SUPPLY CHAIN MANAGEMENT
SCM DRIVERS
AND METRIC
PRESENTED BY: GROUP 4
Calingacion, Espela, Homeres,
Mabalot, Tangca, and Waggay
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MANAGEMENT SYSTEM
The Hotel Industry’s Response: Classic Pattern of Disruption
Denial Attack Participation
The stage where The stage where industry The stage where
traditional industry leaders actively oppose traditional businesses
players dismiss the the disruptor, often recognize the disruptor’s
disruptor’s impact, through legal, regulatory, success and adopt
believing it poses minimal or public relations similar strategies to
or no threat. tactics. compete.
MANAGEMENT SYSTEM
Hotel Management Contracts: Benefits and Challenges
WHAT ARE MANAGEMENT CONTRACTS?
It is an agreement between a hotel owner and an operator,
where the operator manages the hotel’s day-to-day operations
without owning it
KEY BENEFITS
Allows owners to invest in hotels without the need to operate
them (Horwath &Horwath, 1988)
Operators bring professional expertise and established brand
reputation.
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MANAGEMENT SYSTEM
Hotel Management Contracts: Benefits and Challenges
CHALLENGES
AGENCY PROBLEMS HORIZON PROBLEM PROJECT SELECTION ISSUE
Ownership and operation Operators prioritize Agents may favor low
are separated, leading to short-term cash flow, NPV projects with
conflicts (Beals, 1995; while owners focus on immediate returns over
Beals & Denton, 2005). long-term investment higher NPV projects with
(Guilding, Kennedy et al., long-term benefits
2001; Lynch, 2002). (Baber, Kang et al., 1998).
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MANAGEMENT SYSTEM
Hotel Management Contracts: Benefits and Challenges
CHALLENGES
BRAND VALUE MAXIMIZATION INTANGIBLE ASSETS
Operators prioritize enhancing Hotel companies rely
their brand and securing long- heavily on brand goodwill
term contracts (Beals & as a key asset (Dev,
Denton, 2005; Haast, Adler et Morgan et al., 1995).
al., 2006; Schiff, 2006).
TAKEAWAY While hotel management contracts provide ownership flexibility and
operational expertise, they also present agency issues & conflicting incentives
that can impact long-term profitability and strategic alignment.
OPERATIONS CHAIN HOTEL
What is a Chain Hotel?
It operates under the same brand name
May be owned by different owners but managed by the same
parent company
Hotel Standardization
Examples of Chain Hotel
Uniform Amenities
Hilton Hotels & Resorts
Marriot
How does Chain Hotel Operates? Shangri-La
Centralized Operation System (CRS) Sogo
Standard Operating Procedure (SOPs) Megaworld Hotel & Resorts
Centralized Purchasing System (CPS)
Brand Standards
Revenue Management
Human Resource Management
Marketing and Sales (Global and Local)
Franchise Fees and Profit Sharing
PROPERTY MANAGEMENT SYSTEM
Why is PMS Software Different for Hotels, Vacation Rentals
and Apartments?
The Property Management System is the core of the tech
stack at any accommodation business.
The hospitality business can run more efficiently and
focus more on delighting its guests (or tenants) with the
right software partnership.
01 Hotels 02 Vacation Rentals 03 Apartments
Operational: Front desk management, Operational: Focus on managing Operational: Typically involve long-
housekeeping coordination, in-room individual properties or units, often term leases and require tenant
services, point-of-sale (PoS) systems, without onsite staff. Features like management tools such as lease
and event management. They often automated check-in/out, smart locks, tracking, maintenance requests, and
cater to high guest turnover and and synchronization with platforms rent collection rather than daily guest
multiple service integrations. like Airbnb is essential. services.
Booking: Use room-type inventory Booking: Manage entire units (houses Booking: Focus on lease agreements
(e.g., multiple identical rooms) with or apartments) with fewer bookings rather than short-term reservations.
centralized booking for high-volume but higher customization for each User accounts: Prioritize landlord-
reservations property. tenant communication tools.
User accounts: Need multi-user User accounts: Usually managed by a Integration: Use property
access for staff like receptionists, single owner or small team management tools for tenant
housekeepers, and managers Integration: Rely on channel screening and payment processing.
Integration: Hotels integrate with managers to sync listings across
systems like revenue management, platforms
PoS, and upselling tools.
Reference
15 features of Hotel Property Management System (Hotel PMS). (2024, April 17). Adamo Software.
[Link]
Elphick, D. (2024, October 30). Full guide to hotel property management systems. SiteMinder.
[Link]
Hopkins, J. (2024, August 19). Vacation rental software vs. hotel software - key differences. Hostfully.
[Link]
Tech Target Contributor. (2018, October). Property Management System (PMS). WhatIs.
[Link]
What is a vacation rental property management system? (n.d.). [Link].
[Link]