Module 1

HOTEL TECHNOLOGY SYSTEMS

Prepared by: Winston Reyes Abletes

Lecturer

1
Introduction:

The emerging hotel technology trends are automating and simplifying many
tasks in a hospitality professional’s day-to-day life. For instance, cloud technology, big
data and artificial intelligence are indeed changing the way we live and work.

Technology is evolving at a faster pace than ever before, and this is changing
both the expectations of patrons as well as the way in which the hospitality industry
conducts its business. Some of the trends in industry are leading to great
improvements and savings for hospitality industry companies; ; while some are
changing how hotel developers plan their buildings, infrastructure, management
structure and staffing requirements.

The Technology helped reduce costs, enhance operational efficiency, and

improve services and customer experience. Both customers and businesses can
benefit from improved communication, reservations, and guest service systems.
Technology has helped tourism and hospitality industries replace expensive human
labor with technological labor. This helps reduce labor costs, but also helps avoid
customer service issues.

Learning Outcomes:

At the end of this module, students should be able to:

1. Explain hotel system
2. Explain Hotel Technology System and trends
3. Explain Property management system
4. Explain point of sales system
 Initial Activity:

Scenario!
Examine the picture below, imagine that you`ve stayed in a hotel room last summer.
Now, share your experience staying in a 5-star hotel.

1.Was it full of
excitement and fun?

2.Do they use

smartphone to open the
room and other in-room
facilities?
3.Was it fantastic?
4.What was your overall
assessment of their
services?

5.As a future manager in

the industry, will you
suggest to adopt this
technology? Why?
CONGRATULATIONS!
! You ARE HIRED!
Lesson 1
Hotel Systems
The trends in the hotel and travel industries are largely driven by two factors.
The first is consumers shifting their preferences and perspectives. This focus of the
demanding new levels of service or changed methods of delivering a satisfactory
experience. The second factor is other businesses looking to advance the industry and
increase the level of efficiency and sophistication across the board.

To stay competitive, no matter where you are in the world, you need to be
tracking both these influences. If you aren’t listening to what guests want during a
stay or how they want to be sold to, your bookings and profit will diminish. The same
applies if you are sluggish adopting new practices. Don’t let your competitors get ahead
of you because they weren’t afraid to invest in new technology or try new strategies.

General Issues
a. Ease of Use
All systems you select should appear to you to be easy to use;; that is, they
should be straightforward and obvious in their operation. This is clearly a subjective
area, but different vendors take different approaches to meet the same end. It’s
important that the system you choose matches your operating style. It must also be
fast and simple to use in an objective sense, of course, requiring the minimum of
keystrokes and responding rapidly to inputs.
b. User Security
This is usually set by defining groups of user types––front desk agent,
housekeeper, manager, and so on––with a specified list of system functions they are
allowed to perform. Individuals allowed to use the system will be assigned to one
group, but sometimes may be able to have that group’s profile modified to suit their
specific needs. Passwords are used to control access to the system in general and
all important user actions are tagged with the date and time of the action and the
user’s ID for audit purposes. It’s important to check the security setup to ensure that
it can set allow- able functions at a fine enough level to suit your needs.
c. Reports
Another issue common to all hospitality systems is reporting. Most systems
offer a wide variety of standard reports, but somehow they never seem to include just
the right combination of data for every hotel. It’s important, therefore, to think about the
key operational, analysis, and marketing reports that you need to run your property
and to see how closely the vendor’s standard offerings match your needs.

Some of the Hotel technology systems used:

(Industrial Revolution 4.0)

1. Channel Manager
A channel manager is a tool that will allow to sell all the rooms in a
connected booking sites at the same time. It will automatically update the
availability in real-time on all sites when a booking is made, when to close a
room to sale, or when you want to make bulk changes to your inventory. A
hotel distribution channel manager is an online management solution, which
allows to centralize all of the different distribution channels and manage
operations connected to them, all from the same place.

2. Booking Engine
 A website’s booking engine is the software application being used to
secure online reservations. There has been such an increase in
accommodations being booked online that even the smallest of hotels can no
longer ignore the need of an online booking engine. Travelers see it as being
more convenient, because they can make their reservation at their leisure
instead of having to wait till you’re at your desk.
Your booking engine will allow you to sell your rooms through
■ Your own website; ;
■ Third party sites like Facebook that your hotel is listed on

The booking engine can take credit card details and work with an online merchant
service or integrate with a Payment Gateway to process deposits and payments.
Instead of having it manually input online bookings, the booking engine automatically
processes them, safely storing all of the customer’s data.

The channel management software should integrate with the booking engine to have
a one view of inventory and bookings at any point in time.

3. Property Management system

A property management system (PMS) is a software application for the
operations of hospitality accommodations and commercial residential rental
properties. PMS is also used in manufacturing industries, local government
and manufacturing.
PMS provides a centralized computer system to organize, schedule and
perform the day-to-day functions and transactions involved in accommodations
businesses. Computer record keeping and PMS have increased the efficiency
of hospitality industries significantly simply by making it possible to update
and consult centralized records from multiple computers and devices. PMS
solutions have been customized for the needs of the hospitality industry to
further increase ease of operations.
Front desk system (also known as a property management system), is the
software used to automate the operations of a hotel.
It will allow you to manage the day-to-day operations of a property:
a. Process reservations (online and POS)
b. Manage guest check-ins and check-outs
c. Manage guest booking details
d. Track your inventory and rates
e. Handle front office accounting
f. Manage maintenance
g. Manage guest communications (automatic emails)
h. Front desk systems have advanced to the point that they integrate with
booking engines and channel managers.

Functions managed by a PMS include automation of many common tasks,

including:
■ Bookings ■ Point of sale (POS)
■ Check-in and check-out integration
■ Telephone systems ■ Event planning
integration ■ Food and beverage costing
■ Hotel inventory supply ■ Reporting of key
management performance indicators (KPI)
■ Security and room locks

4. Website Builder
Wikipedia’s definition:
Website builders are tools
that allow the construction
of websites without manual
code editing.
Types of website builders:
1. Offline Website
Builders. Offline
website builders are a
software programs that
is downloaded and
installed in the
computer.
2. Online website
builders are web--
based and run on the
provider’s service.
Unlike offline website
builders, you don’t need
to download or install
the software on your
computer – all you
need is a web browser
(ie. Chrome, Firefox or
Internet Explorer) and
an Internet connection.
This allows you to work
on your website from
anywhere and any
device.

5. Payment solution is
just a general term that
applies to the entire
technology needed to
accept a customer
transaction on your site.
A merchant account is a
bank account that you
hold directly with a
6
 bank. Every competitors, allowing for a
credit card more strategic approach.
payment The following are the most
involves the important features:
transfer of funds 1. Rate recommendation
to a merchant 2. Competitor information
account. Each 3. Key performance data
bank has its 4. Revenue estimations
own terms of
service for 7. Check-in/out software.
merchant The term check-in
describes the process of
accounts.

adding a new or modified

item or file to a document
6. Revenue management
library or a list to replace
system
the previous version. The
Revenue
term
management is the
practice of selling
the right room, to
the right customer,
at the right time, for
the right price, via
the right distribution
channel and a
Revenue
Management
System which
assist with each of
these aspects.
RMS software
solutions can help
to calculate ideal
room rates, allow
rates to be adjusted
quickly, provide
projections of future
revenue and profit,
and offer
information about
7
check-out describes the process of getting a version of a document or list item
in a list or library. By checking out an item or a file, a user can prevent others
from editing that content. By checking in the item, the user can allow others to
edit the content, without needing to worry about overriding changes that
others have made.

8. Marketing automation.
Marketing automation is a category of technology that allows companies to
streamline, automate, and measure marketing tasks and workflows, so they
can increase operational efficiency and grow revenue faster.

9. In-room technology amenities

The world’s most advanced hotels are getting seriously creative with them
in-room technology. Integrated entertainment centers, tablet-controlled lighting
systems, motion sensors that control heating levels—there’s a whole new
wave of advanced features making their way into the world’s most modern
hotel rooms
Assessment:
Kindly answer the following questions (5 points each). Pls. use a
separate sheet of paper

Name:Yr/sec.:Date:Score:

What is the best strategy or tactics for the business to gain profit?

What is the distinction between channel manager and booking engine?

How can revenue management system helped hotel or business

operation more effective and efficient?

What are some of the hotel features in-­room technology amenities?

What is the important of marketing automation?

 The Latest Hotel Technology trends (Industrial Revolution 4.0)

The inclusion of technology helps people decide whether a particular hotel is one
where they want to stay.

1. Keyless Entry
Keyless hotel room entry — basically using your smartphone as your
hotel room key.

Hilton – Digital Key

5. In-Room Tech
According Bashar Wali, president of Provenance Hotels
In-room technology will focus on the connectivity for the traveler’s
personal phone, tablets and computer. Guest-provided media will stream to
TVs, USB outlets will be within an arm’s length away from the bed and desk in
every guestroom. Personal technology has surpassed in-room hotel technology
to the point of no return.

6. Texting Front Desk Services or Concierge

Many hotels make their guests stay even more relaxed by allowing
them to remain in bed while they send a text message to the front desk
through their smartphone. This communication can range from asking for
more towels, or requesting a late checkout, while some might not be
comfortable talking to staff on the phone.

7. Smart Lighting and Thermostats

This technology allows guests to adjust the temperature in their rooms
with a smartphone, even when they aren’t in the building. This technology
also allows guests to dim the lights in their room remotely, which is perfect for
those planning a romantic getaway.
Another simple and effective hotel technology trend is light sensors,
where the sensors turn on when a guest enters their room and they turn off
when the guest leaves the room and senses that there hasn’t been any
motion for a while.

8. Image Exploration
3D image exploration is a piece of technology hotels use online before
their guests have even arrived. One of the biggest worries when booking a
room is wondering what the rooms will look like.
9. Recognition Technology
A facial recognition system is a technology capable of identifying or
verifying a person from a digital image or a video frame from a video source.
For example, imagine if finger print or facial recognition technology could be
used in your hotel to unlock rooms. Now consider the uses of the same
technology for check-in and check-out purposes.

Facial recognition Finger Print recognition

10. Robots. A robot is a machine, programmable by a computer capable of

carrying out a complex series of actions automatically.

11. Chabot’s and Artificial Intelligence. Chabot’s are able to understand

simple questions and provide answers almost instantaneously, taking the
burden away from customer service staff and improving the experience for
customers.

12. Virtual Reality. Virtual Reality (VR) is the use of computer technology to
create a simulated environment.

Uses computer-generated,
three-dimensional images
to create the illusion of
interaction in a real-world
environment

13. Augmented reality. Augmented reality has exploded in a similar way to

VR technology, but is even more accessible; ; typically requiring little more
than access to a smartphone and the internet.
 The Common list of Required Guest Room Amenities:
Amenities are a service or item offered to guests or placed in the guest
room, bathroom and kitchen etc. for convenience and comfort and at no extra
cost.
1. Telephone with Direct Dial 20. Electronic Safe / Locker
2. Writing Table with Chair 21. Mini Bar / Mini Fridge
3. Table Lamp 22. Tea / Coffee Maker
4. Envelopes 23. Wardrobe
5. Letter Head with Pen 24. Cloth Hangers
6. High Speed Wireless 25. Ironing Board
Internet 26. Iron
7. LCD / LED Television with 27. Shoe Shine
Satellite Channels 28. Shoe Polish and Brush
8. Telephone with Direct Dial 29. Shoe Rack
9. Writing Table with Chair 30. Laundry Bag
10. Table Lamp 31. Laundry Slip
11. Envelopes 32. Luggage Rack
12. Letter Head with Pen 33. Slippers
13. High Speed Wireless 34. Bathroom with shower & WC
Internet 35. Hair dryer
14. LCD / LED Television with 36. Hand Towel
Satellite Channels 37. Face Towel
15. CD / DVD Player 38. Bath Towel
16. Mobile USB Charging 39. Bath Mat
/ Media Hub with Bluetooth 40. Bath Rob
17. iPod docking station with 41. Dental Kit
radio. 42. Shaving Kit
18. Alarm clock 43. Sewing Kit
19. Adapters and Extension
Cable on Request
 Assessment:
(Kindly use separate sheet)

Name:___________________ Course:_______Date:______

Write a summary of topics or statements which reflect the information

from the lesson:
5 points each
Write down your thoughts of the latest technology in the hospitality
industry.

How is this going to help you in the future?

As a manager, what should youdotobemore competitive and for you not

to left behind by your competitors.

What are the latest technology trends? Do you think this technology
would help improved hotel operation? Why?

How can virtual reality be an asset to the company?

What is a finger print recognition?

As a hotel owner, will you take the risk in investing this technology? why?

13
LESSON 2

Property Management Systems

The Property Management Systems or PMS represents

the back-bone of hotel operations and interfaces with a
variety of other key systems from channel management
and bookings to hardware as telephony and key rooms.

PMS is a computer- based management system used to

manage guest on line Room Reservation, Point of sale,
Guest accounting, check-in and check-out, bill settlement etc.

In the hospitality industry, property management systems are designed to

make hoteliers sleep more soundly. This invaluable technology was originally
developed to manage bookings, guest charges, check-ins and check-outs,
room inventory and availability, and rates, all on a single platform accessed
via a hotel’s computer system. For decades, PMSs have also interfaced with
traditional hotel systems such as credit card terminals, keycards and phones.
By providing a modern medium through which to connect and administer these
fundamental operational tasks, PMSs have done away with the
disorganization, inaccuracy and inefficiency of paper- based methods.

The Property Management System or PMS is the central system at

the property level for many years. It manages every aspect of the guests’ visit
while they’re at your
property and, more important, everything that affects their folio.

A property management system (PMS) is a hotel management software

suite that property owners and front desk workers use to manage their business
by coordinating reservations, online booking availability, payments, and
reporting in one central place. The Hotel PMS streamlines operations for front
office staff and guest services in a hotel business to check-in and check-out
guests, see room availability, make adjustments to existing reservations, and
even can have back office functionality (schedule housekeeping or
maintenance). With a central system, hoteliers can better manage and
monitor the key metrics needed to run their business (e.g. average daily rate,
occupancy, and RevPAR).

Further, the Property management systems (PMS) are not created

equal, and while hospitality professionals are looking to technology to automate
their operations, they also need to choose the right solution for their specific
needs. Whether you operate a boutique hotel, a large resort or own condo
properties, Visual One integrates with numerous applications across multiple
outlets, providing the ability to share data across departments and properties.
Protecting your guests’ financial data has never been more important. Reduce
your risk with a property management solution that also offers PCI-validated
(P2PE) point-to-point encryption with every credit card transaction.
PMS can connect to accounting and revenue management systems to create
an overview of revenues, expenses and trends. A modern PMS can also
integrate with many other programs such as upselling platforms, guest
communication tools and a POS system.

Function of PMS:
■ Allow for the creation of a wide range of room rates, covering
different rooms, dates, and company/association discounts;;
track the availability of all guestrooms and rates for at least the
next 12 months;;
■ Track the details of each guest’s advance reservation,
whether as an individual or as part of a group;; help
select an appropriate room for the guest either on or
before arrival;; check guests in;;
■ Keep an up-to-the-minute record of all the expenses guests
charge to their room during their stay, either directly or through
an interface to one of the many sub-systems managing other
aspects of the property, such as bar/restaurant POS charges;;
■ Accept full or partial payment when guests check out;; and
■ Follow through on any resulting accounts receivable if part of
the payment is charged to an outside account, such as the
guests’ company.
■ Allowing for the management of a wide range of room rates,
covering different rooms, dates, and associated discounts.
■ Tracking the availability of all guestrooms and rates for at least
the next 24 months.
■ Tracking the details of each guest's reservation, whether as an
individual or as part of a group.
■ Helping select an appropriate room for the guest either on or
before arrival.
■ Facilitating the check-in process.
■ Maintaining an accurate record of guest charges, either
directly or through a POS interface.
■ Accepting full or partial payments when guest checks out.
■ Reconciling of account receivables from an approved account.
■ Monitoring the housekeeping status of all rooms in the
property.

In support to these functions, a PMS must clearly track the

status of each guest room in the property, whether vacant or occupied (and
by whom), its housekeeping status (dirty, cleaned, inspected/ready, off-market for
maintenance, etc.) and its physical attributes (number and type of beds, view,
balcony, fireplace, etc.). This capability allows the system or front desk agent
to select the room that most closely matches the guest’s preferences at check- in.

15
 The main data record used in a PMS is the guest profile, which contains
their name, address(es), phone number(s), and basic categorization codes
such as their VIP status. Associated with that profile are any number of
separate stay records containing all the details of each individual visit they’ve
made to the property;; these are sometimes referred to as “reservation” records,
even though the guest may have arrived without a prior booking. Each stay
record will contain the dates of the visit, the rate paid, the room occupied, stay-
specific categorization codes (source of business, group code if appropriate,
travel agency, etc.), and either a total or the full detail of all folio charges
during the stay (date, time, department, amount, reference, posting clerk,
etc.).
Grouping records this way allows you to see the total range of a guest’s
interaction with your property quickly, including past visits and future
reservations. These records may also include notes of the guest’s individual
preferences, both personal (“prefers Wall Street Journal each morning”) and
property-dependent (“prefers ocean view”).

Main Functions Covered

1. Reservations
1. Establish and display the availability of different room rates
for different room types, dates, and guest types, including
specific rates negotiated for individual groups and
companies.
2. Allow manual setting of length-of-stay restrictions as required
during peak occupancy periods.
3. Take bookings for individuals and groups, preferably
checking guest history records automatically to see whether
they’ve stayed at the property before and allowing a hotel-set
level of overbooking.
4. Block specific room numbers for guests, when appropriate
(VIP, specific request from the guest, etc.).
5. Accommodate requests to share rooms. Guests should be
able to be from different market segments, on different
package plans, and have different arrival and departure
dates. The only thing they need to have in common is at
least one overlapping night of their stay. The system should
also prompt the user to adjust the room rate among the
guests on overlapping days.
6. Create group bookings with differing numbers of different
room types blocked on each night, with the rapid entry of
names (including shares) from a rooming list.
7. Send confirmations as required, preferably by fax or e-mail, as
well as printed for regular mail.
8. Set up multiple folios for any guest, with the system posting
charges automatically to the appropriate folio (this capability
is usually used to handle cases where a guest’s company
will reimburse only room and tax, with all other charges being
paid by the guest).
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 9. Create package plans consisting of various combinations of
room rates, meal charges, and fees for other services
(parking, spa, etc.) bundled into a single charge, with full
flexibility as to whether the charge is posted to the guest’s
folio on the first, last, or each night, and to allocate the
revenue appropriately to each department.
10. Allow for service charges and various federal, state, and city
taxes to be applied automatically to appropriate charges,
tracking all guests and groups that are tax-exempt.
11. Track at least one travel agent for each reservation, and
report on the commission payable after check-out.
12. Record the payment of advance deposits, apply them to the
correct guest records, or track their return/forfeiture in the
event of cancellation, in accordance with hotel policy.
1. Check-In
1. Retrieve the guest’s reservation, preferably by swiping
his/her credit card through a magnetic-card reader on the
workstation.
2. Present a list of available rooms that match the guest’s
requirements from which the front desk agent can select (or
automatically select the first one) and check in the guest,
overriding a room’s housekeeping status manually if
necessary.
3. Provide for the one-step check-in of groups after verifying
guest names, room types, and sharing arrangements.
3. Charge Posting
1. Allow cashiers to post charges for multiple departments directly
to guest folios.
2. Allow for the automatic posting of charges to guest folios from sub-
systems such as POS, call accounting, and so on.
3. Transfer charges from one folio to another.
4. Allow corrections to the current day’s postings and adjustments
to those from previous days. Corrections may be kept on the folio
record for display on the workstation, but are not printed on the
folio.
5. Keep an audit of all postings and changes to them.
6. Track credit limits for each guest and report when a limit is
exceeded. If a credit card authorization interface is used, it
should automatically dial out for increased authorization amounts
as necessary.
4. Check-Out
1. Post credits to the guests’ folio(s) in the form of cash,
checks, credit card payments, or transfers to other folios,
both for in- house guests and for authorized direct-billing
accounts.

17
 2. Provide for a simple, one-step check-out process for groups,
after appropriate action on any outstanding folio balances.
5. End-of-Day
1. Run a series of reports to help the night audit staff close
out the day’s operations, including cashiers’ shift
balances, room rate discrepancies from rack rate, over--
credit guests, and so on.
2. Run a full data back-up for the day’s operations.
3. Change the accounting date in the system.
4. Set all occupied rooms to a housekeeping status of “dirty.”
5. Run various sets of standard operations reports for
distribution to the managers.
6. Accounts Receivable
1. Track and age all outstanding City Ledger charges. (Note on
terminology: PMSs track all guest charges on folios, most of
which will be settled by the guest while at the property.
However, some will be settled after check-out by someone
outside, that is “in the city” as opposed to “in house.” Hence,
“City Ledger” is commonly used to describe accounts
receivable.)
2. Generate statements as required, including various levels of
reminder/dunning notices.
3. Post partial, complete, and unallocated payments received
against the accounts.
4. Post finance charges as required by hotel policy.

7. Housekeeping
1. Automatically set the status of all occupied rooms to “dirty”
each night.
2. Allow the grouping of dirty rooms into housekeeping sections
and assign them to specific attendants and supervisors,
using different levels of cleaning difficulty for different room
types.
3. Update each room’s status as cleaning progresses, either
manually on a PMS workstation or automatically through the
attendants’ dialing into the system from the guestroom
phone.
4. Track discrepancies between each room’s occupancy status
as recorded by the front desk and as reported by
housekeeping, to identify possible “skips” (i.e., should be
occupied, housekeeping reports it as vacant) or “sleeps” (i.e.,
should be vacant, reported as occupied).
5. Change any room’s status to “out of order” to allow for
correction of engineering or maintenance issues, preferably
18
 also issuing engineering work orders.
8. PBX Operators

19
 1. Provide instant access to the guest list for the current day,
including arrivals and guests already checked out.
2. Provide on-demand access to the guest list for any other
future or past date.
3. Take messages for guests and track their delivery.

Various Reports prepared by PMS

Reservation reports
• Room reservation report on daily basis
• No show and cancellation
• Blocking of rooms for confirmed reservation
• Room inventory list
• Guest details and company name
• Discounted rates for regular guests
Reception reports
• Guest arrival report and departure report
• No-show report (Guest who did not arrive in spite of having
confirmed reservation)
• Guest room change report
• Room sharing report
• Occupancy reports
• Rooming list of in-house guests.
• Guest services like message, credit limit , room change
• Printing of Registration card and issue of meal coupons.
• Departure notification slip
Cahier reports
• Posting of guest charges, advances, and miscellaneous charges.
• Report on city ledger collections
• Foreign currency encashment report
• Bill summary and cashier reports
• Bills settled by credit card and cash
• Split bill reports
• All inclusive room rates and taxes
• On line bill view facility
• Complimentary room report
• Guest high balance room report
• Long staying guest report
• Department audit report
Advantages of PMS
• It promotes smooth functioning of departments
• Reduces paper work and helps in saving money on stationery
• Quality service provided to guests at all time.
• Helps in keeping goodwill with the guest
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 • It leads to good interdepartmental co-operation.
• It reduces work load saves time and increases productivity.
• Good working environment with computer system.
Disadvantages of PMS
• It is very expensive
• User id should be kept secretly
• Staff training cost involved
• New budget to purchase software
• Space is required for installation and computer system

What are the Most Important Features of a Hotel PMS?

1. User-friendly interface. Train the staff quickly and can reduce the
likelihood of errors. The best PMS solutions today are self-service
and help to streamline operations by enabling hospitality
businesses to check in guests faster. Many modern platforms can
even be operated from a mobile device via mobile app.
2. Check-in/check-out guests and modify guest reservations. Keep
track of guest profiles and move them around as needed keeps you
on top of your reservations and reduces the likelihood of
overbookings.
3. Central dashboard. Dashboard, where the end-user can have a
quick overview of the daily happenings of a property, such as
arrivals, departures, the latest actions performed by the property’s
staff and an occupancy chart for the next seven days.
4. Personalized taxes, fees, and policies. Customize taxes, fees,
and cancellation policies in the combination that best suits your
business.
5. Government compliance. Comply with local tax reporting
requirements and regulations.
6. Guest communication. Improve the guest experience with
automated pre and post-stay communications.
7. Reporting suite. Generate detailed production and financial reports
to improve business operations. Helps property managers
understand booking channels.
8. Payment processing. Ability to take credit card payments in
compliance with local and global regulatory standards.

What Integrations Should a Hotel PMS System Have?

Central Reservations System: core hotel industry data to help run your hotel
and allows hotels and their corporate office to access rooms` inventory and
make reservation simultaneously.

21
Revenue Management System: increase revenue with better rate
management

22
 Booking Engine: online booking engines display PMS inventory to take online
reservations

Channel Manager: channel management software helps manage connectivity

to OTAs like Expedia or even AirBnB

What Makes a Great Hotel Property Management System?

1. Channel availability and integration - While hotel property management

software doesn't always have an integrated channel manager, it's
critical that your software vendor has a strong integration to a top rated
channel manager if this functionality is not integrated. Premium
vendors allow you to sync your availability to multiple channels in real-time
and provide booking engine functionality. Some vendors offer an all-in--
one hotel software solution that reduces the overhead of managing and
learning multiple systems.
2. Depth of reporting and analytics - In addition to basic reporting
functionality, some PMS’s allow you to monitor market data, create
automated rules and triggers adjust prices and provide insights related
to pace, pickup, and occupancy.
3. Group functionality - A premium PMS can scale across multiple
properties and grow with your business.
4. Check-in kiosk - In the age of covid19 it's critical that your hotel can
facilitate contactless check-in for guests and a kiosk is one of the best
ways to deliver that comfort and safety

How Much Does a Property Management System Cost (Pricing)?

Pricing for cloud-based PMS products are typically based on how many
rooms or properties utilize that system. Many PMS products have calculators
on their website that will help you better understand what to expect for pricing.
Be wary that some PMS systems will charge additional fees on top of monthly
fees. These additional fees can include percentage commission on direct
bookings, implementation/setup fees, interface fees to connect to 3rd party
systems, etc.
A budget PMS starts at around $50 per month and scales upward based
on occupancy and/or number of rooms. Premium pricing for a PMS starts
around $200 per month for the smallest properties and scales upward based
on occupancy and/or number of rooms.

Setting Realistic Hotel PMS Implementation Expectations

For most cloud-based systems, implementation can take one to three
weeks depending on: how many reservations need to be imported and who is
importing the data (some PMS will offer services to do this for you), the number
of properties and rooms you have and any customizations you would like to
add.

23
 Implementation will typically start by setting up the application - setting
up rooms, room types, adding rates, and importing/adding existing and future
reservations. An implementation coach or representative may work with you
through the setup process, and verify your setup. Finally, you will connect
your channels or channel manager to start taking reservations. Done correctly,
there is no downtime between switching systems. A good PMS will also
provide access to a video training library and knowledge base of its features
to help new users get started.
A successful implementation requires an initial investment in time to
configure your property properly - it’s an investment that has a direct impact to
the efficiency of your operations later. For example, setting up your
cancellations policy now will allow you to enforce that policy later.

How do I know when it’s time for my hotel to move onto a new cloud PMS?

Purchasing a new PMS is an investment in time and resources;;

however, there is considerable opportunity cost that needs to be considered.
The right PMS can improve the customer experience by reducing errors like
overbookings, improve occupancy rates by connecting your available inventory
to your booking engine and channel managers, and help make your more
money by letting you adjust your rates quickly- across all of your channels
based on market conditions. On average, our customers enjoy an average
profit margin increase of 15% after only three months. This more than pays
for the investment and effort involved with migrating to a new system.

Deploying Cloud-Based Hotel PMS

Resources were needed to manage the systems and software updates,

upgrades, and patches needed to be scheduled and installed manually by
onsite staff.

Cloud-based, mobile-enabled hotel PMS platforms offer hotels an innovative way

to engage with guests while enabling hotels to reduce IT costs and simplify their
infrastructure. The systems are administered by the vendor and are easy to
use. Updates, upgrades, and patches are done automatically, saving hotels
time and money.

The benefits of cloud-based hotel PMS solutions include:

1. Faster innovation. With cloud-based hotel PMS, hotels can

bring new properties online more quickly. Each new release
brings new capabilities to help deliver great guest
experiences, improve operating efficiency, and increase
employee productivity.
2. Lower IT complexity and costs. With cloud-based hotel PMS,
hotels can lower upfront capital expenditure on software and
hardware. By going above-property, hotels can also reduce IT
complexity and IT costs.
3. Increase in RevPAR and ADR. With cloud-based hotel PMS,
hotels can effectively manage rates and allocation of rooms
to
24
 various distribution channels, helping to maximize
occupancy, rates, and revenue.
4. Enhanced customer lifetime value. With cloud-based hotel
PMS, hotels get a single customer master with
comprehensive guest profiles that allow them to personalize
and differentiate guest experiences.

Hotel PMS Benefits

Property management software or hotel PMS is the backbone of
hospitality industry operations;; the PMS eliminates costly overbookings by
managing room availability, coordinates with any connected channel managers
to improve room occupancy, accepts payments, and performs key day-to-day
functions such as transferring guests, updating room rates, and managing
housekeeping tasks.
1. The PMS can automate and improve a hotel’s business operations
by providing competitive intelligence, automatically adjusting prices
based on availability, and providing analytics and reporting
functionality. The PMS enhances the guest experience by
remembering customer preferences and sending pre and post-stay
communications. Many PMS systems can also integrate with other
technologies such as point of sale systems, payment processors,
hardware manufacturers, and guest experience software.
2. The amount of daily hotel operations is reduced due to the
automation of repetitive tasks.
3. The necessary work structure is provided so that operations can be
performed in a standardized manner making them easier and less
prone to mistakes.
4. The latest data and information is readily accessible, helping staff
& management in making informed decisions.
5. Increased security due to data being more difficult to compromise
when records are maintained by the system.
6. Guest experience can be personalized and improved with accurate
recording keeping, preferences and detailed information available.
7. Enhanced check-in/check-out capabilities. Provide anytime,
anywhere service to your guests using a mobile-enabled cloud-
based hotel PMS. Untether your front-desk staff so they can check
guests in, assign rooms, enable guest services, and check guests
out wherever there is internet connectivity
8. Improved housekeeping service. Increase housekeeping
efficiency with instant updates on housekeeping mobile devices
when customers check out, freeing up rooms for cleaning. Enable
greater flexibility with room management and improve response
time for room-service tasks. Identify and manage room--
maintenance needs, ensuring rooms are clean and in perfect
condition
25
9. Integrated hotel back-office systems. Connect operations and
financial processes by leveraging prebuilt integrations to accounts

26
 receivable, accounts payable, payment gateways, hotel industry
applications, and property infrastructure devices. Integrate accounts
receivable and commission handling. Ensure accurate guest folios
for faster, more accurate billing.
10. Effective hotel distribution management. Increase room
occupancy and ADR through real-time rate and availability
management across distribution channels. Boost sales through
direct booking channels on brand website.
11. Improved hotel revenue management. Empower managers to
improve ADR with extensive options for setting rates and advanced
rate-management features for manual and semi-automated revenue
management.
12. Better managed customer data. Centralize and secure
customer data and improve the quality and accuracy of guest
profiles with reporting and analytics. Understand customer buying
patterns so you can define more targeted packages and services.
Ensure compliance with national and international data-compliance
rules

Some of the Most-Popular Hotel Management Software for Small

Hotels

1. Cloudbeds. Cloudbeds serves as an all-in-one hotel management

system that can also connect your property to hundreds of channels
(such as Booking.com and Orbitz) with real-time, two-way
integration. It allows guests to make direct reservations through
their desktop or mobile device, or even via Facebook.
2. eZee Frontdesk. eZee Frontdesk is used by boutique hotels,
hostels/lodges, resorts, and small hotels in 140 countries, the
company claims.
3. Frontdesk Anywhere. Unable to locate guest reservations by email
or phone number. Personalized guest, company, and travel agent
profiles that can be exported into marketing campaigns.
4. Hotelogix PMS. Multi-device booking engine. Third-party integrations
with OTAs such as TripAdvisor. Available in nine different
languages
5. Maestro PMS. Maestro is designed for the cloud, and brings 20
different modules under one umbrella, including reservations, front
desk, sales, space and club management, and dining POS.
Maestro aims to simplify things, enabling hotel managers to run
everything from one dashboard.
6. MSI CloudPM. Automatic backup and optional on-site backup. Web-
based instructor-led training to learn software. “Single click” access
to archived night audit reports
7. OPERA Property Management system (PMS) by Oracle. They
would like to improve Outdated online interface for some. Can be
slow during check-in/checkout process
27
What’s the difference between a hotel POS system and a PMS?

The PMS is dedicated in handling everything related to managing and

selling a hotel’s rooms, a POS system does the same for Food and Beverage
venues and other revenue-generating departments.

Both PMS and POS systems can now integrate with other applications
and play a role in maximizing revenue (e.g. via upselling), ensuring smooth
guest communication (e.g. via direct messaging or Chabot’s) or streamlining
accounting and HR procedures. While both systems handle different parts of
a hotel’s business, they complement each other and create a smooth guest
experience, coherent invoices for all hotel services and a complete overview of
the hotel’s revenues.

A Property Management System (PMS) takes care of the day-to-day

front-desk functions of an accommodation business. These tasks could include
managing bookings, check-in and check-out, billing, budgeting and accounting,
inventory management, reporting and guest information.

A Point-Of-Sale system (POS) is used anywhere when you need to

conduct sales transactions. They need to input orders and take payment on the
spot, or you may need to add the cost of items or services to an existing
account. POS solutions go beyond the functionality of a standard cash
register to provide a far more streamlined and consistent experience for
customers, and far more insightful data for business owners.

The hotel PMS handles room booking while the POS processes
restaurant orders. The hotel PMS manages room inventory while the POS
helps manage restaurant or boutique stocks. The hotel PMS notifies you if a
room needs to be cleaned or is ready for guests while the POS tells you if a
table is available or booked. A point of sale system is either a stand-alone
machine or a network of input and output devices used by restaurant
employees to accomplish their daily activities including food and beverage
orders, transmission of tasks to the kitchen and other remote areas, guest-
check settlement, credit card transaction processing, and charge posting folios.

28
Assessment:

Exercise 1.

Students should visit/ research a hotel to know the various software used in the
industry.

Write short notes on the following:

1. Property management system

2. Cloud based PMS

3. Central reservation system

4. Disadvantages of PMS

5. Benefits of PMS
Exercise 2:

Step-by-step Process: Room Availability

You were just hired by the University Hotel to work as the front desk agent.
This is your first day at work and you need to learn about the property where
you will be working. Please use the property management system to explore
the room types at the University Hotel. Prepare a summary table to assist you
with memorizing new information (add extra rows if needed).

N ROOM CODE MAX MAX QUANTITY

CLASS ADULTS PERSONS
1
2
3
4
5
6
7
8
TOTAL NUMBER OF ROOMS:

INSTRUCTION:
Now, you start receiving your first phone calls. Please assist customers with
their requests. For every phone call please check the room availability and
decide on whether you can or cannot make a reservation. If there is a room
available please also provide the caller with the price quote. If the room is not
available, provide your alternative suggestions to keep the customer.

Reservation Scenarios
1. Mr. Mathew Tullius would like to make a reservation for today. He
needs a Single Room and will stay for one night.
Decision (room is available/not
available)
Price:
Suggestion (if applicable):

2. Ms. Amanda Files is asking for a King room for two nights, checking
in tonight.
Decision (room is available/not
available)
Price:
Suggestion (if applicable):
3. Mrs. Turlington is asking for connecting rooms to accommodate her
family of six (6) people. Checking-in today, duration of stay – 2
nights.

Decision (room is available/not

available)
Price:
Suggestion (if applicable):

4. National Association for Sport and Physical Education would like to

make a group reservation for the association’s annual meeting.
They need to accommodate 235 people (110 double rooms, 15
single rooms). The group will check in today and stay for three
nights.
Note: Group reservations are usually done far in advance. But for the
purpose of this exercise please assume that the group is making a
reservation and checking in today.
Decision (room is available/not
available)
Price:
Suggestion (if applicable):

5. Ms. Pecoraro is travelling with her friends. She calls the University
Hotel and asks you if it is possible to put roll-away beds in the
single room so that it would accommodate three people. Ms.
Pecoraro and her friends are students. Sharing one room would
help them to stay within the allotted budget. They would like to stay
for one night.
Decision (room is available/not
available)
Price:
Suggestion (if applicable):

Please answer all questions and submit the assignment to your

instructor.
Exercise 3.

Multiple choice. Select the correct/best answer. (2 points each)

1. A software application used to coordinate the operational

functions of the front desk, sales, and planning at the
hotel.
a. Global Distribution System
b. Point Of Sale
c. Property management system
d. All of the above
2. Which of the following is NOT true of a Property Management
system (PMS)?
a. The PMS records all of a guest`s charges in all departments
such as the restaurant, room service, the spas, and the room
charge.
b. The PMS system is redundant to other tracking system for
recording sales
c. The PMS will provide reporting of guest histories, taxes,
revenues, occupancy rates
d. The PMS manages the reservations, room rates, room
assignments, and room revenue.
3. What is the best definition for the Property Management System
(PMS)?
a. The PMS is the hardware and software used by hotels to
manage its business
b. The PMS is used by hotels to manage room revenue,
reservations, rates, and room assignments
c. All of these combined is the best definition
d. The PMS is connected to other guest service functions such
as restaurants and spas to combine all of the guest’s charges
into one billing statement
4. Which of the following is NOT a PMS benefit?
a. Improved housekeeping service
b. Enhances the guest experience by remembering customer
preferences and sending pre and post-stay communications
c. Develop harmonious relationship in all departments
d. Enhanced check-in/check-out capabilities
5. Which of the following is a disadvantage of using PMS?
a. A wide range of reports that give information statistics in
different areas
b. The software needs to be renewed each year
c. Can create up to 80 folios and Less manpower required
 d. None of the above
6. Which of the following are the advantages in using PMS?
 a. High level of security to protect hotel & guest information as
unauthorized cannot log in
b. If there is a power failure, the hotel runs a high risk of
losing all the stored information
c. If night auditing is missed one day there might be a havoc
the next day.
d. Most cities / countries do not have local support. Support is
possible via online only and sometimes it takes time.

7. What integrations should a Hotel PMS System have, Except?

a. Revenue management system
b. Hotelogix PMS
c. Central reservation system
d. Booking engine
8. Revenue management is?
a. A night audit task used to balance guest accounts
b. A housekeeping system used to increase efficiency
c. A technique used to maximize room revenue
d. An accounting term used to determine optimal ratios for use in
management decisions
9. The allows hotels and their corporate office to access
rooms` inventory and make reservation simultaneously.
a. Concierge
b. Central reservation system
c. Front desk clerk
d. Internet
10. This determine the number and type of rooms to sell at what price
to obtain the maximum revenue.
a. Revenue management
b. Reservations management
c. Front-desk operations
d. Daily revenue trends

34
Lesson 3
POINT OF SALE (POS) TECHNOLOGY

In most cases, the PMS will interface with other point-of-sale or POS
systems such as retail shop systems or Spa services within the hotel even if
they are not owned by the hotel.
This is for the convenience of the guest so they can charge items to
their rooms and pay all charges on one bill when they check- out. Technically,
anything that is not recorded on the bill at the front desk is a separate POS.
These point-of-sale systems can be an actual computerized cash register or a
part of the PMS with data entered into a computer. It is the responsibility of
the Front Desk agent to make sure all items and recorded purchases from all
POS are charged/posted to the proper guest’s folio.
The POS system is as much the core system for F&B operations as
the PMS is for lodging operations, managing the ordering and delivery of all
menu items in one or more restaurants and/or bars. As such, it must be
capable of handling different menus and different pricing at different times of
day. Orders are entered on the system’s workstations in the main seating
area and are automatically routed to printers in the hot or cold preparation
areas or in the service bar, as appropriate. Several systems allow all items on
an order to be entered at once, with some, usually the main course, held back
to be printed and prepared at a later time to suit the pace of the guests’ meal.
Guest checks are printed on demand.
Most systems can track the hours employees work through simple
sign on/sign-off routines;; several also offer inventory/purchasing functions
and recipe analysis. However, more specialized time and attendance and
inventory/purchasing systems are commonly used in these areas.

Point of Sale
The point of sale in hotels is effective because it is able to record all
the transactions and inventories provided per room. Since, most of the guests
stay longer in the hotels, the point of sale in hotels system capable of
recording services rendered, the orders of food and extra charges levied on
every customer.
There are times when customers change their mind and check out
early. In such situation, generating a manual bill would be time taking which
could irritate the customer. At the automated point of sale in hotels every item
is recorded with dates which allow the cashier to compute and calculate the
expenses more effectively and efficiently.

35
 Most of the point of sale system is connected with the kitchen which
allows the chefs to record the delivery of the product in the customer’s account.
It also paces the delivery, eliminating the confusion over the deliverance of
the food.
The key point in the sale application, the latest point of sale in hotels is
the various operating systems for recording the items. Where most of hotels
have applied Windows OS in their computers, there are certainly some who
work on UNIX as their main console for the point of sale system. However, in
both the systems data used by the cashier is recorded through local data
storage for easier assessment and evaluation.
In today’s time, most of the hotels are using web based reservation
system, which allows the customers to register rooms they want by simply
accessing the hotel’s website through internet connection. Earlier, it was done
only by the computer with an internet connection but since smartphones
become the order of the day, most of the hotels have integrated smartphone
compatible websites for to allow the customers to book and reserve rooms in
a hotel. This allows hotels to serve their customer in a better way. They know
it prior to their arrival and hence serve them the food as they arrive.
The hotels which have other services like masseuse and cleaning
females, the Point of sale in hotels would record the services used by the
customer and receipt is created as soon as they plan to check out. This
makes hotel management system more effective in today’s time. The point of
sale system is as important as the services provided by the hotels.

Benefits of Point of Sale in Hotels:

 Operational efficiency
 Reduces revenue losses
 Improvement of customer services and hence big on satisfaction
 Increases customer loyalty towards the hotels
 Accuracy in accountancy
 Helps in decision making

A PMS is required for the hotel staff for the following reasons:
 It integrates all critical operations of the hotel on one platform.
 It provides real-time information on accommodations, reservations,
restaurants, spas, bars, and about every working arm of the hotel.
 It provides highly accurate information which is helpful for the
management to plan new goals and handle the investments in a
better way.
 It boosts the efficiency of the front office staff and in turn maximizes
the performance of the hotel business.
 It simplifies the time-taking or complex operations otherwise done
manually.
 It works for the convenience of the hotel staff, managing body, as
well as the guests.

36
Main Functions Covered
Order Entry
1. Create menu items that can be sold at different prices at
different times in different outlets (restaurant, cafeteria, bar,
room service, etc.).
2. Create modifiers that can or must be applied to individual
menu items.
3. Allow menu items to be grouped together into combinations
with a single price.
4. Define a default kitchen/bar printer where orders for each
menu item will be routed, plus a secondary printer in case
the first is unavailable.
5. Allow some ordered items to be held back for printing in the
kitchen at a later time, either automatically after a pre-
determined interval or manually when the server judges that
the timing is right.
6. Maintain and display to all servers a current total of
significant menu items in short supply, such as daily
specials, counting down the number available as they are
ordered.
7. Provide for the simple, rapid entry of quick-service items
such as coffee or bar drinks.
8. Provide a simple way of re-ordering a round of drinks.
9. Allow for the ordering of off-menu items, with preparation
instructions.
Settlement
1. Allow for the straightforward splitting of charges on a check
among the guests at a table, including dividing the cost of
individual items or the whole check between two or more
guests, in varying proportions.
2. Allow checks to be transferred from one server to another.
3. Combine checks for different tables and/or servers.
4. Automatically add a pre-set gratuity percentage and/or service
fee for parties exceeding a certain size or for deliveries such
as room service.
5. Provide full reporting of tips.
6. Record the settlement of checks to cash, check, charge card,
and to a guest’s room folio.
7. Track all check item voids, corrections, and adjustments.
8. Provide a full set of operating reports, including cashiers’
shift balances, menu item popularity/profitability, server
productivity, and so on.
POS systems, especially those with reasonably full-featured
time-keeping and inventory/purchasing functions, are quite

37
often operated in a stand- alone environment.

38
 The more common interfaces are as follows.
1. Property Management System
Sends requests to the PMS to display the guest names
registered in a specific guestroom, displays the returned list, allows
selection of the correct guest, and sends the POS charge for posting
against the guest’s folio. Increasing levels of POS check data are now
being sent with the charge to the PMS (originally four sub-totals––food,
beverage, tax, and tip—but now often sixteen) to reduce the
number of POS charges disputed at check-out.

A few high-level PMS/POS interfaces have been developed,

which allow the PMS to
❚ retrieve full details of the POS check from the guest’s
PMS folio;;
❚ recognize when a POS check has been opened for a
particular guest in an F&B outlet and set a corresponding
location flag on the PBX operator’s guest list;;
❚ alert the POS cashier that the guest settling his or her
check has a message entered in the PMS;; and even
❚ let the guest check out of the PMS from a POS
terminal, for example, after breakfast.
Some interfaces also pass revenue sub-totals for all POS
settlement types (not just room charges) to the PMS at end of day,
which can make it easier to prepare the nightly operational “flash”
report.

Inventory/Purchasing (IP) System

Sends details of menu items sold to the IP system, which breaks
down the items into their standard ingredient quantities and notes, in
decrements, the theoretical inventory levels on hand. Sometimes also
receives current ingredient costs from the purchasing system to allow
for checks against the POS menu prices.

Types of POS Systems

1. Restaurant POS Systems

Most restaurant POS systems allow you to put in an order and send
the request directly to a kitchen printer reducing errors in the kitchen and
increasing staff and food prep efficiency. Another benefit would be tracking
inventory and food usage. You can also follow payroll with built-in time clock
feature.

A restaurant management system is recommended if you’re a

restaurateur and want to be competitive in the business. Many types of
restaurants need to utilize a POS like full-service restaurants, quick-service
restaurants, fast food, take-out only, cafe’s, pizza shop, etc.
 Restaurant software offers many hospitality functions that help to make
your restaurant run smoothly and streamline the management of your
establishment. Utilizing features like inventory management will help you find
where to cut food costs and to boost profit margins by using recipe costing.
Most restaurant management systems offer an option or service to cost your
recipes so you can see recommended pricing to ensure you’re turning an
adequate profit.

Recipe costing is just one example of features a restaurant computer

system can provide. Some other features and services you’re going to need
potentially are restaurant marketing, customer management, online ordering,
loyalty program, server sales performance, new versus repeat customers,
invoice purchasing, menu performance, employee management, and sales
reporting.

■ The advantage of using a modern point of sale far exceeds not

having one or using a simple cash register.

■ The ability to send orders directly to the kitchen, this is a considerable

advantage by increasing food prep time, staff efficiency, and
reducing errors in the kitchen. If you’re doing handwritten tickets,
think about how many mistakes and the time loss that becomes of
that method. With a POS, there is fewer errors and faster prep
times because the menu items are sent directly to the kitchen, and the
chef and prep staff can easily read the ticket to prepare the meal.

The only negative to implementing a new restaurant management

system is the training time and challenge of learning new software. But that’s
only temporary, once you learn the back-end and front-end of the software, you
and your staff will be pros in no time.

2. Bar and Nightclub POS Systems

In busy restaurants, nightclubs, and bars, speed is essential to

service, so you want to make sure your point of sale software and hardware is
as fast as possible, credit card processing is integrated, and it has all these
features mentioned below. If not, you’re going to hate your P.O.S, and you’re
going to have some unhappy customers.

The main features to

look for in bar software is
preauthorization (or
“preauth”) of payments for
tabs management, bar and
liquor inventory and
control, speed functions
like reordering rounds, bar
prep printing, fast
checkout, and quality 24/7
support. For the reporting
side, you’ll want to see

40
your labor costs compared to sales, product reports, and all your sales and tax
reports.

Additional register features to consider for nightclub and bar point of

sale software is employee management, inventory management, customer
loyalty, recipes, tab management, quick reorder rounds, and quick customer
checkout. Reporting is critical as well to keep track of your food and beverage
taxes. Also, you’ll want to have online access to see your labor costs and
sales reports.

3. Retail POS Systems

Retail point of purchase (POP) systems is primarily for retail

environments. So that means you would most likely never use restaurant
software for a retail shop and vice versa.

Retail businesses can have some particular requirements and

features that other programs will not have. They can have retail shop features
such as color and size matrixing, inventory tracking, employee commissions,
gift registry, customer database, layaway, and purchase orders.

Also, a retail POS system

may include a digital scale or
barcode scanner for
weighing or scanning items,
respectively.

There are hundreds of

different kinds of retail
management systems on
the market. That’s because there
are so many kinds of retail environments, and each business may
have specific requirements. For instance, a grocery store, liquor store, or
convenience store is going to need particular hardware and software
capabilities compared to a small clothing shop. So keep in mind cost and
features are going to vary depending on your business type.

Here’s a summary of the top features a retail POS should offer your
company:

 Credit card processing

 Inventory tracking
 Multi-store scalability (if you have or plan on having multiple locations)
 Color and size matrixing
 Product variants
 Employee commissions
 Customer database
 Gift registry and layaways
 Purchase orders
 Sales reporting
 Hardware integrations like barcode scanners and digital scales
 Software customization

41
 Software/hardware support
 Mobile and cloud-based technology

4. Small Business POS Systems

If you’re not processing an enormous amount of volume and speed isn’t

as critical (like in a restaurant or bar), then a mobile POS could be just the
answer to save you some money. Additionally, a lot of these apps can very
feature-rich and have everything you need without spending thousands on a
“traditional” touchscreen POS terminal.

As examples, an iPad or tablet is perfect for environments like a small

retail shop, little restaurant, yogurt shop, boutique store, cafe, or coffee shop.
Places where you need quality features and functions but where a cash register
may not be enough to get the job done. If you need some inspiration on your
next small business, check out our list of the most popular small business
ideas.

5. Cloud and Mobile POS Systems

A cloud-based POS system is a point of sale platform that stores

information on the cloud. Cloud-based systems typically don’t record much
information on your terminal device. Instead, all data is stored in the cloud
and synchronized across multiple terminals.

The terms cloud and mobile point of sale systems are sometimes
used interchangeably. Cloud-based software is generally on a tablet POS that’s
used on premise.

According to pointofsale.com, one of the main advantages of cloud software

is that it eliminates the need for expensive onsite servers to manage your
data, unlike “traditional” terminal and server-based computers.

Here are a few of the advantages of a cloud or mPOS system:

 Access from anywhere – All your data is stored on a server in “the

cloud,” which means you always have access to your data.
 Cost-effective – Cloud POS systems generally cost a monthly subscription
fee without any contractual obligations – this can remove the entry point for
a quality system without spending thousands of dollars upfront for software
licensing.
 Easy to use – Tablet and mobile POS are easier to use because the staff
is already familiar with using mobile devices so that the learning curve can
be shorter over the traditional point of sale machines and software.
 Software updates – Regular cloud updates can be pushed out to your App
or online software, so you always have the latest and most secure version
of the program. Also, most cloud companies offer updates at no additional
charge as part of the service or support agreement.
 Quality support – Most mPOS companies offer support as part of your
SaaS (Software-as-a-Service) agreement. As long as you’re a paying
42
 customer, customer service should be included. 24/7/365 software support
is the norm in the tablet and mobile industry.
 Mobility – mPOS allows you to be “mobile” where you can accept orders
and payments at a vendor show, or take orders on the floor of your
restaurant or retail store.

6. Salon and Spa POS Systems

Nail salons, hair salons and spas all require a particular set of POS
options due to the nature of the business.

Nail and hair salon POS

systems can sometimes
crossover for other
business types like
barber shops, gyms,
fitness clubs, beauty
schools, massage
parlors, pet grooming,
tattoo parlors, to name a
few. That is because
these other business types
will especially require an appointment calendar and may need retail
functionality with inventory control, and not every software program has those
features.

How Do POS Systems Work?

Understanding the basics of how point-of-sale (POS) systems work and the
implementation process is essential to know, especially if you’re looking to
buy a new system. There is a big difference between POS systems and cash
registers, but generally speaking, functionality is typically uniform across
platforms in the sense that a POS machine is used to ring up sales and to
accept payments.

Here’s an overview of how POS systems work:

1. The Setup – There are software and hardware components to consider

depending on your business type. For instance, if you own a retail store,
you need a retail POS system. If you run a restaurant and bar, then you
need a point of sale software and hardware dedicated to restaurants and
bars. The two systems wouldn’t be interchangeable. You need to work
with a POS provider that offers the appropriate solution for our business
environment.
2. Programming – Your point of sale software has to be programmed to
accept your menu, products, and inventory that you’ll be selling. Most
POS companies will program your menu or inventory items as an existing
customer or additionally for a fee. Otherwise, you can program everything
yourself. Either way, your software has to be programmed to begin using
for transactions – this can be a time-consuming process, especially if you
43
 have a lot of items, so always give yourself plenty of time before trying to
go live.
3. Payments – If you plan on accepting credit card payments with your
POS, then you need to sign up for a merchant account. A merchant
processing account is required to accept credit card payments from
customers. Most POS providers will offer a merchant account to integrate
with your point-of- sale, or you may be able to use a 3rd party merchant
provider.
4. Installation – Most companies offer some service or support to provide
installation. We highly recommend you take advantage of these services.
It’s important to get a proper installation to make sure all your software
and hardware works appropriately according to the company’s
recommendations. Otherwise, you risk technical issues, and that’s the last
thing you need when trying to operate a business.
5. Training – Training and support are super critical to get the most out of
your software. Some companies will offer online or remote training, but if
you’re able to get onsite training with your staff.

What is a POS Payment or POS Transaction?

A POS transaction is simply any transaction that occurs within a business.

Whether you’ve sold a food item, retail
product, or service, a point-of-sale
transaction occurs when money is
exchanged for your product or service.

The “point” of sale payment is when a

customer and merchant exchange products
or services completing a POS transaction
aka point of sale purchase. The physical
places the actual transaction occurs is
defined as the point of purchase (POP), so
the difference between POS and POP
depends on the context when they’re used. There is usually a form of
payment involved to complete the transaction, such as credit cards, cash,
debit cards, EMV, and mobile payments.

44
Assessment:
A. PMS vs POS SYSTEM

PMS vs POS SYSTEM

Compare and contrast the property management system and point of

sale used in the travel and tourism industry.

Hospitality Food and Beverage Services

Property Management System Point of Sales System
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

B. What were the different types of POS system? How can a POS
system be an advantage towards a productive restaurant
operation?

45
REFERENCES:

1. An Introduction to Hotel Systems Fundamentals & Glossary.

Developed by American Hotel and Lodging Association`s
Technology Committee
2. Front Office Accounting - Hotel Management. www.hmtutor.com ›
front-office-accounting Jillian Hufford, Marketing Analyst (2016).
3. Panagiotis Moraities (2014). Design and development of a Property
management system” software suite for hotels. Engineering B.A.,
Technical Educational Institute of Crete, 2014
4. An Introduction to Hotel Systems Fundamentals & Glossary.
Developed by American Hotel and Lodging Association`s
Technology Committee
5. A Guide to Payment Solutions for e-Commerce Sellers.
6. Revfine. The Latest Technology Trends in the Hospitality Industry
7. https://www.hotelnewsresource.com/article99312.html
8. https://www.siteminder.com/r/hotel-technology-systems-products
9. https://www.pegs.com/blog/the-coolest-in-room-techology-in-hotels-
around-the-world/
10. https://www.altexsoft.com/blog/travel/hotel-property-management-
systems-products-and-features/
11. https://www.softwaresuggest.com/gcc/innroad
12. https://www.oracle.com/in/industries/hospitality/what-is-hotel-
pms.html
13. https://www.webrezpro.com/whitepaper/2012_02_16-PMS.pdf
14. https://mingus-software.com/en/blog/hotel-pms-and-pos-duo/
15. https://prenohq.com/blog/whats-the-difference-between-a-pms-and- a--
pos/
16. https://www.lightspeedhq.co.uk/blog/hotel-pms-hotel-pos/
17. https://www.posusa.com/what-is-pos/
18. https://www.google.com/search?q=point+of+sale+in+hotel+industry
&ei=mPMJX7jVK8al-
Qauxq_oDg&start=10&sa=N&ved=2ahUKEwi4gfTJ2cXqAhXGUt4K
HS7jC-0Q8tMDegQIDRAs&biw=731&bih=612
19. http://pbrewer.faculty.unlv.edu//An_Introduction_to_Hotel_Systems.
pdf
20. https://ohdcs.hospitality.oracleindustry.com/OperaHelp/sample_beo
_1column_help.htm