PMS vs channel manager: what are the differences?

Key takeaways

• A PMS manages your hotel’s day-to-day operations like reservations, check-in, payments and housekeeping.
• A channel manager updates your rates and availability across all online booking channels in real time.
• They serve different purposes: PMS = internal operations, channel manager = external distribution.
• The best setup is a PMS, like Mews, that integrates with a channel manager so everything works together seamlessly.

As a hotelier, your property management system (PMS), channel manager and customer relationship manager are likely three essential tools in your toolkit. But what exactly do a PMS and a channel manager do and how do you choose the right one for your needs?

In this guide, we'll break down the key differences between a PMS and a channel manager, explain how to decide which is best for your hotel and explore the functionalities of each. By the end, you'll have the insights you need to build a toolkit that streamlines operations, enhances profitability and elevates the guest experience.

What is a PMS?

A PMS or hotel property management system is a hospitality software used by hotels to manage operations, including (but not limited to) reservations, rate management, housekeeping and daily front desk tasks like check-in and check-out. It helps enhance operational efficiency, boost guest satisfaction and help generate revenue.

How does a PMS work?

A PMS works as the central operating system for your hotel, connecting all your core functions in one place. It streamlines daily operations by managing reservations, room assignments, rates and guest services while also automating tasks like check-in, upselling, digital key delivery and payment processing.

Behind the scenes, it syncs data across departments - front desk, housekeeping, revenue management and operations, so teams stay aligned and workflows run smoothly.

Characteristics of a property management system

So, why do hoteliers need to carefully choose this software? Thanks to the following core functionalities, PMSs have become indispensable tools for modern hoteliers.

Reservation management

A PMS can be used to manage bookings from different sources, whether they be direct bookings or from other third parties. You can use it to handle group bookings and room assignments based on availability and guest preferences.

You can also use PMS software to help with check-in and check-out, offering digital keyless entry and helping you to track guest history and preferences to improve guest satisfaction throughout their stay.

Revenue management

You can use your PMS to carry out revenue management and automate rate management based on historical data and customer preferences. Use your PMS to grow segments based on automation that adjusts pricing by attributes. This way you can implement dynamic product pricings, space-type pricing, prices per day, prices by age segment and more.

Housekeeping management

Your PMS can also assist you with better managing housekeeping operations. Through internal communication on the platform, the front desk can alert housekeepers when guests have checked out and thereby track room status, helping to better align and monitor tasks for housekeeping staff.

Payment processing

Your PMS can also help you better manage payments through specialized terminals that allow you to collect payments at different points of sale, whether that be online through direct bookings, at your hotel restaurant, bar or pool, or at a self-check-in kiosk. The smoother the payment process is, the easier it will be to drive revenue across the whole guest journey.

Manage the guest experience

The guest experience can be enhanced with your PMS offering digitally forward services like a virtual concierge, online check-in, or even a check-in kiosk that allows guests to check themselves in and cut their own keys. Alternatively, digital keys can be made available that allow guests a full contactless experience from online booking through to entering their rooms.

You can also use your PMS to promote direct bookings with a booking engine that features options for customization, as well as extra add-on options, that will help deliver exactly what guests want.

What is a channel manager?

A channel manager is software hotels use to connect their booking system with online travel agencies (OTAs) and other distribution channels, allowing them to manage their inventory, availability and rates in real time. It helps to streamline distribution and maximize revenue-generating opportunities.

How does a channel manager work?

A channel manager connects your hotel’s inventory to all your online sales channels at once, automatically updating rates and availability in real time. When a booking is made on any platform, the system instantly syncs the information across every channel, reducing overbookings and saving your team countless manual updates.

What key features should a channel manager have?

It's important that a channel manager is able to handle all of your OTA listings, whether that be with Expedia, Booking.com or Hotels.com. This way, you don't have to manage availability across your own direct booking sites and OTAs, running the risk of double bookings. Channel managers update inventory in real time, allowing for smooth distribution.

A channel manager should have integration capabilities, multi-channel connectivity, the possibility for automation, real-time synchronization for inventory and rate management, the ability for analytics and reporting and the capabilities of promoting special deals.

Inventory and rate management

You should be able to update room availability and rates across all connected channels at the time of booking. This way, you can avoid overbooking by ensuring inventory is up to date across channels. You should also be able to adjust rates to enable dynamic pricing, length-of-stay discounts, or any other special offers.

Possibility for integration

Your channel manager should be able to integrate and sync with your PMS, allowing you to centralize reservations and automate guest flows. It should also integrate with your hotel's direct booking to support upselling efforts and link up to your revenue management efforts.

Support multi-channel distribution

It should be able to support different channels, including OTAs, meta-search engines, Global Distribution Systems and your own direct booking channels. By supporting multiple channels, you can ensure easy distribution across them all.

Analytics and reporting

Use your channel manager to track booking trends, occupancy levels and revenue. This way, you can better forecast based on historical trends and market demand, while investing more in the top-performing channels.

PMS vs channel manager: what are the differences?

A PMS and channel manager both contribute to a hotel's success, but in different ways. While a channel manager functions as a marketing tool helping your hotel to distribute rates and availability across distribution channels, a PMS is a broader tool that can be used for operations, channel management and a wide range of other functions outlined above.

How to choose between a channel manager and a PMS

It's less about choosing between a PMS and channel manager and rather about choosing a PMS that incorporates a channel manager as part of its functionality. Some PMSs (like Mews) offer the ability to connect to a channel manager through an API, allowing you to link your software of choice to manage the different elements of your business.

Why do you need Mews PMS?

Mews PMS lets you connect your channel manager via API to automate processes, centralize operations and make smarter, data-driven decisions through powerful reporting. It helps you manage rates and reservations across hotel rooms, parking, co-working spaces and more, all in one system.

With an integrated POS and mobile, all-in-one payment terminals, Mews also simplifies and elevates the F&B experience. The result is faster operations, smoother workflows and increased profitability.

Ready to transform your hotel operations? Get a demo today.

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