Automation in the hospitality industry began with tools for budgets, reports and statistics processing. Over time, automation expanded to include reservations systems, sales reports, room inventory control and timekeeping. Further advances led to computers analyzing reservations data to provide marketing insights and front office systems tracking guest histories and preferences. Modern property management systems integrate information across departments and interfaces to provide reservations, guest services, financial management, marketing intelligence and enterprise integration.

1. Property Management SystemsChapter 7

2. History of Automation in Hospitality IndustryAt 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

3. History of Automation in Hospitality IndustryFurther 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

4. IntroductionWhat influences technology need for lodging establishments? - Department needs - Guest amenitiesService level and customer relationships - Facility size and layout - Organizational structure

5. IntroductionProperty Management Systems - PMSEvolvingComplexPeer to Peer (P2P)Same application installed on more than one computer

6. IntroductionPMS - Centric ModelProperty Management systems integrate all of the information needed to manage

7. PMS FunctionalityPMS must be able to provide six basic functionsEnable guests to make reservationsEnable guests to check-in/register when they arrive and check-out/pay when they leaveEnable staff to maintain guest facilitiesAccount for guests’ financial transactionsTrack guests’ activities for use in future sales effortsInterface with other systems

8. PMS FunctionalityEnable guests to make reservations

9. PMS FunctionalityEnable guests to check-in/register when they arrive and check-out/pay when they leaveAt front deskRemotelyPDARemote terminal

10. PMS FunctionalityEnable staff to maintain guest facilitiesRoom TypeStatusOccupantInspections

11. PMS FunctionalityAccount for guests’ financial transactionsCredit Card InformationAddress InformationBusinessHomeRoom RateRoom ChargesNight AuditCollects and Posts Room/Guest Data

12. PMS FunctionalityTrack guests’ activities for use in future sales effortsInformation relevant and beneficial to future sales effortsAccessed by:CRS - Central Reservation SystemCRM - Customer Relationship Management

13. PMS FunctionalityInterface with other systemsGDS - Global Distribution SystemCRS - Central Reservation Systemmust integrate seamlessly even if from different vendorsSales and Catering ApplicationsPOS (F&B)Retail Points

14. PMS FunctionalityInterface with other systemsHVAC or EMS SystemsIn-Room AmenitiesMessagingSecurityCall Accounting System

15. Four Key InterfacesReal-time interface with the GDS/CRSThe activities management systemBuilt-in revenue and yield managementThe enterprise

16. Real-time Interface GDS/CRSSwitchesGoal: to generate revenueComplicated due to different business models and varying relationships between entitiesReal-time: greater flexibilityCostly to develop systems

17. Internet Reservations Module (IRS)Most PMS have IRSMake reservations onlineBook through InternetEliminate fees –Expedia about %12

18. Real-time Interface Tracks guest room and activitiesCancels appointments if guest cancels or checks outRepairsPagers, blackberry

19. Real-time Interface Revenue and Yield Management ToolsManaging room sales to maximize revenue and profitsExamines multiple variables and provides complex calculations

20. Real-time Interface The EnterpriseRefers to all systems - front and backPMS (front)Payroll, Purchasing, HR (back)EAI - Enterprise Application IntegrationEnd goal: of fewer redundancies and increase in collaborative synergyERP - Enterprise Resource PlanningBPI - Business Process Integration

21. GUI - Graphical User InterfaceInterfaceIntuitiveFits naturally with expectationsEase of trainingMulti-lingualIncludes Websites

22. PMS Evolution1st Generation: Minicomputers2nd Generation: UNIX/NOVELL3rd Generation: Reservation systems4th Generation: Client-server5th Generation: GUI6th Generation: ASP (VPN)

23. Reservation SystemsSelling 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

24. Reservation system screen

25. Displaying room availability and guest lists Today’s inventory Future date 7 to 14 day availability Blocked room

26. Reservations CRS (central reservation system)IRSVoice CenterGDS (Global Distribution System)

27. CompaniesFidelioGerman companyWorld LeaderWas bought by Micros, USA based companyNow, Micros/Fidelio

28. CRSDecentralize the reservation functionCentralizes marketing and sales effortsOne wayTwo way

29. Internet based CRSStarted in late 1990sFlexibleCost effectiveCompliant with GDSMarriott.com / starwood.com / bestwestern.com

30. Distribution channels for a hotelTravel Agency (GDS)CRS (800 reservation number)Call the hotel directlyCorporate travel agentHotel website (i.e. Hilton.com)Internet travel agency (i.e. Expedia.com) (Online GDS / ADS/ IDS)Walk-inOther

31. GDS

32. ADS/ IDS

33. Other travel related websites

34. SwitchSwitch

35. Yield Management Yield management rules can be established for:overbooking

36. discount control

37. length of stay control

38. product class control

39. group evaluation Traveler’s Use of Internet87% of traveling population in the U.S. are online travelers88% use the Internet to make travel plans52% used the Internet to book their travels

40. Global Distribution SystemsJoint ventures linking a number of diverse businessesA big inventorySmart SwitchTranslator

41. GDSThere are 4 major GDSAmadeus Galileo/Apollo SabreWordspan

42. Smart SwitchAmerican AirlinesUnix SystemHertz Rent a CarOS SystemMarriottWindows Based SystemAccess CodesAccess CodesAccess CodesSABRECommon Platform

43. SwitchPegasushttp://www.pegs.comWizcom (Trust)http://hospitality.cendant.com/technology/

44. Property Management SystemsProperty management systems provide data that marketing can use for:Revenue maximization Better rooms inventory controlMore accurate management of room blocksYield management capabilitiesSource: American Hotel & Lodging Educational Institute

45. Property Management SystemsAutomation 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-outAutomated check-in and check-outSimilar technology has provided automated airline ticketing and car rentalsSource: American Hotel & Lodging Educational Institute

46. Front Office System Room status and housekeeping management -room discrepancy report -room status report -etc.Guest registration-retrieve reservation-assign a room-collect payment-verify room status Front office systemCashiering and guest check-out -generate folios -post transactions -open and close cashier shift -guest check out Telephone services - Phone calls - Wake up call-Messages

47. Night AuditRecording all transactions Posting of room and tax Producing a trial balance Generating reports and updating statistics

48. Videohttp://www.youtube.com/watch?v=1OFs7130GKQ