A hotel property management system, or PMS, is powered by highly intelligent, cloud-based software. A PMS is essentially a hotel's brain center. It empowers hotel managers to automate key functions, streamline operations, monitor key metrics, guard their hotel's online reputation, and increase their profit margins.
Once the province of the big hotel chains, property management systems (PMS) have recently become more affordable. They are now helping a new generation of small and independent hotels remain relevant and compete in an increasingly crowded market.
In today's connected world, there are a plethora of mediums fighting for your guests' attention. Third parties can often influence and engage guests during a guest's stay, but it's ultimately up to your hotel to ensure your guests are taken care of around the clock.
We begin our inquiry by asking, what is driving customer retention in hotels? Answering this question requires that our readers do away with this quaint notion that all guests are of equal value to their hotel.
StayNTouch Best Practice Blog: Optimizing the Guest Journey for Direct Bookings Pt 2: During and Post Stay
The 1990s were halcyon times for OTAs and the hotel industry: commissions were low, and hotels were able to sell extra rooms and benefit from the "Billboard Effect." But times have changed and OTAs dominate the market, commodifying the hotel industry in the process.
Online travel agencies, or OTAs, are a mixed blessing for hotels. They help to fill rooms and achieve occupancy goals but often at the expense of revenue. When guests book directly with a hotel, it costs hotels less than OTA bookings and is, therefore, better for a hotel's bottom line.
When OTAs came on the scene in the 1990s, they were seen as a win-win proposition: While OTAs profited off of commission, hotels were able to use OTAs to sell rooms that would otherwise lay vacant.
The ability for hotels to communicate directly with their guests has never been greater. Many, if not most hotels, have websites and blogs and participate in the social media conversation, while some even text and instant message their guests.
If you avoided a speeding ticket on your way to work this morning and managed not to run out of gas, thank your KPIs.
Now that we're just past the year's halfway mark, it's a great opportunity to take a look at the hospitality industry from a bird's eye perspective.