How can a PMS reduce errors and overbookings in your reservation management?

A PMS by itself is ususaly not the reason for overbookings. Its either a human error or the connection between the PMS, the Channel Manager and the OTA is not quick enough. A Channel Manager often helps but hotels need to consider which they use as they differ in the speed and quality of the connection.

Strict Access Control: Ensure no user can override inventory in the PMS. Guarantee All Arrivals: Guarantee all bookings. Actively reach out to guests with non-guaranteed reservations to confirm their stay. Daily Arrival Checks: Verify daily that all channel bookings are accurately reflected in the PMS. Update Early Departures/Late Arrivals: Regularly input any early departure or late arrival notes in the PMS to maximize room utilization. Daily Inventory Sync: If available, perform this in your PMS to keep inventory balanced across all channels. Ensure OTA and Channel Manager Integration: Regularly check that all OTA channels are properly synced with your channel manager. Disconnections can lead to unsynchronized inventories.

I agree that a PMS properly managed does what it was supposed to do. But, we have to consider that human “error” dictates how many rooms the property will be oversold. When an organization (at least at hotel level) is aware of the overbooking (we all know that they know) but the revenue ($$$$) is more important, then we have those problems mentioned above. At the end of the day we have to look out for our guests. I worked for a GM who didn’t believe on the overbooking. He was looking out for our guests. That’s one tip to keep in mind.

A well integrated PMS helps a lot in synchronized inventory distribution. Nowadays PMS with cloud services is an excellent solution which allows the remote central reservation teams to colloborate and sell effectively the unsold inventory. Also channel management and revenue management software integrations keeps track of sold inventory in any of the channels and adjust the inventory levels. However the overbooking levels set by the hotel managers can sometimes complicate the reservation flow towards either sides. Such a manual overrides to the inventory limits can cost the hotels both revenue losses and guest dissatisfaction.

Nowadays with the correct and followed-up training, there is very little chance of mistakes and overbookings. While it might seem counterintuitive, strategic overbooking based on historical no-show rates can be a practice. However, it requires careful analysis and consideration of cancellation rates to avoid inconveniencing guests. Encourage clear communication between reservations and the front desk department. This ensures that everyone is aware of the current room availability and any changes in reservations. Implement booking limits based on room types, timeframes, or occupancy levels. This prevents excessive reservations beyond the hotel's capacity for a specific period.

An effective PMS not only makes the reservation process smoother, it would also enhance the billing transactions and backend softwares such account receivables, stores, budgeting and forecasting systems. Hence PMS can be considered as the center of all hotel management systems which disseminates the information across all directions.