Topic the application of property management system in hospitality industry

= Red Roof Inn Hotel Franchise with Cloudbeds Property Management System.... Red Roof Inn: overcoming fragmentation with Cloudbeds Property Management System .... From reservations to re

TOPIC: THE APPLICATION OF PROPERTY MANAGEMENT SYSTEM

FOREIGN TRADE UNIVERSITY

MIDTERM ESSAY

IN HOSPITALITY INDUSTRY

Class code: TINE207(2324 - 2).1 Instructor: Tran Trong Huy

Group 2

No Name Student ID

1 |Lé Minh Hiéu 2112920024

2 |Pham Châu Anh 2313920003

3 |Nguyén An Khanh 2313920012

4 |Trinh Ngoc Tram 2312920019

5 |Nguyén Doan Phuong Linh 2312920014

Hanoi, March 10% 2024

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INTRODUCTION The hospitality industry thrives on a seamless guest experience, from the initial reservation to the final check-out This orchestration of comfort and efficiency relies heavily on a powerful tool: the PMS (Property Management System) More than just software, a PMS acts as the central nervous system of a hotel, streamlining operations, optimizing resources, and ultimately driving profitability

In the bygone days, hotel management involved a symphony of paper ledgers, manual calculations, and separate filing systems Reservations were recorded in logbooks, room rates hand-adjusted on printed price sheets, and guest information scattered across index cards

The advent of PMS technology revolutionized hotel operations Today's PMS serves as a comprehensive platform, integrating a multitude of critical functions into a single, unified system By automating tasks, centralizing data, and facilitating communication, a PMS empowers hotels to deliver exceptional guest experiences while maximizing their bottom line

This essay delves into the multifaceted application of the PMS in hotels We will explore how these systems handle essential tasks like reservation management, front desk operations, and guest communication through a real-life study of an Inn called “Red roof’

| Theoretical Foundation

1.1 Definition

In the hotel industry, PMS stands for Property Management System It's software that acts as the central nervous system of a hotel's operations, streamlining and automating many tasks

1.2 From reservations to revenue: the functionality of Property Management System

A Property Management System (PMS) acts as the central nervous system for a hotel, streamlining operations and ensuring a smooth guest experience Here's a glimpse into how a PMS orchestrates various functions:

Centralized Reservations: Imagine a single platform receiving reservation requests from all sources — the hotel website, online travel agencies, or even phone calls The PMS seamlessly verifies real-time availability across room types and confirms reservations Guest information, room details, rates, and stay dates are all meticulously stored within the system, creating a central record for easy access

Seamless Guest Check-In/Out: When guests arrive, the front desk staff leverages the PMS to verify reservations and access guest information The check-in process is further simplified as the PMS facilitates registration, captures payment details, and generates bills Similarly, during check-out, the system helps settle bills, print receipts, and update room statuses, ensuring housekeeping is aware of vacancies

Optimizing Housekeeping and Maintenance: The PMS can assign cleaning tasks

to specific rooms based on their occupancy status, ensuring housekeeping staff have a clear roadmap Once a room is cleaned, the staff can update the status within the system, making it available for new arrivals

Personalized Guest Experience: The PMS acts as a valuable guest data repository, storing information like contact details, preferences, and past stay history This empowers hotels to personalize the guest experience Hotels can leverage this guest data for targeted promotions and loyalty programs, fostering stronger relationships with their patrons

Data-Driven Decision Making: PMS is a data powerhouse that troves of information that allows hoteliers to identify trends, optimize pricing strategies, and make informed decisions about staffing, resource allocation, and marketing efforts By leveraging the insights gleaned from the PMS, hotels can continuously improve their operations and elevate the guest experience

Overall, a PMS can also be seen as a central hub that connects all these functions, allowing for a smooth flow of information and streamlined operations Many PMS systems also offer additional features like integrations with point-of-sale systems, guest self-service kiosks, and marketing tools

1.3 Some Property Management System examples around the world

1.3.1 OPERA

OPERA is a cloud-based PMS founded by Oracle Company that enables hotels

to manage their reservations, rates, inventory, guest profiles, billing, and reporting With 80% of the world’s top hotel groups relying on Oracle Hospitality software solutions, it comes as no Surprise to learn that OPERA is a proven and reliable solution that has been supporting the hospitality industry for decades

This system is designed to use a centralized database for multiple PMS installations and organizations from the front desk, reservation, housekeeping, F&B department, sales and business department OPERA is also connected with some third- party platforms and applications such as online travel agents (OTAs), revenue management systems and payment gateways

1.3.2 MEWS

Cloud-native, Mews PMS is an innovative hospitality management system founded in 2012 that enables automation to boost revenue and empower remarkable guest experiences Only in one complete ecosystem, Mews Hospitality Clouds can provide solutions and advanced technology including fast and automated reservation assignments, and rates management for maximum profit

This system has been used by over 5000 hotels from the beginning as The Emble Hotel, now in all 85 different countries as well as recruiting more than 1000 people 1.3.3 SHIJI HMS

SHIJI HMS is a hotel PMS founded by the Shiji Group Company, a Chinese IT development company This system is well-known for bringing a complete and modern technology stack to the hospitality industry which is secure and ready for the future During its 20-year operation, Shiji has provided many hotels with cloud and mobile PMS, ancillary services management, payment solutions, and data management This system uses API-first infrastructure to control the data, connect to third-party platforms and adjust the system automatically to the needs of users

Nowadays, Shiji currently offers its services to more than 91,000 hotels, 600,000 retail outlets, and 200,000 restaurants

Il Advantages and disadvantages of PMS

2.1 Advantages

PMS have revolutionized hotel management by streamlining operations and enhancing overall efficiency

Firstly, PMS builds the seamless integration of various hotel functions, from reservation and check-in to paying and reporting A PMS will help hotels manage their room inventory in real-time, ensuring optimal occupancy and also maximizing revenue

In addition, updating rates and inventories can now be done with one click across all channels, which means you can sell more rooms through channel manager and increase your online visibility

Secondly, such daily tasks such as check-in, check-out processes, housekeeping, channel connecting, revenue tracking, email confirmations, etc will be automated by PMS, allowing the staff to not only avoid manual errors but also spend more time focusing on guests' experience It can be said that PMS will improve internal operations, reduce labor-intensive duties, and get the job done with minimum overhead

Besides, a PMS can store all customers’ data, including guests preferences,

enhancing guest satisfaction and fostering customers’ loyalty through personalized services With centralized data, staff can access guest information easily and promptly, everywhere, everytime, creating more personalized and human services, thereby improving your relationship and rapport

In today’s digital age, online bookings play a crucial role in a hotel’s success

Integration between PMS and various distribution channels such as Travel Agency, GDS

or IDS, will manage reservations efficiently and attract a diverse range of guests Moreover, online booking will also help the hotels to provide a smoother check in, when the front desk will be able to handle both individual guests and tour bus rushes with ease, ensuring that each guest walks to his or her room with a positive first impression of the hotel

2.2 Disadvantages

One primary concern is the initial cost of acquiring and implementing a PMS, which can be substantial for smaller establishments The complexity of some PMS solutions may require extensive training for hotel staff, causing disruptions during the transition period

Integration issues with existing hotel systems or third-party applications can also pose challenges Incompatibility problems may lead to data inconsistencies or operational inefficiencies Furthermore, hotels relying heavily on technology may face a higher risk

of system failures or technical glitches, impacting day-to-day operations and guest satisfaction

Data security remains a critical issue, as the centralization of sensitive information

in a PMS makes hotels susceptible to cyber threats Without robust cybersecurity measures, the risk of data breaches and unauthorized access increases, potentially harming both the hotel's reputation and guest trust

Customization limitations are another drawback, as some PMS solutions may not adapt to unique hotel requirements or workflows This lack of flexibility could hinder the hotel's ability to tailor its services effectively

In summary, while PMS can significantly enhance hotel operations, careful consideration of potential drawbacks, such as high initial costs, integration challenges, data security concerns, and customization limitations, is crucial for a successful implementation and long-term satisfaction Hotels must strike a balance between leveraging technology for efficiency and maintaining a personalized approach

Ill Red Roof Inn Hotel Franchise with Cloudbeds Property Management System 3.1 The rise of Red Roof Inn and the challenge of fragmentation

Red Roof Inn, the recognizable name synonymous with budget-friendly stays across the United States, boasts a history that mirrors the evolution of the hospitality industry itself Its journey began in 1973, not as a sprawling franchise, but as a single motel in Columbus, Ohio, founded by businessman James R Trueman Trueman, recognizing a growing demand for affordable yet comfortable lodging, aimed to provide travelers with a clean, convenient, and cost-effective alternative to traditional hotels The early days saw Red Roof Inn carve its niche in the emerging budget hotel market Trueman's vision focused on offering essential amenities at competitive prices, catering to a specific segment of travelers seeking value over luxury This focus on affordability, coupled with a consistent brand experience, proved successful, and the single motel soon expanded to encompass additional locations

However, as Red Roof Inn grew from a single location to a nationwide franchise exceeding 600 locations, a new challenge emerged: a fragmented technology landscape Franchising inherently involves a network of independent operators managing individual locations This decentralized structure can make it difficult to maintain technological consistency across the entire chain

3.2 The problem of fragmentation: siloed data and inconsistent operations

In the early years, Red Roof Inn found itself facing a growing challenge as its network of franchised locations expanded across the United States as they relied on a patchwork of unconnected systems to manage various aspects of its operations Individual franchises utilized various unconnected systems for reservations, guest management, and other operations, leading to data silos, data inconsistencies, and potential inconsistencies in the guest experience

Managing a multitude of unconnected systems proved to be a burden, leading to inefficiencies like time-consuming tasks, double bookings, and data inconsistencies This, in turn, resulted in inconsistent guest experiences across different franchises, as procedures and service levels varied based on individual software utilization Furthermore, the lack of a centralized data repository hindered their ability to gain valuable insights into guest preferences, track performance across locations, and make data-driven decisions for improvement Addressing this fragmented technology landscape would become crucial for Red Roof Inn to maintain its competitive edge and ensure a consistent guest experience across its growing network of franchises The future

of Red Roof Inn hinged on finding solutions that would streamline operations, unify data, and ultimately, strengthen its position as a leader in the budget hotel market 3.3 Red Roof Inn: overcoming fragmentation with Cloudbeds Property Management System

3.3.1 Cloudbeds Property Management System: a centralized solution

For a solution that can combat the fragmentation that Red Roof Inn is going through at the beginning, we sought out a partnership between Red Roof Inn and Cloudbeds, a cloud-based PMS will lead to promising results Through this partnership, Red Roof Inn will need to implement a standardized system, which is Cloudbeds, across all franchises For the reason why it is crucial for this partnership to happen, Cloudbeds offered several key features that addressed Red Roof Inn's specific needs

First of all, Cloudbeds addressed the core issue of a fragmented technology landscape that Red Roof Inn is facing by providing a centralized platform This unified system streamlined essential operations like reservations, guest management, housekeeping, and revenue management By eliminating data silos, Cloudbeds facilitated comprehensive reporting and analysis, enabling Red Roof Inn to gain valuable insights from all locations Additionally, standardized procedures ensured consistency across franchises, fostering a seamless guest experience regardless of the specific location

Furthermore, Cloudbeds offered improved functionality through automation tools for guest booking, check-in/out, housekeeping assignments, and revenue management This automation not only enhanced operational efficiency but also freed up staff time for guest interaction and other value-added activities The open API ensured compatibility with existing systems and allowed for further customization with third-party tools, catering to specific needs Mobile accessibility provided staff with the flexibility to access and manage information on the go, further enhancing responsiveness and efficiency To ensure a smooth transition, Cloudbeds offered dedicated support to franchisees, providing ongoing training and assistance throughout the implementation process This comprehensive approach empowered franchises to maximize the benefits

of the new system and contribute to the overall success of the partnership

3.3.2 Results: a transformation across the board

We expect the partnership to yield the following outcomes Firstly, the partnership significantly transforme operational efficiency Helping franchisees to reduce at least 20% reduction in administrative tasks, freeing up valuable staff time This will allow them to shift their focus towards guest service, contributing to a more positive and personalized experience for each visitor Additionally, standardized reporting eliminated data discrepancies, providing Red Roof Inn with accurate and insightful information for strategic decision-making This will enable them to optimize