The impetus for h2c’s Global PMS Report results from the increasing amount of Property Management System challenges hotel chains are facing today.

The study aims to shed more light on the current hotel management landscape via insights obtained from an online survey as well as expert interviews with hotel executives in Europe, the Middle East, North America and Asia Pacific.

H2c’s research covers: (1) the hotel chains’ satisfaction level with their current PMS solution; (2) missing features and functionalities; and (3) changes required for improvement. Details of the primary takeaways from the study include:

Market Dynamics Call for a PMS Strategy Shift

There are more chains likely to change their PMS strategy in the medium term than to retain it. The increasing demand for flexible cloud solutions with deep (especially CRM) integration capabilities has triggered a rethinking of hotel operations for the majority of hotel chains.

Over the next five years, nearly three in 10 chains will change their PMS strategy. Slowly but surely, cloud technology is eliminating the painful upgrading processes of the past.

PMS Vendors Spotting Competitive Pressures

For nearly half of all chains, the pain points (e.g., inefficient processes, missing functionality) with their PMS are large enough to justify a tender process (RFP). In addition, support issues and slow technical developments further encourage initiating an RFP.

The willingness to conduct a tender is significantly higher in Europe and the Middle East than in Asia Pacific and North America. Nevertheless, immediate change does not seem to be an option, due to either a lack of technical alternatives or the unawareness of opportunities.

The Most Common Pain Points

Three in 10 hotel chains experience insufficient support from their PMS vendor. Lack of support services (including slow response times, and inadequate consulting/problem-solving capability) is a major concern and has nearly twice the severity level of any other pain point.

While technology deficiencies (integration, functionality and developments) present the second largest cluster of dissatisfaction, somewhat surprisingly, cost is of lesser importance to chains.

PMS Support Often Scores an Average Rating at Best

Almost six in 10 PMS vendors scored either an average or poor rating for their support services. Just about one quarter of hotel chains are satisfied with the quality of support, mainly those in North America.

Three quarters of European chains expressed their strong dissatisfaction with inadequate response times (most critical issue), followed by cost-efficiency, flexibility and the vendor’s general problem-solving capabilities.

Required Functionality Upgrades for the Future

When asked which functionalities the PMS should focus on in the future, 58% of all chains ranked a deeper integration with their existing technology landscape as most important, followed by improved mobile functionalities (41%) and a more intuitive graphical user interface (GUI) for operations (36%).

Enhanced business intelligence and personalization functionalities (e.g., custom dashboards) were requested by 34% and 33%, respectively.

Download the full report here.