This document discusses property management systems (PMS) used in the hospitality industry. It describes PMS as computer systems that facilitate the management of properties, equipment, and personnel through a single software program. The document then outlines the 5 stages of selecting a PMS: 1) conducting a needs analysis, 2) choosing compatible hardware, 3) finding appropriate software, 4) considering additional factors like vendor claims and training, and 5) applying the selected PMS.

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CHAPTER 4
(Property Management Systems)

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PROPERTY MANAGEMENT SYSTEMS
• Are the computerized
systems that facilitate the
management of properties,
personal property,
equipment, including
maintenance, legalities and
personnel all through a
single piece of software.
• They replaced old-fashioned,
paper-based methods that
tended to be both
cumbersome and inefficient.

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PMS IN THE HOSPITALITY INDUSTRY
• Hotels used a variety of computer systems to manage the
operations of their front office. Called a property
management system (PMS), these computer systems
manage a variety of tasks.
• A hotel PMS manages a guest’s check-in and checkout,
cash transactions at the front desk, reservations,
housekeeping, night audit and other tasks. The PMS
impacts the rooms division before, during and after the
arrival chronology.
• PMS’s by nature differ greatly. Due to the wide variety of
hotels currently in the market place, PMS’s have evolved
to meet the differing array of needs. Each hotel must
consider several factors that influence the type of PMS
they use before finding one that best fits their needs.

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STEPS IN SELECTING PROPERTY
MANAGEMENT SYSTEMS
Stage 01 - NEEDS ANALYSIS
Stage 02 - CHOOSING THE BEST HARDWARE
Stage 03 - FINDING AN APPROPRIATE
SOFTWARE
Stage 04 - KNOWING THE OTHER PMS
SELECTION CONSIDERATIONS
Stage 05 - PMS APPLICATIONS

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Stage 01: NEEDS ANALYSIS
• Is a process where hotel owners and senior
managers determine the required scope of their
PMS needs.
– The needs analysis documents exactly what processes a
particular hotel will require from its PMS.
– Factors such as: Hotel size, product type, location, and
target market affect this analysis.
– The importance of needs analysis can be most clearly
seen when you consider what can go wrong if such an
analysis is not made. The first area of concern for
property owners and managers is cost, both initially
and over the long term.

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Procedure for Performing a Needs
Analysis:
• Select a Team to analyze needs
• Analyze the flow of guests through the lodging
property.
– Reservations
– Registration
– Guest Accounting
– Checkout
– Night Audit
– Guest History

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Continuation:
• Analyze the flow of information from other
departments to the front office.
• Analyze the administrative paperwork produced
in other departments.
• Review the information gathered in steps 2, 3,
and 4.
• Evaluate the needs that have been identified –
such as control reports, communication, and
administrative paperwork produced in other
departments – in terms of importance.
• Combine needs to determine desired applications.

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Stage 02: CHOOSING THE BEST
HARDWARE
– Choosing hardware for a PMS is not as difficult as
choosing software. Today most available hardware
is compatible with standard computer operating
systems (such as Microsoft Windows).
– This consideration is essential because most
software programs are written to run on these
standard operating systems.
– In short, you must choose your hardware based on
its ability to handle the software; check on this with
your hardware vendor.

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– Other technology factors to consider include the
following working concepts:
• PROCESSOR SPEED – How fast a central
processing unit (CPU) makes calculations per
second; expressed in MH (abbreviation for
“megahertz”)
• DISK DRIVE – A place in the computer where
data is stored or read; hard or floppy – 3-½
inch versus Zip Drive.
• MEMORY
– MEGABYTE – 1,024 Kilobytes of formatted capacity
– GIGABYTE – 1,024 Megabytes of formatted capacity
Continuation:

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• ACCESS TIME – the amount of time required for a
processor to retrieve information from the hard
drive; recorder in milliseconds.
• INTERNET – a network of computer systems that
share information over high – speed electronic
connections.
• I / O PORTS – (input / output devices) such as:
keyboards, monitors, modems, mouse, joysticks,
printers, and track balls
Continuation:

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• MONITOR – a television screen with color or
monochrome capacity to view input and output
data, control column width and line length of
display, adjust height of character display, and
allow visual control.
• MODEM – computer hardware that allows for
transfers of data through telephone lines;
expressed in baud – information transfer – rates.
Continuation:

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Stage 03: FINDING AN APPROPRIATE
SOFTWARE
– Selecting software, computer-designed
applications that process data such as guest
information and aid in financial transactions and
report generation, is more important than
selecting hardware, computer equipment such as:
Central Processing Units, keyboards, Monitors, and
Printers.
– The effectiveness of a PMS depends on selecting
software that allows management to increase
guest satisfaction and to access financial and
informational data for control purposes.

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– The information obtained from the needs
analysis will provide a framework for evaluating
the numerous software packages on the market
today
– Each software package offers numerous features;
it is important to choose one package that is
most appropriate for your needs. Software
packages on the market today include those
guest services, accounting, and information
options that are standard in the hotel industry.
Continuation:

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– Example of Software / Program uses by
different companies are the ff:
• COBOL Programming
• TURBO – C Programming
• ICBS / KAPITI SYSTEM
• FISERVE – Alliance (Branch Teller)
• MICROS FIDELIO / MICROS OPERA
Continuation:

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Stage 04: KNOWING THE OTHER PMS
SELECTION CONSIDERATIONS
Other factors to consider in choosing a PMS
are the ff:
 VENDOR CLAIMS – The prospective PMS purchaser
should contact current users of the system being
considered and ask relevant questions such as:
– How easy is it to operate this system?
– How useful are the reports you obtain?
– Is it worthy to purchase this system?
– Do we have a warranty and etc.?

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 HARDWARE INSTALLATION PLANS – A careful plan for
hardware installation will help the management
maintain guest service and employee morale.
– First, it is key to determine who will install writing or
cables.
– Next, to determined is which hardware will be installed
and at what times,
– Followed by which departments will receive hardware
first, and what methods will be required to get all
departments of the property on-line, (term used to
indicate that a computer should be used to develop a
flow chart, which will help departments adapt and
interact using on-line operations.
Continuation:

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 COMPUTER TRAINING PROGRAMS – The training
offered by a computer company ranges from
classes held at the corporate head quarters to on-
the-job training sessions and informal consultant
hot lines.
– The staff that will use the computers must be thoroughly
trained if the equipment is to be put to its best use.
– Training at the terminals should be preceded by an
explanation of how the system will help staff members in
their work.
– Some computer companies will lend dummy computer setup
to a lodging property so that staff can experiment with the
training modules. This allows them to make mistakes in
private and to become familiar with the keyboard
configuration.
Continuation:

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 BACKUP POWER SOURCES – What happens if the
power goes out? This concern, as well as the
possibility of brownouts and black outs has been
addressed by computer dealers.
• Brownouts – partial loss of electricity;
• Blackouts – total loss of electricity;
 BATTERY – powered temporary energy units are
used when power is lost or cut, to ensure that
operational data are not lost.
Continuation:

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 MAINTENANCE – adopting PMS is the maintenance
agreement, which should spell out the related
costs of repair and replacement of hardware and
software.
– Allowance for emergency service and times
available for general service should also be listed.
 FINANCIAL CONSIDERATIONS – purchasing or leasing
a PMS for hotel use is a major financial decision.
Such an investment can tie up cash flow. If the
costs and benefits are not realistically projected,
profits may be in jeopardy.
Continuation:

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– After doing the first four steps, the application of
PMS is followed.
– After a very careful study for the needs of PMS,
finding an appropriate software or program to
be used, choosing the best hardware for your
business, and taking other considerations or
factors that might affect the PMS, you are now
finally equipped and ready to run the business of
your choice by applying your successful PMS
(Property Management System.)
Stage 05: PMS APPLICATIONS