In our last post, we discussed what functions a good property management system should have. But, what’s really important is how those functions directly influence your property.
Hoteliers still using pen and paper or Excel spreadsheets are wasting time, money, and increasing stress. A good PMS system increases efficiency which eventually leads to more bookings. When you let your property management system work for you, you’ll save money and increase productivity.
Here are the five ways a PMS increases productivity and saves money.
1. Work From Anywhere
Software as a service (SaaS) products have made it possible for people to work from almost anywhere. Gone are the days where you have to be standing at your front desk to know the status of your property. Now that software has migrated to the cloud, it’s easier for you as a property owner to be in-the-know wherever you are.
While this may cause some to feel the need to “always be on”, it can help increase efficiency because you’re able to make decisions faster. You can streamline decisions because you always know the important information. Use that information to guide your rate, yield, and distribution strategy. You’ll spend less time playing catch up.
2. Reduce Errors
In a previous post we wrote about the dangers of using Excel to manage your property. A PMS should eliminate the need for you to use Excel to manage day-to-day reservations and guest information. 90% of spreadsheets contain errors according to PricewaterhouseCoopers. When you rely on spreadsheets to manage your property, expect to see errors. Errors are frustrating and take a lot of time to sort out. A PMS will reduce human error and help you focus on what matters.
PMS produced reports are more accurate and easier to read than self-reported Excel sheets. Reduce silly mistakes and manual errors and let technology do the work.
3. Increase Results without Increasing Staff
Technology has allowed all types of business owners to increase their productivity. Previously, properties would add staff to increase productivity and results. Property owners benefit from good property management systems because they automate manual processes and cut down on administrative work. Now you don’t need to employ as many people to manage the front desk. Your system can do a lot of work for you. Now all you have to do is manage rates and sort out availability because the rest of the information all lives in one system.
A PMS operates as an all-in-one solution because it becomes the center and heart of your business. With functionality such as a central pool of inventory, you’ll only have to manage your rooms on one system.
4. Reduce OTA Dependency
Online travel agencies are great because they market your property for you. For any property type, an OTA can drastically improve your occupancy and boost revenue. But, it’s well known that they take a significant piece of the pie. A property management system coupled with a booking engine can help you optimize your direct booking process. And in return, you will effectively decrease your reliance on OTAs. Now you have more time to focus on marketing your property through other channels.
Even though you’ll be able to decrease OTA dependency, you’ll also be able to better manage your OTA inventory. A PMS has the ability to connect to channel managers and booking engines so that you only have one inventory management system instead of ten.
5. Increase Direct Bookings
Speaking of other marketing channels, here are a few that come to mind: social media, content marketing, and guest blogging. There are many ways to increase the exposure of your property. When you can allocate more time to marketing efforts, you consequently decrease your OTA dependence.
While you reduce your dependence on OTAs, you increase your potential to gain direct bookings. When you have more time to focus on your distribution strategy, there are many new areas you can focus on. A few of our favorites from our 8 Ways to Dominate Your Direct Bookings are below:
- Targeted discounts
- Customer loyalty programs
- Online reviews and comments
The Results of a Good PMS
Cloudbeds offers a property management system that does all of these things and more. We save our customers time and money and we have the numbers to prove it.
Our customers increase their RevPar by up to 15%. They also save up to 8 hours per week, which lets them focus on more meaningful tasks. When you spend less time doing busywork and more time managing rates, availability, and marketing, you make more money. Here’s how working with a good PMS like myfrontdesk can give you the ability to win.
Technology continues to improve people’s lives and businesses. Property management systems help property owners manage the huge influx of information they receive daily. With the right technology, you’ll be more organized, less prone to errors, and enjoy a new sense of clarity.