Roundtable: Updating Software
Why must hoteliers invest in up-to-date hotel management software?
AMIT SHARDA: Information technology continues to advance at a lightning speed, yet a lot of hotels have not invested in, or updated their hotel management software and they still use property management systems which are not integrated with electronic distribution systems. Instead of deploying various disparate systems to accomplish multiple tasks, hoteliers should always use systems that are tightly integrated.
FRANK MARTIN: Most outdated hotel management software comes with a technical and financial burden. Often old software is high maintenance, stealing hoteliers’ time and resources. Modern software is affordable and accessible from any device inside and outside a hotel. By using the latest technology, hoteliers free themselves of the technical burden from previous systems and can use the free time and resources to work on online marketing and online presence, in order to increase direct bookings, improve their hotel’s image online and offline and ultimately increase revenue.
AEIJAZ SODAWALA: In a nutshell, they have to keep pace with changing times. The hospitality IT industry is growing exponentially. Be it hotel operations, sales, booking, travelling, guest experience; everything is highly influenced by technology. Hoteliers who do not take advantage of high performing software might simply struggle to survive the competition. To manage day-to-day operations in less time, you must invest in a decent property management system. An initial investment in this kind of technology subsequently brings you quick revenue and you can focus on your business management.
PRAVEEN PAUL: All software products are bound by a finite lifecycle which then classifies the product as outdated. Hotel management software is no different and typically has a three-year lifecycle. Due to the constant evolution of how we use and interact with software and the transition from desktop to mobile devices, it is imperative that hospitality management software (HMS) also evolves to support this functionality. All properties position guest satisfaction levels as a benchmark in regards to how well they are performing. Much more is demanded from the HMS primarily through presentation of data via mobile guest applications, which permit direct guest access to hotel facilities both in-house and away from the property. Further integration with social media platforms and mainstream ratings websites are also critical to achieving a high level of guest satisfaction. Thus, using an outdated HMS that only supports yesterday’s norms and does not stay relevant to current trends almost surely results in poor guest satisfaction.
What are the pitfalls of using outdated or low quality hotel management software?
AMIT: One of the biggest pitfalls of outdated hotel management software is unnecessary loss of revenue. Single image inventory at your PMS, assisting you to feed availability and rates to all the electronic distribution channels; such as your online web booking engine, various OTA channels, and the like, can earn you revenue that you may have otherwise lost.
FRANK: Outdated software requires expensive equipment, constant maintenance and updates and has complicated technical aspects that hoteliers are not prepared to handle. Additionally, as systems have outdated managerial logics, it means training hotel staff usually takes longer and some new features do not exist, so that’s wasted time. On top of that, most outdated solutions don’t offer remote 24/7 customer support or even charge for that service. This limits hotel operations and is a big problem as hoteliers can’t solve problems immediately.
AEIJAZ: Apart from dealing with poor performance, you lack efficiency and optimisation too with any outdated hotel software. Outdated and low quality hotel management software generally offer limited features; not all of those features that you critically require. They are prone to data leakage and security vulnerabilities too. You will have to invest more in backup, because loss or corruption of data can prove to be catastrophic. While using outdated software, malfunctions and crashes are major risks to live with. But the biggest problem is that your old software would not integrate with other software or modern programmes. Even if it does, the interface will be unpleasant. Investment will be required in maintaining it, and you will lose competitiveness and the benefit that new technology can bring you. A poor performing booking engine would fail to capture some potential bookers. In the end, this results in loss of productivity, a gridlock in achieving the high performance and revenue that you could have achieved with a better performing software.
PRAVEEN: The HMS is directly responsible for the guest experience at the property. Due to constantly evolving technology and the software lifecycle it is critical for properties to keep software up-to-date. Low quality HMS does not empower the user to provide the best possible personalised experience to the guest. For example, in the front office, a critical benchmark is how quickly it is possible to check-in or check-out a guest with the least possible clicks. Another critical feature is the ability for the HMS to remember personal details about the guest thereby empowering the user to provide a more personal guest experience. In regards to driving revenue, further areas include two-way interaction with channel managers and subsequently OTA’s thereby driving up occupancy which achieves the best possible ARR. Only a high quality PMS takes these areas into consideration.
To what extent can hotel management software increase efficiency?
AMIT: The challenge of managing an ever-growing list of reservation portals is one. The need for sharing guest profiles across departments is another. The cost efficiencies that can be gained by electronically sharing data between functional departments and demolishing information silos is yet another. Chains could gain from cross selling properties by using a computer reservations system. They could also improve purchase efficiency by consolidating requirements across properties.
FRANK: Hoteliers can become flexible in imaginative ways, for example, Base7booking users can check-in a guest in their tablet, run to the bar to prepare a cocktail, add it to the guest’s account, and at the same time review all upcoming reservations in the same device with one touch. One person can accomplish different roles and multi-task from one device. Furthermore, as hoteliers have a complete overview of their occupancy, rates and bookings, they understand their property and can enhance their strategies. New software also means integration with the latest and most effective tools, like payment platforms, channel managers, housekeeping monitoring, loyalty software, virtual concierges, online statistics, mobile check-in and out, and many more. Hoteliers can cover their daily operations from their mobile devices and they can become so efficient that they can even remove their front desk to take care of their guests. This was impossible with old solutions.
AEIJAZ: In my opinion, software at your hotel gives you real-time control over your business. When systems are synchronised, money is saved and a major part of your time is saved. Your data resides in one place, and you can monitor performance across numerous operations, distribution, services and 360-degrees administration. Moreover, reports and statistics make operations easier for you. Consequently, you can make better informed decisions based on the accurate information. You get real-time reservations, online bookings, channel management and guest management as well. It is the key to constantly grow and stay ahead of the competition, while reducing
operational complexity and cost.
PRAVEEN: The penultimate purpose of using a HMS is to automate hotel operations as much as possible. If the software is not designed with the user in mind, a user could end up spending more time using the software rather than concentrating on improving guest satisfaction. General managers are always interested in running an operation that strives on high efficiency levels with no disparity between the various operational segments. An ERP approach is critical where all various departments are tightly integrated via the software platform. HMS providers empower not only the front office user but also seamlessly interconnects the front-of-house functions with the back-of-house operations such as accounting and material management.
What are the key factors a hotelier must consider when purchasing software?
AMIT: We believe technology products should optimise hotel sales and revenues. This can be achieved by increasing operational efficiency, resulting directly from the use of better software. Hoteliers should ask how the implementation of any software will assist and automate management activities, hence improving revenue contribution from repeat guests, while enabling the hotelier to better manage the business.
FRANK: First of all, hoteliers should make sure the software is made for their type of property. You can’t expect a B&B to use a system made for hotel chains because they have different dynamics and have different needs. Second, it should cover daily operations and should be user-friendly, so staff from front desk to housekeeping can understand the software and work with it. On the technical side, language is essential, as well as legal and country-related features for taxes or government reports. In this digital age, powerful hotel management software must be connected to all distribution channels and offer complete business insights to hoteliers. Security and connectivity are essential, as a PMS deals with important hotel information, so confirming encryption, automatic back-ups and different servers is a must. On top of that, solutions should be intuitive, mobile and flexible. Last but not least, it should offer excellent support.
AEIJAZ: A hotelier should always examine his major requirements before picking up new software, here we can enlist some significant factors they should consider: speed and efficiency of software, does it work offline or online, does it offer reservation and online booking facilities and guest management, does it feature mobile options?
PRAVEEN: When investing in a PMS a hotelier needs to consider: ease-of-use, automation of workflow, software stability, customer service and support, does it improve revenue by providing tighter cost control enabling cost reductions in various operational segments? Last but not least, consider a PMS that has a suite of integrated mobile applications for the guest facing segments of the property such as front office and point-of-sale.