Benefits of ERP in the Hospitality Industry
Now in a period of growth, the hospitality industry is looking to optimise and refine operational processes to deliver exceptional guest experiences and stay ahead of the competition. Conor Flanagan, Financial Reporting Consultant, at Storm explores how an ERP solution can help the hospitality industry achieve this.
Following quite a turbulent few years for the hospitality sector, early economic indicators are predicting a period of recovery and growth. However, for many in the hospitality sector, the difficult environment they found themselves in during Covid-19 has left a greater emphasis on improving operations, controlling costs and optimising business processes, with many reevaluating business software to maximise efficiency. Now in a period of growth, building resiliency for the future is critical to help navigate new unforeseen challenges in the future. Further, the hospitality industry is a highly competitive one with customers expecting more from those in the hotel, restaurant and entertainment business. Meeting and exceeding these expectations is what sets leaders in this space apart. To help stay on top of these demands, the hospitality industry requires software that is user-friendly, robust and easily deployed to multiple locations.
ERP Software can help those in the hospitality industry address these challenges while offering numerous other benefits. While many might typically associate ERP systems more with manufacturing, supply chain management, or eCommerce, they are known to serve the hospitality industry well and are being increasingly preferred over property management systems helping management keep an eye on all business operations while providing a better experience for employees and customers. Below we explore some of the top benefits that ERP software can offer to the hospitality industry.
A Single System
For some in the hospitality sector, each department uses different software for inventory management, housekeeping, front-office and POS. This can create an issue if these solutions are not compatible or do not communicate with one another, leading to data silos and potential errors in reporting. An ERP system can help bring together all data from different sources and consolidate it in a single platform, creating a single source of truth or a unified view of the business. ERP solutions can also help automate processes using alerts and workflows that can help staff save time on repetitive and manual tasks.
Data Management and Accuracy
Building on the above point, scattered systems mean scattered data. Not only does ERP connect all systems, but it also ensures access to data in real-time across departments or even multiple locations providing a holistic view into all operational or financial processes at any given moment. This access to real-time time data ensures management can spot any bottlenecks before they become an issue as well as inspire quicker and more data-driven decision-making. Users can drill down and filter data easily making data management and analysis easier and more productive.
Reduce Technology Overhead
Having multiple systems managing different parts of your business operations can mean each solution has separate infrastructure and requirements with your IT team having to manage upgrades, licenses and maintenance separately. A single integrated system can help reduce your IT and infrastructure requirements. Further, if you opt for a cloud-based ERP solution, you can further reduce any IT burden with maintenance and upgrades becoming even easier to manage with automatic roll-outs as well as enhanced security.
Easier Multi-Location Management
Today many businesses in the hospitality space have multiple channels or various locations from which they serve customers. An ERP system can help ensure all operations and finances are aligned allowing management to monitor processes from one workspace across all locations with access to real-time information from each location at any time. ERP systems, particularly cloud-based systems help these businesses future-proof and prepare for future growth with the ability to scale in line with business needs and growth.
Improved Customer Service
As noted earlier, the hospitality industry strives to deliver a great experience to each customer with the highest levels of customer service from check-in to check-out and everything in between. An ERP solution can help support this in a number of ways. The smooth running of business operations in general should help ensure a good experience for the customer reducing the likelihood of any mix-ups with bookings etc. Further ERP can make guest history easily available meaning a personalised experience or personalised offers can be made to the guest based on their history helping increase customer loyalty and profit.
If you would like to learn more about how ERP software can support your business in the hospitality space, get in touch to speak to one of our experts.