How Independent Hotels Can Tackle Challenges With Cloud PMS

How Independent Hotels Can Tackle Challenges With Right Cloud PMS

We will be discussing how independent hotels can reduce hotel operating costs with a cloud-based hotel management system. But since lowering costs directly relates to profits, we will also be looking into how to increase hotel revenue with a PMS.

BUT FIRST THINGS FIRST…

The efficacy of a property management system is largely a function of how the hotelier uses the system to suit the needs of the type of property he owns.
Simply put, the needs of one hotel is different from every other. For successfully leveraging your PMS, you need to learn to use its features to your benefit- regardless of whether you are a chain, a boutique hotel, a guest house or a backpackers’ hostel.

Before we get started with understanding how independent hotels can make the most of a cloud-based PMS, I’m going to take a slight detour, to give you a deeper context.

It’s A Win-Win World

The hospitality industry is a mosaic of different types of accommodations. And as a hotelier, understanding these various types is crucial to your business. This is because, each of these property types comes with its own advantages and disadvantages. Where one falls short, the others come in. Meaning, there is place for every type of accommodation in the industry, but that’s not to say that there is no competition! When you know the pros and cons of every other type of accommodation, you are in a better position to see how you can cash in on opportunities. And no other property type has as much flexibility in doing so, as the independent properties do.

Here’s How Independent Properties Take The Lead

Independent hotels have an advantage over chains when it comes to the following aspects:

  • Undivided, unifocal attention
  • Time-sensitive decisions: Be it strategic or tactical
  • Define their own “it” factor
  • Better equipped to handle customization/personalization
  • Higher chances of staff empowerment & guest-centricity
  • More liberty in resource allocation
  • Flexible revenue management strategy
  • Fewer decision makers or stakeholders
  • No obligation to abide by “brand guidelines”

These are all factors that can add immense value to independent properties. But like we already discussed, every property type has its pros and cons, and independent hotels are no exception to this.

The Inevitable Obstacles For Independent Properties

  • Reputation is at stake- every day with every guest
  • Minimal scope for increasing wallet shares of customer
  • Constant pressure to build awareness & visibility
  • No luxury of relying on “brand image” to attract guests
  • Loyalty programs are practically impractical
  • Increased expenditure on OTAs: OTAs tend to charge independent properties more commission, owing to their “independent” status (read: “unbranded” status)
  • Higher risk of revenue loss as the concept of “rooms” is perishable, by definition

There are, evidently, other challenges faced by independent properties. But those are functions of the type of independent property- business hotel, beach-facing leisure hotel, a family-run inn on a mountain, etc. We’ll save that discussion for another day.

For now, let’s get to the crux of this blogpost. Can these challenges faced by independent hotels be tackled by a cloud-based hotel management system?

A big, resounding, “YES!”

Read rest of the article at Hotelogix

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