PROPERTY MANAGEMENT

SYSTEMS

Chapter 7

HISTORY OF AUTOMATION IN HOSPITALITY INDUSTRY

1. At first, automation was a tool for producing and analyzing budgets, reports, statistics, accounts.

2. Then, automation crept into such areas as sales reports, rooms inventory control, timekeeping.

3. 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

4. Further advances came as computers were used to analyze captured reservations data, thus providing important marketing info.

5. 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

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

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

PMS FUNCTIONALITY

Interface with other systems HVAC or EMS Systems In-Room Amenities Messaging Security Call Accounting System

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

Switches Goal: to generate revenue

Complicated due to different business models and varying relationships between entities

Real-time: greater flexibility Costly to develop systems

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

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

GUI - GRAPHICAL USER INTERFACE

Interface Intuitive

Fits naturally with expectations Ease of training Multi-lingual Includes Websites

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

INTERNET BASED CRS Started in late 1990s Flexible Cost effective Compliant with GDS

Marriott.com / starwood.com / bestwestern.com

DISTRIBUTION CHANNELS FOR A HOTEL

1. Travel Agency (GDS)2. CRS (800 reservation number)3. Call the hotel directly4. Corporate travel agent5. Hotel website (i.e. Hilton.com)6. Internet travel agency (i.e. Expedia.com)

(Online GDS / ADS/ IDS)7. Walk-in8. Other

GDS

ADS/ IDS

OTHER TRAVEL RELATED WEBSITES

SWITCH

YIELD MANAGEMENT

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 AirlinesUnix System

MarriottWindows Based System

Hertz Rent a CarOS System

SABRECommon Platform

Access CodesAccess CodesA

ccess Codes

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

Guest registration-retrieve reservation-assign a room-collect payment-verify room status

Telephone services

 - Phone calls - Wake up call

-Messages

Cashiering and guest check-out

-generate folios -post transactions -open and close cashier shift

-guest check out

Room status and housekeeping management

-room discrepancy report -room status report -etc.

Front office syste

m

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=1OF

s7130GKQ