There’s been a strong debate recently about the way the global hotel industry is developing – and if you’re a mid-market player, you’re likely to have change on your mind.
As hospitality writer Larry Mogelonsky pointed out recently in How the hotel industry is cutting out the mid-tier, the industry is splitting in two, with mid-market hotels moving either to the full-service end of the spectrum, or towards the economy side.
This evolution is perhaps inevitable – it’s what happened to airlines, and customers are becoming more polarised as accommodation choice opens up and becomes more and more easily accessible.
While hotels set their sights on an eventual destination as either luxe or budget, they may feel very separate from their rivals at the other end of the market.
But they still have a world in common – getting the right guests at the right time and the right price – and the most successful are already finding that today’s technology is providing the right answer no matter at what end of the spectrum they sit.
For the full-service hotels, the guest experience is paramount – it’s what sets them apart from their similarly classy competitors, encourages loyalty and enables commission-free repeat bookings that maximise yield.
Along in economy class, the priorities are different. Here, the emphasis is on creating accessibility, so guests can book quickly via a mobile device; see it, book it, boom….
Fortunately for both, hotel property management systems have evolved too, keeping in step with advances in the industry and also developing to meet the changing needs of hotel customers.
There’s no doubt this is a factor – a recent focus group of millennial travellers (the digital-savvy generation born after 1980) showed they make eight travel trips away from home each year.
When selecting hotels, they use Expedia, Hotels.com or Booking.com, describing this as ‘web booking’, and said their number one reason for doing it was ease of making their total travel reservations including air and car rental.
Loyalty to hotel brands? They simply did not have it – and they weren’t interested in loyalty programmes.
These are major users of value accommodation – so you can see how a hotel’s property management system (PMS) that does not link to the online travel agents via a channel manager will struggle.
Full-service hotels need that online booking access too, of course. But for them, a property management system offers a different way to boost occupancy.
A PMS will automatically synchronise rates and push out availability across all the online travel agents – a big time saving for hotel staff who can be better occupied greeting guests.
It will also automatically import all online bookings without manual intervention – another benefit whether you are luxe or economy.
But those bookings come with commission deducted by the channel managers – and that’s where the PMS provides full-service hotels with a further benefit.
When the guest arrives, it captures their data and preferences so special offers can be automatically emailed out to them after their visit, encouraging them to come again – and book direct and commission-free this time.
UK boutique hotel chain The Mercer Collection implemented a PMS when the group grew rapidly to seven hotels and hugely outpaced its paper diary reservation system.
The property management system handles all aspects of hotel management from guest check in to housekeeping to drinks in the bar to final checkout and billing. It also supports the smooth functioning of the hotels with management reporting and marketing features.
Reservations manager Ellie Hogston says the PMS has revolutionised operations for the hotel group.
“It’s so much easier to take a booking now that I can see everything in one place and don’t have to go through the folders trying to find the right place to put a guest,” she said.
“It gives a better impression to guests, too, because they aren’t looking at a scrappy piece of paper as you check them in. By just putting in a surname, you can bring up all the details of a returning guest – it’s great for regulars.”
At the top end of the market, a PMS makes it possible for guests to book extras such as spa sessions or food and beverage, again adding to the smooth guest experience that creates a deluxe stay.
Both full-service and budget hotels can both benefit from good electronic point of sale (EPoS) technology, available as part of a PMS.
It can enable tableside ordering and billing with hand-held devices, send orders direct to the kitchen for quick service, and handle waiting lists. For economy establishments it means a rapid table turn – and for luxury hotels, it means providing that sought-for seamless guest experience.
Above all, hotels with a PMS benefit from comprehensive management reporting that gives a clear end-to-end view of the entire business, whether it’s a single hotel or a multi-site operation.
With daily reports on sales, room occupancy, housekeeping and travel agent commission, and forecasts on revenue at their fingertips, hoteliers can make informed decisions about the direction in which they want to take their business.
It’s a rapidly-changing world out there, as hotel guests change and red-hot competitors such as Airbnb arise.
With global trading conditions increasingly tough, it’s no time to be sitting on the fence, which is perhaps the main reason why middle-market hotels are making the decision to move their operations to one end or other of the market.
But whichever way they move, one thing is for certain. If you want your hotel to succeed, you need technology that’s evolving as fast as you are.
3 top tips to position your hotel well:
Access: Make sure guests can book quickly online by giving your hotel access to online travel agents via a channel manager.
Guest experience: Capture guests’ data when they arrive and use it to automatically email them attractive offers.
Reporting: Good management reports mean you see your business end-to-end, and can make informed decisions.
About the author
Luis De Souza is chief executive officer of NFS Technology Group, which provides technology for hospitality, EPoS, room booking, venues and clubs.
