A property management system (PMS) can save your property money in more ways than you might think. With the right PMS, you can gain more revenue without increasing your revenue per available room or average daily room rate (even though a PMS usually improves those key performance indicators as well). A PMS allows you to organize your property and create new processes that help account for lost revenue and identify potential problems. We went through and found five areas where your property can benefit from a property management system, even without realizing it.
1. Consolidate Reservations to Prevent Double Bookings
When a property transitions from using multiple reservation systems to one consolidated system, they greatly reduce the opportunity for clerical errors. It’s easy to make errors when you manage reservations from multiple extranets or a non-synchronous PMS and channel manager.
When your systems are not in-sync, you open the door for overbookings, which have obvious associated costs beyond lost room revenue. When an overbookings occur, your property has to pay for your guest’s alternative accommodation, transport costs, and they can seriously impact your reviews as well as customer lifetime value. Similarly, if someone cancels a reservation, then you want to make sure that inventory is immediately released to your distribution channels, so you don’t miss an opportunity to rebook the room. If the room goes unsold, it’s simply lost revenue.
Missing details from bookings could be costing your property money. For example, if the guest didn’t properly fill-out how many adults/children are staying in the room or if certain amenities weren’t account for, then you may end up undercharging your guests. With a consolidated system, you can easily check reservation guest details when they check-in and make the appropriate changes immediately.
2. Calculate Accurate OTA Payments with Commission Reporting
When your property receives your monthly commission invoice from an OTA, you may not know offhand how many reservations came through said OTA and their commission rate. Without that knowledge, you could end up paying for more reservations than you actually booked. Good PMS systems have commission reports, If you use Cloudbeds, all you have to do is click a few buttons to see how much money you owe an individual OTA.
If your commission report shows that you owe less than the invoice amount, you can find the discrepancy and make the necessary adjustments. Occasionally, the invoice amount will be less than what your report tells you. These cases typically happen when you extend an OTA’s reservation in house, in which case you should pay the lower invoice amount. In most cases, however, a discrepancy will indicate that the OTA has overcharged your property.
By monitoring this simple report, you can keep track of your incoming and outgoing commissions. You can save money you didn’t even know you were losing due to excessive charges.
3. Track Cash for Each Shift and Cash Drawer
On average, a property loses $1,000/year due to cash mismanagement. Even worse, most properties are totally unaware of it. A good PMS helps you manage your cash drawers to keep your property accountable for incoming and outgoing cash. Whether due to human error or malice, a cash drawer functionality within your PMS, helps you easily detect discrepancies and offers another layer of security for both your property and your staff.
This software feature helps detect any mismatches in start cash, transactions, and end of shift totals; alerting those discrepancies to managers and other employees. With this process, you will deter your staff from pocketing cash and making sure that clerical errors are identified and dealt with.
4. Automatic Reminders When You Move Reservations
It’s common practice for a guest to request a room type change or to switch their reservation dates. When this happens, your front desk staff must be acutely aware of any rate changes associated with changing room types or dates. With Cloudbeds drag and drop calendar, a pop-up automatically alerts your property’s staff of any rate changes associated with the change.
In many cases, the rate change will represent a small amount of money, but over the course of a year it can really add up. These notifications help streamline your front desk’s operations and allow your staff to make changes knowing that they are charging the correct amount for the change.
5. Catch Clerical Errors with Adjustment Reports
A good PMS system allows you to identify if and when your employees make changes to rates within a reservation off the books. Our adjustments report helps catch clerical errors such as when an employee makes an adjustment to a reservation by accident and charged the wrong price. These reports report helps you keep track of every dollar your property should have received and then identify issues in your process or staff.
Interested in learning more about how a PMS can positively impact your property?