When it comes to hotel tech, we may all agree that PMSs are at the top of the food chain. It's semantically already in the name itself: a PMS is the SYSTEM used to MANAGE your PROPERTY. This gives the software connotations of centrality in operations. However, a new wave of leaner systems is rising: PMSs are becoming "hubs" rather than all-in-one solutions, using open APIs to allow users to plug in other software and tools as needed. These systems are less about "managing the property," and more about integrating third-party software.

In this environment, where do PMSs sit in one's tech stack? Is the classic notion of PMS outdated? Will the future of hotel tech be less reliant on PMSs as we know them?

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Max Starkov
Max Starkov
Hospitality & Online Travel Tech Consultant

Today's Property Management System (PMS) is the hotel 's command center for rooms and F&B management, sales and catering, distribution, availability, pricing, reservations, guest interactions, issue resolution, housekeeping, reporting, billing, guest communications, etc. and is often described as "the central nervous system of the hotel operations."

In other words: from a technology perspective, the hospitality industry has always had a PMS-centric hotel tech stack approach. The legacy PMS platforms have a number of serious disadvantages: a) too expensive to install, train staff and maintain, b) their "all-in-one solution approach" stifles innovation and prevent quick adoption of new functionality needed to meet new guest requirements or sudden changes in the market conditions, like the contactless experience from last year, and c) as closed systems they are reluctant to open up to third-party integrations, applications and solutions, depriving the property and its guests from some very innovative and much-needed applications and services.

In spite of all the bad reputation - well deserved by the PMS in the past -  I believe the PMS-centric tech stack will continue to dominate hotel technology in the future. The question is, what kind of a PMS? Luckily for our industry, the future is already here in the form of a cloud PMS with Open API (application programming interface) integration platform, just on time in this most challenging era in our industry.

Ever since the emergence of the cloud-first PMS platforms like Mews and Cloudbeds, there has been a monumental shift in the PMS vendor community's mindset: from closed system mentality to cloud PMS with Open API mentality. At Oracle Hospitality, with the adoption of the Oracle's self-service cloud technology tools, the OPERA Cloud PMS with Open API has become the most important innovation strategy.

I believe over the next 5 years the adoption of cloud PMS solutions will explode and this will be the highest growth component of the hotel tech stack, followed by revenue management systems (RMS) and customer relationship management (CRM) solutions.

Why the cloud PMS? Low costs, efficiencies, higher productivity and data security aside, in the near and mid-term a full-service 3-4-5-star hotel will need over 100 plus APIs with third-party tech applications and solutions to be able to function and meet the basic needs and wants of today's digitally-savvy travelers. These include mobile and contactless guest experience, mobile locks, issue resolution apps, guest messaging, virtual concierge, IoT devices and utility management, smart room technology, entertainment hubs, CRM programs, etc.

This type of connectivity is impossible or super expensive to achieve with a legacy PMS, which is hostile to any third-party interfaces by default. A cloud PMS with its Open API and integration hub instantly solves this problem. Good examples: The new Oracle Hospitality Integration Platform with 3,000 API capabilities, StayNTouch Integration Hub with 1,100 APIs; Protel Air PMS Marketplace - 1,000 APIs, Cloudbeds PMS - 300 APIs etc.

There is no doubt in my mind that the cloud PMS with Open API facilitating connectivity to hundreds and thousands of smart, innovative and much sought-after applications and solutions is the clear winner today and tomorrow. The only question is when to switch? My advice? The sooner you switch, the more excellent the guest experiences you provide to today's super tech-savvy customers, the more you will know about their preferences, the better you can communicate with them, the more loyal customers you can win thus generating more repeat business, the more you can empower your employees, the more automation and operational efficiencies you can implement, the faster you can improve the bottom line and the sooner you can outshine the competition.

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