Among the critical choices in formulating a revenue management strategy,
selecting the primary distribution system for a hotel stands out. Historically, the
Property Management System (PMS) fulfilled this role, but its limitations have
become increasingly evident in recent times.
Let’s clarify that our PMS partners are invaluable, but it’s essential to recognize
that the PMS was primarily designed for operational management rather than
distribution.
On the other hand, the Central Reservations System (CRS) was purpose-built
specifically for distribution management. It empowers hotels with enhanced
flexibility, broader reach, improved connectivity, and more control over
reservations and revenue within the distribution network. Therefore, it’s
unsurprising that a significant 89 percent of major hotel chains have shifted
toward a CRS-centric strategy.
The CRS is in fact a connected network of distribution applications that includes
the following components:
● Central inventory management – for managing rates, inventory, and
content
● Internet booking engine (IBE) – for direct bookings via the hotel website
● Channel manager (CM) – for bookings via OTAs and wholesalers
● Global distribution system (GDS) – for bookings via travel agencies, TMC
(Travel Management Companies, or Corporations Travel Managers.
● Central reservation office (CRO) – for bookings via the hotel call centre or
reception desk
● Payment gateway – for processing online payments and checking the
validity of payment methods
● Business intelligence (BI) – for aggregating raw information from multiple
sources and tracking, analysing, and interpreting important data
Moreover, the CRS seamlessly integrates with the PMS to synchronize bookings
and inventory. Depending on a hotel’s setup, these components may originate
from a single vendor as part of an integrated platform or come from multiple
vendors linked through Application Programming Interfaces (APIs). Additionally,
other third-party solutions, such as Revenue Management Systems (RMS) and
Customer Relationship Management (CRM) software, can also be integrated
through APIs.
For guidance on determining if a CRS-centric approach aligns with your hotel’s
strategy, D-EDGE Hospitality Solutions has prepared a comprehensive guide,
available here.
