• Why the CRS is fast becoming the central hub of hotel distribution strategy

    CRS is fast becoming the central hub of hotel distribution strategy

    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

    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
    ● 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.