Hotels, resorts and other lodging properties consist of a diversity of operations, all of which need to run like a well-oiled machine. This means enabling, administering, tracking and measuring the constant flow of activities in the front office, the bookings and reservations departments, and the concierge and guest services, housekeeping, and banquet management departments. Other crucial functions that need to be managed and monitored in an integrated manner include inventory, maintenance and security. Ensuring that all the operations that are central to running a lodging property are working as efficiently and effectively as possible – all the while delivering the best possible guest experience – is no easy task. In fact, it requires serious technology. As this Smart Decision Guide explains, next-generation Hotel Property Management Systems are designed to automate repetitive hotel functions and to track , monitor and analyze activities across the front office and other parts of the organization. The first generation of these platforms generally focused on such core functions as guest registration, room inventory, guest charges, financial accounting and housekeeping records. With many of these systems, the scope has now expanded to include a host of other functions, departments and areas of accountability. The platform capabilities have also become increasingly sophisticated, built with both customization and scalability in mind.

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The 2014 Smart Decision Guide
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Introduction pg. 3
Chapter 1: Topic Overview and Key Concepts pg. 4
Chapter 2: Buying Considerations and Evaluation Checklist pg. 10
Chapter 3: Must-Ask Questions pg. 17
Chapter 4: Roadmap and Recommendations pg. 20
Chapter 5: Inside Voices and Outside Voices pg. 23
Appendix pg. 27
Table of Contents The 2014 Smart Decision Guide to Hotel Property Management Systems
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Hotels, resorts and other lodging properties consist of a diversity of operations, all of which need to run like a well-oiled machine. This means enabling, administering, tracking and measuring the constant flow of activities in the front office, the bookings and reservations departments, and the concierge and guest services, housekeeping, and banquet management departments. Other crucial functions that need to be managed and monitored in an integrated manner include inventory, maintenance and security.
Ensuring that all the operations that are central to running a lodging property are working as efficiently and effectively as possible – all the while delivering the best possible guest experience – is no easy task. In fact, it requires serious technology.
Until recently, no single software application excelled at automating all of the different hotel operations, let alone doing so in a unified and integrated fashion. Instead, people often utilized a combination of Excel spreadsheets and standalone department-specific software programs – oftentimes in conjunction with age-old manual processes. The software, once it became available, tended to be clunky and inefficient. Data was fragmented. Performance reporting was incomplete. And the interface and overall user experience left a lot to be desired.
Next-generation Hotel Property Management Systems are a horse of a different color, brimming with features and functionality specifically designed to meet the end-to-end needs of modern-day lodging properties. No wonder the hospitality industry has come to embrace these solutions as a strategic imperative.
Introduction
Until recently, no single software application excelled at automating all of the different hotel operations, let alone doing so in a unified and integrated fashion. The 2014 Smart Decision Guide to Hotel Property Management Systems
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Chapter 1
Topic Overview and Key Concepts The 2014 Smart Decision Guide to Hotel Property Management Systems
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Hotel Property Management Systems are designed to automate repetitive hotel functions and to track , monitor and analyze activities across the front office and other parts of the organization. The first generation of these platforms generally focused on such core functions as guest registration, room inventory, guest charges, financial accounting and housekeeping records. With many of these systems, the scope has now expanded to include a host of other functions, departments and areas of accountability.
The platform capabilities have also become increasingly sophisticated, built with both customization and scalability in mind. Some systems now include Global Distribution System connectivity to automate transactions with booking agents, Customer Relationship Management features designed to engender greater satisfaction, loyalty and retention, and financial features like food and beverage costing to maximize restaurant profitability and revenue and yield management tools to optimize guest occupancy and room rates.
Many Hotel Property Management Systems also now integrate with third-party technologies like point of sale (POS) software, accounting software, credit card transaction systems, and keycard, minibar and entertainment applications. Some systems allow additional modules and interfaces to be purchased and integrated separately, based on the needs of individual properties. Some also now serve as marketing and sales tools. Utilizing a treasure trove of data, they can be used to create targeted marketing promotions and campaigns based on individual guest profiles, behaviors and preferences.
Chapter 1
The platform capabilities have also become increasingly sophisticated, built with both customization and scalability in mind.
Topic Overview The 2014 Smart Decision Guide to Hotel Property Management Systems
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Regardless of size and the volume of business it does, whether it is a no-perks budget traveler operation or an upscale resort offering first-class accommodations and premier luxury services, or whether it exists as a standalone entity or part of an international chain, lodging properties can compete effectively only by automating their day-to-day operations across multiple departments and functions. Competing effectively also means gaining visibility into all aspects of operational performance and guest experiences. The right Hotel Property Management System is key to maximizing efficiency, maintaining competitive parity and using analytical reporting to drive continuous performance improvement.
Still, the requirements and expectations on the part of prospective buyers can vary dramatically. A full-service hotel will likely require a robust and comprehensive system, one that can handle not just basic operational functions like guest bookings, housekeeping, guest charges and maintenance management, but also revenue management, advanced reporting and high levels of guest service . The system may need to integrate with online booking engines and manage hotel restaurants and cocktail lounges along with spas, banquet rooms, dry cleaning and other facilities as well as such guest amenities as bed turndown service, newspaper delivery, room service and transportation shuttles. A full-service hotel will naturally have more service requests as well as more complex reservation, scheduling , inventory and hospitality needs than a limited-service hotel, which may nonetheless also have much to gain from a next-generation system.
Chapter 1
The right Hotel Property Management System is key to maximizing efficiency, maintaining competitive parity and using analytical reporting to drive continuous performance improvement.
Topic Overview The 2014 Smart Decision Guide to Hotel Property Management Systems
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Chapter 1
Topic Overview
67%
81%
89%
94%
0
20
40
60
80
100
Improve data accuracy and performance reporting
Increase revenue and profitability
Reduce hotel operating costs
Improve guest satisfaction
Research Data Point
What are the biggest benefits one can expect to gain with the right Hotel Property Management System?
In all cases, the main purpose of a Hotel Property Management System is to minimize costs and maximize revenue and profitability. These financial outcomes mean not only streamlining day-to-day operations across the organization by maintaining better management controls but also gaining a deeper understanding of the unmet wants, needs and behaviors of guests through analytical reporting — and then, importantly, acting upon those insights to increase guest satisfaction, loyalty, brand advocacy and retention. While the range of features and functionality of Hotel Property Management Systems is broad, the overarching goals tend to be the same: to reduce costs, generate business insights and, ultimately, increase hotel occupancy, revenue per available room (REVPAR) and overall profitability.
Increase revenue
Increase profitability
Reduce operating
costs
Streamline operations
Improve staff
efficiency
Reduce guest wait time
Improve guest satisfaction
Increase guest loyalty and
retention
Increase brand advocacy
The 2014 Smart Decision Guide to Hotel Property Management Systems
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Research findings are derived from the Q2 2014 survey on Hotel Property Management Systems (n=112).

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As the complexity of hotel operations continues to grow along with the sophistication of the enabling technologies and infrastructure, prospective buyers of Hotel Property Management Systems who may not already be well- versed in some of the more recent trends and technology innovations should spend some time researching the expanded range of possibilities. Following are just a few high-level concepts to keep in mind.
Guest Profiling. The ability to capture and store individual guest information in a centralized data repository and be able to augment, modify, analyze and access those records from any part of the organization is quickly moving from “nice-to-have” to “must-have” capability. Ideally, each guest profile record should contain all available demographic, behavioral and past purchase information, with details of the individual’s stated and inferred preferences. Over time, a database containing multidimensional portraits of guests can become an extremely valuable tool for multiple departments, including Reservations, Sales, Marketing, Guest Services and Credit, allowing hotels to drive increased customer loyalty, brand advocacy and, ultimately, revenue. Transaction history is especially important. Analysis of guest spending patterns can be used to create advanced segmentation schemes that increase customer satisfaction and profitability (e.g., by offering package and amenity upgrade offers during service delivery) as well as . Many systems now provide complete folio control, meaning that all of the charges incurred and payments made by an individual guest or a corporate account during a stay or over a specified period of time are recorded and can be readily accessed.
Chapter 1
Prospective buyers of Hotel Property Management Systems who may not already be well-versed in some of the more recent trends and technology innovations should spend some time researching the expanded range of possibilities.
Key Concepts The 2014 Smart Decision Guide to Hotel Property Management Systems
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Revenue or Yield Management. The goal with revenue, or yield, management is to be able to dynamic ally price room rates based on hotel capacity. That means being able to forecast demand for available rooms in a real-time manner. Utilizing algorithmic pricing models, hotels can automatically adjust for seasonality, events and other factors to help maximize occupancy at the best possible price. Pioneered by the airline industry, yield management modules have proven to be effective in optimizing revenue through dynamic pricing strategies and are today being integrated as a core component in a growing number of Hotel Property Management Systems.
Customer Relationship Management. Lodging properties can capture a tremendous amount of valuable information about their guests based on their transactions and interactions. By continuously enhancing guest profiles with additional data and by understanding the commonalities of guests by looking closely at their psychographic makeup and creating useful segmentation schemes, hotels can maximize the value of guest relationships through carefully tailored services, communications and offers while minimizing the cost of resources otherwise expended to build, maintain and increase the value of those relationships. As the central point of technology and data, and given the capacity to provide a unified view of how guests are engaging across all parts of the business on an individual basis, Hotel Property Management Systems have become the focal point of Customer Relationship Management.
Chapter 1
Hotels can maximize the value of guest relationships through carefully tailored services, communications and offers while minimizing the cost of resources otherwise expended to build, maintain and increase the value of those relationships.
Key Concepts The 2014 Smart Decision Guide to Hotel Property Management Systems
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This Smart Decision GuideTM is the result of primary and secondary research conducted by Starfleet Media. It was independently produced, without editorial involvement from the company underwriters. Our approach to content production provides for unbiased, fact-based information. It represents the best and most comprehensive information, analysis and recommendations available at the time of publication. Starfleet Media assumes no liability for the use or interpretation of any information contained in this Smart Decision Guide. Purchase decisions based on the information contained herein are the sole responsibility of the individual decision maker(s) and/or the companies they represent. Unless otherwise noted, the entire content of this publication is copyrighted by Starfleet Media. It may not be reproduced, distributed, archived, or transmitted in any form or by any means without the prior written consent by Starfleet Media, except by the company underwriters that have secured perpetual licensing rights to the content. For additional information, please contact Starfleet Media at info@starfleetmedia.com. The 2014 Smart Decision Guide to Hotel Property Management Systems
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