Is it possible that in a few years hotels will no longer purchase property management systems? Instead they may point their standard Web browser to the site of their selected supplier, enter an account and password, and proceed with doing a check-in, folio posting, night audit, et cetera paying only a small charge for each transaction completed. If they change brand affiliation, or find a better applications supplier, the hotel could simply logon to a new Web site to begin service. This scenario is not realistic today but could become practical as Network Computing continues it�s rapid evolution and many leading hotel companies and hotel technology vendors make plans to change the computing standards we now take for granted.

There are many types of technology in use today in hotels to provide property management functions. The majority are based on a local sever, a local area network (LAN), and either �dumb� character terminals or PCs. A very low percentage of worldwide installations are using a true graphical user interface (GUI) and only a fraction of these graphical systems are using a �thin client� or Web browser-based network computing architecture. Thousands of hotel properties will want to upgrade their PMS, and other hotel based systems, in the next few years to take advantage of the improved operations and functions available with a GUI. Network computing may offer them the opportunity to radically change the cost structure and operational requirement for hotel property automation.
 
The Potential of Network Computing

There are a few important concepts in network computing. First is that the user terminal does not need to run a particular operating system, application, or even require hard disk storage. All data, business logic and applications reside permanently on servers and only information required for display is sent to the user device. Small applications or, applets, can be downloaded from the server and run in the local memory of the terminal to improve functionality or performance. There are several types of network computers (NCs) or �thin clients� but the most common environment for a networked-based application is the Web browser. Web browsers run on many types of machines. They operate the same way regardless of which web application is running. Many workers are �pre-trained� on how to use a browser from use at home, and the bsiness application can be constantly updated and improved at the server, without ever having to upgrade or reconfigure the software on the client device. In a full NC configuration, printers and interface devices are also addressable by the host servers. While this architectural approach can be used within a single property, the real power of this concept is achieved when several hotels within a city, region, or country share application and database servers. Therefore for most hotels employing an NC option for PMS, these servers will be remote to the property resulting in a much simpler, cheaper, more reliable, yet more functional, systems environment. 

The payoff for the operator of multiple sites is that only a single copy of the application and database must be maintained at the central location. There is no need to either visit a hotel, or download software to thousands of PCs, to update an application. This means systems organizations can be more responsive to business needs while maintaining a lower operating cost. If hotel chain operators or franchisers offered hotel applications based on web browsers, it could result in the ability to open a new property, or implement new functions, much faster and with less cost. This would make the brand more attractive, and raises the switching costs to move to another flag. On the other hand, if network computing becomes the industry norm, it could make it easier for hotels to change flags. They could change their PMS application by simply logging on to a different server (think web page) and not need to add or replace any equipment or software.
 
A New PMS Model? 

If a hotel chain can operate many properties from one shared services center, why can�t a PMS vendor do this as well? The normal model for any hotel property with access to an external reservation source is to be connected over a wide-area network (WAN) to a remote application and database. This remote service is rarely owned by the property but instead they a pay a transaction fee for this service.  The high number of transactions taking place within a PMS, and the high cost of telecommunication in the past, has kept the concept of the shared PMS from being widely used. Some vendors such as CLS and GEAC have offered this shared database design for many years but up to now, only offer this product for purchase by the hotel chain and only for character-based terminals. The new economics of intranets, and the Internet, will make the concept of centrally - based computing feasible for technology vendors to offer transaction-based  services to both branded and independent hotels. Think of some of the issues that would disappear if both the central reservation system and PMS were located at the same data center. Interface issues should not just be reduced, they should be eliminated because the CRS application and the PMS application could in fact be the same, sharing both business logic code and a single database. If a hotel were to purchase it�s Information Processing requirements on a transaction basis such as per check-in, folio printed, occupied room, or guest check processed, it can save its capital for other investment needs and tie Information System operating expenses to actual use of the technology.

What does a hotel chain or technology vendor need to have to implement this network computing model? First, there must be a very robust application accessing a high capacity database. Although operating two-to-three hotels on one system has been done successfully by many chains, the shared system must support 50 to 500 properties to provide a profitable operaton for a vendor. There must be complete security and isolation of data between the properties yet the ability to provide consolidated reports for chain requirements.  There has to be a physical data center staffed 24 hours a day with both technical and application support. It is important that the NC provider plan to offer as many of the current property-based applications as possible. 

Many of the benefits for a hotel will not be realized if they eliminate the issues with PMS yet still must maintain existing client-server application on property for sales and catering, food & beverage, accounting, et cetra. Of course, there also must be a reliable network as this is such a critical component. Except for the smallest of properties, this would currently require the use of a private intranet. But as the Internet expands and improves, it will offer many more cost-effective communication options.