Hotel Property Management Software Market Outlook 2031
The global hotel property management software market size was USD 6.50 Billion in 2022 and is likely to reach USD 16.4 Billion by 2031, expanding at a CAGR of 10.8% during 2023–2031. The market is driven by the growth of the hoteling and hospitality industry and the rise of digitization in these sectors.
Growing adoption of digital tools in the hospitality industry is one of the key propellers of the market. The large-scale growth of hoteling, tourism, and other hospitality aspects in the recent years is expected to generate major opportunities in the market. Rising support from various governments worldwide to strengthen the hospitality sector is another factor boosting the entry of new players in the industry thereby, driving the market.
Rising income levels and growing urbanization are surging the demand for commercial real estate such as hotels & restaurants to meet the increasing consumer demands. These aspects are projected to drive the adoption of hotel property management software, thus fueling the market.
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According to a survey published in August 2023, the valuation of the global hospitality industry reached close to USD 4.7 trillion. It is projected to reach USD 5.8 trillion, with a CAGR of 5.5% between 2023 and 2027.
The research report finds that the COVID-19 pandemic affected the hotel property management software market. Nearly every establishment in the hoteling industry observed a substantial decline in footfalls, owing to lockdowns and infection fears. Numerous hotel properties halted their operations, while many operated with limited capabilities.
The adoption of digital technology has become a huge trend in the sector, as people are required to keep a safe distance from one another, to avoid infection. Post the normalization of the pandemic, the utilization of different hotel management tools is on the rise, owing to the rising awareness of its manyfold benefits. The market is expected to grow at a healthy pace, with a rising preference for digital bookings.
Impact of Artificial Intelligence (AI) on Hotel Property Management Software Market
Advances in AI are likely to fuel the market during the projection period. This technology offers several benefits to the digital solutions of the hospitality industry, including management of check-ins, reservation automation, and handling of guest requests. The automation of routine tasks with AI is likely to enhance customer experience by streamlining various customer needs and quickly & efficiently fulfilling their demands.
This can further enable diverting hotel staff’s focus toward value-added activities and further enhancement of day-to-day operations. AI-powered hotel management tools are likely to improve the personalization of guest experience management, by providing unique recommendations based on selections and interests.
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In May 2023, Jurny, Inc., an innovative hospitality technology solution provider, rolled out its latest and most robust operating system, JurnyOS 2.0, driven by the ChatGPT 4. It features dynamic AI solutions, which are designed to optimize, automate, and connect operations and guest management tasks.
Hotel Property Management Software Market Dynamics
Key Trends
Rising focus on the personalization of guest experience is a major trend in the market. As a unique and experience-boosting strategy, several hotel establishments are utilizing digital tools to provide customers with specialized interest-based services. Such initiatives are aiding the hotels in improving customer loyalty brand thereby, generating positive reviews and word of mouth.
Customer feedback has become highly essential for hoteling brands to drive up their business. Digital property management tools are not only allowed to automate daily tasks but also, is enabling hotels to prioritize customer experience management.
Major Drivers
Rising acceptance of real estate property management software for streamlining operations is a key factor propelling the market. Digital platforms have significantly boosted the hospitality industry. With growing awareness about the benefits offered by software to business growth, their demand is rising from small-scale to very large-scale hotels. This, in turn, is expected to fuel the market in the coming years.
Growing preference for online bookings among customers is fueling the market. Individuals are increasingly interacting with hotels using their smartphones, on various websites and mobile application platforms. To provide up-to-date information to customers and internal staff about the availability of rooms, services, personnel, and other aspects, the property management tools are proving to be efficient.
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According to the statistics published by the European Commission’s Eurostat in June 2023, above 547 million night bookings were made through collaborative economy platforms (such as Airbnb, TripAdvisor, and booking), at short-stay accommodations in 2022. Of these, the most preferred destination was Paris for a night stay.
Existing Restraints
Data privacy concerns and complexities in integrating software with existing digital systems are likely to hinder the market. The data related to hotel property and customers is sensitive. If it falls into hackers' hands, it can have a significant impact on the hotel’s reputation and customer’s trust. The incidences of cybercrimes have gone up in the recent years, which can affect the adoption of digital tools in the hotel industry.
Furthermore, in several cases, integrating the property management software with existing digital infrastructure at hotels can pose significant challenges, regarding flexibility, accessibility, and security. This, as a result, can restrict hotel property owners from adopting the software.
Emerging Opportunities
Rising investment in commercial real-estate spaces especially in hotels and resorts is likely to propel opportunities in the market. Growing income levels and lifestyle changes are boosting the hospitality industry including tourism, hoteling, and restaurants. Along with this, the ease of access and convenience created by online booking applications and websites has further propelled the growth of the hotel industry.
Rising customer footfalls and growing demand for quality services and experience are driving the adoption of hotel property management software. Furthermore, increasing integration of technology advances such as AI, Internet of Things (IoT), and Machine Learning with existing software is expected to widen opportunities in the market.
Scope of The Hotel Property Management Software Market Report
The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Hotel Property Management Software Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Function (Channel Management, Restaurant POS, Booking Engine, Revenue Management, Room Reservation, Property Inspection, Property Accounting, and Lease Management), Deployment (On-premise and Cloud), Type (Hotels & Resorts [Small Hotels, Medium Hotels, Large Hotels, Very Large Hotels, and Chain Hotel], Homestay Accommodation, Motels & Lodges, Mobile Home Parks, Parks & Campground, Marina, Serviced Apartments, and Lifestyle Villages), and End-user (Business Hotel, Boutique Hotel, Resorts & Spas, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Agilysys NV LLC.; ASSD; Cloudbeds; FCS Computer Systems; Hoteliga; IDS Next; Infor; Johnson Controls; Maestro PMS; Mews Systems; Oracle Corporation; Protel; RealPage Inc.; Salesforce, Inc.; SKYTOUCH Solutions; and WebRezPro PMS.
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Hotel Property Management Software Market Segment Insights
Function Analysis
Based on function, the hotel property management software market is divided into channel management, restaurant POS, booking engine, revenue management, room reservation, property inspection, property accounting, and lease management. The room reservation segment is hold a key share of the market, in terms of demand, owing to a growing customer inclination toward online booking of preferred rooms with mobile check-in applications and websites. The software is effective in displaying room availability status and currently available offers on bookings.
Hotel property management software is designed to be convenient for staff usage, making access to booking and related data effortlessly available. The software eliminates manual tasks thereby, leaving no room for errors, which benefits in streamlining guest experience management. Based on the data, the software can further automate applications with AI features, allowing dynamic pricing of reservations based on demand.
The property accounting segment is expected to expand at a significant growth rate during the projection period. The segment is driven by rising dependence on technology tools for managing the financial aspects of the hotel business. The growth of mobile wallets and other online transaction mediums has created the need to manage cash inflows and outflows through digital accounting tools. The property accounting enables businesses to estimate overall profits or losses on reservations
Deployment Analysis
On the basis of deployment, the global market is bifurcated into on-premise and cloud. The cloud segment is projected to expand at a substantial CAGR during the forecast period, owing to several benefits enabled by cloud hotel property management software, including cost efficiency, scalability, and flexibility. Small- and medium-scale hotel businesses are widely adopting cloud solutions, as it is easy to implement and are on a subscription basis.
The widening popularity of cloud-based HPMS, various companies in the market are launching innovative new solutions, to enable seamless experience to users and drive up their productivity. The on-premise segment is anticipated to witness significant growth in demand, owing to the preference of large-scale luxury hotel businesses for in-house solutions.
The concerns about data breaches and the rise of cybersecurity have diverted many hotel businesses in creating their own HPMS for on-premise installation. It can be a costly and time-consuming factor; however, concerns over data falling into hackers' hands are significantly lesser, with unique security mechanism.
Type Analysis
On the basis of type, the hotel property management software market is segmented into hotels & resorts, homestay accommodation, motels & lodges, mobile home parks, parks & campground, marina, serviced apartments, and lifestyle villages. The hotels & resorts segment is subdivided into small hotels, medium hotels, large hotels, very large hotels, and chain hotel.
The hotels & resorts segment is expected to register a robust growth during the forecast period, owing to increasing footfalls in these establishments with rising income levels and lifestyle changes. Rising investments in hotels & resorts and the expansion of existing hotel chain operations have driven the demand for hotel property management software. Additionally, the expansion of the tourism industry and the digitization of hotel/resort booking are expected to boost the segment.
End-user Analysis
On the basis of end-user, the global market is segregated into business hotel, boutique hotel, resorts & spas, and others. The boutique hotel segment held a key share of the market revenue in 2022 and is projected to register a robust CAGR during the forecast period. The segment is driven by the personalization and guest experience improvement benefits enabled by the HPMS for boutique hotel businesses.
Based on the data available about the customer, a boutique hotel can provide a tailored experience. Features such as AI can even suggest unique rooms, facilities, and menus based on customer’s interests. Furthermore, administrative tasks such as billing, check-ins and check-outs, room allocation, and inventory management, can be automated with the use of HPMS solutions.
Regional Outlook
In terms of region, the global hotel property management software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the assessment period, owing to the growing adoption of advanced technology in the hospitality sector. The presence of several players from the market in this region, especially in the US, is likely to benefit the regional market.
Expansion of the hospitality industry with the rise of tourism, commercialization, and urbanization is anticipated to further generate opportunities in the market. Growing acceptance of advanced gadgets and software, to improve services and less manual handling, is expected to support the market in this region.
The market in Asia Pacific is projected to witness a rapid growth in the coming years, with rising investments in the hotel industry. Growing adoption of cloud solutions for hotel property management from hotel businesses is expected to fuel the revenue generation in the market.
Increasing disposable income, the rise of the tourism industry, and changes in lifestyle in emerging economies such as India, China, South Korea, and Japan are driving the growth of the hotel industry in this region. Rising awareness of technology and the adoption of mobile applications and websites, as marketing and sales strategies are likely to boost opportunities in the regional market.
Segments
The global Hotel Property Management Software Market has been segmented on the basis of
Function
- Channel Management
- Restaurant POS
- Booking Engine
- Revenue Management
- Room Reservation
- Property Inspection
- Property Accounting
- Lease Management
Deployment
Type
- Hotels & Resorts
- Small Hotels
- Medium Hotels
- Large Hotels
- Very Large Hotels
- Chain Hotel
- Homestay Accommodation
- Motels & Lodges
- Mobile Home Parks
- Parks & Campground
- Marina
- Serviced Apartments
- Lifestyle Villages
End User
- Business Hotel
- Boutique Hotel
- Resorts & Spas
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Agilysys NV LLC.
- ASSD
- Cloudbeds
- FCS Computer Systems
- Hoteliga
- IDS Next
- Infor
- Johnson Controls
- Maestro PMS
- Mews Systems
- Oracle Corporation
- Protel
- RealPage Inc.
- Salesforce, Inc.
- SKYTOUCH Solutions
- WebRezPro PMS
Competitive Landscape
Key players competing in the hotel property management software market are Agilysys NV LLC.; ASSD; Cloudbeds; FCS Computer Systems; Hoteliga; IDS Next; Infor; Johnson Controls; Maestro PMS; Mews Systems; Oracle Corporation; Protel; RealPage Inc.; Salesforce, Inc.; SKYTOUCH Solutions; and WebRezPro PMS.
These companies have adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. The competitive landscape covers key insights into growth strategies adopted by major market players.
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In May 2023, Canary Technologies, a major solution provider of guest management systems to the hospitality industry announced its integration with Maestro PMS. It is intended to provide hotel industry players with technology that meets evolving guest needs and challenges in operations.
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In November 2021, Cloudbeds, a San Diego, the US-based hospitality software startup, attained USD 150 million investments from SoftBank Vision Fund 2. The company was established in 2012 and offers a software tools suite for lodging businesses of all types.
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