PROPERTY MANAGEMENT SYSTEMS

Chapter 7

HISTORY OF AUTOMATION IN HOSPITALITY INDUSTRY 1.

2.

3.

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 4.

5.

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

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  1 st Generation: Minicomputers  2 nd Generation: UNIX/NOVELL  3 rd Generation: Reservation systems  4 th Generation: Client-server  5 th Generation: GUI  6 th 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.

2.

3.

4.

5.

6.

7.

8.

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

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 Airlines Unix System Marriott Windows Based System Hertz Rent a Car OS System

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 Guest registration -retrieve reservation -assign a room -collect payment -verify room status Telephone services - Phone calls - Wake up call -Messages Front office system Room status and -etc.

housekeeping management -room discrepancy report -room status report Cashiering and guest shift check-out -generate folios -post transactions -open and close cashier -guest check out

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=1OFs7130G KQ