Avoid expensive commissions

To gain higher profit on bookings, hotels need to convert more bookings through their own site. Providing a solution that is efficient enough to beat the competition is challenging for many – and investing in expensive hotel booking software isn’t possible for everyone.

This problem is bigger among small and mid-sized hotels. Many of them are dependent on third-party sites to secure bookings and need to sell their rooms with very low margins. But it’s also a current issue for the bigger hotel, who wants to increase profit and grow independently.

When you invest in a cloud based PMS like Nitesoft, a seamless booking engine is included and integrated into your own site. This will help you convert more bookings on your own.

Win more bookings

With a well integrated and user-friendly booking engine, you can optimize conversions on online bookings. A modern PMS provides you with a solution that has been designed to neatly fit into your site’s current style. When entering the booking engine, the environment feels the same as the rest of the site. Making it comfortable and familiar to guests.

Recurring guests can create an account and sign in directly at the site using Facebook or another social media. No need to remember passwords or usernames, all your guests need to do is click. By creating an account, all their personal information is saved on your site and it’s easy to make a second booking without having to fill in excess forms. All they need to do is to choose a room and method of payment. It’s also possible to make the payment directly through the booking engine.

Even for first time users, a cloud based PMS will provide a booking engine that can optimize conversion. It’s been shown that guests mainly care about two things when making a reservation – the price and the design of the site. So it’s crucial to have a booking engine that is neat and well integrated into the site. It should be aesthetically good looking and create a feeling of credibility. So your guests trust you with their reservations – instead of heading over to a third party.

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In the start of Oaky, we used to think about which services hotels would offer. But we had no idea to what extent creative hoteliers would keep surprising us.

Traditional upselling has always been driven by high commissions. As a result, hoteliers have been hindered in their creativity to enhance the guest experience.“I’d love to offer services with a lower margin too, but I can’t if my upsell partner charges a 20% commission.” concluded a GM to me last week.

With today’s traveller expecting a personalised experience, upsell is not about nickel-and-diming anymore. It’s about putting the guest in control of taking any deal or service that the hotel wants to offer. Along with this new freedom – hoteliers can make their guests laugh, smile and create a buzz around their brand even before check-in.

What about that Free pizza?

Teleport Hotel Amsterdam wanted to reward their guests for saving the environment. The answer was “Save the planet with Free Pizza”. Staying more than 2 nights and don’t need your room cleaned? Take this deal and get a free pizza! Last month it was ordered 45 times. That’s saving 45x cleaning costs and not to forget the 45 guests that love the pizza perk for a room that wasn’t even that dirty. Well done Teleport!

And then we have an unexpected companion.

Famous for their personalised service, Van der Valk Brussels Airport was quick on using Modern Upsell to surprise and delight their guests. Cue “Fons the Goldfish”. For €3, with all profit going to charity, Fons will keep you company during your stay.

With deals like these, it becomes clear how Modern Upsell is changing short-term revenues to long-term profits. It’s a change that is awesome to be a part of.

We’re looking forward to keeping being surprised by our creative partners!

Erik Tengen, Co-Founder, www.oakyapp.com

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Communicate better with less effort

With a cloud based PMS, you can streamline your communication with automatized emails and text messages. This is great in regard to converting more bookings since it lets you approach potential guests with customized reminders on why they should pick your hotel.

Guests are prone to book a couple of different hotels when planning a vacation, making the final pick a few weeks before arrival. By staying in touch before the actual arrival, you can show them that you are a service minded and modern hotel. Since many hotels fail to communicate with future guests, it also makes you stand out among your competitors.

These automated mailings can be customized depending on guest and purpose. While some are meant for converting bookings, others can be used for staying in touch with guests after the actual stay. Maybe you want to reward recurring guests with a 10 % discount or draw their attention to a big event taking place in your town in a couple of months – which attendants should require a hotel stay. Most of all, by continuously communicating with your customers, you establish yourself as a trusted option for their next vacation.

Make it personal

But what about getting personal with the guests? Is it at all possible with this type of streamlined communication? Our answer is yes, of course! It can actually even be made more personal than your previous form of mailings. With automated communication, you can customize emails and text messages using guests names. You can for example thank a guest for the stay with an email saying “Hello Arnold, we hope you enjoyed your stay with us. Have a safe trip back to Helsinki!”.

If you for example want to provide your VIP:s with a bottle of champagne on the house, you can design a template for that as well. That way you never have to worry about forgetting to pay extra attention to important guests.

A cloud based PMS like Nitesoft, also comes with a function for self check in. This enables guests to check in and out themselves, using their own mobile device or a touchscreen at the front desk. With self check in, your employees don’t need to be held up by the front desk at all times. Instead they are free move around the hotel and interact with guests on a more personal level – without a screen getting in between.

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The hospitality industry is far behind other industries in digitization. First, the hotels were fooled by the telecom companies who installed the wifi for free against the guest paying directly to the telecom company. The development went so fast that the agreements suddenly were extremely expensive and bad. Cheated. Then came the OTAs who wanted net prices, which the hotels perceived as free. Really cheated this time, which is apparent only now. The great topic of discussion in technology right now is artificial intelligence and voice control, for example Siri from Apple, Bixby from Samsung, Google Assistant, Watson from IBM and Alexa from Amazon. Several exhibitors already have solutions for how to speak with the hotel room or with other systems used in a hotel. Do not buy any voice-controlled systems! The technology is not well developed yet, regardless of what the vendor says, while everyone competes on who will take the game on voice control.

A lecturer gave the answer as to why so many hotels find it hard to keep up with developments. “The hotel director was not born in the digital world”. There are certainly some hotel directors that are involved, but not the majority. The changes in the next few years will be greater than the last ten years. It is now going to retire or to keep in the future.

There is much talk about “Big data”, ie. How a hotel will be able to use all the data they collect in their systems. There are good systems that help analyze data so that the hotels can make better decisions, which in turn increase profitability. Focus is shifted from maximizing gross revenues to net income (after cost of earning revenues). In order to successfully obtain the right information, competence is required in computer science, analysis and programming or that the hotel finds a supplier with the right skills. Whether the hotel does this on its own or with a system vendor, expect the cost to be high. The high cost is due to the need for specialist competence and the right data. Marriott told them that in a decision-making model they built on their own, they needed to buy data for almost a million.

There are no cheap solutions that work, but there are plenty of newly started companies who think they have found the right formula to set the price of the hotel room. One of the PMS companies worked to integrate 20 new startups, all of which are all about price optimization. The audience in a seminar was asked how often they change their prices. If they only accept the revenue system’s recommendation, they do not do their job meant the lecturer. Each revenue manager will implement the hotel’s strategy and change the strategy’s prices at least once a day for at least 90 days ahead. The hotels change their prices far too rarely and also make mistakes when they only follow their competitors’ price changes. Here the hotels have a lot to learn.

If the hotels are to succeed in paring the ever higher costs of getting the bookings, they must change the focus to the income after deducting the cost of getting the booking. It starts by finding out what the cost of getting the reservation is which is significantly more complicated than just looking at the invoices. The next step is analysis to find a revenue that leads to higher results. The hotels that do not change focus will see their profitability curtailed over the next few years.

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Easy to learn and put to use

We are witnessing an ongoing paradigm shift in the hotel industry, where cloud based systems are starting to play a bigger role. Built with the user in mind, a modern PMS is both easier to learn and to use. Saving you money as well as making your employee’s day to day work more comfortable. When you hire new staff members, you don’t have to worry about wasting time educating them on how to use the system.

A cloud based system like Nitesoft can be learned in less than one day, whether the learning takes place online or at the hotel. Therefore, your new employees can start working almost right away. This makes the process of finding, hiring and educating new staff less complicated. Also, when your employees have learned how the system works, it’s easy for them to keep up with new updates. So when a new version of the PMS is launched, you don’t need to send all your employees on a costly course to learn the new functions.

Why getting in the game is crucial

With free updates, a cloud based PMS is constantly progressing, providing you and your staff with the latest technology. This way you can give your guests everything they deserve and at the same time stay ahead of the competition. Because even though many hotels are fast in the process of switching to a cloud based system, we can still estimate that 85-90 % of the industry is stuck with outdated solutions. Some are still even using paper and spreadsheets!

Not keeping up with accessible functionality is holding the business back. The change taking place right now is to big to ignore. In our opinion, there’s only a matter of time until all hotels are managed with a cloud based PMS. Are you thinking about making the switch? We strongly recommend you to consider the potential profits a modern PMS could provide.

By giving your guests more flexibility with functions like self check in, you might be able to compete for guests you thought was totally out of reach. With the neatly designed booking engine – included when you invest in a cloud based PMS – conversion rates on online bookings are naturally higher. This makes it possible for your hotel to compete with third parties like for example Expedia. Are you up for the challenge? You competitors sure are!

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Access to hotel data from all locations

A cloud based PMS can be used from any location and any device, as long as there’s internet access and a browser available. You no longer need to install different software on multiple computers and locations to keep the business going.

All employees can sign in to the system via individual accounts with user rights depending on their position, for example housekeeping or manager. When you or your staff need to access hotel data, you can do so regardless if you’re at the hotel or not. All you need to do is to sign in to the system.

This makes the work day more efficient since it’s effortless to stay on top of tasks. If you find yourself walking around the hotel, you don’t need to run over to the front desk to check if a certain guest has arrived. You can just sign in to the system from your mobile device of choice and have a look.

More efficient communication between staff members

The system also provides an easy and efficient forum for communication, with staff as well as guests. This makes it possible for employees to notify each other regarding tasks that need to be handled. If a guest for example asks for room service, it can be communicated and taken care of through the system.

When housekeeping is done cleaning a room, they can alert the front desk by using the system, letting them know that the room is ready for a new guest. Internal communication is made more efficient and processes are streamlined with a cloud based PMS. This makes the daily tasks easier for staff and provides guests with better service.

Less crowded guest experience with self check in

As we have mentioned before, a cloud based PMS also comes with a self check in function. This means that guests can manage to check in and out by themselves, through their mobile device or at a touch screen by the front desk. Guest are free to arrive and leave the hotel without depending on any opening hours.

They can also choose if they want to interact with staff or not. When feeling stressed or tired after a long journey, many people can prefer to handle the check in themselves. This reduces lines and time-consuming waiting. When the lobby is free from crowds with people, it also creates a better experience for guests arriving at the hotel.

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How does self check in work?

At the arrival day, guests can usually choose between two different options for self check in.

1. Guests receive a text message on the arrival day, containing a key code that can be used to access the hotel room. They are then free to enter their personal information and check in with their phone or tablet
2. Guests can also check in using a touch screen by the front desk. They then enter their personal information and get a key code directly from the touchscreen.

Both options are user-friendly and can be done in only a few clicks. Payment can be done online or at the touch screen by the front desk. Guests can also use both options when they want to check out. With a self check in, guests are free to choose if they want to make contact with staff or not. When in a hurry or tired after a long trip, it can sometimes be preferable to manage the check in without outside help, not feeling dependent on anyone else.

Why is it better and more profitable?

With a modern system like this, you can minimize lines and time spent at the front desk. The last generations PMS usually requires a longer time for the actual check in process, which causes guests to gather in front of the front desk during popular check in and check out hours. Not only is this inefficient – it can also create irritation among guests and a less service-minded customer experience. With the old system, staff is bound to the front desk and focused on the screen, sometimes even to busy to make eye contact.

When the check in process is administered by the guests themselves, employees are free to move around the hotel. They can interact with guests on a more personal level, asking how they are experiencing their stay, sharing tips on upcoming events nearby and special offers in the restaurant. Increased conversations between employees and guests also creates natural opportunities for upselling.

Regardless of if you run a smaller or bigger hotel, self check in will streamline your processes and make it possible to manage more guests per minute or hour. Also, your guests are no longer restricted by the front desks opening hours, which makes it easy for them to arrive and leave the hotel when they feel most suitable. A more efficient way to care for your guests – and at the same time make more profit!

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What change can we expect and what is the point of moving over to the Cloud?

Cloud Based solutions are generally offered on a Software as a Service (SaaS) basis. A right to use license to access the software application via the internet. You don’t need to host, maintain, or upgrade a server. You have access to your data in real-time, typically from any type of device, whenever you need it. You pay for a subscription to have access to the PMS application and your data. Running applications through the internet actually reduces the security risks and vulnerabilities associated with servers tied to an on-premise PMS. Also, the cloud now provides a more stable production with much less down time than an on-premise server can do.

The change to cloud based PMSs is also becoming more frequent for Hoteliers with a legacy solution already in use. As SaaS PMS solutions offer increasingly comprehensive functionality, they now outperform legacy solutions in many aspects. Web technology allows more flexibility. New sophisticated requirements can more easily be implemented in the new technical platforms and architectures.

Most cloud systems enable easy mobile accessibility, and many offer native mobile apps. But this ease of access also comes with greater security considerations, especially if employees are accessing company files on their personal mobile devices. Such security issues are, however, well taken care of by the leading SaaS PMS providers.

Web based design and user interaction drastically reduces need for training. Any staff used to the web will find it intuitive, easy and a joy to interact with a modern user web based interface. Use of system is more reliable and cost for maintaining the application is generally lower than for the comparable on-premises server solutions.

Legacy PMS providers have over the years accumulated a large number of integrations, outnumbering by far new Cloud based solutions. But the advantage is rapidly being reduced as one of the big benefits of a cloud platform is how easy they are to integrate. Because they are built to run on the internet and some with open API capabilities, they integrate much easier than their local-server alternatives, in particular to new hotelier applications that are now introduced and integrated to PMSs.

The cloud presents the hospitality industry with a revolutionary way of doing business better, more efficiently, and cost-effectively.

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• Higher level of automation
• More effective operational support
• Flexibility in all aspects
• Support a Hoteliers Key Business Processes
• Migrating legacy systems

We wanted to change the way we book hotels, consume information, and how guests are entertained during a stay. It will continue to affect the way hotels operate and engage with guests while also generating and stimulating unutilized revenue streams.

Our team needed a year to get a first pilot build and to replace the legacy system that effectively and with few exceptions been in the way for new innovative business concept. We architected the system to allow for future enhancements and adaptations and we already new from start that it will take years to catch up with the breadth of business requirements that hoteliers have around the world. Sweden is the ideal place for these type of start ups we represent. Scandinavians and in particular Swedes are early adopters and always willing to quickly take on new ideas and challenges. If it work here, it stands a good chance to become successful in any other markets.

We named it Nitesoft, a web-based, mobile-enabled, comprehensive solution with key capabilities to meet the needs of hotels of various sizes and complexities. Nitesoft proved to work unexpectedly well in its first version. Sooner than we thought we had some new customer with a set of requirements that needed implementation. With several new hotels and a long list of requirements to be met, we needed time to implement and get our new hoteliers up running. It was tough times, with more problems and work than expected. This was instrumental in proving that Nitesoft was eended well architected, robust and fit for supporting a variety of needs.

We strive for product and service excellence and see it as a never ending process to keep improving.

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BUT…

Most hotels have no order at all in their hotel management systems. Recently, I spoke with a well-known hotel that wanted to create a campaign by sending an electronic newsletter to all its previous guests. It was found that only 15% of the guests’ e-mail addresses were registered in the hotel system. It may be worth making the mailing anyway, but there should have been e-mail addresses for at least 80% of historical guests.

If the hotel has high quality data in their property management system (PMS), they should be able to access and process the data instantly. Sometimes high quality data can have a higher value than other parts of the hotel.

Let’s make a comparison over time. Once upon a time, the major booking systems (GDS) launched by airlines had higher company values then the actual airlines. Today, OTAs are higher valued than the major mega hotel chains. What’s in the GDSs and what’s in the OTAs system? The answer is that the only thing have some value is the information about the bookings, which in turn is information about the travelers or guests. All this information is used to generate even more bookings. This is how you develop your business and revenues regardless of industry.

To me it is completely unthinkable that the hotels doesn’t think it is important to gather the right information about their guests and to ensure that everything is stored correctly in the hotel management system. Perhaps the hotel’s management is unable to lead its employees to carry out their duties correctly and to the right quality.

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