PUBLISHER: Allied Market Research | PRODUCT CODE: 1566794
PUBLISHER: Allied Market Research | PRODUCT CODE: 1566794
Hotel Management Software Market
The hotel management software market was valued at $3.5 billion in 2023 and is projected to reach $5.9 billion by 2032, growing at a CAGR of 5.9% from 2024 to 2032.
Hotel management software is an application particularly designed to automate different tasks and facilitate effective communication in a hospitality institution. The elements included in the software are back-office, front-office, reservations, housekeeping, point of sale transactions, guest check-in & check-out, maintenance, and billing operations. The software serves as a promotion platform by enhancing customers' experiences via customer relationship marketing tailored specifically for hotel groups or independent hotels, resorts, motels, restaurants, bed & breakfasts (B&B), serviced apartments, and vacation rental homes.
Rapid expansion of the travel & tourism industry is a major driver for the hotel management software market. The software solutions support in managing large volumes of guests and elevate their experience. In addition, rise in the need for automation in day-to-day hotel activities is boosting the adoption of the hotel management software. Currently, the assimilation of cutting-edge technologies such as AI, predictive analytics, and the Internet of Things (IoT) is trending in the software landscape. These technologies are assisting the hotel owners in delivering customized experiences to their guests. Furthermore, the data from predictive analytics is expected to revolutionize the marketing strategies of hospitality institutions, leading to operational improvements and increase in revenue generation.
However, implementation of the software requires high upfront & maintenance costs and demands periodic training of all the employees working in the hospitality institution. These factors limit the expansion of the hotel management software market. PwC released a report in 2023 which stated that around 40% of small hotels were unable to shift toward digitalization due to financial constraints. In addition, the threat of cyberattacks and data breaches significantly restrains the development of the market. Cybersecurity Ventures, a website providing information on cybersecurity topics, predicts cybercrime damages to reach $10.5 trillion annually by 2025.
Segment Review
The hotel management software market is segmented into type, hotel type, deployment mode, and region. On the basis of type, the market is divided into hotel operation management system, integrated security system, hotel building automation system, guest service management system, and integrated communication technology solutions. Depending on hotel type, it is classified into business hotels, heritage & boutique hotels, and resorts & spas. As per deployment mode, it is bifurcated into on-premise and cloud. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Findings
On the basis of type, the hotel operation management system segment held the highest market share in 2023.
Depending on hotel type, the business hotels segment accounted for a high share in the market in 2023.
As per deployment mode, the on-premise segment dominated the market in 2023.
Region wise, North America was the highest revenue generator in 2023.
Competition Analysis
The major players operating in the global hotel management software market include Oracle Corporation, Infor, Protel Hotelsoftware GmbH, Sabre, ASSD, Delta Software, eZee FrontDesk, Cloudbeds, Guestline Ltd, and NEC Corporation. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, to strengthen their foothold in the competitive market.
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