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The hotel and hospitality management software market size is forecast to increase by USD 1.64 billion, at a CAGR of 7% between 2023 and 2028. The market is experiencing significant growth due to various driving factors. One of the primary drivers is the reduction in overall operational costs in hospitality businesses. By implementing advanced software solutions, hotels and hospitality businesses can automate various processes, streamline operations, and minimize manual labor, thereby reducing operational expenses. Another trend influencing the market is the rise in cloud integration in hotel and hospitality management systems. Cloud-based solutions offer flexibility, scalability, and easy access to data from anywhere, making them increasingly popular among businesses. However, the market also faces challenges, such as the complications in the changeover from traditional systems to modern software. The transition process can be time-consuming and costly, and requires extensive training and resources. Despite these challenges, the benefits of implementing hotel and hospitality management software, such as improved efficiency, enhanced guest experience, and increased revenue, make it a worthwhile investment for businesses in the industry.
Hotel management software has become an essential tool for the hospitality industry, enabling automation and streamlining of various operations. The software caters to different sectors, including guest houses and tourism services, offering features like reservations, housekeeping, and guest check-in/check-out. Hotel management systems have evolved, integrating property management systems and front office systems into electronic systems. Digital technologies, such as smartphones and tablets, have revolutionized the guest experience, with many hotels adopting cloud-based solutions for ease of access and real-time data. Tripadvisor and other online review platforms have increased the importance of providing excellent guest services. Housekeeping and maintenance are optimized through automated systems, ensuring efficient and consistent service delivery.
Hotel management software offers numerous benefits, including improved communication between hotel staff, enhanced guest engagement, and increased operational efficiency. The software's integration with digital technologies allows for contactless check-in/check-out and contact tracing, ensuring guest safety and convenience. Cloud-based solutions provide flexibility and scalability, making it an indispensable tool for hoteliers in today's dynamic hospitality landscape.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The cloud-based segment is estimated to witness significant growth during the forecast period. In the global hotel and hospitality management market, cloud-based hotel management software is gaining popularity due to its benefits, which include automation of various processes, improved guest experiences, and cost savings. This software streamlines operations in areas such as reservations, housekeeping, guest check-in/check-out, and property management. It caters to various types of accommodations, including serviced apartments, vacation rentals, gynecological devices, business hotels, resorts, and spas. The IT infrastructure of this software supports tourism services, enabling seamless integration with TripAdvisor, smartphones, and tablets. Cloud-based deployment offers flexibility and accessibility, allowing businesses to manage operations remotely and monitor them in real-time. Moreover, it eliminates the need for expensive hardware investments and maintenance, making it an affordable solution for businesses of all sizes.
The software's advanced features include a front office system, booking engine, digital services, virtual concierge, and business intelligence tools, such as machine learning and artificial intelligence, to enhance customer engagement and improve operational efficiency. However, challenges such as integration difficulties and the need for technically-skilled personnel and trade regulations may hinder market growth. The production analysis and import-export analysis of branded hotels and Oracle Hospitality are essential aspects of the hotel management systems market.
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The cloud-based segment was valued at USD 1.82 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The European region dominates the global hotel and hospitality management market due to the presence of popular tourist destinations like France, Spain, Italy, the UK, and Germany. Rapidly emerging economies in Central and Eastern Europe, such as Poland, Hungary, the Czech Republic, Romania, and Slovenia, offer significant growth opportunities. The tourism industries in these countries are thriving, driving the demand for advanced hotel management solutions. SaaS-based and on-premises software solutions cater to varying business needs. Booking engines and payment gateways ensure seamless operations and guest experience.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Reduction in overall operational costs in hospitality businesses is the key driver of the market. The market is experiencing significant growth due to the need for automation in the hospitality industry. This sector, comprising hotels, serviced apartments, guest houses, resorts and spas, restaurants, vacation rentals, and business hotels, seeks to enhance operational efficiency and maintain superior guest experiences. Hospitality management software streamlines various tasks and processes, including reservations, guest check-in/check-out, housekeeping, inventory control, and billing. By automating these operations, businesses can reduce labor costs, minimize errors, and optimize resource utilization. Furthermore, these systems offer valuable insights through analytics and reporting tools, enabling data-driven decisions for increased efficiency and profitability. Advanced features like a Property Management System, Front Office system, Booking Engine, Digital Services, Virtual concierge, and IT infrastructure integration cater to diverse business needs.
In addition, the integration of machine learning and artificial intelligence, as well as the availability of these software solutions on Smartphones and Tablets, further enhance the guest experience. However, challenges such as installation costs, integration difficulties, and trade regulations may hinder market growth. Branded hotels and Oracle Hospitality are major adopters of these systems to ensure customer engagement and adherence to high service standards.
The rise in cloud integration in hotel and hospitality management systems is the upcoming trend in the market. Hotel and hospitality management software is a crucial component of the IT infrastructure for businesses in the tourism industry, including hotels, guest houses, serviced apartments, resorts and spas, vacation rentals, business hotels, and gynecological devices. This software enables automation of various processes, such as reservations, housekeeping, guest check-in/check-out, and property management. The use of cloud-based systems has gained popularity due to their accessibility and scalability. These systems allow users to log in from any Internet-enabled device, including smartphones and tablets, providing convenience and mobility. The software also offers digital services like a booking engine, virtual concierge, and front office system.
Further, machine learning and artificial intelligence are increasingly being integrated to enhance customer engagement and streamline operations. However, the implementation of such systems may face challenges such as integration difficulties and the need for technically-skilled personnel. The hospitality industry's adoption of these electronic systems is driven by the need to provide a superior guest experience and comply with trade regulations. The software also facilitates import-export analysis, production analysis, and branded hotels' management. Oracle Hospitality is an example of a leading provider of hotel management systems. The software offers a range of solutions for various hospitality segments, including business hotels, boutique hotels, and resorts.
Complications in changeover from traditional system is a key challenge affecting the market growth. Hotel and hospitality businesses aim to meet customer demands effectively by introducing new offerings and analyzing customer interactions systematically. However, the integration of advanced technology in this sector, such as hotel management software, presents challenges. Three significant hurdles during the shift from conventional to modern management systems include the need for a dedicated team. A core group comprising top management, senior executives, IT, customer service, and end-users should be established to support the transition. This team will ensure a smooth implementation process, addressing concerns related to automation of reservations, housekeeping, guest check-in/check-out, and digital services like virtual concierge, booking engines, and front office systems.
Moreover, integration difficulties may arise due to the involvement of various IT infrastructure, tourism services, hotel management systems, business hotels, resorts, and spas, as well as gynecological devices, restaurants, vacation rentals, and serviced apartments. To overcome these challenges, businesses require technologically-skilled personnel and may need to consider trade regulations, import-export analysis, production analysis, and branded hotels like Oracle Hospitality. Machine learning and artificial intelligence can also help streamline operations and enhance the hotel experience for guests. Ultimately, the goal is to provide a seamless and engaging customer journey, leveraging smartphones and tablets for a more personalized and convenient experience.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amadeus IT Group SA - The company offers hotel and hospitality management software such as Amadeus central reservation system, which provides a single, central guest profile delivering innovative services and compelling upsell offers.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Hotel management software has become an essential component of the tourism industry, enabling automation and streamlining of various operations in hotels, guest houses, serviced apartments, resorts and spas, business hotels, and vacation rentals. The software caters to diverse functionalities such as reservations, housekeeping, guest check-in/check-out, and property management systems. Additionally, it supports front office systems, booking engines, digital services, virtual concierge, and integration with IT infrastructure, restaurants, and tourism services. The market for hotel management software is witnessing significant growth due to the increasing use of smartphones and tablets for booking and check-in, enhancing the hotel experience. Machine learning and artificial intelligence are being integrated to provide personalized services and improve customer engagement.
However, technically skilled personnel are required for installation and integration, which can increase installation costs. Hotel management systems are being adopted by branded hotels, boutique hotels, and even small properties. The software helps in analyzing import-export and production data, aiding in effective business operations. Trade regulations and compliance are crucial considerations in the hospitality industry, making it essential for hotel management software to adhere to these regulations. Oracle Hospitality is a leading provider of hospitality management solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7% |
Market Growth 2024-2028 |
USD 1.64 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.4 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 34% |
Key countries |
US, France, China, Spain, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
360 Mango Solutions Pvt. Ltd., Amadeus IT Group SA, Ciirus Inc., Cisco Systems Inc., Cloudbeds, Guestline Ltd., Honeywell International Inc., Infor Inc., Johnson Controls International Plc., Microsoft Corp., NEC Corp., Oracle Corp., Sabre Corp., Sage Group Plc, Salesforce Inc., Schneider Electric SE, Siemens AG, SkyTouch Solutions LLC, StayNTouch Inc., WebRezPro PMS, and Workday Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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