Technology systems utilized in the hospitality sector include the GDS (Global Distribution System), PMS (Property Management System), and CRS (Central Reservation System). However, they have various functions. GDS is a network that links hotels and other travel service providers with different travel agents, internet travel agencies (OTAs), and other distribution channels. This makes the central distribution of goods, prices, and availability across many channels possible. Hotels utilize GDS to control how their inventory is distributed to a variety of travel agents and to make it available to a worldwide audience. (The Difference between CRS and GDS in the Hotel Industry, n.d.)
PMS is a software system used in a hotel’s everyday operations, including reservations, check-ins, check-outs, guest information, billing, and room management. A single platform is provided for hotel workers to manage front desk operations, housekeeping, reporting, and other administrative chores.
On the other hand, hotels can manage their inventory and bookings across many distribution channels thanks to the CRS software system. Hotels may manage availability, prices, and limits for online and offline distribution channels using one unified database. CRS interfaces with the PMS and GDS to guarantee accurate and current information is transmitted across all channels.
Revenue managers are essential in controlling the overbooking ad. It is also essential to consider ethical practices; hotels willfully accept more reservations than they can accommodate to increase revenue, considering prior no-shows and cancellation trends. This practice is known as overbooking. The objective is to reduce the number of vacant rooms on any night to increase income. However, revenue managers must control overbooking to prevent major hiccups and negative visitor experiences.
To increase revenue, hotels willfully accept more reservations than they can accommodate, considering prior no-shows and cancellation trends. This practice is known as overbooking. The objective is to reduce the number of vacant rooms on any night to increase income. However, revenue managers must control overbooking to prevent major hiccups and negative visitor experiences.
Revenue managers should preserve ethical procedures for various reasons, including the following. Firstly, by ensuring guest satisfaction. If overbooking is handled ethically, visitors with confirmed bookings may be allowed accommodations. This can lead to dissatisfaction, poor reviews, and reputational damage to the property. Revenue managers focus on visitor happiness and try to reduce refused accommodations by implementing ethical overbooking. (SiteMinder, 2019)
Additionally, revenue managers should build Hotel Brand Reputation. Hotels that continuously prioritize short-term profits over guest satisfaction may end up harming their brand reputation in the long run. Ethical practices, such as appropriately handling overbooking, help to develop a strong company image and foster guest loyalty.
Moreover, Legal Compliance is a crucial matter that should be considered. Overbooking procedures must abide by all applicable laws and contractual commitments. Unethical overbooking can result in legal repercussions and financial liabilities for the hotel if guests are denied lodging without reasonable cause or fair compensation. (van der Rest et al., 2020)
In conclusion, revenue managers should limit overbooking to maximize income while prioritizing guest satisfaction and adhering to ethical principles. Data analysis, forecasting, and a careful balance are required to limit the danger of disruption to visitors while maintaining the hotel’s reputation in the long run.
References
SiteMinder. (2019, August 27). Hotel revenue management: Strategies to boost your topline revenue. SiteMinder. https://www.siteminder.com/r/hotel-revenue-management-strategies/
van der Rest, J.-P., Wang, L., & Miao, L. (2020). Ethical concerns and legal challenges in revenue and pricing management. Journal of Revenue and Pricing Management. https://doi.org/10.1057/s41272-020-00239-1
The difference between CRS and GDS in the hotel industry. (n.d.). Www.mews.com. https://www.mews.com/en/blog/difference-between-crs-and-gds
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