Hotel and Hospitality Management Software Market Analysis Europe, APAC, North America, Middle East and Africa, South America - US, China, France, Spain, UK - Size and Forecast 2024-2028

Hotel and Hospitality Management Software (HMS) Market Forecast 2024-2028 

The hotel and hospitality management software (HMS) market size is projected to increase by USD 1.27 billion, at a CAGR of 6.58% between 2023 and 2028. Market growth hinges on various factors, notably the drive to minimize operational expenses within the hospitality sector, the burgeoning need for efficient client solutions at scale, and the escalating demand for enhanced mobility services. These factors collectively contribute to reshaping the landscape of the hospitality industry, emphasizing cost-effectiveness, streamlined operations, and heightened mobility solutions. As businesses seek to optimize their operations and cater to the evolving needs of clients, investments in technologies facilitating seamless client managing and mobility solutions become increasingly pivotal for sustained growth and competitiveness in the market.

The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including 360 Mango Solutions Pvt. Ltd., Cisco Systems Inc., Cloudbeds, Guestline Ltd., Honeywell International Inc., Infor Inc., Johnson Controls, Microsoft Corp., NEC Corporation, Oracle Corp., Sabre Corp., Sage Group plc, Salesforce Inc., Schneider Electric SE, Siemens AG, SkyTouch Solutions LLC, StayNTouch Inc., WebRezPro PMS, and Workday Inc. . Additionally, Amadeus IT Group SA 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.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics 

The market is witnessing a significant shift driven by advancements in automation and digital technologies. These innovations streamline housekeeping, guest check-in/check-out, and other hospitality tasks, enhancing the hotel experience. From bed and breakfasts (B&Bs) to guest houses, properties are adopting hotel management systems and property management systems for efficient operations. Moreover, platforms like TripAdvisor bridge the gap between B2B (business to business) and B2C (business to customer) interactions, further boosting the tourism services sector. As electronic system and front office systems become integral, the hospitality and tourism sectors are embracing technological advancement to meet evolving guest expectations. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

Rising demand for mobility in the hospitality sector is the key factor driving the market. With the increasing prevalence of smartphones and tablets, guests and hotel staff alike expect seamless access to information and services from anywhere at any time. Mobility-focused hospitality management software enables hotels, resorts, and restaurants to meet these expectations by providing mobile applications and platforms that allow guests to book rooms, order room service, check in and check out, and access hotel amenities remotely.

Additionally, mobile-based management software empowers hotel staff to manage operations efficiently, whether they are on the move within the property or off-site, by providing access to real-time data, guest information, and communication tools. The flexibility and convenience offered by mobility-driven solutions not only enhance the guest experience but also improve operational efficiency, driving the adoption of hospitality management software across the globe. Therefore, the rising demand for mobility is expected to drive market growth during the forecast period.

Significant Market Trends

The rise in cloud integration is the primary trend shaping the market. The user can log into this hotel and hospitality management software simultaneously from any computer or device that is Internet-enabled. The cloud-based software provides users with mobile apps for easy access and mobility. The software also provides high scalability. A cloud-based system is designed to be flexible with the expanding capacity so a business can scale up based on the current business requirement. Generally, the cost of the hotel and hospitality management software is often based on the number of users and their requirements.

Further, the cloud-based hotel and hospitality management software is beneficial for small hotels that lack in-house IT expertise to deploy, manage, and upgrade the on-premises management application. With cloud-based hotel and hospitality management, the vendor is responsible for managing the software, providing timely updates across the system, and taking care of technical glitches. Thus, the extensive use of such advanced technology is likely to drive market growth during the forecast period.

Major Market Restrain

System integration and interoperability issues are the major challenges that affect the market expansion. The integration issues are solved during the development phase. Numerous hotels are facing integration problems while implementing hotel and hospitality management software. In this scenario, vendors must provide an integrated IT solution that can effortlessly be combined with the IT infrastructure of the hotel. Minor system glitches can also incur a considerable cost to the organization and reduce overall operational efficiency.

Additionally, interoperability and system integration issues generally arise during the upgrade of the IT system or while merging IT infrastructure resources. Also, the use of multiple new hotel and hospitality management systems with the traditional infrastructure can create system integration issues. Furthermore, many vendors are unable to provide customized solutions to individual organizations due to the high costs involved in customization. Consequently, integration issues are discouraging organizations from implementing such solutions during the forecast period.

Market Segmentation 

The market is evolving rapidly, driven by technological advancement. From bed and breakfasts (BandBs) to guest houses, establishments are integrating property management system and front office system for efficient operations. These solutions streamline housekeeping, guest check-in/check-out, and reservations, enhancing the overall hotel experience. Moreover, platforms like TripAdvisor facilitate B2B (business to business) and B2C (business to customer) interactions, reshaping the landscape of tourism services.

By Deployment

The market share by the cloud-based segment will be significant during the forecast period.  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.

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The cloud-based segment showed a gradual increase in market share of USD 1.43 billion in 2018. 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, 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.

By Application

In 2023, the business hotels segment dominated the global hotel and hospitality management software market. Located in city centers with convenient transport links, these hotels offer facilities like Wi-Fi and quick check-in/out procedures, ideal for corporate guests. Hotel management software streamlines operations, from reservations to administrative tasks, enhancing guest experiences and maximizing efficiency. Tailored functionalities cater to business-oriented establishments, driving growth in this segment of the market during the forecast period.

Regional Overview

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Europe is estimated to contribute 34% to the growth of the global market during the forecast period. 
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The Europe region will continue to be the largest shareholder in the global hotel and hospitality management market during the forecast period. Europe consists of some of the world's most visited countries, such as France, Spain, Italy, the UK, and Germany, as well as rapidly emerging economies.

Consequently, such factors are driving the hotel and hospitality management market in Europe. Central and Eastern European Countries (CEECs), such as Poland, Hungary, the Czech Republic, Romania, and Slovenia, provide growth potential to the vendors of hotel and hospitality management software. These are the fastest-growing economies in Europe. The flourishing tourism industries in these countries are contributing to the growth of the market despite the global financial crisis and the Eurozone crisis.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, 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 and trends strategies.

Global Market Customer Landscape

Market Companies

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.

• Ciirus Inc.: The company offers hotel and hospitality management software such as Ciirus Task Manager.

Market analysis and report of 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.

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028

• Deployment Outlook
  • Cloud-based
  • On-premise 

• Application Outlook
  • Business hotels
  • Heritage and boutique hotels
  • Resorts and spas

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
    • Chile
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview:

In the competitive market, various solutions cater to the diverse needs of the industry, from serviced apartments to boutique hotels. These platforms offer comprehensive tools for guest service management, including CRM and Enterprise Information Portal (EIP), enhancing customer engagement. Integration with IoT and AI ensures efficiency, while machine learning optimizes operations. Key players like Oracle Hospitality and Sabre Hospitality Solutions provide cloud-based solutions for revenue management and contactless solutions, facilitating mobile check-in/check-out and digital room keys with digital services. With health and safety regulations in focus, remote management and automation tools ensure compliance, offering both on-premises and SaaS-based software options.

Furthermore, in today's dynamic tourism and hospitality industry, effective hotel and hospitality management software is essential for seamless operations. These systems encompass diverse functionalities such as guest service management, CRM (customer relationship management), central reservation system (CRS), and property management system (PMS), streamlining operations for businesses ranging from vacation rentals to business hotels and boutique hotels. With the rise of cloud-based solutions and technological innovations like IoT and Artificial Intelligence, establishments can optimize processes, enhance guest experiences, and ensure compliance with trade regulations. Integrated with mobile payments and booking engines, these platforms offer advanced features, robust analytics, and extensive customization options to meet the evolving needs of the industry.

Additionally, the hotel and hospitality management software (HMS) market caters to the diverse needs of the tourism industry, offering solutions for establishments ranging from branded hotels to independent properties. Key considerations include installation cost and integration difficulties, alongside the demand for technically-skilled personnel to manage cloud-based or on-premises software. These systems provide basic functionality alongside advanced features like guest loyalty programs, multi-property management, and enterprise-level capabilities. They enable value chain optimization through integration with third-party systems, robust reporting, and analytics while facilitating payment gateways to streamline transactions and ensure Internet of Things (IoT) compatibility for enhanced operational efficiency.

Hotel and Hospitality Management Software (HMS) Scope
Report Coverage	Details
Page number	173
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 6.58%
Market Growth 2024-2028	USD 1.27 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	Europe at 34%
Key countries	US, China, France, 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, Microsoft Corp., NEC Corporation, 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, 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	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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe, APAC, North America, Middle East and Africa, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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