When it comes to online booking in the hospitality industry, you want to make the process as painless as possible. That’s where hotel reservation systems come in. These platforms allow guests to make bookings online directly through the hotel, so they don’t have to deal with travel agencies or other third parties.
But to make the most out of these systems, it’s important that you understand how they work and the benefits of the hotel reservation system.
That’s why in this article, we’ll explain how hotel reservation systems work, the benefits of using one, and the features you should look for when choosing one for your business.
What is a Hotel Reservation System?
Hotel reservation systems are among current hospitality businesses’ most important technological investments due to the complex and time-consuming nature of hotel bookings. This technology can assist hotels in increasing direct bookings, without the commission costs associated with third-party online travel agencies.
Through a hotel booking system, customers can select their preferred room type, add-ons, and secure payment methods from the hotel’s own website.
A hotel booking experience should be quick and easy, or the traveler might decide to stay somewhere else. For hotels to meet this expectation, traditional processes must be replaced by a system that allows guests to book a room whenever they want using their preferred channel.
Over the past ten years, online hotel reservations have increased by 50%, which makes the importance of a simple online booking process all the more important. Reservation systems are considered to be a secure way for visitors to book their desired hotel hassle-free. Booking through the hotel booking engine is similar to booking through an online travel agent, but there is no additional fee.
Furthermore, online hotel reservation systems usually result in a 20% reduction in hotel operating costs compared to other conventional booking methods.
Types of online bookings
There are three types of online bookings:
- Non-guaranteed reservations: Many hotel booking websites allow pending reservations. It indicates that visitors can make a reservation without paying. If something changes, they may be able to cancel the reservation quickly. If a guest cancels, hotels that accept this type of reservation may lose money. The hotels, however, can manage the availability without taking anything from the guests.
- Paid bookings: A paid booking involves clients paying upfront for their reservations, which is also called an immediate or guaranteed booking. This type of reservation is more beneficial to hotels that limit cancellations. A major advantage of this type of booking is the streamlined check-in process at the hotel front desk.
- Confirmation of inquiry: This is simply a tentative reservation, and it serves as a placeholder for notes about requests and expected delivery dates. Clients will receive a quote or confirmation once hotels load queries.
How Does a Hotel Reservation System Work?
The reservation management software that integrates with your hotel website and social media effectively automates online booking so visitors can make reservations quickly and simply without having to navigate a different website. Online agents can access the hotel’s availability by connecting the management and reservation systems.
These kinds of reservation systems are employed in the hospitality sector to enable customers to make their own reservations online. It smooths the booking process and makes collecting data for your system simple. It also boosts productivity by automating information syncing throughout your entire operation. This software is essential for increased room revenue and worldwide exposure.
Common features of a hotel reservation system
Some of the features that you’ll find in a hotel reservation system include:
- Hotel Search and Book Functionality
- Reservation Management
- Channel Management
- Hotel API Integration
- Back-office management
- Multiple-currency feature
- Multi-Language feature
- Payment Gateway Integration
- Mobile-responsive design
- Detailed Reports
Why Do You Need a Hotel Booking System?
Hotel reservation systems are a requirement for small or corporate businesses in today’s hospitality industry. You will lose a lot of business if you don’t offer this option, since more and more travelers make their hotel reservations online.
There are several other reasons why you should consider purchasing a hotel reservation system, not the least of which is that it gives you an advantage over your competitors that don’t use these systems.
Although most hotels switched to computerized reservation systems years ago, many small hotels, hostels, inns, B&Bs, and short-term rental owners still use manual procedures. Due to this, they are at a significant disadvantage compared to their more technologically advanced competitors.
For an establishment to operate effectively, a reservation system is essential regardless of its size. The following are some of the advantages of using an online booking system and why it is necessary:
Improve your efficiency
Reservation systems increase productivity because they instantly update availability across all platforms. This reduces the possibility of overbooking and minimizes the administrative workload of the front desk person.
Furthermore, an online booking system can simplify processes like emailing reservation confirmations so your personnel can focus on other essential responsibilities like customer service. Because clients generate their reservations, all the necessary information is already in the system; all reception staff needs to do is prepare for the guests’ arrival. A successful and effective pre- and post-trip operation depends on automated procedures.
Gain a competitive edge
Staying online in a digital world is a no-brainer. Smaller hotels, however, often rely on mediators to get some financial benefits because they don’t invest directly in booking management software.
As most consumers now make their reservations online, being able to accept reservations online gives you an advantage over companies that have not yet made the technological investments necessary to enable this. Direct reservations through the hotel’s reservation system allow them to offer guests cheaper rates since they are not required to split profits with third parties.
A strong branding message can also be incorporated throughout the customer journey, which inspires trust and ultimately results in reservations. Booking engines have the advantage of mirroring your hotel advertising within your unique URL, giving clients a sense of security and encouraging them to book online with you. Competitors will not have this advantage if they don’t have their own booking system.
Reduce human errors
When it comes to guest credentials and contact information, your system should be error-free to prevent costly misunderstandings. A reservation system that is linked to channel managers minimizes the chances of overbooking caused by human error. By reducing human error, quality service can be provided and time can be better spent handling other tasks instead of fixing errors.
Collect data more easily
An online booking system is one way to ensure that data gathering is simple. Gathering customer data is essential for marketing reasons. Using booking data, you can discover your visitors’ preferences for services, their origin, and how many trips they’ve taken. By modifying your marketing strategies based on this data, you can improve visitor satisfaction and customer retention.
Manage rewards
With a reservation system, you can keep track of your reward clients’ visits and give them the perks they deserve. Guests can keep track of their awards by creating a separate login for themselves. Incentives will be managed automatically from that point on, requiring minimum maintenance from the workers.
Create a bond with the guests
Most OTAs do not disclose the guest’s contact information when there is a confirmation for a booking. This data is collected when visitors make reservations on your website. Your website collects this information when visitors make reservations. Using this information and email automation tools, you can ask them to make travel arrangements, upgrade their room, or order luxury items.
Give your guests peace of mind
According to Cloudbeds’ Travel Trends Report 2022, travelers continue to place high importance on flexibility with date changes and cancellations. Travelers get peace of mind when they make a reservation through your website since they can directly contact your hotel to make adjustments or cancel.
Manage prices in real time
Your reservation system manager will allow you to update prices and availability across all booking channels. You can improve availability, keep rates comparable, and avoid pricing mistakes, overbookings, and lower sales.
Automate the way you process credit card payments
A payment gateway that integrates with your booking engine and automatically attaches credit cards reduces input errors, payment delays, and refunds.
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Features You Want to Look For in a Hotel Reservation System
The following are some important factors to consider when moving toward an online reservation system:
- Cloud-based platforms are easy to set up and maintain, and are accessible anywhere you have an internet connection.
- A hotel PMS integration allows automatic guest information changes instead of manual data transfers.
- Marketing, pricing, and inventory can be improved by two-way communication between a channel manager and a revenue management system.
- A rate comparison tool integrated into the booking process provides visitors with reassurance about the pricing they see.
- Analyses and reports that provide valuable data insights can help you understand buying preferences and behaviors.
- With language and price functionality, international visitors are able to make reservations in their own language and currency.
- Safe systems comply with privacy laws and guarantee the security of customer data and payments.
- A hospitality-trained customer service representative will assist you with onboarding, coaching, and technical support.
Other Hotel Systems You Can Try
Hotel reservation systems are not the only tools available to upgrade the efficiency of your business. If you are looking for ways to improve your hotel that blend well with a hotel reservation system, check out these options:
Collaborate with Online Travel Agents
A high-quality hotel reservation system should be able to provide availability through online travel agencies to maximize reach and draw in as many bookings as possible. In order to accomplish strategic objectives, leading OTAs must be identified. Booking.com, Expedia, and TripAdvisor are examples.
Integrate your Reservation System with RMS
Using a hotel reservation system effectively requires a top-notch revenue management solution. A system like this can assist you in monitoring important revenue indicators and gaining information about your competitors. The RMS will also provide hotel rate advice based on facts and figures.
Property Management System
A property management system (PMS) can be an ideal method to add to existing hotel technologies, such as your hotel reservation system. A competent PMS can help you with numerous daily operations, including processing payments, performing performance analyses, and other administrative tasks.
Conclusion
There are many benefits to using an online reservation system, including increased productivity, reduced human error, data gathering and incentive administration, and gaining a competitive edge.
In this day and age of technological advancement, hotel reservation systems are becoming a necessity for everyone. Using it, you can maintain occupancy and ensure everything is going according to plan without much assistance from hotel staff. By devoting less time to administrative tasks, employees will have more time to provide exceptional service. As your hotel management system handles customer queries, you will rarely need to deal with customers on a daily basis.
In today’s world, the internet connects all of us, and if you don’t have an online presence, you will miss out on many opportunities.
