6 Advantages of Using a Central Reservation System (CRS)

A CRS or a central reservation system is a specific software that applies to the hotel and travel industries. The CRS has many advantages for professionals in these industries as it offers efficiency in making bookings. The CRS is a software that involves the distribution of data, aiding in hotel management and travel planning.

The way that a CRS works is by relaying information from PMS (property management software) to a range of channels of distribution. A main advantage of using this system is that it enables the management of reservations from a single location. If hospitality is your business, then you better make CRS your business too.

How the CRS Works

To add some clarity to the CRS definition, let’s break down how it functions. Every time a customer reserves or books through any third-party platform, data and information is transferred from the main reservation system to the hotel property management software for synchronisation. The hotel front desk personnel then take over and complete the guest’s reservation.

As we move into the digital age, more and more people are turning to online sources for reservations and bookings related to travel. In 2022, two-thirds of all such transactions were conducted online. Online Travel Agents (OTAs) have become increasingly popular among travellers looking to explore prices or compare details between different reservation options.

With these easy to use portals, customers can search for their hotels and easily access the website for more information. Online bookings are direct reservations/bookings, and the CRS is a great enabler of this. You may have already gathered that the CRS can easily handle massive amounts of traffic and complex booking processes. But there is much more to know about the incredible benefits of using a CRS than just this.

Advantage #1: Increased Efficiency

A CRS is the perfect tool to make operations run more smoothly, boost productivity and reduce errors with its centralised platform that can handle reservations/bookings, pricing and inventory. This makes it ideal for hotels, resorts or other holiday accommodations who want to manage their bookings effectively while freeing up time to focus on important tasks such as customer service and marketing.

For example, all staff can access the same information and data at any time, eliminating the need to manually double-check reservation details or availability. There is no more waiting for confirmation of bookings, as this system handles it all in a matter of seconds.

Advantage #2: Wider Distribution

A CRS (Central Reservation System) revolutionises the way hotels and resorts manage inventory distribution, providing them with various channels of access – such as OTAs (Online Travel Agencies) or GDSs (Global Distribution Systems) – to draw in a much wider audience. This efficient system helps ensure that guests have an easier time booking rooms while reaching more people.

For example, assume a hotel uses a CRS. It can effortlessly manage inventory spread over many channels. This ensures that rooms do not get double-booked/overbooked, and rates remain consistent over every channel. Clearly, the beneficial takeaway for the hotel is the great amount of time (and money), not to mention errors, saved. Hotels can work more efficiently in this way and maximise profits instead of losing money.

Advantage #3: Real-Time Inventory Management

A CRS permits the management of your inventories in real-time. What does this mean for you, as a hotelier? It means you can prevent overbooking or under booking. By using a CRS, it is possible to view the availability of rooms with real-time, so you are able to update it immediately a reservation is done.

For example, when hotels fail to accurately gauge their occupancy, it leads to a precarious situation that can damage customer loyalty: double bookings. This occurs when multiple guests have booked the same room and neither of them gets cancelled or refunded for their stay. Such incidents are likely to result in disgruntled customers, who may then choose not do business with that hotel again.

As a hotelier, you can understand the damage this would cause to your hotel’s reputation and branding and reliability are the cornerstone of success in the hospitality industry. Whereas, if a guest books through an Online Travel Agency (OTA), the Central Reservation System will automatically update its records to reflect this. This will prevent the same room being booked on different channels.

Advantage #4: Better Rate Management

With a CRS, hoteliers can manage their rates across multiple channels and guarantee they are receiving the right price. You have the power to adjust your prices based on demand or seasonal trends as well as other criteria. Utilising a CRS is an easy way for you to maximise profitability while still offering competitive pricing.

For example, let us assume you own a hotel at a beach destination. As the owner of your hotel, you have a unique opportunity to maximise profits by adjusting rates based on customer demand and seasonal trends. You can offer higher prices during times when travellers are more likely to make trips (like peak season in summer), while offering lower rate options in slower times. By utilising this strategy wisely, depending on where your property is located, you will be able to maximise profits and make sure that you get the most out of every travel season.

Advantage #5: Enhanced Guest Experience

A CRS is a powerful tool for providing an unparalleled guest experience. By combining real-time pricing info and accommodation availability, guests can effortlessly lock in reservations and services with remarkable speed. This allows everyone to take full advantage of their stay without any hassles or delays.

For instance, let’s take a hotel that uses Central Reservation System (CRS). It is able to provide a better opportunity for customers to find out what they need. So, by providing guests with real-time updates regarding availability and rates, the CRS helps them make their booking decisions faster. This improved convenience allows guests to plan their holidays without worrying about room availability or prices. In addition, they can also take advantage of any promotions that the hotel might be offering, giving them an added incentive to book with your hotel.

Advantage #6: Data Insights

With a CRS, you can gain invaluable insights into your business operations. These facts and stats may include reservation patterns, demand trends, revenue metrics – all of which help hoteliers to make informed decisions quickly and efficiently. This data not only allows you to take decisive action on marketing strategies or prices that affect your hotel’s growth trajectory but also serves as a major advantage over competitors in the industry.

For example, you may use the data generated by your CRS to evaluate which marketing strategies are most effective for your target audience. This could be used to create targeted campaigns that will lead to an increase in bookings from specific regions or demographics. Additionally, you can use the metrics provided by the system to track revenue and occupancy numbers over time, and make adjustments accordingly. This helps you identify opportunities to increase profits or improve services. By gaining insight into all of these aspects, you can create a more efficient hotel business that is able to meet customer needs quickly and effectively.

All in all, CRSs are an invaluable tool for any successful hospitality business. With their help, hoteliers have the capabilities to maximise revenue, provide excellent guest service and gain valuable insights into their operations. By leveraging a CRS properly, you can ensure that your property will always be one step ahead of the competition.