Point-of-sale software ranks among the most important software solutions available to those in the hotel industry, and hotel owners and managers need to take steps to get the most from these packages. In this article, you can read about the six benefits of using POS software effectively.
Table of Contents:
- What is Point of Sale Software?
- Why Use Point of Sale Software in a Hotel?
- POS Systems and Hotel Management Software
- Point of Sale Software and Other Hotel Software Tips
- Point of Sale Software in Restaurants: Current and Future Trends
What is Point of Sale Software?
Point of sale software, or POS software, is part of a wider POS system and is primarily designed to allow users to process customer payments. However, at the same time, POS software can automate various parts of the sales process, such as updating inventory information and sales data.
Within the hotel industry, POS software can be used to process check-ins and check-outs, but the software may also be used in other parts of the hotel that aim to generate sales, such as the restaurant and bar. Newer software solutions tend to be cloud-based, allowing them to run on tablet devices like iPads for additional portability.
Take a look at “POS Systems: Overview and Importance in The Hospitality Industry” to read more about Point-of-Sale Software more in-depth.
Why Use Point of Sale Software in a Hotel?
For those in the hotel industry, point-of-sale software can be one of the most important investments because it can provide staff with a range of tools that can be of benefit to them and to the business.
Video: Hotel Point Of Sale Software – Importance of POS in Increasing Hotel Revenue
Below is information about six of the most important benefits connected to POS software and systems.
1. Payment Processing Made Easy
One of the biggest benefits of using point-of-sale software within the hotel and hospitality industry is the ability to process payments easily. This includes processing payments of various types, including cash payments, debit card payments, credit card payments, mobile wallet payments, and more.
Using a POS system, pricing is kept continually up-to-date across the board, so that all employees are using the most recent and accurate information. Additionally, discounts can be automatically applied, and many POS software solutions on the market can also track rewards associated with customer loyalty programs.
One of the big plus points associated with cloud-based systems is portability. When using a tablet, such as an iPad, the device can be moved around a hotel, so that payments are processed in the most convenient location for guests, rather than requiring them to come to a cash register or the reception area.
2. Better Grasp on Inventory Management
Point-of-sale software within the hotel industry is also invaluable for the role it can play in terms of improving inventory management. For example, stock levels on products can be automatically updated as and when sales are processed, meaning employees will always have the most accurate data.
The POS system can be fully integrated with existing sales systems to update online and in-person sales information immediately. Meanwhile, in restaurants, bars, and other parts of the hotel, the POS system can accurately track the need for new supplies and ingredients.
One of the most important benefits linked to this superior inventory management is the scope for automation. Alerts can be set up so staff are automatically notified when stocks reach a set threshold. Sometimes, the system can even be set up to order new stock when levels reach a certain level automatically.
3. Customer Management Opportunities for Upselling and Marketing
Another major plus point associated with using point-of-sale software within hotels is its upselling, cross-selling, and marketing opportunities. Upselling and cross-selling are strategies for maximizing revenue per customer, and in hotels, this can mean selling room upgrades or extras.
With a good POS software solution, these additional sales can be made anytime, and the information can be instantly updated across the entire system. As a result, the software can help those involved with hotel management to maximize revenue generation and boost overall financial results for the property.
However, POS software can also assist with marketing, primarily by integrating customer relationship management (CRM) tools. This can allow marketers and other employees to access information about bookings and purchases made by customers so that they can be targeted with more tailored marketing messages.
4. New Efficiency with Employee Management
POS software and systems can also help hotels with employee management, and this can be achieved in several ways. For instance, employees connecting to the POS system can monitor when they were at work, when they left, and how many hours they worked, potentially making payroll easier.
When software is combined with tablets or other mobile devices, it potentially affords hotels and other hospitality businesses more opportunities to allow their staff to process payments. In this sense, the POS software can help train and develop core retail skills.
One element of point-of-sale software that is sometimes overlooked is its ability to assist with performance monitoring. Each sale can potentially be linked to a specific employee. Regarding concepts like upselling and cross-selling, this could help identify the most successful employees, so they can be rewarded.
5. Analytics and Reporting
The data gathered by point-of-sale software can be extremely useful for reporting purposes, making it one of the most vital pieces of hotel technology. Generally, a POS system will automatically track basic performance indicators related to sales and revenue, and hotels can configure the software to track RevPAR and similar metrics.
Data is gathered automatically and continuously, regardless of which device runs the software. This helps ensure that data is always as up-to-date as possible. This automated nature also helps avoid some of the inaccuracies associated with human error when performance data is gathered manually.
All of this allows for the creation of accurate reports, and many software solutions on the market include features for presenting data in easy-to-understand ways, such as through graphs and charts. Point-of-sale software can also carry out data analytics, identifying significant trends and assisting with forecasting.
6. Integration with Hotel PMS
Finally, point-of-sale software also offers excellent compatibility and integration with other examples of hotel software, with property management systems (PMS) among the most significant examples.
One way these two software solutions can integrate is by creating invoices or receipts for hotel guests and restaurant and bar customers. This can be especially important if hotels run a system where any purchases are added to the eventual bill given to guests when they check out at the end of their stay.
This ability to use a POS system and PMS to update the invoice for each room continually also provides hotel guests with a far better customer experience. After all, they only have to pay once for their room, every product they purchased, and every service they used, meaning they avoid having to pay multiple times.
POS Systems and Hotel Management Software
Point of sale software is one example of hotel management software, but there are many others. A key part of running a successful hotel involves balancing these different software solutions, getting the most out of each of them in turn, and finding ways to integrate the applications to work together.
Read “Hotel Management Software: What Are the Benefits for Hotels?” to explore the topic of hotel management software further and to understand the main advantages of investing in these solutions.
Point of Sale Software and Other Hotel Software Tips
Modern hotel and hospitality businesses use a wide range of software solutions, from point-of-sale software and revenue management systems to hotel channel managers and property management systems. For those involved with hotel management, it is important to take steps to ensure these different solutions are used effectively.
Check out “Software Tips for the Hotel & Hospitality Industry” to learn about the different software packages available to hotel owners and how to make the most of these different solutions.
Point of Sale Software in Restaurants: Current and Future Trends
Point of sale software can be especially useful within hotel restaurants and the restaurant industry because it allows for smoother transactions while automatically feeding back which meals have been ordered. Of course, staying up-to-date with the various other ways the software is being used is also important.
Check out the “Restaurant POS Systems: The Latest and Future Trends” article to learn more about the use of POS solutions within the restaurant industry and the direction of travel regarding key trends in this area.
Getting the most from point-of-sale software can help hotels to process payments more easily and improve inventory management. On top of this, the software has the potential to integrate with other applications, can help employees with their upselling and cross-selling opportunities, and has a role to play in tracking performance.
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.This article is written by:
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.
Thanks for pointing out that point of sale software could provide the ability to process payments easily which will benefit the hotel and hospitality industry. This is something that hotel owners must consider in order to cater to more customers that may be using different payment options. I could imagine how installing a POS system could keep the hotel’s payment process efficient.
I liked that you said that payments could be processed easily when the point of sale software is used within the hotel and hospitality industry. This is something that business owners must consider in order to accommodate more customers who may have different preferred payment methods. I could imagine how the right POS system could make payment processing for customers hassle-free.
It caught my attention when you said that a POS system could be used in restaurants to track every time new ingredients and supplies are needed. With this in mind, I would assume that restaurant would benefit from using the right merchant processing system. I could imagine how your tips could be used for them to keep meeting their customers’ demands.
Can you share any personal experiences or insights regarding using point-of-sale software in the hotel or hospitality industry and how it has influenced customer service or business operations?
Great article on the benefits of using POS software in the hotel industry! Integrating property management systems is also a must-have for improving the guest experience.