Global Online Hotel Booking Software Market was valued at USD 15.63 billion in 2019 and is projected to grow with a CAGR of 6.2 % to hit USD 25.3 Billion during the forecast period of 2021-2029.
An online hotel booking system is a software solution that enables travelers and guests to self-book rooms and resorts to stay by paying online through the website or other channels. Online hotel reservation software provides the best tools to run and scale a business operation and is being rapidly implemented by hotels worldwide to allow guests to make secure online reservations. A hotel booking system leverages reservation technology to help customers passively accept bookings and make payments online.
The growth of reservation software for managing every aspect of the hotel and hospitality business, from marketing to distribution, is significantly driving the market growth. Online hotel booking software offers benefits, such as smarter insights into business, a secure solution, reduced workload, prevents cancellations and no-shows, and creates a better customer experience.
Hoteliers can track growth in the number of bookings with real-time reporting. They can avoid double bookings from online travel agents (OTAs) with channel management and also oversee all partnerships and commissions. It also helps managers to assign inventory and staff to individual activities, manage their employees, and break down day to day priorities.
Android accounts for more than 80% of smartphone users today; hence, captivating the masses on Apple’s operating system needs greater financial backing and spending capacity. Catering to the iOS crowd can help hotel managers generate more revenue in the short term. Hotel management software for iOS clients, such as Nano Hotel Booking, informs users of room occupancies and vacancies and how many rooms will be freed up in a set period of time.
Some software applications enable users to craft seasonal prices and record each room’s appliances, such as a refrigerator, TV, or telephone. Roombler is iOS-compatible booking engine software that enables unlimited users to work within the app, drag, and drop bookings for sudden reservation date changes, add multiple rooms to a single reservation, and add charges and payments to a booking
Hotel booking software for android clients features both department-specific apps for staff, guest, and concierge and enable users with operating efficiency across their property. Popular hotel software with android mobile compatibility offer features such as internal messaging to keep in touch with staff members and also to manage and assign tickets. This further enables front desk employees to integrate a property management system (PMS) and access important guest information, allowing them to track requests, such as incidents, reservations, transportation services, and wake-up calls.
Online Travel Agents (OTAs) are third party booking websites that offer travelers an easy-to-search database of hotel providers. Customers can book their hotel arrangements directly from their sites. Some OTAs also provide insurance for medical emergencies and trip cancellations.
Online Travel agents' service to customers is available 24/7. Online travel agents also enjoy discounts on travel for them and their families. A travel agent can save up to 75% on travel, including hotels, resorts, car rentals, cruises, theme parks, and vacation packages. OTAs, such as Booking.com. Skyscanner, and TripAdvisor, offer professional travel agents a platform and program with special features to easily book and manage reservations for their clients, as well as the choice, diversity, and seamless experience.
The outbreak of the COVID-19 pandemic has kept people around the world quarantined in their homes for most of 2020. Governments have put restrictions on movements and banned travel all over the globe to curb the spread of the disease. Undoubtedly, this has caused people to want to escape from isolation and enjoy life like before.
Governments also seem to lift bans and ease travel restrictions in the second half of 2020due to the declining GDPs and disrupted large and small businesses. As people begin to travel again, the hotel industry can expect to see a drastic growth curve in bookings during this period, which has been impacted in terms of both revenue and employment rates earlier this year
Against the backdrop of changing lifestyles, customers are keen on brand performance and comparing it with others to meet their expectations. Online visitors have access to an array of tech tools that allow them to get exactly what they want. It is of utmost importance for hotel managers and booking software providers to get feedback about customer experience.
Each interaction leaves a lasting impression forming an opinion about hospitality. Therefore, there is a growing demand for optimizing the customer experience and prioritizing customer service and satisfaction at every touchpoint. Growing guest demand is driving the focus on the dynamics of value creation and delivering experiences that are simple, immediate, and personalized. Big hotel chain companies like Ritz-Carlton are known to deliver engaging guest experiences beyond features, products, and processes.
The flourishing travel and tourism industry is significantly driving the online hotel booking and reservation software market. Key players are focusing on the on-demand deployment model, also referred to as Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS), to deploy their software and services in a virtual environment. This approach reduces the cost associated with purchasing, servicing, and powering server-class machines.
The subscription model enables scalability with a low cost of ownership. It also ensures the integrity of data back-up, reducing the risk of security breaches. Technological advancements, strengthening robust internet infrastructure, and widespread adoption of new technologies is expected to drive the adoption of cost-efficient software for online hotel booking offering attractive revenue growth opportunity during the forecast period.
Complex deployment and integration are some of the critical restraining factors affecting the growth of the online hotel booking software market growth. Integrating legacy systems, hotel Property Management System (PMS), an interface between the hotel PMS, and other solutions is a complicated task that involves a high initial cost of deployment. Transferring data between solutions is one of the most recurring queries towards hospitality software providers.
The lack of a skilled workforce to complete the transferring of information from legacy solutions to a newer PMS is hampering the market growth. Thus, many providers are switching to cloud-based property management systems that easily connect to other software solutions, allowing for a data transfer with minimal effort.
Vast applications of the Internet of Things (IoT) in the hospitality industry are paving the way for its improvisation and advancement. IoT and Cloud Computing have revamped the way businesses operate, introducing high-tech smart rooms in luxury hotels to customers. Therefore, umpteen companies are adopting advancing technologies to design software that meet customer expectation. For instance, Hilton Worldwide Holdings Inc., an American multinational hospitality company, is developing its own proprietary IoT platform.
Marriott recently entered into a partnership with electrical parts giant, Legrand’s IoT program and Samsung’s ARTIK cloud-based IoT platform, in order to bring model smart rooms in selected hotels. IoT has the potential to benefit hotel groups and help start-ups to gain a competitive edge over tough competitors such as Airbnb and HomeAway.
It will make the hotelier efficient and deliver more value to their guests at lower costs. It will be advantageous in terms of detection of occupancy, personalization, inventory management, maintenance, and cross hotel linkage. In this way, the Internet of Things (IoT) is anticipated to be the future of the hotel industry and the next big thing, along with Artificial Intelligence.
The U.S. hotel booking industry generated USD 218 billion in 2018 and is anticipated to grow remarkably during the forecast period. Overall, North America's online hotel booking software market is expected to witness significant growth and hold the largest market share during the forecast period. The U.S and Canada are projected to drive the market growth, owing to the early adoption of new technology, rising investments in R&D, and the presence of giant SaaS software providers in the region.
The inclination to experience adventure and entertainment has increased travel and tourism to North America. This has also increased the occupancy rate of hotel rooms in the region. There is a growing demand for on-demand deployment model, or Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS), among hoteliers to deploy their software and services in a virtual environment. Key market players in the region, such as Clicktripz and Cloudbeds, among others, offer a subscription model that enables scalability for end-users with a low cost of ownership. Such factors are driving the North American Online hotel booking software market.
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