A property management system, or PMS system for short, is an increasingly useful tool within modern hotels, assisting owners and other staff with various tasks. However, with more PMS software on the market than ever, it is also essential to know which features are most important to make the right decision.

What is a PMS System?

A property management system is a software solution that assists hotels, resorts, and similar properties with day-to-day tasks and operations. These will typically include management and administrative tasks, with examples including reservations, payment processing, performance analysis, and inventory management. In the article “5 Essential Tips to Choose the Right Property Management System,” you learn more about PMS systems and how to choose the right one for your property.

Why Every Hotel Needs a PMS System?

A PMS hotel solution is increasingly important because the modern hospitality industry is technology driven. With bookings coming in from multiple channels, prices needing to be adjusted smartly for revenue management purposes, and customer service being a 24/7 endeavor, having PMS software can help to contend with these challenges.

A good property management system will allow hotel staff to do away with paperwork and perform important tasks more efficiently. Additionally, a PMS system can help to reduce room vacancies and double bookings.

What Are the Most Important Features of a PMS System?

While there are several property management systems on the market, it is important to identify one with the right features for your hotel. With this in mind, below, you will find eleven of the most important features to look for.

1) Reservations

The first and perhaps most obvious feature your property management system should have is the ability to handle hotel reservations. This reservation system should be able to integrate with all channels where customers can make bookings, and provide your own staff with access to up-to-date inventory information.

This means employees should be able to use the PMS system to determine which rooms are reserved and when. Some PMS systems also provide similar functionality for other hotel services. In contrast, hotels that are part of a chain may need access to reservation information from across the entire property portfolio.

2) Front-Desk Operations

Your PMS software should also allow front desk staff to perform several important functions. In particular, staff should be able to use the hotel software to access up-to-date information about reservations and the status of specific rooms within the property, and this kind of information should be able to be manually updated.

So, for example, it should be possible for front desk workers to help guests to switch rooms, and update the room information. It should also be possible for staff to manually check guests in and out, and issue key cards.

3) Channel Manager

For hotels to remain competitive, they must typically distribute hotels across various channels. Indeed, hotel rooms can be sold through the hotel website, telephone bookings, via online travel agencies, and more. This makes it absolutely essential that the various channels can be managed effectively.

The best hotel management software will include channel management functions, ensuring rooms are available across multiple channels and that inventory information is always up-to-date. Some PMS systems offer direct channel management functionality, while others integrate with third-party global distribution systems.

4) Revenue Management

Another important feature of your hotel management software is revenue management functionality. This can help hotel managers and other staff to assess the performance of the hotel, using key performance indicators like ADR (average daily rate), RevPAR (revenue per available room), and GOPPAR (gross operating profit per available room).

Related to this, a good PMS system will also offer rate plan management. Simply put, this will allow hotels to create room rate plans quickly and put them into effect, allowing managers to respond to changes in demand more easily. These changes may be linked to the season, local events, and other external factors.

5) Check-In Functionality

Digital check-in functionality is a relatively new offering within the PMS market, but one that is growing in popularity. This allows payment cards to be authorized in advance, allowing guests to arrive, and then check in using a mobile app on their phone, or by using a self-service check-in machine in the reception area.

Then PMS syncs automatically, keeping check-in and occupancy information updated. Benefits include improved speed, communication with customers via the app, and up-selling and cross-selling opportunities. Even in PMS systems that do not include this feature directly, many offer integration with external check-in systems.

6) Customer Data

The hotel industry is increasingly data-driven, which means keeping customer information. For this reason, your PMS system must include a customer data management function, allowing staff to obtain contact details, the dates customers stayed at the hotel, information about which guests are in which room, etc.

Customer loyalty schemes should be able to be managed via the software, while the PMS should be able to be used to assist with marketing efforts. Customer information can then be consolidated in one place, whether obtained online or in person, and the PMS system can even be integrated with your CRM software.

7) Housekeeping

The best property management systems will also allow housekeeping tasks to be managed effectively. This kind of functionality could be as simple as allowing front office staff to track the status of rooms and whether or not they have been cleaned, but it can also allow specific tasks to be assigned to the housekeeping staff.

Some of the modern hotel management software solutions will also allow tablets or mobile devices to connect to the main system. The benefit is that housekeeping staff can update their progress as they go, offering more of an up-to-date status report, while communication with the front desk can also be made simple.

8) Third Party Integrations

While a PMS system is designed to be an all-in-one solution, the reality is that many hotels are also going to use other software solutions alongside their PMS. Therefore, third-party integrations are important when selecting the best hotel management software for your property.

Some of the most common third-party integrations hotel owners look for are global distribution systems, online travel agents, central reservation systems, and hotel accounting solutions.

9) Invoice & Payment Options

Next, a property management system must provide various payment options. This should include payment processing options for front-desk staff and e-payment processing for bookings made online using a credit or debit card. Software should also allow confirmation emails to be sent swiftly.

Furthermore, the software should be able to create invoices or receipts for customers, so that these can be easily issued upon check-out, or after using any additional paid hotel services.

10) Point of Sales Services

Modern hotels often have a range of extra facilities, services, and sales outlets, and the various transactions that occur will often need to be added to a guest’s bill, which will be presented upon check-out. For this reason, a property management system that includes point-of-sale services can be a vital addition.

The hotel restaurant, gym, or spa staff should be able to use the software to handle transactions and update the bill for individual guests. The same should also be true for room service. The best solutions will allow discounts to be applied too, and this benefit is that transactions can be handled now, reducing mistakes.

11) Reports

Finally, your hotel management software should also include automated report functionality. This will allow hotel staff to access reports based on the latest data quickly, and these reports could be linked to hotel performance, financial information, or hotel management tasks and processes.

For instance, if management requires a report on hotel occupancy rates over the past two years, or on the performance of a specific distribution channel, the software will be able to produce such a report. Similarly, financial reports may be needed for accounting and tax filing purposes, or to assist with decision-making.

Selecting a Hotel Channel Manager

Aside from your PMS system, several other software packages can be useful for hotels, but a hotel channel manager will rank among the most beneficial. A good hotel channel management solution will allow you to keep hotel, inventory, and pricing information up-to-date across all your online distribution channels.

Check out “Hotel Channel Manager: Nr. 1 Guide to Hotel Channel Management!” for much more on what this software is for, how it can assist you, and advice on the main features you should look for.

A property management system, or PMS system, is essential in the modern hospitality industry, but finding the right software for your requirements is equally vital. In particular, the eleven features cited in this article are important to look out for, if you also want a reliable and user-friendly software solution.

More Information About Hotel Management Software

Would you like to learn more about hotel management software solutions that can help you to grow your hotel business? In the following articles, you will find more information about the most important hotel management software for hotels:

More Tips to Grow Your Business

Revfine.com is a knowledge platform for the hospitality & travel industry. Professionals use our insights, strategies and actionable tips to get inspired, optimise revenue, innovate processes and improve customer experience. You can find all hotel & hospitality tips in the categories Revenue Management, Marketing & Distribution, Hotel Operations, Staffing & Career, Technology and Software.

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This article is written by:

Martijn Barten

Hi, I am Martijn Barten, founder of Revfine.com. With 20 years of experience in the hospitality industry, I specialize in optimizing revenue by combining revenue management with marketing strategies. I have successfully developed, implemented, and managed revenue management and marketing strategies for individual properties and multi-property portfolios.