea is sell this as much of this space as possible while addressing no shows, and other complications What would it be like to keep up with your schedule, your teacher’s schedule, your girlfriend’s schedule, etc. ? Before anyone can come over house must be clean or your friend’s house must be clean. How would you know that?

Introduction PMS - Centric Model Property Management systems integrate all of the information needed to manage

PMS Functionality PMS must be able to provide six basic functions Enable guests to make reservations Enable guests to check-in/register when they arrive and check-out/pay when they leave Enable staff to maintain guest facilities Account for guests’ financial transactions Track guests’ activities for use in future sales efforts Interface with other systems

PMS Functionality Enable guests to make reservations

PMS Functionality Enable guests to check-in/register when they arrive and check-out/pay when they leave At front desk Remotely PDA Remote terminal

PMS Functionality Enable staff to maintain guest facilities Room Type Status Occupant Inspections

PMS Functionality Account for guests’ financial transactions Credit Card Information Address Information Business Home Room Rate Room Charges Night Audit Collects and Posts Room/Guest Data

PMS Functionality Track guests’ activities for use in future sales efforts Information relevant and beneficial to future sales efforts Accessed by: CRS - Central Reservation System CRM - Customer Relationship Management CRM is used to collect and maintain data about sales contacts. Very comprehensive - names, addresses, birthdates, anniversaries, business, personal

Interface with other systems PMS Functionality Interface with other systems GDS - Global Distribution System CRS - Central Reservation System must integrate seamlessly even if from different vendors Sales and Catering Applications POS (F&B) Retail Points Seamlessly to avoid duplicate data and mistakes. Real time interfaces. Heating Ventilation and Arir Conditioning Energy Management Systems

Interface with other systems PMS Functionality Interface with other systems HVAC or EMS Systems In-Room Amenities Messaging Security Call Accounting System Seamlessly to avoid duplicate data and mistakes. Real time interfaces. Heating Ventilation and Arir Conditioning Energy Management Systems

Four Key Interfaces Real-time interface with the GDS/CRS The activities management system Built-in revenue and yield management The enterprise

Real-time Interface GDS/CRS Goal: to generate revenue Switches Goal: to generate revenue Complicated due to different business models and varying relationships between entities Real-time: greater flexibility Costly to develop systems Avoid commissions Allocations to third party booking agents Refer to notes on page 143

Internet Reservations Module (IRS) Most PMS have IRS Make reservations online Book through Internet Eliminate fees –Expedia about %12

Real-time Interface Tracks guest room and activities Cancels appointments if guest cancels or checks out Repairs Pagers, blackberry

Real-time Interface Revenue and Yield Management Tools Managing room sales to maximize revenue and profits Examines multiple variables and provides complex calculations Avoid commissions Allocations to third party booking agents Refer to notes on page 143

Real-time Interface The Enterprise Refers to all systems - front and back PMS (front) Payroll, Purchasing, HR (back) EAI - Enterprise Application Integration End goal: of fewer redundancies and increase in collaborative synergy ERP - Enterprise Resource Planning BPI - Business Process Integration Avoid commissions Allocations to third party booking agents Refer to notes on page 143

GUI - Graphical User Interface Intuitive Fits naturally with expectations Ease of training Multi-lingual Includes Websites Avoid commissions Allocations to third party booking agents Refer to notes on page 143

PMS Evolution 1st Generation: Minicomputers 2nd Generation: UNIX/NOVELL 3rd Generation: Reservation systems 4th Generation: Client-server 5th Generation: GUI 6th Generation: ASP (VPN)

Reservation Systems Selling individual reservations Selling group reservations Displaying room availability and guest lists Tracking advance deposits Tracking travel agent bookings and commissions Generating confirmation slips and various reservation reports

Reservation system screen

Displaying room availability and guest lists Today’s inventory Future date 7 to 14 day availability Blocked room

Reservations CRS (central reservation system) IRS Voice Center GDS (Global Distribution System)

Companies Fidelio German company World Leader Was bought by Micros, USA based company Now, Micros/Fidelio

CRS Decentralize the reservation function Centralizes marketing and sales efforts One way Two way One-Way Interface-By far the most prevalent. It's cost effective and the easiest to implement. It's a unidirectional transmission of reservation information from the CRS to the PMS, resulting in a new reservation entering into the PMS. The downside is it doesn't include a confirmation mechanism or real-time inventory status at the corporate level. In some instances, a one-way interface may be able to link downloaded CRS reservations to existing PMS profiles or to automatically update or cancel a previously transmitted reservation. One-and-a-Half-Way Interface-- Has all the features of a one-way interface but also is capable of sending limited data back to the CRS, such as an acknowledgment of receipt after processing the reservation (PMS reservation number) or an error code if applicable. Some include management reporting and data extracted during night audit, which is then uploaded to a central system. This could include summary statistics or guest-stay information forwarded to a central database for further analysis. A step beyond the one-way interface, this still doesn't provide a clear, real-time view of the property inventory. Two-Way Interface-A bi-directional interface that exchanges complete information in both directions between the PMS and the CRS. The transition to a twoway interface is more difficult if a property has different vendors for its PMS and CRS. To make the interface seamless, it needs to be designed to allow maximum information to be translated into another format. To minimize system integration costs and programming headaches, select a vendor that offers both CRS and PMS applications, or integrated applications. Integrated applications allow a true sharing of all data in real-time so that the database always reflects the most accurate property room inventory and updated guest profiles, and each source can access guest-service data, such as directions from the airport and special property attractions.

Internet based CRS Started in late 1990s Flexible Cost effective Compliant with GDS Marriott.com / starwood.com / bestwestern.com

Distribution channels for a hotel Travel Agency (GDS) CRS (800 reservation number) Call the hotel directly Corporate travel agent Hotel website (i.e. Hilton.com) Internet travel agency (i.e. Expedia.com) (Online GDS / ADS/ IDS) Walk-in Other

GDS

ADS/ IDS

Other travel related websites

Switch Switch

Yield management rules can be established for: overbooking discount control length of stay control product class control group evaluation

Traveler’s Use of Internet 87% of traveling population in the U.S. are online travelers 88% use the Internet to make travel plans 52% used the Internet to book their travels

Global Distribution Systems Joint ventures linking a number of diverse businesses A big inventory Smart Switch Translator

GDS There are 4 major GDS Amadeus Galileo/Apollo Sabre Wordspan

Smart Switch American Airlines Hertz Rent a Car Unix System Marriott Windows Based System Hertz Rent a Car OS System Access Codes Access Codes Access Codes SABRE Common Platform

Switch Pegasus http://www.pegs.com Wizcom (Trust) http://hospitality.cendant.com/technology/

Property Management Systems Property management systems provide data that marketing can use for: Revenue maximization Better rooms inventory control More accurate management of room blocks Yield management capabilities Source: American Hotel & Lodging Educational Institute

Property Management Systems Automation helps hotels provide better guest service and related recognition programs: Guests can count on same room, same seat, same car preference as a result of guest history and preference systems Express check-in and check-out Automated check-in and check-out Similar technology has provided automated airline ticketing and car rentals Source: American Hotel & Lodging Educational Institute

Front Office System Front office system Room status and housekeeping management -room discrepancy report -room status report -etc. Guest registration -retrieve reservation -assign a room -collect payment -verify room status Front office system Cashiering and guest check-out -generate folios -post transactions -open and close cashier shift -guest check out Telephone services  - Phone calls - Wake up call -Messages

Night Audit Recording all transactions Posting of room and tax Producing a trial balance Generating reports and updating statistics

Video http://www.youtube.com/watch?v=1OFs7130GKQ