The Independent Hotelier's Guide to Property Management System Selection

Step 10 - Arrange property management system demonstrations

Step 10 - Arrange system demonstrations

From your vendor short list, arrange system demonstrations for final round of viewing and evaluation of potential property management systems. 

Booking a Software Demonstration

Part of the the evaluation process is to book demonstrations with system vendors, so you may review the products that you are interested in, learn more about them, and see if the software is a good fit for your business.  

I would highly recommend that your team plans to spend the extra time necessary to get a thorough demonstration with someone that is very familiar with the product.  

You can then spend time further evaluating the software on your own after-wards.  If a brief overview video is available on the vendor's web site, by all means watch it first. 

Be prepared to provide as much information as possible to the vendor about your business needs and items that your team have determined are important to your hotel, staff and guests.  Have your list of needs prepared prior to the product demo and provide it to the vendor about a week prior to your scheduled demo so they can focus on your needs.  At the end of the demo, be ready with any questions that may not have been answered during the demonstration.

If you are able to get an evaluation copy of the software after the demonstration, use it for your team to run through the entire process of a guest stay at your hotel, from reservation to checkout, not to forget housekeeping functionality, accounting, reports, guest history and groups.  Running through this process although time consuming, will ensure that you do not miss anything.  Questions often come after the fact, so using this process will also provide you with confirmation that the software meets your needs and works as expected.  

If you are in the vicinity of a hotel or resort that is using one of the property management systems that you are interested in, you may even be able to arrange a site visit, it never hurts to ask.

This is also the time to firm up your budget.  As you evaluate products that meet your needs now is the time to start requesting quotes as you evaluate products on your short list.  It is also time to start asking for references.  When  speaking with the vendor's current clients, ask specific questions that are of interest to your operation.  Find how the vendor respond to issues, how do they rate the training and support they receive from the vendor?

Recap

1. If possible, review a feature summary or  perhaps watch a brief video overview on the product, check out the vendor's web site, you should be able to find this information there. 

2. Book a product demonstration with the vendor, someone that is familiar with the product. They will walk you through a demonstration either on-line, using software you download or view via the Internet, or an in person meeting. 

3. Involve your team to ensure you get the most out of the property management software demonstration.  Having a team makes it easier to remember items that were covered in the demonstration.  Items that one team member missed may be recalled by another team member.

4. Ask for an evaluation copy or access to a demonstration hotel that you can use to further evaluate the product after your demonstration. Run through the entire process of a guest's stay.

Good luck and enjoy the demonstration process.

Jeff Sefton

property management system evaluation

Pro and Cons of Web Based Versus Server Based Property Management Systems

Web Based or Server Based?

Now it’s time to decide the best option for your property. Will it be a web based or server based solution?

There are pros and cons to each, it depends entirely on your business needs and situation as well as your budget, and which property management system offers your business the best all round solution based on your business requirements.  It is best to have an understanding of these options prior to the evaluation process of property management systems for your Hotel.

Your business needs should have been determined prior or during the first stages of the system evaluation process. 

Your budget is something that should be determined at the beginning stages as well.  If you have an existing system what are you currently paying and for your future system, what will the additional benefits mean to your business and are these benefits worth paying for?  If the property management system is replacing a manual system or your hotel is new, you may be unsure what your budget figure is, get your accountant involved.  Work with your potential property management system vendor to provide alternatives such as monthly invoicing instead of quarterly or yearly.  Perhaps paying higher payments during peak business months and lower payments during slow season is a possibility.  Some vendors that provide web based hosted solutions may also provide pay per use/transaction billing with low upfront costs, so again this may be a solution where your budget is concerned.    

Looking at your current situation, if you are replacing an existing system can some of your current computer hardware be used with the new property management system or is it proprietary?  In the event you have a restaurant or phone system in place, can you just interface this existing equipment without having to upgrade?  Write down the makes and models and if you need help, ask your current restaurant system or phone vendors for the information and supply this information to your potential property management system vendor to check interface compatibility.  If your head is spinning at this point, get an experienced technician involved and one that has experience dealing with hotel property management systems.

Web Based:

A  web based, hosted solution is one in which the server is located off site, not at the hotel but typically at a secure data centre. When the employee accesses the property management system data such as looking up an existing reservation or checking in a guest at your hotel, they do so using a personal computer or laptop and access the data via the Internet.  

Advantages of web based property management system

• Typically less cost involved with computer equipment compared to server based.
• Full time IT department at the hotel may not be necessary. 
• Remote access is easy when owner, manager or reservationist is not at the property and they need access to the property management system from a different location. 
• Consistent Data backup is completed at the data centre.(You need to verify this with your vendor, see the Service Level Agreement provided by your vendor for more information.)
• Software enhancements and upgrades are typically done regularly and easily.
• Quick deployment.

Disadvantages of web based

• Does not work optimally without a good quality high speed Internet connection.
• Data access is dependent on the Internet connection being available.
• Not a good choice for areas that have unreliable internet connections.

Server Based:

A server based system is one in which the server is on-site at the hotel. When an employee accesses the property management system data such as looking up an existing reservation or checking in a guest at your hotel, they do so using a terminal that provides access to the data on the server.  

Advantages of server based

• Internet not needed.
• Data is physically located at the hotel.
• Have more control over data? (This is debatable)
  

Disadvantages of server based

• Costs to setup and maintain are typically higher than web based systems
• Backup is done at the property and may not be tested for integrity or may be forgotten.
• Data is physically located at the hotel; data security may not be as high.
• Software enhancements and upgrade need to be applied via modem, internet or CD and are done less frequently due to the slower procedure.

Notes:

With Web based hosted solution property management systems now being readily available, reliable and proven, having a server based system with data located on-site may no longer be deemed an advantage.

A server based system may crash or a web based system may not be available due to an internet outage. In both cases, a manual backup plan is key to carrying on with crucial business until the system is once again available. Having the front desk staff run reports on a regular basis or having automated reports print at regular intervals throughout the day/night is always a good idea. 

There are web based systems that create an auto backup of reports locally on each personal computer that is logged into the property management system application.  

In the event of an internet outage with a web based system, guests can be checked in and out from another physical location in order to keep the property management system records current, and reports can also faxed to the Hotel during the internet disruption.  It is also possible to have two different internet providers so if one goes down, it is possible to switch over to the other.

With a server based system there may be a backup server that take over in the event of a server crash or in the event of a hard drive crash another hard drive that kicks in as a replacement.  During the evaluation process is the time to ask questions about backup and the options that the vendor has available to your business.

I will say here that I am not an expert in the field of data security however I do know that the key to data security with either type of system is defined by the policies and procedures that are in place throughout your organization.  For server based systems, if a server room is not secure, then your data is not secure. For both web and server based, if someone has unauthorized access to the property management system then your data/guest data is not secure.

There are both server based and web based systems that meet the Payment Card Industry, Data security standards so I can't say one is more secure than the other.  It would however be advisable that the property management system you decide to purchase meets the payment card industry data security standards.

Good luck with the evaluation process.

Jeff Sefton

See article on PCI DSS

PCI DSS = Payment Card Industry, Data Security Standards "The PCI DSS, a set of comprehensive requirements for enhancing payment account data security, was developed by the founding payment brands of the PCI Security Standards Council, including American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc. Inc. International, to help facilitate the broad adoption of consistent data security measures on a global basis." Source: PCI Security Standards Council

property management system evaluation

Business Intelligence, What Is It and How Does It Pertain to Hotel Property Management Systems?

Business Intelligence (BI) is not a new term, but as BI is heard more regularly in the Lodging Industry it is still a mystery to many Hoteliers.

Business Intelligence means gaining business knowledge through the use of technology and turning this data into useful information for your business.  Having the ability to report on data from multiple systems and having access to this information by way of consolidated reporting, with the ability to drill down to analyse information further, enables Hoteliers to make informed business decisions.

Property Management System Vendors are offering their clients better tools to collect data from single, and multiple properties while providing the reporting capabilities required to analyse and review this information.   

Business Intelligence in the Hospitality Industry is improving as systems from multiple vendors are integrated.  A good example of some systems that we are seeing integrated are Property Management Systems, Employee Time Clock Systems, Spa Systems, Point of Sale Systems, Catering Systems and Golf Systems.  The ability to use one Business Intelligence Tool to get current information from all systems when you need it is quite powerful.  Providing Hoteliers with the information quickly, helps to make timely decisions instead of having to wait for the information from each system to be manually compiled.

The integration of unrelated systems is fully dependent on the Business Intelligence Tools available and the different system vendors working together to provide solutions for their customers. 

The key to Business Intelligence tools is that they access information that is stored in a database format and the use of databases is now quite common in a wide variety of Hospitality Systems.  With the availability of more, and better Business Intelligence Tools  being accessible to the Hotelier, business intelligence is a term we will hear more of in the Lodging Industry.    

The results provided by Business Intelligence Tools are only as good as the data that is available to be captured and reported upon, so it is imperative that Hotel Managers ensure that the correct information is going into their Hotel Systems or the end result will not be effective.

RECAP

Decisions are made by people. Data or information is entered into computer systems for most part, by people.  Business Intelligence Tools provide the means to access, sort, and report on this information. The information is useful when it makes sense, is accurate, and is accessible in a timely manner.  This information is analysed by Hoteliers so they can make better business decisions. 

Jeff Sefton

Travel Agent Functionality in the Hotel Property Management System

You can expect that the travel agent section of the Property Management System (PMS) will track the Travel Agents that make bookings for your lodging business and the commission percentage that they will earn for booking a reservation at your Hotel.

The contact information you can expect to enter into the Property Management System for each Travel Agent would be the travel agency name, address, phone number, fax number, email address and the contact name of the agent(s) as well as the International Air Transport Association (IATA) eight digit number which is the main identifier for the travel agency.  Although the International Air Transport Association distributes and maintains the IATA database numbers these IATA numbers are presented by travel agencies verbally when booking hotel reservations for their clients or more often the IATA number accompanies electronic reservations made via Global Distribution Systems (GDS).  

The property management system provides the ability to reconcile Travel Agent bookings in order to pay out commissions to the agencies that make bookings.  The Property Management System will typically offer the functionality to produce cheques, offer an export to another accounting system to produce the cheques, or offer an export to a service company that manages payment to the Travel Agencies for you.

Jeff Sefton

What Do Reporting, and Baking a Cake Have in Common?

When you are baking a cake, it is imperative that you follow the recipe, use all of the ingredients and  use the correct quantity to yield the best result.  Leave out just one ingredient or use the wrong quantity of any of the ingredients and  the result can be disappointing. 

The same holds true for reporting in respect to the data that is input into your property management system. Incorrect or missing data skews the reporting results;  however this can be more than disappointing.  If you are making business decisions based on reports that are created using incorrect or incomplete data, this can have a financial impact on your business.

Let’s take a look at an example of a marketing campaign and reporting.  This campaign has been launched, and a substantial portion of your marketing budget has been allocated to this campaign.  Within your property management system a special rate has been set up that relates directly to this marketing campaign. When a potential guest calls into your your hotel reservation office, the reservation clerk asks qualifying questions during the booking process and determines that this booking relates to this current promotional campaign.  The clerk chooses the appropriate source of business code, market segment and promotional rate for the reservation and inputs complete guest contact information including mailing address and email address.  You then have the information needed to send out a follow-up letter or email campaign for guest satisfaction surveys or perhaps email campaigns relating to future events or special rates to this customer.  Thanks to the accuracy of this particular reservation clerk, further reporting data is complete with an accurate source of business, market segment and rate selected.  This data is now available to yield accurate reporting.

Now let’s look at some factors that may affect why the data can be inaccurate or is incomplete.

• Not all clerks are thorough and consistent in obtaining and entering guest information.

• Reservation staff may be rewarded for volume, however accuracy is secondary.

• Some mandatory fields in a reservation may be bypassed and filled in with numbers or stars.

• When the front desk covers after hours for reservation staff they may not be as well informed.

• Front desk or reservation staff may be rushed and choose the quickest method of input, not the most accurate.

• Staff may be rushed and choose to go back to fill in the appropriate information, they end up unable to as they are too busy for entire shift and it never gets done.

• It’s easy to choose the first item in source of business or market segment list than it is to search for the correct one.

• Staff may choose to input the correct rate amount but do not choose the correct rate name or category.

It is essential to have a process in place that includes consistent training, and an ongoing auditing of  processes that affect your reporting data. 

Staff should be rewarded not just for productivity, but for productivity and accuracy combined, as both are equally important.

Accurate and consistent data can be created if everyone concerned understands the flow of data and the benefits that accurate reporting have on the business.   

Once you have decided on a property management system for your lodging business, the first thing that you want to understand is the data flow and how it affects reporting.  Build a process for best practices with regards to data entry in your new system, monitor it regularly and enjoy your accurate reporting.

Jeff Sefton

Independent Hotelier's, What Challenges Do They Face When Selecting a PMS?

What challenges do Independent Hoteliers face when selecting a Property Management System (PMS)?

If you happen to be an independent Hotelier then the field is wide open and the PMS choice is entirely yours.  You may select from any of the property management systems available and there are many to choose from.  You may find however that your resource pool is small or non-existent, especially if you are new to the business.  You may not have past experience with the PMS selection process even if you have plenty of Hotel Management experience.

Brands and Hotel Franchisors have the resources and people with experience that the independent Hotelier may not. Choosing a PMS is daunting enough, but when you throw in the need to select and purchase other systems such as Point of Sale for your Restaurant, Telephone Call Accounting Systems, PBX Systems, Global Distributions Systems and On-line Booking Engines, the task becomes huge.

Perhaps you have some of those systems already in place and need to make sure they are compatible and will interface with the new PMS.     

In the case of brands or franchises, the Franchisor has typically selected and mandated a property management system that is to be used in all of the hotels that carry their brand name.  The work is already done with regards to the evaluation process as there is no option to select a property management system other than the mandated system. The decision has been made for the Hotelier and business needs already have been taken into consideration.

Other systems that interface with the Property Management System may also have been selected by the Franchisor, such as Point of Sales systems for Restaurants and Global Distribution System providers.  This simplifies the systems process for the Hotelier or Management Company immensely.

Mid range brand Franchisors may offer a choice of 2 or 3 approved, mandated systems to choose from, so that narrows the playing field.

Membership brands may not mandate a system and give their members the choice of selecting any system they wish or provide a short list of systems that their members prefer, which again helps in the process.

With the independent Hotelier in mind, I began writing articles to provide information to assist with the task of choosing a Property Management System for their lodging business.  The goal is to arm these Hoteliers with information they require to begin the process and gain a better understanding of what it entails.

I appreciate your feedback. If you have questions you need help with, drop me a line. If you have information to share, please do, as it will benefit many.

If you wish to send me an email, choose the "email me" link to the right of the articles under the "About" heading.

Feel free to respond to any of my article posts, it' s easy to do. Just choose the comments link at the bottom of each article and provide your feedback!

Best Regards,

Jeff Sefton

property management system evaluation

Hotel Front Desk Clerk Escapes Killer Plate, What Do Tools And Training Have To Do With It?

The front desk team had just cleared several long check-in lines. Out of the corner of my eye I saw an enraged hotel guest beelining for the front desk.

I saw something gleaming in his hand and just at that moment that "something" took flight, spinning like a killer Frisbee in the direction of a fellow front desk clerk.

Without missing a beat, the clerk ducked and a plate crashed into the wall behind him smashing in a hundred pieces while chocolates and fruit littered the floor.

It suddenly occurred to me that this was a "return guest gift" that had been hurled. Beautiful hand crafted chocolates and artfully cut fruit presented on an antique plate, now just a mess on the floor.

We were experiencing a case of room rage and this hotel guest had just lost it.

The hotel had been acknowledging this guest for his return business; however on this day, the guest had not been checked into the same calibre of room he had stayed in on previous stays.

The "return guest gift" had been looked after that morning so the guest history in the Property Management System had been consulted. During this stay however, when room pre-assignments had been completed, someone had missed assigning the guest their expected room type.

Could this incident have been avoided by using the guest history information more effectively? Was there something lacking in the business tool (software) itself? Was there a lack of training of the individual that was in charge of room pre-assignments and return gifts?

The reality is that it very well could have been all or some of the above or perhaps this guest may have reacted as they did regardless. This type of behaviour cannot be condoned under any circumstances but serves as a dramatic example of the affect that business tools and the use or misuse of them can have on your business.

The items mentioned above apply to all business software, not just the type mentioned in this article. Ask yourself these questions to make sure you and your staff are getting the most out the software that you are using to run your business.

1. Are all the features you could take advantage of, being used to help your business process?

2. Are the right tools (software) being used to do the job?

3. Are all employees trained to use the software properly?

When you are evaluating potential Property Management Software for your business, you may find that the system you are evaluating does provide features that you require. You need to make sure the features work the way you expect them to and provide full and easy access to information that you require to complete the everyday tasks that take place at your Hotel.

The success you experience with your Property Management System also hinges on how well your staff are trained to use the software to accomplish their work and look after your guests.

Training should be on-going for new hires, with reinforcement training for existing staff.

During the evaluation process you need to be sure that the software you choose is the best fit for your hotel. You also need to confirm that the vendor offers the resources your staff will need for training during the implementation procedure and for the life of the product.

Good luck with your evaluation process!

Jeff Sefton

Property Management System Features Evaluation, Never Assume!

Back in high school one of my teachers would often say, "never assume it just makes an ass out of u and me."

This saying brings to light the importance of completing a detailed evaluation prior to purchasing a Property Management System for your Lodging business. There is a lot riding on the decision you make.

Earlier this year I purchased a portable phone for my home and made a short list of what I needed and wanted in a portable phone. I needed a new phone as the old one was dying. I needed it to fall into my  budget range, I needed one handset but I wanted two, I needed a built in answering machine as my old one was on it's way out, I needed a range that would cover the main rooms of my home, I wanted a phone with a long range so I could take it outside on a sunny day.

I ended up purchasing a unit that was within my price range, it included an answering machine and a  long range so I could take it outside and it included 3 handsets.

A couple of weeks later,  I was writing a letter using my computer and the phone rang, it was one of my friends that is well versed in talking for long periods of time making it difficult to get a word in edgewise.

That's easy enough I thought, I will continue with my letter and just put them on speakerphone while they talk. At that moment, I realized that my new phone did not have a speakerphone like my old one did, a feature that I really liked and was really missing at that moment.

It also occurred to me that I had assumed that all portable phones these days had speakerphones and never put that on my list.

Looking back, if I had taken more time in the evaluation period and perhaps included another family member in the telephone evaluation I would have reduced the risk of overlooking something and may not have overlooked the fact that the speakerphone feature was missing.

Portable phones can be returned or replaced relatively easily, however a Property Management System (PMS) cannot.

A great deal of time, effort and expense is involved in the training and implementation process for a Property Management System (PMS), the last thing you want to learn after you have made the purchase and completed the installation is that a feature you assumed was there, isn't. 

Good luck with your evaluation process, take enough time, include the right people and never assume!

Jeff Sefton

Changing Property Management Systems, how to Reduce the Disruption

There is no doubt that changing the property management system for your Hotel, Resort or Inn is disruptive to the business routine for your team, and the change can also be disruptive for your guests.  Anyone that has been through the replacement of software that is an integral part of their business will agree.

Preparing your entire team mentally and organizationally to make the change is the key to a successful, less disruptive and less stressful switchover to your new property management system.  The time to get everyone excited about the change is during the preparation stage.

The preparation stage begins during the evaluation process and will continue into the training and implementation phase of your new property management system.  If the targeted implementation date is sooner rather than later, the evaluation process will need to overlap the planning of the implementation phase.

Some factors that may affect the timing or urgency of changing your property management system are:

• Current property management system is at the end of its life cycle and needs to be replaced.
• Franchise agreement ending, the business is dropping the flag (going independent, no longer a franchise).
• Purchasing a Hotel or Resort and the existing property management system is not part of the deal.
• Opening  a new Hotel or Resort and you require a property management system.

Once you have purchased a Property Management System, your property management system vendor will assist with the planning process, however the Project Manager responsible for the Property Management System evaluation and the Hotel Management Team need to step up to the plate and lay the foundation since it all starts prior to the purchase and during the Property Management System evaluation.

Good luck with your evaluation and planning!

Jeff Sefton

Expanding on the property management system requirement list for your Hotel, Resort or Inn

In the last article, the topic was about creating the high level requirement list for your hotel. Now we will look at breaking down your high level requirements in more detail. Although this can be a time consuming endeavour it is well worth the effort.

This process will help your team cover all the bases while making your needs crystal clear. The goal is to end up with a detailed evaluation checklist to meet your business needs. Keep it as simple as possible and continue to ask yourself if the item on the list is a must have or a nice to have function. This list should consist only of must haves, keep a separate list for the nice to have functions.

Take your high level list or modules then start listing your must have functionality under each module heading. Break the modules in manageable sections, let's start with the reservations module for an example.

Within your module headings create summary sections such as creating a guest reservation, modifying reservations, reporting and so on.

Creating a guest reservation.

Independent guest reservations
Source of business related to the reservation
Market segment related to the reservation
Reservation deposits
Attaching Travel Agent information for commission tracking
Email/print guest registration card
Select from a variety of room rates and change room rates
Process no show reservations
On-line Booking reservations
GDS reservations

Modifying a guest reservation

Cancel a reservation.
View and change guest address and contact information.
View or change arrival and departure dates (length of stay)
Add, view or change guest notes or requests
Change or remove a travel agent that is linked to the reservation
Change rate.

Reservation Reports

Productivity reports
Forecast reports
Consumption reports
Statistical reports

Group reservations (you may consider taking the items from your reservations module list that apply to the group module to start your list for the group module.)

Wholesaler reservations (you may consider taking the items from your reservations module list that apply to the wholesaler module to start your list for the wholesaler module.)

As you can see above, it begins to get much more detailed. The processes may then be grouped into reservations processes made at the reservation agent level, the on-line booking level and the Global Distribution level.

You can also see that the group module and wholesaler module are related to and intertwined with the reservation module but at the same time they are indeed separate modules. It will be easier to keep them noted as separate modules during the evaluation list exercise.

Not all modules may apply to your property, if not don't include them. The reservation manager may also work as a group coordinator at one property however these will be two distinct positions for these tasks at another property in which case the reservations manager may work on building the reservations list and bring in the group coordinator to assist with the group module list. Not every property is the same, so the extent of the list and the people involved will vary from hotel to hotel. 

Not only are hotels different from one another in their needs, property management systems are different from one another. Some property management system companies cater to resorts while others to city hotels, some to full service hotels and others to limited service hotels. The point here is that they may have different functionality and may offer more advanced functionality in one module over another depending on the types of lodging clients they cater to.  

The above exercise helps to ensure that your specific requirements will be met and you don't have a surprise after signing on the dotted line. You do not want to be in a position where you find out something you thought worked one way works in an entirely different manner or a function you took for granted thinking it was there, isn't.  

Lower the risk of surprises. It is within your control!

Jeff Sefton

   

property management system evaluation

Building the property management system requirement list for your Hotel, Resort or Inn

Now that the property management system evaluation team has been formed, it is time for the team to begin building the high level system requirement list. The high level requirements will get broken down into more detailed requirements at a later stage, at this point think about the system as modules such as Front Desk, Reservations, Housekeeping, Accounts Receivable and so on until you have covered them all. Refer to previous posts for guidance, these will provide you with a breakdown of sections, or modules.

An easy way to work through the modules is to layout the system flow, use post it notes on a wall or blackboard. If you are able to meet in an area where you can keep the notes up for further meetings, great! otherwise take a photo and post the notes again at your next meeting, or perhaps tape them to a flip chart that you can bring to each meeting.

If the team begins with a reservation being made and how the reservation flows though the system while at the same time thinking about the reservation also as a guest and all the touch points that the  guest experiences during their stay.

The flow charting process will help the team not only understand the information flow, but also have a better understanding of the system as a whole and not just the particular module they have been exposed to. 

The Project Manager will organize these manageable sections with help from the team and assign team members to be responsible for one or more sections. The Project Manager will then review the objectives of this exercise with the team, set a date for the next meeting and set the schedule and agenda for future team meetings. 

If for any reason a team member is unable to attend a meeting it is their responsibility to assign someone from their department to attend, while providing their replacement with the information they will be expected to present at the meeting.

Go with the flow!

Jeff Sefton

 

property management system evaluation

Building your Property Management System Evaluation Team

Choosing a strong and diverse evaluation team to help choose the best tools to run your hotel is also the first step to having buy-in from your hotel team. It is important to have everyone on-board when a new property management system is selected for your property. Everyone involved in your organization from the owner, hotel management company and senior management to the front desk, reservations, sales and housekeeping department needs to be invested and committed to the project.

Prior to beginning the evaluation process, it is important to designate a project manager that will be accountable and see the project through from start to finish. The purchase of the property management system will signal that the the evaluation process has officially ended. 

The Project Manager is the first person to be selected. This selection may already be determined and possibly a consultant has been hired for the job, a manager at head office, a manager at the hotel, someone in operations or someone in the information technology department.

At this time it is important begin to think about the next project, this will be the property management system training and implementation which is likely to occur several months to a year after the evaluation process begins. This time line depends on how complex your business needs are and how much time can be dedicated to the evaluation and purchase process not to mention the schedule of the property management system vendor.

Evaluation team members may consist of operational managers that may use functionality that is geared to their management role as well as front line staff that would use the property management software on a daily basis and for the majority of their day. Staff in various positions such as Front Desk Clerk, Reservations Clerk, Housekeeping Managers or Supervisors, Sales Staff,  Accounting Staff, Concierge Staff and staff in the Information Technology Department would be able to offer different perspectives. Consider representatives from these departments to be included in the evaluation process. Their experience with past systems as well as their department processes and their insight into what functionality they need to best serve the hotel guests will be very valuable when building your requirements list.  

The Project Manager should set expectations and objectives of what is to be accomplished during the evaluation process and provide this information in writing to the team. Setting expectations and objectives will help to keep the evaluation process on track. The team needs to understand that although comments and suggestions are appreciated and necessary, not everyone’s wants will be fulfilled. The goal is to choose the best system to meet your specific business needs while providing the best overall tool for all departments and the business as a whole.  There will be some areas and functionality that will require compromise. Sorting out items that are needs as opposed to those that are wants is essential during this process.  Items that are determined to be needs should be qualified as such.

Now it’s time to start building your team!

Jeff Sefton

property management system evaluation

Wholesalers

The Hotel Sales Team work with Wholesalers to help fill their hotel rooms. A wholesaler will be provided with a special negotiated rate which is typically  based on the number of occupied rooms that are guaranteed to the hotel over a determined period of time.

Wholesaler functionality allows you to hold a block of rooms for a wholesaler, with the ability to book rooms out of the group block at previously negotiated rates that are offered to the wholesaler.

A wholesaler reservation is not the same as a typical reservation as it is necessary for a wholesaler to book reservations and obtain their preferred room rate while at the same time behind the scenes having their reservation take inventory from the block of rooms that have been assigned by the hotel wholesaler coordinator to their specific room block.

Here are functions that you may want to look for when evaluating the Wholesaler module of property management systems you are evaluating for your lodging business.

• Wholesaler confirmations.
• Wholesaler pickup reports.
• Pickup from Wholesaler block.
• Wholesaler statistical reports.
• Set pre-determined wholesaler rates.
• City Ledger/Account receivable billing.
• Ability to add additional hotel services.
• Group check-in entire group or individually.
• Group check-out entire group or individually.
• Ability to assign room numbers to reservations booked by wholesaler.
• Ability to quickly create ongoing wholesaler blocks for seasons or entire year.
• Ability to drop unbooked rooms from the block by set number of days prior to arrival date.
• Ability to split charges for incidentals and room and tax charges for wholesaler reservations.

property management system evaluation

Guest History

Guest History is an important module with respect to how your business can build guest information and serve your customer better. If your lodging business is dedicated to keeping your existing customer base returning to your establishment then this is a very important module indeed.

Guest History is generally made up of guest contact information that is taken during the reservation process such as name, address, phone number, email address, and past guest stay information such as rates and room types booked on previous stays and the dates of those stays. It may also contain previous source of business information and market segment information which may indicate whether the guest is a AAA member, a corporate account member, was part of a convention or an independent traveller.

Guest history is also used to track special requests so this information can be used to anticipate guest needs and requests for future stays.  If a guest prefers a low floor or is allergic to feather pillows, it is helpful to record this information and recognize your guest’s needs for future bookings without them having to repeat these requests at the time of each booking.

Having the ability to export guest information such as email addresses for email marketing or guest names and addresses for special mail outs is necessary in today’s competitive world of guest lodging.

A number of property management systems have the ability for guest history to be interfaced with more detailed guest management systems that focus on Customer Relationship Management (CRM) which also encompasses guest loyalty systems.

property management system evaluation

Groups

If you handle groups at your hotel you will require group functionality within your property management system. A group may be a tour group, wedding, corporate function, convention or an airline crew to name a few.  

Group functionality allows you to hold a block of rooms for a group, with the ability to enter a complete rooming list for the group or have guests book their own rooms individually out of the group block.

Group business can be big business so hoteliers are always looking for ways to make it easier for their group business customers to book their accommodation.

Providing the service for a group customer to be able to book their rooms online is now an essential service as far as most hoteliers are concerned.

A group reservation is not the same as a typical reservation as it is necessary for a group client to get their preferred room rate while at the same time behind the scenes having their reservation take inventory from the block of rooms that have been assigned by the hotel group coordinator to their specific group.

Here is an example, Bob and Sally have guaranteed the hotel that they will bring 250 wedding guests that will stay over at the hotel the night of their wedding. The hotel group coordinator has offered them a special rate based on Bob and Sallys guarantee that their wedding group will occupy 125 rooms.

The group coordinator provides Bob and Sally with a booking code that will be given out to their wedding guests. Their guests may phone direct to the hotel or book their own reservation using the online booking engine on the hotel web site.  By using their code during the booking process the room is taken out of the guaranteed block of 125 rooms and the guest gets a special room rate as part of the Bob and Sally wedding group.

Here are some more functions that you may want to look for when evaluating a property management system for your lodging business.

• Group confirmations and deposits
• Ability to split charges for incidentals and room and tax charges
• Master folio for Group and individual folios
• Group Notes
• Ability to add additional hotel services
• Ability to assign room numbers to group members
• Ability to import group rooming lists
• Pickup from Group Block
• City Ledger/Account receivable billing
• Group check-in entire group or individually
• Group check-out entire group or individually
• Ability to drop unbooked rooms from the block by set number of days prior to arrival date
• Group pickup reports
• Group statistical reports

Housekeeping

Housekeeping is often one of the last departments that is consulted during the evaluation and purchase of a hotel property management system. The housekeeping department is often one of the larger departments in a hotel or resort, so providing them with the tools they need to be more efficient not only helps provide better guest service but may also contribute to human resources being used more efficiently and aid in cost reduction.

The primary concerns of the housekeeping department with regards to the property management system is to have access to easily read screens and reports so they know the the status of rooms at any given moment as well as having the ability to easily update room status in the property management system. 

Having a phone system interface offers the housekeepers the ability to update the the room status in the property management system by simply keying in a code on the guest room telephone to set the room status as clean. When the supervisors follow with their inspections, they may then punch in a code to designate the room as inspected.

It is also the responsibility of the housekeeping department to manage out of order guest rooms that need fixes or upgrades to keep them up to standard. Tracking and reporting of maintenance items is essential, as is having the ability to keep a history of these items to spot trends or for future reference.

The ability to track maintenance on common areas such as lobbies, meeting rooms, public washrooms and health club areas is key in keeping those areas up to acceptable standards as well. Keeping service standards high includes the efficient tracking and management of maintaining your hotel and keeping it looking good.

property management system evaluation

Reservations

Reservations, evaluation process

The reservations module provides the following general functionality that is expected in a property management system.

• Create a guest reservation.
• Email/print guest registration card.
• Apply a deposit to the reservation.
• Cancel a reservation.
• Process no show reservations.
• Choose a source of business related to the reservation.
  
• Choose a market segment related to the reservation.
  
• Attach Travel Agent information for commission tracking.
• View and change guest address and contact information.
• View or changes arrival and departure dates, length of stay.
• Add, view or change guest notes or requests.
• Select from a variety of room rates and change room rates.
• Reservation Reports

property management system evaluation

Front Desk

The front desk module provides the following general functionality that is expected in a property management system.

•  Check in a guest with a reservation.
• Check in a guest without a reservation.
• Print guest registration card.
• Add a charge to the guest account.
• Remove a charge from a guest account.
• Move charges from one guest account to another.
• Move guests from one room to another.
• View and change guest address and contact information.
• View or changes arrival and departure dates, length of stay.
• Add, view or change guest notes or requests.
• Select from a variety of room rates and change room rates.
• Occupancy Reports
• Checkout guests.
• Settle guest accounts.

property management system evaluation

Choose The Right Property Management System (PMS), Don't Forget to Evaluate Training and Support

When you are considering the purchase of a Property Management System (PMS) for your lodging business it is about more than just evaluating the software features.  During the product evaluation process you also need to review the quality of the support and training services provided.  Confirming that the software vendor is capable of providing the training and support that your team requires will help lower risk to your business.  Running a hotel means you need 24 hour support and knowing that software support is available when you need it is paramount to choosing the right vendor.

Your business depends on the systems that you use to look after your customers and your business needs.  This means that if you and your team don't get the training and support you need to operate your property management system properly, how will you look after your guests and your business efficiently?

The extent of training and support coverage will be provided in your contract once you make it to that stage, however you need to understand the quality and extent of training and support that your vendor provides before you sign on the dotted line.

Training

• Does the vendor provide ongoing training?
• Is training available via webinars?
• Is on-site training available?
• Do you have a choice in how training is delivered?
• What do some of the vendors current clients think about the quality of training?
• When you have staff turnover does the vendor provide property management system training for your new staff if needed?
• What type of documentation is provided?
• Is the documentation updated regularly?
• Is documentation available on-line?
• Are E-Learning Videos available?
• Does the vendor offer training webinars on a regular basis?

Support

• What support plan options are available?
• Does the vendor provide software updates as part of your support fee?
• What are the regular business hours?
• Is 24 hour support available?
• Is there a guaranteed or estimated turn around time for phone calls or email?
• Does the vendor offer a support ticketing system?
• Is the vendor able to access your property information quickly and do they keep a history of your inquiries?
• Is there a self serve support portal available for your key operators or staff to enter support tickets and  inquiries?
• Is there a self serve support portal available for your key operators or staff to access a solution database?

Know the answers to these questions and get references.  Ask these references how they rate customer support and find out how the vendor responds when there is a problem.  This will help provide insight into the level of service that accompanies the software that you are purchasing for your Hotel. 

Good luck with your evaluation!

Jeff Sefton

property management system evaluation

Evaluation process, breaking it down into bite size pieces

During the evaluation process you may find it easier if you divide the operational functions of the property management system into modules or operational areas and list their functions. Below you will find a listing of modules and their primary functions.

• Front Desk, check in, check out, posting charges and payments, guest invoices, modifying guest information, extending stays, room moves, splitting folios, adding shares to accounts, reporting.
• Reservations, making reservations, taking deposits, policies, sending confirmations, modifying guest information, modifying stay dates,reporting.
• Revenue Management, rate functionality, opening and closing rates, close to arrivals, length of stay restrictions, multiple rates during the guest stay, rate changes, rate tiering, rate yielding, reporting.
• Housekeeping, setting rooms clean, setting rooms dirty, setting rooms as inspected, using the guest room phone to set room status, late departures, housekeeping sections, setting and clearing out of order rooms, out of order history, room status reports for housekeeping staff, reporting.
• Guest History, guest stay information, guest loyalty numbers, special requests, guest contact information to be used for email or mail outs, reporting.
• Groups, group blocks, block release functions, copy functions, room listing import functionality, charge routing, reporting.
• Wholesalers, wholesaler blocks, release functions, copy functions, billing functions, reporting.
• Accounting, accounts receivable (City Ledger), invoicing, transferring billing accounts at check out, accounts receivable aging, statements, payments, reporting.
• Auditing functionality, daily balancing and reporting.
• General Reporting, statistical reports such as source of business, market segments, revenue and occupancy forecasting and financial reports including breakdown of charges by revenue centre, taxes, and payments.

property management system evaluation

Why are you buying a Property Management System?

There are a variety of reasons that property management systems are purchased.

• Building a new hotel or resort and currently do not have a system in place.
• Converting from a manual process to a computerized system.
• Canceling your franchise agreement and becoming independent.
• Changing to another franchise or brand.
• Current system causing guest service issues as it is not reliable.
• Grown out of exiting system, does not meet your business needs.
• Unsatisfactory support from the property management system vendor.
• Require a more robust tool for revenue management.
• Require all round better business reporting.
• Require better guest management capabilities.

In many cases the person responsible for evaluating the potential property management system may not know the reason that the process to replace the system began in the first place.

A clear and full understanding of why you are purchasing a new property management system will be helpful to you during the evaluation process. 

property management system evaluation

Selecting a Property Management System, Assigning a Project Manager and the Team

You are at the stage of selecting a property management system for your business. We will begin with the understanding that the determination has been made either through a feasibility study or management determination that a new or replacement system is required for your business.

Selecting and purchasing a property management system for your property is not an easy decision; it is a decision that takes a great deal of research and is very time consuming. Once you have defined your property type, it's time to compile a list of your needs and wants as well as the functionality that is required to best serve your customers and your business.

At the beginning of the process, it is important to designate a project manager that will be accountable and see the project through from purchase of the property management system through to the final implementation of the system at your property.

The evaluation and purchase of the system may be led by a consultant, the business owner, or a manager within the organization at the hotel level or at the head office level. This manager may have a role in the accounting, sales, or rooms division and as the project manager, may deem some items essential that a manager of another department may not.

Now is also the time to start thinking about your business team and the members that should be involved in evaluating the property management system that will be selected for your property. Including your team in the evaluation process can help bring different perspectives and needs from a variety of departments and from the staff that will be using the system.

Involving your team also helps to insure buy in which in turn will make the implementation process easier. A team may also make the evaluation process shorter or perhaps longer, either way you will obtain more information to assist in the selection process and make an informed purchasing decision.

Make sure everyone starts on the same page by briefing the team on the priority list that was initially created by the project manager from the needs assessment. Although the list will change as the evaluation process progresses there will be "must have" items on the list that will need to stay.

During the process it is likely that you will find that no property management system is capable of doing everything you want it to and exactly how you want to do it. You may need to compromise as the system you choose may be really efficient at handling the high priority needs of your business but maybe not quite perfect at handling other needs of your business. You may find that some operational changes in your business process may be required in order to work optimally with the property management system that is selected for your property. Remember, the goal is to find the best all round system for your business.

* Assign the Project Manager.
* Choose the evaluation team.
* Review current priority list and brief the team on the project.
* Begin evaluation lists, separate needs from wants.
* Stay focused on the goal of choosing the best all round system for the business.

Good luck with the evaluation process!

Jeff Sefton

property management system evaluation

Purchasing a Property Management System, Defining Your Property

Hotel and Resort Service Offerings:

• Full Service Hotel – offering a wide variety of amenities for your guests such as restaurant, room service and banquet facilities.
• Medium Service Hotel – May have a coffee shop, meeting facilities.
• Limited Service Hotel – No Restaurant or banquet facilties, may offer continental breakfast.

Property Type:

• City Hotel
• Resort Hotel
• Boutique Hotel
• Property Management - extended stay accommodation
• Bed and Breakfast

property management system evaluation