Market Trends of Hospitality Property Management Software (PMS) Industry
Small and Medium-scale Enterprises to Witness Growth
- The demand for tourist accommodations in developing and developed countries is increasing, supported by the rise in the disposable income of the people to spend on vacations and leisure activities. This is fueling the growth of small and medium-scale hotels worldwide due to their economic benefits, creating an opportunity for hospitality property management software vendors to expand their software offerings designed for small- and medium-scale hotels.
- In October 2022, Tripleseat partnered with Curator Hotel & Resort Collection, a consortium of small-brand and lifestyle hotels, to become Curator's preferred vendor in the technology space by providing its cloud-based sales and catering management software for small-scale hotels by helping them streamline their booking process, enhance efficiency, and increase sales. In addition, Tripleseat's software can easily integrate with other software-based technology implemented in the operations of Curator, which enables the hotel consortium to have an efficient booking experience.
- According to the study by UNWTO, although the number of tourists arriving from different countries fell considerably during the COVID-19 pandemic, it has now doubled from the previous year. However, the number of inbound tourists are yet to reach pre-pandemic levels.
- Hospitality property management software offers a wide range of features to aid small hotels in effectively managing their front-office operations. It applies to managing reservations, guest check-in/check-out, assigned rooms, room rates, and billing. Small and medium-sized businesses are expected to grow significantly in adopting Hospitality Property Management Software in the coming years.
- The post-COVID-19 reality has forced hospitality business owners to use innovative methods to provide their customers with better accommodation. The centralized computer systems continue to develop and improve, delivering greater flexibility to players in the hospitality sector. Moreover, cloud deployment is gaining traction in SMEs as on-premise deployment requires considerable investments in infrastructure development. Therefore, the growing number of small- and medium-scale enterprises in developing economies, alongside the adoption of digital technologies, is analyzed to boost the market growth rate during the forecast period.
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North America to Hold the Largest Market Share
- The hospitality property management software (PMS) market in the United States is experiencing significant growth and transformation, driven by technological advancements, collaborations, and growing government initiatives. There is a strong focus on cloud-based solutions, integration capabilities, automation, and enhanced analytics. These trends aim to streamline operations, improve guest experiences, and drive efficiency and revenue growth for properties of all sizes. Further, the future of the HPMS market in the United States is characterized by innovation, personalization, sustainability, and data-driven decision-making.
- The country has been witnessing an increase in the adoption of cloud HPMS by companies providing hospitality services. For instance, in December 2022, Marriott International Inc. announced its partnership with Agilysys Inc., a company providing hospitality software solutions, to provide its cloud-native property management system (PMS) across Marriott's luxury, premium, and select service hotels in the United States and Canada over the coming years. In addition, Agilysys and Marriott will work together to closely align resources and activation plans before beginning to replace multiple proprietary property management systems currently in use.
- Canada witnessed considerable solution launches, acting as a potential factor driving the market's growth. For instance, in April 2023, Amazon announced the launch of Alexa Smart Properties (ASP) for Hospitality in Canada at the Fairmont Le Manoir Richelieu in Charlevoix, Quebec. The company has implemented Amazon Echo in every room. With this service, visitors can ask Alexa for information that would previously be asked at the front desk. Alexa can also perform multiple tasks such as playing music, checking the weather, ordering room service or towels, controlling in-room temperature or lighting, and checking out.
- With the growing demand for cloud-based platforms in the HPMS, most of the companies providing HPMS are launching new solutions, recognizing the benefits of cloud deployment modes. For instance, in December 2022, mycloud Hospitality announced that the company is launching a two-way integration of mycloud PMS with RateTiger. Through the RateTiger dashboard, the employees working in the hotels, service apartments, and resorts can instantly alter the rate and inventory on their company's website.
- The rise of online booking platforms and the shift toward digital solutions in the hospitality sector have further fueled the growth of property management software technology in Canada. Accommodation providers increasingly adopt these technologies to streamline operations, enhance guest experiences, and improve efficiency. These factors show that Canada's growing hospitality property management software technology sector responds to the increasing demand for advanced solutions in the hospitality industry. With ongoing advancements in technology and the continued growth of the tourism sector, this trend is expected to continue in the coming years.
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