Hotel CRM Software: Custom vs Off-the-Shelf

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Key Takeaways

• CRM in hotel industry is designed to manage guest relationships, bookings, and operations in the hospitality industry.
• This solution enhances guest satisfaction through personalized interactions, streamlines hotel operations by automating tasks, and provides valuable data insights for strategic decision-making.
• Key features include guest profile management, booking and reservation tracking, automated communication, and analytics for marketing and performance evaluation.

In the hospitality industry, managing guest relationships effectively is vital for success. By collecting and analyzing guest data, hotel CRM systems enhance customer service and support reservation management, marketing efforts, and more.

Do you want to make a custom CRM for hospitality industry or even a SaaS solution? In this guide, we’ll explore the core software functionalities systems and their benefits. Stay tuned to transform guest interactions into remarkable experiences.

What is CRM Hotel Software?

A hotel customer relationship management (CRM) system is a specialized tool designed to manage and enhance interactions with guests and potential customers. Unlike standard CRMs, focusing on general customer data management and lead tracking, a hotel one includes features specifically tailored to the unique needs of the hospitality industry. For example, they manage guest preferences, stay history, and reservation details.

The hotel CRM software market, valued at $2.33 billion in 2023, is expected to grow at a CAGR of 10.2%, reaching $6.74 billion by 2032. The increasing adoption of cloud-based and mobile CRM solutions primarily drives its growth.

Cloud-based systems allow hotels to manage multiple locations seamlessly and ensure consistent guest experiences. Additionally, the rise in mobile CRM adoption improves direct and personalized communication between hotels and guests, catering to the growing number of travelers using smartphones and tablets to plan and manage their stays.

Key Components of CRM Software for Hotels

In order to boost guest satisfaction and streamline hotel operations, customer relationship management in hospitality industry should offer the following components:

Guest Profile Management

Hospitality CRM software helps you create detailed profiles by collecting everything from their preferences and past stays to their interactions with your team. Offer a personalized experience that makes guests feel truly valued, anticipating their needs even before they ask.

Booking and Reservation Management

Managing bookings can be a juggling act. Yet, it gets much smoother with CRM software. It connects directly with your booking systems, keeping track of reservations, room availability, and special requests. This way, you avoid double bookings and ensure guests get the room they want.

Communication Tools

Staying in touch with guests is crucial, and this is where the CRM in hospitality industry shines. It lets you automate emails, SMS, and other messages to send personalized communication at the right time. Whether it’s a booking confirmation, a pre-arrival note, or a thank-you message after their stay, the CRM ensures your guests feel cared for.

Loyalty Program Integration

CRM for hospitality supports the integration of loyalty programs. That means you can track points, offer exclusive perks, and reward repeat guests, encouraging them to return. It’s not just about discounts; it’s about building a relationship that turns one-time visitors into regulars.

Analytics and Reporting

The CRM’s advanced analytics and reporting tools give you deep insights into guest behavior, booking trends, and how well your marketing works. This information lets you make smarter decisions to improve your services and boost ROI.

Task Automation

CRM automation features take over repetitive tasks like sending reminders, following up on requests, and assigning jobs to your team. This means your staff can focus more on delivering great service instead of getting bogged down in admin work.

Integration with Other Systems

CRM software for hospitality industry seamlessly integrates through APIs with your property management system (PMS), point-of-sale (POS) systems, and more. This ensures that all your guest data is synced up, giving you a complete picture.

Benefits of Implementing Hotel CRM System

Now, it’s time to overview the advantages of CRM software in hospitality industry:

Enhanced Guest Experience

With hotel CRM, you can create a truly personalized experience for your guests that makes them feel special from the moment they book until long after they’ve checked out. Learn more about their favorite room type, preferred pillow firmness, or even the fact that they like extra towels.

Personalized communication keeps the conversation going at every step — whether it’s a warm welcome message before they arrive, a quick check-in during their stay, or a thoughtful thank-you note after they leave. This continuous engagement shows your guests that they’re more than just a booking number, helping to build lasting relationships.

Increased Revenue

Hotel customer relationship management is also a powerful tool for increasing revenue through targeted upselling and cross-selling strategies. By understanding guest preferences and behaviors, the CRM can suggest relevant upgrades or add-ons at the right moment, such as offering a room with a better view or promoting a spa package that matches the guest’s interests.

In addition to upselling, CRM identifies who’s likely to return and sends them personalized offers to book directly through your website. This way, you reduce third-party booking fees for marketing campaigns and drive more direct bookings.

Operational Efficiency

Running a hotel involves a million routine jobs like sending booking confirmations, handling follow-up emails, and even assigning daily tasks to your staff — and hospitality CRM solutions can automate them. Your team can focus less on paperwork, avoiding mistakes and ensuring your guests have a fantastic stay.

At the same time, CRM integrates with other hotel software, such as property management systems (PMS) and point-of-sale (POS) systems, to create a unified platform. As a result, all your guest data is in one place and is easily accessible whenever your team needs it. The result? Faster service, fewer errors, and more efficient operations.

Data-Driven Decision Making

When making decisions for your hotel, having the right data can make all the difference. CRM software used in hotel industry gives you detailed insights into your guests’ behavior, booking trends, and how effective your marketing efforts are. Want to know which promotions are bringing in the most bookings? Or which type of guest is most likely to return? The CRM has all the answers.

But it’s not just about marketing. The CRM also gives you a clear picture of how your hotel performs on the operational side. You can track occupancy rates, revenue per available room, and staff productivity. With this information, you can spot where your hotel is performing well and where there may be opportunities for improvement.

Custom Hotel CRM Software vs Off-the-Shelf

Selecting the right CRM software can transform your business operations and guest experience. Let’s compare off-the-shelf and bespoke software to find the best fit for your hotel.

• Customization. Custom CRM for hotels is designed specifically for your company, offering tailored features and workflows that fit your needs, while off-the-shelf solution provides a standard set of functionalities with limited customization.
• Cost. While custom software has higher upfront expenses, in the long run, it’s more cost-effective. Off-the-shelf software is initially more affordable but may incur ongoing subscription expenses and require additional purchases for advanced features.
• Scalability. Custom CRM scales and evolves with your business, easily accommodating new properties, features, and integrations. Off-the-shelf solutions may struggle to scale, requiring costly upgrades or add-ons.
• Data security. Custom software allows full control over data security and compliance, with the ability to implement specific measures. Off-the-shelf CRM offers standard security features that may not fully meet specific compliance needs or regional regulations.
• User experience and support. Custom CRM is built with specific users in mind, leading to a more intuitive experience and access to dedicated support. At the same time, off-the-shelf offers a general solution and standardized support.

Why Choose Acropolium?

If you’re looking for a reliable certified vendor to develop CRM software for your hotel business, Acropolium is here to help. With 13+ years of expertise, we’ve successfully delivered 45 hospitality software solutions to businesses of all sizes, from small hotels to large chains.

We specialize in developing GDPR-compliant software utilizing ISO-certified processes. Our services include cutting-edge technologies like cloud solutions, big data, artificial intelligence and machine learning, and blockchain security to optimize room management, automate processes, and enhance marketing campaigns.

Also, we provide amazing contactless experience and IoT services, as well as deliver chatbots for hotel management, travel, and food delivery apps. Low-code MVP or complicated SaaS solution? It’s also not a big deal for us.

Let’s delve into some of our cases.

Hotel Revenue Optimization and Demand Forecasting Software

Our client, a leading high-end hotel management company, needed a scalable CRM solution to handle growing stays and improve guest satisfaction. We developed a custom hospitality revenue management system featuring dynamic pricing, automated demand forecasting, and integrated data analytics.

The new system unified booking data, market trends, and competitor pricing, resulting in a 15% increase in room occupancy, an 18% boost in revenue, and a 20% improvement in operational efficiency.

Hotel Management System Development

Our client aimed to position their product as a leading hotelier B2B platform for cost-effective digital management. Acropolium’s team developed a cloud-based PMS with real-time data exchange and integrated the client’s existing systems with additional communication channels and booking platforms.

As a result, 12 hotel networks connected seamlessly, booking platform integrations increased by 82%, the customer base grew by 9.7%, and annual recurring revenue rose by 14.5%.

Final Thoughts

Today, implementing a CRM in the hospitality market is not only beneficial but essential to staying ahead and thriving. By leveraging CRM, hotels can streamline their processes, reduce manual effort, and focus on providing exceptional guest service.

The good news is that you don’t have to hire an in-house development team to build a CRM system, as well as to worry about the project budget. All you need is to partner with a top IT services company for hospitality. Acropolium offers a subscription-based service that caters to all web development needs for a monthly fee.

Want to know the details and discuss your project? Contact us and get a dedicated team.

Sources of Information

• Hotel CRM Software Market