A Property Management System, or PMS, handles all operations for your hostel from reservations and rates to check-ins, check-outs and payments. A good Property Management System will also keep availability and rates up to date across all booking channels. This reduces labor and increases bookings while reducing the risk over-bookings.
Not Using A Property Management System
Many small hostels use a basic spreadsheet to keep track of their bookings. This seems like a simple option, it sure doesn’t need much staff training to use. But it creates a lot more work for your staff and increases your chance of being overbooked. It also leads to incorrect payments and lost revenue through not following up cancellations and no-shows. With this system you need to manually update your calendar for each booking received. You then need to manually change availability on all booking websites immediately. It seems like the cheapest option, but it requires you or your staff to constantly check bookings and update channels. This means you’ll pay more in wages as your staff will not be free to leave the front desk.
Using A Property Management System
A Property Management System may cost a small amount each month. But it will increase your efficiency and optimize the beds you’re able to sell. It will also lead to greater guest satisfaction as you won’t disappoint guests due to over-bookings. This will in turn boost your ratings. Additionally, a PMS gives you access to a huge number of booking websites that you simply couldn’t manage manually. Each booking made through a website that you would otherwise not be listed on is profit in your pocket. This far outweighs the cost of a Property Management System, a system that staff will quickly learn to use. You’ll see most of your front desk labor reduced and your profits increase in no time.
Managing Your Calendar
Connecting easily with a Channel Manager, a Property Management System imports bookings from booking channels like HostelWorld or Booking.com. HostelProfessional uses a unique AI to allocate all bookings to the relevant room on your calendar. The system will then automatically update your availability on all booking channels. It will also do this for any manually-made bookings, extended bookings, or canceled bookings. Any change to the calendar will result in all booking channels being updated. The system also makes it really easy to keep track of which guests have checked-in, checked-out, or not arrived.
Manage Your Money
A Property Management System doesn’t just organize your calendar, it also keeps track of payments. The systems sometimes have an included POS (Point Of Sale). This keeps track of guest payments for accommodation, food and drink, tours, key deposits and anything else you need. The best systems even match payments to charges so you can see each day where your money came from. This reduces the risk of theft as the system will keep track of all bookings and payments.
Data gathered by the POS is used by your Property Management System to produce a number of useful reports. The best reports include your expected vs received revenue and detailed shift reports. It also shows a breakdown of which channels you get the most bookings from and how far in advance they’re made. Your gross profit is shown too, once expenses have been entered and taken into account. These reports are easy to use and give you an insight into the health of your business over time.
- Set and update your rates across all booking channels with a few quick clicks.
- A Property Management System custom tailored for hostels, rather than hotels, will allow you to allocate bed numbers to guests.
- Housekeeping is made easier with a daily breakdown of guest movement and which beds need to be cleaned.
- Being cloud based allows you to check the system from multiple devices, even from your phone. You can also print a daily summary of your guest movement in case your of internet troubles.
- Some systems allow you to have multiple hostels connected to the same user account. You can easily switch between your hostels to see what is going on with each of them.
Reduce the stress in your life and increase your profits. A well set-up Property Management System, used to its full potential, can make a world of difference to your business. It is essential for efficiency, and the savings it creates greatly outweigh the cost. It pays for itself with the boost in revenue you can expect.
If you have any questions or comments about Property Management Systems or HostelProfessional, we’d love to hear from you. Just leave us a comment below or get in touch via our contact information.
If you have any questions, comments or concerns, comment below or contact us. We’d love to hear from you.