Channel Management Software (CMS) has and continues to revolutionise today’s hotel industry. Increasingly it is no longer a question of whether hoteliers wish to use these systems, but whether they can exist in an increasingly competitive and complex industry without them.
The key point is that an effective and well implemented CMS simplifies and manages the complexities of day to day operations, and this frees up higher level staff to focus their work on more strategic, long term profitability based business decisions.
Of course, using software that provides reports which can feed into such decisions is crucial, and this too is another area in which CMS can streamline and create data with identifiable goals and weaknesses, enabling operational change on the most profit crucial elements of work.
But some developers, seeking to capitalise on this burgeoning area, are creating free or cheap tools, which offer little of the functionality top end hoteliers require. Indeed, writing on tnooz.com, Patrick Landman, CEO of Xhotels, argues:
“For years we have seen a race to the bottom in the rapidly developing world of channel management software and new channel management systems seem to pop up like mushrooms.
“There are at least 50 different providers active in the market space, and each system seems to come with a lower price. Many existing players in the field participated in a pricing war and nowadays there are some standalone channel management solutions pretty much available for free.
Whilst many of these tools may seem incredibly cheap, most of them are performing far below hotelier expectations.”
Landman’s view hints that a truly effective CMS is going to cost, and that the more money is spent on it, the larger the returns and the business benefits it is likely to provide.
Of course, this is not always necessarily the case, but the key element to bear in mind with CMS is that it is an immensely complex and complicated tool to develop. Software which comes for free is by definition unable to offer the immersive and overarching sophistication that comes with a paid solution from a reputable player, who’s operated in the field for some time.
Indeed, the pertinent question may not be; ‘Channel Management Software: The Technology Every Hotelier Should Garner,’ but rather; ‘Channel Management Software: The Technology Every Hotelier Should Sufficiently Budget For.’
eRevMax’s suite of CMS integrates and offers bespoke and well-targeted functionality to ensure the needs of hoteliers can be met at a realistic and honest pricing point. Operating in this way ultimately supplies a higher quality product with better backup and customer support systems and far fewer headaches at the end of the day.
It can be tempting to opt for the cheapest solutions available in any industry, and often when there is a step change in the market, like CMS, delivering results for the lowest internal cost can seem a key driver.
But it’s really worth taking a moment to consider what CMS does, what it must do for you, and how much money it is really worth putting in to do this properly.