9 tasks you can automate with hotel management software

For a long time, hotel management software (or property management system, PMS) was a computer program installed and managed directly from the hotel's computer. Its purpose was primarily to manage front desk activities such as reservations, check-in, check-out, and billing. These systems could be very expensive, required bulky hardware, and had to be updated manually.

Today, modern PMSs have evolved into cloud solutions, which means they are accessible online and from anywhere, with fully automated software updates. This significantly reduces costs and allows for a lighter technological infrastructure.

In addition, many of today's PMSs offer an all-in-one approach, meaning they include tools that allow for centralized management of all hotel activities (booking engine, channel manager, CRM, etc.) and take advantage of API (Application Programming Interface) technology to allow for integration with a variety of external software, so new features can be added as needed.

To explore this topic further, you can read our article with a list of must-have software in a hospitality business.

Many hoteliers are reluctant to increase the level of automation in their hotel because it requires investment, staff training, and time to define new processes. However, the benefits far outweigh any initial difficulties. Here are the key benefits of automation in a hospitality environment:

Increased profitability

• Increased profitability

According to a recent Deloitte study, companies that invest more in digital transformation by improving processes through advanced technologies will achieve a 6% higher net operating margin (EBIT) in 2023 than those that do not make this choice.

• Time savings

Repetitive tasks are automated, freeing up employee time. A recent Salesforce survey found that those who use automation save approximately 3.6 hours per week, or 23 business days per year.

• Reduced labour costs

In a Deloitte survey, approximately 23% of hotel respondents said automation will help them reduce labor costs, while 25% expect automation to reduce the number of employees needed, enabling properties to address the severe labor shortages the industry has experienced in recent years.

• Improved guest experience

More efficient processes mean less waiting, fewer errors and better guest service: more than 60% of Deloitte's hotel respondents believe that automation will improve the overall guest experience.

Thanks to the possibility of integrating external software, today's management software can automate a really large number of tasks, to be mixed and matched according to the specific needs of each hotel. Below, we list the 8 most important tasks you can automate, divided into practical activities and strategic activities.

Automating reservations is a critical element in optimizing a hotel's operational efficiency. Since most reservations today are made online, integrating a booking engine into your hotel management software will allow you to manage them 24/7.

One of the most useful features a hotel management software can include is automated distribution channel management: the program system captures online reservations from all connected channels and automatically changes availability.

By automating the online booking process, hotels can maximize inventory across all channels, save valuable time and significantly reduce human error. This not only improves operational efficiency, but also the overall guest experience, as the entire booking process is completed without the risk of unpleasant hiccups.

Automating guest communications is essential to improving efficiency and the guest experience. With an automated management system, you can automatically send emails and preset messages based on specific events, such as reservation confirmations, check-in reminders, reservation changes or cancellations, and post-stay thank you messages.

By integrating this feature with your management software, you can create customized communications for each moment of the stay, ensuring that each guest receives the right message at the right time, while reducing manual effort and minimizing the risk of forgetfulness and errors. When designed properly, automated communications can be a great motivator for positive reviews and loyalty.

According to research by Cornell's Center for Hospitality Research, guests' tolerance for long check-in times at the front desk depends on where they are from: while Italian, French, German and Spanish guests have a tolerance of 15 minutes, guests from the U.S. and Canada are unwilling to wait more than 5-7 minutes before becoming dissatisfied.

The pandemic that led many to discover the convenience of online and/or contactless check-in has definitely led the way, and today offering the option of automated check-in is essential if you want to not only maximize operational efficiency, but also increase guest satisfaction.

An automated management system allows you to schedule housekeeping shifts based on guest reservations and departures, improving efficiency and staff management.

By connecting to mobile devices, housekeepers can access their shifts in real time and update the status of rooms as they are cleaned.

Digital housekeeping reports linked to the front desk keep track of reservations and occupancy levels, simplifying scheduling and allowing front desk staff to know which rooms are occupied, which need cleaning, and which are ready for guests.

One of the most useful features of modern hotel management software, especially for small and mid-sized properties, is the ability to automate communication with government agencies.

This not only saves you valuable time, but also prevents errors in the management of important and verifiable data. In fact, thanks to automation, you will be able to send customer files directly to the authorities without manual input, automatically calculate the tourist tax to ensure accuracy and compliance, and manage communications of presence according to the regulations of your region.

An all-in-one PMS revolutionizes the way you create and manage your sales strategy because it starts with one key element: data analysis. With clear and detailed reports, you can easily monitor every cost, understand which sales channels are most cost-effective for you, and where it pays to focus your efforts.

For example, you can set a price, use it immediately on your booking engine to drive direct bookings, and use the quoting features to create customized promotions to offer offline. Later, you can publish the same rate on OTA channels, but add a differentiated markup to compensate for commissions.

Revenue management automation is the technological innovation that most enables you to achieve significant business results in a short period of time.

In fact, implementing state-of-the-art revenue management software allows you to apply the most complex dynamic revenue management strategies without the need for specific skills. Linked to your management software and channel manager, the software will be able to automatically analyze all the internal data of your accommodation, constantly comparing it with the market trends of your area and the impact of events and holidays.

The resulting dynamic rates are then automatically synchronized with the management software and Channel Manager and published to your distribution channels, eliminating the risk of manual errors and significantly reducing your workload.

An excellent integrated booking engine is a prerequisite for building a disintermediation strategy. Today, 56% of hotel and lodging sales are made online, and allowing guests to book directly on your website is key to increasing direct bookings and reducing dependency on OTAs.

In fact, it will be possible to sell without commission costs and create customized and advantageous rates compared to those published on OTAs.

Another advantage is the ability to integrate the sale of ancillary services directly into the booking process. Suggesting upgrades, breakfast, parking or special packages at this stage stimulates interest, enables efficient management and maximizes revenue. It can also have the effect of reducing the risk of cancellations or no-shows by making guests feel more engaged prior to arrival.

Automating accounting and reporting is essential to avoid all the drawbacks of manual processes: delays, human error, and high costs. In addition, traditional accounting does not allow you to view data in real time, which is essential today in a fast-paced industry like hospitality.

Depending on the characteristics of your hospitality business, you can choose software that offers basic functionality or more powerful software that can handle more complex tasks. Either way, you'll see immediate benefits from this implementation: you'll save time, simplify data collection, get instant reports, get a clearer view of your hotel's finances, and as a result, make more informed and timely decisions.

As we've just seen, the best way to ensure a strong online presence, reduce reliance on OTAs, and create a multichannel sales strategy is to take full advantage of your property management software. But is your PMS really up to the challenge?

To help you find out, we've created a handy checklist with 25 questions to help you assess whether your hotel management software is up-to-date or if it's time to upgrade or replace it.

Download it now!