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What is Hotel Reservations Software?

Why Use Hotel Reservations Software?

Who Uses Hotel Reservations Software?

Hotel Reservations Software Features

Reservation management — The primary function of hotel reservations software is to record reservations and maintain a real-time grid for available and occupied rooms. Typically, this includes a color-coded management system to track occupancy. However, when a guest makes their reservation, the system centralizes this data into one interface for hoteliers to avoid overbooking and related errors. Both guests and staff can make adjustments to these reservations as needed. Some solutions allow businesses to track the original channel source of each reservation.

Rate management — Hotel reservations tools allow guests to apply loyalty points and take advantage of targeted promotions, as well as rates that are specific to certain times of the year. Across all channel listings, room rates can be updated to reflect current pricing.

Guest data management — Reservation systems record all pertinent customer information when bookings are made, including phone numbers, emails, payment preferences, membership status, other preferences, and prior visits. Armed with this information, hospitality businesses can market promotions to specific guests, verify identity for security purposes, contact guests if any issues arise, and ultimately improve the guest experience. This data also helps employees with reporting on monthly booking trends.

Booking engine — These tools enable businesses to accept reservations directly from their website or mobile applications, which are now considered essential functions. Front desk staff can also process in-person reservations. Room availability updates in real time and syncs with other channel listings to ensure accuracy. More robust solutions offer additional website customization features to assist with marketing and to allow discounts and promotions to be applied.

Secure payment processing — Both onsite and online, these tools enable quick credit card processing with regards to payments and refunds. Some also integrate with POS hardware. Credit cards are processed compliantly, and all sales data is securely stored to track revenue and payment histories.

Additional Features

Hourly bookings — Hotel reservation tools sometimes offer specialized reservation listings for hourly bookings, such as in-hotel spa appointments or shorter-term lodging. These function the same way as traditional listings, allowing customers to see real-time availability through the booking engine.

GDS integration — Most reservation systems have the option to integrate with an existing global distribution system (GDS), which massively boosts visibility and sales. A GDS is a network that facilitates transactions between businesses and serves as a main distribution channel. These are predominantly accessed by travel agents looking to book on clients’ behalf, as they offer the most comprehensive view of available listings and prices. Hotels connected to a GDS can manage their listing information, pricing, and inventory from a single touchpoint.

For smaller businesses, GDS access may not be feasible. Hotels typically pay an initial setup fee, as well as transaction fees for each booking on an individual basis. In some cases, agency fees may also be charged. The four major GDS systems that hotels still use nowadays are Worldspan, Amadeus, Galileo, and Sabre. Hotels need to contact a GDS for approval before connecting to the system. These systems are a vital distribution channel, and should be utilized to maximize exposure and revenue.

Trends Related to Hotel Reservations Software

Augmented and virtual reality — Both AR and VR tools can help marketers enhance the booking decision for potential guests. Three-dimensional views of a hotel room, the overall property, and its surrounding businesses and environment might be the crucial factor in driving more sales.

Mobile conversion — Desktop bookings continue to bring in the largest share of revenue for hotels, but mobile devices drive the most traffic to hotel sites. More hospitality businesses are placing greater emphasis on mobile optimization to enhance their website and booking engine so more guests reserve directly from their phones. This includes easy-to-navigate interfaces and features such as payment storage for frequent travelers to save time in making reservations.

Potential Issues with Hotel Reservations Software

Limited customer relationship management — As the hospitality industry continues to focus on enhancing the guest experience, businesses need tools that support strong customer relationships. Smaller businesses in particular must manage their loyalty programs effectively to compete with larger chains. While hotel reservations software store some key customer information, not all systems provide enough functionality to sufficiently manage customer relationships. This leaves businesses ill-equipped to personalize guest interactions, and marketing strategy suffers. Many existing products lack integration with more robust CRM tools.

Data privacy — While web-based booking services are more convenient, hotel websites are often unsecured and leave customer data vulnerable to breaches. Most commonly, confirmation emails for hotel bookings pose the greatest security threat, as hotel chains often lack encryption or secure data hosting. Additionally, consumer data is often shared with third party sites and other advertisers. Hospitality businesses are starting to catch on to cybersecurity trends and are working to become compliant with GDPR, PCI, and other data privacy laws that ensure guest data privacy. Some central reservation systems already comply with these existing laws as well, saving time and effort for businesses.

Software and Services Related to Hotel Reservations Software

Hotel management software — Hotel management solutions help manage all aspects of daily hotel operations, including reservations. These tools manage room inventory and assist with processing all bookings and cancellations. Most hotel reservations tools can integrate with hotel management platforms if the functionality isn’t already present.

Property management software — Much like hotel management tools, property management software is primarily used in the real estate industry to manage commercial properties, such as apartments or condos. These tools also keep an updated listing of available rooms for rent or purchase.

Channel management software — Many hotel reservations tools either offer channel management features or integrate directly with channel management software. These solutions monitor room listings across a variety of booking channels, ensuring that rates and availability are accurate to prevent booking conflicts. They also centralize all booking information from multiple sites into one central interface for easy monitoring.