In 2022, every market sector is deeply embedded in technology, boasting specific and innovative tools, particularly in the tertiary sector. The pace of innovation is rapid, and digitalization is crucial, yet many markets still find themselves unprepared.
PMS, RMS, and BI Software, although distinct tools, collectively form a collaborative “kit” essential for all hospitality establishments.
Let’s explore what they are and how they function.
Hotel PMS: what is it?
PMS stands for Property Management System, commonly referred to as a Hotel Management System. It is used by back-office and front-office staff in hotels to manage booking planning and routine activities typical of the hospitality industry, such as check-ins, check-outs, payments, etc.
A PMS usually operates on a local server (within the hotel), while smaller establishments may opt for Cloud solutions, known as Hotel OS (Hotel Operating System).
PMS in the Hotel Industry
A PMS is an indispensable tool for all hotel staff:
- Reception and Front Office: manages guest registration data, check-ins, check-outs, room assignments, etc. If integrated with a Channel Manager or synchronized with various OTAs (Expedia, Booking, etc.), the PMS remains consistently updated with this data.
- Housekeeping Staff: plans and manages activities in real-time (e.g., knowing in real-time when a room is vacated and when it is ready for new guests can improve guest service).
- Hotel Management and Administration: accesses key KPIs specific to the hotel industry (occupancy rate, revenue, average revenue, etc.).
A PMS collects existing data, making it suitable for descriptive analysis (what has happened) but not for predictive analysis (assessing the impact of strategy changes or potential scenarios due to external changes and events).
Hotel RMS: what is it?
RMS stands for Revenue Management System, also known as Yield Management. It is software used to analyze customer demand with the dual goal of improving inventory management and optimizing pricing to maximize revenue.
RMS allows the development of pricing strategies that determine the sale of products to the right target, at the ideal time, at the best price, and through the most appropriate distribution channel.
RMS connects to the data from the hotel’s PMS, utilizing current data (e.g., availability and rates) to define effective sales strategies.
It is important to note that PMS and RMS are different systems with different functions and goals but are complementary. While PMS manages hotel operations, RMS focuses on profit maximization.
Although RMS allows for real-time data-based pricing strategies (demand, supply, and availability), it can be enhanced with proper Big Data management through Business Intelligence & Analytics tools.
Business Intelligence Software for Hotels
Every hospitality establishment can use Business Intelligence software, an application that captures and analyzes data to enable organizations to make better decisions, take targeted actions, and implement more efficient business processes.
Today, BI can integrate with PMS functionalities, allowing professionals and entrepreneurs to better analyze their business performance based on precise, timely, and up-to-date data.
BI software is the ideal tool for accurately verifying data entered in the PMS, which is then used by RMS to develop pricing algorithms.
The accuracy of historical data used for forecasting models must be certain. In this process, BI plays a crucial role in data control and performance measurement.
Thus, Business Intelligence seamlessly integrates into the hospitality software ecosystem, connecting essential information for decision-making.
Ready-to-Use BI Solutions
Developing an effective hotel Business Intelligence tool requires time and valuable resources. Additionally, the choice of technology and release time are crucial factors for the project’s success.
With this in mind, Blue BI has developed a family of “easy-to-go” Business Intelligence solutions with definite timelines and competitive costs, implementable through a flexible, scalable, and results-oriented approach.
BBI x Hospitality is an integrated system for analyzing business indicators specific to the hospitality sector, constantly monitoring the current situation, forecasting future business, and implementing the best market development strategies.
Although many PMS and RMS incorporate BI functions, these are standard solutions (integrating standard functions regardless of the specific characteristics of your organization). The BBI x Hospitality solution integrates with existing PMS and RMS to enhance performance and take your business to the next level.
We realize Business Intelligence & Advanced Analytics solutions to transform simple data into information of freat strategic value.
