{"id":790,"date":"2020-03-13T17:37:00","date_gmt":"2020-03-13T17:37:00","guid":{"rendered":"https:\/\/avenue9.solutions\/?page_id=790"},"modified":"2023-01-16T12:55:15","modified_gmt":"2023-01-16T12:55:15","slug":"apaleo-pms","status":"publish","type":"page","link":"https:\/\/avenue9.solutions\/?page_id=790","title":{"rendered":"apaleo PMS"},"content":{"rendered":"\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 24.6895%;\"><a href=\"http:\/\/apaleo.com\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"size-medium wp-image-791 alignleft lazyload\" data-src=\"https:\/\/avenue9.solutions\/wp-content\/uploads\/2020\/03\/Alan-photo-200x300.png\" alt=\"\" width=\"200\" height=\"300\" data-srcset=\"https:\/\/avenue9.solutions\/wp-content\/uploads\/2020\/03\/Alan-photo-200x300.png 200w, https:\/\/avenue9.solutions\/wp-content\/uploads\/2020\/03\/Alan-photo.png 300w\" data-sizes=\"(max-width: 200px) 100vw, 200px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 200px; --smush-placeholder-aspect-ratio: 200\/300;\" \/><\/a><\/td>\n<td style=\"width: 75.3105%;\">\n<h1 class=\"rich-text editor-rich-text__editable block-editor-rich-text__editable has-text-align-left is-selected\" role=\"textbox\" contenteditable=\"true\" aria-multiline=\"true\" aria-label=\"Write heading\u2026\">On why old-school interfaces are giving way to open APIs in web-native PMS like apaleo.<\/h1>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p><strong>Dale:<\/strong> Hello, I&#8217;m speaking with <span style=\"color:#ea1d76\" class=\"tadv-color\">Alan O&#8217;Riordan<\/span>, Director and Co-Founder of apaleo. Well, we like to talk today about some of the views he has on the industry and about apaleo itself. So, Alan, welcome. <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Hi, Dale, how are you? <\/p>\n\n\n\n<p><strong>Dale: <\/strong>Doing very well, thank you\nvery much. <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Good. Good. Good. <\/p>\n\n\n\n<p><strong>Dale: <\/strong>So to kick off. Can you\ntell me a little bit about your own history in hotels and hospitality; how you\ngot into the business? <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Sure. Actually, I&#8217;m in my\n21st year in hotel technology sales, or hospitality technology sales, I guess I\nshould say. It&#8217;s a kind of an odd one in that I was in manufacturing for the\nfirst seven years of my career. I ended up getting involved in an IT\nimplementation project, found IT quite interested me and decided that was the\ndirection I wanted to head in. And so, a local PMS provider was advertising a\nrole for which I seem to be qualified, so I applied for it and, to my surprise,\nI was offered the position. That was in 1999. <\/p>\n\n\n\n<p>I&#8217;m now\nwith apaleo and this is the third PMS vendor that I have been with. So, I&#8217;ve had\n21 years in the industry, all primarily involved in business development,\nsenior management and all with PMS suppliers. <\/p>\n\n\n\n<p><strong>Dale: <\/strong>So 1999, 20 plus years? <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Correct. <\/p>\n\n\n\n<p><strong>Dale: <\/strong>What did the industry look\nlike way back then? <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Well, it&#8217;s interesting\nbecause one of the things I like about spending my first seven years in\nmanufacturing is that it taught me, because we were selling consumable items, that\ncustomer service is everything. Because if you didn&#8217;t keep up the customer\nservice and provide your customers with a very good experience, it was very,\nvery easy for them to place their next order with another competing supplier. The\nfirst thing that struck me when I came into the industry was how sticky PMS was\nin hotels and how difficult it was, once implemented, to reverse a decision or\nto change out your PMS or to look for something different, because it just felt\nlike open heart surgery doing it. As a result of that, what I noticed was that\nthere wasn&#8217;t quite the emphasis on support and looking after customers that\nperhaps I had been used to, having been in a different industry where that was\ncrucial to maintaining your customers. <\/p>\n\n\n\n<p>So I\nguess my first impression when I joined that company back in 1999, was that there\nwere systems which perhaps shackled, that might be too strong a word, but\nshackled their customers and made people a little bit complacent about support.\n<\/p>\n\n\n\n<p><strong>Dale: <\/strong>Back in 1999, though, there\nweren&#8217;t a whole lot of, I guess what we would call sophisticated PMS is in the\nmarket. So what challenges did you face when you&#8217;re going and meeting new\nclients or new prospects? <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Well, if you think back to 1999,\nI guess Fidelio was still the dominant system. It was a DOS based system and a\nvery solid workhorse. And then you had other systems like Innsite and IGS, here\nin the UK at least, and they were solid DOS based workhorses. And at that time,\nthe move was happening towards Windows based systems in order to make life\npotentially &#8211; at least, the sales promise was that life would be easier with\nWindows based systems, which is partially true from a technology perspective.\nBut some would argue actually, it was a step backwards in terms of the\ninteraction of hotel staff with their guests. <\/p>\n\n\n\n<p>I\nthink the biggest challenge that we faced was resistance to change, you know,\nthat \u201cnobody ever got fired for buying IBM\u201d kind of mentality, because Windows\nbased systems were still a relative novelty at that point. And a lot of people\nwere resistant to changing from the DOS based workhorse they knew so well. <\/p>\n\n\n\n<p>But\nactually, when you think about the problems, the challenges that the industry\nfaced at that time, they weren&#8217;t too different from the challenges that the\nindustry faces today, which was needing to keep up in order to harness the\npower of the technology that&#8217;s available today and having to constantly upgrade\nsystems on that basis, but being very reluctant to do so because of the\nperceived pain of change in that process. <\/p>\n\n\n\n<p><strong>Dale: <\/strong>It&#8217;s interesting because you\nwere there at the cusp of the change from the DOS based applications to Windows\nand that was a proper sea change in the way we operate today and looking back\nnow, I don&#8217;t think any of us, even though I remember the old systems, you know,\nmicros Fidelio, v6 product, but I don&#8217;t think any of us would do without Windows\nin that kind of environment now. So, looking more recently, how did this end up\nwith you and Uli Pillau founding apaleo? <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Well, I guess in the 19\nyears before I joined apaleo, I just noticed the same problems over and over\nagain, regardless of the advances in technology, both with PMS and other\ncomplementary systems. Support has always been a pain point for hoteliers &#8211; there\nwas a global study on PMS a couple of years back and support was identified as\nthe number one pain point for hoteliers and hotel groups. And that has always\nseemed to be a tricky one to overcome. <\/p>\n\n\n\n<p>The\nsecond, I guess, was integrations, which are actually listed in that same study\nas the second most painful issue that hoteliers and groups and chains have to\ndeal with. And then the third was the overall cost of ownership and the pain\nand disruption and fees associated with having to change PMS. So I really\nshouldn\u2019t take too much credit, because Uli and some of the other founders\nwithin apaleo had already conceived a new approach to PMS long before I joined\nthe company. But really, the primary purpose of founding apaleo was to address\nhead on those three points, I guess, and really to free up hoteliers to be able\nto innovate in a much better way than they could before. <\/p>\n\n\n\n<p><strong>Dale: <\/strong>So now to the nitty-gritty,\nwhat makes up apaleo different from the other products in the PMS market arena?<\/p>\n\n\n\n<p><strong>Alan: <\/strong>Well, on a purely technical\nlevel, we are API first. And for those who are not familiar with API technology,\nthat essentially means that we put the integration platform, or the platform to\nwhich third parties can connect, at the centre of our thinking. So we develop\nin the API layer first, we put the logic and support for any features that we\nneed in there and then our PMS connects to that API to provide the feature to\nthe end user. But our PMS connects to the API in exactly the same way that any\nthird party or any hotelier or hotel group would. <\/p>\n\n\n\n<p>So the\nAPI first development allows us to offer much better, much deeper and much more\nseamless integrations. And because the API sits at the centre of everything we\ndo, we don&#8217;t charge for those integrations. So they&#8217;re absolutely free of\ncharge to the hotelier. We don&#8217;t care whether a hotel has 25 integrations or\none, they will never pay us a penny more. And we also don&#8217;t put any cost\nbarriers in place for third parties needing to integrate with us. Everything is\npublic, fully open, real time and it&#8217;s completely free to integrate to apaleo\nand we will provide help and support for that process. <\/p>\n\n\n\n<p>So\nthat&#8217;s one. The second is, because the API first approach allows us to have\nvery deep, seamless, easy integrations with third parties that do their specific\njob very, very well, it means that we can reduce the scope of PMS, which has\nover the decades become, in our opinion, bloated and it&#8217;s tried to be more than\na PMS was originally intended to be. For example, the traditional legacy,\nmonolithic PMS\u2019 have a lot of peripheral functions around the edges, which we\nfeel are better served nowadays by dedicated third party systems that are out there\nand doing a very good job with that.<\/p>\n\n\n\n<p><strong>Dale: <\/strong>So just a best of breed\napproach? <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Yeah, and I think the benefit\nfrom our point of view there is that, number one, the hotelier can pick and\nchoose their own products, to build out what we would call the perfect tech\nstack to run their specific business. And the integration that&#8217;s available\ntoday allows that to happen without any increased support overhead or any\nimpact on the user experience for their staff. But it also allows us from a PMS\nperspective to promote what we would call a lean PMS philosophy, to the extent\nthat it can be self-onboarding. <\/p>\n\n\n\n<p>And by\nself-onboarding, what I mean by that is that traditionally, when you&#8217;re\nthinking about buying a PMS, you&#8217;re expecting to have to pay tens of thousands\nof pounds in CAPEX to the PMS supplier for professional services around project\nmanagement, configuration services, training, interface commissioning, live\ncover, project reviews, all that kind of stuff. And we&#8217;ve done away with all of\nthat. As long as, of course, that&#8217;s what the hotelier wants, then they can\ncompletely self-onboard. We will provide assistance remotely with web guided\nsessions. And we have many, many examples of customers who have done that very\nsuccessfully. So zero CAPEX on that basis as well. <\/p>\n\n\n\n<p><strong>Dale: <\/strong>Great. So, what does that\nmean for hoteliers? And we&#8217;ve talked about the self-onboarding, what else does\nthat mean if I were hotelier looking at apaleo?<\/p>\n\n\n\n<p><strong>Alan: <\/strong>Well, just to touch upon self-onboarding\nagain. To give you a real life example, we have a client here in the UK who self-onboarded\n10 properties with 750 bedrooms, connected to distribution, in one working\nweek. So they went from zero to live in all 10 properties in one working week and\nwithout any help from us. They had implemented a pilot property with some\nguidance from us on configuration and training of the system. They piloted that\nfor four weeks and then they took the decision internally to go ahead and deploy\nto a further 10 properties. Just like that.<\/p>\n\n\n\n<p>So you\ncan imagine the benefits from that. They see the agility and the speed with\nwhich they can deploy is a huge benefit for them. It was at a time when they\nwere just heading into peak season. If they had been implementing a traditional\nPMS, they would essentially have had to wait until after their peak season\nbefore they could have considered doing something on that scale. But because of\nthe self-onboarding concept with apaleo and the relative speed with which these\nthings can be done and third parties can be connected, they were able to\nsqueeze that into a very short period of time and get their ideal tech stack in\nplace in time for that peak season. So that&#8217;s a huge, huge benefit, I would\nsay, and demonstrates the reality of self-onboarding, even for groups like\nthat. <\/p>\n\n\n\n<p>I\nthink there is also an improvement in the support experience. Because of the\nAPI-first approach and the improved technology that&#8217;s available today, integrations\ntend to generate way, way fewer support calls. And actually, with apaleo, the\naverage number of calls per property per month is currently sitting at around 1,\nwhich is a strong measure for PMS. We could break those down further and look\nat the number that come from lack of user knowledge, for example, but long\nstory short, what our clients are seeing is a significantly reduced support\noverhead and a much better support experience as a result of that. <\/p>\n\n\n\n<p>And I\nguess it allows them to innovate and to respond to market trends, without\nfeeling as if they&#8217;re completely handcuffed by their PMS vendor. If they find a\nnew application that they think is interesting and that will help their\nbusiness, it&#8217;s very, very easy for them to give that a spin and do a trial with\nit, even connected to the PMS as part of that trial, without having to wait\nmonths and months and without having to pay the vendors thousands of pounds and\nwithout having to commit and then be caught up in a solution that perhaps isn&#8217;t\nright for them and not find it easy to pull back from that. <\/p>\n\n\n\n<p><strong>Dale: <\/strong>So using apaleo, I would be\nable to get my teams up and running very quickly with self- onboarding, minimal\ntraining and the support would be better than if I were looking at a larger PMS\nenvironment, so to speak, that would have lots of different applications or\nmodules built within it, plus, it cost me less.&nbsp;&nbsp; <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Nicely summarised, Dale!<\/p>\n\n\n\n<p><strong>Alan: <\/strong>That\u2019s more concise than\nme!<\/p>\n\n\n\n<p><strong>Dale: <\/strong>Looking for all the\nbenefits. <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Yeah. <\/p>\n\n\n\n<p><strong>Dale: <\/strong>Alright, so obviously, apaleo\nis different. It&#8217;s significantly improved in a number of key KPIs. Where do you\nthink the future of PMS is headed?&nbsp; <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Well, I think that if we\nlook at the definition of PMS specifically, as I mentioned earlier, I think some\nof the traditional PMS\u2019 that currently dominate the market, or the legacy,\nmonolithic systems, as we would describe them, have become a little bloated. So\nnumber one, I think we will see a return to a more lean system when it comes to\nPMS. apaleo is primarily concerned with availability rates, inventory,\nreservations and financial data. We also add payment into the mix, which\nperhaps traditional systems didn&#8217;t do so much. We do a lot on really, really\ntight payment integration to automate payment processing wherever possible. <\/p>\n\n\n\n<p>But think\nabout some of the stuff around the edges of PMS &#8211; guest communications, CRM,\nbusiness intelligence, sales and catering &#8211; that perhaps some of those\ntraditional PMS\u2019 will include as part of their portfolio of products, or as\nmodules that you can switch on or off, or sometimes as core functionality\nwithin the system. I believe that, over a period of time, they will become less\nused as part of the core PMS and hotels will start to specify dedicated third-party\nsolutions that integrate seamlessly with the PMS. That really gives the hotelier\ncontrol moving forward. As I mentioned earlier, they can plug and play, they\ncan try out solutions much, much more easily. If they&#8217;re multi-property they\ncan trial, as has happened with one of our clients, two different solutions separately\nconnected to different properties. And at the end of the trial, they can decide\nwhich one to move forward with. <\/p>\n\n\n\n<p>So I\nwould see that really as the future of PMS, being a fully open,\nself-onboarding, leaner system. Still mission critical, of course, because it&#8217;s\nthe core system that&#8217;s holding your key reservations data, but becoming more\nplug and play and, as a result of that, vendors will perhaps live and die a\nlittle more by their support and by their commercial models.<\/p>\n\n\n\n<p><strong>Dale: <\/strong>Well, for apaleo and a few\nothers that are web-native or have been created solely for the web environment,\nwhat does that mean for the monolithic hotel PMS you mentioned earlier, I mean,\nthey will likely be left behind, it sounds like?<\/p>\n\n\n\n<p><strong>Alan: <\/strong>That would be my belief. I\nthink, if you have a PMS which is based on older technology, it&#8217;s extremely\ndifficult, if not impossible, to keep up with the pace of innovation that&#8217;s\nhappening today. And, whilst you might be using 10, 15, or 20 year old\ninterface protocols that can still somehow connect a third party system, the\nquality of the integration will not be up to scratch. <\/p>\n\n\n\n<p>Think\nabout the consumer experience that we now have on our mobile phones every day,\nthe way in which apps can be downloaded and connected to Facebook or to some\nother application and how they interact with each other to provide you with the\nbest possible experience, the fact that you don&#8217;t need to call an engineer from\nthat app provider to come to your house and install it for you. This is our\nnormal experience as consumers these days. And it&#8217;s absolutely the case that\nbusiness applications should follow suit. So the legacy systems will struggle\nto keep up with that pace of innovation and to satisfy their customers and not\nhold them back in terms of total cost of ownership or the ability to innovate.\nAlso, when it comes to the core PMS itself, the speed with which new staff can\nbe trained, all of those topics are going to be very, very difficult.&nbsp; <\/p>\n\n\n\n<p><strong>Dale: <\/strong>So we&#8217;re getting rid of all\nthe tin that&#8217;s down in the basement of these hotels?<\/p>\n\n\n\n<p><strong>Alan: <\/strong>Oh absolutely. For at least\nthe last three to four years, if not longer, in pretty much every project I\nhave been involved with, one of the two or three \u201cmust have\u201d requirements is\nfor the system to be cloud based. And I would go further and say now, it must\nnot just be \u201ccloud based\u201d, but it must be a true, cloud native system, designed\nfrom the ground up as such, in order to future proof yourself. <\/p>\n\n\n\n<p><strong>Dale: <\/strong>Alright. So we&#8217;re talking\nabout future, what&#8217;s the future for apaleo?&nbsp;&nbsp;\n<\/p>\n\n\n\n<p><strong>Alan: <\/strong>Take over the world, of\ncourse!&nbsp; Commercially, we currently have\nsomewhere between 250 and 300 contracted properties in eight countries. So the\npace of growth, we&#8217;re starting to see a nice curve there and we would expect\nthat we will continue to see that growth accelerate and the number of countries\nin which we are active also increase. We have a mixture of independent hotels\nand groups in our portfolio at the moment, but I think that we become more and\nmore interesting to chains as we grow. <\/p>\n\n\n\n<p>From a\nproduct perspective, we have a marketplace which currently has about 90\nconnected vendors and we&#8217;re very focused on increasing that. And we&#8217;re starting\nto see some of the bigger players now connecting with us as well. So, over the\nnext three to six months, you could expect to see some of the significant\nindustry leaders in other software categories appearing in our marketplace as\nconnected partners. <\/p>\n\n\n\n<p>And of\ncourse, we continue to add core features to the PMS and to enhance the system\nin areas such as, for example, fiscalisation for certain countries, where there\nare legal or regulatory requirements that need to be met. So all of those\nthings will be keeping us busy during the course of 2020.&nbsp; <\/p>\n\n\n\n<p><strong>Dale: <\/strong>I&#8217;ve got to say, back to\nyour point about fiscalisation, that seems to be one of the points that we&#8217;re\nhearing more and more that a lot of companies\u2026and a lot of products, not just\nPMS but a number of products that can&#8217;t meet the fiscalisation requirements for\ncountries not only across Europe, but also to Asia.&nbsp; <\/p>\n\n\n\n<p><strong>Alan: <\/strong>Yeah, absolutely. I think\nit can be a little bit more difficult for some of the older systems that\nperhaps started life as a local system without necessarily having that sort of\ninternational mindset. apaleo has been conceived from day one as a product\nwhich is designed for multinational enterprise, to scale to meet the needs of the\nlargest groups in the world. So at its core, it has in its design principles\nsupport for fiscalisation. And we&#8217;re now at the point where we are putting into\nplace the architecture to support that. And we will start to announce supported\ncountries over the course of the remainder of 2020.&nbsp;&nbsp; <\/p>\n\n\n\n<p><strong>Dale: <\/strong>Right. Assuming this\ndiscussion has whetted to the appetite of a hotelier or group CTO or CFO, what\ndo they need to do to get in touch?&nbsp; <\/p>\n\n\n\n<p><strong>Alan: <\/strong>They can do many things! They should certainly follow us on social media, particularly LinkedIn. We\u2019re pretty active on social media, not just in terms of blowing our own trumpet, but also talking about industry issues and promoting partners that have connected to us, that kind of stuff.&nbsp; And our website, of course, <a href=\"http:\/\/apaleo.com\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"www.apaleo.com (opens in a new tab)\">www.apaleo.com<\/a>, is a good starting point to find out a little bit more about us. You can also email <a href=\"mailto:info@apaleo.com\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">info@apaleo.com<\/a>. Or, for anybody who would like to contact me, I&#8217;m available on <a href=\"mailto:alan@apaleo.com\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"alan@apaleo.com (opens in a new tab)\">alan@apaleo.com<\/a>.&nbsp;&nbsp; <\/p>\n\n\n\n<p><strong>Dale: <\/strong>Right. Well, thank you, Alan.\nIt&#8217;s been very enlightening. I think, it&#8217;s certainly shown the benefits of a\ncloud native environment over the legacy systems and I&#8217;m hoping that we&#8217;ll be\nable to touch base again in the near future.&nbsp;&nbsp;\n<\/p>\n\n\n\n<p><strong>Alan: <\/strong>Thanks very much, Dale, I\nappreciate it.&nbsp;&nbsp; <\/p>\n\n\n\n<p><strong>Dale: <\/strong>Alan, thank you. <\/p>\n\n\n\n<p><a href=\"https:\/\/avenue9.solutions\/focus\">&lt;&lt; Back<\/a>   <a href=\"https:\/\/avenue9.solutions\/focus\/right-revenue\">Next>><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On why old-school interfaces are giving way to open APIs in web-native PMS like apaleo. Dale: Hello, I&#8217;m speaking with Alan O&#8217;Riordan, Director and Co-Founder of apaleo. Well, we like to talk today about some of the views he has on the industry and about apaleo itself. So, Alan, welcome. Alan: Hi, Dale, how are &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/avenue9.solutions\/?page_id=790\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;apaleo PMS&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":787,"menu_order":50,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"class_list":["post-790","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>apaleo PMS &#8211; Avenue 9 Solutions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/avenue9.solutions\/?page_id=790\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"apaleo PMS &#8211; Avenue 9 Solutions\" \/>\n<meta property=\"og:description\" content=\"On why old-school interfaces are giving way to open APIs in web-native PMS like apaleo. Dale: Hello, I&#8217;m speaking with Alan O&#8217;Riordan, Director and Co-Founder of apaleo. Well, we like to talk today about some of the views he has on the industry and about apaleo itself. So, Alan, welcome. 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