Hotel & Hospitality Management Software Market: Global Size, Share, Trends, Growth and Forecast, 2022-2032
The global hotel and hospitality management software market size was estimated at USD 2.1 billion in 2019 It is expected to reach USD 5.8 billion by 2032, growing with a CAGR of 6.7% over the forecasted period of 2022 2032. Hotel management software allows hotel operators and stakeholders to modernize their administrative tasks while also raising their bookings in both long-term and short-term. Moreover, the increasing changing trends in technology and consumer behavior are further projected to boost the hotel and hospitality management software market.
Hotels are focusing leveraging new technologies to lower expenses on document processing through automation. This is boosting the adoption of hotel and hospitality management software. The software helps reduce the dependency on manual records and aids in cost-effective labor scheduling based on the demand as per tourist footfall in each year and each season. The increasing business scope for vendors is also credited to the rising demand for mobility. Moreover, hotels are investing in tablets and mobile devices to reach the customer who uses digital check-in. Henceforth, these factors are further expected to contribute the hotel and hospitality management software market growth.
The increase in cloud integration is one of the biggest significant factor in hotel and hospitality management software market trends. Moreover, cloud based hotel and hospitality management software in crucial for small size hotels that lack in-house IT expertise to
manage, deploy and ip-grade on-premise management applications. Furthermore, in the cloud-based system, the end user depends on sellers for time-to-time update and correction of technical glitches and also helps in reducing the extra expenses. There are also other benefits of cloud-based software, including integration, which is commonly used in office applications, social CRM, and automated cloud data backups. There are the factors which further raise the adoption of cloud-based hotel and hospitality management software.
The hotel and hospitality management software helps hotel owners give more attention to mobile apps as it gives great access to various self-service options. Moreover, for the hotel owners, the mobile check-in apps help restrict the need to give a front desk service so the staff can have more attention towards others tasks instead. Furthermore, few of the advantages of using a hotel and hospitality management software includes saving time in check-ins, nice communication with guests before their arrival, book dinner, raising profit by allowing guests to upgrade their rooms and others.
The focus of every hotel is to sell more rooms and provide great service to their customers so that they earn more and more profit. But without a hotel and hospitality management software customer have to depend on phone calls to make bookings. Moreover, hotel and hospitality management software has increased online bookings which is an effective and essential tool that will significantly boost bookings as it helps in allowing users to make secure reservations on the hotel’s own website. Moreover, if the hotel is registered on any social media platform, the online booking engine can also be utilized for making direct booking. Furthermore, the hotel and hospitality management software also helps in digital advertisement of their hotels and services, which also helps customers reach in a less time.
Asia-Pacific market holds the major share in the year 2019 and it expected to retain its dominant during the forecast period. The raising adoption of the cloud-based hotel management software is effective time saving for any size organization. Therefore, the hotel and hospitality management software market is projected to gain sellers' significant business opportunities during the forecast period.
Hotel type Insights
The business hotel segment dominated the global market by hotel type, which accounts for more than 50% share in the global hotel and hospitality software market in 2019. Moreover, the business hotel provides the guests with the facilities like unified communication capabilities that make the guests have conference and meeting, which helps attract more and more customers. Business hotels have various building automation and software or mobile-based technologies to give the guest an excellent experience.
By type, the guest service management system is expected to grow at a higher than expected CAGR during the forecast period. Raising demand for automated real time efficient guest service and increasing demographic growth are further expected to increase the market growth in the upcoming years.
Data privacy and security provided by on-premise application software will provide lucrative opportunities for the growth of the market. The on-premise segment was the major segment which is accounted for more than 45% share in the global market. This growth is due to the raising adoption of on-premise application software on account of increasing trend to improve business productivity.
Key Companies Profiled
The global hotel and hospitality management software market is characterized by the presence of various small and big players. The major market player includes Amadeus IT Group SA, Cisco Systems Inc., Honeywell International Inc., Johnson Controls International Plc, NEC Corp., Oracle Corp., Sabre Corp., Salesforce.com Inc., Schneider Electric SE and Siemens AG. As the market is competitive in nature, the players indulge in raising their competitive share through strategic initiatives like mergers, new product and acquisitions.