Hotel management software is accommodating market demand by becoming an all-in-one hospitality solution. With software providers shifting functionality to include revenue and budgeting capabilities and features in this software, let’s look at the changes in the evolving world of hotel software.
Demand for innovation in hotel software
Hospitality has proven resilient in responding to the current post-pandemic environment and economic challenges. One key factor of this durability was the industry’s decision to turn to enhanced technology (i.e., channel management, hotel management, and hotel revenue management systems).
This dependency on reliable hotel software is creating a demand for developers to be innovative and create tech-native environments. This includes the cross functionality between property and revenue management systems, which helps these tech environments flourish.
Hotel Management Software vs. Hotel Revenue Management Systems (RMS)
Hotel management software helps hoteliers manage front office tasks and operations, from maintenance and guest services to sales and marketing. In contrast, hotel revenue management systems (RMS) utilize data analytics to help hoteliers maximize revenue and profitability. From a data standpoint, hotel management focuses on tracking and monitoring active data to fulfill hotel administrative activities, while RMS draws on historical and market data to improve revenue.
To adhere to the demand of the hospitality and tourism industry moving full steam ahead, developers are enhancing existing solutions so that hoteliers can handle all their needs.
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The focus falls on hybrid hospitality solutions
Within the past year, several hotel management software vendors have made updates or entered into partnerships with other hospitality solutions to better their software. For example, to assist in automation and dynamic pricing, Cloudbeds recently partnered with Atomize, Duetto, and PriceLabs, among others. Additionally, innRoad and Guesty have added new features such as automated payment processing and updating guest experience solutions to improve overall profitability.
The Venn diagram shows the overlap between the Hotel Management Software and the Hotel Revenue Management Systems (RMS) categories. Many of the products mentioned in the diagram are either Leaders or High Performers in their corresponding categories via the G2 Grid®. This illustrates how hotel management systems are shifting towards revenue functionally and appealing to a new software user demographic.
Currently, the Hotel Revenue Management Systems (RMS) category hosts 44 products, and 18 of them are also included in the Hotel Management category. Similarly, 35 products listed in the Channel Management Software category also qualified for the Hotel Management Software category. This shows a slow trend toward hybrid hospitality solutions, with several products in both categories.
Future of hotel management software
This is just the beginning of hotel management systems evolving into technical solutions all hospitality businesses will utilize for their property.
This is vital to fulfilling market presence as the leisure and hospitality industry is projected to add over 1.9 million jobs by 2031. This increase in labor means many hospitality groups and hoteliers will be focusing on providing their teams with efficient software, as well as a tool where they can gain insights into market data.
A new species of hybrid hotel management software is rising, and G2 will continue to watch, ensuring these solutions are appropriately represented.
Edited by Shanti S Nair
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JaKayla D. Lathon
JaKayla is a Market Research Analyst at G2 specializing in real estate, education, and hospitality. Prior to joining G2, she worked in research and financial analysis in the private sector of Chicago, IL. JaKayla's result-driven nature helps her to combine G2's user data with the understanding of products and services in the market. In her free time, she enjoys traveling, gastronomy, and advocating for rescue dogs.
