1. Property Management Systems Chapter 7

2. History of Automation in Hospitality Industry At 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 Industry Further 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. Introduction What influences technology need for lodging establishments? - Department needs - Guest amenities Service level and customer relationships - Facility size and layout - Organizational structure

5. Introduction Property Management Systems - PMS Evolving Complex Peer to Peer (P2P) Same application installed on more than one computer

6. Introduction PMS - Centric Model Property Management systems integrate all of the information needed to manage

7. PMS Functionality PMS must be able to provide six basic functions Enable guests to make reservations Enable guests to check-in/register when they arrive and check-out/pay when they leave Enable staff to maintain guest facilities Account for guests’ financial transactions Track guests’ activities for use in future sales efforts Interface with other systems

8. PMS Functionality Enable guests to make reservations

9. PMS Functionality Enable guests to check-in/register when they arrive and check-out/pay when they leave At front desk Remotely PDA Remote terminal

10. PMS Functionality Enable staff to maintain guest facilities Room Type Status Occupant Inspections

11. PMS Functionality Account for guests’ financial transactions Credit Card Information Address Information Business Home Room Rate Room Charges Night Audit Collects and Posts Room/Guest Data

12. PMS Functionality Track guests’ activities for use in future sales efforts Information relevant and beneficial to future sales efforts Accessed by: CRS - Central Reservation System CRM - Customer Relationship Management

13. PMS Functionality Interface with other systems GDS - Global Distribution System CRS - Central Reservation System must integrate seamlessly even if from different vendors Sales and Catering Applications POS (F&B) Retail Points

14. PMS Functionality Interface with other systems HVAC or EMS Systems In-Room Amenities Messaging Security Call Accounting System

15. Four Key Interfaces Real-time interface with the GDS/CRS The activities management system Built-in revenue and yield management The enterprise

16. Real-time Interface GDS/CRS Switches Goal: to generate revenue Complicated due to different business models and varying relationships between entities Real-time: greater flexibility Costly to develop systems

17. Internet Reservations Module (IRS) Most PMS have IRS Make reservations online Book through Internet Eliminate fees –Expedia about %12

18. Real-time Interface Tracks guest room and activities Cancels appointments if guest cancels or checks out Repairs Pagers, blackberry

19. Real-time Interface Revenue and Yield Management Tools Managing room sales to maximize revenue and profits Examines multiple variables and provides complex calculations

20. Real-time Interface The Enterprise Refers to all systems - front and back PMS (front) Payroll, Purchasing, HR (back) EAI - Enterprise Application Integration End goal: of fewer redundancies and increase in collaborative synergy ERP - Enterprise Resource Planning BPI - Business Process Integration

21. GUI - Graphical User Interface Interface Intuitive Fits naturally with expectations Ease of training Multi-lingual Includes Websites

22. PMS Evolution 1st Generation: Minicomputers 2nd Generation: UNIX/NOVELL 3rd Generation: Reservation systems 4th Generation: Client-server 5th Generation: GUI 6th Generation: ASP (VPN)

23. Reservation Systems Selling 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) IRS Voice Center GDS (Global Distribution System)

27. Companies Fidelio German company World Leader Was bought by Micros, USA based company Now, Micros/Fidelio

28. CRS Decentralize the reservation function Centralizes marketing and sales efforts One way Two way

29. Internet based CRS Started in late 1990s Flexible Cost effective Compliant with GDS Marriott.com / starwood.com / bestwestern.com

30. Distribution channels for a hotel Travel Agency (GDS) CRS (800 reservation number) Call the hotel directly Corporate travel agent Hotel website (i.e. Hilton.com) Internet travel agency (i.e. Expedia.com) (Online GDS / ADS/ IDS) Walk-in Other

31. GDS

32. ADS/ IDS

33. Other travel related websites

34. Switch Switch

36. discount control

37. length of stay control

38. product class control

40. Global Distribution Systems Joint ventures linking a number of diverse businesses A big inventory Smart Switch Translator

41. GDS There are 4 major GDS Amadeus Galileo/Apollo Sabre Wordspan

42. Smart Switch American Airlines Unix System Hertz Rent a Car OS System Marriott Windows Based System Access Codes Access Codes Access Codes SABRE Common Platform

43. Switch Pegasus http://www.pegs.com Wizcom (Trust) http://hospitality.cendant.com/technology/

44. Property Management Systems Property management systems provide data that marketing can use for: Revenue maximization Better rooms inventory control More accurate management of room blocks Yield management capabilities Source: American Hotel & Lodging Educational Institute

45. Property Management Systems Automation 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-out Automated check-in and check-out Similar technology has provided automated airline ticketing and car rentals Source: 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 system Cashiering 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 Audit Recording all transactions Posting of room and tax Producing a trial balance Generating reports and updating statistics

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