Choosing the Best Hotel Property Management Systems: Top PMS Software Compared

Selecting the right hotel Property Management Software (hotel PMS) is crucial for the seamless operation of any hotel. The right software can significantly enhance efficiency, improve guest satisfaction, and boost revenue. With various options available in the market, understanding the differences and making an informed choice on your PMS systems can be challenging.

This article aims to guide you through the process of selecting the perfect Property Management Software (hotel PMS) by explaining the different types of hotel software, their key functionalities, popular systems, and factors to consider.

What are the two types of hotel software?

Many hotel business owners, from large chains to independent hotels, often assume that Hotel Management Systems (HMS) and Hotel Property Management Systems (Hotel PMS) are the same. However, they serve distinct purposes and offer different functionalities. Understanding the differences between HMS and PMS is crucial for making an informed decision about which system is best suited for your hotel's needs. This knowledge will help you select the right software to streamline operations, enhance guest experiences, and optimize overall efficiency.

a. Hotel Management System (HMS)

A Hotel Management System (HMS) is a comprehensive software suite designed to manage all aspects of hotel operations. It includes modules for reservations, front desk operations, housekeeping, maintenance, accounting, and reporting. An HMS integrates various functions to provide a holistic solution for managing a hotel. HMS solutions typically offer an all-in-one package that may also include a booking engine and channel manager, making them ideal for smaller properties with limited staff and budget, requiring simplicity and consolidation.

An example of an HMS is Hotelogix. Hotelogix is a robust, cloud-based hotel management system designed to streamline hotel operations. It offers features such as reservation management, front desk operations, housekeeping, and reporting, making it ideal for managing multi-property operations effortlessly. Hotelogix user-friendly interface and comprehensive functionality help hotels improve efficiency and enhance guest experiences.

Discover how innovations in the hospitality industry, from smart technology to AI-driven automation, are transforming guest experiences in this article How Innovations in Hospitality Industry Are Reshaping Guest Experience

b. Hotel Property Management System (Hotel PMS)

A hotel Property Management System (Hotel PMS) is a core software application used to manage the day-to-day operations of a hotel. It focuses on reservations, front desk operations, check-ins and check-outs, room assignments, billing, and guest profiles. While an HMS covers a broader scope, a hotel PMS is more specialized in managing property-related tasks. hotel PMS solutions can be standalone systems that integrate with other software, or part of a bundled all-in-one HMS. They are typically preferred by larger hotels and properties with more complex needs, allowing them to select best-of-breed solutions for different functions.

What is the difference between HMS and hotel PMS?

Hotel Management System and Property Management System serve distinct but overlapping roles in hotel management. HMS is an all-encompassing system that integrates multiple functions beyond property management, including food and beverage management, event management, and marketing. Hotel PMS, on the other hand, is focused primarily on front desk and room management operations.

According to Hotel Tech, the differences between HMS and PMS include the scope of functionalities and the extent of integration with other systems. HMS offers a broader range of services, making it suitable for larger hotels with diverse needs. Hotel PMS is more streamlined and specialized, ideal for efficiently managing guest services and room inventory.

Here is a table summarizing the key differences between Hotel Management Systems (HMS) and Property Management Systems (PMS):

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To learn more about the basics of the best property management systems including reservation systems, front office task solutions, and payment gateways, read our article The Hospitality Tech Stack - An Overview of the Systems Hotels Really Need

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What hotel PMS do most hotels use?

To ensure you choose the best hotel PMS for your business, it's crucial to understand the different types of hotel PMS available and their unique benefits. Here's a breakdown of the various kinds of PMS and how they differ:

a. On-premise PMS

On-premise PMS is a traditional software solution installed directly on hotel servers. This setup offers unparalleled control and security, as the hotel owns and manages its data and infrastructure. One of the significant benefits of on-premise hotel PMS is its high customization level, enabling hotels to tailor the system to meet their specific operational needs. Hotels with unique processes or specialized requirements often prefer this type of system because it can be adapted to fit their exact workflow.

However, on-premise hotel PMS does come with its own set of challenges. It requires regular maintenance, updates, and a dedicated IT team to manage the infrastructure. The need for physical servers also means higher upfront costs and ongoing expenses for hardware and energy. Despite these challenges on on-prem property management solutions, many hotels choose on-premise hotel PMS systems for their robust data protection and the ability to operate independently of internet connectivity, ensuring continuous operation even in the event of network issues.

b. Cloud-based PMS

Cloud-based PMS is hosted on remote servers and accessed via the Internet, offering a modern and flexible solution for hotel management. This type of hotel PMS system provides significant advantages in terms of scalability and accessibility, allowing hotels to easily expand their operations and access the system from anywhere with an internet connection. The automatic updates and maintenance handled by the service provider reduce IT overhead, freeing up resources for other critical areas of the business such as housekeeping, front desk, and guest check-in tasks.

The flexibility of cloud-based hotel PMS also means that it can seamlessly integrate with other systems, such as online travel agencies (OTAs), customer relationship management (CRM) tools, and accounting software. According to Statista, 33% of businesses believe that most of their IT environment, including their PMS, will be cloud-based. This shift towards cloud hotel pms systems reflects the growing need for agile, scalable, and cost-effective management systems that can adapt to the rapidly changing landscape of the hospitality industry.

c. Mobile PMS

Mobile PMS consists of apps or mobile-friendly interfaces that enable hotel staff to manage operations directly from their mobile devices. This mobility enhances operational efficiency by allowing front desk staff to perform tasks on the go, such as checking in guests, updating room statuses, and handling maintenance requests. Mobile property management software is particularly beneficial for improving guest services, as it enables staff to be more responsive and present throughout the property, enhancing the overall guest experience.

Additionally, mobile PMS systems support the increasing trend of integrating technology into everyday operations, aligning with the digital preferences of modern travelers. Numerous hotels also leverage online travel agencies (OTAs) as part of their PMS strategy, as recent surveys suggest that 65% of all direct bookings come from guests who found a property through an OTA. This integration ensures that hotels can manage bookings and guest interactions efficiently, leveraging the wide reach and convenience of OTAs while maintaining direct control over their operations through a mobile-friendly platform.

Popular Hotel PMS Systems: Pros and Cons

As mentioned, numerous property management systems are currently available online. However, not all of them can provide the PMS features you need for your business. To help you identify the best property management solution for your hotel business, we've compiled the pros and cons of each option:

a. Mews Property Management System

Mews is a modern, cloud-based hotel PMS designed to simplify hotel operations through automation and seamless integration with other hotel property management software.

• Pros:
  • User-friendly interface simplifies hotel operations for hoteliers
  • Robust reporting tools provide valuable performance insights for channel management, revenue management, and more.
  • Excellent customer support ensures prompt issue resolution.
  • Easy integration with other hotel software such as your central reservation system to enhance operational efficiency.
• Cons:
  • Higher costs may be a barrier for independent hotels and smaller properties.
  • Comprehensive property management system features can be overwhelming for independent hotels with simpler needs.

b. Cloudbeds Cloud-based PMS

Cloudbeds offers a comprehensive, cloud-based PMS for the hotel industry that integrates multiple functions into a single, easy-to-use system, providing flexibility and efficiency for hotel management.

• Pros:
  • Comprehensive features cover all aspects of hotel management.
  • Seamless integration with other systems such as central reservation systems, payment gateways, and office management solutions reduces the need for multiple software solutions.
  • Cloud-based property management system allows flexibility for remote access and management.
  • Excellent customer support helps navigate any challenges in revenue management, reservation systems, front desk services, and more.
• Cons:
  • Higher costs may not be feasible for smaller businesses in the hotel industry.
  • The steep learning curve in the property management system requires significant time and effort to master.

c. Apaleo Mobile Property Management Software

Apaleo is an open API PMS that allows easy integration with third-party applications, offering flexibility and scalability for modern and independent hotel operations.

• Pros:
  • Open API allows easy integration with a wide range of third-party applications including channel management, central reservation, and online booking systems.
  • Highly scalable, suitable for expansion or customization within the hotel industry.
  • Cost-effective with a competitive pricing structure, perfect for both independent hotels and hotel chains.
• Cons:
  • Fewer property management system features compared to larger competitors may limit functionality.
  • Relatively new in the market of property management systems, potentially less refined and reliable.

d. Oracle Hospitality Property Management System

Oracle Hospitality is a robust, enterprise-level PMS widely used by luxury hotels, known for its extensive features and high level of security.

• Pros:
  • Highly scalable, ideal for large and luxury hotels.
  • Extensive features cover all aspects of hotel management including revenue management, channel management, online booking features, and more.
  • Robust security measures protect sensitive data encompassing point of sale and hotel website guest info.
  • Widely used by luxury hotels, indicating reliability and performance across hotel chains.
• Cons:
  • The high price tag can be prohibitive for smaller independent hotels.
  • Complex implementation requires extensive training and significant time investment from hoteliers.

e. Little Hotelier Property Management system

Little Hotelier is a user-friendly, affordable PMS specifically designed for independent hotels such as B&Bs and inns, providing essential management features.

• Pros:
  • Affordable and user-friendly, designed for small properties.
  • Essential features cater to the needs of small hotels, B&Bs, and inns such as central online reservation, group booking management, and streamlined payment gateways.
  • Good customer support ensures smooth operation management.
• Cons:
  • Limited scalability may not suit independent hotels planning a significant expansion into hotel chains.
  • Fewer features compared to larger PMS solutions may restrict utility for diverse operational needs.

What are the factors to consider when choosing hotel property management software?

Now that you know the best hotel property management software available in the market today, it's time to identify which PMS is perfect for your hotel business:

• Scalability
  • Ensure the property management system is capable of scaling with your hotel business needs, accommodating additional properties and increasing operational demands over time.
  • Look for features like multi-property management, channel management, rerouting of overbookings, and flexible pricing models that can grow with your business expansion plans.
• Integration capabilities
  • Check the PMS's ability to integrate seamlessly with other essential systems such as Online Travel Agencies (OTAs), Revenue Management Software (e.g., QuickBooks), and Customer Relationship Management (CRM) tools (e.g., Salesforce).
  • APIs, hotel website integration, and middleware solutions should be robust to ensure smooth data flow and operational efficiency across different platforms.
• User interface and ease of use
  • Choose a hotel property management system that offers an intuitive and user-friendly interface for your hoteliers, reducing training time and minimizing errors during daily operations.
  • Property management system features like customizable dashboards, drag-and-drop functionality, and mobile compatibility can enhance usability and efficiency.
• Reporting and analytics
  • Opt for a PMS that provides comprehensive reporting and analytics capabilities, allowing you to track key performance metrics such as occupancy rates, RevPAR (Revenue per Available Room), and guest satisfaction scores.
  • Advanced PMS analytics tools should support data-driven decision-making, enabling you to identify trends, forecast demand, and optimize revenue strategies.
• Customer support and training
  • Evaluate the quality and responsiveness of customer support offered by the PMS provider, including the availability of 24/7 support, dedicated channel managers, and online resources.
  • Training programs and documentation should be robust, providing comprehensive guidance on property management system implementation, software maintenance management, updates, and troubleshooting to maximize operational efficiency and minimize downtime.

How much does a property management system cost?

The cost of property management software in 2024 varies significantly based on the scale of operations and specific feature requirements. For basic entry-level PMS for independent hotels, prices start around $50 per month, offering essential features such as listing management, task tracking, and e-signing capabilities. Mid-range PMS options such as Little Hotelier typically range from $100 to $250 per month, providing more advanced functionalities like integrated payments, screening tools, custom reporting, and mobile applications.

For larger enterprises requiring a comprehensive array of property management system features and extensive customizations, costs can exceed $500 per month. This includes numerous management features such as revenue management, channel management, central reservation management, point of sale integration, online booking management, payment processing, and more.

It's crucial for channel managers and hotel business owners to carefully assess their operational needs and budget constraints to choose a software solution that aligns with their requirements effectively.

Which software is used in five-star hotels?

Five-star hotels often prefer property management systems (PMS) that offer extensive features, scalability, and robust security. Luxury hotel properties typically choose software like Oracle Hospitality due to its ability to handle complex multi-property operations, provide high levels of customization, and offer comprehensive reporting tools. Oracle Hospitality is known for its advanced revenue management and channel management capabilities, making it a top choice among hoteliers in the luxury segment.

Which software is used in three-star hotels?

Three-star hotels typically look for cost-effective property management systems that offer essential functionalities without overwhelming complexity. Systems like Cloudbeds and Mews are popular choices among three-star hotels. Cloudbeds integrate multiple functions into a single, easy-to-use platform, which is ideal for hoteliers seeking a balance of features, ease of use, and affordability. Mews also stands out for its user-friendly interface and robust channel management tools, making it a practical solution for mid-range hotel properties.

Which software is used in independent hotels?

Independent and boutique hotels often require flexible and customizable property management systems. Little Hotelier and ThinkReservations are tailored for smaller properties, offering affordability, ease of use, and essential features without the need for extensive customization. Little Hotelier is particularly favored for its simplicity and cost-effectiveness, providing independent hoteliers with essential PMS functionalities and efficient channel management. ThinkReservations, on the other hand, offers robust revenue management and seamless integration with other hotel systems, making it a reliable choice for independent hotel businesses.

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Which software is the best property management system?

An effective property management system (PMS) should seamlessly integrate with online travel agents (OTAs), channel managers, and online reputation management (ORM) solutions. This integration ensures smooth operations across the front desk, reservation system, and point of sale, maximizing bookings and maintaining a positive online presence. Cloudbeds and Mews excel in these areas, offering robust integrations and comprehensive management tools that cater to the diverse needs of the hospitality industry.

Cloudbeds is renowned for its powerful channel manager and seamless integration capabilities, allowing hoteliers to manage reservations, guest check-ins, and online bookings efficiently. Its user-friendly interface and advanced PMS features make it an ideal choice for both small and mid-sized hotels. Similarly, Mews provides an intuitive reservation system and front desk management, ensuring smooth operations and enhanced guest experiences. Mews also excels in channel management, allowing hoteliers to maximize occupancy and revenue through effective distribution strategies.

In addition to core PMS functionalities, an effective property management system should also incorporate ORM solutions to boost online presence and drive sales generation. By integrating ORM tools, hoteliers can monitor and respond to guest reviews, manage their online reputation, and enhance their visibility on search engines and OTAs. This proactive approach to reputation management not only improves guest satisfaction but also attracts more bookings, ultimately driving revenue growth for the hotel.

Boost your reservations with a positive online reputation through MARA

Hotel property management systems help businesses streamline online reservations, maintenance management, payment processing, housekeeping monitoring, front desk automation, and more. With the rising competitiveness within the hospitality industry, it has become essential for independent hotels and hotel chains alike to use tech solutions for hotelier tasks.

The same can be said in online reputation management. Responding to online reviews can be a daunting task, but it doesn't have to be with our AI Review Assistant of MARA. This intuitive tool is designed to ease your Online Reputation Management process, making it more efficient, personalized, and time-saving. It offers the best and most personalized AI for responding to and analyzing your guest reviews.

Streamlined Review Inbox

One of the key features of this tool is the web-based Review Inbox. This Review Inbox can easily be accessed online, allowing hoteliers and channel managers alike to use it in parallel with your hotel PMS, back office management solution, front office tool, and more.

Your MARA Review Inbox makes responding to reviews as simple as hitting "Generate reply" and clicking "Send". The Review Inbox connects to multiple review sources, including Google, Booking.com, and Tripadvisor, giving you a panoramic view of all your reviews. And you can even configure review response automation: Why not allow MARA to automatically respond to simple reviews, like 5-star Google reviews with no text, ensuring you never miss a review? Daily notifications about new reviews keep you updated and in control.

Simplified Review Analytics

One of the features to look out for when finding the best property management system for your business is its ability to extract data. This is done by Little Hotelier, Cloudbeds, Hotelogix, Stayntouch, and more. A good ORM solution should also be able to extract valuable insights from hotel reviews.

To help you understand and analyze the multitude of reviews, the Review Assistant also incorporates Review Analytics. This provides actionable, easy-to-understand insights that are tailored exclusively to your business. With MARA, you can quickly get the gist of all your reviews without needing to read each one. The analysis is so detailed that you can find out about specific housekeeping and amenities issues like "slow online booking process","water in the pool is too cold" or "lack of vegan breakfast option”. These insights help optimize guest experience without requiring you to be a data expert.

Personalized AI Integration

MARA's AI isn't just about efficiency; it's about personalization too. The Brand Voice feature allows the AI to adapt to your tone, making sure your responses sound authentically you. Plus, with Smart Snippets, you can "teach" the AI how to respond to recurring praises or complaints. Your AI then incorporates this information into its responses, but always with different words, providing more personalized, relevant replies.

This review response assistant has quickly become a game-changer for over 2000 customers. Its promising capacity to elevate your overall rating, amplify response rates, glean insights from customer feedback, and economize both time and money, is the reason behind its growing popularity.

Final Thought

Selecting the ideal Property Management System (PMS) is a pivotal decision for hoteliers, influencing the efficiency, guest satisfaction, and revenue potential of their operations. In today's competitive hospitality industry, a robust PMS integrates seamlessly with essential tools such as online travel agents (OTAs), channel managers, and online reputation management systems. Systems like Cloudbeds, Little Hotelier, and Hotelogix exemplify excellence by providing comprehensive management tools, streamlined front desk operations, and effective reservation systems, all while ensuring robust channel management and online booking capabilities. Additionally, integrating Online Reputation Management (ORM) solutions is critical for hoteliers aiming to boost their online presence and drive sales. ORM tools help manage guest reviews, enhance visibility on search engines, and maintain a positive online image, ultimately leading to increased bookings and revenue. By prioritizing scalability, integration, user interface, reporting capabilities, and customer support, hoteliers can make an informed choice, ensuring their property management software meets their specific needs and propels their business toward success.

So, why hesitate to give our AI Review Assistant, MARA, a try? It's completely free for testing, doesn't require a credit card, and can be fully operational in less than five minutes.

This post is part of our hero content series on "The Future of Hotel Technology: Must-Have Tools and Solutions for Modern Hotels”.