Course Code: HRM 174

Course Code: HRM 151/TOU052

Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

Lesson title: Property Management System Materials:

Lesson Objectives: Student Activity Sheet
At the end of this module, I should be able to:
1. Provide an overview of PMS and its operations. References:
2. Cite functions managed by a PMS include automation of many tasks. Teacher’s Guide
Wikipedia
www.hotel-online.com

Productivity Tip:
Train your mind to see the positive in every situation.

A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)

At the heart of any hotel or resort

technology portfolio is the property management
system (PMS). This system is essentially the nervous
system that runs the hotel or resort and the system
with which most other property-based systems must
connect or interface to exchange data (such as guest
charges from the property’s restaurant, bar, and retail
outlets and other areas in which guests can make
purchases).

2) Activity 1: What I Know Chart, part 1 (3 mins)

Provide your answers in the “What I know” column. Questions under the “What I Learned” column will be
answered once the content notes are already discussed.
What I Know Questions: What I Learned (Activity 4)

Introduction to PMS and Its

Functions

The Four Key Interfaces

Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

B. MAIN LESSON
1) Activity 2: Content Notes (13 mins)

The Property Management System

Property management system (PMS) was initially given this name because of its role in managing the
property’s room inventory and revenue; that is, keeping track of room availability and statuses, the guests who occupy
each room, and the payments or revenues for rooms sold. Its original function was primarily administrative.

Over the years as both the business and technology have changed, so has the role of the PMS. Its role expanded to
revenue and sales lead generation as well as day-to-day operations and business reporting. Now, the PMS is integral to
managing everything about a hotel or resort’s guests and their experiences, including their profiles and preferences,
loyalty points, and CRM.

It is hard to imagine running a hotel or resort today without the aid of a PMS. Many industry professionals
suggest that the term PMS has become outdated, especially since these system functions are moving off of the central
PMS and onto separate applications; instead, the term hospitality management system (HMS) seems more appropriate and
rightly puts the primary emphasis on the guest experience (the reason for existence) rather than the administrative running
of the property.

A PMS is a sophisticated management tool comprising of many modules. PMS vendors are continuously
expanding their solutions to provide more robust application suites that can support more aspects of hotels and resorts and
the guest life cycle. A PMS is a room inventory management tool, a sales tool, and an accounting/billing tool.
Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

Integration of Systems to Business or Profit Centers

The hotel or resort is made up of a collection of businesses or profit centers. Profit centers include: Lodging
operations, Food and beverage outlets, Retail stores, Meeting rooms and banquets, Spa, Parking, and more.

To run such complex businesses requires a strong reliance on IT applications and a sophisticated IT portfolio. In
addition, the average hotel may use up to 20 different technology applications to run its business. Systems integration (or
the ability to exchange data between systems in real-time) is one of the greatest IT challenges facing hotels and resorts. In
totality, the costs for IT are high, adding to the capital intensity of a hotel or resort property. Some of the technology is
guest-facing (i.e., front-of-the-house) and directly relates to guest services (e.g., PMS, Web site, and point-of-sale (POS)),
whereas other technologies (e.g., accounting, human resources, and security systems) play supporting roles behind the
scenes (i.e., back-of-the-house or heart-of-the house). Finally, there are infrastructural technologies that are absolutely
critical in empowering the property’s IT portfolio and ensuring its integrity and reliability. These technologies provide the
foundation and backbone upon which all applications run. They include things like the operating systems, security
applications, network monitoring, communications hardware, back-up software, and cabling.

The application of technology in business should be done purposefully, with the business priorities and strategic
objectives driving technology choice and adoption. Technology should be serving, supporting, and enabling the
business.

Principal areas of focus include:

o Customers - revenue, service, and retention.

o Employees - attracting, training, retaining, and

equipping employees to perform their jobs.

o Owners - growing value.

o In the hospitality industry, systems and technologies

are used to ensure service consistency and enable
consolidated reporting across properties.
Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

Purpose of PMSs

▪ To provide managerial controls and reporting needed to maintain the health, strength, and integrity of the business.

▪ To provide a safe and secure environment.

▪ To differentiate and create strategic competitive advantage.

▪ To maintain competitive parity.

▪ To assist with legal and regulatory compliance.

Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

The Guest Lifecycle

Hospitality is not about discrete transactions; it’s about

relationships. It’s all about providing personalized guest services that
meet or exceed guest expectations. In the end, it is about the experience
and pleasantly surprising or wowing

guests. Hotels and resorts that can create incredible and memorable
guest experiences that impress their guests will have a definite
advantage in the marketplace. Therefore, technology adoption should
take a guest-centric approach in every facet of the organization’s value
chain (see Figure below), looking at adding value in terms of services
and amenities from the guest’s perspective that ultimately contribute to
the overall and lasting guest experience.
Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

1. Dream

▪ A person dreams of going to a particular place or having a particular kind

of experience.

▪ Have a certain experience in mind, but are still exploring the opportunities
and finer details

2. Purchase

▪ Needs a reason to book with you instead of with your competition

▪ Efficient booking engine, effective loyalty program, etc.

3. Anticipate

▪ Your guests are most excited about your hotel and the upcoming trip. Your hotel should capitalize on
this phase by engaging with the prospective guests. Learn the reason for the guests’ trips and help
them plan their stays.

▪ Opportunity for upselling and develop relationship with the guests in this phase.

▪ By doing these, Your guests will have a better in-stay experience and there will be a high change
that they will come back to you in their future trips and even share their experience to their friends.

4. Experience

▪ Customer experience is your best marketing to quality of service and degree of convenience
you offer to your guests.

▪ Important to have seamless communication and streamlined task management among

various departments.

▪ Mobile apps and messaging technology → put all your hotel’s services and

amenities at your guests’ fingertips.Convenience for guest and high guest satisfaction.

5. Remember

▪ People remember bad experience easier than good experience. Work

very hard to create great experience. Guests will share with others.
Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

Property Management System functionality

A PMS must be able to perform seven basic functions:

1. Enable guests to make reservation.

2. Enable guests to check-In/register when they arrive and check-out/pay when they leave.

o Whether guests have a reservation or not, this essential function of the PMS includes not only check-in when guests present
themselves at the front desk, but also the ability to interface with any self-check-in/check-out or remote computers such as PDAs.
Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

3. Enable staff to maintain guest facilities

o Housekeeping functions of a property management system

▪ Enable staff and management of a hotel to access some basic

necessities when managing rooms:

• Room type, room number, king, double, etc.

• Room status - clean, dirty, departing today, etc.

• Information on the occupant of the room - name, likes extra

pillows

• Internal operational information - inspections, maintenance issues,

history, etc.

• Report generation, for example - discrepancies departments.

▪ Discrepancies occur when the housekeeping department’s

definition of the status of a room differs when with the front
desk’s status.

4. Account for a guest’s financial transactions

o Billing information such as credit number, home and/or business

address, and the specific type of room rate.

o Front office overnight shift - “turn over the day.” It is here where
room and tax and all other applicable charges are “posted”
to each room. This is known as the night audit.

o PMS generates daily records of hotel activity such as total

occupancy, total cash taken in and so on.

5. Track guests’ activities for use in future sales efforts

a. It is important that the PMS capture all the information about a guest that is relevant and beneficial to future
sales efforts. This
information can also be accessed by the central reservation system and any CRM applications for sales and marketing initiatives.

b. If staff members don’t enter complete information on this screen, data from a critical touch point or location where a guest is
provided service will be incomplete and future sales and analysis potentially hampered.

6. Track guests’ complaints for user in customer service support.

Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

7. Interface with other systems

a. PMS must interface with the Global distribution system (GDS) and the
central reservation system (CRS). If the PMS and GDS/CRS come
from different vendors, the two must communicate seamlessly. If not,
duplicate data and mistakes, and therefore unhappy guests, may easily be
encountered.

b. Sales and Catering Applications - Banquets and meetings are all part of
a hotel’s operation and must be included in any revenue reporting of the
night audit function of the PMS. Point-of-Sale System (Food and
Beverage) - In the past, the lack of an interface resulted in lost revenue
and poor service due to the fact that these two systems did not
communicate directly.

c. Hotel Retail Points - If a hotel contains other retail shops such as gift
shops or pharmacies that allow room charges, their systems must interface
with the PMS to ensure that purchases appear on the room bill.

d. Back-office Accounting

e. Sales and Catering System

f. HVAC or EMS Systems - The heating, ventilating, and air-conditioning

systems(HVAC) as well as the energy management system (EMS) need to
be accessed by various departments in the efficient operation of any
facility. E.g. during low season periods, pasts of a hotel may be closed and
the lights and heat turned off to conserve energy and cut costs. Therefore,
the PMS needs to integrate with this component and ensure that guests
are placed in the proper “open” sections of the hotel.

g. In-Room Amenities - Pay-per-view, printing services, the minisafe, or

the minibar, all in-room purchases must be tracked

h. Messaging - Messages must be taken and applied to individual rooms.

i. Security - With the advent of key cards replacing traditional key systems and through the interface with the PMS, greater security
is available.

j. The Call Accounting System - It is an interface between the hotel’s PBX (private branch exchange) and the PMS, which transfers
calls to specific rooms or offices.

k. Guest Call/Maintenance Tracking System

l. Telephone Service and Guest Messaging

Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

Three Key Interfaces

Due to their need for real-time data, three other important interfaces along with the GDS/CRS warrant further discussion.

1. Real-Time Interface with the GDS/CRS

Real-time integration between the PMS and the GDS/CRS(and other booking engines), provides hoteliers and
brands with much greater ability to manage their room inventory in real time in addition to providing a number of benefits
relative to revenue management.

3. Integration with Activities Management Systems

Modern PMSs designed for use in large hotels and resort properties have integrated functionality that allows users,
staff, or guests to reserve multiple hotel resources either in conjunction with or independent from an actual room
reservation. Therefore, when a guest makes a reservation, reservation clerks have the opportunity to “up-sell” additional
hotel services to the guest without forcing the guest to enter the same information twice.

Integration of the PMS with other activities management systems, drives additional hotel revenue and saves the
hotel money by decreasing the incidents of “false no-shows” for various hotel resources.

3. Built-In Revenue and Yield Management Tools

Modern PMSs use a weighted historic average determined by the user along with the systems calendar (for
holidays) and any additional information supplied by the user to set rates and predict availability for future room nights. It
provides the hotelier with tools for managing room sales so as to maximize revenue and profits. These functions are called
either revenue management or yield management tools.

Graphical User Interfaces

PMS user interfaces should be user-friendly and it should support the rapid training of a workforce that
historically turns over almost two to three times per year. It must be almost “training free”. People have to be able to
ascertain how to use them as easily as they would a popular Web site. From an internal staff perspective, the issues are
easy to understand. Every time an employee quits, a new employee must be trained to use the system. During the new
employee’s training period, the hotel must pay for additional labor (the trainee and the trainer). During the first several
days of an employee “working the system solo”, there are customer service slowdowns and decreased worker productivity.
Many guests prefer to enter their own reservation information via a browser or “self-register” and make their own
reservations, as opposed to relaying information through a hotel operator. Consumers have grown to expect business
applications to have easy to use graphical user interfaces. User interfaces must also be intuitive even for guests who are
not computer literate or lack high-end cognitive capabilities.
Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

Advantages and Disadvantages of External Technologies

1. Best Guest Recognition—The use of mobile check-in apps makes it more challenging for hotel team members to properly
recognize loyalty program members for their status and deliver them their benefits.

2. Guest Service—Guests are turning more to voicing their distaste with aspects of their hotel experiences on social media than to
the hotel team members directly. Airlines like United, Delta, and Viva Colombia have come under attack recently for negative
traveller experiences posted directly on social media, giving the public the opportunity to judge what the company should have done
even if it goes against clearly outlined policies. How a company responds to these cases is now under scrutiny of millions of people
rather than directly between the affected parties.

3. Transportation Service—Hotel private transportation services may become obsolete.

4. Concierge Services—Hotel concierge services may become less necessary as guests turn to completely unbiased review sites
like Yelp or TripAdvisor, available in their language, whereas often times, concierges are biased by commissions or courtesies for
recommending certain activities or restaurants to guests and may be limited to just one or two languages.

5. TV Service—Many travellers, particularly in the millennial generation, claim to catch up on their favourite TV shows on demand,
right from their tablet. The need for hoteliers to have technology available in the rooms so that guests can stream onto the larger
television screen (vs. an 8–10 inch tablet screen) is quickly rising.

6. Food and Beverage Revenues millennial generation—While some hotels boast award-winning restaurants, other hotels
clearly offer food just to meet a mini-mum requirement of their brand’s standards. With other, potentially much better, food options
just an Uber Eats order away, why would guests spend money in those hotels’ restaurants?

7. Cost per Key Investments for Owners—Bluetooth capable door locks for digital key, smart toilets, and remote-controlled
climate controls in rooms represent significant investment costs for hotel owners.

8. Generational Gaps—While millennials and Generation Z are known for being tech-savvy, some members of older generations
find advanced technology over-whelming. It can be a challenge for hotels to integrate more advanced technology features without
over-complicating the experience for guests who are less tech-savvy.

9. Hotel Direct Bookings—Although distribution will be discussed in a separate chapter (7), it is important to note that direct hotel
bookings always represent the most profitable bookings for hotels. There are no commissions to pay to third parties. Online Travel
Agencies, or OTAs, like Expedia and Booking, have lower operating costs and can focus an important portion of their funds on
marketing and Web page enhancements. This can make it difficult for hotels to compete.

10. Security of Customer Data—The extent to which customer data is so widely available on digital platforms—in PMS systems,
mobile apps, and online profiles—leaves customers’ private information and the hospitality companies that possess such information
highly vulnerable to attacks. Companies should be sure to invest not only in the guest experience enhancing technology but also in
proper information systems security.
Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

2) Activity 3: Skill-building Activities (20 mins)

Exercise 1. Analyze the questions and complete the letters to the following correct answers.
1. This system is essentially the nervous system that runs the hotel or resort and the system with which most other property-based systems must
connect or interface to exchange data.

P _ _ P _ R TY _AN_GE_ENT SY_T_MS
2. The use of mobile check-in apps makes it more challenging for hotel team members to properly recognize loyalty program members for their
status and deliver them their benefits.

B_ST CU_ _O _ ER R_C_G_ _T_ON

3. It is an interface between the hotel’s PBX (private branch exchange) and the PMS, which transfers calls to specific rooms or offices.

C_LL AC_ _UN_ING SYS _ _M

4. Principle area of focus for revenue, service, and retention.

C_ST_M_ _S
5. Principle area of focus to attracting, training, retaining, and equipping employees to perform their jobs.

E_P_OY_ES
6. A person dreams of going to a particular place or having a particular kind of experience.
DR_ _MS
7. To provide quality of service and degree of convenience you offer to your guests.
C_STO_ _ R EXP_RI_ _CE

Exercise 2. Enumerate the correct answers to the following questions.

2A. Five Purpose of PMS 2C. Five Customer Cycle Phases
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.

2B. Three Key Interface

1.
2.
3.
Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

3) Activity 4: What I Know Chart, part 2 (2 mins)

It’s time to answer the questions in the What I Know chart in Activity 1. Log in your answers in the table.
4) Activity 5: Check for Understanding (5 mins)
What are the benefits of structural technologies?

___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________

C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
Congratulations for finishing this module! Shade the number of the module that you finished.

My Work Tracker: You are done with the session! Let’s track your progress:
P1 P2 P3
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

You are here!

Did you have challenges learning the concepts in this module? If none, which parts of the module helped you learn the
concepts?__________________________________________________________________________________________
__________________________________________________________________________________________________

Some question/s I want to ask my teacher about this module is/are: ____________________________________________
__________________________________________________________________________________________________

FAQs
1. What are Graphical User Interfaces?
The graphical user interface is a form of user interface that allows users to interact with electronic devices through graphical
icons and audio indicator such as primary notation, instead of text-based user interfaces, typed command labels or text navigation.

2. What is the purpose of technology in business?

The purpose of technology is for serving, supporting, and enabling the business and focusing the business
priorities and strategic objectives driving technology choice and adoption for best revenue management.
Course Code: HRM 174
Course Code: HRM 151/TOU052
Course Title: Applied Business
Tools and Technologies
SAS - Module # 12
Name: _____________________________________________________________ Class number: _______
Section: ____________ Schedule: ______________________________________ Date: _______________

KEY TO CORRECTIONS

Exercise 1. Analyze the questions and complete the letters to the following correct answers.
1. P R O P E R T Y MANAGEMENT SYSTEMS
2. B E S T C U S T O M E R RECOGN ITION
3. C A L L A C C O U N T I N G S Y S T E M
4. C U S T O M E R S
5. E M P L O Y E E S
6. D R E A M S
7. C U S T O M E R EXPERIE NCE

Exercise 2. Enumerate the correct answers to the following questions.

2A. Five Purpose of PMS
1. To provide managerial controls and reporting needed to maintain the health, strength, and
integrity of the business.

2. To provide a safe and secure environment.

3. To differentiate and create strategic competitive advantage.

4. To maintain competitive parity.

5. To assist with legal and regulatory compliance.

2B. Three Key Interface

1. Real-Time Interface with the GDS/CRS
2. Integration with Activities Management Systems
3. Built-In Revenue and Yield Management Tools
2C. Five Customer Cycle Phases
1. Dream
2. Purchase
3.Anticipate
4.Experience
5. Remember