a small hotel advantages of pms benefits of pms in hotels

How a PMS Can Help Small Hotel Businesses


Property Management System (PMS) for Small Hotels| Hotelogix

A PMS (property management system) is an important tool hotel owners can use to their advantage to keep their hotel operations running smoothly, keep their staff in the know, and greatly reduce costs.

A small hotel may think they don’t need the benefits of a PMS system or may feel uncomfortable spending the money upfront for optional software. However, the truth is, small hotels need PMS software just as much as large corporate hotel chains do.

Challenges Faced by Small Hotels on a Day-to-Day Basis

A small hotel with limited help from software solutions such as a PMS may struggle in many capacities. Without an internal tracking system, overbooking could become prevalent. Overbooking is a costly mistake; not only that, but it also greatly impacts the guest’s experience, and negative word of mouth about your hotel could spread quickly.

Without integrated management software, even simple details like checking out and checking in become difficult to manage. Front desk staff would be expected to keep perfect tabs on when guests check in, when keys should be returned, and everything in between.

This allows for a lot of human error. Especially when you consider that hotel front desk staff frequently change shifts, what one front desk staff member is keeping tabs on may go on the back burner for the staff member who relieves them. Mistakes like this can cause revenue loss.

To that point, housekeeping staff in small hotels face a set of challenges too. Without an integrated management software, housekeeping staff needs to manually report to the front desk to tell them which rooms have been cleaned, which are next up, and which are not ready. This leaves a lot of room for human error and takes up precious time for the housekeeping staff.

Finally, the management at small hotels faces big issues with tracking profitability and operations without the use of integrated management software. Without a way for hotel managers to track KPIs, average bookings, and other important data, they won’t have much insight into how the business is performing and will miss out on opportunities to improve.

How Technology Can Help Streamline

Running a small hotel is no different than running a large hotel. The quality and quickness of service are held to the same standard by the guest staying there. Plus, staff at the small hotel may feel overwhelmed by the amount of work they need to keep up with, resulting in an unhappy workforce and turnover.

A hotel property management system can alleviate these issues, resulting in a much better experience for the guests and the staff, which ultimately results in more revenue.

A hospitality management software can streamline processes such as:

  • Check-in and check-out. When tracked by software, staff can look in the system to see exactly when a guest checked in, their anticipated check out, and more. This helps communication between shift changes and makes it easy for staff to keep tabs on the operations of the hotel.
  • Housekeeping. With a hotel mobile PMS software, housekeeping can simply update which rooms have been tended to, right from their phone. This allows housekeeping to move from task to task more quickly and allows staff at the front of the house to know in real-time which rooms are ready.
  • Management. Hotel managers need a hotel property management system to understand where the business has been, where it’s going, and what new trends are emerging. Using the data it has stored, a PMS can allow a hotel manager to pull reports such as history and forecast reports, revenue reports, reservation reports, housekeeping reports, and so much more!

It’s no wonder that the best small hotels use a PMS system to keep operations in check. By investing in hospitality management software to track and manage the hotel, they ensure their small hotel stays profitable for years to come.

What Is a PMS?

A hotel property management system (or PMS) is software that enables hotels to effectively organize, schedule, track, and manage their daily hotel operations. This software facilitates open communication between internal departments and makes it easier for all the parts of hotel staff to do their jobs efficiently.

When choosing a PMS software, there are essentially three types:

  • On-premise or server-based PMS. This type of PMS is typically installed using a local server at the hotel level and can be accessed by staff using desktop computers that are hooked up to the main server. For this type of PMS, the hotel needs to make a capital investment in servers, licensing fees, and more. The hotel would also be responsible for payment for upgrades and must have an IT team to manage the system.
  • Hybrid cloud hotel PMS. This is software that has evolved from the on-premise form to a web-based front-end that can be accessed by staff through a web browser on a computer, tablet, or mobile device. The server can be hosted locally (on the property) or remotely. However, certain PMS functions will remain on-premises only.
  • Web-native cloud hotel PMS. This kind of PMS can be accessed from anywhere, anytime using the web or mobile phone. It is hosted on a cloud (no server necessary) and this cloud can be private or public. Paralleled to the on-premise or hybrid cloud options, this software is more swift, flexible, and open. Plus, for hoteliers, upgrades are free with this type of PMS. This type of PMS offers open APIs for third-party solutions and is capable of being attached to multiple properties at once.

Overall, cloud-based property management systems offer the most flexibility and typically the least upfront costs, perfect for the small hotel looking to streamline its operations.

PMS Solves Small Hotel Pain Points

The best small hotels already know that PMS is a crucial portion of running their hotel to its full potential. The advantages of hotel PMS touch every part of the hotel ecosystem, from housekeeping to management, and provide invaluable insights and tools to keep the hotel running smoothly.

Hotel property management systems offer a robust array of services, such as:

  • Internal tracking of reservations, check-in, check-out, and more
  • Internal, real-time updates on housekeeping progression
  • Storing data to produce KPIs and reports to help small hotel management gain visibility into the business strengths and weaknesses
  • Integration with channel manager systems that post listings and update booked rooms in real-time across all platforms, including online travel agencies
  • Integration with revenue management software to feed key data to the revenue management system to gain further insight into where money is being lost or could be reallocated
  • Data insights about the life cycle of the guest’s stay and the key demographics of your guests to tailor the experience based on data received

The issues faced by small hotels, such as choppy communication between internal departments, delays in rooms being ready, or shoddy revenue management can easily be solved by PMS software. PMS software is a new development when you look at the overall history of hotel management and may scare some small hotel business owners away due to unfamiliarity with the concept.

However, small hotel management companies must keep up with today’s trends to continue to be profitable in this highly digitized and competitive hotel market. Investing in a PMS solution for the small hotel is the right thing to do. It allows even small hotels to function like large, corporate-owned hotels.

Plus, PMS software will help save money. Mistakes caused by human error or inefficient communication between departments are costly. Finding a remedy for a guest’s dissatisfaction with the hotel often involves giving away concessions or free nights at the hotel. When your hotel is managed seamlessly by PMS software, these mistakes cease to exist, improving guest experience and saving small hotels from costly mistakes.


It’s no doubt that PMS hotel software can help a small hotel reach new heights and improve revenue. Plus, it will aid staff in feeling more empowered in their roles, resulting in less turnover. PMS in the hospitality industry is not going away, so small hotels should take note and find a PMS solution that works to manage their hotel effectively. The positive change in operations efficiency will make running a small hotel a breeze!