Hotel Management System, How to Run It Properly

In today’s increasingly complex and competitive hospitality industry, a computerized hotel management system is not simply a supporting facility, but a fundamental foundation for efficient, accurate, and measurable operations. These systems are built based on industry best practices, structured through logically connected process sequences that have been proven to deliver optimal performance.

However, a critical question arises:
Are we truly operating by the system — or are we operating and even hijacking the system for personal convenience and interests?

Operational success is achieved when the system is fully implemented and integrated across all hotel departments—from Front Office, Back Office, to Logistics. The system records each transaction and automatically generates financial entries without repetitive data input, delivering accuracy, transparency, and real-time reporting efficiency. Therefore, the system must be executed according to the defined workflow and must not be bypassed.

Systems Built on Best Practices

Hotel management systems are designed to follow structured sequences such as annual budgeting, marketing and pricing strategies, reservation processes, check-in, in-house transactions, check-out, night auditing, and performance reporting. Each step in this sequence must be followed accurately in order to produce valid and accountable data.

Similarly, logistics and inventory management processes must follow the lifecycle of material requests, purchasing, receiving, storage, and usage to ensure cost control and prevent leakages.

Indications That the System Has Been Bypassed

Although systems may be present, many hotels do not actually operate according to them. Instead, systems become mere data-entry tools rather than strategic management engines. Common indicators that systems are being bypassed include:

1. Many system features are unused
   Modules such as forecasting, Business Intelligence, inventory control, cost recipe control, menu engineering, loyalty programs, or night audit reports are neglected and not utilized to drive performance.
2. Rate plans frequently overridden
   Manual override becomes routine, damaging revenue structure, distorting pricing strategy, and resulting in inaccurate financial reporting.
3. Access codes and passwords are openly shared
   Shared logins eliminate audit trails and open opportunities for manipulation and internal fraud.
4. Hotel performance cannot be measured accurately
   Data is incomplete or delayed, making forecasting, reporting, and management decision-making unreliable.

Corrective Actions When These Indications Appear

When signs of system bypass arise, corrective measures must be taken immediately to restore system discipline and operational integrity:

1. Conduct a comprehensive system audit
   Review processes, data accuracy, workflow execution, and feature utilization.
2. Retrain users and refresh operational understanding
   Many bypass cases occur not due to malicious intent, but because users lack understanding of how the system should be applied.
3. Provide mentoring from experienced hotel operators
   Practical guidance ensures the system is implemented consistently and behavioral change is sustained.

Conclusion

Technology and automation systems are merely tools. The true value of a hotel management system depends on the people who operate it. Therefore, it is essential that every system operator and management team possess a strong understanding of the best practices that the system is designed to support, and commit to running the system according to its process sequence — without bypassing it.

When systems are executed properly:

• Data becomes accurate and real time
• Decisions are based on facts, not assumptions
• Costs are controlled and leakages minimized
• Guest experience improves
• Hotel profitability increases significantly

A question for every hotel leader:

Are we truly operating by the system — or are we hijacking the system?

Author:

Ojahan Oppusunggu
Director of Technical & Technology – Artotel Group