All booked in

Central reservation systems have evolved to incorporate many aspects for booking, revenue and inventory management.
A click of a button! Owing to the internet age, we’ve heard those words innumerable times with regard to the many accomplishments now possible with only as little as a touch of a button. Apart from just making the lives easier of the end-consumer, the same key touch has made the processes easier for the hotel industry. Gone are the days of tedious phone calls and enduring cumbersome processes to get a booking done – now, there’s rarely, if any, interaction between the reservations desk and the guest before the latter’s arrival, thanks to the introduction of the streamlined software, central reservations system (CRS).
Shedding light on the matter, Deepak Khusalani, director of revenue management, Sofitel Mumbai BKC, says, “CRS allows us excellent management by balancing rate levels with room types, as per demand.Restrictions such as minimum and maximum length of stay, close to arrival, etc, further allow yield management with much ease.” The benefits, he adds, of the fully automated Accor distribution system is that it is “extremely robust and compatible with all key online distribution platforms and agencies. This allows for seamless inventory management for each of the group’s properties with minimal human intervention.”
CRS is a software, used by the tourism industry, to provide a linear approach to booking accommodation. It is flexible and can be accessed by everyone – from individual customers to travel agencies – and tailored to suit the hotel’s requirements. Information on the CRS can be updated, while features like customer loyal programmes and group booking discount can be added; in case of travel agencies, the tool can store information on special negotiated rates or commissions. The only requirement of online/external vendors is to interface with the respective hotel’s CRS to ensure complete transparency as well as market penetration.
The highlight of using CRS is that hotels can market and conduct sales at any time of the day, and cater to an audience in any part of the world, especially since most modern systems are multi-lingual and capable of converting currencies. Another advantage of using the system is that it requires little manpower, leading to be seen as an efficient, largely error-free (since guests key in their own information) and easily monitored tool. Apart from gaining a customer database to aim strategically planned promotional campaigns, hotels can unquestioningly benefit from the connection of their CRS with the global distribution system (GDS) interface, which gives the property visibility and unparalleled advantage, among thousands of agents, to elevate sales.
While various hotel chains have embraced the system in the last decade, their associations with online vendors and agencies is just a mark on their continued efforts to create a seamless booking network. Caroline Zwierz, complex director of revenue, The Westin Gurgaon New Delhi and The Westin Sohna Resort and Spa, asserts that the opening of multiple sales channels is healthy for the hospitality industry. “We have tied up with Indian as well as international online vendors for the past four years, through whom we attract a new pool of potential customers. Although the percentage of bookings coming from external vendors is still small, our revenue management team manages and monitors the system to avoid a mix up,” she says.
In agreement with Zwierz is Rakshit Talwar, director, sales & marketing, Grand Mercure Goa Shrem Resort. He states: “We’ve tied up with various travel agents and leading online vendors in an effort to increase visibility and productivity of the hotel as well as a choice of online marketing. We’ve recorded 20% sales coming in from these vendors, owing to the larger client reach they offer, which in turn boosts room night production, i.e. last minute bookings.”
In comparison, almost all luxury, mid-market and economy hotels record a 40-50% range for the total business from direct online channels, and peg their indirect channels to bring about between 20-30% of the same (albeit luxury hotels claim a significantly smaller percentage of business from external vendor), with a slight distinction for properties located in tier I or II cities.
For mid-market and economy hotels, the parameters key to the success of their global distribution system are different. Ginger Hotels, part of the Taj Group of Hotels, quite look to associate with online partners that have greater customer reach, brand presence, and opportunities for potential business, new markets and customers. Meanwhile, Pradeep Kalra, senior vice president, sales & marketing, Sarovar Hotels, highlights that apart from the obvious key parameters that drive their decision are others including the vendors’ “performance for our competitive set of hotels and city, credibility, penetration in terms of market share, participation fees, compatibility with our technology platforms and payment terms.”
The hotel industry has given the CRS, GDS and other technological platform a big thumbs up. Albeit where there is technology or human intervention needed, there will be challenges. In this regard, Ginger Hotels senses its biggest challenges are loss of control over processes and declining service levels. Whereas, Tarun Lakhanpal, assistant vice president, revenue management & distribution, The Lemon Tree Hotel Company, says, “The challenge is partly due to non-availability of cost effective “off-the-shelf” technologies to automate and integrate the sales, revenue management and central reservation management platforms.”
There may also be challenges on-site, as disclosed by Grand Mercure’s Talwar, who says, “We do not receive all guests’ contact details and information, which makes it challenging to directly reach out and follow up with the end-customer.” Zwierz speaks on similar lines regarding the Westin. She complains, “Some last minute bookings with external vendors, which are not directly linked into our system, do not get processed in time for check-in. This kind of situation doesn’t allow the front office team to create the renewed welcome as per our standards.”
While the need to address these concerns is certainly prevalent, these don’t serve as major roadblocks or deal breakers by any standard. Like Lakhanpal puts it, conclusively, “Customers today are smart, they will book you through the cheapest channel and as a hotel, it is our prime focus to retain as much as acquire new customers. The key is to have a unified strategy.” One, with the presence of CRS, that assures the capability to explore and make a vantage point of future opportunities.