Property management systems can be the brains of your operation. Understanding the various modules that can be included in your property management application is as important as deciding whether you want the whole thing hosted by a third-party or to have certain pieces managed locally. This article discusses some of the features that you should be looking for, along with the configuration choices available.

What is a property management system?

A property management system is at the very least a way to keep track of customer reservations and hotel billing. Most modern day property management systems are much more than this, however, acting as the central command point for many different hotel resources. At their best, these systems serve as a resource for hotel staff to control the smooth flow of guests throughout the hotel, from reservation through to check out.

What types of property management system are available?

Property management systems are available in three main flavours:

• Hotel-located systems
  Traditionally, property management systems have run on a PC physically located in a hotel. Although older systems or systems for very small establishments may hold all the data on a single desktop PC, you are more likely to be offered a two-part system consisting of a client and a server. The property’s data will be held in a database sitting on the central server, accessed by separate workstations that can be located around the premises.
• Hybrid hotel/remote systems
  This concept takes the two-part system described above and spreads it across multiple locations. One part sits on a client PC, processing some data locally. The other part sits on a server that may be located at a head office if a hotel has more than one branch, or on the web. These systems can be used to consolidate a web-based online booking module with local reservation data, for example. 
• Web-only
  More recently, property management systems have become available as web-only systems, operating all of the property management functions from a central location. They are accessed by a "thin client", which is a minimally-configured PC using just a browser, with access to the internet.

Which type should I choose?

Each type has its advantages and disadvantages.

Hotel-located systems offer more flexibility and control over your own data, because it is located on your premises and not managed by a third party. But running your own servers can carry a significant IT support overhead that a small hotel could find unworkable.

A web-only system can reduce IT support costs and capital investment, because you no longer need a dedicated desktop PC or on-site server to manage the system. It also makes it easier for managers to check up on hotel status remotely, and reduces the impact of PC failure within the hotel, because you can quickly access the same information from another terminal. On the other hand, some hoteliers may feel uncomfortable having their private guest data located at a third-party location, and there is always the danger that you might lose your internet connection periodically, meaning that you will need some sort of backup system.

A client-server solution can you the best (or worst) of both worlds, providing more local control for your data and still giving you the chance to store some information at a remote location. The exact division of data between local and remote locations will depend on your supplier’s system.

What can a property management system connect to?

Property management systems are varied in their scope. Some offer very basic facilities, while others come as modular suites offering various functions. Ideally, you would expect your property management system to connect with the following:

• In-room entertainment systems. This enables you to automatically bill for in-room movies
• Telephone systems. Outgoing calls can be charged at various rates
• Broadband internet access. With wireless networking and Ethernet connections now commonplace in hotels, property management systems can help you to manage this revenue generator
• Door locking systems. Generating new keys based on guest check-in and checkout is a crucial feature
• Electronic point of sale. Hooking into EpoS systems in areas such as the bar and restaurant will enable guests to charge facilities to their rooms more easily

How can I tie these resources into a property management system?

De facto standard interfaces exist for connecting resources into your property management system. For example, the Micros 3700 interface for EPoS systems is well accepted, and many in-room entertainment systems supply their own interfaces which are recognised by many property management systems.

How can I recover my investment?

The key is to look at property management systems not just as a cost centre. Think about ways in which integrating more facilities into the system can help to generate more revenue. For example, some property management systems also include a guest relationship management module that can help you to market your hotel more effectively to companies and regular visitors using promotions, loyalty discounts and data mining. Who stayed in your hotel over a weekend last August? Perhaps they would take advantage of the offer to do so again?

Yield management modules can help you to optimise rates according to criteria such as the day of the week that the customer is staying, the volume of business they do with the hotel and the current season. Increasing your average daily rate by just a few pounds can dramatically improve your profits throughout the year.

What other features should I look for when purchasing?

Modern property management systems offer facilities -- either as core features or modules -- that can increase efficiency, reducing your bottom line and making guest experiences run without a hitch. Look for the option to include these features in your purchase:

• Scheduling housekeeping
• Managing groups and conferences
• Building packages with common components (your Valentine's Day package and Mother's Day package may both include a bottle of champagne and a hamper, but only the Valentine's Day package would include a romantic meal, and only the Mother's Day package fresh flowers in the room)
• Activity scheduling
• Waiting lists
• E-mail marketing