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If you own or manage a hospitality business, you understand how crucial it is to optimise your operations and manage your resources effectively. One way to achieve this is by implementing an Enterprise Resource Planning (ERP) software that automates your business processes, consolidates data, and provides real-time insights. However, selecting the right ERP software for your hospitality business can be overwhelming, given the numerous options available in the market. In this article, we will guide you on how to choose the best ERP software for your hospitality business.

Identify Your Business Needs

The first step in selecting ERP software for a hospitality business is to identify your business needs. Define your business goals and objectives and list down the core functions and operations that you want to automate. Analyse the current pain points and inefficiencies in your current system. This will help you narrow down the list of ERP software options that align with your business needs.

For example, if you own a hotel, you may need an Hotel ERP solution that integrates with guest reservations and check-in systems and can manage housekeeping tasks, inventory, and billing. On the other hand, if you run a restaurant, you may require an ERP software that manages food ordering, inventory management, and staff scheduling and can also be integrated to table reservations management systems. By understanding your business needs, you can narrow down your options and ensure you choose an ERP software that meets your requirements.

Create a Shortlist of Hospitality ERP Vendors

Once you have identified your business needs, the next step is to create a shortlist of ERP vendors that offer solutions specific to the hospitality industry. Many ERP vendors such as Oracle, Microsoft, and SAP and NetSuite offer software packages aligned to the needs of the hospitality industry. These solutions have been configured to provide out-of-the-box functionality for hospitality companies to get up and running as quickly as possible.

As an example, NetSuite for Hospitality offers a comprehensive suite of modules including CRM and Contact management, Accounting and Finance, Inventory Management, Procurement and Supply Chain as well as advanced functionality like Hospitality Reporting to make it simple to manage multiple companies, entities or venue locations.

Research Vendor Solutions

Once you have a shortlist of potential vendors for your hospitality ERP, it’s time to dive deeper into their solutions to compare their capabilities and features. Creating a central document to track your research can be helpful to keep everything organised.

When evaluating each vendor’s solution, look for key features such as ease-of-use, user interface design, integration capabilities with third-party applications, scalability options, and mobile accessibility. These factors can impact how easy the system is to use and how well it integrates with other systems you use.

It’s also important to analyse the pricing plans and customer support offered by each vendor. This can help you determine which ERP software best meets your business needs and fits within your budget. Keep in mind that the total cost of ownership includes not only the software itself but also implementation, training, and ongoing support.

Assess Integration Capabilities

It’s important to ensure that the ERP solution you choose can seamlessly integrate with other systems and software you use, such as point-of-sale (POS) or booking management systems. Take the time to evaluate how easily these systems are integrated and what costs are involved, as this is something that is not always openly disclosed by vendors.

Understanding the type of integration technology that is available also helps you to get an idea about the level of complexity that will be involved in any integration you choose to create.

Consider Customisation Options

One crucial aspect to consider when selecting an ERP solution for your hospitality business is its level of customisation. It is imperative to assess the level of customisation offered by the vendor and the associated costs to determine if the ERP solution can be tailored to meet your unique business needs.

With customisation options, you can ensure that your ERP software caters to your specific business processes without having to change your processes to fit the software. This flexibility can give you a distinct competitive advantage and significantly improve your overall business performance. In addition, customisation options allow you to add new features and functionalities that are not available in the standard ERP solution, giving you more control over how you manage your operations.

Hospitality ERPConsider Technical Support and Training

As you evaluate potential ERP vendors, it’s important to consider the level of technical support and training they offer. A smooth implementation and effective usage of the ERP solution requires comprehensive support and training from the vendor.

Ensure that the vendor provides adequate technical support to help you resolve any technical issues that may arise. Technical issues can cause delays and even bring your business operations to a halt, so it’s essential to choose an ERP vendor that offers quick and reliable support.

In addition to technical support, training is also critical to ensure that your staff can effectively use the ERP software. Look for an ERP vendor that offers comprehensive training to help your staff understand the features and functionalities of the software.

When choosing an ERP vendor, prioritise those that offer comprehensive technical support and training to ensure that your system runs smoothly and your staff can fully utilise the software’s features and functionalities.

Check References

Once you have narrowed down the list of ERP software solutions to one or two, ask each vendor for references from existing customers in the hospitality industry.

Contacting these references is a great way to assess the level of satisfaction with their chosen ERP solution and determine whether it has been beneficial to their business operations.

By taking the time to thoroughly vet your potential ERP solutions and vendors, you can ensure that you make an informed decision and choose an ERP system that best meets your needs and budget. This will help you maximise the return on your investment, while also improving overall efficiency in all areas of your hospitality business.

Finalise the Decision and Implementation

As you come to the end of your ERP software selection process, it’s crucial to make a final decision based on the thorough evaluation and assessment you’ve conducted. Once you’ve chosen your ERP vendor, it’s time to begin planning the implementation process and allocating the necessary resources to ensure success.

Monitoring the implementation process is equally important to identify any areas that require adjustment or additional support. To avoid resistance and ensure a smooth transition, it’s essential to ensure that your staff receives adequate training on how to use the software effectively.

A well-executed implementation process, combined with comprehensive training and ongoing support, can go a long way towards ensuring the long-term success of your ERP system. By staying committed to the process and remaining vigilant in monitoring your ERP system’s performance, you can help your hospitality business improve its efficiency, streamline its operations, and enhance its bottom line.

When evaluating each vendor's solution, look for key features such as ease-of-use, user interface design, integration capabilities with third-party applications, scalability options, and mobile accessibility.

Tiernan O'ConnorSales Director - DWR

ERP Vendor Evaluation Template

In this table, we’ve listed some common modules for a hospitality ERP, such as Property Management System, Point of Sale, Reservations and Bookings, and Front Desk Management. We’ve also included additional modules such as Banquet and Event Management, Spa and Wellness Management, and Room Service Management, which are specific to the hospitality industry.

The table also includes checkboxes for each ERP system to indicate which modules are offered by each vendor. The notes column provides additional information on which type of hospitality business each ERP system is best suited for.

ERP System System A System B System C
Vendor Vendor A Vendor B Vendor C
Price $100,000 $200,000 $500,000
Features Accounting, Inventory, Sales, Purchasing Accounting, Inventory, Sales, Purchasing, CRM, HR Accounting, Inventory, Sales, Purchasing, CRM, HR, Manufacturing
Integration Limited integration with third-party systems Strong integration with third-party systems Strong integration with third-party systems
User Interface User-friendly interface Complex user interface User-friendly interface
Support 24/7 support available Limited support available 24/7 support available
Notes Good fit for small businesses Good fit for mid-sized businesses Good fit for large businesses


ERP System System A System B System C
Vendor Vendor A Vendor B Vendor C
Price $150,000 $250,000 $500,000
Property Management System ✔️ ✔️ ✔️
Point of Sale ✔️ ✔️ ✔️
Reservations and Bookings ✔️ ✔️ ✔️
Front Desk Management ✔️ ✔️ ✔️
Housekeeping Management ✔️ ✔️ ✔️
Inventory Management ✔️ ✔️ ✔️
Menu and Recipe Management ✔️ ✔️
Banquet and Event Management ✔️ ✔️
Business Intelligence and Reporting  ✔️ ✔️ ✔️
Mobile App Integration ✔️ ✔️
Channel Management and Online Bookings ✔️ ✔️ ✔️
Loyalty Program Management ✔️ ✔️
Spa and Wellness Management ✔️
Room Service Management ✔️ ✔️ ✔️
Notes Good fit for small to mid-sized hotels and resorts Good fit for mid-sized to large hotels and resorts Good fit for large-scale hotel chains and resorts

The Wrap Up

Choosing the best ERP software for your hospitality business requires careful evaluation and assessment. It is crucial to identify your business needs, evaluate ERP solutions, assess integration capabilities, consider customisation options, and consider technical support and training. By following these steps, you can select an ERP software that streamlines your business processes, improves efficiency, and enhances your bottom line.

Tiernan OConnor

Tiernan O'Connor is an accomplished Sales Director and NetSuite expert at DWR Consulting, a top-tier NetSuite Solution Provider and Implementation Partner. With over 25 years of experience in Sales, Marketing, Cloud ERP and technology, Tiernan has become a trusted authority in the NetSuite Partner community, helping businesses of all sizes streamline their operations and achieve success. Tiernan's in-depth understanding of NetSuite's capabilities and his extensive experience in implementing cloud-based ERP solutions have positioned him as a thought leader in the industry. He is known for his ability to identify and execute tailored strategies that meet each client's unique needs, ensuring they unlock the full potential of NetSuite's powerful features. Connect with Tiernan on LinkedIn

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