| A. |
A web-based property
management software integrates ALL reservations
in one central database – which is located
on a server computer OFF property. Consider this
an “ASP” model, which stands for application
service provider. Instead of purchasing software
upfront, the hotelier or property owner would pay
a monthly fee to use property management software
hosted by the vendor on a remote secure server.
The entire property management system would be accessed
through a web browser interface. |
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| Q: |
What are
the benefits of using a web-based property management
software? |
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| A: |
I can think of several
advantages in switching to a web-based program. |
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1. |
Centralized
data. A web-based program completely eliminates
time-consuming data entry for multiple reservation
distribution points, GDS connectivity, travel agent
reservations and web sites. Its online booking interface
provides a remote and/or mobile reservation desk!
Since everything is stored in an online database
– check up-to-the-minute availability from
anywhere in the world, where you have internet access.
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2. |
Easy room
inventory management. Because the central
database is located on a secure server, its much
easier to automate and consolidate updates of room
and rate inventory to your web site, GDS, online
distributors and travel agents. |
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3. |
Security.
The security and protection that a server
can provide is above and beyond what an hotelier
would have time or resources to setup for their
own computer. Backups are made constantly, firewalls
are in place, and the server is monitored 24/7 and
immediately alerts technicians in the case of any
computer failure. While the thought of data being
stored at a remote computer may seem “risky”
to an hotelier, in reality their reservation information
may be much more secure on the software server than
it is currently on their own desktop or network. |
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4. |
Worry-free
updates. Of course I’d always like
to be using the latest version of any software I
purchase. With a web-based program, no need to purchase
updates, or reconfigure a computer to be compatible
with the latest version. A web-based software provider
takes care of all the updates. |
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|
| Q: |
If
web-based software is so easy, why don’t more
vendors provide it? |
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|
| A: |
Certainly
property management software is the most central
and critical data storage tool at any property.
So when a company provides web-based software in
place of traditional desktop solutions, hoteliers
become wary. |
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There
are two reasons even many hotel owners hesitate
to adopt a web-based management software –
cost and confidence. Most business owners and hoteliers
would rather “invest” than “rent.”
Overall, vendors provide a reasonable subscription
fees that are competitive with the cost of the purchasing
software, upgrades and technical support. The second
barrier is fear of losing connection to the remote
application. |
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|
| Q: |
What
are the drawbacks of using a web-based software? |
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|
| A: |
Internet
Speed & Connectivity. Not all properties have
reliable and high-speed Internet connection available.
Although it’s possible to operate a program
on a dial-up connection – I would say it’s
not at all preferable. A few web-based property
management programs provide the option of storing
a local copy of the data, so if your Internet connection
goes down, you retain your ability to use the software. |
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|
| Q: |
What
do other hoteliers say about web-based property
management software? |
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| A: |
Most
users currently using a web-based system highly
value simplicity and efficiency. A couple ASP models
for reservation software have already entered the
market and are gaining customers. This is often
a property that already has broadband Internet connection
and can afford to be “connected” 24/7.
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| Central
Reservation Systems |
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Its
expected that by the year 2005, one in every five
lodging bookings will be made online, according
to a new report published by PhoCusWright Inc. (Hotel
& Lodging Commerce 2002-2005: Distribution Strategies
And Market Forecasts) |
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Q:
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How
does the independent property owner position themselves
to benefit from this growing trend in online bookings?
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A: |
Several
factors are important for an individual property’s
success in the area of online bookings! |
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- Strong & effective direct
online marketing strategy
- Ease of use – for guest and reservation
manager
- Remote access and centralized
inventory & rate management
|
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Independent
properties can improve their ability to sell rooms
by investing time and marketing dollars into both
direct marketing of their web site, and exposure
in indirect online directories. Direct marketing
of a property’s web site is a key ingredient
in online booking success. Hotels and hotel chains
are beginning to buck the trend of online travel
agent bookings by investing in their own branded
sites. |
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| Q: |
What is the industry’s assessment of online
discount distributors? |
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| A: |
Independent
properties can benefit from the growth in online
travel, as long as they don’t become too dependent
on online retailers like Hotels.com, which charge
hefty commissions (15%-30%) and may erode room rates.
“Before the Internet, hotels have historically
made less than 30% of their bookings” through
3rd parties or middlemen (Wall Street Journal, “Inn
fighting”, March 17, 2003). Priceline and
Hotels.com can sell significant numbers of rooms
– but at sometimes painfully low rates. The
lodging industry has begun to recognize the danger
of “rate erosion” if these distributors
continue to gain high usage from both travelers
and travel suppliers. |
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| Q:
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How
do properties implement effective Internet Distribution?
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| A: |
A property
should selectively participate in online room retailers
– listing rooms in directories that increase
bookings, without decreasing room rates. Internet
travel sites usually combine their own database
and Internet network, with a traditional GDS source.
Some sites, like Travelocity take their hotel information
exclusively from Sabre. Only properties that “participate
in Sabre Hotels or Hotel Reservations Network (HRN)”
will appear in Travelocity.com. Expedia, on the
other hand sells rooms from among its own member
listing and the Worldspan (GDS) system. These services
allow the property owner to control their rates
and inventory, increase room sales without decreasing
profit margins. |
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| A: |
Properties
should also invest in marketing Your Own Web Site |
| Three
keys to success here! |
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User-friendly.
Be sure to communicate content and ambience.
Don’t sacrifice one for the other.
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Search
engine-friendly. While the story about your
property’s history may be of reading
interest to your potential guest, its not
going to rate very high on search engines
if its not relevant to the services you offer!
So be sure the pages you are marketing to
search engines contain relevant content about
your destination, amenities, unique services
(e.g. private weddings) and target market
(e.g. couples, families, business meetings).
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Booker-friendly.
Now of course we recommend providing an online
booking option on your web site. Remember
also – to utilize a reservation service
that still lets your guest directly interact
with you. Select a web-based (not commission
based) service. When researching reservation
services, be sure to give it a trial run as
a “guest.”
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