All property management software systems are the same

One of the common myths about property management software (PMS) systems is that they are all the same or that they all perform similar functions. This assumption is false in a number of ways. Each property management system has strengths and weaknesses. Software engineers, who may or may not understand the needs of the market they are designing the systems for, design most PMS systems. In addition, with more and more people securing reservations online (as many as 37-38% of all hotel reservations will be made online in 2008), make sure your PMS system has a solid online booking engine module.

There are many things to consider before purchasing a PMS system. First and foremost, make a list of the specific needs of your particular business. A bed and breakfast has different requirements than a hotel or a property management company does. Businesses that have multiple revenue streams, such as a resort with both a spa and restaurant, will also have very unique needs. No one property management system will be completely perfect. I often tell people that Microsoft has been working on Windows for over 20 years. Microsoft also has more money and far more resources than smaller software companies. Nonetheless, Windows is not perfect and no one PMS system will have every feature you need. What should be a key requirement when looking for is a PMS system is that it is the best overall fit for your unique business needs. Don’t just buy a system because it does ONE thing you think is crucial. Often, I have observed people who get too focused on a single utility (example: exporting to QuickBooks), which causes them to purchase a PMS system that does the one function they “have to have.” However, that same PMS system may have numerous other weaknesses that make it a poor choice overall.

RezNEWS Tip: Once you have a list of key features that your business requires, run a search engine inquiry for these terms: “Property Management Software,” “Hotel Reservation Software,” “Reservation Software,” or use your own specific terms relevant for your business. Click on some of the links from the first two pages or so of your search results and evaluate content from the various PMS websites. In addition, you might want to create a spreadsheet that compares and contrasts the different features of each product.

Considerations when buying a PMS system:

  • How long has the company been in business?  How many installations do they have? What is the quality of their support?
  • Do not go single feature shopping Look for the best product overall.
  • Cost. Don’t expect a $500 system to have as many features as one that costs $25,000. Software developers try to meet as many customer needs as possible, however, no system is perfect.
  • Look for a flexible design for maximum customization. Will the system be used by many different types of businesses? If so, it should generally be more flexible than systems that are designed for only one industry.
  • Flexible support for third party modules. Make sure the system has support for point of sale systems, call accounting, credit card processing, key card interfaces, etc.
  • Easy to edit and change existing reservations, group reservations, etc. Make each company take you through the basics of their program before purchasing.
  • Support for custom marketing lists. Targeted e-mails are one of the best ways to reach guests who have stayed with you in the past. Make sure the program you select supports the creation of highly custom marketing lists.
  • Reporting. The more reports available for use, the better. Ask if you can modify or customize reports.
  • Financial data. Make sure the program you select can link to QuickBooks or other financial programs.
  • Online booking engine. Avoid booking engines that require you to host on your own or that do not support online packages. The PMS system you select should include a sophisticated and flexible online booking engine module.

RezNEWS Tip: Once you have spoken to a few PMS providers, download each company’s PMS demo and also get them to do a web-based interactive presentation to demonstrate their products. Ask them to show you the software’s key features like group reservations, adding point of sale charges to invoices, packaging, changing existing reservations, and any other feature that makes their product unique.

Just because a company tells you their product will do this and that, don’t just take their word for it. Make them SHOW you how it works. In fact, when you are on the phone with them, ask them about the weaknesses of their products. Sometimes, it can be more important to find out what a product can’t do, rather than just asking about what it can do. In addition, always make sure you obtain user references before purchasing.

Conclusion:
Be flexible as you evaluate the various PMS systems. Assess each system holistically. Trendy features are just that. Don’t assume all systems are alike. Buyers often fail to find out what PMS systems can’t do. Make sure the PMS system you select can grow, as your business needs change. The bottom line when considering a PMS system is to buy more than you need, not less. Also make sure support will be readily accessible as you learn how to use your new system. While all PMS systems have similar features, how they function and how flexible they are, varies greatly. Do your homework before you buy. Ask other businesses in your area what PMS system they use, and what the strengths and weaknesses of those systems are.

This month’s myth, that all property management software systems are the same, is… BUSTED.

Published: December 1, 2007