Major Brands Move Away from Internally Developed PMS

Energy

As they develop a global presence, many of the major hospitality companies are looking to streamline their property efficiencies across all brands and continents. The Wyndham Hotel Group recently did just that by partnering with the Sabre Corporate to roll out a uniform property management system (PMS) for the company’s hotels all over the world. This partnership had 4,500 Wyndham properties migrate to Sabre’s SynXis Enterprise platform in mid-2015.

Sabre’s global strategy gives hotel owners the opportunity to optimize rates, occupancy, and revenue per available room to grow market share. It also can improve security with credit card capabilities specifically designed to reinforce chip and pin technology. According to Keith Pierce, EVP of global systems operations support, this move was part of a much bigger initiative to keep Wyndham’s internal processes focused on managing hotels, rather than developing its own software. “We had many, many different PMS in play in Wyndham properties, including one of our own design called ‘Wynguest.’ We made the decision to pivot away from in-house programming as whole,” says Pierce, on switching to Sabre. “It’s a strategic decision that keeps us focused on being hoteliers, rather than programmers.”

Other brands have also made the move to third-party managed software, something that Pierce says will become more common as the years go on. “When you’re a global company, and you’re managing currency, PM connectivity, and OTA partner activity all around the globe, you get to the point where if there are third-party providers and that’s their core competency, you can do it at commercial terms that are more favorable than doing it in-house. My guess is that other companies will be making that strategic shift as well.”

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