Hotels today face many challenges. Running a hotel is no longer just about allocating rooms and looking after guests. Processes must be designed efficiently, staff relieved, and at the same time an exceptional guest experience created. A PMS Software supports hoteliers precisely in this. In this guide we explain briefly and clearly what a PMS can do, which functions are important and what to look out for in the seemingly endless choice of additional modules to remain successful in the market.
PMS stands for Property Management System. The term Hotel Management Software is also commonly used as a synonym.
A Hotel PMS is a software solution that supports hotels in all day-to-day operations. From booking and check-in to payment and check-out, a PMS is in constant use. As a central platform, it connects all operational areas of a hotel.
PMS Software is not only used in hotels but also by many other types of accommodation providers. From hostels to conference centres to campsites – every business needs the right software to manage its resources and services.
Technology has become essential in hospitality because it brings huge advantages. To remain profitable month after month, Hotel Management Software supports all key processes.
One of the biggest benefits is automation. Many everyday tasks in a hotel take a great deal of manual effort – with a PMS, these processes can be automated. Staff gain more time to focus on guest service and create memorable experiences.
Automation also helps address the industry’s labour shortage, which was greatly intensified by the COVID-19 pandemic. Many hotels had to close for months and large numbers of employees left the sector for good. Technology eases the burden on teams by taking over time-consuming tasks and enabling better use of internal resources.
All these advantages contribute directly to a hotel’s main goal – increasing ROI (return on investment). A Property Management System helps improve operational efficiency, identifying opportunities to boost revenue or cut costs across all areas.
According to a 2025 study by HotelTechReport, 99% of hoteliers believe that more technology will be used to run hotels within the next five years. 86% say their PMS is the most important system in their daily operations.
For day-to-day hotel operations, a PMS provides a wide range of functions, including:
Beyond the core functions of Hotel Software, a PMS can be expanded with many additional modules for other areas. Some of the most common are:
Some PMS providers only cover the core functions. They focus on the essential operational features of hotel management without offering additional modules. Extra tools are then integrated through open interfaces to partner solutions, which requires a working API architecture and close coordination with other software vendors.
An All-in-One PMS combines the main functions with a wide range of additional features in one hotel software package. This allows hotels to source much of their tech stack from a single provider. A tech stack refers to all technologies used in a business. Instead of working with many different systems, most tasks are managed and controlled centrally.
Having one central point of contact for support, updates and questions is a major advantage. Instead of dealing with multiple providers, everything runs through a single channel. This saves time and effort as there is no need for parallel communication with different partners.
All-in-One PMS systems are modular – hotels do not need to purchase every available function but can choose the ones best suited to their operation. This is especially valuable for long-term cooperation as Hotel Software requirements may change over the years.
No two hotels are the same – each has its own processes and ways of working. A luxury resort has very different software requirements from a small boutique hotel in the city. Modular PMS Software allows hotels to select only the modules they truly need.
Hotels also change their goals, partners and priorities over time. As the property management system is the heart of every hotel, it must adapt flexibly to grow alongside the business. Adjustments to the tech stack should never be a problem and modules should be easy to add or exchange.
Technology evolves rapidly across every industry, including hospitality. New tools, integrations and digital services are constantly emerging. With a modular PMS, these innovations can be integrated quickly without replacing the entire system. A reliable technology partner provides regular updates and new modules to keep pace with developments.
When technology first gained momentum in hospitality, Hotel Management Software was usually installed as an on-premise solution. On-premise means the PMS Software runs on the hotel’s own servers and networks at its location.
In recent years, however, there has been a clear shift from on-premise to cloud solutions. A cloud is a network of servers that enables data storage and the use of software via the internet.
According to McKinsey, the potential business value of cloud technologies is up to 3 trillion dollars – a huge opportunity for hospitality. With so many benefits, most providers now recommend the cloud.
API stands for Application Programming Interface. In the past, most software was developed by writing the core code first and adding the API later as a connection to other systems. This often caused problems when adjustments or changes were needed afterwards.
Today, many software companies such as SIHOT use an API-first approach. In software development, this means that APIs are designed first and the actual code is written afterwards. This makes the integration of different systems much easier.
Even though an All-in-One PMS combines many functions and modules, it will never cover every single feature. That is why, even when choosing an All-in-One PMS, sufficient interfaces to partners remain essential.
Hotels rely on numerous specialised systems – for example channel management, revenue management or spa and wellness solutions. Many of these tools have been in use for years and are proven in daily operations. When switching to a new Property Management System, hoteliers often want to keep their trusted partner solutions. To make this work smoothly, Hotel Management Software must provide a wide range of interfaces to ensure seamless integration.
If a new technology partner is to be added to the existing tech stack, it is a major advantage if an interface with the PMS already exists – or if the PMS provider can deliver a new integration quickly. At SIHOT we offer interfaces to many established partner solutions – an overview is available here if you are interested.
When switching to a (new) Hotel Software, the very first step is to train staff properly. They work with the system every day and must know it inside out to use it effectively and benefit from all its features. Without training, a PMS would create more rather than less work. Depending on the provider, training can take place on-site in multi-day workshops or entirely online.
Even after a detailed introduction, new challenges may arise over time – which makes having a competent support team essential. As updates or technical issues can occur at any time, a PMS provider’s support team should always be available to deliver direct assistance and keep operations running smoothly.
Unfortunately, many providers now outsource their support, which can make a big difference when urgent problems need to be solved quickly. Support should always be reachable by phone and not limited to e-mail enquiries only, as is often the case with many “basic packages”.
Many of the points mentioned above should be considered when selecting PMS Software. The most important criteria include:
Choosing the right Hotel Management Software is a major investment in both time and cost. Introducing a new system involves a great deal of work until you and your team are fully adjusted and able to use it efficiently. That is why it is essential to carefully evaluate in advance which solution best suits your hotel operation.
A new PMS should serve as a long-term partner for many years, if not decades. It must adapt to changes within the business and should not be replaced lightly every couple of years.
Many guests today expect digital services such as online check-in, mobile key or contactless payments to make their stay more convenient and flexible. However, not every solution fits every hotel. What matters is that digital services match the target group and the hotel concept: while business travellers usually value efficient, time-saving processes, guests in a luxury resort may prefer personal service.
Before any investment, it is worth analysing where the greatest bottlenecks occur in daily operations. If reception is short-staffed, digital check-in and check-out processes can provide relief. If internal communication takes too long, automated housekeeping updates can help. The aim is not to replace personal hospitality but to use digital services precisely where they create the most value. Routine tasks can be handled digitally to save resources and leave a modern impression.
The Digital Guest Journey often begins before arrival: guests can share their arrival time online, receive information or book upgrades. Online check-in allows a smooth start to the stay, mobile key solutions reduce waiting times at reception and digital communication makes it easy to request services or make payments directly via smartphone. Check-out can also be handled contactless, giving guests flexibility and easing the workload for staff.
With Hotel Management Software that integrates the Digital Guest Journey, all touchpoints along the stay – from booking to departure – are connected within one system. This reduces manual processes, avoids errors and allows staff to focus entirely on guest service. Digitalisation should therefore be implemented where it provides genuine value for guests and employees. For a deeper dive into digital transformation in hospitality, we recommend our free E-Book.
The use of yield management is expected to become more widespread as hotel managers place greater trust in technology. Through dynamic pricing, room rates adjust flexibly according to capacity, seasonality, competitor prices and many other factors. This increases revenue and works entirely automatically without the need for manual adjustments.
It will also become increasingly important to base decisions on solid data rather than relying on intuition alone. With collected data as a foundation, hoteliers can clearly identify areas for improvement and make decisions accordingly.
In addition, Hotel Software will continue to evolve in the coming years. Artificial intelligence is on the rise and becoming part of everyday life and work. For example, chatbots are becoming increasingly realistic in communication and, in the long run, could handle a large part of guest interactions. Other areas will also show where AI can provide support or even take over tasks entirely.
Technology will therefore play an even greater role in hospitality and support hotels in many different areas.
PMS Software today is far more than an administrative tool – it is the central platform of a hotel operation. It automates daily tasks and frees up valuable time to focus on guests.
Whether online check-in, partner integrations or modular extensions – Hotel Management Software should adapt to the property and grow with its challenges. To remain profitable in the long term, hotels need to embrace digitalisation while never losing sight of personal hospitality.
We are happy to support you in finding the right Hotel Software for your business – simply book an appointment with us.
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