Like many parts of the guest journey, the sales transaction has been digitized to enhance convenience for customers. The point-of-sale (POS) system not only enables seamless payments, but also streamlines operations in this area for hoteliers, who can consolidate the management of sales across multiple outlets and even properties, while integrating that function with their PMS and facilitating sales analytics. Alex Thalassinos, president of Silverware POS Inc., recently discussed these advantages with LODGING and overviewed the evolution and future of POS systems. Thalassinos also provided guidance on features hoteliers should look for when choosing a POS system for their property or portfolio.
LODGING: At what point in the recent history of the hotel industry did POS systems rise in popularity, and what motivated their adoption?
Alex Thalassinos: POS systems began to gain significant traction in the hotel industry in the late 1990s and early 2000s. This shift was driven by the need to modernize operations and address the growing complexity of hotel services. As hotels expanded their offerings beyond traditional guestrooms to include multiple revenue streams—restaurants, spas, retail outlets, and event services—they required more sophisticated tools to manage these interconnected operations.
The adoption of POS systems was also motivated by changing guest expectations. The rise of online bookings and the digital revolution transformed how guests interacted with hotels. They demanded faster service, seamless payment options, and personalized experiences. Hoteliers recognized that legacy systems and manual processes could no longer keep pace with these expectations, prompting the shift to technology that could centralize operations, increase efficiency, and enhance guest satisfaction.
Are POS systems typically for larger hotels with many sources of income in addition to guestrooms, or can they be useful for limited-service properties as well?
While POS systems are indispensable for larger hotels with complex revenue streams, they are equally beneficial for limited-service properties. For limited-service hotels, the focus may not be on managing multiple outlets but rather a single F&B outlet, in-room dining, and even increasing efficiency for a grab-and-go marketplace. Having a point of sale that is integrated with property management system (PMS) for a cohesive, end-to-end guest experience is table stakes.
These tools also enable better reporting and inventory management, which is vital for smaller properties operating with leaner resources. The adaptability of modern POS systems makes them valuable across the spectrum, from boutique hotels to multi-location resorts.
These systems have become more user-friendly, portable, and affordable, but have they evolved in other ways as well?
Yes, POS systems have evolved significantly beyond usability and affordability. Key advancements include:
- Cloud integration: Cloud-based systems offer real-time data access, enhanced security, and remote management capabilities, enabling hoteliers to monitor operations from anywhere.
- Advanced analytics: Today’s POS systems provide deep insights into sales trends, guest preferences, and operational efficiency through advanced reporting tools.
- Personalization capabilities: Integrated CRM tools allow hotels to personalize guest experiences by analyzing purchase history and preferences, enabling tailored offers and promotions.
- Omnichannel functionality: Modern POS systems seamlessly integrate with online booking platforms, mobile apps, and in-person services, creating a unified guest experience.
- Enhanced integrations: Deeper two-way integrations with PMS, inventory systems, and even staff scheduling software streamline operations and eliminate data silos.
There are many types of POS systems: legacy, cloud, mobile, kiosk, desktop, multichannel, etc. What are some important considerations for hotel operators in choosing the right type of system?
Choosing the right POS system depends on a hotel’s size, operational complexity, and strategic goals. Key considerations include:
- Scalability: Can the system grow with the property’s needs, such as adding new outlets or services?
- Integration capabilities: Ensure the POS integrates seamlessly with existing systems, especially PMS, inventory management, and payment gateways.
- Guest experience: Consider whether the system enables features like guest-facing/online ordering for in-room dining, contactless payments, self-service kiosks, and personalized promotions to enhance guest satisfaction.
- Mobility: For properties with outdoor dining, poolside services, or room service, a mobile POS system may be critical.
- Support and reliability: Operators should prioritize systems with robust customer support, regular updates, and a reputation for uptime.
- Cost vs. ROI: While budget is a factor, the long-term return on investment through increased efficiency, added revenue streams, and guest retention should guide the decision.
Which features would you consider essential to a POS system, and which would be nonessential but desirable?
The essential features of a POS system include:
- Ease of use: Intuitive interfaces reduce training time and improve staff productivity.
- Integration with PMS: A direct and deep integration ensures seamless operations.
- Mobile and contactless payments: Critical for modern guest expectations.
- Highly configurable management: Important for the system to match the unique business requirements.
- Real-time reporting: Offers actionable insights to improve decision-making.
Nonessential but desirable features include:
- Upselling tools: Data-driven recommendations to boost revenue.
- Loyalty program integration: Enhances guest retention.
- Offline mode: Ensures uninterrupted operations when there are connectivity issues.
Your company debuted Silverware Pay last summer at HITEC. Would its consolidated payment processing be the differentiator in the marketplace?
Absolutely. Silverware Pay stands out for its effortless integration with the Silverware POS ecosystem. By embedding payment processing, Silverware Pay eliminates the need for third-party gateways, reducing costs, simplifying reconciliation, creating support efficiencies, and improving data security. It also supports multiple payment methods, including mobile wallets and international cards, catering to diverse guest preferences.
The real differentiator, however, is how Silverware Pay ties into a unified data platform. This integration allows hoteliers to gain insights into spending patterns across all outlets, enabling data-driven decisions to optimize revenue and enhance guest experiences.
Can you give an example of Silverware Pay’s scalability?
Silverware Pay’s scalability is exemplified by its ability to handle multi-location operations. A hotel chain with multiple properties can use Silverware Pay to centralize payment processing, maintain consistent reporting standards, and enable cross-property analysis and benchmarking.
For instance, a large resort might have multiple dining venues—such as a fine-dining restaurant, a casual café, and a poolside bar. Silverware Pay allows all these outlets to operate under a unified payment processing system. Guests can conveniently settle their bills across different venues, and operators benefit from streamlined reporting and a consolidated view of revenue across all dining operations.
With today’s systems offering a multitude of features such as inventory management, loyalty tools, reporting, and upselling, do you feel there is still room for enhancement?
Absolutely, there is always room for enhancement and innovation. The future of POS systems lies in leveraging emerging technologies to deliver even more value. Possible advancements include:
- AI-powered personalization: POS systems could use AI to predict guest preferences and tailor experiences in real time.
- Voice and gesture recognition: These technologies could make systems more accessible and efficient, especially in high-traffic areas.
- Sustainability integration: Features that measure and optimize resource usage, such as energy consumption or food waste, could be integrated.
- Hyper-integration: POS systems could connect with marketing automation tools, social media platforms, and IoT devices for a truly interconnected operational ecosystem.
The POS system of the future does not just manage transactions; it acts as a strategic tool and control center that drives revenue, enhances guest experiences, and helps businesses achieve long-term growth goals.
