The hospitality industry has been installing and property-testing ASP front office systems for three years. In that time the technology has evolved from a controversial and risky novelty into a stable alternative to the conventional, hardware-on-property PMS applications our industry has relied on for the past 25 years. With ASP systems stabilized, large hotel chains have begun adopting and installing ASP front office applications by the hundreds. The advantages of ASP implementation - lower buy-in cost, better reservation management for chain properties, less hardware and system responsibility on property, and better guest information -- are all being realized.
ASP TechnologyThe difference between application service provider (ASP) property management systems (PMS) and existing premises-based systems is that an ASP application manages the hotel's computer chores remotely. With an ASP front office system the server, database applications, and often the front office application, reside at a data center off property, and the hotel's workstations, usually PCs, communicate with the server over high-speed data lines. The advantages of an ASP system are that there is less hardware to buy, and professionals at the data center do the daily computer chores of backing up and maintaining the application. Also, if you are a chain property you have access to your company's entire guest history database, as well as corporate yield management and an online reservation system for better rate control, reservation generation, and guest service.
A number of vendors are rolling out ASP systems, and although they each have their own approach, the results are similar. In every instance hotels are utilizing off-property servers, and in most cases these remote servers are hosting groups of hotels or entire chains. In most ASP implementations properties communicate with their server over high-speed T1 or DSL connections, but virtual private networks (VPNs) and the Internet can also be used in some instances with a secured server. Since the public Internet has no guarantee of service or throughput, however, it is rarely employed as a primary communications channel for mission-critical PMS use.
ASP VendorsThe vendors installing ASP front office systems include Galaxy Hotel Systems, MICROS, NORTHWIND, Pegasus Solutions, Radiant Systems, Ramesys, and SoftBrands Hospitality. The newcomer to the PMS vendor ranks is publicly traded Radiant Systems RADS. Primarily known for its retail and point of sale transaction systems, Radiant acquired the successful HotelTools front office system and development team last year from Suburban Lodges and has re-branded the system as the Radiant Lodging Management Solution. Radiant has already rolled out the system to over 120 properties. Another new name on the list is SoftBrands Hospitality. Only the name is new here; SoftBrands is the fresh title of the restructured AremisSoft Hospitality Division, and comes forward with all of the industry experience of a veteran systems provider.
Galaxy Hotel Systems (www.galaxyhotelsystems.com) is installing its extremely reliable H-P-based full service front office system in an ASP implementation at very large properties. In the past ASP hotel systems were viewed as viable only for limited service properties, but Galaxy has installed its ASP version to manage over 4,100 rooms and six properties. At the 1,000+ room Westin Diplomat Resort and Spa in Hollywood, Florida, and at the nearby 65-room Diplomat Country Club the Galaxy PMS uses a wireless communications link for data transmission between clients and the server. The Galaxy PMS is a Unix-based system for speed and reliability, and offers a browser user interface for ease of use and faster training.
MICROS (www.micros.com) has been working on its OPERA product for years, and has recently installed a thin client remote-processing version of OPERA at 36 Summerfield Suites. MICROS, with the largest install base of any PMS vendor, has recently repositioned its offerings to meet the needs of smaller limit service properties and chains.
NORTHWIND (www.maestropms.com) is installing its Maestro PMS in an ASP architecture at several hotel companies where multiple properties are being supported remotely from a single server. NORTHWIND is hosting one hotel company's server, while others are self-hosting from their own corporate offices. Users report the single server implementation is extremely successful at running property groups with corporate control of reservations, guest history, yield management and cross booking. The cost saving in using only one server for multiple hotels is also a major benefit to NORTHWIND Maestro ASP users.
Pegasus Solutions (www.pegs.com) is continuing to install its Pegasus Central front office system in several property groups, most notably Six Continents where it is one of two vendors slated to install systems in all its 2600 properties by 2005. Pegasus also has a pilot system installed with Travelodge UK. Pegasus Central offers the advantage of being easily integrated with the worldwide Pegasus CRS and GDS systems that access the Sabre, Galileo, Worldspan, and Apollo booking networks. Many hotels will see an advantage in effortlessly setting up reservation services with one of the world's largest providers when they install the Pegasus Central PMS.
Radiant Systems (www.radiantsystems.com) has rolled out its Lodging Management Solution to over 120 hotels where the system has been in use for over a year. Radiant's PMS is part of the company's enterprise solution that includes point of sale, time and attendance, workforce management, and customer services applications. All Lodging Management Solution properties are hosted for Radiant at an Exodus data center to ensure secure communications and redundant back up systems.
Ramesys () is installing its CMS, or chain management solution, for hospitality enterprises desiring to have all properties linked to a central server and sharing a common customer database and accounting package. Over 300 hotels are now running on the system. CMS clients utilize a Microsoft Internet Explorer browser. Communication for the CMS PMS can be via 64K ISDN, Frame, DSL or any TCP/IP or VPN method. CMS is available with its own integrated Internet booking module. Ramesys also uses SynXis for cost effective GDS and Web bookings.
SoftBrands Hospitality () is in the beginning phase of a new ASP push that is being driven by a large development contract with a major resort client. SoftBrands is currently installing its Windows Portfolio PMS solution in an ASP implementation, but will be creating a new HTML system that is already well along in the planning stage. SoftBrands also offers its PMS as one component of its Portfolio enterprise management suite that builds on relationships with IDeaS yield management, and Daylight sales and catering to supplement SoftBrands' own leisure management suite, and multi-property central management system that includes central reservations. All of SoftBrands Hospitality's ASP systems are hosted from their own data center in Wichita, Kansas.
After three years of evolution, ASP front office systems are reaching a critical mass of acceptance. Major chains like Six Continents and Suburban Lodges in the US, and Travel Inn in the UK are adopting ASP applications as a primary front office system. There are still questions surrounding the number of properties that can be supported by each server and the best means of communicating transactions and data, but the ASP concept has proven itself in our industry. If you are shopping for a PMS at HITEC watch the demos and take ASP systems seriously.
Michael Squires is president of Softscribe Inc., a technology consulting corporation that specializes in industry analysis, targeted public relations, and marketing and sales services. Contact Michael at (404) 256-5512 or [email protected].