1. Property Management Systems
Chapter 7

2. 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

3. 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

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

5. 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?

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

7. 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

8. PMS Functionality
Enable guests to make reservations

9. 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

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

11. 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

12. 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

13. 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

14. 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

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

16. 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

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

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

19. 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

20. 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

21. 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

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

23. 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

24. Reservation system screen

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

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

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

28. 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.

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

30. 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

31. GDS

32. ADS/ IDS

33. Other travel related websites

34. Switch
Switch

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

36. 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

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

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

39. 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

40. Switch Pegasus http://www.pegs.com Wizcom (Trust)

41. 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

42. 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

43. 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

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

45. Video