Singular Solution

The next generation of reservation systems promises hoteliers more efficient data management and customer service through integration.

By Rebecca Oliva, Technology Editor -- HOTELS Magazine, 7/1/2001

There is a new phrase buzzing about the industry termed "true integration." Its meaning refers to an ideal solution where a hotel's central reservations system (CRS) and property management system (PMS) are seamlessly integrated into one database. Integration between the two systems offers properties the ability to manage multiple inventories through one database.

"It will make maintenance easier," says John Burns, president, Hospitality Technology Consulting, Scottsdale, Arizona. "It will mean fewer discrepancies. It should make channel management a somewhat more precise endeavor."

True integration, often a feature of enterprise systems, enables real-time reservations and provides up-to-date information. Burns says it may take awhile for the truly integrated systems to be adopted by the hotel industry, as the change involves a substantial technology switch. But when implemented, the opportunity for cost savings and ease of maintenance will be vast because these systems offer major benefits by eliminating the hassles and hurdles that interfacing CRSs and PMSs often involve.

In general, integrated systems on the market now are offered as application service provider (ASP) models, to which hotel properties must subscribe. In this way, property data is stored in warehouses off property, reducing the need for major hardware investments and upkeep. "Cost savings will follow other benefits related to ASP technology," Burns says. Data can be accessed through the Internet, saving hotels hardware, upkeep and even technology-training costs. Property information via an ASP can be deployed easily by any workstation that has Internet access. Even with such a substantial change in technology, integrating a reservation system with a PMS can add a multitude of benefits to all aspects of hotel operations and ultimately, the customers.

Blending Data

Integration at its most basic level eliminates errors that typically occur using a CRS and PMS interface. "Typically, hotel systems have one central reservations system and one property management system, and it was up to the interface to see how well they worked," says Laura O'Connor Barclay, vice president of hotel sales and strategies, MICROS Systems, Inc., Columbia, Maryland. "The systems are still fundamentally different in how they communicate. The idea is to move those together into one big database."

MICROS Systems Inc., offers a system in which integration between CRS and PMS is achieved through a single-image inventory. Currently, the systems' GDS and reservation management components are being developed. Through the system, known as OPERA, other components are offered that use the integrated database, such as the OPERA Palm, a mobile, handheld device with real-time database access. Hotels targeting high-end customers can use this for a convenience item, says O'Connor Barclay. The OPERA Palm can be used for remote check-in and check-out, which eliminates guests waiting in lines at the front desk.

Capturing Real-Time Reservations

A large benefit of synchronizing a reservations database with a property management database is the amount of control and accuracy with which it allows a hotel to function. Recently, Pegasus introduced its completely Web-based enterprise system that comprises CRS and PMS functionality called PegasusCentral(tm). Pegasus' Web-based hospitality enterprise system runs as one application, integrating CRS and PMS functions into one database. Modules such as POS, back office and sales and catering also can be integrated for an additional cost, and GDS connectivity is available through the Pegasus system.

"We are creating a single application with a single database," says Bob Bennett, senior vice president, Property Systems & Services, Pegasus Solutions, Dallas. "Most hotel companies have bought from different vendors and tried to interface. That leads to a lot of operational headaches, which results in guests not getting the same answer." While Bennett says most of the industry relies on interfaces to provide properties with accurate and up-to-date information, the technology can be faulty.

At the property level, other benefits are realized. "The primary benefit to the system is real-time availability," says Anthony Waters, chief financial officer, InnSuites Hospitality Trust, Phoenix. InnSuites, Tempe, Arizona, is currently beta-testing PegasusCentral(tm) system. Waters says fewer errors occur with real-time availability, which results in better hotel management and happier customers. "That's very important to us," he says. Because InnSuites is a real estate investment trust (REIT), an integrated CRS and PMS allows for easier transitions for new properties. "We buy and sell hotels," Waters says. "If we want to bring a new hotel online, all Pegasus would have to do is add a hotel. If a hotel has access to the Internet, all it needs is Internet Explorer to attach to the database."

Waters says a centralized database offering real-time capability also contributes benefits to the back office. Since the system has only one database, reporting to the accounting department is done more easily and more efficiently. "From a management perspective, we can become more active in managing the hotels because of this system," Waters says.

Also from the accounting standpoint, a database with up-to-date hotel information allows better customer relationship management. "The biggest thing about reporting is that here at the corporate office, it makes it a lot easier to maintain when we can see a database in real time," Waters says.

Added Bonus

In addition to the easy maintenance a single-image inventory allows a property, at another level, integration between CRS and PMS makes for better customer satisfaction. "The key to our system at the consumer level is to provide a solid system for reservations to occur," says Mike Panas, president of InternetINNS, Oklahoma City, Oklahoma. InternetINNS is a new franchise company that is completely Internet-based. Consumers can make reservations either by calling a toll-free number or through its Web site (www.InternetINNS.com).

Recently, the company deployed the AREMIS enterprise system by AremisSoft, Kennesaw, Georgia, in which the CRS and PMS are integrated through a single-image inventory. Panas says while the system provides the tools for real-time reservations, which is beneficial to the property, it's the consumers who will reap the most benefits. "The problem that other franchise companies are facing are price differences, lost reservations and amenity information that is not understandable by the consumer," Panas says. "Integration is not just about real-time reservations, it's about real-time information about the property."

With reservation outlets like the Internet, global distribution systems and call centers offering consumers room rates and amenities simultaneously, many errors in bookings can occur, Panas says, ultimately affecting customer service. Panas says with the AREMIS system, those problems are eliminated. The results are well-informed and happier consumers. "Consumers expect the price they see on the Internet to be accurate," he says. "Our mission is to match exactly the prices. It's critical to our success."

Panas expects that as the company grows, about 95% of its franchisees will deploy the ASP model of AREMIS. The system is offered in both ASP and client-server models; however, Panas believes ASP to be the most useful to its franchisees. "ASP allows our hotels to focus on service and hospitality rather than technology," he says.

E-Measurement

Gauging service levels is becoming easier with Measure This!, a measurement service company that offers Web-based, flexible, instant, paperless service reports in real time to hotels, restaurants and airlines. Measure This! allows a company to compare itself with others in the industry.

"The best aspect is time," says Resident Manager Frank Alverez, Rough Creek Lodge Executive Retreat and Resort, Glen Rose, Texas. "It's quick to use and you can save it to a medium besides paper and still have it for future use."

Alverez says the difference with Measure This! reports and other service reports is it offers reports in specific areas that also can be customized.

Reports are conducted by anonymous analysts who stay at the property and evaluate the service based on a 1,200-item checklist. Based on that information, Measure This! is able to generate reports based on each facility's particular criteria.

Cost is determined by the amount of information included in the reports. The most basic level includes information about a hotel's own service quality. The highest level provides more information on the industry at large.

"We use the information to train staff," Alverez says. He attributes the ease of access to the reports as one of the best benefits, as all reports are distributed via the Internet. "You just log and go."