Hotel Management Systems Market Size, Share, Growth, and Industry Analysis, By Type (On-premises and Cloud-based), By Application (SMEs and Large Enterprise) and Regional Insights and Forecast to 2031

Updated On: 29 April 2024

HOTEL MANAGEMENT SYSTEMS MARKET REPORT OVERVIEW

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The global hotel management systems market size was USD 19480 million in 2021 and will touch USD 34020 million by 2028, exhibiting a CAGR of 8.1% during the forecast period.

Hotel management systems play a major role in operations such as hotels, motels, resorts, bed & breakfast houses, condos, and RV parks. The management systems take care of various important tasks such as booking, employee scheduling, accounting, property maintenance, and customer relationship management. The hotel management system is an online procedure system that integrates hotel operations. It is a hotel management system that does a job of coordinating day-to-day activities such as reservations, billing, housekeeping, and reporting. It helps to simplify procedures, improves customer experience and provides seamless operations across departments which in turn contribute greatly towards the overall efficiency and prosperity of the establishment.

The HMS is multifunctional systems that allows for the automation and optimization of different processes and departments. The core functions include the management of booking systems, room inventory, pricing strategies, payment processing, and marketing campaigns. Besides, it is a very important tool in increasing engagement with guests by providing personal services and effective communication channels. Additionally, it is also used to simplify housekeeping staff help to carry out the crucial internal processes such as reception, check-in, billing, and reporting, and provides insights using the analytics and reporting tools and maintaining high standards of service quality.

COVID-19 Impact: Pandemic reshaped the market driving the adoption of technological solutions for guest safety

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The pandemic brought major changes to the hotel industry and these changes also affected the hotel management systems market by nature. The crisis sparked an increase in technological solutions as the hotels had to respond to changing guest needs and efficient safety practices. These innovations included contactless technologies, virtual check-in systems, and enhanced communication tools that became essential components within the hotel management systems. These developments played a pivotal role in customer satisfaction while maximizing efficiency at the same time. Therefore, the pandemic caused the emergence of a digital revolution in the hospitality business and altered the landscape of hotel management systems solutions.

LATEST TRENDS

"Rising integration of mobile apps to provide guests with convenience to improve the market"

Hotel management systems are now rapidly adapting mobile app integration to enhance guest experience, personalization, and communication with hotel staff. This allows hoteliers to offer a better guest experience and also allows them to learn the guests' preferences, revenue streams and operational effectiveness. The use of mobile apps enables the hotels to provide a plethora of services including room bookings, dining reservations, and concierge assistance right in the palms of the hands of guests. Moreover, such apps help hotels collect data on guest behaviour and taste, which in the end helps them to identify the current trends and adjust their offers and marketing campaigns. Overall, the integration of mobile apps into the hotel management systems marks a turning point for the hotel industry as it brings a boost in guest satisfaction, optimization of operations, and revenue growth.

HOTEL MANAGEMENT SYSTEMS MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into On-premises and Cloud-based.

• On-Premises: Unlike modern cloud-based hotel management systems which are web-based, traditional on-premises hotel management systems are desktop applications which are physically installed on the property. These are controlled and operated by onsite personnel, thus making major capital expenditure on hardware and infrastructures required. While this technology offers a higher level of control it is expensive to scale and comparatively inflexible to cloud solutions. Hoteliers are responsible for ensuring data security, data backups, and systems updates which pose challenges in terms of mobility and real-time access to data.

• Cloud-Based: Cloud-based hospitality management systems are online and can be accessed from anywhere that has an internet connection. They eliminate the need for upfront hardware investments, provide scaling of the hotels as they expand and make the boarding of new team members easier. These systems allow users to receive real-time notifications, improve security and automatically upgrade the systems throughout the OS.

By Application

Based on application the global market can be categorized into SMEs and Large Enterprise.

• SMEs: Small and Medium-sized Enterprises (SMEs) in the hotel industry often choose cost-effective management systems tailored to their needs. These systems offer essential features such as reservation management, billing, and guest communication. SMEs benefit from scalability, allowing growth in their business. Focused on user-friendly interfaces, these systems enhance efficiency and guest satisfaction. By leveraging technology, SMEs can boost competitiveness, optimize revenue, and deliver personalized guest experiences.

• Large Enterprises: Large enterprises in the hotel industry require robust management systems for complex operations across multiple properties. These systems offer centralized reservation management, revenue management, analytics, and integration with other enterprise systems. Prioritizing scalability and customization, they meet diverse needs. Comprehensive reporting and data analytics tools enable informed decisions and strategic growth. By implementing sophisticated systems, enterprises streamline operations, optimize revenue, and deliver consistent guest experiences.

DRIVING FACTORS

"Emergence of an online booking trend would boost the market"

With the rise in the number of OTAs (Online Travel Agencies) and direct online bookings, global hotel management systems market growth is witnessing a great deal of demand among customers. Hotel management systems functions as a centralized system for making reservations across multiple channels and provides real-time availability yielding to avoiding the risk of overbooking. This trend highlights the growing need for accommodations allowing for easy integration of efficient digital solutions that can streamline bookings from different online sources. This type of systems not only improves the efficiency of the operations but also provides useful information that helps in better serving the guests about room availability. The significant role that is played by online platforms for bookings in the hospitality business robust the nature of reservation management systems that becomes paramount in guaranteeing optimal occupancy rates and maximal revenue potential. So the hoteliers adapt the systems solutions to handle the progressive online booking environment and utilize the growing trends.

"Hoteliers are adopting the systems to increase market expansion"

Hotel operators nowadays resort to systems solutions to automate operations, reduce manual errors and increase overall productivity. These technological tools free up staff from monotonous jobs, enabling them to focus on providing customers with top-notch services. With the use of such systems, hoteliers plan to increase their efficiency in their day-to-day operations and, thus, guarantee smoother processes and higher output. The integration of these solutions does away with the tedious manual processes, such as manual data entry or paperwork, leaving the staff to focus on addressing other issues of interest to the client. As a result, by leveraging their employees, hotels can concentrate on those areas that require human touch and leave the repetitive tasks to the systems that are well designed to execute them efficiently. The systems focuses more on operational efficiency, which not only adds to the good quality of the guest experience but also helps to establish the hotel’s reputation for delivering professional and excellent service.

RESTRAINING FACTORS

"Growing cyber security threats pose a challenge to the market"

Hotel management systems faces data security issues because of handling sensitive guest information such as personal data and payment details. Although the cyber landscape of security threats is increasingly becoming a problem, protecting this data becomes big challenges which necessitate stringent security protocols and adherence to data protection regulations. The increasing number of cyber threats emphasizes the necessity of implementing reliable security measures in hotel management systems. These measures are very important to protect guest data in the aspects of privacy, security and data availability so the risk of unauthorized access or data breaches can be reduced. In addition, the hospitality industry must comply with data protection laws and regulations to keep the privacy of guests and earn the trust of the industry. As hotels pay more attention to data security, having a strong cyber security solution is becoming one of the most important issues to protect confidential data and maintain the hotel’s reputation.

HOTEL MANAGEMENT SYSTEMS MARKET REGIONAL INSIGHTS

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"North America leads the market due to the presence of big hotel chains and the use of technology adoption "

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

In the global hotel management systems market share, North America emerged as the dominant player, empowered by the presence of the major hotel chains and the willingness to embrace technological trends. The region's primary focus lies on improving guest interactions with the help of innovative systems products. This dominant position in the market is predominantly a result of the advanced infrastructure and technology-driven trend present in North America that allows easy integration of hotel management systems with the hospitality industry. The North American market is based on the continuous evolution and adaptation to the needs and wishes of the guests that trigger innovation and define efficiency in customer service. Thus, the players in this region will find themselves able to take advantage of the emerging systems technologies to improve the service quality and maintain their edge in the marketplace.

KEY INDUSTRY PLAYERS

"Key industry players in the market forging strategic collaborations with OTAs and metasearch engines for market growth"

Key industry players are in active partnership with online travel agencies (OTAs) and metasearch engines to boost their online presence, extend distribution networks, and increase bookings. These partnerships indeed show that the collaboration of industry players with OTAs and metasearch engines is a primary focus in the hospitality sector. The goal of the industry players is to get maximum exposure for their client’s properties on these platforms and also increase the probability of booking the property by potential guests through high visibility. Additionally, this kind of cooperation smooths the process of systems integration and software systems working in conjunction with different booking platforms, making it easy to book a hotel for both the hoteliers and travellers. In general, these strategic alliances lead to a more holistic and efficient distribution strategy allowing the hotels to maximize their revenue opportunities and identify the huge online marketplace for accommodations.

List of Market Players Profiled

• Cisco Systems (U.S.)
• Oracle (U.S.)
• Sabre (U.S.)
• Salesforce (U.S.)
• Cloudbeds (U.S.)
• Skyware (U.S.)
• HotelKey PMS (U.S.)
• Innkeeper's (U.S.)
• ResNexus (U.S.)
• ALICE (U.S.)
• roomMaster (U.S.)
• innRoad (U.S.)
• WebRezPro (Canada)
• RoomKeyPMS (Canada)
• Maestro PMS (Canada)
• Hotello (Canada)
• Sirvoy (Ireland)
• Amadeus IT Group (Spain)
• Lodify (Spain)
• eZee Absolute (India)
• RMS (Australia)
• Little Hotelier (Australia)
• SiteMinder (Australia)
• CabinKey (New Zealand)

INDUSTRIAL DEVELOPMENT

February 2024: Integration of POS systems with hotel management systems enhances guest experiences by streamlining operations and providing personalized services. Automatic data synchronization minimizes errors, while real-time reporting aids in strategic decision-making. Centralized management allows better control across hotel departments. Loyalty programs integrated with POS systems increase guest retention, while advanced analytics provide valuable insights for informed decision-making and personalized guest experiences.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.