The Global Hotel Management Software market size was valued at USD 7.35 Billion in 2019 and is anticipated to grow at a CAGR of 25.9% during the forecast period. Hotel management software can be defined as software that aid in the overall streamlining of the overall hotel operations. They can be deployed in a variety of institutions such 3-star, 4-star, 5- star and even other economy hotels as well.
These software essentially combine all the beneficial aspects of traditional systems such as Point of Sale (POS) systems, with advanced tools which enable to optimize day to day business functions such as phone calls, table reservation, billing, inventory management, resource management, taking orders, managing room bookings, itinerary management etc. These also aid in providing comprehensive analytics quintessential to assess the current health of the business and aid in essential activities such as building online presence, generating loyalty programs and CRM. Such trends are proving beneficial for the growth of the hotel management software market.
Know more about this report: request for sample pages
These software provide advantages such as ease in auditing due to integrated accounts module, uniform pricing of items at multiple branches by controlling them from the headquarters, maintaining same quality of attributes at all branches by providing instructions from headquarters, inventory and purchase management as well as efficient planning and stocking based on analysis of best seller products, comparing business performance as well as receiving real time analytics, etc. Such advantages have resulted in an increased market penetration across the globe.
Hotel management systems essentially help owners and managers to handle their workload effectively. This frees up enough time for these users which can then be utilized to concentrate on more important parameters such as improving customer experience, chalking out marketing plans, and creativity. These aforementioned factors are critical success factors in the tourism industry. Thus, in an era of high industrial rivalry, hotel management software aid owners to concentrate more on critical success factors thus benefitting the overall market growth.
The market is primarily segmented on the basis of By Industry, By Deployment, By Type, and geographic region.
Know more about this report: request for sample pages
Hotel Operation Management System market segment is expected to witness robust growth over the forecast period. The market segment enjoys the distinct advantage of being user friendly and can be used by employees with minimum training. In addition, companies selling these software provide service wherever needed. These software applications have special focus on scalability, design and ease of use and have the ability to get customized. All these factors have resulted in wide adoption by hotels and thus has resulted in the segment enjoying high penetration and robust growth over the forecast period.
These software are particularly important as they provide accurate and real time financial position of a business thus enabling users to take corrective action if necessary. Some of the systems also provide a comprehensive analysis of the impact of business decisions that may have on the current cashflow of the business. All these factors have resulted in a rise in demand for the market segment.
Corporate customers, especially demand hassle-free and prompt service due to strict time schedules. In such cases, it is imperative for the management software to deliver optimum performance at all times with little or no downtime. Companies have to tackle this issue so as to gain market share. Companies, therefore provide a single point of contact as well as accountability for all system related queries, errors or problems, and also provide instant troubleshooting services by providing proactive analysis, service management and remote monitoring. This has resulted in many corporate hotels opting for hotel management software.
On premise software provide inherent advantages such as greater freedom to customize, less or no downtime, high integration with add-on tools and PoS, as well as full system control. It also provides seamless integration so as to accommodate various devices such as barcode scanner, cash drawers, card readers, and other payment devices. As the entire system is located on premise, one can easily modify it as needed. These software are particularly useful for hotels which are located in remote tourist destinations.
Pay-as-you-go cloud based systems are one of the definitive current trends in the market. This model is especially being used by corporate hotels, and other local brands alike. It has been observed that the number of owners opting for this model for a period of zero to six months, and zero to twelve months is significantly higher than on premise model. However, as the subscription period increases, the demand shifts from cloud based to subscription based.
Europe emerged as the largest market in 2019 and the market is expected to continue its high market share throughout the forecast period. Hotels in the region are adopting new technologies such as hotel management systems to cater to the rising trend of customers seeking organized activities both on and off the property. Through these systems, hotels are catering to customer needs in a more customized, optimized and effective way. The whole system has been found out to save a lot of time and energy and hence there is a rising trend to adopt the same.
Asia Pacific is anticipated to witness highest growth rate from 2020 to 2026. Hotels in the region, through solid support from government organizations have showed high resilience to restraints in the past. However, hoteliers are remaining cautious of any impending threat to their businesses. Improved flight as well a cruise connectivity is also resulting in benefitting the overall regional market.
Corporate customers, especially during peak season demand hassle-free and prompt service due to strict time schedules. In such cases, it is imperative for the management software to deliver optimum performance at all times with little or no downtime. Companies have to tackle this issue so as to gain market share. Companies, therefore, provide a single point of contact as well as accountability for all system related queries, errors or problems, and also provide instant troubleshooting services by providing proactive analysis, service management and remote monitoring.
Some of the leading players in the market include Honeywell International, Inc., Winhotel Solution S.L., Buildingiq Inc., Oracle Corporation, Infor, Inc., NEC Corporation, IBM Corporation, Huawei Technologies Co. Ltd, Schneider Electric Se, Johnson Controls, Siemens AG and Honeywell International, Inc. With management systems holding the largest share of the budgets for hotel IT investments, the providers of these systems and solutions are seeking attention of prospective buyers, including resort and hotel operators. Along with hotel management solutions, the providers also deliver solutions that include Hotel PMS (Property Management System) with the help of which the hotel owners are able to serve fully integrated technology capabilities. Such activities have benefitted the overall hotel management software market growth in the past.