Asia Pacific Hotel & Hospitality Management Software Market

Market Overview

Asia Pacific hotel & hospitality management software market size by property management is expected to grow at CAGR 9.4% during the forecast period 2019–2026.

Hotel and hospitality management software (HMS) helps hotels perform daily operations, such as manage reservations, the point of sale transactions, check in guests, and coordinate housekeeping, as well as enhance the guest experience using CRM (customer relationship management). Presently, it has become crucial for the hotel and hospitality industry to improve its services for the tourism. According to United Nations World Tourism Organization (UNWTO), arrivals of around 324 million tourists registered in Asia-Pacific region in 2017. According to Grant Thornton, countries such Thailand, Malaysia, and Indonesia in Asia-Pacific region are rapidly adopting cloud-PMS software due to younger hotel infrastructure and a high number of new hotel openings.

According to the UN World Tourism Organization, international tourists’ arrivals worldwide are projected to increase by 70% between 2013 and 2030, thus, reaching 1.8 billion. Currently, tourism accounts for 9.5% of the world GDP and is expected to reach 10.3% by 2024. Hospitality and tourism sectors have emerged as the key value drivers in a competitive economy, especially in emerging economies where growth has shifted from goods and products towards the service sector.

Market Dynamics

The Asia Pacific Hotel & Hospitality management software is expected to witness significant growth during the forecast period. According to UNWTO, Asia-Pacific has registered around 320 million tourist visitors in 2017. East Asia has historically performed well in the region, led by Japan with growth in arrival by 19% in 2017. Strong safety and health conditions, state of the art, and ICT-equipped infrastructure are the prominent factors for the growth of the hotel and hospitality management market. The rise in the number of tourist arrivals has increased the number of hotel rooms, which has consequently put the burden on management of the hotel administration. Under such circumstances, hotel management software plays an important role in easing out the hassles and offer better solutions.

Hotel management contract is an agreement between a management company and a property owner leasing the property for development. The operator assumes responsibility and looks after the management of the property by providing direction, expertise, and supervision. Asia-Pacific has the healthiest growth rate in terms of HMA (hotel management agreements) deals worldwide. 1,020 HMAs were signed in 2017 by international operators in the region with the growth rate of 19 percent between 2015 and 2017. Hotel management software tools such as central reservation system, booking engine, and property management would help in saving operational time and run the business efficiently with improved managerial efficiency.

Since the technology is changing at an unprecedented pace, hotels and hospitality industry is trying to employ the upcoming technologies available in the market to remain competitive in the industry. As per the survey conducted by TripAdvisor in 2013, 87% of travelers use smartphone and 44% use tablet while traveling. Therefore, hotels are rethinking the aspects of the hotel experience that are offered to the customers. Compatibility of these devices and connecting it with hotel infrastructure through management software has become the matter of prime importance. Considering the future growth prospects of Asia, it has important for hotel and hospitality organizations to adapt to the digital revolution and understand how to create and hold major market share.

Regional Analysis

Geographically, the Asia-Pacific region considered in the report includes countries as Japan, China, India, Australia, South Korea, and Rest of Asia-Pacific countries.

In Asia Pacific region, China holds the largest market share in the HHMS software market.

 The hotel & hospitability industry in China has flourished in the last decades and is likely to experience better development in the coming years. According to the World Tourism Organization (WTO), China would emerge as the leading tourist destination by 2020 and is likely to register 130 million tourists annually. However, China-based hotel companies are relatively small and immature as compared to foreign multinational hotel companies. Thus, it is necessary for local hotel companies to adopt advanced operational management methods at earliest.

According to the Travel and Tourism Competitiveness Report published by the World Economic Forum, Japan has been ranked fourth in 141 countries in the world and is the leading country in Asia-Pacific region in terms of health & hygiene, safety & security, and cultural resources & business travel. However, due to the implementation of minpaku regulations in Japan regarding hospitality, it might show a negative impact on heightened competition. East Asia has historically been the best performer in the APAC region in terms of the number of tourist arrivals and japan was the major contributor among other countries.

Hotel & hospitality sector of India comes under the spectrum of travel and tourism that contributes around 8%–9% in India’s GDP. However, due to two major government policies–demonetization and GST along with banning sales of liquor located within 500 meters of any national and state highways have sets back the hospitality industry’s hopes and created disruption and turbulence to some extent. According to Hotelogix, the internet and online reservation service plays an important role in implementing hotel software in India in reaching to the global audience.

The Australian hotel is the major economic driver at a local, state, and national level. According to the Australian Hotels Association (AHA), 300,000 people in over 6,000 Australian hotels are generating USD 11–14 billion per year in domestic economic activity. The tourism Australia identified the need for new investment in infrastructure, including hotel accommodation to withstand as emerging economies of Asia. Australia’s strong fundamentals, maturity, and transparency have led to steady buying activity from Asian investors, who see potential yields in the booming market.

Segmental Analysis

The Asia Pacific Hotel & Hospitality Management Software market are segmented by product type, hotel type, deployment model, service system and region.

On the basis of Product Type, the Asia Pacific HHMS software market is segment by CRS (Central Reservation System), channel manager, booking engine, digital services, property management, others. A hotel CRS constitutes of various modules including reservation, profiles, groups and blocks, rate and inventory control, administration, reporting, global distribution interface, and PMS interface. As technology continues to advance, big data and smart algorithms technology allow the CRS to deliver geo-targeted pricing and personalization such as delivering unique one-to-one pricing to individual travelers. Digital services in the hotel and hospitality industry offer innovative guest experiences. Hotel and hospitality management software are offering new digital services such as a virtual concierge, which provide guests with conversational and contextual assistance.

By Hotel Type, the market is segment by business hotel, resorts and spas, boutique hotel, and others. The hotels offer easy accessibility, Wi-Fi, and quick check in\out procedures, complimentary newspapers, and free local telephone calls. Hotel and hospitality management software provide exceptional service to satisfy the demands of today's corporate travelers. It enables a seamless check-in and check-out process, easy to navigate, offers corporate rate logins, upgrades, and loyalty options to the business travelers. Hotel and hospitality management software provides solutions to fulfill the specific needs of resort and spa businesses. Highly personalized service is an important aspect of the boutique hotels. Hotel and hospitality management software provides more operational automation in terms of bookings or invoicing at large boutique hotels further increasing the growth of the market in the segment.

Based on Deployment Model, the Asia Pacific HHMS software market is bifurcated by on-premise, and on-cloud. On-premise software is generally priced under a one-time license fee which is based on the number of users and organization size. There is capital investment in hardware and upfront license fee for software support, training, and updates. However, on-premise hotel and hospitality software enable a high level of customization, offer greater control over data. The other benefit on-premise hotel and hospitality management software are data security, back-up, and disaster recovery, and greater efficiency in operation. Cloud-based software is hosted on the servers and accessed through a web browser. Cloud-based hotel and hospitality management software are usually easier to integrate with third-party solutions such as central reservation systems, revenue or yield management systems, and channel managers.

By Service, the Asia Pacific HHMS software market is segregated by system and integration, professional service, managed service, other. Hotel property management systems integration provides an easy way for hoteliers to use all of the data collected by the system and enable them to deal with pricing, promoting, segmenting according to demand. Additionally, by integrating other solutions, hoteliers can access to reports, analytics, guest reviews, and ratings, which enable them to enhance hotel service and drive in more guests. Professional service solution increases operational efficiency, enhance the guest experience and generates more revenue for the hotels. It supports all variety of processes from (point of sale) POS activities to operations in the central office from the preparation of menus and recipes to tracking order statuses. Managed services constantly monitor the stability and security of hotels IT network for maximum uptime in all locations without increasing in-house IT staff.