There’s an app for almost everything now. Many different tools can tackle multiple areas of your hotel operations. And some even claim they can do it all.
So if you’re in the market for new tech solutions, it’s only normal to ask: what is the best hotel management system? Unfortunately there isn’t one single correct answer.
But the following article can help you find the right choice for your property, which is probably more relevant and helpful for you anyway.
Key highlights:
- Learn what types of hotel management systems are on the market
- Determine if your property is a good candidate for using a hotel management system system
How to evaluate hotel management vendors to pick the right one for you
What Is a Hotel Management System (HMS)?
Hotel management system (HMS) is software that helps hotels run daily operations more efficiently. You may also see them referred to as a hotel operating system or a hotel management system software. These systems centralize key hotel tasks, including reservations, check-in and checkout, room assignments, housekeeping, billing and reporting.
In the past, hotel management systems (HMS) mainly covered reservations and billing, but have become more complex and gained many additional functions over time. Not long ago, most of them went from being server-based to being cloud-based. That created a host of new opportunities for suppliers to make their HMSs more versatile, user-friendly and customizable.
Today, hotel management systems have a wide variety of capabilities. They can help manage every aspect of hotel operations, and even sales, marketing and distribution-related tasks.
How Hotel Management System Works
Through centralizing a hotel’s core operations, an HMS system lets various departments share real-time data for a more efficient workflow. Here’s how it works:
Reservation Management: The HMS manages room bookings from direct channels (like the hotel website) and third-party sources (like OTAs), ensuring availability and rates stay updated across platforms.
Front Desk Operations: Staff use the system to check guests in and out, assign rooms, manage ID verification and handle payments.
Housekeeping Coordination: Room statuses are updated in real time, allowing housekeeping teams to know which rooms need cleaning, are occupied or are ready for the next guest.
Billing and Invoicing: The system tracks the charges a guest has accrued, including their room rate and any add-ons, and generates accurate folios upon checkout.
Reporting and Analytics: Managers pull reports on occupancy, revenue, average daily rate and more to make data-driven decisions.
Integrations: A robust HMS integrates with other tools like POS systems, payment gateways, mobile check-in and guest messaging platforms for a seamless guest journey.
Difference Between Hotel Management System and Property Management System
An HMS combines the core capabilities of a hotel PMS (e.g. organizing reservations and guest data, processing payments, handling check-in/out) with other important functionalities like channel management, the website booking engine, housekeeping management, guest messages and more. On top of that, some even include restaurant POS functions or loyalty program management.
Overall, there’s a broad range of hotel management systems available to suit all types of properties from large hotels and resorts to small B&Bs or vacation rentals.
Factor |
Hotel Management System |
Hotel Property Management System |
Core purpose |
Offers an all-in-one platform to manage the property |
Manages daily hotel operations |
Scope |
Property, guest engagement, and revenue optimization |
Property-level focus |
Check-In/Checkout |
Included |
Included |
Reservation management |
Included |
Included |
Housekeeping coordination |
Included |
Included |
Billing & Folios |
Included |
Included |
Mobile Check-In/Checkout |
Available |
Not included |
Guest Messaging |
Available |
Not included |
Dynamic Upselling tools |
Available |
Not included |
Reporting and analytics |
Advanced insights across departments |
Basic operational support |
Types of Hotel Management Systems
Not all hotel management systems cover all bases. Some focus on specific areas of operations or distribution channels. Here are the three main types of HMS you’ll likely come across during your research.
- Bookings-focused: This covers mostly online booking features and is geared towards maximizing reservations. Such an HMS usually comes with a booking engine and website integration, as well as channel management for distribution via hotel OTAs.
- Operations-focused: Here, the focus is on scheduling, inventory management, accounting, and sales and marketing. The goal of this type of HMS is to make hotel operations more efficient by streamlining communication and workflows.
- Property management-focused: This category is closest to the original HMS since it mostly covers front desk operations and back-of-house functions.
Which type of HMS or combination of solutions you should choose depends on your property type and the goals you want to achieve.
What Properties Should Work With Hotel Management Systems?
No matter what type of hotel you’re operating, you need to stay organized and manage your business effectively. This means that every type of accommodation provider needs a hotel management system.
The more rooms and services (e.g. restaurants, event spaces, spa) you offer, the more functionalities and integration options you’ll want your HMS to have. That will allow you to use your hotel management system as a firm foundation and add extra tools as needed to build your custom tech stack.
Read more: Small Hotel Management Software: Choosing the Best Option
The Major Benefits of Using a Hotel Management System
Using the right hospitality technology can have many important benefits for your team, your guests and your hotel business.
- Increased operational efficiency: Modern tools can streamline guest communication and ensure that no important information gets lost. This allows your team to focus better on their work, and it reduces the risk of errors.
- Improved working conditions: A good HMS can automate many tedious tasks and make other processes easier. That reduces the burden on your staff and leaves them with more time and energy for the areas where they can add the most value e.g. guest interactions or analytical work.
- Happier guests: Being able to offer faster and better service will delight your guests and ensure they have a great time. This, in turn, can lead to better reviews and an improved reputation.
- Higher profitability: Automating or streamlining certain tasks like upselling or rate updates can boost your topline. At the same time, increasing your efficiency reduces costs, and good review scores help generate more bookings. Altogether, these aspects can drive up your property’s profitability.
Keep learning: Top 10 Advantages of Using a Hotel Management System
5 Important Hotel Management Software Features
With so many tools available, it can be hard to know where to start your search for a new HMS. Here are a few boxes your new hotel operations management software should check, regardless of your property type.
1. Seamless Integration With Other Pieces of the Hotel Technology Stack
Even the most comprehensive HMS probably won’t be able to handle every aspect of your operations. So, chances are high that you’ll be using more than one tech tool. In that case, ensure that your new HMS has an open API and can connect easily to all your other solutions. That keeps workflows smooth and you avoid costly custom integrations or lengthy roll-out phases.
2. Ease of Use for Both Your Team and Guests
The easier an HMS is to use, the better for everyone. Your staff can complete tasks more quickly and provide better service. At the same time, a straightforward system reduces the risk of human error and ensures it becomes a firm part of your team members’ workflow.
This is also true for your HMS’ guest-facing elements, e.g., online check-in or upselling offers. The easier it is for travelers to interact with your system, the more likely they are to do so.
3. Mobile-Friendliness
Think of a guest communication app or a booking engine. There’s a high chance people will use it from their mobile devices. If your HMS and the integrated tools aren’t mobile-friendly, the guest experience suffers and you may even risk losing hospitality business.
Mobile-optimized tools also benefit your staff because they allow certain tasks to be done remotely and thus create more flexibility. For example, the general manager can pull the latest pick-up report on their smartphone while they’re on a business trip or at lunch with the hotel owners.
4. Potential for High User Adoption
The easier a tool is for people to use, the more of them will take advantage of it. That starts with accessibility. Having to download an app creates a much bigger barrier to entry than most hotels realize. And as you can imagine, even the best hotel app won’t help guests if they never download it.
This doesn’t mean people don’t want to use their phones to manage their trips though. According to research by Oracle, 73% of guests want to use their mobile devices to manage their hotel experience, including browsing hotel amenities. They just don’t want to do it on your app. Instead, offer web-based solutions that travelers can access via the browser on their smartphone without having to download anything, log in or create a profile.
5. Scalability
Using an HMS that provides tools corresponding to your property’s size and service offering does two crucial things. First, it keeps your cost down since you only pay for the functions you need and use. Second, a scalable HMS gives you flexibility. If you add a new service, your platform can grow with you and you don’t have to find a new provider.
Where to Find Information About the Best Hotel Management Systems
Picking the best hotel management system for your property can feel overwhelming because there are so many options. And unfortunately, it’s impossible to pick one clear winner that’s better than all the others.
But with some research and testing you can find the best match for your property. Here are four simple steps to follow:
Step 1: Go Through the Lists of the Top Solutions on the Market Today
This will give you a good idea of what’s out there. Use the following sites to find lists of reputable HMS providers:
Step 2: Identify the Ideal Tools for Your Property Type
Filter the results to find the solutions that match your needs. Then go through the software providers' descriptions to learn about their product and find the ones that tick the boxes we covered in the previous sections. Now you have a shortlist of potential new hotel management system software.
Step 3: Read Reviews From Current Users
This will give you an idea of how well the tool works in practice and if it does everything you need it to do. It’s also a good way to find out if people are happy with the onboarding process and customer support the tech provider offers. Both are crucial for a smooth transition and for getting the most out of your new tool.
Step 4: Get Demos or Free Trials
Once you’ve gone through the steps above, it’s time to test the HMSs on your shortlist. Ideally, you’d do a free trial to get a feel for the platform and see how well it works for your property. If that’s too time-consuming, a demo is also a great option. Let the provider’s sales rep walk you through all the functions you’d be using and get answers to your questions. By the end of it, you’ll know which hotel management system is the best for you.
Boost Your Revenue with Canary’s HMS SystemNow that you know all about HMSs and how they can help you increase efficiency, improve the guest experience and drive profitability, it’s your turn.
Do you already have an HMS? If so, evaluate if it does everything you need it to and if it yields the results you want.
If you don’t have an HMS system or have decided that it’s time for a new solution, use the insights above to find the best hotel management system for your property.
Canary’s hospitality software is built by hoteliers, for hoteliers, and has the features you need to set your hotel apart. Canary’s AI-powered digital solutions modernize the guest journey from booking to checkout, and hotels can choose individual products or the full suite depending on their needs.
As soon as it’s live, you’ll be glad you made the effort thanks to the many benefits it’ll bring, like streamlined workflows, increased revenues and a better guest experience.
And if you don’t want to learn how to create a hotel management system from scratch on your own, request a demo to see how Canary can help.