One of the most important decisions in revenue management strategy is determining which software will be the hotel’s lead, or master, distribution system, acting as the central repository and source of truth for room rates and inventory. Traditionally, the PMS has filled this role, but in recent years its limitations have become increasingly apparent.
When the PMS was conceived in the 1980s, there was no internet. Distribution was a relatively simple process, and the PMS sufficed. Since then, online and offline distribution channels have proliferated, and the PMS has been unable to keep pace.
Don’t get us wrong, we love our PMS partners, but the PMS was built to manage operations, not distribution. As a distribution platform, it can be slow and inefficient, constrained by limited features and connectivity issues. This is especially true for operators of multi-property hotel groups that use legacy PMS platforms, although there has been some progress with newer, cloud-based platforms.
Meanwhile, the CRS (central reservations system) was purpose-built for managing distribution, providing hotels with greater flexibility, reach, connectivity, and control over reservations and revenue across the distribution network.
Perhaps it’s no surprise, then, that 89 percent of large hotel chains have shifted to a CRS-centric strategy, according to h2c’s 2022 Global Hospitality Distribution Study. Meanwhile, however, 33 percent of medium-sized hotel chains and 58 percent of small hotel chains still use the PMS as the lead distribution system. While the study focused on hotel groups, we can assume that the number is even higher for independent hotels.
