How to Choose a Property Management System (+ 10 Best Hotel PMS)

If you have the right staff and strategies in place at your hotel but you’re still not performing as you’d like to, the chances are you’re being let down by your systems.

At the heart of any hotel’s systems will be its property management system (PMS) – or at least it should be. But maybe…

• Yours is out of date and you’re in need of an upgrade

• It doesn’t ‘talk’ to your other systems

• You don’t actually have one, as you’re making do with other systems or have just started out

Whatever the nature of your headache, this blog post will help you identify the key considerations you should bear in mind when choosing or upgrading your PMS.

Start by nailing down your budget

As with evaluating any piece of hotel management software, before diving into the search for a PMS, it’s essential to establish a clear budget. Setting a budget early in the process not only keeps you grounded during your search, but it also ensures that you don’t waste time exploring options that may be out of reach for your business. 

The first step is to involve key stakeholders in the discussion – such as hotel management, IT team (if you have one), finance and even front-line staff who will be using the software regularly. Their input will help define the system’s required features and ensure you’re investing in a solution that meets everyone’s needs while staying within budget.

Setting a budget from the outset is crucial for several reasons. For one, it helps narrow down the pool of available PMS options and prevents the overwhelm of exploring systems that exceed your financial capacity. 

Without a budget, it’s easy to get caught up in exploring highly sophisticated solutions that might not be necessary for your hotel’s size or operation type. Additionally, establishing a clear budget allows you to prioritize features and functionalities that will have the most impact on your operations, like booking management, revenue optimization, or guest communication tools.

In terms of cost, hotel PMS systems typically range in price based on the size of your property, the features you require and whether the system is cloud-based or on-premise. 

On average, small to mid-sized hotels might spend anywhere between $5,000 to $20,000 annually for a cloud-based PMS, with larger hotels or more feature-rich systems costing upwards of $30,000 per year. But, before you get sticker shock, understand that many PMS providers offer per key pricing that make these solutions affordable for smaller hotels

For reference, the overall investment in technology and software solutions in the hospitality industry is growing steadily. According to one report in 2023 that’s typical of many, 72% of hoteliers planned to increase their IT budgets to improve operational efficiency, with automation and cloud-based systems being a top priority. 

This emphasizes the increasing role of software solutions like PMS in modern hotel management, making it all the more important to allocate your budget thoughtfully.

Define your requirements for a PMS

Defining your software requirements is one of the most important steps in selecting a property management system that aligns with your hotel’s needs. 

Begin by identifying the key functions you need beyond the basic requirement of effectively analyzing your PMS data for good revenue management. 

These typically include reservation management, guest check-in and check-out, billing and room assignments. Additionally, consider the following key aspects of functionality:

• Implementation requirements: Consider the ease of implementation when choosing a PMS. A system that offers quick setup and minimal disruption to existing workflows can be critical. It is also worth checking if the PMS system integrates well with any existing tools you may already have in your tech stack.

For example, cloud-based systems boast faster deployment times compared to on-premise software​. 

• User-friendliness: The user interface (UI) should be intuitive and easy for your team to navigate. A complicated or cumbersome system can lead to delays and errors, negatively affecting your hotel’s operations. 

Many PMS providers now focus on delivering simple, streamlined interfaces that reduce training time and improve user efficiency​.

Cloud-based systems offer the advantage of remote access, allowing you to manage your hotel from anywhere, often at lower upfront costs. However, on-premise solutions might offer greater control over data security and customizability​.

• Features and capabilities: Identify the specific features that will benefit your hotel. For instance, revenue management tools, integrated booking engines, guest messaging systems and housekeeping management are becoming essential in today’s competitive market. 

Advanced PMS solutions also offer features like mobile check-in/check-out, guest preference tracking and integrated channel management to optimize occupancy.

Look for vendors who offer 24/7 support, as well as comprehensive resources like online documentation, live chat and phone support.

By pinning down these key requirements early on, you’ll be better placed to choose a PMS that aligns with your operational needs and long-term goals, ultimately improving your hotel’s efficiency and guest experience.

3 Must-have PMS feature capabilities for hotels of any size

Key features and capabilities of a PMS typically include:

• Guest profile management: They store and organize guest information for personalized service and loyalty tracking.

• Billing and Invoicing: They simplify payment processing, invoicing and financial reporting.

• Reporting and analytics: They provide insights into occupancy, revenue and performance metrics for informed decision-making

• Mobile accessibility: They allow staff to manage operations on-the-go, ensuring flexibility and efficiency.

But, most importantly, they help you deal with reservation management, with housekeeping management and with integrations, three modules of functionality that we’ll take a deep dive into. 

1. Reservation management

Reservation management is the core function of any PMS, allowing hoteliers to efficiently handle guest bookings. A best-in-class solution goes beyond basic reservation tracking, offering seamless integration with online travel agencies (OTAs), such as Booking.com and Expedia, a dynamic booking engine, and real-time availability updates. 

It should also provide advanced features like automated confirmation emails, overbooking prevention, and the ability to manage cancellations and modifications with ease. 

The most sophisticated systems allow for rate management and room allocation, optimizing revenue through real-time pricing adjustments and occupancy forecasts.

Effective reservation management is crucial for maximizing occupancy and ensuring a smooth guest experience from booking to check-in. For hotels of all sizes, it helps reduce human error, streamline operations and workflows and avoid costly mistakes like overbookings. 

With guest expectations higher than ever, offering a seamless and reliable reservation process is key to building trust and ensuring repeat business. Systems that integrate with OTAs and provide real-time updates also increase visibility, allowing hotels to capture more bookings and optimize revenue streams across multiple channels.

2. Housekeeping management

Housekeeping management within a PMS helps coordinate and streamline the cleaning and maintenance of guest rooms and public areas. 

A top-tier PMS solution allows for real-time tracking of room status, from “clean” to “dirty” or “out of service.” It should also integrate seamlessly with other hotel operations, enabling staff to receive instant updates on room assignments and priority tasks. 

The best systems enable mobile access for housekeeping staff, allowing them to mark rooms as completed, request supplies, or flag maintenance issues directly from their devices. Automated alerts for room cleaning based on check-out times or guest preferences can also help improve efficiency.

Effective housekeeping management is vital for ensuring a smooth guest experience and maintaining high cleanliness standards. A PMS that integrates housekeeping functions ensures that rooms are cleaned on time and in a way that meets guest expectations. 

With real-time updates, hotel staff can quickly respond to requests or issues, enhancing guest satisfaction. 

Additionally, efficient housekeeping management reduces downtime, lowers operational costs and helps optimize room turnover, which is essential for maximizing revenue, particularly during peak periods​.

Without proper coordination, hotels may face delays, missed requests and an overall decline in service quality, which can lead to negative reviews and lost business.

3. Integrations

Integrations refer to the ability of property management software to seamlessly connect with other hotel software and platforms, enabling streamlined operations and data sharing. 

A best-in-class PMS should integrate with various third-party systems such as:

The most advanced solutions enable two-way communication with these platforms, ensuring that data is synchronized in real-time. 

For instance, integrating with a channel manager allows a hotel’s availability and rates to be automatically updated across multiple OTAs, preventing overbookings and optimizing revenue management.

When evaluating a PMS, it’s essential to prioritize integrations that align with your hotel’s operational needs. For example, integrating with pricing recommendation software can optimize pricing decisions in real time to drive revenue and save you time. 

Additionally, a system that integrates with financial and accounting software helps maintain accurate records and simplifies financial reporting. The ability to integrate easily with these tools reduces manual data entry, saves time and increases operational efficiency across the board.

Compare 10 leading hotel property management systems

1. Cloudbeds

Cloudbeds PMS is a versatile property management solution tailored for the hospitality sector. It efficiently consolidates bookings from various OTAs to minimize overbookings and enhance revenue through tools like the Pricing Intelligence Engine (PIE). 

Designed to simplify hotel operations, Cloudbeds PMS integrates seamlessly into existing workflows, serving as a comprehensive tool for managing properties and elevating the guest experience.

Features and benefits include:

• An intuitive calendar

• Simple drag and drop functionality

• Customizable reporting for actionable insights

• Automated guest comms

• Streamlined invoice processing

2. Mews

Mews PMS is a cloud-based property management solution built to simplify hotel operations and elevate the guest experience through automation and easy-to-use features. 

It streamlines processes like daily reconciliations, reservations and property management, improving overall efficiency. The platform integrates seamlessly with third-party tools, allowing for tailored solutions to meet unique hotel requirements. Mews enhances both front desk and back-office operations, driving efficiency and guest satisfaction.

Features and benefits include:

3. Oracle Hospitality

Oracle OPERA PMS is a powerful property management solution built to support hotel operations and distribution, utilizing advanced cloud-based technologies. Widely seen as the legacy ‘industry standard’ – it improves efficiency with customizable dashboards and a scalable cloud infrastructure. 

However, having cemented its position as the industry leader, it also comes with a high price tag.

The platform streamlines training and enhances staff efficiency and is well renowned for being used by big hotels with banqueting, F&B outlets, and a considerable amount of amenities and services. 

Managing a broad spectrum of tasks, including front desk activities like check-ins and room assignments, as well as back-office processes such as revenue optimization, OPERA plays a key role in elevating guest satisfaction and optimizing the overall management of your hotel business.

Features and benefits include:

4. Stayntouch

Stayntouch is a modern cloud-based PMS created to simplify hotel operations. It improves operational workflows and guest satisfaction with its intuitive design, mobile accessibility and seamless integration options. The system streamlines processes like reservation handling, front desk tasks, revenue tracking and housekeeping management. It also supports group bookings and multi-property operations, enhancing staff efficiency and increasing revenue potential. 

Featuring remote installation with thorough training, Stayntouch is an essential solution for contemporary hotels looking to grow their business and deliver exceptional guest experiences.

Features and benefits include:

5. innQuest

Built by innQuest, roomMaster HMS by is an all-in-one property management solution tailored to simplify hotel operations. 

Renowned for its intuitive interface and extensive features, it enables efficient management of reservations, front desk tasks, housekeeping and more. Its advanced reporting and revenue optimization tools help maximize profitability through smart rate management and detailed analytics. 

With integration capabilities spanning over 155 third-party systems, the platform enhances efficiency while reducing operational costs. Designed to improve the guest journey from check-in to check-out, roomMaster HMS is a powerful tool for streamlining workflows and enhancing overall hotel performance.

Features and benefits include:

• Performance reporting

• Online booking

• Channel management

• Payments

• A communications suite

6. HotelTime PMS

HotelTime PMS is a cloud-based property management system designed to simplify a wide range of hotel operations, from handling room bookings to managing spa services. 

This flexible platform not only covers essential property management tasks but also provides channel management and comprehensive reporting capabilities. Offering real-time data access and extensive integration options, HotelTime PMS boosts efficiency, reduces costs, and suits properties of all sizes, from boutique hotels to large resorts. With robust customer support and customizable features, it’s a modern solution for efficient hospitality management.

Features and benefits include:

7. Agilysys

Agilysys PMS is a robust property management solution crafted for the hospitality sector. It streamlines hotel operations by efficiently handling reservations, guest profiles, check-ins and check-outs, housekeeping and invoicing. 

Designed with a hospitality-first approach, the system adapts to the unique details and changes in guest preferences, delivering personalized and memorable experiences. Its proactive technology anticipates and addresses potential operational challenges, ensuring minimal disruptions and smooth day-to-day management. 

This makes Agilysys PMS an essential tool for maintaining efficiency and enhancing guest satisfaction.

Features and benefits include:

• Hassle-free customization

• Contactless guest engagement

• Self-service check-in and check-out

8. WebRezPro

WebRezPro is a versatile cloud-based property management system designed to improve efficiency and profitability for a wide range of accommodations. It simplifies operations by managing reservations, inventory, accounting and reporting in a unified platform, streamlining front desk and back office tasks. 

With a built-in, commission-free online booking engine and integration with over 125 third-party platforms, the system enhances revenue management and operational productivity. Offering customizable tools, group booking capabilities and advanced billing options, WebRezPro adapts to the unique needs of different properties.

Features and benefits include:

9. Hotelogix

Hotelogix is a comprehensive property management system designed to simplify hotel operations and improve efficiency. 

It consolidates key functions such as reservations, front desk management, housekeeping and billing into a single platform, eliminating the need for multiple systems. With advanced reporting tools, seamless integration with OTAs and remote access capabilities, Hotelogix empowers hoteliers to manage and optimize their operations from any location. 

These features enhance revenue generation, boost guest satisfaction and streamline daily workflows, making it an ideal solution for modern hospitality businesses.

Features and benefits include:

• Drag and drop reservations to quicken operations

• Easy usage and training capabilities

• Cloud-based 24/7 accessibility

• Sophisticated admin console

10. Guesty

Guesty is a versatile property management platform tailored for short-term and vacation rental properties. It simplifies daily operations, providing end-to-end solutions for property managers. 

By reducing the time spent on routine tasks, Guesty enables managers to focus on scaling their businesses. The platform integrates effortlessly with existing systems to enhance operational efficiency, making it a valuable asset for optimizing rental management and streamlining workflows.

Features and benefits include:

Shortlist your top PMS vendors and get in touch with them

To narrow down your list of vendors, revisit the requirements you defined earlier in the selection process. Focus on vendors that align with your hotel’s unique needs, such as essential features, integration capabilities, budget constraints and scalability. 

Eliminate options that lack critical functionalities or exceed your financial limits. Pay attention to user reviews, case studies and demos to assess whether the system is practical and user-friendly for your team.

Aim to shortlist three to five vendors for further evaluation. This number ensures a manageable comparison without overlooking key contenders. Before committing, contact each vendor to ask specific questions about their system’s features, implementation process and ongoing support. 

Scheduling demos or trials is crucial for understanding how the PMS will perform in real-world scenarios. Engaging with the vendor also provides insight into their responsiveness and customer service quality – important factors in a successful long-term partnership.

Key questions to ask the sales team

Prepare a list of prioritized questions and scenarios to discuss. Take notes during the conversation and request a follow-up email summarizing the discussion for clarity.

You could consider asking these questions:

• Be specific and check how the exact tools in your current tech stack integrate with the PMS

• What does the implementation process look like and how long does it typically take?

• What kind of training and ongoing support do you provide?

• How do you handle data security and compliance with privacy regulations?

• What is their onboarding pipeline like? Is there currently a wait?

• Can you provide case studies or references from hotels similar to ours?

How to maximize the value of a product demo

To get the most out of demos and free trials, prepare a checklist of key features and tasks based on your hotel’s requirements. Involve staff members who will use the PMS daily, as their input is critical for evaluating usability. 

Test real-world scenarios such as making a reservation, assigning a room or integrating with existing tools.

During demos, ask vendors to show specific workflows and address any unique needs your hotel might have. For free trials, set clear testing objectives and collect feedback from all users to ensure the system meets both operational and guest service expectations.

Get even more out of your PMS by leveraging its data to gain insight insights into hotel performance

Lighthouse’s intuitive commercial platform is designed to aid you in uncovering valuable and actionable insights, for more informed decision making and connect with almost all PMS on the market. 

Our solutions leverage your PMS data to full effect, in a variety of ways from demand forecasting, benchmarking and room price optimization to give you a real competitive edge, and enable you to maximize revenue with minimal effort. 

Used individually or in combination, our tools will help you maximize the benefits of your PMS once it’s been implemented.

To find out more about our solutions, get in touch with our team today. 

 

About Lighthouse

Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.

Trusted by over 65,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners – their success is our success.