Skip to content
Contact us

Hotel Property Management Systems (PMS) and Business Continuity

Picture of William Tygart

Assessing the Resilience of PMS in the Face of Disruptions

The hospitality industry is particularly vulnerable to disruptions. Hotels face a myriad of challenges that can significantly impact their operations and revenue streams, from natural disasters and pandemics to cyberattacks and economic downturns 1. In this dynamic environment, the resilience of a hotel's Property Management System (PMS) is paramount. A PMS is the central nervous system of a hotel, managing everything from reservations and guest check-in/check-out to housekeeping and billing. When disruptions occur, a robust and reliable PMS can be the difference between weathering the storm and succumbing to its effects. Business continuity is an organization's ability to maintain its essential operations during and after a disaster or outage 2.

This report delves into the critical role of PMS in ensuring business continuity for hotels. It examines the impact of various disruptions on hotel operations, explores how PMS can be leveraged to mitigate these impacts, and provides insights into key features and best practices for enhancing PMS resilience.

The Impact of Disruptions on Hotel Operations

Hotels rely on a complex interplay of systems and processes to function effectively. Disruptions can manifest in various forms, each with its unique set of challenges:

Natural Disasters

Events like hurricanes, earthquakes, and floods can cause physical damage to hotel property, disrupt transportation networks, and lead to widespread power outages. These disruptions can force hotels to close temporarily, leading to significant revenue losses and reputational damage.

Pandemics

The COVID-19 pandemic starkly demonstrated the vulnerability of the hospitality industry to global health crises. Travel restrictions, lockdowns, and heightened health concerns resulted in a dramatic decline in occupancy rates and forced many hotels to adapt their operations to ensure guest and staff safety 3.

Cyberattacks

In an increasingly digital world, hotels are susceptible to cyberattacks that can compromise sensitive guest data, disrupt online booking systems, and even cripple essential operational systems. The financial and reputational damage from such attacks can be substantial.

Economic Downturns

Recessions and economic instability can significantly impact travel demand, leading to reduced occupancy rates and lower RevPAR. Hotels need to adapt their pricing strategies and operational efficiency to navigate these challenging periods.

Technological Disruptions

The rapid pace of technological advancement can also be a source of disruption. Hotels need to stay abreast of new technologies, such as artificial intelligence, cloud computing, wearables, the Internet of Things (IoT), mobile apps, and blockchain technology, and adapt their systems to remain competitive and meet evolving guest expectations 4. Disruptive innovation can be a wake-up call for hoteliers to turn challenges into opportunities and competitive advantages 5.

These disruptions can have cascading effects on various aspects of hotel operations:

  • Supply Chain Disruptions: Hotels rely on a complex web of suppliers for essential goods and services. Disruptions can lead to shortages of food and beverages, linens, and maintenance supplies, impacting guest experience and operational efficiency 1.
  • Increased Operating Costs: Disruptions often necessitate increased spending on security measures, emergency repairs, and alternative resources 1.
  • Staffing Challenges: Disruptions can lead to staff shortages due to illness, travel restrictions, or displacement. This can impact service quality and operational efficiency 1.
  • IT Outages: Disruptions to IT infrastructure can severely impact hotel operations. The reliance on reservation systems, hotel room door locks, and point-of-sale systems makes these functions particularly vulnerable. When these systems fail, it causes significant inconvenience for guests and operational difficulties for staff 6.
  • Guest Dissatisfaction: Disruptions inevitably lead to inconvenience and disruptions for guests, potentially damaging the hotel's reputation and future bookings.

The Importance of Staff Training and Preparedness

While a robust PMS is essential for business continuity, it's equally important to have well-trained staff who can effectively utilize the system during a crisis. A robust PMS is only as effective as the staff who use it, and proper training is crucial for ensuring they can leverage the system's capabilities during a crisis 7. An effective business continuity program allows for proactive identification of operational risks and the ability to mitigate and manage those risks, including uninsurable risks such as damage to image and reputation 9. Key aspects of staff training include:

  • Understanding PMS Functionality: Staff should be thoroughly familiar with all aspects of the PMS, including reservation management, guest check-in/check-out procedures, reporting features, and communication tools.
  • Emergency Procedures: Staff should be trained on specific emergency procedures related to the PMS, such as data backup and recovery, switching to offline mode, and utilizing communication tools 7. For example, they should know how to identify the nature of a crisis, follow evacuation routes, operate safety equipment, and report incidents.
  • Effective Communication: Training should emphasize the importance of clear and timely communication during emergencies to avoid confusion and ensure everyone is working together 7.
  • Scenario Planning and Simulation: Conducting regular drills and simulations can help staff practice their responses to various disruption scenarios, ensuring they are prepared to act quickly and effectively in a real crisis. This includes practicing teamwork and coordination, as crisis situations often require different departments and teams to work together 7.
  • Risk Assessments and Plan Testing: Staff should be involved in conducting regular risk assessments to identify vulnerabilities and participate in testing the business continuity plan through simulation exercises 10. This proactive approach helps ensure the plan's effectiveness and keeps staff prepared.

The Role of PMS in Business Continuity

A robust PMS can be a critical asset in mitigating the impact of disruptions and ensuring business continuity. Here's how:

  • Data Backup and Recovery: A reliable PMS should have robust data backup and recovery mechanisms in place. This ensures that critical guest data, reservation information, and operational data are protected and can be quickly restored in case of system failures or data loss.
  • Cloud-Based Systems: Cloud-based PMS solutions offer significant advantages in terms of business continuity. Data is stored securely in the cloud, accessible from anywhere with an internet connection. This allows hotel staff to continue operations even if the physical hotel is inaccessible 11. Cloud services also offer more flexibility, scalability, and cost-effectiveness than traditional disaster recovery methods 12. The dynamic nature and versatile applications of cloud computing have changed how organizations approach IT infrastructure 13. Cloud-managed services can help enhance revenue, reduce risk, and maintain brand equity during disruptions 12. However, it's crucial to remember that even with cloud-based PMS providers, hotels are responsible for understanding backup and security protocols and ensuring compliance with industry standards 14.
  • Real-Time Data Access: Modern PMS systems provide real-time access to critical operational data, such as occupancy rates, revenue figures, and guest preferences. This allows hotel managers to make informed decisions quickly during a crisis, such as adjusting pricing strategies, reallocating resources, or communicating with guests.
  • Integration with Other Systems: A well-integrated PMS can connect with other essential hotel systems, such as POS systems, revenue management systems, and guest communication platforms. This seamless flow of information enhances operational efficiency and allows for a coordinated response to disruptions. This is especially important for managing modern reservations, which often involve interconnected elements such as airport transfers, dining reservations, and bookings for activities and amenities beyond the room reservation alone 16. When disruptions or surges occur, integrated systems allow staff to quickly adjust guest reservations and itineraries without manually connecting insights across multiple systems 16.
  • Mobile Accessibility: Mobile-enabled PMS solutions allow hotel staff to access critical information and perform essential tasks from their smartphones or tablets. This is particularly valuable during disruptions when staff may be unable to access traditional workstations.
  • Communication Tools: Some PMS systems include built-in communication tools that facilitate efficient communication with guests, staff, and other stakeholders during a crisis. This can be crucial for providing updates, managing expectations, and coordinating responses.

Business Continuity Features Offered by Leading PMS Providers

Leading PMS providers are increasingly incorporating features specifically designed to enhance business continuity. These features include:

  • Disaster Recovery Modules: These modules provide comprehensive tools for data backup, system recovery, and failover to alternative systems in case of disruptions.
  • Redundancy and Failover: Cloud-based PMS solutions often have built-in redundancy, with data replicated across multiple servers and locations. This ensures that even if one server fails, the system remains operational.
  • Offline Functionality: Some PMS systems offer limited offline functionality, allowing basic operations to continue even during internet outages.
  • Emergency Communication Tools: These tools facilitate mass communication with guests and staff, providing updates and instructions during emergencies.
  • Real-Time Reporting and Analytics: Advanced reporting and analytics dashboards provide real-time insights into key performance indicators, helping hotels monitor the impact of disruptions and make informed decisions.
  • Risk Assessment and Response Planning: PMS systems can facilitate risk assessment and the development of response plans by providing tools for identifying potential threats, analyzing vulnerabilities, and creating action plans 2.
  • Cybersecurity Frameworks: Many PMS providers integrate cybersecurity frameworks to defend against cyber threats, which can be as detrimental as physical disasters 17. These frameworks may include firewall protection, intrusion detection systems, and regular security audits.
  • Business Continuity Solutions and Services: Several companies specialize in providing business continuity solutions and services specifically for PMS systems. Examples include Axcient, which offers automated verification of backups and proactive recovery runbooks, and Veritas Technologies, which uses AI and machine learning for data protection 18.

Leveraging PMS Data for Improved Decision-Making During Crises

PMS data can be a valuable resource for making informed decisions during crises. Here's how:

  • Predicting Potential Disruptions: By analyzing historical data and trends, PMS can help identify potential disruptions, such as seasonal fluctuations in demand, local events that may impact occupancy, or recurring maintenance issues. Predictive models can leverage historical sales data, market trends, and external factors such as seasonality and economic conditions to generate more accurate demand forecasts 19. Analyzing data from sources like returned medical devices and explants can also provide predictive information on potential product issues 20.
  • Monitoring the Impact of Disruptions: Real-time data on occupancy rates, cancellations, and revenue can provide valuable insights into the immediate impact of a disruption. This allows hotels to adjust their strategies and allocate resources accordingly.
  • Guest Communication and Support: PMS data can be used to identify guests who may be affected by a disruption, allowing hotels to proactively communicate with them, offer assistance, and manage expectations. Real-time communication tools within the PMS can facilitate instant updates and coordination among staff and stakeholders 21.
  • Optimizing Resource Allocation: During a crisis, resources may be limited. PMS data can help hotels optimize resource allocation, such as prioritizing essential services, adjusting staffing levels, and managing inventory.
  • Real-Time Decision-Making: PMS data, combined with human intelligence and information and communications technologies, enables effective real-time decision-making during crises 22. Real-time data analytics and visualization tools within the PMS can help identify patterns, predict potential issues, and guide critical actions 23. Automated workflows can further streamline decision-making and accelerate response times 21. Studies have shown that organizations leveraging real-time analytics are five times more likely to make faster decisions during crises and can improve their response times by up to 30% 23.
  • Quick Detection and Mitigation: An important element in mitigating the impacts of most disruptions is quick detection 25. PMS data can provide early warnings of disruptions, allowing hotels to take proactive steps to minimize the impact. Data mining techniques can be used to predict disruptions even before they happen by identifying correlations between various incidents and impending events 26.

Case Study: Hotel de Sterrenberg

The Hotel de Sterrenberg in Otterlo, Netherlands, successfully navigated the disruption caused by an inefficient PMS by implementing the Amadeus Property Management – IDPMS. Their previous system caused frustration and tension among staff due to its slow speed and limited functionality. Upgrading to the Amadeus IDPMS resulted in immediate improvements in daily operations, including faster reservation processing, a more intuitive interface, and increased staff satisfaction 27. This case study demonstrates the importance of a robust and efficient PMS in ensuring smooth hotel operations and guest satisfaction, especially during times of change or disruption.

Conclusion

In the face of increasing uncertainty and potential disruptions, a resilient PMS is no longer a luxury but a necessity for hotels. By investing in a robust PMS with comprehensive business continuity features and ensuring that staff are well-trained and prepared, hotels can significantly enhance their ability to navigate challenges, minimize losses, and maintain guest satisfaction. As the hospitality industry continues to evolve, the role of PMS in business continuity will only become more critical. Hotels should prioritize PMS solutions that offer cloud-based infrastructure, real-time data access and analytics, robust security features, and effective communication tools. Furthermore, ongoing staff training and proactive risk management are essential to maximize the effectiveness of the PMS in ensuring business continuity. By embracing these strategies, hotels can build resilience and thrive in an increasingly dynamic and unpredictable world.

Works cited

  1. How interstate armed conflicts impact the hotel industry? - Hotel Management International, accessed January 13, 2025, https://www.hmi-online.com/risks/navigating-the-storm-how-interstate-armed-conflict-impacts-the-hotel-industry/
  2. What is Business Continuity Technology: Guide for MSPs - Channel Insider, accessed January 13, 2025, https://www.channelinsider.com/storage/business-continuity-technology-msp/
  3. 7 Threats to the Hotel Industry | OpenKey, accessed January 13, 2025, https://www.openkey.co/2023/10/16/navigating-uncertainty-how-global-challenges-shape-the-hotel-industry/
  4. DISRUPTORS IN HOSPITALITY INDUSTRY AND ITS IMPACT ON THEIR BUSINESS OPERATIONS - TOJSAT-The Online Journal of Science and Technology, accessed January 13, 2025, https://www.tojsat.net/journals/tojdel/articles/v11i01c01/v11i01-28.pdf
  5. Leading Through Disruption in Hospitality - EHL business news, accessed January 13, 2025, https://hospitalityinsights.ehl.edu/leading-through-disruption-hospitality
  6. Hotels dealing with the aftermath of the global IT outage - Hotel Management Network, accessed January 13, 2025, https://www.hotelmanagement-network.com/news/hotels-dealing-with-the-aftermath-of-the-global-it-outage/
  7. The Importance of Employee Training in Business Continuity Planning, accessed January 13, 2025, https://www.businesscontingencygroup.com/post/the-importance-of-employee-training-in-business-continuity-planning
  8. Train and create awareness of business continuity within your staff - Benoit Racette, accessed January 13, 2025, https://racetteconseils.com/en/train-and-create-awareness-of-business-continuity-within-your-staff/
  9. Business Continuity Management: Crisis Leadership - Security Intelligence, accessed January 13, 2025, https://securityintelligence.com/business-continuity-management-crisis-leadership/
  10. What role does employee training play in strengthening business continuity plans?, accessed January 13, 2025, https://vorecol.com/blogs/blog-what-role-does-employee-training-play-in-strengthening-business-continuity-plans-146454
  11. The Benefits of Cloud-based Business Continuity | Buchanan Technologies, accessed January 13, 2025, https://www.buchanan.com/benefits-of-cloud-business-continuity/
  12. How Can Managed Cloud Services Bridge the Connectivity Gap? - STL Tech, accessed January 13, 2025, https://stl.tech/blog/achieving-business-continuity-through-cloud-managed-services/
  13. 5 Benefits of Business Continuity in the Cloud - Continuity2, accessed January 13, 2025, https://continuity2.com/blog/business-continuity-in-the-cloud
  14. Business Continuity and the Cloud | Smartsheet, accessed January 13, 2025, https://www.smartsheet.com/content/business-continuity-cloud
  15. 9 Reasons To Choose a Cloud PMS for Your Hotel - Preno, accessed January 13, 2025, https://prenohq.com/blog/9-reasons-to-choose-a-cloud-pms-for-your-hotel/
  16. How hotels can stay resilient in the face of travel disruptions - hotelbusiness.com, accessed January 13, 2025, https://hotelbusiness.com/how-hotels-can-stay-resilient-in-the-face-of-travel-disruptions/
  17. Business Continuity: Managed IT Services & Disaster Recovery | Cherry Bekaert, accessed January 13, 2025, https://www.cbh.com/insights/articles/business-continuity-managed-it-service-providers-critical-role-in-disaster-recovery/
  18. Top 11 Business Continuity Solutions for MSPs - Axcient, accessed January 13, 2025, https://axcient.com/blog/business-continuity-solutions/
  19. Predictive analytics: preparing your supply chain to overcome disruptions | Maersk, accessed January 13, 2025, https://www.maersk.com/insights/digitalisation/2024/07/09/predictive-analytics-preparing-your-supply-chain-to-overcome-disruptions
  20. PMS Proactive & Reactive Data Sources for Devices - MakroCare, accessed January 13, 2025, https://www.makrocare.com/blog/pms-proactive-reactive-data-sources-for-devices/
  21. Crisis Management: Software Solutions for RealTime Reputation Monitoring, accessed January 13, 2025, https://vorecol.com/blogs/blog-crisis-management-software-solutions-for-realtime-reputation-monitoring-166037
  22. Real-time emergency response: Improved management of real-time information during crisis situations | Request PDF - ResearchGate, accessed January 13, 2025, https://www.researchgate.net/publication/271661049_Real-time_emergency_response_Improved_management_of_real-time_information_during_crisis_situations
  23. The Importance of RealTime Data Analytics in Crisis Response Strategies - Vorecol HRMS, accessed January 13, 2025, https://vorecol.com/blogs/blog-the-importance-of-realtime-data-analytics-in-crisis-response-strategies-179326
  24. The Importance of RealTime Data Analytics in Crisis Management: Future Trends and Software Solutions - PsicoSmart, accessed January 13, 2025, https://psicosmart.net/blogs/blog-the-importance-of-realtime-data-analytics-in-crisis-management-future-trends-and-software-solutions-224228
  25. Preparing for Disruptions Through Early Detection - MIT Sloan Management Review, accessed January 13, 2025, https://sloanreview.mit.edu/article/preparing-for-disruptions-through-early-detection/
  26. 8. Detecting Disruption · The Power of Resilience - MIT Press on COVID-19, accessed January 13, 2025, https://covid-19.mitpress.mit.edu/pub/0xgc68oc
  27. Hotel de Sterrenberg Case Study | Hotel Property Management System, accessed January 13, 2025, https://www.amadeus-hospitality.com/insight/hotel-de-sterrenberg-case-study/