Let's say you go from running one hotel to a chain of ten properties - suddenly the complexity of keeping track of all reservations and rooms increases dramatically. Managing bookings and rates across multiple hotels places completely different demands on technology. As a result, the hospitality industry has a range of systems to help manage the business - from booking engines and property management systems (PMS) to point-of-sale systems and customer management. One of the most important tools for larger hotel groups is a CRS (Central Reservation System), or in Swedish sometimes called centralised booking system. In this article, we look at what a CRS is, how it works, and why hotel chains have a lot to gain from implementing such a system.
What is a CRS?
Central Reservation System (CRS) is a centralised reservation system used to manage and store all bookings and price information for a hotel business in real time. Unlike an individual PMS (Property Management System), which primarily manages the day-to-day operations of an individual hotel, a CRS acts as the hub for the entire chain. It gathers information from each connected channel - for example, the hotel's own booking engine (WBE), OTA (Online Travel Agencies) channels such as Booking.com or Expedia, GDS (Global Distribution Systems) and direct bookings via reception or telephone.
By acting as a common system for all these booking channels, a CRS for hotels ensure that all information on room availability, rates and bookings is synchronised across the chain's different hotels and sales channels. Moreover, modern CRS solutions are often cloud-based, enabling lightning-fast information sharing and availability for staff in different locations. If a room is booked at one of the hotels, the central system is updated instantly, so the same availability and price information is sent out to all channels. This avoids double bookings and outdated price information, while ensuring that guests always receive the correct information regardless of where they book.
A CRS can be seen as the heart of a hotel chain's booking infrastructure. It often interacts closely with other systems, such as the chain's PMS at each hotel, channel managers, and customer relationship management (CRM) systems. This results in a holistic solution where all reservations and inventories are managed centrally. This is particularly valuable for hotel chains that need to control many rooms in several different establishments at the same time.
CRS compared to PMS and channel manager
It may be worth clarifying the difference between a CRS and other related systems. A PMS system, as mentioned, manages the individual hotel's internal processes - such as check-in and check-out, room cleaning and guest billing - but is not usually designed to share booking information between several independent hotels. A channel manager on the other hand, is a tool that synchronises rates and room availability between the hotel's PMS and different booking channels (OTAs, GDSs, etc.). A channel manager ensures that updates in the PMS are disseminated to booking sites, but it usually does not store its own booking history or guest data.
One CRS often includes the functionality of a channel manager but goes one step further. The CRS becomes a common database and booking engine for the whole chain, with its own interfaces for centralised booking and reporting. Where the channel manager is primarily a distribution tool, the CRS acts as the chain's common reservation system where bookings can be received and managed centrally. In this way, a CRS complements the local PMS systems of each hotel and can integrate a channel manager, but it also adds an extra layer of centralised control, analysis and guest management across the hotel chain.
How does a centralised booking system work?
A CRS works by connecting the different hotels in the chain with all relevant booking channels in a single platform. In practical terms, this means that every time a booking is made or changed, whether online via the hotel's website, via a travel consultant at a GDS or through a third party such as an OTA, it is recorded in the central system. The CRS then automatically updates the hotel's own system (e.g. the PMS) with the new data. At the same time, availability and prices are updated throughout the system.
This real-time communication is crucial. For example, if a guest books the last available room at Hotel A in the chain through an OTA, the CRS will immediately mark the room as occupied on all sales channels, including the hotel chain's own website and internal systems. Similarly, if the hotel staff at Hotel A makes a new reservation or changes a price in the PMS, the CRS will forward that information to the central system so that all other hotels and channels see the update. Everything happens in the background in seconds. A major advantage of using the CRS as a hub is that the chain does not have to deal with a myriad of different integrations between each hotel and each booking channel - all traffic goes through the central system, simplifying maintenance and increasing reliability.
In addition to managing rooms and prices, modern central reservation systems can also manage guest information (profiles, loyalty programmes), packages and offers that apply across the chain, and provide central reports and analysis. For example, a guest who previously stayed at Hotel B in the chain can be recognised by the system when booking Hotel C, so that preferences and customer history are available instantly for the new booking. This is because all the hotels' data is collected together in the CRS instead of being isolated in each individual database.
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Why do hotel chains need a CRS?
For larger hotel groups and chains, a CRS is virtually indispensable for running their business efficiently. Without a centralised system, each hotel has to manage its reservations and booking channels separately - which can easily lead to duplication of effort, incorrect bookings and a fragmented overview. With a CRS, these problems are avoided. Here are some of the main benefits and reasons why hotel chains invest in a centralised reservation system:
- Centralised control over bookings: With a CRS, the chain gets a common overview of all bookings in all hotels. All the information is in one place, making it easy for central reservation staff or customer service to manage reservations for all hotels in the chain. This allows staff in a central reservations department to easily make or change reservations for all hotels via a common interface, instead of managing each hotel separately. It will also be possible to offer cross-chain bookings - for example, a guest can search and book rooms at any property in the hotel group via the chain's website.
- Real-time updated inventory and pricing: A centralised system ensures that room availability (inventory) and prices are updated in real time across all sales channels. This minimises the risk of overbooking and incorrect pricing. The hotel chain can quickly adjust prices centrally (for example, during promotions or high season) and know that the changes are reflected everywhere immediately. In addition, a CRS facilitates connection to global distribution systems (GDS) and other third-party channels, increasing the reach of the chain's room sales.
- Increased efficiency and fewer mistakes: By integrating everything into one system, the need for duplication and manual labour is reduced. Staff don't have to go into separate systems for each hotel or for each booking channel. Instead, they can work in a common environment. This saves time and reduces human error, as data does not need to be entered multiple times. Administrative tasks that would otherwise take hours can be automated or completed much faster using the CRS.
- Improving the guest experience: A CRS makes it easier to recognise and reward regular guests across the chain. It provides a more personalised experience - a returning guest can be recognised and receive special treatment regardless of which hotel within the chain they visit. Because guests' booking history and preferences can be centralised, the hotel chain can offer a more personalised service. For example, a loyalty programme can be linked to the CRS so that guests collect nights regardless of which hotel in the chain they stay at. Guests also get a smoother booking experience - they can always trust that the information they see online is correct, and they can easily book more than one hotel in the same process if the chain enables it.
- Better decision-making and revenue management: With all booking data centralised, management gets a complete picture of how the chain is performing. It is easier to analyse occupancy, revenue and booking trends for the entire chain or for individual hotels. These insights are invaluable when it comes to revenue management - for example, adjusting prices based on demand, or identifying which markets or channels are generating the most bookings. A CRS also facilitates reporting and forecasting, helping the hotel chain to make more informed strategic decisions. Similarly, the shared data base enables sales and marketing teams to work centrally from the same figures when planning campaigns and strategies for the entire chain.
In summary, a CRS for hotel chains as the central hub that ties all the pieces of the booking puzzle together. For a chain with several hotels, it creates an invaluable structure of order and control. Even smaller hotel groups with just a few properties can benefit from a centralised booking system, especially as their business grows and the number of booking channels increases. Everyone involved - from reservations staff and revenue managers to front desk managers and guests - benefits from information being consolidated, accessible and consistent. In an age where fast information and a seamless experience are key to customer satisfaction, a well-implemented CRS can be the difference that saves a hotel chain time, increases revenue and raises its level of service.
