The "HospiTech" space is awash with solutions that promise they are the new panacea or can provide silver bullets to unwary hoteliers; non more so than "All-in-One Property Management System (PMS)" providing channel management and booking engine capabilities (as well as of course managing reservations).
Whilst some are very good and offer varying degrees of sophistication, there are plenty that are very basic, appealing let's say to the "budget conscious" end of the hospitality industry.
Let's examine this in more depth.
An All-in-One Property Management System (PMS) should be a comprehensive software solution that combines various features and functionalities into a single platform. It typically includes modules for managing reservations, front desk operations, housekeeping, guest communication, accounting, reporting, and more.
The goal of an All-in-One PMS is to provide a centralized system that streamlines property management tasks, saves time and reduces the need for multiple software applications.
On the other hand, using a "best-of-breed" approach involves selecting individual software applications or tools that are considered the best in their respective categories. Instead of relying on a single, all-encompassing solution, best-of-breed involves integrating multiple specialised software applications to create a customised tech stack that meets specific needs and preferences.
Here are some key differences between the two approaches:
Scope and Integration: All-in-One PMS offers a comprehensive suite of features within a single platform, ensuring seamless integration between different modules. Best-of-breed, on the other hand, involves integrating different specialised software tools, which may require additional effort to ensure smooth data exchange and interoperability.
Flexibility and Customization: All-in-One PMS provides a standardised solution with predefined features and workflows. While they may offer some customisation options, they may not be as flexible as a best-of-breed approach. Best-of-breed allows you to choose the specific software applications that best fit your needs and customise them to your preferences.
Depth and Specialization: All-in-One PMS covers a wide range of property management functions, but it may not offer the same depth of features and specialisation as individual best-of-breed applications. With a best-of-breed approach, you can select the most powerful and specialised tools for each specific function, such as revenue management, channel management, or guest communication.
Cost and Pricing: All-in-One PMS typically involves a single subscription or licensing fee, simplifying the pricing structure. Best-of-breed involves purchasing and integrating multiple software solutions, which may incur separate costs for each tool. However, it's worth considering that individual best-of-breed applications can sometimes offer more competitive pricing and flexibility depending on your specific needs.
Ultimately, the choice between an All-in-One PMS and a best-of-breed approach depends on your property's unique requirements, preferences, and budget. An All-in-One PMS can provide a unified and convenient solution, whereas a best-of-breed approach allows you to select specialised tools tailored to your property's specific needs and potentially achieve a higher level of functionality.
In the same way that my company STAAH (www.staah.com) doesn't profess to be experts with PMS solutions, we do profess our expertise in the field of Channel Management and Booking Engine technology.
Using a higher level of functionality in our solutions optimises revenue generation opportunities that many All-in-One systems simply cannot accommodate (excuse the pun).
So what does all this mean?
In my 15 or so years of being in this industry, I've seen the All-in-One trend change.
Is an All-in-One PMS sometimes a false economy?
Many Hoteliers are realising that utilising All-in-One PMS with rudimentary channel management and booking engine technology :-
a) are NOT saving them time
b) are costing them money.
c) are actually less efficient
For what's it's worth many All-in-One users are surprised that the difference in cost to use a best-of-breed integrated solution is often not as high as they think. There is a real misconception in the market around this.
Using a killer feature like "Incremental Occupancy Based Price Yielding" in the channel manager, even a modest property can see substantial increases in revenue each month.
Intelligent IP based mobile pricing on the booking engine can generate a lot of higher value reservations.
Setting automated triggers in the "best-of-breed" means reducing HOURS of messing around in the All-in-One.
Time is valuable and freeing up more time is priceless.
Performance analytics and insights: Best-of-breed channel managers often provide detailed analytics and reporting features. These insights help identify the most profitable channels, evaluate marketing campaigns, and make data-driven decisions to optimize revenue generation.
In conclusion my recommendation to all hoteliers is to look closely at functionality when selecting your partners. Although it's tempting to worry about the price it's more important to assess the cost.
Is a monthly modest saving really worth all the potential lost revenue, the lost time and the hassle?
Remember price is what you pay, value is what you get.
*It's important to note that while a best-of-breed channel manager can provide significant benefits, success also depends on factors like effective marketing, pricing strategy, customer service, and the quality of your offerings. Implementing a channel manager should be part of a comprehensive revenue management strategy tailored to your specific business needs.
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