How do Hotel Reservation Systems work? +Types & Benefits

What is a hotel reservation system (or Booking engine)?

A hotel reservation system or booking engine is a software solution that helps hotel managers manage bookings more efficiently. It streamlines the booking process by managing room inventory, rates, and bookings in real time. Furthermore, this software can work with a variety of online travel agencies (OTAs), to increase reach and revenue.

Types of Hotel Reservation Systems

There are two types of reservation systems-

1. On-premise  Reservation System

An on-premise booking engine is installed and managed directly on the hotel's servers and hardware. This type of software provides greater control and customization, but it requires regular maintenance, updates, and IT support.

2. Online Reservation System

An online booking engine, also referred to as cloud-based, is hosted and managed on remote servers. Hotels can access the software via the Internet. It is often less expensive and easier to set up than on-premise software.

Importance of a Hotel Reservation System

Choosing the right booking engine is critical to the success of any hotel. Here's why it matters:

• Maximized Bookings: A good booking engine can help increase bookings by providing a user-friendly interface and simple booking alternatives.
• Improved Guest Experience: An efficient software enables a smooth booking procedure and precise room availability, hence increasing guest experience.
• Time and Cost Savings: Automated booking and management chores lessen the workload on staff, saving both time and money.
• Better Revenue Management: With the appropriate software, hotels can optimize pricing, promotions, and booking channels to boost revenue.
• Real-Time Availability: A booking engine shows current room availability, reducing the risk of overbooking.

How Do Hotel Reservation Systems Work?

Guests start by picking a room type, date range, and number of guests. The software shows available options based on these parameters. Guests enter their contact information, special preferences, and any other information required throughout the booking process. 

Guests pay for their booking through a secure payment gateway built into the software. Once the money is confirmed, guests will receive an email including their booking information and other pertinent information. 

When the guest arrives, the software updates their status and delivers the check-in information. At check-out, it manages the guest's departure and billing. Following their stay, guests may receive follow-up emails requesting feedback.

A well-chosen online booking engine can significantly improve your hotel's performance. Consider your hotel's specific requirements and select a system that corresponds with your objectives for optimum effectiveness.

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