Key Questions to Ask When Choosing a Hotel Property Management System, According to The 2023 Smart Decision Guide

The following is a brief excerpt from Chapter 3 ('Must-Ask Questions') of The 2023 Smart Decision Guide to Hotel Property Management Systems:

Starfleet Research, the leading provider of best practices IT research and recommendations for the hospitality industry, has released The 2023 Smart Decision Guide to Hotel Property Management Systems. This marks the seventh edition of the popular title, widely regarded as the industry’s most authoritative and comprehensive resource for maximizing success with hotel property management systems and related technologies.

The following is a brief excerpt from Chapter 3 (“Must-Ask Questions”) of The 2023 Smart Decision Guide to Hotel Property Management Systems:

When it comes to selecting the right property management system, asking the right questions is crucial. Hoteliers should not waste time asking technology providers if their PMS can safeguard the property from unforeseen existential threats. Instead, the focus should be on the system's ability to enable agility and adaptability. This is particularly important in today's constantly changing business environment where it is critical to be able to respond to new market conditions quickly.

The key to asking the right questions is to have a good understanding of the property's unique needs. Every hotel is different, and the selection of a PMS should be based, in part, on factors such as property size, category, and revenue mix. For example, a large convention hotel might require a PMS that is specifically designed to handle complex group bookings and events. A smaller boutique hotel might need a system that is more streamlined and efficient in managing guest stays.

The questions that hoteliers should ask technology providers will vary based on these factors. For example, if function space is a significant part of a property's revenue mix, hoteliers may want to ask about the PMS's ability to handle room blocks for large events. If the property has a high volume of direct bookings, they may want to inquire about the system's ability to manage reservations through their website.

The following are just a few questions that hoteliers may wish to explore with PMS solution providers.

Does the PMS allow for customization?

While hotels may share common features, each property has a unique identity that requires tailored technological solutions to address their specific needs. The adoption of a one-size-fits-all approach to PMS is likely to fail to meet the demands of the individual property, leading to suboptimal results. The PMS should have a high degree of customization, including the ability to modify screen layouts and adapt printed folios and registration cards to reflect the property's brand identity.

A flexible and configurable solution that can meet the specific needs of the property is crucial to ensuring smooth operations. These needs may include geographical and regional considerations, including multi-language screens and fiscalization and localization capabilities. Fiscalization enables properties to comply with the fiscal laws of a country, while localization caters to the unique market needs of the specific region or country. For example, if a hotel chain operates in different countries with different tax regulations, the PMS must have a localization capability to ensure that the tax codes and legal requirements of each region are met.

What is involved in PMS deployment, staff training and support?

Hoteliers should expect the same level of service excellence from a technology solution provider as they would from their hotel staff. This includes knowing that the provider can offer support with implementation, data migration, customization, and addressing day-to-day issues. An effective PMS solution provider should ensure that managers and other hotel staff receive the training they need to quickly master the new system.

According to the survey conducted for the The 2023 Smart Decision Guide to Hotel Property Management Systems, 78 percent of hoteliers consider employee onboarding and user training to be a critical success factor in ensuring the effective utilization of a PMS. Therefore, it is essential to ask whether the provider or a certified subcontractor offers training, including remote options, and whether software upgrades are included in the annual subscription fees or incur an additional cost. In addition to providing training, an effective solution provider should offer resources such as e-learning tools with digital content to shorten the learning curve for staff. These tools enable employees to gain knowledge almost immediately while giving hoteliers a way to standardize training with consistent messaging and assignment of course curriculum to monitor training progress. 

Hoteliers must also understand how the software upgrade process works, including the frequency of upgrades and whether there is likely to be any service interruptions. This information is essential in enabling hoteliers to plan for necessary maintenance, minimize disruptions, and ensure the seamless operation of their property. Hoteliers should seek providers who offer comprehensive training options, including remote learning, and prioritize resources such as e-learning tools to shorten the learning curve. Additionally, it is vital to understand how software upgrades are handled to plan for maintenance and ensure a seamless operation.

What security and data protection measures does the PMS have in place?

The security and protection of sensitive information is critical for any business, especially in the hospitality industry where customer data such as personal and payment information are commonly stored in the PMS. Hoteliers should ask the provider about the security measures they have in place to protect sensitive information. This may include data encryption, access controls, firewalls, and regular security updates. It is also essential to understand how the PMS provider handles data breaches and the steps they take to mitigate the risk of such incidents.

Due diligence is crucial, and hoteliers should research the provider's reputation, reviews, and certifications before making a purchase decision. In addition, hoteliers should ensure that their staff is trained in data protection best practices, such as avoiding sharing login credentials, and regularly updating passwords. An effective PMS should also provide an audit trail that allows hoteliers to monitor who has accessed sensitive information and when, enabling them to identify and address any security incidents promptly. Hoteliers need to ensure the security and protection of sensitive information in their PMS, which is critical to maintaining customer trust and complying with data protection regulations.

Do the built-in data analysis tools in the PMS meet the needs of the hotel?

One of the key considerations is whether the data analysis tools integrated within the PMS meet the complex needs of the hotel. To this end, research conducted for The 2023 Smart Decision Guide to Hotel Property Management Systems indicates that a staggering 87 percent of hoteliers view gaining access to PMS data and business intelligence as either "important" or "very important.“

One critical feature that hoteliers should look for in a PMS solution is whether it employs automated match-and-merge functionalities to combine guest information. Such capabilities reduce the likelihood of inaccurate guest records and improve the overall quality of data. Additionally, the solution should enable hoteliers to manage guest profiles with greater efficiency and accuracy, storing and managing a single instance of a unique guest profile across all areas of the enterprise, regardless of where the guest may have stayed in the past, or at which property or properties.

Moreover, the PMS should provide hoteliers with a real-time view of a guest's past purchase behavior, preferences, and other pertinent details that inform effective personalization of offers, messages, and treatments that resonate with the individual guest. While most systems come equipped with standard dashboards that meet day-to-day performance management requirements, some reports may need to be customized to cater to specific reporting needs. For instance, a housekeeping report should include information on the last cleaning date, occupancy and housekeeping statuses, reservation number, arrival and departure dates, number of guests, and room availability.

The report should also list rooms based on room type, building, status, and type, within a specific range of rooms. Therefore, it is essential to ensure that PMS capabilities provide for ad-hoc queries, which allow hoteliers to set new data parameters and generate custom reports and dashboards on the fly. In addition to standard dashboards, access to non-standard data sets and customized dashboard settings is critical to meeting the unique needs of each hotelier.

The new Smart Decision Guide is underwritten by the following industry leaders: Agilysys, Infor, Maestro, mycloud Hospitality, and Oracle Hospitality. For a limited time, the 2023 edition is available for complimentary download courtesy of the underwriters.