Navigating the PMS Maze

It is one of the most frequently asked questions we receive from our clients – what to look for in a property management system, or PMS.

Just like any new technology that you implement within your business – there are positives and negatives. Most of the positives can be easily quantified – a more streamlined operating environment that frees up your team to focus on other areas of your business, giving them more time to provide exceptional guest experiences – contributing to an improved financial performance. However, there can also be negatives in potentially creating more work for some staff; but the main reasons owners and staff become dissatisfied with their PMS is that they have selected the wrong system for their property, are not aware of its full capabilities or are not using it correctly.

Changing to a new PMS is not a quick fix and there is a lot of work to be undertaken. Before you begin looking at what other systems are available, we strongly recommended that you:

• Create a list of Pros and Cons – what are you wanting from a new PMS and what do you not want.

• Identify what is not working with your current system and ensure you always have a conversation with your current provider first. Sometimes, your challenges can be easily fixed by scheduling some refresher training or it may be a software update that has not yet been applied.

• Check your current contract – do you have to give a notice period to your existing PMS supplier and, if so, what is that notice period and what penalties may apply if you elect to break your existing contract.

We have created a quick checklist that we hope will help you to navigate through the process of looking for a new PMS, once you have worked through the above phase.

• Is the PMS cloud or server-based?

  - Can your existing Wi-Fi support a cloud-based platform?

- Will your existing IT security systems enable software upgrades when available?

• ·Connections:

  - If it is an all-in-one system, does the channel manager offer the basic list of OTA’s or third-party interfaces such as TourPlan that you need to be working with based on your location and market segments.

• Technical support hours:

- Do they have a support team located onshore or is it offshore.

- Are they available 24/7 and easily contactable by phone, email or chat when you need to speak with them.

• Does it easily interface with other programs you have running in your business for example: accounting, housekeeping, CRM, food & beverage or are you going to have to consider an upgrade of existing systems.

• Can your existing data be easily migrated across to a new PMS – what is involved in changing systems – both in staff resources and financial cost.

In addition to the above questions, we strongly recommend owners take the following areas into consideration before signing anything.

• Understand the PMS’ program of future upgrades and new software development – what enhancements are they looking to add over the next couple of years? Does the PMS have the capability to align with your business’s commercial objectives and any future growth plans that you may have.

• When comparing pricing between systems, always look for any hidden costs such as fees per booking – a cost to your business that can really build up over the course of a year. Do not compare monthly costs but break it down to a per key basis (divide your monthly costs by the number of accommodation rooms you have) for the channel manager, PMS and booking engine.

• Does the PMS have the capability to support your incremental revenue growth strategies – can guests pre-purchase food and beverage packages, day spa experiences, transfers etc., when booking their accommodation.

• Ask for examples of other hotels already using their system so that you can investigate how the PMS integrates with their website and experience the booking engine functionality from the perspective of your guests. Remember, you don’t have to purchase the booking engine provided by the PMS, you can source one provided by your channel manager or another provider.

• When undertaking online PMS demonstrations, always record them so that you have something to refer to and rewatch. Consider inviting team members who will be using the system to watch the demonstration and provide their own input and questions.

• Do not be afraid to ask as many questions as you feel necessary through this exploration phase – this is a significant investment for any property and you need to ensure you are making the right decision.

• Always beware, when attending industry trade events or participating in online forums, of any potential conflict of interest. Ask about the company that sits behind the system and who the owners are - please ensure that the PMS being recommended is genuinely the right system fit for your property – not just now but into the future. Most importantly, always seek independent advice if you are unsure or wanting a second opinion.

RevenYou understands that no two businesses are alike and we can assist in reviewing your current PMS requirements, recommending the right system that we believe will best support your current and future needs. We can also assist you in implementing a new system and provide the necessary training and support to help take your business to next level.