What is hotel management software?
Hospitality management software provides all software necessities in one easy-to-use, cloud-based platform: hotel booking and reservations management as well as functionality to manage day-to-day front desk agent workflows and general hotel operations.

Hotel management software is typically used in smaller properties like B&Bs and guest houses to streamline back-office 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.

A single login allows the user to streamline access for one or multiple properties based on security profile credentials so hoteliers can see real-time inventory data.

A cloud-based hotel software can be used across all platforms and browsers. Hotel management systems are typically used by smaller boutiques, inns, and vacation rentals that require simple software solutions that combine basic reservation system functionality and automate front office tasks in a user-friendly interface. Larger players in the hotel industry tend to prefer dedicated property management systems for more comprehensive functionality that serves larger properties. Hotel chains and even larger independent hotels tend to use dedicated property management systems that can leverage integrations with other SaaS products in order to boost direct bookings, connect to distribution systems, manage occupancy rates, etc.

Having said that, many popular HMS players like Cloudbeds do offer fully integrated property management systems (cloud PMS) that are purpose built for the hotel business. Less common functionality amongst hotel management software includes room service ordering and a turnkey loyalty program.

How do hoteliers benefit from hotel management software?

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.

What is the most advanced PMS software? What property management system do most hotels use?

The most advanced hotel PMS software vendors include vendors like RoomRaccoon, Cloudbeds, RMS Cloud, and Little Hotelier (by Siteminder). The most advanced software is typically built by companies focused on the specific needs of mid-sized to smaller hotels that are well funded with strong engineering and product design resources. While design is not necessarily indicative of advanced capabilities you will likely be able to tell in an instant if a system is dated if it has poor usability. Some vendors may be more advanced than others in specific areas. Cloudbeds for example, has invested significant resources in modules for rate management (PIE) and payments. Compare the following features when deciding between vendors:

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.

Want more features? Check out 18 Must-Have Features of a Hotel Management System

What to expect during the implementation of new hotel management software

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.

What is the best hotel management software?

Hotel Software (like any software is subjective). Popular players include Cloudbeds, Room Raccoon, Ezee, RMS, and Hotelogix. Read reviews above when selecting a vendor. Make sure their revenue model is aligned (commission-free!) and that their customer support is top-notch because this system will be the lifeblood of your hotel.

FAQ

How does a hotel management system work?

A hotel management system first receives reservations from the hotel’s website, booking channels, or manual entry. Then, the reservations are available for staff to manage in the system’s dashboard. Hotel management systems often offer integrations with complementary systems like payment processors and customer relationships management (CRM) systems to seamlessly leverage reservation data.

What systems do hotels use?

Hotels most often use a property management system to manage all reservations, check-ins, invoices, and guest profiles. In addition, hotels might use a booking engine to allow reservations to be booked on the hotel website, plus a channel manager to connect to third-party platforms, a revenue management system, and customer relationship management system, and more.

What is the main purpose of hotel management?

The purpose of hotel management is to coordinate all operations of a hotel, from the front desk and housekeeping to food and beverage and finance. Hotel managers are often also responsible for marketing the hotel, complying with local regulations, and hiring and training employees. In addition, the hotel manager will respond to guest complaints and solve any problems that arise.

What is the highest position in a hotel?

The most senior position in a hotel is the general manager. General managers are like the CEO of a hotel; they are responsible for coordination between all departments, hiring employees, solving problems, and ensuring that the hotel meets its goals. Department directors typically report to the general manager (GM), and the GM reports to the hotel owners.

What skills do you need to be a hotel manager?

Hotel managers should have strong leadership, communication, and problem-solving skills. In addition, hotel managers will benefit from marketing skills, budgeting and financial acumen, a high degree of patience, a strong work ethic, and even foreign language proficiency. Experience in the hotel industry is helpful, though it’s not a requirement.

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