In today’s world, it would be an anomaly for any enterprise or large organization to operate without the support of some IT system. Even small, private initiatives benefit from technology because, let’s be honest, it is very difficult to manage a business effectively using only paper and physical documents. The best systems that provide the most benefits to businesses while being comprehensive and supporting multiple processes simultaneously are BMS – Business Management Systems and ERP (Enterprise Resource Planning). Such solutions address the diverse needs of enterprises from various sectors – including the tourism and hospitality industries, which we will cover in more detail in this article. What is an ERP system and how can it be used in the tourism and hospitality sector?
An ERP system is an Enterprise Resource Planning system (
Enterprise Resource Planning). Thanks to ERP,
especially in the cloud version, businesses are able to manage their most important processes in one place, operating on a single, central database. All company employees have access to up-to-date information, and the
ERP system comprehensively supports finance, logistics, production, HR, sales, and other departments, eliminating the risk of errors resulting from, for example, incorrect data, while simultaneously streamlining business processes. Enterprises operating in the tourism and hospitality sector are highly developed and, just like companies in other industries, must think about optimization and technological support if they want to stay competitive in the market and avoid losing money on their operations. Enterprise Resource Planning systems for tourism and hospitality can reduce operating costs, automate repetitive tasks, and increase process quality, while shortening the time employees spend on tasks. This translates into higher ROI, increased sales, and better customer service, which in turn leads to more satisfied customers who are more likely to return and recommend the company to others. Of course, every company is different, even if they belong to the same sector. With this in mind, it is good to
consult with specialists who will analyze the organization’s needs and select the best possible system solution for the company’s goals and current situation. You can also use appropriate
documents such as RFI or RFP to conduct your own research on available ERP/BMS systems. Either way, it is important to remember that implementing such advanced systems that integrate an entire organization is quite complex and time-consuming, so you don’t want to choose just any system and
make the most common implementation mistakes. We must ensure that the chosen ERP for tourism and hospitality companies will bring the maximum benefits, which we describe in detail below.
Reservations and room management using an ERP system
One of the many activities that an ERP for the tourism and hospitality sector can significantly improve is reservation and room management. Every company offering trips and/or hotels to customers must have comprehensive control over available and occupied spaces – it cannot sell more accommodations than a hotel can actually hold at one time, or more seats in a specific means of transport. If such a situation were to occur, customers would certainly – to put it mildly – not be satisfied. An efficient system that meets the needs of a tourism company will automatically indicate which spaces are still available and can be sold within a given time frame, eliminating the risk of double booking. Enterprise Resource Planning will also help analyze historical data to forecast occupancy, allowing the organization to plan its budget several months in advance with much greater certainty than if it were done manually without system support. Room management will additionally assist in planning renovations or repairs, as necessary actions can be entered directly into the system if a guest points out an area for improvement in their room.
Managing additional services using an ERP system
Additional services in a hotel specifically mean services that are usually free (though some may, of course, be paid), available to travelers upon arrangement with the reception. These include: wake-up calls, laundry, room service, tourist information, storing valuables in a safe, as well as spa offers or Wi-Fi access. All these services can be described and recorded in the ERP system with appropriate reminders so that the staff has precise control over what has been agreed upon with which guest, eliminating the risk of errors or forgetfulness. An ERP for the tourism and hospitality sector will also store customer personal data in a secure place, linking it to payments and reservation history. With history and data at hand, sales and marketing departments can also use the ERP system to prepare advertising campaigns for various channels (email, social media, SMS) and offer their services or trips to specific individuals who have previously expressed interest in similar topics, which significantly facilitates lead generation. Travel agencies still offer their services in-person – agents working in such places will significantly improve their work with the help of technology. Having access to a system like ERP, they can much more easily prepare a personalized offer for a person present in the office in real-time, which translates directly into customer satisfaction.
Benefits and challenges of using an ERP system in the tourism and hospitality sector
The challenges of using an ERP system come down to three main points: choosing the best system for our company, implementing it smoothly – which is a long-term and complex process – and educating employees, many of whom may never have had contact with such advanced technological solutions. There are many systems on the market (for example,
EPICOR, which is often implemented by Mindbox), which is why we always emphasize that it is best to seek the advice of consultants who will significantly streamline these processes for us. Well-implemented ERP systems bring
a wealth of benefits that translate into the prosperity of the entire organization. One important thing is
reducing the company’s carbon footprint – especially in recent years, this has been a hot topic, and the tourism and hospitality sector can certainly work on being more eco-friendly. Moreover, Enterprise Resource Planning improves operational efficiency and increases control over what is happening in the company – all processes handled by ERP are under observation, which facilitates their analysis and the elimination of bottlenecks. ERP therefore allows for continuous improvement of operations while simultaneously increasing savings. The value of an ERP system is also that every employee responsible for specific tasks has access to data that is updated in real-time. There is no possibility that someone is working on old information and thus “wasting” time and resources, and the flow of information itself is much smoother and significantly faster. We have already mentioned customer service and preparing much better, personalized offers and advertising campaigns. What else an ERP system can analyze are market trends, operating costs, and the previously mentioned forecasts regarding traveler occupancy and financial projections. All this information allows decision-makers to align their vision and goals for the coming months, analyze profitability on an ongoing basis, make better decisions, and adapt their actions to the current internal and external situation.
The future of ERP systems in the tourism and hospitality sector
Enterprise Resource Planning systems are already conquering the market and
are here to stay – it is certain that they will continue to develop and offer better and better options to customers and potential customers. The same is true for the tourism and hospitality sector – this industry, despite the downtime caused by Covid-19, still has a lot to say on the market and offers travelers a variety of deals, refining them in every detail. In today’s world, it is hard to imagine a well-prospering organization without a
good IT system, so it is only a matter of time before the vast majority of tourism companies implement ERP. What you need to remember is
proper employee training – even the best system may not bring the expected benefits if employees do not know how to use it.
