Choosing a hotel PMS system for a small independent hotel

Ask the manager of a small independent hotel which system they would replace first, and the answer is often the hotel PMS system. It holds every reservation, every rate and every guest record, yet many small properties still run it on old on-premise software, a spreadsheet or even a paper book. This article explains what a modern property management system should do for an independent hotel, what to look for when you switch, and how that choice affects your direct bookings.

The advice comes from Jonatan Joseph Tsuff, CEO and founder of Noovy, a company that builds all-in-one software for small and medium-sized independent hotels. He grew up in his family's hotel in Amsterdam and worked every position there, from housekeeping and reception to reservations and, eventually, management.

What a hotel PMS system should do for an independent hotel

A property management system is, in Tsuff's words, one of the most important systems of the hotel. At its core it manages rooms, reservations and guests. For a small hotel without a separate IT or revenue team, the core alone is not enough. Tsuff describes an all-in-one setup as one where everything you need to operate the hotel is built into a single system. A related article looks at keeping hotel room status in sync across departments.

In practice he names four parts that belong together:

• The PMS itself, for reservations, rooms and guest records.
• A channel manager with direct connections to booking channels such as Booking.com, Expedia and Airbnb.
• Guest communication tools, such as email and WhatsApp.
• Revenue management, with pricing tools and data to decide on rates.

On top of that, he expects a marketplace of integrations, so a hotel can still connect a third-party tool it relies on. A related article explains how to get more from your hotel channel manager.

Signs your current system is holding the hotel back

Tsuff's own search started in 2015. One of the hotels he managed wanted to replace its PMS, an old on-premise system that he calls the opposite of user-friendly. The main problem was that it was difficult and complex to train new staff. When he looked for an affordable, cloud-based, all-in-one alternative, he could not find one. The market offered either complicated, expensive systems used mainly by bigger and chain hotels, or Excel and very simple tools that did little. So he and a group of developers decided to build it themselves.

In the hotels that later switched, he sees a few recurring warning signs:

• New staff need weeks of training before they can work the front desk alone.
• The system depends on many integrations that keep breaking.
• Repetitive tasks, such as collecting payments from virtual credit cards, are still done by hand.
• The hotel is connected to only one or two booking channels.
• Reservations still live on paper or in a spreadsheet.

One hotel he describes ran an old on-premise system with twelve or thirteen integrations. They broke regularly and made training hard. After the move to a cloud system it needed only two or three integrations, for accounting and the point of sale, and training time dropped from weeks to hours. Other customers came straight from pen and paper. According to Tsuff, they told him afterwards that they regretted not switching sooner.

How to choose a hotel PMS system: the criteria that matter

When a small hotel compares options, Tsuff's experience points to a short list of criteria. A hotel PMS system for an independent property should be:

• Cloud-based, so there is no server on site to maintain.
• All-in-one, with channel management, guest messaging and revenue tools built in.
• Affordable for a small or medium-sized hotel, not priced for a chain.
• Easy to use, so a new receptionist is productive in hours rather than weeks.
• Backed by support that understands hotels.

He puts particular weight on the last point. His company offers support around the clock, and everyone on the support team has a hotel background.

Automation that gives staff time back

Once the basics run in one system, the next gain is automation. Tsuff describes the goal simply: automate the repetitive tasks that nobody wants to do, so the team can spend its time with guests instead of behind a computer. Collecting payments from virtual credit cards is one example. A related article looks at back of house hotel automation.

Guest messaging is another. His company recently launched AI replies for WhatsApp and Booking.com messaging. The hotel first provides a list of its most common questions and answers. The AI combines that with information from the hotel website and general knowledge, such as restaurants in the neighbourhood or how to reach the hotel, and answers guests within about a minute and in their own language.

He links this to two trends he expects to continue. Guest expectations keep rising, with more demand for personalisation, seamless experiences and quick replies. At the same time, he finds it very hard for hotels to find good people, and he does not expect that to get easier. In his view, automation, AI, online check-in and smart communications will play a bigger role, but hospitality stays about people, and the technology is there to make those people more productive.

Using your system to win more direct bookings

A PMS decision also shapes how many guests book direct. Tsuff has seen hotels move from 5% to 25% direct bookings, but he is careful to say that software alone did not do it. It came with advice on what he calls the low-hanging fruit. The first rule is about the booking flow itself.

“The OTAs are doing a great job, and the hotels will need to step up their game, I guess. So it needs to be as easy to book on your own website as it is to book on booking.com.”

Jonatan Joseph Tsuff, 0:00

His checklist for closing the gap with the OTAs:

• Make booking on your website as easy, frictionless and fast as on the OTAs.
• Keep the rate on your own website at least equal to the OTA rate, and preferably lower.
• Ask only for what you need, such as a name, an email address and perhaps a phone number, instead of a long form.
• Use metasearch to give direct bookings an extra push.

Speed matters most in the booking engine connected to your PMS. In his experience, the quicker a guest gets from start to finish, the higher the conversion rate.

“Basically, we want to get the guests from the start to finish as quickly as possible.”

Jonatan Joseph Tsuff, 18:41

He also sees progress: compared with five years ago, hotels pay more attention to their own website and invest more in the direct channel. There is still, as he puts it, a lot of room for improvement.

For the full story, watch the full conversation.

Frequently asked questions

What is a hotel PMS system?

A PMS, or property management system, is the software that manages reservations, rooms, rates and guest records. Jonatan Joseph Tsuff calls it one of the most important systems in a hotel. For small independent hotels, he recommends a cloud-based, all-in-one version that also covers channel management, guest messaging and revenue management, so the whole team works in one place.

Why should a small hotel choose a cloud-based PMS?

In Tsuff's experience, old on-premise systems are hard to learn and often depend on many integrations that keep breaking. One hotel that moved to a cloud system went from twelve or thirteen integrations to two or three, and training time for new staff dropped from weeks to hours. That frees the team to spend more time with guests.

What does all-in-one hotel software include?

According to Tsuff, an all-in-one system combines the PMS with a channel manager connected to channels such as Booking.com, Expedia and Airbnb, guest communication by email and WhatsApp, and revenue management for pricing. A marketplace of integrations lets the hotel still connect the third-party tools it needs, such as accounting or a point of sale system.

Can a PMS help increase direct bookings?

It can help, but not on its own. Tsuff has seen hotels grow from 5% to 25% direct bookings when better software came with practical advice. The basics are a booking process as fast and simple as on the OTAs, a direct rate that is equal or lower, a short booking form, and metasearch for extra reach.