A Property Management System (PMS) is a comprehensive software suite used to manage day-to-day hotel operations and facilitate strategic planning.
The modern PMS continues to be a hub that stores all data in one place and connects to every part of a property’s business. Property management systems accelerate operational efficiency as they allow staff to better manage and monitor the key metrics as well as coordinate reservations, payments, reports, and availability.
That’s why most hoteliers call it the most important piece of hotel technology.
The history of the property management system
The first hotel property management systems, launched in the 1970s, were modeled after technology used by airlines to track reservations and inventory. For decades, their functionality remained fairly basic; they required on-site hosting and installation, and upgrades were time-consuming, complex, and costly. That all changed around 2010 with the introduction of cloud-based systems.
Cloud-based technology completely changed what a PMS could do. It enabled mobility and new capabilities that were previously impossible. That was achieved, in great part, through the enhanced support of integrations with 3rd-party solutions that enabled hoteliers to “plug and play” with the best solutions for their needs. This trend has accelerated in recent years, and today we have API-first software that makes integrations easier than ever before.
The role of the PMS in hotels today
The property management system today acts as a hotel’s central operating system, supporting the daily activities of both staff and hotel management.
Among other possibilities, the PMS allows personnel to manage a variety of front office tasks (such as check-in and check-out, checking room availability, changing reservations, etc.), as well as back-office functions such as housekeeping and maintenance.
For management and ownership, the PMS provides timely and precise updates on key performance indicators of a hotel business, from bookings and revenue to sales and marketing, maintenance management, HR and payroll, quality management, food and beverage control, and more.
With the property management system as the central control point, integrations can be set up to further consolidate information and automate cross-departmental processes.