How Much It Costs to Create a Hotel Management System?

By Ruchir C.

No matter how big your hotel is, property management requires much effort. All operations must be carefully tracked, from reservation and accounting to managing customer data and administration.

How can you make sure your business can function in such chaos? The solution is to digitalize your hotel property management, automate daily operations and use hotel property management software (PMS).

As it fulfills the customer's most basic need, convenience, building a hotel booking website or app is gaining momentum. It seems lucrative to you? Let's discuss the costs of creating hotel booking solutions and how to grow your hospitality business.

Statista data shows that online hotel bookings are a success. The worldwide online travel booking market is expected to reach $983 million in 2027, according to Statista. These numbers are compared to $517.8 million in 2020 and you will see the significance of this growth.

This article will take a closer look at hotel management app development. We'll explain the core features and challenges of a hotel PMS.

Defining Hotel Management Systems

Digitalization is becoming a trend in the hospitality industry. More guests are choosing to use digital services and smartphones to express their appreciation for the past. These customers use online hotel booking software and recommend services to book hotels. They love to communicate digitally with hotel staff, helping them navigate various activities and leaving testimonials on social media.

Hoteliers increasingly use automated solutions to manage staff, assets, accounting, and other tasks. A hotel property management system is a collection of software services that allow you to manage and run routine hotel workflows.

Many hospitality companies use pre-designed systems for property management. Some choose to create custom software solutions for their hotel. These systems offer many benefits for hotel managers, staff, and owners.

Let's take a closer look at the advantages of property management software in a small hotel.

What are The Benefits Offered by Hotel Management System?

You should ask yourself if it is worth the investment.

Yes, that's the simple answer. Cloud technology is affordable because you only pay for what you use and the provider takes care of all operational costs. Cloud technology is also free from repairs and replacements like manual or hardware systems.

We'll highlight all the benefits a hotel management software can bring to your small business. Because there are so many benefits, we'll try to keep it short. Let's get started!

Save Time on Admin Tasks

The best hotel management software will drastically reduce the time spent on administrative tasks. The software does most of the work, allowing you to focus on more important tasks like serving guests.

Hotel management software will impact every area of your property more than any other software. You can save time in front of the house, revenue management, and housekeeping. This will allow you to make your business more efficient and enhance your staff's satisfaction.

Improved Revenue Management

Software for hotel property management connects operations with financial processes. It integrates with accounts receivable and accounts payable, payment gateways, a point-of-sale system, and payment processors. Analytics, reporting, competitive intelligence, and analytics are all key components of the hotel's success.

Lower Costs

While hotel software requires a financial investment initially, these systems and applications can save significant money over time. This is because fewer people are needed to manage many day-to-day operations, and money can be saved in many other areas.

Automation can reduce labor costs. This can help reduce staff, decrease their hours, or gain productivity in other areas. Software that manages reviews can improve your brand and save you money on marketing. Channel managers can also save on distribution costs.

Contactless Tech

The modern rule of thumb is less touching and more distance. This will remain relevant for many years. Hotels must offer guests a seamless experience to help them return to full steam. This should include the entire service cycle, from streamlined booking to hotel stay to payment and reviews.

Online presence for a hotel shouldn't just be about the website and booking engine. Cloud locks with mobile keys, chatbots and apps, cashless payments, and seamless online communication are all options. They will appreciate your tech-savvy methods of protecting your customers' data.

Efficiency-Oriented Solutions

Today's hospitality industry is fast-paced, and hotel operations are becoming more complex. These processes can be automated by hotel property management systems, allowing them to provide better service for their guests and visitors. A hotel property management system can automate much of the work and sometimes reduce or eliminate the time spent on tedious tasks. This allows hoteliers to concentrate on the bigger picture.

Channels of Distribution

Integrating property management software with a channel management function is highly beneficial. Hoteliers can advertise on multiple channels, from large online travel agencies (OTAs) and global distribution systems (GDSs) to individual retail travel agents. You can have all bookings through one channel (OTAs and GDSs) managed by your team. This will allow you to avoid significant errors impacting the guest experience.

Centralized Hotel Management

The current trend is a web-based hotel management system. Anybody with an internet connection and a computer can access the centralized system using a login ID and password, regardless of where they are located. This centralized system keeps everyone updated. The status of the room can be updated by housekeeping, and the kitchen can fulfill the request of guests and can update the status upon delivery. You can quickly assign a task to a specific person, who can then be notified via their mobile app and system.

Increased Bookings

Each feature of your hotel management software should help increase your overall bookings. The right software system will allow you to optimize and maximize what you can do, regardless of whether you are looking to expand your market or increase bookings in low seasons.

You can manage your revenue and use a direct booking engine. But integrations, smart reporting, and automation can all help.

Avoid Double Bookings and Manual Errors

Software systems for hospitality management are designed to prevent double bookings and overbookings. They also contain mistakes when front desk staff enters customer information like names, passport details, card numbers, etc.

This results in a better guest experience, no awkward follow-up conversations asking for guests' correct details, and more time for staff to concentrate on their essential work and reliable business data.

Automation

Is it possible to imagine how your clients would respond to automated, but probably less personal, procedures?

You don't have to worry about it: their experiences will be more personal, and they will love the results. McKinsey states that people gained digital habits during the lockdown that they will not soon forget.

Another report states that executives across different industries and companies recognize the importance of technology in strategic planning. All signs indicate a ready consumer market for digital experiences and tech solutions. COVID-19 has forced businesses to meet customer expectations. The share of digital offerings has risen dramatically across all business sectors.

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Top Hotel Management Software for 2022

Finding the right hotel management software for small hotels can be challenging. Vendors often target large hotel chains, but they overlook small businesses in the hospitality industry. There are some exceptions.

Here is a list that may be of interest to you: Hotel management software for small properties

Frontdesk Anywhere

This award-winning solution is ideal for managers who need to multitask but can't be at the front desk all day. This software is suitable for small hotels and includes features to facilitate bookings, maintenance, finances, and a distribution management system with 350 channels.

Prices vary depending on how many rooms are in a hotel. The monthly cost starts at $80

Mews

Mews is a hotel booking engine that offers unparalleled quality and can be used with the Mews Hospitality cloud. Mews can help you elevate your small hotel to the top by driving direct bookings and reducing website abandonment.

It is easy to connect the booking engine to your website. This makes it easier to attract clients and convert them into paying customers. You can make reservations in any language or currency and on any device. You can brand and customize the booking engine. You can also hook up to software such as revenue managers, channel managers, housekeeping, accounting, etc.

Mews can track revenue, convert performance and understand guest behavior. You can sell more rooms and increase your income by upselling, add-ons, and other features.

Hotelologix

This app can be used for both small and large properties. It is a SaaS service and can be synchronized with many third-party services. It integrates with accounting and booking modules to make hotel operations easier.

The app automates inventory tracking and room service. It can also include modules that manage revenue streams and marketing channels. Premium editions cost $65.

Hotelfriend

This PMS suite was designed for small and medium-sized hospitality businesses. Hotelfriend assists small hotel owners in automating all aspects of property management, from bookings and reservations to accounting and staff administration.

It also provides channel management capabilities and connects with online travel agencies (OTA) and marketplaces. It is a SaaS app that runs on AWS cloud infrastructure. This ensures high data security. The monthly price starts at $9,41.

Sirvoy

All hotels can use Sirvoy. It is a PMS, Booking Engine, and Channel Manager. Because it is cloud-based, bookings can be made from any device. The hotel booking system starts at $9 per month, making it very cost-effective for small hotels.

The booking engine can be used to make direct, non-commissionable bookings directly from your website. The responsive hotel booking engine makes booking easy for guests online or from their smartphones. All you have to do to get bookings is to add the code snippet on your website.

Types of Hotel Management Systems

An increasing number of guests are choosing to book online, with up to 80% of those under 30 choosing it. A well-informed hotelier must have a good understanding of the software landscape for hotel bookings. Hoteliers may not be familiar with all the different software types available. This can confuse those who don't work in this space.

We'll be introducing you to five significant categories of hotel booking software: OTAs (Central Reservations Systems, CRS), booking engines (CRS), channel managers (channel managers), and property management systems (PMS) below. This blog post will help you to understand the differences between each type of booking software so that you can increase your hotel's online visibility and make the best technology decisions.

Central Reservations System: Manage Online Bookings

Diversifying your reservation channels is a good idea. Most hotels don't rely on OTA bookings solely. Many chain hotels and large hotels use central reservation systems (CRSs), which allow them to manage reservations made through their own reservations departments. CRSs enable multiple reservation agents to see real-time pricing and availability and create, modify, and cancel reservations in one central system.

According to the Hotel Tech Report, at the moment of writing, Pegasus and GuestCentric are the top three rated CRS vendors.

Channel Manager

Direct reservations, whether made through a hotel's website or a reservation agent, don't usually result in a whole house every night. A smart hotelier uses third-party channels to maximize online exposure and reach a broader range of guests. Hotels use channel management software to make it easier to interact with third-party media.

SiteMinder and Cloudbeds are the top-rated channel manager’s vendors according to Hotel Tech Report.

Property Management Systems

The core of your hotel tech stack is a property management system. It automates many administrative tasks in the hotel. It stores your reservation, guest profiles, billing, and room statuses. Nearly all departments of a hotel use the PMS. Front desk agents check guests in, housekeeping teams determine which rooms need cleaning, finance teams manage the bill, and leadership teams review trends and reporting. A PMS should not only be able to book guests but also have the ability to manage hotel operations and guest experiences.

Booking Engine: Make Direct Bookings From Your Hotel Website

In addition to booking directly through the reservations staff, guests may also book on hotel websites. However, a booking engine is required for this. Booking engines provide real-time availability and rates, host the booking process, gather guest details, and integrate confirmed reservations with the hotel's property management system.

SiteMinder and Cloudbeds are the top-rated booking engines on Hotel Tech Report as of this writing.

Online Travel Agencies (OTA)

Many of the online reservations are made through online travel agencies or OTAs. These digital marketplaces can be compared to Amazon for travel. Travelers can search by various criteria to find available hotels, flights, and rental cars. Then, they can book through the marketplace platform.

The OTAs provide significant guest benefits, such as loyalty programs and credibility. They also offer convenience by having all options at your disposal. Guests book their reservations on the OTA. The OTA then sends a confirmation to the hotel. These reservation details are integrated with the hotel's property management system or can be accessed by a channel manager. More information later!

Cost of Creating a Hotel Management System!

The cost of hotel management software development and mobile app development depends on many factors. For example, whether the app is for one platform (Android, iOS) or both.

While developing an app for one platform is cheaper, it costs more to develop for the other. The app's location will be another factor that can impact the development price. Take, for example:

  • US-based developers charge $100 up to 250 an hour

  • Eastern Europe-based developers charge $80 up to $180 an hour

  • India-based developers charge $25 up to 50 an hour

Therefore, hiring Indian mobile app developers is a good idea as they are the most affordable. If you want to have the app developed only for one platform and with limited features, it will cost you $15000 to $250,000. However, the price will go up if the app is designed for both platforms.

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The Key Takeaway

Managing a small property is not as easy as managing a large chain. Staff and resources are often scarce, so owners require comprehensive tools to assist them in managing multiple processes and tasks.

Automated Property Management Systems are a better alternative to using different software and tools. They combine all the features necessary for managing small hotels, guesthouses, and condos or rental properties quickly and efficiently.

PMS software can speed up time-consuming tasks, eliminate human errors, streamline routine processes, and help deliver memorable guest experiences.

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