If you own a vacation rental, guest house or hotel, you’ve probably heard of PMS (property management system) and channel manager. But what’s the difference between a PMS and a channel manager ?
Do you have to have one or the other? Or do you have to subscribe to both tools? This article will help you choose the best solution for your business.
What’s the difference between a channel manager and a PMS?
These are two different but complementary tools.
Main features of the channel manager :
- distribution of your offer on all OTAS ;
- Update and synchronize reservations across all your calendars;
- Price updates from a single interface;
- Automates rate and availability updates.
Main PMS features :
- Tracking reservations and customer profiles
- Payment tracking and billing software
- Household management (tasks, schedules)
As you can see, these two programs are not identical, but rather complementary. If your needs are solely for distribution on platforms, you’ll prefer Channel Manager.
If you need to manage the day-to-day running of your home or hotel, opt for a PMS.
However, if you intend to develop your business professionally, we recommend that you have both!
That’s why it can be a good idea to subscribe to an all-in-one solution. In other words, software that combines both tools.
Hostaway, Lodgify, Octorate (for small independent hotels) are 3 of the best all-in-one solutions on the market for vacation rental companies.
If you run a concierge service, you’ll prefer Pass Pass conciergerie, or RentalReady, which have been created by concierge companies for concierge companies. These two tools offer all the functionalities you need to run a concierge business!
Comparison between channel manager and PMS :
Functionality:
A property management system (PMS) is designed to facilitate the operations involved in managing your seasonal rental(apartment, hotel), such as reservations, guest check-in, invoicing and maintenance of your accommodation or rooms. On the other hand,
A Channel Manager is there to distribute your offer through the various distribution channels, such as your website, online booking platforms(OTA, Booking, Airbnb, Expedia, etc.) or booking engines such as Tripadvisor.
Integration:
A PMS and a channel manager can share common functionalities such as :
- synchronization of your reservations on your platforms (OTA, website);
- price synchronization, minimum length of stay and price ;
The updates made by these tools are essential to guarantee the consistency displayed on your various distribution channels and avoid overbooking.
Automation :
A PMS automates your repetitive, non-value-added tasks.
- Customer billing ;
- Customer communication ;
- Message management for cleaning staff.
A channel manager automates distribution:
- price of your nights ;
- availability of your calendar.
Analysis and Revenue Management :
A PMS allows you to optimizerevenues thanks to detailed, customizable dashboards.
The channel manager allows you to distribute your dynamic pricing across all your distribution channels. Some of them allow you to set different prices for different online agencies to optimize your profits.You can use the tool Pricelabs with them
User interface and accessibility :
A PMS is adapted to the hotel’s needs and daily operations (housekeeping, invoices, customer files, etc.).
In comparison, a channel manager can provide a dashboard with some key seasonal rental data (occupancy rate, RevPar, average price, etc.) to monitor the dynamic pricing strategy.
Channel Manager or PMS: which should you choose for your vacation rentals?
The choice of one or the other depends on your business needs. If you’re primarily interested in your visibility on online platforms, you’ll need to choose a channel manager that offers the essential functionalities required for this activity.
This is the solution of choice if you’re a seasonal renter.
On the other hand, if you want software to manage the operations of your establishment, opt for a PMS. It’s the solution for independent hotels and short-term rental property managers.
For the second option, you still need to connect to a channel manager.
We therefore recommend an all-in-one solution: PMS + Channel manager.
For very large managers: Hostaway will be the most complete and powerful tool.
The best value for money for medium-sized managers (30, 40 properties maximum), we recommend Lodgify, the channel manager with the best website.
Once you’ve seen the comparison between the two solutions, you’ll want to know more about the functionalities of channel manager and PMS – read on!
What is a channel manager?
A channel manager is software that links your reservation system to online travel agencies (OTAs). The best-known are Booking, Airbnb and Abritel, thanks to API integration.
Generally speaking, the channel manager will suggest other, more “” nested platforms with Ical link integration.
This tool enables you to synchronize your bookings instantly across all platforms and, if necessary, your website! Say goodbye to overbooking and double bookings.
What’s more, the channel manager is also capable of updating prices and, for the most powerful among them, minimum length of stay on your OTAs. Everything is managed from a single interface, so there’s no need to connect to multiple platforms.
The main function of the channel manager is to distribute your offer on the Internet. It’s more of a marketing tool than a rental management software.
So you can consider the channel manager indispensable to your business. Your time is precious, and this automation will enable you to manage other, more customer service-oriented tasks in your business.
Channel manager features :
- Eliminates errors – All data entry is automated, eliminating the need for manual data entry and the risk of data errors from platforms. All your ad updates are up-to-date and accurate across all your distribution channels.
- Real-time updates: every time one of your customers books on one of your listings. The channel manager automatically synchronizes all the calendars on all your OTAs. You can also update your website if you wish. Your available dates will be updated instantly WITHOUT your intervention on all your distribution channels. No more double bookings!
- Detailed dashboard – Most channel managers will provide you with detailed reports and information on your bookings. For example, they’ll tell you the occupancy rate, your revenues or the commissions you’ll be paying to OTAS. Some go even further, providing you with tax data to assist you with your legal declarations. This data is invaluable for establishing a strategy for your investments.
- Centralized interface – The channel manager enables you to manage all your activity on a single interface, saving you time in managing your ads on all your OTAS from a single screen. What’s more, all your data will be consistent across all channels.
- Real-time synchronization – Automated booking updates, instant synchronization of your availability in real time. Minimum stay can also be managed by channel managers. The dynamic pricing you set will be simple and error-free. No need to go to each platform to modify your rates.
- Manage listings on OTAs, including Airbnb, Expedia and Agoda.
What is a multi-channel distribution strategy?
One strategy is to list your accommodations on several booking platforms.
You can create your ads on Booking, Airbnb or Abritel. These are the best-known and most widely used in France. Others like Trivago or Agoda are worth considering. They are generally part of groups with other brands. So, if you list your ads on one of these three platforms, your ad will be displayed on a group of brand sites.
Thanks to them, you’ll benefit from increased visibility on the different brands of online travel agencies.
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What is a property management system (PMS)?
PMS is a software package that helps owners of seasonal accommodation and hotels manage all aspects of their business.
A PMS helps you keep track of reservations, customer profiles, property maintenance and accounting. They’re designed to help you manage your business, save time and improve your customer experience.
The PMS system is designed for the day-to-day operations of a hotel. The channel manager as mentioned above allows you to distribute your offer.
Common features of a PMS :
- A booking engine that allows you to obtain live bookings on your website.
- Payment of reservations and options will be managed by your PMS.
- Create a message sequence to improve your welcome. Send and receive messages to travelers from a single inbox specific to your PMS. No need to connect to OTAS. For the most efficient among them, SMS and Whatsapp can also be sent.
- Track and manage your maintenance staff. Automate messages to schedule their intervention. Your staff can notify you when they have completed their task.
- Sales, occupancy and RevPar reports are available at any time, in real time. These customized dashboards give you an overview of your business performance, providing you with the key indicators you define.
- PMS often comes with billing and accounting software to help you produce year-end accounting and tax statements.
- A single calendar with your reservations for all your accommodations or rooms A visible occupancy rate in just a few moments. Ideal for preparing a dynamic pricing strategy. Adjust your prices in line with your occupancy rate.
- Customizable dashboards for easy, detailed analysis. Everything measured can be improved. This will provide you with a sound basis for increasing the performance of your ads.
- Some PMS offer webinars and blog articles, a real help in increasing sales and occupancy rates.
PMS is often a tool for integrating other solutions. In fact, depending on your needs, a good PMS can be connected to other software (channel manager, check-in software or your accountant’s software, for example) to make its use as complete as possible.
