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Insights and advice from the HTR team to find the best technology to grow your hotel business

Hotel Reporting & Accounting Software Software Articles

A Quick Overview of Accounting in the Hotel Industry

by
Hotel Tech Report
1 week ago

There is a myriad of skills required if you want to reach the pinnacle of success in the hospitality industry. Charisma, leadership, and various hospitality services are what usually come to mind. It’s easy to understand why a lot of us often overlook accounting as one of these relevant skills, though, despite it being one of the most essential administrative duties of the business. It’s something that happens behind the curtains of successful hotel operations. The problem is, poor accounting practices can lead to a continuous debt cycle that can be difficult to escape. Hence, allow us to share with you some tips on how to perform your accounting commitments dutifully.   Advanced Staff Training They say that the world of work in 2021 will significantly shift its landscape due to the pressures and complexities brought about by the global health crisis. For instance, experts predict that there will be a drastic movement of the labor force, from traditional employment to remote working opportunities. Current job seekers also prefer back-office positions that won’t require them to interact with a lot of people for safety reasons. Both issues have certainly put a dent in the industry’s recruitment. Hence, it’s simply more strategic to provide your current staff with advanced training instead. It can boost job satisfaction and decrease your turnover rate as well. It is highly recommended to work with an accounting institute that specializes in the industry. After all, the accounting processes required by the industry are remarkably different from traditional accounting. There are a lot of elements at work such as varying room rates, late fees, and more.   Consider Accounting Principles in Rates Speaking of varying room rates, you should also consider the principles of supply and demand in your pricing. Most sectors have a fixed suggested rate for their products and services, but that doesn’t apply to the hospitality industry. Daily rates can fluctuate according to the season, availability of certain services, and even the rate of occupancy. It is normal for hoteliers to experience highs and lows in revenue from time to time. Those who are especially interested in budgeting and forecasting could refer to previous financial statements as a guide. After all, it should reflect the “bloodline” of your business.  There are three main financial statements that can reflect the actual status or performance of specific aspects of your establishment. These are the Profit and Loss Statement, the Balance Sheet, and the Statement of Cash Flow.   Use Separate Ledgers Most businesses only require a single general ledger for all of their transactions. On the other hand, hotel management accounting requires multiple ones to organize its separate streams of revenue.  For instance, bar sales and room rentals should be recorded separately to avoid confusion. This will give you an advantage in financial management and financial reporting.     Leverage Technology Finally, hotel owners can make use of specialized accounting management tools that were specifically designed for the hotel industry. You won’t even need to worry about keeping separate ledgers with such online platforms anymore. Premium accounting software usually includes organizational features that automatically sort out your records and directly upload them to the cloud for safe-keeping. Cloud storage also makes it convenient and accessible for your preferred staff. You may even log into your system remotely using any portable digital device depending on your chosen platform. As for safety and security, hoteliers will be pleased to learn that most of these systems are equipped with the highest levels of cybersecurity. Other accounting software features also include the following:  Accuracy One of the challenges in hospitality accounting is the presence of double entries. It can’t be helped especially with the use of analog accounting systems. As mentioned above, keeping your records in a single place to make them more streamlined isn’t an option either. Hence, most hoteliers resort to the tedious task of cross-checking their entries regularly to prevent data entry duplication. Fortunately, this won’t be a problem anymore when using a digital platform.  Each entry usually comes with multiple cells that you can fill in for better accuracy. Some platforms also allow the creation of reference numbers that further prevent duplication. Keywords will also help you locate your accounts payable, accounts receivable, and other specific financial data fast, creating a better accounting experience overall. Analytics It is not impossible to analyze the performance of your establishment on your own especially if it’s a small business. But what if you have dozens of rooms and multiple revenue streams?  Fortunately, most digital accounting programs come with analytic features that can create data-based reports and projections that then assist in essential decision-making. Automation Finally, spare your staff from tedious and repetitive accounting tasks with an automation feature. In fact, some programs are even AI-integrated allowing their platforms to recognize key performance indicators, issue alerts and notifications in real-time, and even schedule regular reports whenever you need them. Please keep in mind that accounting services do vary, so be sure to check the full functionality of your chosen platform just to make sure that it will meet your expectations. M3 Accounting is a personal favorite of ours. Not only do they offer premium accounting services, but they also provide training for your accounting team and allow integration with other accounting services like Quickbooks and Peachtree.   Final Thoughts Hospitality industry accounting is definitely set apart from the traditional practice. Fortunately, there are hotel accounting solutions that you can do to make your bookkeeping process faster and more convenient, including signing up for an online accounting system specifically designed for hospitality establishments.  

The 9 Most Futuristic High Tech Hotels in the World

by
Hotel Tech Report
3 weeks ago

The pandemic accelerated technological transformation across the hospitality industry. Contactless has become a must-have, fitness centers have gone virtual, guest communications have moved to mobile, and self-service has become standard. While some hotels found themselves rapidly deploying new technologies, other hotels have been playing the tech-long game for years. Here are some of the world’s most notable high-tech hotels. We've covered the tech strategies of great hotel groups like Viceroy and Noble House who implement everything from contactless check-in to digital concierge but this article focuses on some more wacky tech implementations with a bit of focus on form over function.  This list features some pretty cool hi-tech gadgets and hotel room amenities that go above and beyond the typical flat-screen tv.  Some of the cutting-edge technology on this list may off-put more traditional travelers but will undoubtedly hit the spot for tech-savvy millennials. Rather than layer technology onto the operation, these properties embed technology into the fabric of the operation, making it a focal point and key feature. Some use it as an Instagrammable moment at a specific location while others structure their entire brand around the tech-enabled guest experience. Either way, technology is front-and-center at these hotels.   Henn Na Hotel, Japan “The Robot Hotel” Tokyo has become the marquee high-tech hotel. The brand concept is “commitment to evolution,” which appears across its operation in the form of robots. Lots of robots! The brand claims to be the world’s first hotel staffed by robots -- and there’s really no disputing that, as guests are greeted by robots at the front desk. At one property, the front desk is even staffed by dinosaur robots and iPad kiosks, which is quite the experience.     Other high-tech features at some locations include a robot barista frothing lattes, espressos and teas, as well as a 360-degree VR space for guests to immerse themselves in virtual reality experiences. The hotel is also fully enabled with Wifi powered facial recognition, which eliminates the need for a hotel key altogether. Guests can access the property, and their individual guest rooms, seamlessly using biometrics. Very futuristic, indeed!   YOTEL, New York City The YOTEL brand has been synonymous with technology since it opened its doors near  Times Square. The showstopper was a massive robot arm dominating the lobby, providing automated luggage storage for guests (as well as safety deposit boxes to store valuables). The YOBOT also provides self-service check-in, which puts the brand far ahead of today’s contactless guest experience.   The rooms -- called cabins -- may be small, but YOTEL uses technology to deliver its promise to “give you everything you need, and nothing you don’t.” This includes Smart TVs so that guests can connect their own devices and choose their own entertainment. The guest rooms also use motorized beds as space-savers and motion-activated sensors for lighting and AC to reduce carbon emissions. It’s all about efficiency, delivering an outsized guest experience in even the smallest spaces.   Blow Up Hall 5050, Poland The Blow Up Hall 50/50 is an impressive mix of form and function. Designed by BAFTA-award-winning artist Rafael Lozano-Hemmer, the hotel combines a restaurant, bar, gallery, and hotel into a unique vibe. There are several digital art installations, including a commentary on surveillance capitalism embedded right within the lobby.    The property eliminates the traditional touchstones of the hotel experience: there’s no front desk. The guest’s smartphone provides access to the property, from check-in to room keys to staff communications. The phone also acts as a room finder: after opening the app, the assigned room lights up and the door unlocks automatically. It’s these small tech flourishes that reinforce the property’s sense of mystery and intrigue.   Hotel Zetta, San Francisco At the center of Silicon Valley, the centerpiece of Hotel Zetta is most definitely its virtual reality room in the lobby. Designed by a local tech startup (naturally), the VR cube gives guests a fully-immersive opportunity to experience virtual reality. There are also Nintendo Switch consoles and Oculus VR headsets available so guests can experience next-generation technology in the comfort of their rooms.      Other tech touchstones include a vintage Atari Pong table in the Zetta Suite, which is modernized to include both the classic game and a Bluetooth speaker to play personal playlists. Each guest room is also equipped with Alexa-enabled voice control in every room. Guests can order a meal from room service, set an alarm or learn about on-property dining specials.    Kameha Grand, Zurich The Kameha Grand isn’t one of those kitschy places that you’re embarrassed to stay at. Quite the opposite: the high-end “lifestyle hotel” is part of Marriott’s Autograph collection. And, with rooms designed by Marcel Wenders, it’s got all of the trappings of a luxury property. Rooms     Our favorite rooms are, of course, the Space Suites. It’s the most futuristic room type on this list because it quite literally connects to space. The in-room TV features a live feed from NASA TV so that you can fuel those space dreams. The atmospheric vibes will contribute to that dreamy feel, with “outer space furnishings have been designed down to the smallest detail with a floating bed, pictures of galaxies, hovering astronauts and models of rockets.” Far out!   Virgin Hotels  The Virgin Hotel brand has always been tech-forward and guest-centric. Even prior to the pandemic, the brand empowered guests to control their own experiences right from the palm of their hand. Now, those features are dramatically expanded to be even more contactless.     Named Lucy, the app allows guests to skip check-in, using their phone to select rooms and unlock doors. Guests can also use the app to order room service, adjust room temperature, control entertainment (in-room streaming and Apple Music), plan their trip around the city, or even follow custom exercise routines by Fitbod. Following on smartly with its brand promise, the app also offers three preset lighting modes for guestrooms:  Get Lit for full brightness, Get in the Mood for dimmed relaxation, and Do Not Disturb for sleep. By putting all of these elements together into a single interface, Virgin Hotels puts the guest in control.    25hours Hotels Another brand that’s focused on high-tech without losing high-touch hospitality is 25hours. Thanks to an in-house multidisciplinary think tank, the Extra Hour Lab, the brand experiments with new ways of engaging with guests, both through digital and analog channels. That balance plays out in Cologne, where the record store greets guests alongside    Perhaps that’s one aspect that distinguishes the futuristic, high-tech hotels: those that understand how to inject storytelling into the experience alongside the latest technology.   Cityhub A hybrid between a comfortable hotel and a convivial hostel, Cityhub is futuristic in both its technology and its approach to hospitality. It’s part of a new wave of brands that blend categories and use technology to enable a more social experience. The Cityhub brand has an app but it also takes a cue from Disney and offers RFID wristbands. These bands are used not only for check-in and property access, but also  at the bar, cafe or vending machines, where guests can serve themselves and charge their rooms. Without having to constantly pull out their phones, there’s a more personal element to the experience.     Each “hub” has its own customizable lighting, temperature and audio streaming, so guests can control their vibe. There’s also an on-property social network, giving guests a digital lobby to meet and plan real-world adventures.   The Atari Hotel, Las Vegas (coming soon!) A notable mention is the upcoming Atari Hotel in Las Vegas.  This property will blur the boundaries between hotel and immersive experience, building on Las Vegas’ long history of blending entertainment with hospitality. The experience is straight out of Blade Runner: bright lights, massive marquees, and an “everywhere you look” focus on gaming.    The Atari Hotel points to a far-more futuristic vision of hotels than anything else on the market today. It very well could be the first hospitality experience built just as much for the virtual world as for the physical one. Guests can host friends in their rooms for gaming marathons, with consoles, batteries, and spare controllers available for delivery. The Atari Hotel may redefine the category and establish a new mainstream travel trend: the gamer circuit. -- What are your favorite high-tech hotel amenities? Let us know if we missed any key ones like hotels with crazy underwater speakers, air conditioning activated by motion sensors, cool touchscreen applications, and more!

Hotel Accounting Made Easy with Preno and Xero

by
Hotel Tech Report
1 month ago

Hotel accounting can be really hard. Between agency commission tracking, deposits, invoices, chargebacks, and reconciliations – we humans just aren’t equipped to handle this level of complexity.  Small business accounting software like Xero makes accounting a breeze, but given very specialized accounting requirements in the hotel industry - even great accounting software like Xero can fall short without a proper integration to your property management system. Whether you’re tracking agency commissions or configuring payment policies for groups – it is vital for hotels of all sizes to have a seamless integration between their property management system (PMS) and hotel accounting software. Why? It saves countless hours of tedious administration via automation. In this article, we’re going to walk you through the easiest hotel accounting process you’ve ever experienced - powered by a seamless integration between PMS Preno and accounting software Xero. An integration that will automate and simplify your hotel’s financial activities. Ready to put the headaches of hotel accounting in your rearview mirror and automate your repetitive processes? Let’s dive in!   Why Use Preno with Xero? Got things to do and places to go? Here’s the abbreviated version of our deep dive into the Preno + Xero integration: Preno automatically generates invoices in Xero to make daily, monthly, or yearly reconciliations a breeze. Xero can handle multiple accounts, revenue streams, room types, fees, and more. Preno and Xero are the dream team for managing deposits and prepaid reservations. Xero’s automation functions can save your staff hours of valuable time each day. Preno’s integration with Xero is the most complete of any PMS, and is rated a perfect 5 out of 5 stars in the Xero App Store.   Automated Invoices Without an integration like the one between Preno and Xero, hoteliers and accounting staff spend up to 10 hours every week creating invoices and reconciling accounts. Staff would usually need to manually enter payment information or deposits in their PMS, and accounting system – essentially doing double the work. If your property management system doesn’t communicate with your accounting software, you need to manually type in data like guest’s name, booking dates, room rates, fees, and more. Does that sound like the most efficient way to run things? With Preno and Xero working together, reservation data syncs automatically with Xero’s accounting software so that invoices are complete and accurate without any busy work. The only thing you’ll need to do is ensure your bank statement line matches Xero’s invoice. Easy enough! However, if you want to make any adjustments to the automated invoice, that’s possible too. When you open a reservation in Preno, simply click a link to access the Xero invoice, there you can make any desired changes, and easily print or email the invoice.   Deposits and Prepayments Does your hotel require deposits or offer prepayment options? When using an old legacy PMS (not cloud-based like Preno), you can almost see the system on the brink of freezing or giving you that spinning wheel of death. Preno, on the other hand, is built to handle deposits with ease and speed. When a guest pays their deposit (or prepayment), the payment is recorded in Preno, and an invoice is automatically generated. Xero automatically allocates the payment to the full invoice. Within the guest’s reservation record, a link to the record in Xero also pops up for quick reference. Upon check-out, you can generate a complete invoice for the guest that details payments they made before, during and after their stay, and print or email is at the click of a button.   Multiple Account Support If the thought of reconciling multiple revenue streams at the end of the month gives you anxiety, then it’s time to upgrade your accounting software, and seamlessly integrate it with your PMS. Many hotels work with a variety of agencies, individual travel agents, and other accounts – and without a system that can balance all of them, month-end reporting can be a daunting task. Preno and Xero make invoicing accounts easy (and fun), because you can automatically generate invoices for reservations with a couple of click. Simply pull up an agency reservation, add a deposit or payment, and choose “Invoice Agent” as the payment method. An invoice will be automatically generated – voila!   Time-Saving Benefits Preno and Xero will save your staff hours of time each week – and because time is money, your hotel will have some extra moolah in its metaphorical pocket after making the switch to these apps. By reducing the hours of repetitive, administrative tasks, your staff can dedicate more time to tasks that enhance the guest experience.  Reducing the amount of time spent on “busy” work isn’t the only benefit, you’ll also reduce the chance of human error on invoices and payments, thus reducing the amount of time spent on service recovery or corrections. Modernizing your accounting process will also yield some interesting insights. For example, Preno’s integration with Xero includes details like a breakdown of fees, room service items, and surcharges to provide your hotel greater visibility into real-time business trends. The automated reporting tools in Preno and Xero can reveal your most popular fees, less popular room service orders, and provide opportunities to achieve incremental revenue growth. Still have questions about Preno’s integration with Xero? Let us know!   This content was created collaboratively by Preno and Hotel Tech Report.  

The 10 Best Places to Work in Hotel Tech 2021

by
Hotel Tech Report
3 months ago

Each year Hotel Tech Report surveys thousands of industry insiders to find the best hotel tech jobs and employers globally. In 2020, the COVID-19 pandemic wreaked havoc on the hotel industry.  The World Travel and Tourism Council predicts that 121 million of the 330 million jobs tied to tourism around the world will be lost in 2020.  Despite existential challenges, hotels and their vendors have proven resilient in the face of the biggest challenge ever posed to the hospitality industry by working together. But there’s always opportunity in crisis.  The pandemic has advanced digitization in the global economy by at least 5 years according to most experts.  Hotels that already had adopted technology like contactless check-in and guest messaging software have had a massive advantage since the pandemic broke out and the importance of technology for running a successful hotel business will continue to rise over the coming years meaning that demand for hotel technology talent will grow with it. Here at Hotel Tech Report, we’ve interviewed countless hoteliers about their journeys from being hoteliers into lucrative technology careers like Del Ross, Marco Benvenuti, Sameer Umar, and Kevin Brown. For hoteliers furloughed on the sidelines, there is an unprecedented opportunity to pivot into a technology career leveraging skills and knowledge from hospitality experience.   But which hotel tech companies should you apply to? Every year we do the hard work for you and survey thousands of hotel tech professionals to find the best companies to work for in the hospitality industry. We ask respondents to rate their employers from 1-10 on these key variables:  Work-life balance Personal development opportunities Gender equality Confidence in company direction Values alignment 2021 Bonus Question: Rate your firm’s COVD-19 crisis response Hotel Tech Report creates this list each year for two reasons: (1) to help industry professionals find the best hospitality tech jobs and (2) to help hotel tech buyers understand that it’s just as important to partner with great organizations as it is to find great software tools and products. Vendor culture is important to every aspect of a vendor relationship: Product: Great workplaces attract the best talent who make the best products Customer Support: Happy client reps give better service and stay around longer developing deeper relationships. Sales: When a sales team has high turnover, innovation gets strangled because there isn’t enough cash coming in the door to invest in innovation. Our 10 Best Places to Work in Hotel Tech list features companies who foster wonderful work environments for employees.  In return, those employees deliver incredible products and services to clients. Without further adieu here are 2021’s 10 Best Places to Work in Hotel Tech…     10. Siteminder (TIE) Right before the coronavirus pandemic broke out, industry leader Siteminder reached an incredible milestone earning itself unicorn status.  Under the stewardship of CEO Sankar Narayan the firm quickly composed itself when the pandemic broke out and began rolling out initiatives to support both employees and customers like its World Hotel Index sharing real-time data with the industry when historical data just wouldn’t cut it.  Siteminder has an internal slack channel called #stayingsocial dedicated strictly to team members having a social communal space in the age of remote work.  This is pretty typical for a small startup but much rarer in the world of 700 employee behemoths.  The great part about working at a large startup-like Siteminder is that there’s almost limitless upward mobility according to one employee working in operations at the firm, “They allow me opportunities to take on more responsibilities that are even beyond my scope to develop my skills and prep me up for bigger roles. They also give leadership training to enhance to continue developing my capabilities.”  If you’re looking for a fast-paced global startup on a world domination path - then you should absolutely be dropping a resume at Siteminder.  The best part is that they’ve got offices all around the world so even if you prefer the WFH life your colleagues shouldn’t be too far away no matter where you call home.     10. Atomize (TIE) This is Atomize’s first time making Hotel Tech Report’s annual Best Places to Work list but we doubt it will be their last.  In true Swedish fashion Atomize rates amongst the highest on the list for gender equality with a 50% ratio of men to women on its leadership team.  Atomize also rates very highly for culture alignment with a score of 97.8%.  Perhaps the biggest standout for Atomize was how highly employees rated the firm’s COVID-19 response and support for clients during a crisis.  “Everyone from finance to product development has chipped in to try to support clients. We have for instance developed a relief-program for those that are hurting really bad, we have updated the product to amend for the large drop in occupancy for hotels, etc,” one Atomize executive told Hotel Tech Report.  Atomize made it through COVID-19 without a single layoff which is a testament to the longevity of the business and its and commitment to team members.  During the crisis Atomize stayed calm, launched the 2.0 version of their core RMS product, and even found time to bring the team together for a BBQ this summer during a slow down in transmission rates.     9. Hotel Effectiveness Georgia (the U.S. state not the country) based Hotel Effectiveness is in the business of helping hotel owners more efficiently manage labor but the question is: how well do they manage their own labor? It turns out they do a pretty darned good job at fostering internal culture.  Prior to the pandemic labor costs were the biggest focus area for most hotel ownership and management groups - despite the shift in focus Hotel Effectiveness managed to grow through the pandemic all while placing a heavy emphasis on quality of life for employees.  Team members cite a high percentage of employees being groomed from junior roles into leadership positions, flexible PTO programs, and strong opportunities for women.  PTO is great but Hotel Effectiveness management goes one step further where they encourage team members to completely unplug and not even check email during their vacation.  Adding icing to the cake, employees raved about the firm’s response to COVID-19 where it was able to grow without any layoffs needed.  One engineer raved about the Company’s COVID-19 response, “Hotel Effectiveness immediately shifted priorities specifically to address the changing needs of our clients. Hotel Effectiveness provided new guidance materials, payment options, and built new features (such as Daily Wellness Check-In) under tight deadlines to meet the new needs of our customers.”     8. EasyWay Big congrats to the first-ever Israeli startup to make this list!  If you’ve ever been to Tel Aviv or the Start-up Nation (Israel), perhaps a job interview with EasyWay is the excuse you needed to visit one of the most amazing cities in the world packed with beautiful beaches, vibrant nightlife, and a foodie scene that’s truly in a league of its own.  EasyWay is the quintessential startup with a mentality that so long as you hit your KPIs - the rest of your life is totally flexible.  An EasyWay executive’s quote to Hotel Tech Report about the last 12-months at the company says it all, “The work around the clock in the COVID-19 time was crazy.  We have developed so much stuff, that I almost miss this period. We've learned a lot from that, and staid on our feet! The rest of the team was great and it really gave me confidence in my own abilities.  If you're the kind of person who likes to work hard and play hard - you’d be wise to check out EasyWay’s open positions.      7. Asksuite This is Asksuite’s second year making the list and true to their commercial team’s motto “rockets don’t have reverse”, even a pandemic couldn’t slow down this high flying Brazilian startup.  Florianopolis may not be a hotel tech hub (yet) but the Asksuite team has access to lessons in language, hospitality and other training to upskill their way into global domination.  During the pandemic, leaders have made themselves available for 1:1 meetings to support all colleagues and perhaps it’s this close communication that leads Asksuite employees to rate 98% confidence in the future success of the firm.  Asksuite employees frequently cite an onboarding process that makes all team members feel like a part of the family in short order.     6. RoomRaccoon Despite the pandemic RoomRaccoon doubled the firm’s headcount in 2020 and achieved a major milestone in reaching 1,000 clients.  Employees frequently cite similar aspects of the culture as differentiators like their annual international week at the Netherlands headquarters and an inclusive onboarding program.  One employee within the marketing department told Hotel Tech Report, “This year RoomRaccoon decided to start hiring more new colleagues against the market trend of furlough and letting people go. To smoothen the onboarding process of our new hires we've created an E-learning program and two intensive onboarding weeks. So far we've onboarded 15 new hires since July 2020 that immediately are getting results. Something I'm really proud of!”  If you’re looking for an ambitious organization with a strong remote culture and complementary annual trips to the Netherlands - don’t hesitate and check out open listings at RoomRaccoon.     5. Alliants The Alliants story is the cure to the common venture funded business gone wrong story.  Alliants built the business developing custom software for ultra luxury hotel brands like Four Season and Jumeirah before ever dipping their toes into the SaaS world.  That means they’ve got killer products, an eye for design and engineering to back it up.  Starting in a consultative role for luxury brands has afforded Alliants a luxury not many early stage SaaS products have - cash flow.  How would this impact you when you apply for a role there?  Alliants employees are given a $5,000 stipend to invest in their own education and training.  Whether it’s a paid marketing course or intro to Ruby on Rails - at Alliants you will be able to create your own journey and take control of your destiny.  Have you ever had a boss block your calendar so people can’t book meetings with you? Well, Alliants employees have.  During winter months with less daylight, CEO Tristan Gadsby blocked the entire team’s calendars from 11:30am - 1:30pm to encourage team members to get outside, walk or simply catch some rays.  If that doesn’t sell you I don’t know what will.     4. ALICE This ain’t ALICE’s first rodeo, well it’s their fourth if we want to be precise about it.  ALICE has made Hotel Tech Report’s Best Places to Work list 4 years in a row (2018, 2019, 2020, 2021).  ALICE is an incredible place to work for former hoteliers because employees truly act as a strategic extension of their partner properties.  During the pandemic, ALICE quickly pivoted to rollout closure checklists and other free assets to help partners quickly reconfigure their operations for the new normal.  “The most memorable achievement while working at ALICE this past year was being able to provide support for our employees during the pandemic. The pandemic-related fatigue and anxiety impacted everyone and in different ways. We were able to provide support to our employees through group therapy sessions, health and wellness initiatives, increased one-on-one check-ins regarding fatigue, increased opportunities for learning and connection with one another virtually. I am so proud of how the leadership at ALICE has led us through the most difficult time in our industry's history, and with such care for both our customers, our industry as a whole, and our employees,” says one ALICE team member in an HR role.  Just as important as supporting clients through COVID-19 is supporting colleagues.  ALICE team members were constantly comforted that management understood the stress and challenges they were facing during this historic yet tragic year, encouraging an environment of transparency and honesty about how to cope with natural distractions from work in times of stress.     3. hotelkit Austria-based hotelkit is another repeat visitor on this list moving up from 4th to 3rd place.  Founded in 2012 by hotelier Marius Donhauser, hotelkit is a majority female-run business that’s growing rapidly but responsibly throughout Europe.  hotelkit’s team motto is “one team one dream” and while the team had to work remotely for a good portion of the year, colleagues are hopeful that 2021 will bring back the annual hotelkit Christmas party famous for great eats and poker.  Under Marius’ leadership, hotelkit has fostered a culture that feels like family so it’s no wonder that employees rate the culture so highly across every single vector.     2. Cloudbeds Cloudbeds may be the fastest-growing hotel tech company right now so while their headquarters are in sunny San Diego the Company has got Silicon Valley energy pumping through its veins.  Not to mention, Cloudbeds is extremely global with local managers in 40 countries. On March 11th (yes that’s right when COVID-19 took the world by storm) Cloudbeds announced the closing of an $80M funding round.  Cloudbeds employees tend to share two main things in common: (1) they are extremely performance-driven and (2) they LOVE to travel. One Cloudbeds employee within the operations department told Hotel Tech Report, “I managed to get promoted on my 1 anniversary day at Cloudbeds, I was so happy and everyone was so attentive to me during this process. Cloudbeds is an amazing company, full of amazing individuals, it's so nice to see the owners in our calls and engaged with us all at all times. I used to think I had worked at good companies, till I met Cloudbeds. This is where I want to stay and grow. It will be hard for any other company to take me from here.”  Cloudbeds has TONS of openings so make sure to browse their career page if you’re in the market.     1. Mews This is Mews’ 3rd year making the list ranking #2 in 2019 and #3 in 2020 - but this is their first year topping the list which is a testament to the strong culture at the firm.  Like most fast-growing companies, the pandemic wreaked havoc on projections and business plans for Mews leading to some difficult decisions needing to be made.  Mews not only came through what was maybe the darkest moment in the history of the hotel industry but came out stronger than ever before.  Mews leadership set a strong course for the business cutting expenses, reorganizing the team, rebranding, focusing on remote deployments, and even making an acquisition.  Quite a busy year - even if things had been normal.  Mews management has created one of those infectious startup cultures that can almost feel cult-like at times often intoxicating entire trade show floors (pre-COVID).  It’s not often that employees at an aggressive high-performance tier 1 venture-backed business get to see their founder dancing through a town hall (affectionately named Mews Con) in a silly costume.  Mews pivoted from hyper-growth mode into a sharp focus on profitability right-sizing the business and is poised to come out of the pandemic far stronger than it went in.  Lots of open roles to check out and we’re sure that list will continue to grow over the coming months.  

Cloudbeds, SiteMinder & Room Raccoon Top People’s Choice Awards in the 2021 HotelTechAwards

by
Hotel Tech Report
3 months ago

Each year along with individual awards for the top-rated hotel software in each category, Hotel Tech Report recognizes the Top 10 most customer-centric global companies in the annual People's Choice Awards. The People's Choice Awards serve to honor and recognize companies who have balanced strong growth with a relentless focus on customer-centricity. The HotelTechAwards platform (by Hotel Tech Report) leverages real customer data to determine best of breed products and companies that help hoteliers grow their bottom lines. “The People’s Choice Award goes to a single company across all categories who demonstrates the strongest customer relationships during the HotelTechAwards.  Cloudbeds had more than 550 hotelier customers come out to share overwhelmingly positive feedback about Cloudbeds products in the midst of a global pandemic.  To have that kind of support from clients during the most challenging market in hotel history says all you need to know about Cloudbeds’ commitment to their partner properties,” says Hotel Tech Report CEO Jordan Hollander. Here’s the Official 2021 People’s Choice List: Cloudbeds SiteMinder RoomRaccoon Bookassist OTA Insight ALICE IDeaS Avvio Hoteltime hotelkit The key factors used to determine the annual People’s Choice Award include total verified customer reviews, geographic reach of reviews, and overall review sentiment and ratings. The best companies know that the most effective way to communicate their value proposition is to empower and amplify the voices of their happy customers.  The People’s Choice Award recognizes companies whose customers really value the relationship and partnership. “Twenty years ago we lived in a world where hoteliers just used one of the three or four technology systems out there and typically just ended up using whatever system they had heard of before.  Today there are thousands of SaaS choices in the market and dozens of great options available for most use cases but the market is moving so quickly that it’s hard for hoteliers to identify and keep track of the best products and companies.  This award honors the companies whose hotel customers are the most vocal advocates of their products to make that process easy,” says Hollander.   About the 2021 People's Choice Award The People's Choice Awards serve to honor and recognize companies who have balanced strong growth with a relentless focus on customer-centricity.  Early on as a startup, it’s easier for companies to maintain strong customer relationships with a limited customer base. But as a company grows its install base and scales globally, maintaining high customer satisfaction becomes increasingly more challenging.  Each year along with individual awards for the top-rated product in each category, Hotel Tech Report recognizes the top 10 most customer-centric global companies in the annual People's Choice Awards acknowledging the achievements of top innovators across all categories who embody the values, transparency, and customer-centricity that lie at the core of truly great companies. View Ranking Methodology>>

Winners of the 2021 HotelTechAwards Announced

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Hotel Tech Report
3 months ago

Hotel Tech Report has announced winners in the 2021 HotelTechAwards, based on more than 10,000 hotel software product reviews contributed by verified hoteliers during the competition.  Winners are selected based on key performance metrics including product popularity, customer satisfaction, integration compatibility, customer support quality, and more.  Winning a HotelTechAward is the highest achievement in the hotel technology industry. “In the midst of a global pandemic, 318,466 hoteliers visited Hotel Tech Report from every corner of the globe contributing 10,227 verified new product reviews during the 3-month awards period to share insights about their favorite tech products to run and grow their businesses.  It has been inspiring to see this massive wave of hoteliers sharing technology insights and product recommendations,” says Jordan Hollander, CEO of Hotel Tech Report. “This is the most comprehensive dataset around hotelier preferences ever developed and it gives unprecedented insights into tech trends for hotels during a pivotal moment in history.  Winning a HotelTechAward is a huge feat with the 2021 competition being the most competitive year ever.  Every company on this list should be extremely proud of what they've contributed to the growth of the hotel industry.” During the HotelTechAwards, hoteliers from the world's leading hotel companies review the top tech products used at their hotels to increase operating efficiency, drive revenue, and improve the guest experience. This data is used to identify the best hotel tech products and organizations. "The HotelTechAwards  are the only prize in the industry that is completely and transparently customer-driven — it's the hoteliers that decide who is best, and it's their opinion that matters most." Gautam Lulla, CEO at Pegasus. "We at SiteMinder believe strongly in the essence of openness; it is what underpins the very core of what we stand for, and the HotelTechAwards, through the program's data-driven and transparent process, aligns firmly with this value.” - Sankar Narayan, CEO at SiteMinder “This honor has deep, personal meaning as it is decided upon by our clients and represents our passion and focus for providing the most sophisticated revenue technology and comprehensive support.” Dr. Ravi Mehrotra Founder at IDeaS “The HotelTechAwards are a powerful stamp of approval for any company to possess and for hoteliers to trust. We value the HotelTechAwards process, which collects thousands of verified reviews from around the world each year.” Alex Shashou, Co-Founder at ALICE “HotelTechReport is the leading platform for technology in the hotel industry, and its meticulous and impartial verification process makes this one of the most prestigious awards.” Moritz von Petersdorff-Campen, Co-Founder at SuitePad The competition spans core areas of hotel software & technology: marketing, revenue, operations, and guest experience. 2021 Voting included participation from major hotel groups including Four Seasons, Hilton, Marriott, Accor Hotels, Hyatt, Intercontinental, Rosewood, and thousands of independents. "We originally created the HotelTechAwards as a democratized way to help our fellow hoteliers quickly determine best of breed vendors based on data they can trust and the scope of the competition this year is a testament to how far the industry has come in the last decade.  The HotelTechAwards rating process is simple, transparent, and unbiased--judging is based on time tested ranking factors, publicly available data, and crowdsourced insights from verified hoteliers who have hands-on experience with each product.” The HotelTechAwards are often referred to as "the Grammys of Hotel Tech" and winners were selected from the top technology products around the world. The HotelTechAwards are the industry's only data-driven awards platform with winners determined not by a handful of judges or popularity votes but by a global community comprised of thousands of verified hotel technology users across more than 127 countries.   Best Hotel Software Companies List >>

2021 HotelTechAwards Finalists Announced

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Hotel Tech Report
3 months ago

Hotel Tech Report has announced finalists in the 2021 HotelTechAwards, based on more than 10,000 hotel software product reviews from verified hoteliers during the competition.  Finalists are selected based on key performance metrics like product popularity, customer satisfaction, integration compatibility, customer support quality, and more.  Winning a HotelTechAward is the highest achievement in the hotel technology industry. “In the midst of a global pandemic, 318,466 hoteliers visited Hotel Tech Report from every corner of the globe contributing over 10,000 verified new product reviews during the 3-month awards period to share insights about their favorite software products.  It has been inspiring to see this massive wave of hoteliers sharing technology insights and product recommendations,” says Jordan Hollander, CEO of Hotel Tech Report. “This is the most comprehensive dataset around hotelier preferences ever developed and it gives unprecedented insights into tech trends for hotels during a pivotal moment in history.  Finaling in the HotelTechAwards is a reflection of quality every company on this list should be extremely proud of what they've contributed to the growth of the hotel industry.” Hotel Tech Report authenticates reviews through a strict verification process.  Further, companies are ranked based on pre-defined objective data variables to avoid the biases present in other human judged competitions. "Based on real and honest customer feedback, the HotelTechAwards really do provide the most transparent view on how technology is perceived and used across the industry,” says Sean Fitzpatrick, CEO at OTA Insight. The HotelTechAwards are often referred to as "the Grammys of Hotel Tech" and finalists are selected from more than 1,000 of the top technology products around the world. The HotelTechAwards are the industry's only data-driven awards platform with winners determined not by a handful of judges or popularity votes but by a global community comprised of thousands of verified hotel technology users across more than 120 countries.   -- Competition winners will be publicly announced on January 12th --   Best Guest Experience Technology Finalists Guest Messaging Software: Whistle, EasyWay, Monscierge Guest Room Tablets: SuitePad, INTELITY Guest Survey Software: TrustYou, Guestrevu, Revinate Hospitality TV Providers: Monscierge (Apple TV) Mobile Key: ASSA ABLOY Global Solutions, FLEXIPASS Mobile Ordering: Bbot, RoomOrders Hotel Guest Apps: ALICE, INTELITY, Wishbox   Best Operations Software Finalists Property Management Systems: Cloudbeds, Mews, Clock PMS+, HotelTime Staff Collaboration: hotelkit, Monscierge, ALICE Hotel Management Systems: RoomRaccoon, Cloudbeds Concierge Software: ALICE Cyber Security & Fraud Prevention: Canary Technologies, Sertifi Digital Signage: Monscierge Housekeeping Software: hotelkit, ALICE, Optii Marketplaces & Integrators: Hapi, Dailypoint Preventive Maintenance: hotelkit, ALICE, Transcendent Restaurant Management: HotelTime, Oracle MICROS POS Employee Engagement Software: hotelkit, Hotel Effectiveness, Beekeeper Contactless Check-in: EasyWay, Canary Technologies, Wishbox Spa Management: HotelTime   Best Revenue Management & Finance Software Finalists Revenue Management Systems: IDeaS, Duetto, Atomize Business Intelligence: OTA Insight, Duetto, ProfitSword Central Reservations Systems: Pegasus Channel Managers: SiteMinder, Cloudbeds, D-EDGE Parity Management: OTA Insight, RateGain Rate Shopping & Market Intelligence: OTA Insight, SiteMinder, RateGain Reporting & Accounting: M3, MyDigitalOffice Upselling Software: Oaky, GuestJoy, EasyWay   Best Marketing Tech Finalists Booking Engines: Cloudbeds, Bookassist, SiteMinder Hotel CRM & Email Marketing: Revinate, Profitroom, Dailypoint Digital Marketing Agencies: Bookassist, Avvio, Net Affinity Direct Booking Tools: Triptease, Hotelchamp Website Live Chat and Chatbot: Asksuite, Whistle Independent Loyalty Programs: The GuestBook Metasearch & Ad Tech: Bookassist, Avvio, Koddi Reputation Management: TrustYou, Guestrevu, Revinate Hotel Website Design: Bookassist, Avvio, Profitroom   Best Meetings & Events Tech Finalists Event Management Software: Event Temple Group Sourcing & RFP Software: MeetingPackage, Venuesuite Meetings Intelligence Software: Duetto, IDeaS Sales CRM: Event Temple, MeetingPackage  

What is a Chargeback? How to Reduce Risk at Your Business

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Hotel Tech Report
1 week ago

Payment processing is a significant expense for hotels. And it often feels like more of a tax rather than a payment paid for a service. This dynamic is the most visible when it comes to chargebacks, which are when a consumer disputes a transaction as invalid, inaccurate or fraudulent. Given the contentious nature of these types of disputes, they're unpleasant for both  travelers, who may harbor negative sentiment around “shady” payment practices, and hotels, who must invest time and attention to fight fraudulent chargebacks. The cost of chargebacks is real: merchants lost 4.4% of revenue to chargebacks in 2019, due to chargeback fees ranging from $20 to $100. And that doesn’t even include the time you spent managing the dispute! Here’s what you need to consider when reducing chargeback pain at your hotel.   What's a Chargeback? Chargebacks are a part of the payment processing process that generally happens after a traveler has checked out of your property and sees an unknown or inaccurate charge appear on the bill. A chargeback occurs when a traveler disputes a charge with their card issuer or bank, which then triggers an investigation into the validity of the charge. Chargebacks can also happen due to processing errors (such as charging a card twice) or fraudulent activity identified by credit card processors. Typically, a chargeback occurs when a customer sees what they believe is a fraudulent transaction on their credit card statement.  They then open customer disputes on those credit card transactions.  The acquiring bank or issuing bank (i.e. credit card companies like Visa, Mastercard and American Express) then opens an investigation into the transaction as a consumer protection for members of their card network given rampant credit card fraud.  The customer then provides compelling evidence such as identity theft, incorrect amounts and charges, etc.   The chargeback process is initiated by the cardholder, who disputes a transaction. [Source]   Since chargebacks are seen as a protective layer against sketchy merchants, customer-initiated chargebacks are usually approved pending further investigation. This puts the onus on your hotel’s finance team to prove that the charge is legitimate. If the charge is proven legit, the funds will be reversed and sent back to your hotel. So you'll be made whole --  but it will not compensate for the amount of time spent fighting the potentially fraudulent charges. If the chargeback is valid, then the customer keeps the money and you’ll pay a chargeback fee to compensate the bank for its dispute management costs. The actual amount of this fee varies; it depends heavily on your chargeback ratio, or how many chargebacks your hotel receives in comparison to revenue. The higher your ratio, the higher the fees. You’ll pay more simply because you’ll be a higher risk merchant.     The rise of virtual cards has also impacted chargebacks for hotels. Virtual cards are meant to be used for a specific amount, trip, or timeframe, or only for a single use. In travel,  Virtual cards have become the primary means of payment for travel booked through corporate travel agents and even OTAs, like Expedia. There are also several consumer services, such as Privacy.com, that enable consumers to use  virtual cards  online purchases. Virtual cards complicate chargebacks, as the cards are not directly tied to a specific person. Rather, the issuing entity must be the one to manage the chargeback.  This can lead to chargeback costs that are even greater than standard credit cards, sometimes up to 2% more. So, even though virtual cards are nearly fraud proof, they can still increase costs.   The Most Common Reasons for Chargebacks Most chargebacks aren’t legitimate because consumers often misuse the chargeback process. The reason? They don’t want to confront the merchant directly. And, since it’s simple to do online without having to talk to somebody, it’s easy and avoids confrontation. This is called “friendly fraud” and it makes up the bulk of chargebacks. In one survey,  81% of customers said they contacted the bank before dealing directly with the seller.” Another estimated that 86% of chargebacks are actually friendly. This adds up to a significant burden on merchants, with 34% of merchants saying they had experienced friendly fraud, costing anywhere from $20 billion to $31 billion. And, with friendly fraud increasing at 41% every two years, hotels need a proactive strategy to keep a lid on chargeback costs.   Analysis showing the real impact of chargebacks on merchants like hotels.    Thankfully for hotels, it's much easier to prove that a service has been delivered when compared to ecommerce businesses. There are no damaged packages or delayed deliveries, and most people using a stolen credit card are hesitant to show up for a hotel stay. However, chargebacks can still be a significant cost per day --  and a giant headache -- for hotels.   How to Reduce Chargebacks at Your Hotel The more chargebacks you have, the higher your processing fees. So it's in your best interest to take a strong stance against fraudulent chargebacks and prevent artificial inflation of your property’s processing costs. And it’s not always a sureshot at winning a chargeback dispute; in fact, only 18% reported winning at least 60% of their chargeback disputes -- pretty terrible odds for the average merchant. Here are a few tactics for reducing valid (and fraudulent) chargebacks. Provide itemized invoices. Whether it's a printout at the front desk, sliding an invoice under the guest’s door, or sending an email right at checkout, have a clear process to share itemized invoices with your guests.The best time to fix any overcharges is while the guest’s still on property. Once home, it’s much easier for them to initiate a dispute -- and reduce your profit margin from that booking! Match payment to ID. One of the simplest ways ro reduce fraud is to verify that a government-issued ID matches the payment card.  Even if a reservation was paid for online, there’s value to verification when it comes to potentially documentation for a future chargeback.  Monitor your chargeback ratio. A higher-than-average ratio signals to processors that you may be a high-risk merchant. The higher the risk, the higher the fees. For example, Visa has an acceptable ratio of 0.9% and 100 disputes per month. A rising chargeback ratio could indicate that there’s something failing in your billing operations -- or that your hotel is being targeted by bad actors. Be thorough and prepared. You never know which transaction may trigger a chargeback, so keep good records. You need to have clear proof to respond to any disputes. Save a copy of the sales draft, folio, or rental agreement -- especially one that has been initiated or signed by the customer in question. All folios/receipts should be itemized, with the date and transaction amount. Keep records for 3 years. Most card issuers require a 13-month retention timeframe, at the minimum. Discover requires two years and American Express requires three. Make sure to keep your records at least this long. Digital copies may be accessible, But be sure to check your agreements to be sure.  Respond quickly. Chargebacks are an unpleasant chore. But don’t avoid them because there’s a time limit for responses. Each issuer has its own process, so get familiar and stay on top of it. You automatically forfeit the revenue if you don't respond on time --  even if you have the documentation to prove validity! Train your staff. Incorrectly entered payments or inaccurate bills can cause costly chargebacks. Make sure that you train new staff well and periodically refresh the team’s awareness of proper payment processing procedures.  Know your chargeback codes. Each issuer has codes for specific chargeback reasons. Make sure that you (or someone on your finance team) is familiar with each of these codes; that way, you can be sure to orient your dispute documentation around the specific reason for the chargeback. Each chargeback diverts staff labor that could go to more productive uses and can also reduce your revenue. These are two undesirable outcomes that should be avoided at all costs. Instead, protect your hotel with strong operations and clear procedures, tackling chargebacks with a standardized, thoughtful approach to reducing chargebacks.  

How to Calculate RevPAR and Improve Hotel Profitability

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Hotel Tech Report
2 months ago

Anybody who's worked in the hospitality industry knows that we are prone to confusing terminology. Terms like CPOR, ADR, GSS, NOI, GOPPAR leaves hotel students dizzy studying for final exams.  There's good news though, by the end of this article RevPAR will be a breeze. RevPAR is the queen of all hotel management KPIs (key performance indicators) because it helps us compare different hotels apples to apples.  If your hotel's occupancy is higher than the next property in your compset it may be because your rates were too low and vice versa.  RevPAR or revenue per available room helps us understand performance by combining both occupancy and ADR (average daily rate). Hoteliers love using RevPaR because it helps us understand in a single metric how we're doing relative to similar hotels when adjusting for number of rooms.  When RevPAR is growing our hotel revenue is increasing; however, a rise in average room rate may actually not increase revenue if occupancy has fallen In this article we'll show you how to calculate and interpret RevPAR with ease and this article is designed for both industry veterans and those who are newer to the hotel industry.   What is RevPAR in Hotel Revenue Management? (Revenue Per Available Room) RevPAR is a straightforward hotel performance metric that tracks how much money a hotel is making on its rooms. It’s correlated directly with a hotel’s Average Daily Rate (ADR) and its Occupancy Rate.  For a given period, you can calculate hotel RevPar using these RevPAR formulas: RevPAR = ADR x Occupancy Rate OR RevPAR = Total Rooms Revenue /  Total Rooms Available During Period To influence RevPAR, you can increase ADR and/or occupancy. In general, a higher ADR and occupancy rate means more revenue per available room. There’s a limit, however. At some point, the higher rate will reduce demand and push occupancy down.  The way consumers respond to pricing is known as the price elasticity of demand. Hotel prices are fairly elastic, which means there are other factors that influence hotel demand curves: Income, geography, macro employment levels and hotel category also shape how rate changes occupancy rate (and thus RevPar).  In other words, it's complicated. Sometimes, a higher ADR results in more bookings and a higher RevPAR. Like during periods of high demand, when inventory is constrained in the local market and consumers are far less price-sensitive. Luxury hotels also have more pricing power than budget hotels.  Even within luxury different types of hotels will command different rates based on attributes like amenities and reviews.  Similarly branded properties (all else equal) typically command higher RevPAR than independent boutique hotels (assuming it's with a strong brand). To see how this plays out, let's consider a scenario. You’re the revenue manager at a four-star hotel in New York City. Business has been slow and so you're considering dropping your rates to increase occupancy. Your RevPar for the same period last year was $280 ($350 ADR * 80% occupancy) but you’ve been running 20% under year-over-year occupancy for the past 6 weeks. Your forecast for the next month shows a RevPar of $180 ($300 ADR * 60% occupancy).  To close this revenue gap, you decide to drop your average rates to $250. Over the next week, bookings accelerate and forecasted occupancy goes up to 70%, which means RevPar is now $175 ($250 * 70%).  Wait, what?  Yep, you dropped your prices and now you're actually making a bit less money per available room than you were before. This might not seem like a big deal; more revenue is good, right? Wrong. You need to keep profitability in mind so that you don't drop rates to increase occupancy...and actually make less money because it costs a fixed amount of money to service each additional room. As you can see, revenue management strategy is complex; you need to make sure that pricing decisions don’t inadvertently affect overall profitability. RevPar is one data point within a broader analysis. You must have a broad base from which to gather real, accurate insights on your hotel’s performance -- and which revenue strategy works best for a given period of time and for specific business goals.   Grow Your Understanding of RevPAR To get more nuance from RevPar as a core hotel metric, consider its siblings: Net Revenue Per Available Room (NRevPar) and Total Revenue Per Available Room (TRevPar). These variations can help you maintain an accurate and useful analysis of your current revenue strategy.   NRevPAR  This metric is total room revenue minus the cost of distribution. Here’s how to calculate a hotel’s NRevPar: NRevPar = (Total Rooms Revenue - Related Distribution Costs) / Total Rooms Available This metric could be calculated for a specific time period, channel or segment. For instance, you could track your net revenue from OTAs and then compare it to direct bookings. This is a helpful comparison, as direct bookings also have a distribution cost. From the technology required to handle direct bookings to performance marketing and other demands generation efforts, direct booking certainly isn’t free.  NRevPar aligns revenue, marketing and management around profitable distribution. All things equal (such as demand and caliber of guest), inventory should be allocated to the lowest-cost channels first and then onwards based on the overall cost of each booking.   TRevPAR  Many hotels aren't just places to sleep; guests can eat in a restaurant, enjoy happy hour at the bar, relax at the spa or book a tour at the concierge. To get a more accurate picture of the hotel’s overall performance, use TRevPAR, which is the total revenue per available room.  Here’s how to calculate TRevPAR: TRevPAR = Total Revenue During a Period / Total Rooms Available You can use this metric to see how well you were doing at generator incremental revenue from food and beverage and other on-site amenities. The higher the number, the more money you are capturing from each guest. And if TRevPAR is trending lower, it's time to do a deep dive and investigate the root cause.   How to Improve RevPAR at Your Hotel There are two ways to increase your hotel’s RevPAR: Increase your room rates (higher ADR) or put more heads in beds (higher occupancy %). As we saw earlier, there's a delicate balance at play. If you increase your rates too much, you risk lower occupancy. If you focus on occupancy only, you'll likely need to lower your rates. Here are some tactics to help you maintain this balance. Ultimately the top way to improve RevPAR is by utilizing a revenue management system like BEONPRICE which can help you price rooms more efficiently and maximize the balance between occupancy and average daily rate.   Tactic 1: Increase ADR (Average Daily Rate) You don't necessarily need to remodel your hotel operation to increase ADR, even minor (yet targeted) improvements to the guest experience can boost online review scores which help prospective guests justify paying more for your rooms relative to the competition. Optimize your channel mix. Frequent data-driven channel optimization is a great way to boost ADR. Make it a habit to compare your average rates across your major booking channels so that you can focus on higher rate channels first. This comparison not only includes your OTAs and metasearch but also direct bookings. Use that comprehensive benchmark of channel performance to prioritize channels that deliver a higher ADR. For instance, if metasearch is performing well, you may want to reallocate Facebook ad budget to TripAdvisor.  Upsell more. Are you doing enough to maximize revenue from every booking that you earn? Effective upselling is one of the most straightforward and impactful ways to increase average rates. Among the most effective upsell techniques is email marketing, which can be automated to send pre-arrival emails that entice guests to upgrade their experience. Each upgrade, whether sold prior to arrival or at the front desk, pushes your ADR up.   Tactic 2: Increase Occupancy Adapt to demand. It's pretty easy to increase your rates when your market is busy. It's during those slow periods where you may want to focus more on your occupancy rate. Talk to your OTA market managers about running promotions. Build outreach campaigns targeted to specific segments, such as groups and corporates, that can efficiently fill rooms. Also, be sure to let automation amplify your efforts: revenue management systems like BEONPRICE will automatically make pricing decisions based on real-time market- and property-level data. Your prices will be based on the latest data and you can make adjustments as needed Market to loyal guests. Your most loyal guests can bring your occupancy up (and are often less price-sensitive than a transient guest from an OTA). Nurture these relationships over time so that you stay top-of-mind. Then, when you’re looking at a less-than-desirable forecast, create a promotion for past guests. By focusing on this segment, you can put heads in beds without resorting to discounts on third-party channels.  

Hotel Accounting Software: Why Do Hotels Need Specialized Vendors Like M3?

by
Hotel Tech Report
1 year ago

Accounting as a hotelier is a time and resource intensive process. Finding the right hotel accounting software can make or break your business – and potentially lead to efficiencies and cost-saving that can vault you ahead of your competitors. While there are many tools available in the marketplace, today we’ll focus on m3as (M3 Accounting Software). Widely regarded as a top back-office hosted software solution provider for the hospitality industry, the M3 platform offers state-of-the-art, intuitive accounting, business intelligence, and payroll solutions across all brands and independent hotels in the U.S. and Canada. Built by hoteliers, exclusively for hoteliers, the platform allows franchisees access to their financial and operating information in real-time with user-friendly reports. Leveraging the various platform solutions, users are able to reduce overhead and labor to remain competitive in the industry. But don’t take our word for it; let’s take a look at some real-world examples of the platform in action and highlight the efficiencies and added capabilities afforded to those that have adopted M3.     Hotel accounting software delivers actionable business intelligence reports that the generic providers can't   In 2002, HP Hotels was seeking to shift their focus. The hotel brand was spending time and resources building, updating, and maintaining an expensive computer infrastructure on which their accounting and business intelligence programs would run. Accounting and business intelligence were burdensome processes that were preventing the brand from reaching their growth goals. Rather than continuing to focus on the older, expensive computer infrastructure, the company was interested in taking a proactive approach to manage assets and generate returns for owners. Enter M3. After listening to recommendations from industry peers, HP Hotels signed onto the M3 platform. The move has since paid dividends, with the brand growing from two hotels in 2002 to more than 35 properties in 2019. What specifically spurred the growth? The M3 Accounting Core and Operations Management software. After adopting a streamlined staffing model, HP Hotels needed to manage the bulk of their accounting above property, which would eliminate the need for full-service accounting staff at the hotel level. The Accounting Core tool of the M3 platform provided the means for the efficiencies it didn’t think possible, saving both time and resources. Additionally, by utilizing the Benchmarking tool in Operations Management when considering new properties, HP was able to view a quick snapshot of where the potential hotel compares with like brands in the system. This allowed for quick and easy evaluations to be made, leading to smarter, more educated investments. Additionally, Benchmarking has been incorporated into HP Hotels' budgeting cycle to provide leadership with the intelligence needed to analyze how they are measuring up to the competition, because, according to CDO Kerry Ranson, "What got us here won't get us there." Functionality: Accounting to manage the bulk of their accounting above property. Benchmarking in Operations Management for more immediate and actionable Business Intelligence reports. Business impact: Allowed for executing of the streamlined staffing model as well as quick evaluations of new properties, leading to the brand growing from two properties in 2002 to more than 35 in 2019.   Cross-brand benchmarking insights   Working to handle the needs of 24 properties, Coakley & Williams Hotel Management Company's two-person IT department found it was spending much of its time responding to simple requests for information. Many of information requests were routine in nature. C&W wanted to find a way to give the IT department the ability to spend its time in more productive ways, which would help C&W increase its own efficiencies. After a series of conversations designed to help M3 understand all sides of the issue, M3 recommended its Accounting Core solution. The software’s setup keeps each individual property’s data confidential, unless a member of a particular property is accessing the system. It also creates aggregate data to help C&W compare each property’s income and expenses against other properties of a similar size and branding. The solution directly addressed C&W’s needs by allowing each of its managed hotels to access its financial information directly and providing the ability to look at the day-to-day performance of each hotel. Prior to the adoption of the M3 platform, the IT department, was spending up to 50 to 60 percent of their time serving as backups for information requests. Now, C&W’s IT staff says it spends less than 5% of its time on hotel-related issues, allowing the department to offer its services to other clients as a way to generate revenue for the company. “In essence, M3 has helped us turn our IT department from a cost center into a profit center,” reports CIO Stephan Hahn. Functionality: Allows each hotel to access its financial information directly and provides the ability to look at the day-to-day performance of each hotel. Business impact: The access to real time and individual hotel-specific information led to a 55% reduction in resources spent by IT on property-specific requests. This allowed IT to offer additional services to clients and generate additional revenue for the company.   Accounting software built for hotels has scalable infrastructure designed by domain experts   On August 29, 2005, everything changed. Hurricane Katrina tore through the Mississippi Gulf Coast, destroying much of the Biloxi office of Encore Hospitality as well as flooding their IT room. Deploying their disaster-recovery plan, the team righted ship and ultimately moved to Dallas, TX, deciding on a location that was less at-risk for natural disaster. The disaster allowed Encore the opportunity to evaluate its current accounting process:, a bloated, outsourced model that had become very costly and required a large, non-scalable infrastructure of hardware, custom software, and 4-5 IT staff to maintain. Additionally, though they relocated their headquarters, the model provided them no assurance that the accounting functionality could be seamlessly maintained and remain operational in the event of another natural disaster or unforeseen incident. M3 was able to intervene and assist. By implementing M3’s products and solutions, Encore was able to downsize its IT department to just two team members, and the offshore accounting team has been reduced to a few associates who input hotel accounting data remotely into Accounting Core. More importantly, the costly hardware infrastructure has been replaced by M3’s private, cloud-based solutions, which store data safely in redundant locations and provide a zero unscheduled downtime solution in the event of disaster or loss at any hotel location. Functionality: Accounting Core reduces the need for superfluous headcount by making the accounting process more efficient. Additionally, the cloud-based platform ensures access in the event of a natural disaster. Business impact: Encore was able to reduce its IT department to just two team members and gained confidence and comfort that they would be able to access their platform regardless of the circumstances.   -- It’s evident that M3’s platform allows for resource efficiency as well as real time business intelligence and analytics, and the outcomes above speak to that fact. Adopting the M3 platform allowed for each company to streamline their headcount and accounting process, compare properties in real time, and secure their data in the event of a natural disaster. In the ultra-competitive landscape of hotel management, M3 has provided a leg up to HP Hotels, Coakley & Williams, and Encore and helps to ensure each company will stay ahead of the pack for years to come.