Choosing a property management system (PMS) isn’t only about bells, whistles, and exciting features that bring guests to your door—it’s also about ensuring you get the best value for your investment. Are you paying more than you should?
To find out, you need a clear understanding of all costs involved. Unfortunately, not all software providers are upfront about their pricing, and hidden fees can quickly add up. Before committing to a system, it’s important to conduct a thorough evaluation. Here are some common hidden fees to watch out for.
Know whether you’ll be charged for customer support and if that support has limitations. Will you have to pay more for a higher amount of support hours or faster response times? Be aware that you may need more support than you initially think, and exceeding your service limit could result in overage charges. If these charges exist, you’ll need to let your employees know and keep close track of their service use.
WebRezPro provides fully complimentary ongoing customer support, including five hours of training when a client begins using the system. Every client receives the same excellent level of service with no support pricing tiers, and our inhouse support team is available every day. Our average speed of answer is 25 seconds by phone, and 89.9 percent of issues are resolved on the first call.
To ensure each user receives the assistance they need, WebRezPro offers support by phone, email, and our ticketing system within the software. However, this is not the case for every software provider; some only provide email or chatbot support. Before you commit, send a test inquiry and see how quickly you get a response.
According to SiteMinder, direct reservations through hotel websites produced as much as 60 percent more revenue per booking than other sources (like OTAs) in 2024. Direct bookings should be your most profitable, but hidden booking engine fees can quickly eat into your earnings.
Most property management systems include an online booking engine that integrates with your hotel’s website. While standard payment processor fees apply when a guest books, your PMS should not be taking a cut. As part of a complete PMS, your direct booking engine should be commission free—and if your provider charges a transaction fee on cancellations, it’s time to cancel your business with them.
If your PMS provider charges per user, costs can quickly escalate as more staff require access to your system. A PMS delivers the most utility when it connects all departments, ensuring seamless communication across your property. For instance, housekeepers should be able to update room statuses in real time so that the front desk knows which rooms are ready for check-ins. Limiting users impedes this functionality and disrupts operations.
Per-user pricing can also lead to unnecessary expenses if you forget to discontinue a license when someone leaves the property or transfers roles. Failing to deactivate unused accounts essentially means you’re paying for access you no longer need—and some providers may even charge overage fees.
To enhance efficiency—not restrict it—look for a system that includes unlimited users.
Integrating your PMS with other software can streamline operations, but it typically comes with additional costs. With WebRezPro, payment processor integration is included, but other integrations may incur fees depending on the size of your property and existing contract.
To get the most value, be aware of integration fees up front and ensure you’re fully utilizing each integration you choose.
Before committing to a property management system, check if the provider charges a setup fee to get your system up and running. Some PMS providers impose hefty onboarding costs, demanding a lot before even going live.
With WebRezPro, there are no system setup fees—we believe getting started with a new PMS should be seamless and cost-effective (and as painless as possible!).
Investigate how easy it is to part ways if you’re unsatisfied with your PMS. Some providers charge cancellation fees, which can be a sign that they are not confident in their product. You don’t want to be tied to clunky software because they’ve made it too expensive to switch. Also be aware of data migration fees to extract your data should you choose to leave.
If your website was supplied by your PMS provider, know who owns it—them or you—and what happens if you switch PMS systems. They may not explicitly charge you a fee for leaving, but if they control your website and won’t let you keep it, the cost of building a new one from scratch can be significant.
At WebRezPro, there are no cancellation fees—properties can cancel free of charge with 30 days’ written notice. We provide read-only access so you can still reference your data during the transition. And if we build your website, you own it, no strings attached.
An escalation clause allows a service provider to raise prices at pre-determined intervals. Sometimes, this makes sense, i.e., when keeping pace with inflation, but it can also be used to gauge the customer. Make sure any escalation clause is capped—you don’t want to find yourself facing a 75 percent price jump with no warning. Combine an escalation clause with a hefty cancellation fee, and it could start to feel like a ransom situation!
Also be aware of upgrade fees. Software upgrades are necessary not only for functionality but for security, and your PMS may eventually stop supporting older versions. For this reason, it’s important to verify whether upgrades are included or come with an extra charge.
Before selecting a property management system, conduct a property-wide analysis to determine exactly what you need. This way, you can choose a system that best aligns with your property’s business goals without paying for unnecessary features or racking up overage charges.
A more expensive system may prove worth it to meet these goals, but you can’t make that determination without a clear breakdown of total costs. Be wary of vague pricing structures—your contract should be transparent and easy to understand, and the provider’s representatives should have no problem clarifying anything you’re unsure of.
For added protection, ask questions in writing so that you have something to refer back to, both for yourself and in case of any disputes.
Understanding and avoiding hidden fees can protect your bottom line significantly in the long run. Even small fees add up quickly. Trust your instincts and think twice if a fee sounds unjustified or excessive.
Look for a provider that is upfront about what they charge to find a system that fits both your budget and business goals.
