The real cost of a PMS is training, and nobody prices it
The monthly subscription is the number on the quote. The number that matters is what it costs to make a new hire useful, paid again every season. How to calculate it and what to ask a vendor.
8 min read
Every property management system is sold on a monthly price. Per room, per unit, per booking, per user. That number is on the quote, it is easy to compare across vendors, and for most small properties it is not the biggest number in the decision.
The biggest number is what it costs you to make people able to use it. Nobody puts that on a quote, because no vendor knows your staffing and every vendor would rather you did not do the arithmetic.
So do the arithmetic.
The four costs, none of which are on the invoice
Setup and migration. The hours you personally spend configuring the thing, getting your rates in, and reconciling what came across from the old system against what should have. This is a one-time cost, it is real, and it is the only one of the four that vendors discuss.
The ramp of every new hire. How many hours before somebody you hired last week can take a walk-in, check them in, and settle a folio without asking anybody. Multiply by your wage, multiply by the number of people you hire, and then multiply by how many times a year you do this.
Manager hours spent unblocking. The interruptions. Every question a staff member cannot answer from the screen in front of them is a question aimed at whoever knows the system best, which is usually the owner, usually during the busiest hour of the day. This cost is invisible because it is never recorded anywhere, and it is often the largest of the four.
The error cost. A charge posted to the wrong folio, a rate applied that should not have been, a tax setting nobody understood, a room given away that was already occupied. Some of these cost money directly. The expensive ones cost a guest.
Why seasonal properties pay this four or five times over
A year-round hotel with stable staff pays the training cost once and amortises it over years. That is the situation most property management software was designed for, and it explains why so much of it assumes a training period.
A campground, a seasonal inn or a glamping site does not have that shape. It hires its team the week it opens, loses most of them when it closes, and does the whole thing again the next spring. The training cost is not amortised over five years. It is paid, in full, every single year, forever, and it is paid during the two weeks of the year when the owner has the least time to give to it.
If that is your business, the ramp of a new hire is not a minor line in the evaluation. It is the evaluation.
The arithmetic, on your own numbers
There is no industry figure worth quoting here, and any vendor who gives you one is guessing about your property. Run it yourself, on whatever you are using today.
- How many people do you bring on in a typical season?
- How many hours does each one need before they can work a shift alone? Count honestly, and count the shift where they could technically do it but were still checking with somebody.
- What do you pay them per hour?
- How many hours do you or your manager spend answering questions in that period?
- How many times last season did something have to be fixed in the books because somebody did the wrong thing in the software?
Multiply it out. Then do the same calculation for the monthly subscription price. For most small seasonal properties the first number is a multiple of the second, and it is the one nobody negotiated.
What to actually ask a vendor
Feature lists do not answer this. These questions do.
- How long before a new hire can check a guest in without help? Watch whether the answer is a number of hours or a description of a training program. Those are different products.
- What happens when somebody hits a field they do not understand? Ask them to show you a specific one, like remittance basis or deposit percentage or cleaning time. Is the explanation on the screen, or in a document somebody has to go find?
- Is there a training manual? This is not a trick question, and the existence of one is not automatically bad. But ask what it means: a system that requires a manual has decided that the burden of knowing what to do next sits with your staff rather than with the software.
- What stops a new person from doing the wrong thing? Ask specifically about checking into an occupied room, checking into a room that has not been cleaned, and taking a payment twice. Whether the system blocks it, warns about it or cheerfully allows it tells you how much of your supervision it expects to replace and how much it expects from you.
- What does a mistake cost to fix? In a system where a posted transaction can be edited, a mistake is fixed by making it disappear, and your books can no longer tell you what they said last week. In a system that corrects by reversal, fixing costs one extra step and your books stay defensible.
The one thing to do in the demo
Ask them to hand the keyboard to somebody who has never seen the software.
Not you, and not the salesperson. Bring the person who would actually be behind your desk in July, or any capable adult who has not been in the meeting. Give them one task: a guest is standing here, they are on the list, check them in and take payment.
Then stop talking and watch. Where do they hesitate? What do they read? What do they ask? Do they find the next action, or do they go looking for it?
Ten minutes of that is worth more than an hour of feature demonstration, because it measures the only thing that will actually recur every season of every year you own the software.
The design question underneath all of this
There are two ways to build software for an operation like yours.
One presents a complete map of everything the system can do and expects the user to learn where things are. Training is how the user acquires that map. The interface is honest about being large, and the burden of knowing what to do next sits with the person.
The other derives what needs doing from the current state of the property and presents that instead. The screen changes as the day changes. There is less to learn because there is less on offer at any given moment, and the burden of knowing what comes next sits with the software.
The second approach costs more to build and it constrains what you can put on a screen. It is also the only one where the training cost is not a permanent annual line item in a seasonal business.
In Cardinal, the Control Deck generates the day's work from live state and walks staff through it one guest at a time, so the first shift is a working shift. Fields a first-timer would not know carry plain-language guidance where they appear, the system surfaces its own capabilities as staff meet them rather than in a manual, and the guards on occupied rooms, uncleaned rooms and duplicate payments are in the software rather than in your supervision. We would rather you tested that by handing somebody the keyboard than by reading this paragraph.
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We publish a guide or a tool every few weeks about Canadian small-property operations, tax and the desk. Nothing else, and no sequence.
Keep reading
- 12 questions to ask any PMS vendor before you signThe questions that do not have a rehearsed answer, in the order that matters, plus the one instruction that tells you more than the rest of the demo: hand the keyboard to somebody who has never seen the software.
- How the Quebec lodging tax works, including the agency ruleThe 3.5% you charge, the flat $3.50 per room-night an agency remits, and why who collects the money decides who files it.
A tool for this
The hours behind the subscription
The invoice is the part you negotiate once. This counts the part you pay every season: the training ramp, the interruptions, and the evenings spent fixing the books.
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