What is a Property Management Software (PMS) software and why a hotel needs it? 

by | Mar 16, 2023

In a hoteliers’ context, Property Management Solutions are robust software that helps to operate seamlessly on the front-office functionalities. According to research conducted by Property Management Software Market Research, the global property management software market was valued at $3 billion in 2021 and is projected to reach $4.7 billion by 2031, growing at a CAGR of 4.9% from 2022 to 2031.

This means there is a significant need with the rising demands in the hospitality industry. Today, most modern PMS solutions come with integration options with other powerful solutions that handle back-end functionalities leading such systems to be an all-in-one package.

What are the benefits of using PMS software?

Modern PMS software offers a variety of functionalities from which hoteliers can benefit. The right property management solution offers:

Automated workflows

Digitalisation in the hotel industry leads to numerous benefits, including solving many internal issues. In post-pandemic times where the shortage of labour and skill has become quite common, implementing a property management system will facilitate hoteliers to focus on hiring for areas which require only human effort. These systems also improve the efficiency of the hotel and reduce the overhead and training costs.

Contactless operations

Offering and implementing contactless technologies in the hotel sector is now not only considered as a measure taken for health and safety protocols but also as an innovative solution to improve the guest experience. Contactless options reduce the number of physical touchpoints in a guest’s journey and improve the efficiency of the process by offering quicker mobile options, thereby providing them with a seamless guest experience.

User-friendly interfaces

Designed to be in both mobile and web platforms with intuitive interfaces, property management software should be able to be utilised with minimal staff training. Installation of such systems in hotels will reduce the number of human errors occurring, time and effort of the training and will contribute to improving the guest experience.

Customisable and attractive dashboards

Hotel PMS software offers attractive dashboards which provide a quick view of various information and datasets. Apart from highly attractive dashboards, these options are also customisable per the administrative and management needs of each hospitality operation and business type. The ability to view information like occupancy, arrivals and departure, keep track of upcoming reservations and define room rates are a few of the predefined dashboard options.

Centralised operations

Centralisation is the ultimate requirement for contemporary businesses post-covid and working on flexible and hybrid setups. Property management solutions that operate on cloud architectures facilitate hotels to operate with a suite of tools on a single platform, centralising all operations. This enables chain or group hotels to coordinate all operations and enable staff to access information across any chain property from a single login and a single location.

Integration with other standalone solutions and third-party applications

Implementing a single property management software alone will not facilitate hoteliers to be competitive in the marketplace. Hotels also require other powerful solutions and third-party applications that digitise other areas of the business to keep thriving and scaling further in the industry.

Having a PMS solution that can integrate seamlessly with such modules will establish better synchronisation among all systems and collaboration with other departments to offer the best guest service. Modern property management solutions facilitate the integration with third-party and other standalone solutions, effective data sharing between parties and saving the cost and time of switching between systems.

Intuitive reporting for advanced statistics

The preparation of analytical reports can be a cumbersome process in most organisations, especially when dealing with data silos. In response, property management software offer customisable and accurate reports with real-time data and analytics. These analytics features enable users to define business KPIs and parameters at the chain level, generate central reports and optimise performance in future.

Review and customer communication management 

A PMS also helps hospitality employees manage customer relationships by capturing and storing guest data, preferences, and history, allowing for personalised service, targeted marketing, and effective communication to enhance guest satisfaction and loyalty. 

More advanced systems also offer review management capabilities; hotels and other businesses can collect guest reviews via other booking channels, moderate them and publish them after review, which enhances their digital presence.

24/7 support

Most property management software providers for hotels offer great customer support services. Renowned service providers also offer multilingual and local support in order to provide instant help and expedite issues arising whilst using or upgrading such software.

What features to look for in property management software?

Property management software offers a number of features which streamlines both the front-end and back-end operations of hotels. An efficient PMS offers:

  • Front desk management with multiple property reservation features
  • Chain level data management
  • Multi-currency, multi-lingual, multi-geography operation capabilities
  • Check-in anywhere at any time
  • Filter and retrieve guest information
  • Guest profiling with their customisable preferences.

Types of PMS Software

The evolution of technology has significantly improved over the years from on-premise to hybrid and finally on the cloud. Renowned software solution providers offer hospitality software on all three platforms to accommodate the different needs of individual businesses in the industry.


These legacy systems are still in operation in certain businesses, especially when cloud migration is not possible. They operate locally in-house and have no connectivity to be accessed from multiple locations. On-premise solutions are still widely used in rural areas with less internet connectivity.

Benefits of using on-premise PMS solutions

  • Lower running costs as no internet connectivity is required.
  • The security of data is quite high as it is not stored on the cloud.
  • Information and services are always accessible on-site and without relying on internet connectivity.

Drawbacks of using on-premise PMS solutions

  • Start-up costs are high as everything is hosted in-house and requires heavy equipment
  • Backing up large chunks of data can be cumbersome and require additional equipment and services, which can be costly.
  • Information cannot be accessed from other locations outside the premise
  • Centralisation of processes is not available for chain or large group hotels.
  • More staff and human attention required to operate the processes.


This is the most common property management software in most contemporary businesses. Cloud solutions offer accessibility from anywhere around the globe at any given time. Cloud property management solutions are trending and have provided great relief to hoteliers during recent pandemic situations.

There are a number of benefits of using PMS cloud solutions in the hotel industry:

  • Allowing hotels to easily scale their IT infrastructure as needed to satisfy digital demands.
  • Saving money on IT infrastructure and maintenance costs.
  • Reducing many time-consuming tasks, such as reservation management and customer service with automation, leading to better service.
  • Allowing employees to access important information and systems from anywhere.
  • Protecting sensitive guest data with enhanced security measures available on cloud platforms.
  • Enabling hotels to provide guests with a personalised, convenient and seamless experience throughout their stay.
  • Improving operations and developing targeted marketing campaigns with tools that effectively collect, store, and analyse data.

However, there are certain drawbacks to using cloud PMS software as well:

  • Cloud-based PMS software relies on stable internet connectivity to be functional, so any issues with connectivity can lead to system malfunctions.
  • While cloud providers typically have robust security measures in place, there is still a risk of data breaches or unauthorised access to sensitive information.
  • Certain PMS software may not offer the same level of customisation as on-premises systems, which can be a disadvantage for hotels with unique needs.
  • Cloud platforms operate heavily with reliance on third-party applications, making hotels rely on vendors to provide updates, troubleshoot issues, and provide technical support.
  • Certain PMS cloud solution providers may charge a higher subscription fee than on-premise software.


These solutions provide a combination of on-premise and on-cloud solutions. They can work on both platforms depending on the requirements and the availability of cloud services.

It’s vital to weigh the benefits and drawbacks of each platform based on the operational and management requirement of each hotel business before making a decision. It’s also important to do research on different vendors and choose one that aligns with the needs and budget of the hotel.

Why choose IDS Next Cloud PMS Solutions

IDS Next is a pioneer in providing smart hospitality software to Southeast Asia, the Indian Ocean, the Middle East, Africa, and Oceania and is the trusted tech solutions partner for over 6,000 global customers in 50 countries. IDS Next’s cloud PMS solutions offer user-friendly interfaces, digital data security and sophistication so hoteliers can upgrade their existing workflows for better and smarter operations. Designed specifically for the hospitality industry to streamline and automate operations. IDS Next’s PMS is available on cloud and includes multiple modules to manage the processes of all hotels, restaurants and leisure businesses.