24 Jun 2024

Custom Hotel Management Software Features: Identifying Core Financial Information


Nida Akbar

Twitter Linkedin Facebook
Custom Hotel Management Software

Developing your own hotel management software is a challenging but worthwhile task that can lead to significant changes in the way hotels are run, increase guest satisfaction, and enhance revenues. Whether you are a software developer, a hotel owner, or an entrepreneur who is planning to venture into the hospitality industry, it is imperative to learn about the features and the money involved. This blog will provide a step-by-step process for developing a custom hotel management system, its features, and the costs involved.

Here are some of the reasons why opting for custom-made hotel management software features is more beneficial than resorting to the readily available ones. This makes it possible to have features that address specific needs of your hotel, and this is done in a way that does not interfere with other aspects of the business. When it comes to the needs of your hotel, custom software can help to improve efficiency and profitability, deliver a better guest experience, and offer a winning proposition in the competitive hotel market.

Therefore, to sustain competitiveness in the hotel industry, there is a need to adopt technological changes. Let me explain how the current hotel management software can help you transform your hotel management to a whole new level.

Hotel management software

Understanding hotel management software

Hotel management software features are a complex and lucrative product that can revolutionize the hotel business and enhance its performance, guests’ satisfaction, and revenues. If you are a software developer, a hotel owner, or an entrepreneur in the hospitality business, then it is high time to learn about property management system (PMS) features and costs. This blog post will walk you through the creation of custom hotel management software, including the process flow, important functionalities, and cost considerations.

There are several ways in which customized hotel management software is likely to be more effective than the off-the-shelf alternatives. This enables the provision of specific solutions that would best suit the requirements of your hotel, thus complementing other procedures and programs effectively. Thus, when it comes to your hotel, the custom software development will help to optimize its work, improve the quality of service, and stand out among competitors.Custom Hotel Management Software

Importance of Custom Solutions of hotel management software

Among the most significant advantages of using custom software are the automation of various processes, for instance, room booking, check-in and check-out procedures, and inventory management. Automating a process takes out the human element that is prone to errors, improves productivity, and allows the employees to concentrate on providing quality customer service. Also, a properly developed software product can be a source of information and business intelligence to help you optimize your business processes and increase profitability.

The following are some of the main features of hotel management software:

The process of creating software for hotel management entails incorporating the following features that are essential for the proper running of a hotel:.

Reservations: These are a critical component of any hotel management solution because they are the central tool for organizing and managing bookings. It should allow:

  • Online Booking: An easy-to-use online booking system for guests, which should be connected with the hotel’s official website and popular OTAs like Booking.com, Expedia, and Airbnb.

Also Read : ​How to create a booking app like Booksy: Features, Cost, and Business Model

  • Real-Time Availability: Some of the features include a real-time update of room availability to avoid double bookings.
  • Automated Confirmation and Reminders: such as sending out automated booking confirmations and reminders through emails or text messages.

front desk management : Accurate and efficient front desk management is vital when it comes to delivering quality service to guests. Key functionalities include:

  • Check-In/Check-Out: are Simplified procedures for checking in and checking out the guests.
  • Room Assignment: Room allocation of guests and their preferences and availability of rooms at the hotel.
  • Guest Profile Management: Comprehensive guest histories with information on previous visits, preferences, and requests.

Housekeeping Management: Housekeeping management is responsible for maintaining the cleanliness of the rooms. Features should include:

  • Task Scheduling: Scheduling of housekeeping activities without manually implementing them depending on the check-ins and check-outs.
  • Status Tracking: real-time tracking of the room state: clean, dirty, or in progress.
  • Inventory Management: Housekeeping product and supply control and monitoring.

Billing and Invoicing: Accurate billing and invoicing is a critical function of hotel operations. Key features include:

  • Payment Processing: The feature of supporting numerous payment gateways for processing credit and debit cards and digital wallets.
  • Automated Invoicing: Creating the invoices and sending them to guests via email.
  • Financial Reporting: Weekly and monthly financial services summaries of revenue and expenses as well as the overall profitability.

Channel management : it is the process of managing a hotel’s room inventory and rates across different booking channels. Features include:

  • Rate Management: The option to change rates for the rooms and distribute them to the OTA’s or any other sales channels with ease.
  • Inventory Synchronization: Synchronization of room availability at the time of booking so as to avoid a situation where more people are booked in a particular room.
  • Channel Analytics: This will include the performance of each booking channel in relation to the number of bookings made.

Customer Relationship Management (CRM): The CRM module assists in cultivating and sustaining a good and healthy relationship with the guests. Features should include:

  • Guest Communication: Means of interaction with guests in pre-arrival, during the stay, and post-stay phases.
  • Loyalty Programs: Maintaining and overseeing the guest loyalty programs and rewards.
  • Feedback Management: Gathering and studying the comments of the guests to enhance the services.

Reporting and analytics: Reporting and analytics are important functions that are used to inform the management of the organization. Key features include:

  • Occupancy Reports: A report of the room occupancy and the trends.
  • Revenue Reports: A specific breakdown of revenues for each room, service, and time of the day.
  • Performance Dashboards: Some of the specific tools include visual dashboards that display key performance indicators and metrics.

Integration with Third-Party Systems: This is where the integration of the hotel management software with other systems and services comes in handy. Integrations to consider include:

  • Property Management Systems (PMS): In this way, the proposed system can be integrated with the existing PMS for centralized operations.
  • Point of Sale (POS) Systems: This includes interfaces with POS systems in restaurants, bars, and shops as they are found within the hotel.
  • Accounting Software: Fiscal integration with the accounting software for improved bookkeeping and financial management systems.
  • Guest Services: Other features include integration with third-party services such as those that are offered within the room, such as ordering food, and services such as concierge services and other local attractions.

Mobile Accessibility:  the advancement in the use of technology and gadgets, mobile accessibility is very important. Features should include:

  • Mobile App for Staff: An application for the staff to facilitate the daily tasks on the mobile application, such as housekeeping, maintenance, and the front desk.
  • Guest Mobile App: An application that allows the guests to book the rooms, check-in, order services, and share feedback, thus improving their experience.

Security and compliance: It is crucial to protect the guests’ data and meet the requirements of the legislation. Features should include:

  • Data Encryption: Ensuring that the information of the guests is protected through the use of encryption techniques.
  • Secure Payment Processing: ensuring patient information is protected in accordance with the PCI DSS (Payment Card Industry Data Security Standard).
  • Privacy Policies: Compliance with data protection policies like GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act).

The following are some of the features that can be incorporated into the custom hotel management software to improve the performance and revenue of hotel businesses. This way, you will be able to come up with a solution that is customized to the specific needs of your hotel, enhance the experience of the guests, and gain a market edge.Transform Your Hotel Operation

Development Process of hotel management software

Developing a hospitality software solution for building a hotel involves several steps, which start from the design stage up to implementation and support.

Gathering and Analysis of Requirements: The first step is to gather the requirements of the product that is to be developed. This involves:

  • Stakeholder Interviews: Gathering feedback from the employees and management of the hotel industry to identify the challenges and requirements.

Also read : How to Keep Track Of Employee Performance with Latest technologies?

  • Market research: looking for the weaknesses and strengths of competitor software and what may be the unique features of your own software.
  •  Technical Feasibility: Reviewing the practical viability of the suggested features and linkages.

 User Stories and Use Cases: Listing out the user stories and use cases to describe how various users and stakeholders will engage with the software application.

  •  Analysis and Design: The next step is to plan and design the software after the requirements have been stated. This involves:
  • Project Plan: Creating a well-coordinated work schedule, setting up milestones, and identifying the resources needed for the project.
  • UI/UX Design: designing user interfaces (UI) and user experiences (UX) that are easy to use and navigate by end users.

Also Read : Can Virtual Reality Affect Mobile App’s UI/UX?

  • System Architecture: In this case, it involves developing the system architecture, which includes the database structure and software modules.
  • Prototyping: constructing mockups or wireframes that depict the design and structure of the application before programming commences.

Development: This is the third phase of the software development life cycle and entails the writing of the actual code that makes the software. Key activities include:

Also Read : DICOM Medical Imaging Software Development: Factors & Financial Considerations

  • Backend Development: Writing the server part of the application, database access, and the integrations.
  • Frontend Development: This involves designing the part of the application that the client will interact with to access the services to be provided.
  • API Development: Designing RESTful APIs for third-party systems and service integration.

Testing: It is important to test the software extensively to make sure that it does not have any flaws or issues. Testing activities include:

  • Unit Testing: Verification of individual components or modules as and when they are put into the system.
  • Integration Testing: Checking the sides of the interaction between various elements and subsystems.
  • User Acceptance Testing (UAT): This requires engaging people who will be using the software to test it and see whether it fits their needs.
  • Performance Testing: Hence, it is essential to check if the software can function optimally even with increased traffic.
  • Security Testing: Performing security audits to establish weaknesses and their remediation.

Also Read : Which AR/VR Testing Tools Should You Use For Your AR/VR App?

Deployment: When testing is done, the software is now ready for deployment to the intended clients. This involves:

  • Server Setup: Establishing the production server environment.
  • Data Migration: Transfering any historic data into the new system in case there was any.
  • Go-Live: Installing the software and getting it ready for the users to start using it.
  • Training: Offering hotel staff orientation to make them aware of the new procedures to be used in the new system.

Support and maintenance: After the implementation process, it is crucial to provide support and maintenance for the system to run efficiently. This includes:

  • Bug Fixes: Debugging any problems that may occur in the application once it has been deployed.
  • Updates: maintaining the system and adding new functionalities as suggested by the users and as a result of the advancements in latest technology.
  • Technical Support: Assisting the users in case of technical issues or concerns that they may have encountered.
  • Performance monitoring: it is the ongoing observation of how the software operates and functions to make sure that it is still working optimally.
  • Security Patches: It is also important to update the software on a regular basis in order to protect against new threats.

When implementing the above stages, you can be assured of coming up with comprehensive and efficient hotel management software that fits your hotel’s needs, improves its operations, and delivers quality services to your clients.

Also Read : Ship Management Software Reshaping the Logistics Industry: Harnessing the Potential!Custom Hotel Management Software

Cost Estimation

Basic System: This ranges from $20,000 to $50,000.

  • Features: Some of the features that are usually found in these systems include basic reservation management, simple billing and invoicing, basic reporting, and a simple user interface.
  • Technology Stack: low level of web technologies with moderate use of built-in functions.
  • Development Time: It usually takes 3-6 months.
  • Team Size: A small team of developers, which could comprise a project manager, one or two developers, and a part-time designer.
  • Use Case: Ideal for small hotels or bed-and-breakfast businesses that aim to streamline certain aspects of their operations.

Mid-Range System: 50,000 to 100,000$

  • Features: Features include advanced reservation management, front desk operations, housekeeping management, comprehensive billing and invoicing, detailed reporting, and basic CRM features.
  • Development Time: Usually, it takes between six months and twelve months.
  • Team Size: A team of 6–10 people, including several developers, a UI/UX designer, a QA engineer, and a project manager.
  • Use Case: Especially suitable for medium-sized hotels that aim to boost business performance and increase guests’ satisfaction.

Advanced System: Between 100,000$ and  200,000$

  • Features: All the features present in mid-tier systems, plus the ability to manage CRM, sales channels, mobile applications for guests and employees, extensive analytical tools, a wide range of third-party integrations, and custom features to meet the needs of a particular company. 
  • Technology Stack: The latest web app and mobile application solutions with full integration as well as a highly reliable platform.
  • Development Time: Usually it can take 1 year or even more, 12–18 months.
  • Team Size: This can be a large team of people, which can include frontend and backend developers, mobile developers, UI/UX designers, QA testers, a project manager, and may also include data analysts and security experts.
  • Use Case: Most suitable for big hotels or hotel groups that wish to deliver an exceptional guest experience and effective management of their operations.

It is always preferable to anticipate possible problems and set realistic goals with the development team to avoid conflicts and delays.

Requirement Analysis and Planning: Between $5000 and $15000.

  • Activities: stakeholder interviews, market research, technical feasibility assessment, user stories, use cases, and project charter.
  • Deliverables: These include the detailed project plan, the initial requirements document, and a prototype or wireframes.
  • UI/UX Design: The most common investments are in the range of $5,000 to $20,000.
  • Activities: developing user interfaces, user experience flows, and visual design aspects.
  • Deliverables: concept app designs, mockups, and prototypes, as well as design specifications and guidelines.

Development: $50,000-$150,000+

  • Backend Development: Itinerary: server-side scripting, database management, API. 
  • Integration Development: Integrating with third-party applications, including payment processors, booking systems, and even financial software. 
  • Deliverables: It should also include functional software that has the necessary features and the capability to integrate with other software.

Testing: $10,000-$30,000

  • Unit Testing: Controlling the functioning of individual components.
  • Integration Testing: Checking whether the components and third-party services are correctly integrated and operate as intended.
  • User Acceptance Testing (UAT): To ensure the software meets the user’s needs.
  • Performance and Security Testing: load and security testing to ensure the software meets the expected performance and is protected from possible threats.

Also Read : India’s Tech Evolution: Digital Immune System to Strengthen Cybersecurity with IoT and Mobile App Development

  • Deliverables: A software program that has been thoroughly tested, with all the bugs ironed out prior to release.

Deployment: $5,000-$10,000

  • Activities: installing the production environment, transferring data, and putting the software into operation.
  • Deliverables: The best case is when the software is fully functional and can be run on the infrastructure selected.

Maintenance and Support: $10,000–$30,000 per year.

  • Activities: This includes continuous debugging of software, application upgrades, customer services and assistance, and system performance tracking and maintenance.
  • Deliverables: Some of the factors include regular flow of the software without interruptions, regular updates of the software, and quick customer service.

Cost Factors to Keep in Mind:

Geographic Location: 

The cost of development can also differ depending on the location of the development team. There are charges that are probably higher for app developers based in North America and Europe than those based in Asia or Eastern Europe.

Project Management: 

Project management is vital to ensuring that the development is done efficiently and that it does not exceed the set costs. The recommended percentage to be used for project management activities is between 10 and 15% of the total project cost.

Technology Choices: 

This is because there is a difference in the cost implications of using open source tools and licensed software. However, tools that are open source and, as such, freely available may be cheaper to purchase but more costly in terms of support and updating.

Feature Creep: 

It’s also important to avoid integrating new features in the midst of the mobile app development process, especially if the new features have not been adequately evaluated, since this can lead to increased costs for the project. Thus, it is recommended to adhere to the initial set of functionalities and contemplate the extension of features in possible updates.Custom Hotel Management Software

Important Characteristics of Leading Technical Companies Like Techugo for Developing Custom Hotel Management Software:

When choosing a technical company to handle the creation of custom hotel management software features, certain qualities of the company should be taken into consideration: the level of expertise and experience of the company, especially in the context of the hospitality industry, and the company’s track record of similar projects. 

Techugo is currently the best company able to provide full solutions, ranging from the initial consultation to the provision of maintenance services, in order to provide customized and flexible software. It follows new trends and latest technologies, thus providing the best quality and focusing on end-users. Organizational practices, including project management, communication, and the use of agile approaches, are crucial. Moreover, there are some vital factors, such as intensive testing, enhanced security, adherence to legal requirements, and post-implementation support. 

For instance, companies like Techugo that are known to have these qualities offer simple pricing that is clear, provides great value, and adds value to your hotel in the long run for increased productivity.


Creating custom hotel management software features may be rather expensive, but the advantages it offers, including improved management, increased guest satisfaction, and higher revenues, are incontrovertible.

Knowing all the important components of the application, one can get a clearer view of the overall concept and possible costs at each stage of development. This understanding enables stakeholders to understand the existing environment and manage potential hurdles while arriving at a solution that suits the hotel’s needs perfectly.

Regardless of the choice being made between in-house recruiting, outsourcing to other software development companies, or even finding freelance specialists, it is crucial to conduct thorough planning and management. Each process, starting with the formulation of ideas and ending with their implementation, requires cautiousness to prevent potential problems and achieve the best results.

However, what many people fail to realize is that it does not end there, especially when it comes to the launch of the software. The sustenance of the software in the competitive and ever-evolving hospitality industry requires constant assessment, scheduled upkeep, and efficient customer service. 

Get in touch with our team of experts to transform your ideas into reality and propel your business growth. Contact us for more details and let us help you achieve your goals.

Related Posts

Hospital Inventory Management Software Development
12 Jul 2024

The Ultimate Guide to Hospital Inventory Management Software Development

Properly handling drugs and medics is vital to running quality services in the respective medical facilities. However, they remain highly pulsating at..


Nida Akbar

Coffee Shop App Development in UAE
10 Jul 2024

Brewing The Success Path for Coffee Shop App Development in UAE

The United Arab Emirates pulsates with a rich coffee heritage. The lively cafe scene in the UAE serves as a hotbed of socialisation, business meetings..


Nida Akbar


Get in touch.

We are just a call away

Or fill this form