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The hotel and hospitality management software market size is estimated to grow at a CAGR of 6.59% between 2022 and 2027. The size of the market is forecast to increase by USD 1,176.2 million. The growth of the market depends on several factors, including the integration of new technology to lower expenses, increasing the demand for mobility, and growing the necessity of large-scale client management.
This market report extensively covers market segmentation by deployment (cloud-based and on-premise), application (business hotels, heritage and boutique hotels, and resorts and spas), and geography (Europe, Apac, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reduction in overall operational costs is major driving the hotel and hospitality management software market growth, although factors such as the complications in changeover from the traditional system may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Hotel and Hospitality Management Software Market Driver
The global hotel and hospitality management software market is being driven by the need to reduce overall operational costs. This is particularly important for small to mid-size hotels, as they seek to adopt new technologies to lower operational costs. A significant portion of hotel budgets, approximately 10%, is spent on strategies and solutions that help to maintain and retain regular customers. By implementing hotel and hospitality management software, hotels can increase efficiency by reducing the need for manual record-keeping.
Customer relationship management is critical in the hotel management industry, and hotel management software can help track data related to customers, which is essential for effective marketing campaigns to increase sales and retain customers. Automation increased productivity, and time and cost savings are the main drivers behind the adoption of hotel and hospitality management software. These drivers are expected to fuel market growth during the forecast period.
In today's market scenario, hotel and hospitality management software has become a critical part of the strategic factor. The primary objective is to cultivate and manage customer relationships, which is crucial for effective marketing campaigns to increase sales and retain customers. The growing demand for large-scale client management is leading to increased penetration of hotel and hospitality management software in the market. The software automates processes and saves time and money for more productive outcomes. The use of this software helps hotels improve customer experience and allows sales staff to follow up with customer demands more efficiently. The key benefits of using hotel and hospitality management software in large-scale management scenarios include increased connectivity, consistent follow-up with customers, and improved client management.
Key Hotel and Hospitality Management Software Market Trends
The rise in cloud integration will fuel the global hotel and hospitality management software market growth. The demand for cloud-based hotel and hospitality management systems is increasing. The cloud-based hotel and hospital management software offers access to the application via web-based browsers. The user can log in to the hotel and hospitality management software from any Internet-enabled computer or device simultaneously. Cloud-based hotel and hospitality management software helps users by giving them access to their mobile apps.
The cloud-based hotel and hospital management software provide high scalability. A cloud-based system is designed to be flexible with the expansion in capacity, which enables a business to scale up as per the current business. Generally, the cost of hotel and hospitality management software often depends upon the number of users and their requirements. The extensive use of such advanced technology is likely to drive the global hotel and hospitality management software market's growth during the forecast period.
Key Hotel and Hospitality Management Software Market Challenge
Complications in the changeover from a traditional system are a major challenge to the global hotel and hospitality management software market growth. Every business should launch new products and services to satisfy customer needs consistently. Therefore, it is important to track and analyze customer interactions in a systematic and organized way to convert potential leads for final sales. However, the adoption of advanced technology in the hotel and hospitality sector is leading to system integration and interoperability issues.
Three key challenges were faced during the transition from the traditional to the new management system; these include the Appointment of a dedicated team, the Implementation of processes, and Software management. Such factors are likely to affect the growth of the global hotel and hospitality management software market during the forecast period.
Key Hotel and Hospitality Management Software Market Customer Landscape
The hotel and hospitality management software market 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 growth strategies.
Global Hotel and Hospitality Management Software Market Customer Landscape
Vendors 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.
Ciirus - The company offers hotel and hospitality management software such as Ciirus Task Manager. Also, through this segment, the company offers a vacation rental management solution for reservation management, quotes, website management, marketing, and accounting.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the cloud-based segment will be significant during the forecast period. The cloud-based segment showed a gradual increase in market share from USD 1,279.23 million in 2017 and continued to grow by 2021 The increasing need to digitize core business processes is driving the demand for cloud-based solutions in the hotel and hospitality management software market. Hotel and hospitality managers are implementing cloud-based solutions to receive real-time information, integrate with other essential software, meet digitization demands, and provide efficient services that meet consumer expectations. The adoption of cloud-based models is expected to increase among small and medium-sized international hotel brands during the forecast period due to advantages such as scalability, agility, and easy integration.
For example, Linder Hotels, a German-based hotel chain, chose OPERA Cloud, a SaaS-based platform, for its Property Management Software (PMS) for all its locations in October 2022. Similarly, Milan Hotel Group, based in Asheville, US, selected SalesandCatering.com's STS Cloud as its preferred sales solution in the same month. These developments are expected to drive market growth during the forecast period.
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The dominance of the on-premises model in the market is due to its security compared to SaaS-based solutions. The need for operational efficiency, cost reduction, and compliance standards has driven the demand for digitization of operations. As digitization trends continue to encourage vendors to develop and deliver SaaS-based hotel and hospitality management software, the adoption of cloud-based solutions is growing. Small and medium-sized businesses prefer SaaS-based solutions due to their cost-effectiveness, while larger hotel chains are also shifting to cloud-based solutions for their agility and seamless data integration across multiple locations. During the forecast period, cloud-based software solutions are expected to continue growing and pose a challenge to the on-premises solutions segment.
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Europe is projected to contribute 34% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in Europe faced slow growth in 2020 due to stagnation across local economies, which were mainly affected by the recession and the outbreak of COVID-19. However, the market is likely to thrive during the forecast period. The region will continue to be the largest shareholder in the global hotel and hospitality management software market.
Europe consists of some of the world's most popular tourist destinations, such as France, Spain, Italy, the UK, and Germany, as well as rapidly emerging economies. These factors are driving the hotel and hospitality management software market in Europe. In July 2021, Amadeus IT Group SA partnered with Shiji Group, one of China's leading hotel information systems players, to provide new content from Chinese hotels and chains to the Amadeus Travel Platform. This partnership will enable travel agents across the Amadeus distribution network to access Shiji's hotel accommodation options and provide agents with new hospitality content that is not made available yet on other global distribution systems.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by type, product, distribution channel, and region.
Hotel and Hospitality Management Software Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.59% |
Market growth 2023-2027 |
USD 1,176.2 million |
Market structure |
Fragmented |
YoY growth (%) |
5.78 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
Europe at 34% |
Key countries |
US, China, France, Spain, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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.com Inc., Schneider Electric SE, Siemens AG, SkyTouch Solutions LLC, StayNTouch Inc., and Workday Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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