Hotel Technology

What is a property management system and why do you need it?

12 Minutes

Kajal Makhija

What is a property management system and why do you need it?

Kajal Makhija
Published on

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The global hotel property management software market was valued at USD 6,490.38 million in 2022, USD 7,158.24 million in 2023, and is expected to reach USD 14,708.6 million by 2030, expanding at a CAGR of 10.77%.

What is a PMS system? 

So exactly what is property management system?

The property management system (PMS) of a hotel is in charge of making sure that inventory management and online distribution run smoothly for a better guest experience. The front desk and back office of a hotel can run more smoothly with the help of a hotel property management system. Even though cloud computing is nothing new, most companies now advertise their operations as "cloud PMS." Nowadays, a PMS is a must-have software tool for every hotel.

Whether you're running a small B&B, a large resort, or a hotel chain with hundreds of properties, the property management system (PMS) is the backbone of your operation and should be streamlined whenever possible. As a result, the PMS software you pick will be the foundation around which you build the rest of the infrastructure necessary to manage your hotel. 

The transition of manual, paper-based front desk operations, such as guest check-in and check-out, room assignment, rate management, and billing, to a more organized and effective way may be the property management system for hotels' biggest innovation.

These days, PMS systems for hotels have advanced to the point that they can be used for a lot more than just checking guests in. A property management system is now an important part of a hotel's infrastructure because it helps the hotel give its guests a great time. Let's dive in to know more about what is property management system, what is a hotel pms system, what are its functions and more. 

What are the main functions of Property Management System for hotels

By integrating hotel PMS with other tools, property managers can streamline their workflows, save time, and reduce manual errors.  Here are some of the main functions of property management systems in hotels: 

Control dashboard

When you log in to the  property management system, an easy to use dashboard appears. A control dashboard that is easy to read and understand gives a quick look at room availability and guests’ details from pre-arrival, checked in to checkout. A hotel PMS provides data about room supply, occupancy, arrivals, and departures, which likely affect other decisions like daily pricing and yield management.

Channel management

Whether hotels need to release availability or modify rates, everything can be done in the hotel PMS’s channel manager and updated in real time across all booking channels. New online reservations are sent to the hotel PMS via the channel manager.

This gives full control over occupancy and helps to act quickly if needed. Think about using a channel manager with many two-way connections, not just to a few large OTAs but also to regional or niche booking sites, GDS suppliers, and meta search engines.

Control calendar

A calendar is an excellent tool for visualizing and organizing reservations. With an easy-to-use calendar, hotel staff can see what rooms are available and find ways to improve things. For example, if you look at your reservations in an Excel spreadsheet, you might miss a room that is empty but not marked as such. The control calendar automates this, saves a lot of time, and reduces the chances of human error.

Housekeeping management

Housekeeping features assist in maintaining the smooth operation of properties of all sizes. The hotel property management system should automate administrative tasks and make things run more smoothly. This category includes the housekeeping report. The hotel's PMS knows and can help in determining which rooms need to be cleaned or put in order before a guest arrives based on guest checkouts. 

Payment processing

Having an integrated payment processor with PMS can help with getting paid faster and keeping better books. It also gives more accurate information on cash flow and the state of the business. If a property management system for hotels doesn't have a payment processor that accepts most credit cards or a way to connect to a point of sale system (POS), there will be a need to handle payments and everything else related to them by hand, such as reporting, reconciliation, chargebacks, and more. 


Reports and knowledge are the best ways to move property forward. The property management system for hotels must incorporate reporting capabilities. PMS should contain information regarding your reservations, pricing, and occupancy, so let it do all the work.

Online reservation engine

 Direct bookings are among the most lucrative revenue sources for the majority of hotels. When a PMS includes a booking engine, there are no integration issues to worry about. Look for a booking engine that integrates with your website and social media, and make sure it is mobile-friendly and quick-loading. Select a PMS application with a commission-free booking engine.

Guest management

Select software with a guest management module to save time and increase productivity. Guest engagement and guest profile functionality, which acts as a CRM to store information about guests, are important parts. 

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What are the different types of property management system for hotels 

There are several different types of property management systems for hotels, including:

On-premises PMS: These are the first generation of PMS, which are installed and run on a property's own servers and can be customized to meet specific needs. On-premise PMSs can be more secure than cloud-based PMS, as the data is stored on the property's own servers. But they also cost more up front and need IT support and maintenance on a regular basis. Some popular on-premise PMSs include Oracle Opera, Micros Fidelio, IDS, WinHMS, and Hilton HMS.

Cloud-based PMS: These PMS run on the cloud and let users access data and information in real time from anywhere with an internet connection. Cloud PMSs are more scalable than on-premise PMSs. This means you can add more properties or rooms as your business grows. Some popular cloud-based PMS include Little Hotelier, SiteMinder, and GuestCentric.

Know Everything About Cloud PMS!
Guide to Cloud PMS

Channel Management PMS: These PMS connect to online travel agencies (OTAs) and other channels so that rates and availability can be updated automatically and bookings from multiple channels can be managed in one place. PMSs with channel management can help properties save time and cut down on the amount of data entry that has to be done by hand. They can also give a central view of all reservations. Some popular channel management PMSs include Rezlynx, Rentals United, and for Business.

Integrated PMS: These PMS combine multiple functions, like managing the front desk, billing, and accounting, into a single system. Integrated PMSs can make things easier for both staff and guests and reduce the amount of data entry that needs to be done by hand. They can also provide real-time insights into occupancy rates, revenue, and other key metrics. Some popular integrated PMSs include Cloudbeds, Ezee Absolute, Mews, Little Hotelier, Apaleo, RoomKeyPMS, etc.

Specialized PMS: These PMSs are designed specifically for certain types of properties, such as hotels, resorts, bed and breakfasts, and vacation rentals. They have features and functions that are designed to meet the needs of these types of properties, such as managing rooms and rates, billing guests, and managing housekeeping. 

Mobile PMS: These modern PMS are designed specifically for use on mobile devices and can be used by front-desk staff and management while on the go. Mobile PMSs can give you access to data and information in real time, such as the number of available rooms, information about guests, and billing details. Some popular mobile PMSs include Guestfolio, Little Hotelier, and MyPMS.

Each type of PMS has its own benefits and drawbacks, and it's important to choose one that meets the specific needs of your property. Depending on the needs of your property, you can choose a PMS that helps you run your business better and gives your guests a better experience.

Things to consider when selecting a PMS for your property 

A property management system (PMS) is one of the most important tools needed to run your property and make guests' stays better. When choosing cloud PMS hotel software, there are a number of things to think about. Some of these are based on preferences, while others are based on what makes a hotel special. Here are some key factors to consider when selecting a hotel PMS:

Ease of use

A hotel PMS should be easy to use, with a simple and straightforward interface. For instance, a hotel PMS should give real-time information about things like occupancy rates, revenue, and other important metrics. Little Hotelier is a PMS made especially for small hotels and bed and breakfasts. It offers an intuitive, user-friendly interface that makes it easy for staff to manage reservations, billing, and other tasks.


Integrations can streamline workflows and reduce the need for manual data entry. For example, a hotel PMS that works with your accounting software can automatically update financial records and get rid of the need to move data between systems by hand. By integrating with channel managers, you can also save time because availability and prices will be updated in real time instead of having to be updated manually.

Reporting and Analytics 

Accurate and up-to-date reporting is essential for making informed business decisions. The information can be used to figure out how to set prices and how to run promotions and marketing campaigns.  


Automating repetitive and time-consuming tasks can free up staff time for more strategic work. For example, a hotel PMS can automatically change the number of rooms available and their prices, make invoices, and send guests reminders. Automating tasks like check-in and check-out can also make them easier, giving staff more time to do other important jobs.

Mobile Accessibility 

If the PMS has mobile access, the staff can run the property from anywhere using their phones or tablets. This can be especially helpful for frontline and back of the office staff who are always moving. It lets them respond quickly to guest requests and keep track of reservations and billing in real time.


Every property is unique, and a hotel PMS should be customizable to meet the specific needs of each property. Some features that can be changed include the ability to add custom fields, make custom reports, and change email templates. Customizing the hotel PMS to match your brand can also improve the guest experience and how people think of your property as a whole.


Any PMS needs to be very safe because it stores sensitive information like credit card numbers and guest information. A great PMS software example is Mews, a cloud-based PMS that is PCI compliant and has a secure hosting environment with strong security features to protect against data breaches and unauthorized access.

Customer Support 

It's important to have good customer service so that any problems can be solved quickly and well. A property management system for hotels is an important tool for managing a hotel property, and it needs good customer support to make sure that all problems are fixed quickly and effectively. Hotels should look for a PMS with 24/7 support, online resources, and training materials to help get the most out of the system.


As hotel business grows, the PMS should grow with it. A PMS software example is Cloudbeds, which is a PMS that is scalable with the ability to add more properties or increase the number of rooms. This ensures that the hotel PMS software can support the business as it grows and evolves.


When choosing a hotel PMS, it's important to think about the total cost of ownership, which includes setup fees, monthly or annual fees, and any other costs, like those for integrations, customizations, and support. Look for a PMS that offers an affordable way to get the features and functions that are needed without breaking the bank.

By thinking about these things, hotels can make sure to choose a cloud PMS hotel software that meets their needs, makes their business run more smoothly, and makes their guests' stay more enjoyable.

Top hotel PMS provider in the market 

The following property management systems have all of the above features and more:


Cloudbeds: Instead of worrying about the day-to-day operations of your business or how to expand, you can put your attention where it belongs: on your guests. The cloud-based hospitality management platform is changing the business world with its PMS, channel manager, booking engine, revenue management tool, payment processing with integrated terminals, guest engagement solution, digital marketing services that do the work for you, and marketplace of third-party apps. 


Clock Software has a PMS, a POS, mobile check-in, sales software, and a solution for meetings and events. They also have an integrated suite of cloud-based software solutions for hotel management, distribution systems, and apps to keep guests interested.

Front Desk Anywhere

The cloud-based Front Desk Anywhere hotel management software is meant to help cut costs, speed up processes, and bring in more money. A property management system (PMS), a booking engine (BE), a channel manager (CM), a payment gateway (PSD), and a revenue management platform (RMP) are some of the options that are available.


LittleHotelier's hotel management software is designed to meet the specific needs of smaller hotels. It comes with a property management system (PMS), a mobile app, a booking engine, a channel manager, and an app store for connecting to other systems.


Mews is a cloud-based software company with its headquarters in Amsterdam. It has a suite of fully integrated products, such as a property management system (PMS), a booking engine, a revenue management system (RMS), a payment system, and a marketplace with over 600 third-party apps and integrations.


ResNexus is a cloud-based property management system with its headquarters in Utah. It offers a wide range of services and products, such as a reservation system, payment processing, a web booking engine, marketing services, and connections to third-party suppliers.

Ezee Absolute 

Ezee Absolute is a cloud-based property management system (PMS) that is designed for hotels, motels, resorts, and other lodging establishments. It offers a range of features that help manage various aspects of hotel operations, such as front desk operations, housekeeping, billing, reporting, and more. 


RoomRaccoon was made for small, independent hotels. It has a PMS, online check-in, automated accounting, an upsell solution, and connections to a lot of other platforms.


Hotelogix is a cloud-based property management system (PMS) with its headquarters in Singapore. Its goal is to make running a hotel easier by offering things like an online booking system, a channel manager, and a mobile app.


Hotels that are in the process of deciding between several hotel property management system (PMS) providers would greatly benefit from drawing a picture of their entire technology infrastructure and how its parts interact with one another. 

A possible hotel PMS software solution's cloud-based, real-time occupancy, automation, and revenue management features are also important for the business and guest services of the hotel. Also, think about combining a channel manager, a booking engine, OTAs, and POS systems for streamlined control of a hotel's rooms, rates, and sales channels. The hotel PMS software should also offer features like invoicing, messaging, and credit card payment processing, as well as user-friendly interfaces for front desk workers, guests, and travel agencies. 

Hotels should use cloud-based hotel PMS solutions that work with mobile devices and the hotel's website to improve direct bookings and service quality. PMS providers can help with hotel PMS integrations with other systems or tools. Quoality can help integrate with your current PMS.

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