Property Management System in the Hospitality Industry - Case Study Example

PROPERTY MANAGEMENT SYSTEM IN HOSPITALITY INDUSTRY EXECUTIVE SUMMARY AutoClerk and Lodgical Solution is a Property Management System (PMS) company that has been serving hoteliers since the 1980′s. the software is user friendly is fast and easy to learn and use. Silverbyte Systems Company provides hotel management solutions to the hotel and hospitality industry since 1990 with hundreds of installations across the world through its Optima Line of Hotel Management Software. MICROS provide central reservation and property management systems to hotels worldwide. Autoclerk has a multi-level security system while the Silverbyte and Micros do not have a similar security system. While Silverbyte and Micros property management systems do provide seamless and end-to-end solution integration respectively, the Autoclerk does not. Silverbyte solutions use a window based management solutions, Autoclerk and Micros do not use window-based software. Silverbyte provides regular updates and upgrade to their property management solutions and the Autoclerk and Micros do not provide. Finally both are user friendly. Recommendation From the comparisons of these three softwares; Autoclerk, Silverbyte and Micros property management systems, would recommend the Silverbyte property management solution, because it is easy to use and friendly. When you look at its website the information provided is excellent and is better than that of Autoclerk and Micros. Its software solutions are integrated, using a single image open database, and would be integrated into windows, which means that the hotel would not have to buy new hardware and software, because the Silverbyte software solution could be integrated directly into the existing hardware and softwares of the hotel. The major consideration that made us to choose this company was it’s ability to update and upgrade its systems, that way if the hotel invests in this property management system it will safe the company from purchasing now and again making it cheaper in the long run. INTRODUCTION Electronic Commerce (EC) is where business transactions involving consumers purchasing and exchanging goods or services, business entities purchasing goods or services, provision of products and services to employees through the Internet. (Efraim et al 2001) The Internet has emerged as an important tool in distributing goods and services across the globe. E-commerce has profoundly changed the way business activities are carried out worldwide it has benefited varies economies by enabling quick distribution of products, services and information. The adaptation of E-commerce in the hospitality industry, it has revolutionized the way in which consumers are utilizing information acquired online to make decisions especially to those consumers who take frequent vacations of shorter duration, and take less time between choosing and consuming a tourism product. The E-commerce is also creating new ways to satisfy consumer needs as it provides for information of the entire tourism value chain resulting in numerous value-generating strategies and linking hotels operations across the world. (Sweet 2001) Tourism is a global movement that has a positive impact on the hospitality industry and tourism sectors in which the industries information, communications, services and products needs to be streamlined to leap the benefits of tourism. Therefore, the hospitality industry needs to adapt the use of E-commerce, in order to share information to boost the industry and the information should readily be available and easily accessed on-line by all participants so that they could make informed choices and reduce the time the consumer searchers for services and products on offer across the hospitality industry. (Patthanid et al 2005) The manual operation management of the hospitality industry is inefficient affecting the daily activities especially the running of a hotel or a chain of hotels has a negative impact on the performance of the industry, guest service, products and revenues collected. The manual property management system functional design and orga­nizational structure favors only those hotels that perform locally and largely depend on walk in guests. It fosters efficiencies within such hotel’s department s but is weak in respect to coordination between hotel departments operating on a large scale and largely depends on tourists. The hospitality industry is a kind of business that requires an extraordinary degree of interdependence between varies department in the industry in order to provide high-quality guest services. The introduction of property management systems as shifted the focus from manual system to virtual management, which is more effective and safe time and reduces the cost of operation besides reaching the intended consumers of hospitality industry. The property management system introduced online hotel reservations, which allowed the customers to make reservation online. This raises concerns about their privacy therefore it is important that hoteliers meet the expectation of consumers by providing services and products as promised on the hotel website. Therefore, the functionality of the website, the accuracy of the information content, hotel rates, and services provided should be accurate and be provide on real time basis through property management systems. (Morgan and Hunt 1994 p. 23) According to Okumus the scenario of adaptation of E-commerce in the hospitality industry includes marketing strategies and tactics coupled with information technology solutions that will maximize the web presence of hotels online. The Internet and E-commerce has lead hospitality industry managers to expand their hotels firms’ business ambitions by adopting new behavior using the global power of the Internet. Today the Internet is the ultimate marketing tool for hospitality industry and the important information that hotel marketing departments use to expand their business through it. (Okumus 2001) Autoclerk.com AutoClerk and Lodgical Solution is a Property Management System (PMS) company that has been serving hoteliers since the 1980′s. the software is user friendly is fast and easy to learn and use. It has the functionality to achieve proper efficiency resulting in higher profits whether in dealing with gift certificates, splitting checks or reporting tips. It has a multiple levels security control system built into the system to help control fraud. It uses ResOnTheWeb service that connects hotel’s proprietary website to AutoClerk’s Property Management System at the hotel. The Advantage of ResOnTheWeb’s the connection between the hotel’s website is real-time and is two-way. It can use the hotel’s logo, graphics, wallpaper, and room descriptions through its customization application, which include email letters of guest confirmation. It is Global System Distribution (GDS) connectivity is friendly and does not conflict with other third party vendors. It offers Search Engine Optimization (SEO) for hotel web site optimization and can work hand in hand with the hotel’s webmaster or SEO experts. Lodgical Solution Web Booking Engine and 2-Way is a web-booking engine that acts as link between the hotel’s website and Lodgical Solution located on site. It has a two-way interface system that simplifies operations by allowing one entry point in for all the rates and vacancies status information. It uses ADR and RevPar to improve occupancy through effective guest emails, receive immediate feedback from guests. The reservation information is collected automatically and triggers a series of emails confirming the reservation and enhancing the guest experience. Installation is done on-line through a coordinator who guides the buyer through the installation process step-by-step, ensuring a hassle-free conversion. The company provides all the training required, taking time to demonstrate how to meet the special needs of any operations, provide a variety of interactive online tutorials and additional online supplemental training at any time with 24/7 Support Team. (Autoclerk Property Management Solution) Silverbyte.com Silverbyte Systems Company provides hotel management solutions to the hotel and hospitality industry since 1990 with hundreds of installations across the world through its Optima Line of Hotel Management Software. The company provides seamless integration of its products with the front and back office management for hotel and hotel chain organization enterprise wide solution. Its software solutions are integrated, using a single image open database, allowing full access to data access across all hotel departments and obviates the need for expensive, third party 'add on' programs that can never provide the seamless integration of single source applications. It is a Windows based Hotel Management Systems and is computerized guarantee improvements, guest service and real time management decision making. During installation, the company customizes the system parameters in order to reach maximum correspondence between the hotel’s and Silverbyte’s solutions.  The company provides training to key users and end users and allows easy access to the hotels; the property management system is installed on the interface station with a dedicated direct telephone line or available access through Internet. Silverbyte provides periodic patches updates or upgrades to the System. (Silverbyte Property Management System)  Micros.com MICROS provide central reservation and property management systems to hotels worldwide. The company provides a wide range of scalable and modular property management systems and central solutions for effective hotel management. The company provides integrated end-to-end solutions that comprises of back and front office that is designed to improve customer service, products and streamline workflows. It also offers the flexibility and is easy-to-install system offers a wide range of configuration options and combines user-friendly modules for customer relationship management, catering management, and materials control, online booking and integrated solution. (micros property management solution) COMPARISON OF AUTOCLERK, SILVERBYTE AND MICROS PROPERTY MANAGEMENT SYSTEMS Autoclerk has a multi-level security system while the Silverbyte and Micros do not have a similar security system. While Silverbyte and Micros property management systems do provide seamless and end-to-end solution integration respectively, the Autoclerk does not. Silverbyte solutions use a window based management solutions, Autoclerk and Micros do not use window-based software. Silverbyte provides regular updates and upgrade to their property management solutions and the Autoclerk and Micros do not provide. Finally both are user friendly. Recommendation According to O’connor, the main advantages that the internet provides as a marketing tool to the hospitality industry and tourism are: the global tourism market E-commerce enables the hospitality industry to reaches the customers through their web sites which are not affected by capacity constraints, and the possibility of two way makes it more attractive by communication offered by the internet. The internet and its inherent interactivity empower people to find information quickly and precisely on any destination or recreation that is capturing their interest. The internet has also presented the travel and tourism sector with the possibility of both connecting as well as transacting with global customers on a real time basis. The growth in the adoption of e-commerce in the hospitality sector has been facilitated by a number of factors that include technological advancements, greater internet penetration among households, heightened competition in the travel and tourism sector. (O’connor 1999) From the comparisons above the Silverbyte property management solution stands out because it is easy to use and friendly. When you look at its website the information provided is excellent and is better than that of Autoclerk and Micros. Its software solutions are integrated, using a single image open database, and would be integrated into windows, which means that the hotel would not have to buy new hardware and software, because the Silverbyte software solution could be integrated directly into the existing hardware and softwares of the hotel. The major consideration that made us to choose this company was it’s ability to update and upgrade its systems, that way if the hotel invests in this property management system it will safe the company from purchasing now and again making it cheaper in the long run. CONCLUSION The use of e-commerce has undoubtedly created a radical transformation in the tourism industry across the world. With increasing levels of adoption among potential consumers and service providers, the marketing of hotels and other related services have fundamentally changed in the past. Greater choice, convenience, and price transparency have immensely influenced consumers to shift from past practices towards the adoption of internet based services. On the other hand, service providers have been compelled to adopt e-commerce to match this transformation in consumer preferences. Therefore, is important that the company invests in a good property management system that will enable it to reach the potential costumers worldwide, the tourism industry is the major play in the hotel industry, it is proper that the hotel provide a good website that as a good management system. The Silverbyte solution is the beast for the hotel because it can be updated and upgraded saving costs at the end of the day. Reference list Autoclerk property management solution. Read More