Property Management Systems

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This report discusses the best PMS solutions for accommodation businesses, what to consider when buying and tools for evaluating and implementing a solution.

What is a property management system (PMS)?

A Property Management System (i.e: Hotel, Resort or Vacation Rental PMS) consists of software that manages reservations, inventory, rates and various operational tasks associated with managing the needs of the business and its guests. A PMS is often connected to multiple systems depending on the type of property and other factors. As a result, it often plays a central role in the property’s technology infrastructure and may need to regularly communicate with these other systems.

Classifications: (what is this?)

  • Category Size: Super
  • Geographic Dispersion: High
  • Requirements Complexity: Medium

Industries Covered:

  • Hotel, Resort, Vacation Rental, Timeshare, Motel, Inn, B&B, Short Term Rental

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Market Summary

Market Overview

The field for Hotel Property Management Systems is crowded. As those in the industry understand quite well, this is an understatement. As of this writing, Capsolve has identified almost 400 Hotel PMS solutions designed specifically for the industry. The proliferation of solutions has occurred over the course of many years due to multiple factors and ultimately stems from the wide variation of needs across the industry.

While we as consumers may stay at properties that have a consistent footprint from a design and functional perspective, even hotels within the same brand may have quite different needs. These variations arise from the location, the property’s surroundings, the competitive market, the strengths of its employees, business partnerships, service levels, marketing programs and even technology decisions. And this is just the beginning.

Hotel Property Management Systems (PMS) for hotels, resorts, inns, motels and B&Bs - global headquarters locations of vendors.

As seen in the above image, the Hotel PMS solutions are delivered across the globe by companies headquartered in many parts of the world. While the United States has a significant share of those tracked in Capsolve’s research, it represents less than 20% of the total and is followed closely by Spain, France, the UK and others.

Hotel Property Management Systems (PMS) for hotels, resorts, inns, motels and B&Bs - top country headquarters locations of vendors.

Marketplace Context

This dispersion extends beyond the geographic headquarters location of these solution providers into the actual functionality of their respective software solutions. The reality is that you will find almost any combination of functionality within this marketplace depending upon your business needs. However, sifting through hundreds of vendors to find the best property management software may become an exasperating experience whether you are a tech novice or tech aficionado.

As you would expect, Capsolve found Rate, Rate Plan, Inventory, Availability and Reservation Management at the core of what these systems have to offer. However, while these fundamentals of the PMS exist nearly everywhere, the number of modules continues to increase. Vendors are responding to client requests to extend their functionality in multiple directions. This is causing a much more diverse playing field as vendors decide to invest in CRS, IBE, CM, POS, Website or CRM functionality to satiate these needs. More choice in vendors is the result, and this means that most properties have multiple options when considering a new solution.

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Capsolve Tools

The Report

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About this Report

This document details a review of the marketing information and capabilities associated with this category’s solutions and the surrounding technology ecosystem. It contains original content written by Capsolve to provide a perspective of current trends affecting one or more of the hotel, restaurant and golf & country clubs industries. The analysis covers a statistically significant portion of the previously defined category marketplace.

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