As per the 100 odd hotels we met in India and SE Asia most common issues were the following: –
- Cost of Internet connected property management solution and channel managers – Most of the cloud based property management systems / Reservation management systems charge anywhere between USD 3-7 per room per month. They also usually require a 6-12 month advance payment from hotels. For a 30 room hotel @ USD5 per room per month, this amounts to an upfront payment of USD 150 X 6 months = USD 900.
In addition to a PMS/ RMS, hotels also require a channel manager, which usually costs about the same as PMS if not more. The combination therefore requires an upfront payment in the vicinity of USD 1800.
It is easy to see that this is pretty high for most small- mid size hotels. There might be cheaper alternatives available that we might not be aware of but this seems to be the usual trend.
- Most technology solution based on old processes and not really in tune with the latest development in the industry. Most hotels today have multiple rates based for a given room category on a given day. This is done to ensure that the hotel has optimal occupancy and maximized revenue. Most existing reservation management systems and channel managers don’t allow hotels to input multiple rates in this way seriously limiting the ability of the hotels to maximize their revenue.
- Similar issues exist on OTA end as well. Outdated OTA extranets with limited capability and reliability don’t allow hotels to upload information in a simple an efficient manner. Not to sound picks but even in 2016 the interfaces look more like windows 3.1 which was great in 1995 but is certainly outdated today.
- Revenue management / channel management is a relatively new concept for most hotels. The airline industry on the other hard is a champion of revenue management. Lack of skilled manpower for distribution management is another major issue for hotels.