Operating by System - or Operating the System?

In today’s fast-evolving and highly competitive hospitality environment, a computerized hotel management system is no longer optional.

Hotel staff in front of a system: Image credit to WiX

It is a core operational foundation designed to ensure efficiency, accuracy, transparency, and measurable performance. These systems are built upon industry best practices, structured through interconnected process sequences intended to deliver optimal business results.

Yet, an important question must be asked:Are we genuinely running our operations according to the system — or are we manipulating, bending, and even hijacking the system for convenience or personal interests?

True operational effectiveness is only achieved when the system is implemented fully and consistently across every hotel department - from Front Office and Back Office to Finance, Operations, and Logistics. When every transaction is recorded within the system, financial postings are generated automatically without repetitive manual input, enabling reliable data and timely reporting. This requires strict adherence to process flow — with no bypassing or shortcuts.

A System Built on Proven Best Practices

Hotel management systems are intentionally designed around sequential operational workflows: annual budgeting, rate and market planning, reservations, check-in, in-house transaction control, check-out, night audit, and final analysis. Each step exists to protect data integrity and ensure accountability.

In logistics management, the material lifecycle — from request and purchase to receiving, storage, and usage — must be followed precisely to securely manage costs and prevent losses. Deviation at any point breaks the chain of control.

Warning Signs That the System Is Being Bypassed

Although systems may be in place, the reality in many hotels is that they are not being used as intended. Instead of becoming strategic tools that drive performance, systems end up functioning only as administrative record-keepers. Key indicators of system bypass include:

1. System features remain unusedCritical modules such as Business Intelligence, forecasting, cost control, recipe engineering, inventory monitoring, loyalty programs, or night audit reporting are ignored.

2. Frequent rate overridesManual modification of room rates disrupts pricing strategy, weakens revenue accuracy, and compromises analytical reporting.

3. Shared passwords or unsecured accessOpen access removes accountability, eliminates audit trails, and increases the risk of internal fraud.

4. Hotel performance cannot be analyzed accuratelyWhen data is incomplete or delayed, forecasting and strategic decision-making are based on assumptions rather than facts.

   
   

Corrective Actions When Bypass Behaviour Is Identified

The moment such issues appear, immediate intervention is needed to reestablish discipline and restore operational integrity. Recommended corrective measures include:

1. Conducting a full system auditReview end-to-end process adherence, data quality, and utilization of available features.

2. Re-training staffMany system violations occur due to a lack of understanding rather than intentional misconduct. Training rebuilds capability and alignment.

3. Providing guidance from experienced hotel operatorsCoaching and mentoring help establish operational discipline and reinforce best practices sustainably.

   
   

Conclusion

Technology alone does not guarantee success — it is merely an enabling tool. The true value of a hotel management system lies in the hands of the people who operate it. Therefore, it is essential that system users and leadership teams possess a deep understanding of the best practices the system is designed to implement, and apply them consistently without shortcuts or bypasses.

When systems are executed properly:

• Data becomes accurate and real-time

• Decisions are supported by evidence, not opinion

• Costs are controlled and leakages are minimized

• Service quality and guest satisfaction rise

• Profitability improves substantially

A question every hotel executive must reflect on:

Are we truly operating by the system — or are we operating the system?

Author

Ojahan Oppusunggu

Director of Technical & Technology – Artotel Group