WHY AN EXCEL SPREADSHEET IS NOT ADEQUATE IN HOTEL MANAGEMENT
Hotel management models have evolved since collected data was stored and categorized using Excel spreadsheets. In order to guarantee an efficient management of your establishment, it is essential for you to acquire a high-performance PMS system. With such a system you will ensure to stay on top of all aspects of your establishment. Whether talking about statistical analyses, use of yield management or room assignment, Excel will quickly become limited. You can now start to think about a new way of promoting productivity, ensuring a better customer tracking system and allowing an improved operations performance. This is the time to adopt a new and promising PMS system.
A PMS system for yield management
In the hotel industry, pricing and services flexibility should not just be an aspect to consider, but a necessity. Maintaining a constant rate for hotel rooms without taking into account the current occupancy is not a viable option. Yield management allows you to maximize your revenue, by varying your prices according to your occupancy and the season. However, your good old Excel spreadsheet will not be able to provide you with this type of data.
Indeed, before adjusting your rate upward or downwards, a significant amount of data is required. Take, for example, special events. You may know the date of the event in advance however, with time, an important date might be forgotten. Thus, the holding of these events may be indicated in a yield management system in order to avoid mismanaging a potential establishment opportunity. Additionally, the PMS system is equipped with a yield management module, which will be able to interpret a large amount of data concerning each type of available accommodation to adjust you rates accordingly and not as a whole. This is of a significant importance as poor handling of yield management, similar to a wrong interpretation of the data, could lead to a loss of profits and/or further limit your income opportunities.
For you to fully take advantage of yield management for your establishment, a high-performance PMS system is essential. With such software, you can accumulate a significant amount of data and process them using a single system, with the intention of fluctuating your rates in the most effective fashion.
A PMS system for statistical analysis
Statistical and analytical reports play a crucial role in improving the performance and efficiency of your establishment. A PMS system allows you to accurately read analyses for each segment of your customers, allowing you to effortlessly adapt or create new establishment strategies for each customer segment. Your PMS system also gives you an opportunity to assess your operating results much more conveniently. Indicators such as the REVCAP, the REVPAR, the ADR and occupancy rates are easily obtained daily and do not require manual calculations. Furthermore, your comparative statistics for the previous year measured against your projected activity allows you to make appropriate decisions to secure a steady growth in your performance. For example, if you are aware that your occupancy will decline daily for the upcoming week, you can compare this decline to the occupancy during the same week of the previous year, and use the various tools of the PMS system to counter the possible negative outcomes. In fact, you can adjust your rates via your yield management module or even determine which customer segment you wish to focus on.
The time of booking is also a data that can be provided by your PMS system and it can be particularly interesting to analyze. This data indicates how much time in advance, on average, your customers book their stay, as well as the precise dates where your customers are more likely to book their stay. You also have access to other valuable information such as the most popular hours for bookings. The statistics obtained allows the other departments in your establishment, such as sales or marketing, to adjust their strategies and make new campaigns targeting certain customers segment. These statistics are also of use when targeting consumers according to their purchasing power. This is done by analyzing some selected data which represents the average spending conducted in your establishment.
Additional functions contained in certain hotel management software, such as marketing statistics will also be of a significant help. These statistics use your database in order to generate a contact list, which you can use for promotional or marketing purposes, or for other purposes which you deem necessary. This way, you no longer need to create these contact lists manually which can be very time-consuming. Instead, your PMS system does this task for you.
With the advanced functions of the PMS system and its abilities to analyze statistics within your reach, it becomes easy to adjust your strategy while increasing your establishment efficiency and competitiveness in the market.
A PMS System for room assignments
Manually assigning rooms in an efficient and optimal manner is never an easy task. The number of rooms available in your establishment is directly proportionate to the attention you put on carefully assigning these rooms. Without a PMS system, this task can quickly become an unsolvable puzzle.
Through the PMS System’s ability to assign rooms automatically, you ensure your occupancy reaches its full potential, as this software analyzes the available rooms depending on the dates and organizes room assignment in order for you to avoid “gaps” which would be conflicting with your customers’ lengths of stays. Additionally, your PMS System guarantees your customers will remain in the same room for the complete length of their stay.
The automatic room assignment will give you the opportunity to optimize your establishment’ availability while maintaining all the amenities your clients desire.
A PMS System for quick billing and efficient bookkeeping
Your PMS System, unlike an Excel spreadsheet, allows you to edit bills very quickly when the time comes for your customers to check out. In just a few clicks, you make the transaction from the PMS System and immediately send the bill to the customer’s email address. This way the PMS System also gives you the opportunity to keep track of all the components of your customer’s bill. Therefore, you can recover and precisely find any bill in the event of a customer requesting their bill again. It will be effortless for you to provide their bill to any client by e-mail at any time.
The PMS System is also equipped with an accounting charter. With this module, all your incomes will be organized according to their type. The only thing you have left to do is to pass on this data to the accounting software and all your accounting requirements will be met. To improve your efficiency, you can also connect your accounting software to your PMS System.
The PMS System’s connectivity as a productivity ally
PMS Systems can often be connected to other software. When connected, the data collected by your PMS System can be traded with other software. Whether it concerns online booking, customer relationship management, customer check in via self-service kiosks or even keeping track of your reputation, the PMS System’s connectivity is a vital feature.
Connectivity is indeed an aspect to consider, as it allows you to use tools and software you are familiar with, and not solely those offered by your own PMS provider. You also have the opportunity to run other high-performance software for very specific aspects of the customer relationship that the PMS System does not handle; this is a significant asset to consider.
A PMS System for automation
No matter how well organized and well-kept your Excel spreadsheet may be, it is not automated. With a good PMS System, many of your daily tasks can be automated, thus freeing some valuable time which you can allocate to manage other aspects of your establishment. When an online booking is made, for example, the booking engine requires access to an up-to-date inventory, and your PMS System takes care of this task automatically. The automatic room assignment is also an aspect to consider, as the PMS System solves the problem of choosing which room is available for a customer and for how long it is so.
Other advantages to automation deserve attention as well, such as automatic check-in and check-out, via self-services kiosks in certain hotels. With a good PMS System, you are freed from such tasks and you can invest