Actualités

Eurhotec 2001
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How to select a PMS

Ted Horner, Managing Director, E. Horner & Associates Pty Ltd. (consultants)

When buying a new PMS you should be looking to meet the hotel's needs now and in the future. It should offer improvements over the old system, competitive advantage and customer satisfaction.

Project Management
w Appoint a selection team ­ including front office manager, line staff, marketing dept.
w Define your requirements ­ do you want ease-of-use, high level of integration?
w Document your 'wish list' ­ get your staff to approve it
w Establish a vendors list ­ talk to other hotels, look at vendor websites
w Check if the vendor specialises in small/large property systems
w Make your Request for Proposal ­ to get comparable responses

What features should you look for?
w Configurable and user-definable reports (without returning to the vendor)
w Strong forecasting tools
w Marketing database systems ­ can you reach export the information easily?
w Definable rate management
w Integration with yield management products
w Frequent guest tracking capability
w Trend analysis
w CRS interface hooks (for larger properties)
w Web browser capability for online booking

Hints and things to look out for
w Ask vendors to explain the jargon
w Ensure programming tools give you access to data. Open database connectivity ­ determines the ease of your PMS to transfer information to third party products
w If you have a PC based system, you need a minimum 128 megabytes of ram
w Hardware platform should allow easy integration of diverse systems (POS, PABX, voicemail, etc)
w Beware promises. Have vendors give a written statement of when new upgrades will be available and set financial penalties for late delivery
w Ensure flexibility of the software to meet your future needs
w Recognize that US vendors may not make a priority of the needs of other markets
w How functional is the software? Does it combat the weaknesses of your old system
w Check vendor references from comparable properties. Find out what the vendor won't tell you and use it in your negotiations
w Develop your relationship with the vendor ­ get a face-to-face feel for how responsive the company will be to your needs after you buy

Product Value ­ what counts?
w Software functionality and flexibility should account for 40% of the value
w The supplier track record should account for 15%. Ask how many properties have installed the product, and how many sales they have made in the last 12 months
w The experience and qualifications of the installation team
w How long will it take for the vendor to resolve a problem? How qualified are their help-line staff?
w Note: the difference in hardware between the big brands and their clones is getting smaller
w Knowledge transfer: will the vendor share information in writing on how they fixed a problem to enable self-help?

Contract negotiation
w Get the vendor to list exactly what he is providing
w Draw up an implementation schedule with remedies for missed targets
w Consider inserting a 'sunset' clause to ensure the vendor keeps pace with competing products in the marketplace within a one year period
w Know in advance the items you are willing to concede
w Negotiate costs last ­ after the terms, training have been agreed
w Be aware of the items included in the cost ­ price of software per room, number of days allocated to training (and compare it with references)
w Negotiate payment schedule for maximum final payment ­ eg 25-30% deposit on signing contract, 25-30% on delivery, 25-30% when system goes live, 10% 'defect liability' period for 12 months

Finalising the negotiations
Final regulations should cover implementation schedule, detailed system configuration, remedy for missed targets, training commitment, levels of system performance, levels of online help provided, acceptance testing to ensure interfaces work, defining and testing recovery procedures, maintenance and support services.


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L'HÔTELLERIE Eurhotec Special Issue 8 February 2001


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