Now, amid the talks around these technologies, most hoteliers feel the dilemma of getting a PMS and POS from different vendors or the same. 

Well, the answer is simple — it should always be from the same hotel tech vendor. But, why would I say so?

In this article, we’ll take a closer look at the benefits of using a PMS and POS system from the same hotel tech supplier, and how it can help you succeed in the competitive world of hospitality.

Advantages of Using PMS and POS From a Single Vendor

Before you just take my word about single-vendor PMS and POS integration being the best choice, there are several advantages you should know about: 

1. Integration and data management

One of the major advantages of using a PMS and POS system from the same hotel tech supplier is improved integration and data management.

When these systems are from the same solution provider, they are designed to work seamlessly together and communicate with each other effectively. Meaning, data can be easily shared between the systems, reducing the need for manual data entry and improving the accuracy of information.

Moreover, with a single, integrated system, hospitality businesses can also benefit from having one database for all of their operations. This can improve the organization and accessibility of data, as well as reduce the risk of data loss or corruption.

2. Time and cost

The best way to understand this is by looking at a scenario of a hotel that uses a PMS and a POS from different vendors.

Now, the major challenge here is to integrate both systems. It is going to be a complex and time-consuming process. Further, for each system, you are going to require individual setup costs, which can add to the overall cost of the systems.

But on the other hand, using a PMS and POS system from the same vendor can simplify this process and reduce the time and cost associated with integration. Hotels will not have a need to invest in additional support for integration.

3. Collaboration and communication

In a fast-paced and customer-facing business like a hotel, it is important for every department to communicate seamlessly.

Now, when I say communicate, I don’t mean walking up to every person and speaking. Rather, what I mean is that every department must have access to certain information.

Let’s understand this with an example.

Zoya is vegan and she mentioned the same while making a reservation with your hotel. Now, your hotel offers complimentary breakfast, which is served at your in-house restaurant.  However, you forget to inform the restaurant about Zoya's dietary preferences and served her no-vegan food.

Oops! Sounds like a blunder, isn’t it?

Well, that’s exactly why getting a PMS and a POS system from the same vendor helps you. The solutions ensure that they are well connected with every other system and work in sync without any miscommunications.

4. Data security

Hotel businesses handle sensitive data on a day-to-day basis. Which is why it is important to have a robust data security infrastructure.

While every other data security measure is worth the effort, it is also imperative to ensure that your technologies such as the PMS and the POS are from the same provider.

The reason is, when these systems are from the same vendor, you get enhanced security features and controls, such as encrypted data storage, secure login protocols, and multi-factor authentication. 

This can help protect hotel businesses and their customers from data breaches, cyber threats, and unauthorized access.

5. Customization and scalability

Customization and scalability are also two of the major advantages that hotel tech providers offer with their systems.

For example, when you deploy a PMS and a POS from the same tech solution provider, you get a range of customization options, allowing businesses to get tailored systems for their specific needs and preferences.

Additionally, these integrated systems can make it easier for accommodation businesses to scale their operations as they grow and evolve.

For example, single-vendor PMS and POS allow flexibility, making it easier for hotels to add or remove features and users as needed.

6. Training and support

When you get a new property management system (PMS) for your hotel, it is important to train each and every employee on how to get used to it and milk its benefits. And in most scenarios, the service provider offers free training.

Now, imagine a situation where you deploy another system such as the POS, but from a different vendor. Wouldn’t this be a hassle to have two separate training sessions from two service providers? 

But if you get the PMS and the POS from the same vendor, your training will be much easier and save time.

Not to mention, the vendor would also offer you support for both the systems with utmost quality.

So, if you have been wondering whether it’s the right call to go for the same hotel tech provider, then the answer is YES.

7. Reporting and analytics

Irrespective of the shape and size, every hotelier needs to know what’s happening in each aspect of the hotel. And what could be a better way to learn about them than reports?

But then again, what’s the point of having different reports from different systems?

Integrated systems like PMS and POS, especially when they are from a single vendor, are designed to work together seamlessly. Meaning, the reports they generate are much more detailed and cover all the areas of the hotel, allowing hotels to track key metrics and performance indicators. Be it from the areas of the hotel or from a POS outlet, the reports provide precise information.

Things to Keep In Mind While Choosing the Right Hotel Tech Vendor

When it comes to choosing the right hotel technology vendor, it is essential to consider a range of factors.  

While the points mentioned above are also good to gauge whether the hotel tech vendor is suitable for your hotel, there are some more factors to consider.

Here are more considerations:

• Identify your hotel’s specific needs and ensure that the vendor you choose offers solutions that can address those areas.
• Research the vendor’s reputation in the industry to gauge the reliability and quality of their solutions.
• Review the various solutions the vendor offers and ensure they align with your business needs.
• Evaluate the pricing and ensure that it aligns with your budget and is reasonable.
• Consider the level of support and training offered by the vendor.
• Look at the vendor’s previous clientele and feedback as it can give you an insight into their capabilities and experience.

The post How PMS and POS Solutions from Single Vendor Improve Hotel Management appeared first on eZee Absolute.

However, hotels cannot simply go ahead and set any outlet they want. I mean, they can, of course. But that might not turn out to be profitable.

If you’re a hotelier and wondering what kind of a point of sale to set up and how, then you’re at the right place. Because in this article, I am going to cover the ins and outs of setting up a hotel POS outlet.

What is a Point of Sale Outlet?

A hotel POS outlet refers to a place where a guest/customer makes a payment for goods or services. Further, sales taxes may apply in these outlets.

Types of POS outlets

Now, there are different types of POS outlets. Here are some of the most common types of point of sale in a hotel:

• Food and Beverage
• Boutique
• Personal care
• Travel desk

However, the type may vary depending on the hotel. Meaning, hotels may even decide to open a store that doesn’t fit in the existing categories, its offering, and the space it has for the outlet.

The Role of These Outlets in a Hotel’s Revenue

There’s no sugar coating. POS outlets significantly contribute to a hotel’s bottom line.

The hotel business is a bumpy ride. Sometimes people don’t show up even after reservation, they cancel their stay at the last minute, low occupancy for a longer time, employee turnover, and whatnot.

If these sorts of scenarios continue to occur for an extensive length of time, hotels might end up facing severe losses.

What can be done? Setting up an additional avenue to generate revenue (Oh! That rhymed). It will definitely ease the pain, if not completely mitigate it.

This is where POS outlets come into the picture.

These outlets are a great way for hotels to upsell, cross-sell, and give a much-needed push to their revenue.

And it is not just about selling goods and services when there’s low occupancy. Even during 100% occupancy, these points of sales in a hotel can add additional cash to the revenue.

Further, hotel POS outlets are also a great way to cater to guests/customers who are not in-house.

For example: Hotel Maiden has failed to achieve 100% occupancy for more than 6 months now. However, the hotel is somewhat still functioning well with more than a decent revenue. How? Hotel Maiden has a restaurant that hits the top sales day in, day out. It is a concept restaurant inside a hotel that has developed sturdy marketing and operational strategies because of which the tables are always occupied.

POS outlets aren’t just nice-to-haves; they are your revenue boosters (if done right). We have even done some detailed articles on this. You can refer to them for tips.

•  Boost You In-House Hotel Restaurants’ Sales
• Increase Hotel Bar Sales Significantly

Tips to Set Up POS Outlets in a Hotel

Now, let’s address the elephant in the room — how can a hotel set up a POS outlet?

There are a lot of things that go behind the scenes while establishing a store/service inside a hotel. However, it’s not a mountainous task; with some sincere analysis and tactics, any hotelier can pull this off.

1. Determine the type of POS outlets you want to set up

I am sure, you have different ideas in mind. As the first step, what you can do is list down all of them. You can also seek inputs and feedback from your colleagues and acquaintances.

Once you do it, try to figure out which ones are more likely to be profitable and sort them.

However, do not discard the other ideas; you might have to consider them as well later.

2. Determine the types of guests you cater to

The type of guests you cater to matters when you’re planning to set up a POS.

Let me explain with an example.

Your hotel mostly caters to business travellers. And over the years you have noticed that most of these travellers book with your hotel just to get a nice sleep after a long day or conduct meetings at your hotel banquet.

Now, you’re planning to set up a fashion boutique. Do you think it will be profitable? Unlikely. 

I am sure you have other guests as well who would love to purchase at the boutique, but that’s a very tiny group.

Setting up an additional avenue of sales is like hammering on a thin piece of metal. You have to be very precise and find a middle ground.

3. Find out the spending pattern of your guests

Spending patterns speak volume about your guests. The deeper you dig, the better you understand a significant part of their psychology behind making a purchase.

If you haven’t tapped into this aspect, it is time for you to do that.

Look at your past data and determine how much your guests have spent and on what. Now, sculpt every piece of information into meaningful insights.

For example: You are able to put your finger on the data and have figured out that your guests have spent a notable amount of money on personal care. Meaning, you can bet on opening a spa or a saloon to drive more sales.

4. Perform compset and market analysis

This goes without saying. Competitor analysis is not to be sneezed at.

Even though you don’t like getting back to the salt mines, you have to perform compset analysis. Or else, you’re lagging. Big time.

Spend a good amount of time and effort to see what your competitors are doing in terms of POS. And not just that, also try to suss out their revenue.

This will give you a firm grasp of your POS game.

We also have a step by step guide on how to perform compset analysis. Do check it out here.

5. Create a strong budget around all the aspects of the outlet

Whenever there’s a new project, one of the first imperative things to consider is budget. Because a budget can make or break a business.

Once you decide on the outlet, get in touch with a financial expert and curate a budget that fits perfectly in line with your hotel’s every monetary aspect.

Word to the wise: There’s a rule in budgeting that every business must follow and I want you to do that too. DO NOT GO OVER BUDGET.

I have done a blog on hotel budgeting sometime back. You can refer to that as well and see if you find an idea.

6. Set up a team

Your hotel POS outlet is not going to manage itself. You need a team that is well trained in all the aspects of handling POS operations.

Now, there’s a mistake that most of the hoteliers make while forming the team — they overhire staff. Do NOT do that.

If you’re not able to decide how many employees you’re going to need to seamlessly run the outlet, get expert help. But make sure, you’re not overspending in the name of hiring.

Not to mention, always cover the hiring aspect in the budget. It will help you do away with unnecessary hiring and save a few bucks.

Word to the wise: Staffing in the hotel industry is a tricky task. Over and above, the industry is also known for having a high employee turnover rate. Therefore, ensure that you’re levelling up your hiring skills.

7. Invest in marketing

If you want your POS outlet to stand out you have to tell a story that connects with a wider audience. And that can be achieved through marketing.

Be it social media, ads or traditional marketing, bet on everything.

Here’s a blog that explains the nuts and bolts of restaurant marketing. It is not exactly for a POS like an in-house restaurant, but the points mentioned here are gems. Do give it a read.

Restaurant Marketing Strategies That Actually Work

8. Look for cross-selling opportunities to in-house guests

Now that you have learned almost all the prime elements to set a POS outlet in your hotel, let’s look at another aspect that plays a vital role.

Hoteliers must utilise their POS outlets as an opportunity to cross-sell. When you have a significant inflow of guests, make sure you pass on the word about the point of sale in your hotel and persuade them to make a purchase.

This is a tricky job, no doubt. However, if done right, it can do wonders. You’ll witness your sales going through the roof.

But many hoteliers do not have the required knowledge or expertise to pull such a strategy (which is completely understandable). This is where revenue management experts come into the picture.

Do not shy away from seeking help from experts. Be flexible and as game as Ned Kelly.

How Can Hotels Manage These Outlets Efficiently?

It might now seem like a cakewalk; however, there’s one more thing you must keep in mind. Setting up a hotel point of sale is one thing, but you also need to manage it in apple-pie order.

For that, you need a POS system.

If you aren’t aware of such a system, it is a tool that helps in managing POS outlets. To elaborate, a POS system is basically a central component that is used to automate and streamline everything from sales, inventory management, payment processing, to customer management.

There are several hotel point of sale systems available in the market. But you must find the right one if you want to eliminate manual entry and reporting errors down the road.

We have a guide that explains the nuts and bolts of selecting the right restaurant point of sale system. You can check it and see if there’s anything useful you find for your POS outlet.

FAQs

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