Ms. Stehle

Technology

Next-Generation Property Management Solutions Deliver Results for Hotels and Guests

By Tina Stehle, Senior Vice President & General Manager, Agilysys Hospitality Solutions Group

Property management systems have come a long way since hotels began implementing them in the 1970's and 1980's. At that time, the primary goal of a PMS was to automate basic processes such as housekeeping and reservations. Eventually, property management solutions began to include functionality that enhanced efficiency and profitability, such as management reporting and travel agency accounting. During the last decade, guest service technology has played an increasingly important role in property management solutions, many of which address everything from itinerary planning to spa management.

Now, as we approach 2010, a huge transformation is taking place. New architecture is making PMS integration with other systems easier than ever, and guest-centric functionality is moving property management solutions from static entities that merely track reservations and perform check-in and check-out to dynamic systems that enable hoteliers to predict guest behavior and realize a competitive advantage.

SOA provides easy integration

Services-Oriented Architecture (SOA) is playing a major role in the evolution of property management systems. SOA is a way of building technology solutions that uses modularly assembled and reconfigurable components in an open approach, unlike the traditional IT approach that pieced together a collection of hardware, software and networking in a rigidly integrated manner.

A property management system based on services-oriented architecture enables hotels to add new components quickly and easily. SOA also takes integration to levels not previously attainable by enabling one system to request services of other systems without executing program calls. In other words, integration is easier because dissimilar systems no longer need intrinsic knowledge of other systems in order to interact with them. SOA provides a 'data bridge' between incompatible technologies.

SOA provides a highly scalable and flexible property management solution that enables hotels of all sizes as well as multi-property locations to react quickly to new ways of doing business. This modern architecture also enables custom user interfaces and processes to be created around data and logic that reside on multiple systems.

There are many benefits of SOA, including enhanced reliability, reduction of hardware acquisition costs and the elimination of local servers. It also accelerates the movement to standards-based server and application consolidation and creates a 'self-healing' infrastructure that reduces management costs.

Yet, perhaps the greatest benefit of the SOA approach is that it enables property management functionality to be tailored to a hotel's business processes and not the other way around. This type of architecture is the future of property management solutions and will allow hotels to leverage new technology for many years to come.

Guest-centric functionality is key

Beyond services-oriented architecture, the most notable characteristic of next-generation property management systems is guest-centric functionality. These new solutions incorporate intuitive features that predict guest preferences and make recommendations based on previous patterns and purchasing behavior.

Next-generation property management solutions enable hotels to set up guest profiles - including history, past itineraries, interests and preferences - and extract that information to provide highly personalized service. This data also can be shared among properties, so that guests receive the same VIP attention regardless of which location they visit.

Another hallmark of next-generation property management solutions is their ability to make suggestions based on guest patterns. For example, if a guest books a king non-smoking room, the system will suggest that type of room the next time the guest makes a reservation. What's more, properties will see new revenue streams as the system up-sells guests based on previous purchasing behavior. For example, if a guest had a massage during her last visit, the system might suggest a spa package that includes not only a massage but also a manicure and facial the next time she books a room.

As competition for guests intensifies, maximizing guest data is becoming more important in retaining guests - and increasing revenues and profitability. In fact, having a PMS tied to a rich historical database of guest preferences and purchasing behavior is critical to success.

Hotels that capture guest history and preferences and then use that information to market their services and amenities will see guest satisfaction soar. Offers can be created around special occasions, such as birthdays and anniversaries; or, packages can be created that incorporate specific guest interests, such as dining, golf, spa visits and shows.

Guest-centric property management systems also encourage repeat business, because properties can use the guest profile data to strengthen their loyalty programs. For example, a guest that typically dines at one of the hotel's restaurants might receive a special VIP offer for a free dinner for two when booking a three-night stay.

Technology that delivers

Guests and hoteliers alike will reap the rewards of next-generation property management systems. Sophisticated guests increasingly have come to expect highly personalized service, and these innovative new solutions deliver the results they want. Hotels benefit from reliable and scalable systems that integrate easily with other applications and offer flexible configuration.

Now, more than ever, hotels must make technology purchases that position them for success. Budgets are constrained, and competition is fierce. The next-generation property management solutions offer functionality that anticipates guest demands and enables hotels to respond quickly to changing conditions. The result is enhanced profitability and more effective guest management - the bottom line for any hotel.

Tina Stehle is senior vice president & general manager of Agilysys Hospitality Solutions Group. Agilysys is a leading provider of innovative IT solutions to corporate and public-sector customers, with special expertise in select markets, including retail and hospitality. The company uses technology — including hardware, software and services — to help customers resolve their most complicated IT needs. Ms. Stehle joined Agilysys in 2004 through its acquisition of Inter-American Data, Inc. (IAD), where she served as vice president of software services. Ms. Stehle can be contacted at 800-262-3600 or tina.stehle@agilysys.com Extended Bio...

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