What Is Property Management System (PMS): Definition, Meaning, Examples

Property Management System (PMS)

A Property Management System (PMS) is a full-fledged software application used by hospitality providers to orchestrate their day-to-day operation activities. It serves as the central command point of the physical property, automating key tasks on-site like guest check-in and check-out, specific room assignment, housekeeping management, guest billing, and invoicing.

Home Travel Glossary P Property Management System (PMS)

The Operational Core of the Hotel

While the CRS (Central Reservation System) is in charge of the selling of the hotel rooms and services to the outside world, the PMS (Property Management System) is in charge of the reality of the hotel on the inside. It replaces the traditional reservation book and is the main tool used by the front desk staff, housekeeping, and finance teams.

Its core functions include:

  • Front desk operations: Processing arrivals and departures, issuing key cards, viewing the “tape chart” (a visual timeline of room occupancy).
  • Room inventory management: A PMS, unlike a CRS, which sells room types (e.g., Deluxe King), assigns specific units (e.g., Room 304).
  • Housekeeping and maintenance: Monitoring the real-time status of rooms (Occupied, Vacant, Dirty, Clean, Out of Order) to ensure the front desk knows which rooms are ready for new guests.
  • Guest accounting: Tracking all charges for guests — from room rate to restaurant meals to spa services — in a single folio for final billing.

From Legacy to Cloud-Native

Historically, Property Management System software was server-based, where it was installed physically on a computer in the hotel’s basement. These legacy systems were costly to maintain and hard to integrate with other tools.

Today, the industry is moving towards cloud-native PMS. These systems are hosted online (SaaS) and available through web browsers or tablets. Their greatest strength is connectivity. A modern cloud PMS has open APIs, so you can integrate with an enormous ecosystem of third-party apps, such as:

  • Point of sale (POS) systems (restaurant/bars).
  • Keyless entry system (mobile keys).
  • Revenue management systems (RMS).
  • Self-service kiosks.

Frequently Asked Questions

What is the difference between PMS and CRS?

The CRS is the distribution engine (selling the room to the market). The Property Management System (PMS) is the operation engine (managing the guest once they arrive). CRS sends the bookings to PMS. PMS sends availability to CRS.

Is it possible for a PMS to handle online bookings?

Not on its own. A PMS is an internal tool. In order to accept bookings online, it must be connected to a booking engine (IBE) or a Channel Manager, which will feed the reservation data into the PMS.

Is a PMS only for hotels?

No. While associated with hotels, PMS software is used by hostels, vacation rental management companies (which run hundreds of Airbnb listings), and serviced apartments. There are special PMS versions for each of these types of accommodation.

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