Some hotel chains envision the Property Management Systems (PMS) to focus on its core functionalities (e.g., checkin/out and main operations), using open APIs for connectivity, while others encourage a high level of fully integrated systems such as CRS, RMS and CRM, eliminating the need for additional interfaces.
NB: This is an article from h2c
As both strategies have their justification—every chain needs to go their own way—overall system performance remains dependent on the depth of integration with related systems, localization setup (e.g., including local tax and fiscal regulations), overall system cost and available staff skills. As a result, many solutions are often a compromise.
But crucially, today’s guests increasingly expect hotels to recognize and meet their needs in a more proactive way, which presents a challenge for many chains.
H2c’s Global PMS Report aims to shed more light on the current hotel management landscape via insights obtained from an online survey as well as expert interviews with hotel chains in Europe, the Middle East, North America and Asia Pacific. H2c’s research covers: (1) the hotel chains’ satisfaction level with their current PMS solution; (2) missing features and functionalities; and (3) changes required for improvement.
The impetus for this study results from the increasing amount of PMS challenges hotel chains are facing today. Lack of support is not only a key concern but also a major driver for a potential system change. While h2c’s study results highlight the hotel chains’ requirements, the findings will also enable PMS providers to identify missing functionalities, prioritize their developments, and enhance their services.
Primary Takeaways
Market Dynamics Call for a PMS Strategy Shift
There are more chains likely to change their PMS strategy in the medium term than to retain it. The increasing demand for flexible cloud solutions with deep (especially CRM) integration capabilities has triggered a rethinking of hotel operations for the majority of hotel chains. Over the next five years, nearly three in 10 chains will change their PMS strategy. Slowly but surely, cloud technology is eliminating the painful upgrading processes of the past.
PMS Vendors Spotting Competitive Pressures
For nearly half of all chains, the pain points (e.g., inefficient processes, missing functionality) with their PMS are large enough to justify a tender process (RFP). In addition, support issues and slow technical developments further encourage initiating an RFP. The willingness to conduct a tender is significantly higher in Europe and the Middle East than in Asia Pacific and North America. Nevertheless, immediate change does not seem to be an option, due to either a lack of technical alternatives or the unawareness of opportunities.
The Most Common Pain Points
Three in 10 hotel chains experience insufficient support from their PMS vendor. Lack of support services (including slow response times, and inadequate consulting/problem-solving capability) is a major concern and has nearly twice the severity level of any other pain point. While technology deficiencies (integration, functionality and developments) present the second largest cluster of dissatisfaction, somewhat surprisingly, cost is of lesser importance to chains.
PMS Support Often Scores an Average Rating at Best
Almost six in 10 PMS vendors scored either an average or poor rating for their support services. Just about one quarter of hotel chains are satisfied with the quality of support, mainly those in North America. Three quarters of European chains expressed their strong dissatisfaction with inadequate response times (most critical issue), followed by costefficiency, flexibility and the vendor’s general problem-solving capabilities.
Required Functionality Upgrades for the Future
When asked which functionalities the PMS should focus on in the future, 58% of all chains ranked a deeper integration with their existing technology landscape as most important, followed by improved mobile functionalities (41%) and a more intuitive graphical user interface (GUI) for operations (36%). Enhanced business intelligence and personalization functionalities (e.g., custom dashboards) were requested by 34% and 33%, respectively.
