Reservation Software
Published December 09th, 2016 by

What Is Reservation Software and How Does it Work?

What Is Reservation Software and How Does it Work?

Small hotels, travel agencies, car rentals and other reservation related business can now tandem with technology through reservation software which enables every reservation business to activate high return of investment. The reservation software is also called computer reservation system (CRS) that allows every hotel, travel agency, or any other organizations that require booking to process reservations through internet gateways.

The reservation software is originally created and designed for travel tour airlines to manage and process every transaction easier and faster. Thus, it becomes a necessity to all related reservation businesses because of the increasing demand for travel, hotel reservations and car rentals. According to Good Works Lab website, travel business is one of the highest contributors in the global market in terms of generated revenue. In 2015, it earned 6.3 trillion which only proved that travel tours are in high demand among people all over the world.

Many small hotel businesses are also diverging from the traditional process of completing reservation requests. They are now starting to use reservation software to increase their searchability on different search engines, present their product to the right people, and market their hotels and other services properly. Hence, the reduction of staffing costs also helps the operator to save while getting a high return of investment. CRM only shows that it is vital to every related reservation business especially to those who are aiming for business expansion.

Functions of Reservation Software

According to Stuart Cerullo, he mentioned the main function of computer reservation software (CRS) at Quora website. Reservation software manages two categories in your business; first is the definition, features and description of amenities, and second is the price, availability, rules and restrictions in selling.

The standard information of the hotel including the name of the hotel, address, number of occupancy or capacity, features and amenities of room, type of the room and its name.  The second one is the standard hotel industry rules which include the price of the room and number of nights, revenue rules of the organization, restrictions and controls set by the owner. These information are managed by the reservation software. Hence, these dynamic data that include the availability of the product like the rate plan and type of room, date of the arrival, duration of stay, breakfast included, side view like ocean or mountain, and free Wifi.

Another article written on, which states that, the best asset of any hotel is their online booking system. The hotel’s booking engine or portal is a big contributor to a success of every organization because the reservation software plays an important role in presenting the information to the right people. It involves marketing strategy to reach prospective clients who are looking for your products and services. Another good thing about this software is the facilitation of every payment transaction. The process of completing the order through online payment is less hassle on both parties. It saves time and it does not involve any human intervention but the system works on its process.

The computer reservation software (CRS) is usually included in the property management software (PMS) but they have both different functions. The CRS involves management of reservation information on both parties who are the customer and hotel details. There are also different channels used by every hotel to increase their popularity on a larger scale. One of those channels is online travel application like Airbnb. This role is somehow related to CRS but it is called channel manager system (CMS) which ensures your hotel details are included in every application. This system will maximize the sales of the hotel and it offers the best price based on organization objectives.

Moving forward, there are specific modules included in the reservation software that plays as a key role to complete the overall functions and definition of CRS. The reservation software has the following modules:

  1. Reservation module

Every business that is relative to reservation process wants to provide a comfortable experience for their customers. They want their customers to complete their reservation request without experiencing difficulties and problems. This module helps every organization to establish an online website or application that can be reached by the right audience. The automatic update of the room rates and availability is also falling under the task of reservation module.

  1. Profiles module

The information about the products and services that offer by the organization is the task of profiles module. It works on the availability of the product and service details which are all visible to travelers and travel agencies. This module plays a vital role when it comes to customers’ attraction.

  1. Groups and blocks

This module delivers a greater leverage on the visibility of the system. Usually, the hotel manager uses this systematic approach to create an improved base for every hotel. The visibility of every hotel profile on the internet increases awareness of your organization’s existence. Thus, it also extends your customers across the globe as it becomes readily available on the internet.

  1. Rates and control on inventory

In order to maintain your existence in the competition, you need to know what’s happening around the industry you are in. It is vital to know your competitors’ rates and promos to generate good prices on your room rates. When making comparison of the rates, promos, products and services from your competitors, it does not mean that you are stealing their ideas but it is a wise gesture to keep your business inside the loop of the industry.

  1. Global distribution system interface

This module helps you to be known across the globe because it enables your profile to be read by millions of people. Thus, it makes a greater leverage on the sales and revenue of your business. The global distribution system connects your organization to different online channels and it expands the number of your customers and travel agencies.

Benefits of Reservation Software to Your Business

There are hundreds of benefits that reservation software can bring to your business. But the most highlighted benefits you need to learn when using it are the following:

  1. Opens 24/7 – non-stop process of reservation requests across the globe is one of the greatest benefits of this software. This leads every car rental, hotel and travel agencies to unstoppable promotion of the business and continuous increase of revenue.
  1. Reduction of staffing-cost – with the help of reservation software, you no longer have to hire personnel to process every reservation request. A typical manual process of booking a flight, reserving hotel rooms, or renting a car is through phone calls and it involves a lot of paper works. But the good news is all the process of completing a reservation order will be done by this software.
  1. Reduce workloads – this software allows you to process every reservation request instantly with the help of this structured system. It minimizes your workloads but with the same or higher productivity rate. Thus, it lessens human error because the system can process same requests automatically and it generates confirmation after the reservation order is completed.
  1. Additional features for additional sales – another benefit of getting reservation software is the complete profile of every room, amenities, car or airplane seats are all managed by this software. You don’t have to worry missing important details to your customers because it will be suggested by the system. Some customers are looking for additional features like when reserving a room in the hotel; they want to add a welcome Same goes with car rental, some customers want to include GPS when renting a car.
  1. Payments are done via online – less hassle and no more falling in line in payment centers. It gives convenient to parties, customers and business owners when it comes to sending and receiving payments. Technology made every payment transaction faster and a lot easier through entering credit card, debit card or PayPal details to pay a certain order. Thus, it reduces workloads on part of the owner because you don’t have to worry processing every payment, but you will just wait to receive it.

There are a lot of things to consider when looking for suitable reservation software. Now that you’ve got an overview of what to expect when you use reservation software to your business, it is time to choose which will be the best software for your business. Moreover, if you are using existing reservation software, and you do not get those benefits out from the service you are paying, maybe it is time to consider other software companies. To educate you about the best reservation software reviews, go to and choose the suitable software for your business.

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