The Best Hotel Management Software in 2025

A hotel management system is software that streamlines various hotel operations. They include booking and reservation adjustments, billing, housekeeping, administrative tasks, and other activities essential for efficient hotel management.
Hotel management systems used to be focused primarily on financial transactions, effectively reducing manual errors and increasing productivity in this area.
Namely, they regularly update and display the latest information about the current room occupancy, as well as guests’ eligibility for discounts and special promotions.
However, the software developers have recently recognized the hoteliers’ need for hotel management systems to include broader activities.
As a result, hotel management systems now incorporate a wider range of tasks for dealing with internal and external hotel operations.

What are the benefits of hotel management software?

Hotel management software is typically used in smaller properties like B&Bs and guest houses to streamline front desk functions like property management, check-in, back-office tasks and POS (point of sale) functions when staffing is lighter. This is a non-customizable hotel management solution generally combines core hotel property management system functionality with fully integrated channel management (prevent overbookings and connect to travel agents like Expedia), online booking engine, hotel website, guest service portal, housekeeping, maintenance, event management, email marketing, text messaging, customized reporting, surveys, rate management, dynamic pricing, sales lead generation, point-of-sale, payment gateway, and more.

• Increase ADR (increase revenue): Cross-utilization of key components of the HMS allows properties to track current and past guest behavior and target market upgrades, add-ons and packages through the reservation/ online booking process (credit card processing) as well as through targeted marketing campaigns. Past occupancy trend reports can be utilized to apply dynamic pricing methodology to increase ADR for in-demand periods and shoulder nights. The ability to apply restriction-based pricing within your rate manager that integrates seamlessly to the built-in channel manager connectivity easily and efficiently increases ADR to higher occupancy periods.

• Grow Occupancy: In order to increase occupancy, your system must be able to quickly and agilely adapt to booking trends. A true All-in-1 HMS provides pace reporting variances so that the property can identify areas of low occupancy and make price changes that immediately flow out to all channels, along with quickly sending targeted email marketing campaigns to entice more customers during the slower periods. The ability to quickly create packages to increase occupancy and interest in targeted dates is equally important.

• Save Time & Money: all-in-one hospitality software providers bundle various automation tools and services into one solution to help unify systems to an integrated all-in-one management solution, saving staff time and providing more visibility throughout hotel operations. Best-in-class providers offer a built-in channel manager with live, two-way direct connections to all major OTA’s and GDS’s. This saves properties time and money by eliminating the middleman. Room inventory is live across corresponding OTA/GDS, with no need for an intermediary such as a CRS. That being said, many all-in-one HMS providers do connect with top-rated CRS platforms as well.

The key functionality and core jobs to be done of a hotel management system (HMS) are crucial for hoteliers in the hospitality industry to streamline their day-to-day operations and enhance guest experience. A modern hotel management software, often cloud-based and user-friendly, includes several modules and features:

1. Property Management System (PMS): A central reservation and front desk operations hub that automates check-in, reservation management, and guest check-out processes in real-time.

2. Booking Engine: An online booking engine integrated with the hotel's website to enable direct bookings and maximize occupancy.

3. Channel Manager: Manages various online travel agencies (OTAs) and other distribution channels, preventing overbookings and ensuring pricing consistency.

4. Revenue Management: Helps in rate management and pricing strategies to maximize profitability.

5. Point-of-Sale (POS): Handles payment processing and invoicing for various hotel services, including upsell opportunities.

6. Customer Relationship Management (CRM): Manages guest information and helps in personalized messaging and customer support.

7. Integration: Seamless integrations with OTAs, social media, and third-party software solutions like Expedia, Airbnb, and others.

8. Mobile App: Offers an intuitive mobile app for both guests and hotel staff, enhancing the guest experience and providing ease of use.

9. All-in-One Solution: Provides an all-in-one solution to cater to different types of properties, including hotels, motels, inns, hostels, B&Bs, vacation rentals, campgrounds, and even hotel chains.

10. Cloud-Based: Utilizes cloud technology for accessibility and real-time updates from anywhere, allowing hoteliers to manage their property remotely.

11. Guest Experience: Focuses on enhancing the guest experience through efficient check-in processes, messaging, and online booking capabilities.

12. Front Office and Back Office: Manages front desk operations as well as back-office tasks like inventory management and accounting.

13. Payment Processing: Ensures secure credit card transactions and payment processing.

14. Social Media Integration: Helps in marketing and engaging with guests through social media platforms.

15. Direct Bookings: Encourages guests to book directly through the hotel's website, reducing commission fees to OTAs.

16. Ease of Use: Offers user-friendly interfaces for both hotel staff and guests to navigate effortlessly.

17. Maximize Profitability: Aims to increase revenue and profitability through efficient operations and pricing strategies.

18. Upgrades: Allows for easy system upgrades and customization to adapt to evolving hotel business needs.

19. Invoicing: Generates invoices for various services and tracks payments.

20. Central Reservation: Provides a centralized system for managing reservations across different channels.

Hoteliers use these functionalities to streamline operations, increase direct bookings, and ultimately provide an exceptional guest experience, regardless of the type and size of their property. Leading hotel management software solutions like Cloudbeds, Little Hotelier, WebRezPro, and others offer comprehensive solutions for the hotel industry.

Here are some other important characteristics and features to look for:

Intuitive & easy-to-use interface: A user-friendly interface is the most important factor when choosing mission-critical software for a hotel. If your hotel software is complex and confusing, more mistakes will be made, costing you more money. Common tasks should not take lots of time and steps, as this slows down your team and limits your ability to grow quickly – hence the need for a powerful hotel management software system.

Mobile & tablet optimised: When your manager, housekeeping team, and other staff members need to check details on a booking quickly they shouldn’t have to rush back to the office. Any system you use must not only be accessible by, but also optimized for use on mobile phones and tablets. Better yet, your owner should be able to check performance while on holiday.

Clear visibility of the grid: Adding special events that are happening in the region, highlighting returning guests, and identifying guests who are yet to pay their bill are all features your grid should enable by default. Your grid should allow you to quickly & easily see key information about your guests.

Guest profiles: Are you working on building guest loyalty? Guest profiles store your guests’ contact information, stay history, and even preferences, so that you can deliver a more personalized experience during their next stay. Better yet, a guest profile with stored CC’s of your guest will make it even easier for returning guests.

Types of Hotel Management Software

• Hotel Property Management Systems

Hotel property management systems manage the hotel’s administrative tasks related to billing, guest check-ins and check-outs, reservations, and room rates.

They optimize and regularly update this data to enable efficient hotel management of daily operations and enable prompt decision-making.

As a result, hotel property management systems ensure that resources are utilized effectively while keeping customer satisfaction in mind.

• Channel Management Software

Channel management software manages and updates information about hotel occupancy, room rates, and other essential details on multiple booking sites and online travel agencies (OTAs).

This ensures that your potential guests are always updated regarding their stays and possible changes to accommodations they might wish to make.

As for hoteliers, channel management software benefits them by preventing overbooking and increasing revenue through sale optimization strategies.

• Reservation and Booking Systems

Reservation and booking systems allow your guests to book, pay for, and manage their stays on their own through a secure and efficient platform.

This removes the need for direct interaction with your hotel staff, allowing them to focus on other crucial tasks. It also gives prospective guests the freedom and flexibility to update and change their reservations as much as they like before paying.

• Revenue Management Systems

Revenue management systems enable hoteliers to calculate room rates according to specific characteristics to increase revenue.

These characteristics include time of year, types of guests, or other information provided by the market trends.

As a result, hotels can adjust and display their offerings in a way that attracts their target audience and predict their revenue increases according to the current market demands.

• Customer Relationship Management (CRM) Systems

Customer relationship management (CRM) systems manage all hotel activities and efforts that bring customer satisfaction.

This includes a broad range of activities from sales and content to customer support and feedback. CRMs analyze and display this data concisely to help hoteliers detect weak spots in their strategy and improve their efforts to enhance customer experience.

• Housekeeping Management Software

Housekeeping management software keeps track of housekeeping activities to increase productivity. It manages activities such as cleaning schedules and room assignments.

This guarantees that the highest cleaning standards are maintained and the rooms are always ready to accommodate new guests.

• Guest Experience and Feedback Software

Guest experience and feedback software gathers, manages, and responds to customer feedback. It collects data from reviews, surveys, and guests’ suggestions to learn how to provide a better service in the future.

This software also enables hoteliers to respond to feedback promptly and show guests their appreciation for taking the time and effort to rate their experience.

Hotel management software (HMS) generally range in price based on the features, property size, and market segment they cater to. Most hotel management software is priced on a per room per month basis with several tiers based on feature requirements, integrations and more. At a high level, the typical price of hotel management software ranges from $4-$10 per room per month. 

Many hotel management software players have also brought payment processing in house which can increase cost to this vendor; however, using a native payment processing from your PMS is typically cheaper than working with an additional 3rd party payment processor.

Here's a broad overview of market pricing:

Entry-Level Systems

• Typical Price Range: $90 - $400 per month
• Target Market: Smaller properties
• Features: Core functionalities like reservation management, channel management, and guest communication tools.

Mid to High-End Systems

• Typical Price Range: $300 - several thousand dollars per month
• Target Market: Mid-sized to larger properties and hotel chains
• Features: Advanced features, greater customization, extensive integrations, and robust support.

Key Factors Affecting Pricing

• Feature Set: More advanced and comprehensive features increase the cost.
• Scalability: Systems designed for larger properties with complex needs tend to be more expensive.
• Support and Implementation: Higher-end systems usually include more extensive support and implementation services, contributing to higher costs.

Entry-level HMS are more affordable and suitable for smaller properties, while mid to high-end systems are geared towards larger properties with more complex requirements, reflected in their higher pricing.

An HMS that succeeds in quick and efficient on-boarding of new properties is adept at sharing the full scope of the implementation project on the kickoff call and communicating effectively with key decision-makers. The provider should ensure that key decision-makers are available for each of the following calls and that they understand how their role is vital to the success of the implementation. Importing data from the current system, setting up gateway connections, and building out rooms, rates and third-party connections takes diligence. Working with a hospitality management system that can port in previous guest experience and hotel reservation data will help shorten the onboarding process, as well as provide historical data for reporting purposes. Smaller properties can plan for a 3-week onboarding time frame, while larger properties with more complex integrations should plan for 4+ weeks of implementation.