Do you want more hotel revenue? Best part? You can do that. You can increase your hotel’s revenue by 2x in the next 90 days. How? In this guide, I’ll tell you the 3 promising benefits PMS provides to maximize the ROI for your hospitality business.
An overview of Property management software for hotels
Traditionally, hoteliers used to scratch their heads over how to manage the time-consuming administrative tasks, which were paper intensive. This led to the rise of hotel management software like PMS.
A hotel PMS is a centralized dashboard that takes care of managing day-to-day operations such as –
- Manage multi-property reservations
- Streamlines housekeeping processes
- Rate management for OTAs
- Facilitates check-in/check-out process
- Payment processing
- Allocating rooms to guests
- Create detailed guest profiles
- Personalize the guest experience
More importantly, this hotel management system can be of different types, such as on-premises, cloud-based, and hybrid.
The best part is that you can connect the PMS with third-party systems such as a booking engine, channel manager, POS, or even a CRM. This streamlines your hotel operations and automates your routine processes.
In a nutshell, hotel PMS is like a cherry on the cake, meaning you can run your hotel operations smoothly. No matter how small or big your property is, PMS is a good fit for you to save time and enhance your guest experience.
How do you maximize a hotel’s ROI with PMS?
Hotel PMS software helps hoteliers increase their ROI which is as given below-
1.Helps in making data driven decisions
What if your hotel doesn’t invest in PMS? Then you would have no access to data. You wouldn’t know the important metrics to track such as ADR, RevPAR, and occupancy rate.
Then, how would you measure the performance of your property and fine-tune your pricing strategy?
That’s why you need hotel management software like PMS to make data-driven decisions and get a bird’s eye perspective of what’s working for you and what’s not.
With just a click of a button, you get access to detailed reports that can help you tailor your packages according to guest preferences.
Suppose you run a mid-size hotel, and you’ve kept PMS handy with you. As a revenue manager of a hotel, you’ve been asked by your hotel owner to increase revenue by 30% this season.
You’d log in to your PMS to assess the key metrics such as the Average Daily Rate.
Then, you’d compare the prices against competing hotels in your area and set the price. Also, you would evaluate the historical guest data, such as whether they go for complimentary services and add-ons such as spa treatment or late check-out facility.
Considering those factors, you would raise the prices and see whether you need to offer more cross-sells and upsells.
Additionally, if you observed that the majority of your bookings come through the hotel’s website, then you would start offering discounts to travelers who make a direct booking on your website.
This would reduce your commission cuts and help you earn more revenue. That’s how powerful it is to make data-driven decisions.
2. Helps in doing cross-sells and upsells
Upselling and cross-selling are 2 different terms but are often used interchangeably in the hospitality industry. Often, guests love spending more on add-ons if the value they get is more than the price they put in.
But how do you know which upsell or cross-sell is best for what type of guest?
GUEST A booked a standard room at your hotel and opted for spa treatment. The next time GUEST A plans their stay again, you can recommend an upgraded room option or provide a late check-in/check-out facility.
However, a hotel PMS can help you know the ins and outs of your guest behavior, which type of amenities they are interested in, or what services they demand the most.
More importantly, the property management system stores guests’ booking data, their booking history, and preferences so it can send personalized offers to guests.
For instance – if a guest booked a champagne during their previous stay, then PMS can offer a 10% discount on the same or can offer ancillary services. It adds value to a guest’s stay, making their experience more memorable.
This way, hoteliers can promote their wide range of offers such as room upgrades, or cross-sell additional offers. This saves them 50% of their time, increases their revenue and they can focus on growing their hospitality business by leaps and bounds.
3. Increases direct bookings
Another prominent benefit of hotel PMS is that it brings direct bookings for your property. However, travelers can directly book on your website when your PMS is integrated with a booking engine.
In the absence of this hotel management software, hoteliers need to rely on OTAs and third-party booking sites which cut 25-30% commission rates on each booking. Thus, you can have a smaller pie of total revenue which affects your bottom line.
Moreover, you can ask guests to make a booking through your website and receive an exclusive perk instead such as a 15% discount for travelers or an offer such as enjoying complimentary breakfast or availing a late check-out facility.
Wrapping up
No matter what the size of your property is, PMS is worth investing in as it offers several benefits, such as automating your routine processes, managing your hotel with ease, and saving money by reducing dependence on OTAs.
But the role of PMS doesn’t end here. It continues to enhance the guest experience by sending personalized offers and room upgrade options. This becomes an opportunity for you to drive more revenue for your hospitality business.
