Computer Reservation System: What is CRS and its function?

What is a computer reservation system?

A computer reservation system (CRS), also called a hotel central reservation system, is a piece of software designed to help hotels and other travel and hospitality businesses track and manage their bookings.

What is the function of a computer reservation system?

Computer reservation system software allows small, independent hotels to easily manage reservations across all booking channels, from OTAs to direct bookings, through a single, simple dashboard, usually displayed in the form of a calendar.

When you choose wisely, a modern central reservation system for hotels will be easy to implement and use. A computer reservation system in tourism works in much the same way, helping travel agencies organise tours and trips with ease.

In this guide, we’ll walk you through what a CRS is, the benefits of using one, evaluate whether you should use one – and which one you should choose for your small hotel.

What is the difference between CRS and GDS

While both a CRS and a GDS help distribute your hotel’s availability and rates, they serve distinct purposes in the hospitality industry. Understanding the differences can help you maximise bookings across the right channels.

What is the difference between CRS and a GDS? While a CRS is an umbrella term for software designed to handle reservations, a GDS is a global computer network that enables transactions between travel industry service providers like airlines, hotels, travel agencies and car rental.

Here’s what we mean:

A CRS acts as your hotel’s central hub for managing reservations. 

It stores and updates your room inventory, rates, and availability in real time, and distributes this information to various sales channels, including OTAs (online travel agents), metasearch platforms, and your own website. A CRS also integrates with your property management system (PMS), making it easier to handle reservations, cancellations, and updates seamlessly across channels.

A GDS connects your hotel to corporate and leisure travel agents worldwide. 

This allows them to view and book your rooms alongside flights, car rentals, and other travel services.
Basically, the CRS ensures your hotel is bookable across a variety of direct and online channels, while the GDS specifically targets travel agents who are bundling accommodations with other travel services. Both systems play vital roles, but they cater to different audiences, so understanding their functions will help you choose the right tools to optimise your distribution strategy.

Why do you need a computer reservation system?

It’s crucial for tracking and managing bookings. But there’s a lot more to that task than this simple answer suggests.

They can automatically log new hotel bookings as they come in, filling out your calendar without you having to lift a finger. The best CRS/computer reservation systems can then adjust availability across all your booking channels, including online travel agencies (OTAs) like Booking.com and Expedia, to ensure you are never put in the awkward position of accepting a double booking.

A CRS puts all relevant booking information together in one place. You can see guest info, room selection, dates, rates, payments and preferences in a click.  

Your CRS can help you avoid the 15-25% commission fees that OTAs charge by attracting more direct bookings through your website, with the help of a direct booking engine. You can also make more money through dynamic pricing strategies, where your CRS adjusts your room rates in response to market rates and demand, to ensure you always charge what your rooms are worth at any given moment.

What is the importance of CRS in the travel industry?

All in all, the importance of computer reservation systems is hard to undersell, not least because almost every hotel now uses one, putting those that don’t at an instant disadvantage. They simply offer a better, faster and more accurate way to track and manage bookings.

History of computer reservation systems

Where did CRS technology originate? It can be traced back to 1963, when American Airlines introduced its ‘semi-automated business research environment’, or SABRE. This CRS would ultimately become a global distribution system (GDS).

After the introduction of SABRE, CRS technology quickly spread throughout the airline industry, and by 1976 it began to be used by the travel and tourism industry too.The rise of computers through the 80s and the internet through the 90s turbocharged the take-up of CRS tools. Computer reservation systems for small hotels are everywhere: these days even the smallest hotels and travel businesses will usually have some form of cloud-based computer reservation system.

What are the benefits of using CRS?

Implementing a CRS at your hotel offers up a wealth of benefits for your business and your guests.

Improve customer service

Eliminate human error by automatically accepting booking information straight from the guest. Avoid double-bookings by letting the system automatically update availability across all your booking channels as soon as a reservation comes in. Offer guests extras and upgrades as part of the direct booking process to enhance their stay. 

All in one place

Never lose another booking. Stop fighting piles of paper. A CRS places all your reservations in a single screen, shown in calendar form. Simply click on a booking to see all the relevant details.

Automation and efficiency

A modern CRS will automate a huge amount of low value busywork, from manually keying in reservations to updating rates and availability across all your booking channels. With Little Hotelier you can save up to 35 minutes on every single booking!

Real-time availability

A CRS like Little Hotelier updates room availability as soon as a new booking comes in. Every booking channel is always up-to-date, ensuring no double-bookings or disappointed customers. It’s all based in the cloud too, so you can manage your bookings on-the-go.

Enhanced data security

A quality CRS will protect your small property from online fraud and give guests confidence that their personal information and payment details are safe. Little Hotelier does exactly that with PCI-DSS and PSD2 SCA compliance.

Dynamic pricing

Are you earning as much as you can from your available hotel rooms? You have a limited number of rooms, so maximising revenue is about making the most of what you’ve got. With the help of a CRS with a dynamic pricing feature, you can ensure your rooms always sit at market rates.

Monitoring, reporting and analytics

By crunching the numbers, you can learn how to grow your hotel business and maximise its profitability. A quality CRS will offer analytics on your business, and will be capable of generating meaningful, actionable insights.

Little Hotelier’s features are great and, frankly, we didn’t run into any obstacles at all. With Little Hotelier’s help, it is very easy for us to get more bookings.

Dewa Arsana,

Property Manager

Castaway Boutique Resort

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What are examples of CRS?

In terms of computer reservation system examples, the likes of Pegasus and Amadeus (TravelClick) are some of the biggest names in the game. The issue for small, independent hotels is that these tools tend to be a little too capable – they offer endless functionality, but that can make them too complex and costly for smaller operations.

Are CRS for hotels and small accommodations different?

CRS systems for smaller properties are simpler and tailored to the needs of independent hoteliers. They focus on core features like managing inventory, adjusting rates, and processing bookings efficiently, without the complexity found in systems for larger chains.

Designed for ease of use, these systems emphasise essentials such as website booking engines, OTA connections, and basic reporting. They prioritise affordability and simplicity, helping smaller accommodations maximise occupancy and revenue while keeping operations manageable.

What should you look for in a computerised reservation system provider?

Choosing the right CRS provider is key to simplifying your operations and maximising your bookings. Here’s what to prioritise:

• Ease of use: The system should have an intuitive interface that’s easy to navigate, saving you time on training and day-to-day tasks.
• Channel integration: Ensure it connects seamlessly with OTAs, GDS platforms, and your direct booking channels, so your rates and availability are consistent everywhere.
• Real-time updates: Look for a system that updates inventory and rates instantly to avoid overbookings and missed opportunities.
• Customisation options: A good CRS lets you tailor features to your property’s unique needs, from rate plans to promotional packages.
• Reporting and analytics: Choose a provider offering insights into your performance, enabling you to make data-driven decisions to boost revenue.
• Customer support: Reliable support is essential to handle technical issues quickly and minimise disruptions.

If your CRS provider can’t tick those boxes, you’re missing out on some of the incredible benefits offered by a platform like Little Hotelier.