LONDON—The global hotels and hospitality management software’s market size is poised to grow by $1.14 billion during 2020-2024, progressing at a CAGR of about 5% throughout the forecast period, according to the latest report by Technavio.
The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment. The report also provides the market impact and new opportunities created due to the COVID-19 pandemic.
Hotels are focusing on integrating newer technologies to lower expenses on document processing through automation. This is driving the adoption of hotel and hospitality management software. The software not only helps reduce dependency on manual records, but also aids in cost-effective labor scheduling based on the demand as per tourist footfall in each season. The growing business scope for vendors is also attributed to the rising demand for mobility. Hotels are investing in tablets and mobile devices to cater to their customers who prefer digital check-in. These factors are expected to contribute to hotel and hospitality management software market growth over the forecast period.
The major hotels and hospitality management software market growth came from the SaaS-based deployment segment. Most of the international small- and medium-sized hotel brands are expected to move toward the SaaS-based model during the forecast period for features such as agility, scalability and easy integration. Moreover, SaaS-based hotel and hospitality management software help end-users in leveraging the growing adoption of other cloud-based hotel and hospitality management solutions.
APAC was the largest hotel and hospitality management software market in 2019, and the region will offer several growth opportunities to market vendors during the forecast period. The rising tourist footfall and the augmented on-the-go booking and need for real-time tracking of bookings will significantly drive hotel and hospitality management software market growth in this region over the forecast period.
As the business impact of COVID-19 spreads, the hotels and hospitality management software’s market 2020-2024 is expected to have positive and superior growth.
Rise in Cloud Integration will be a Key Market Trend
The rise in cloud integration is one of the significant hotel and hospitality management software market trends. Cloud-based hotel and hospitality management software is beneficial for small hotels that lack in-house IT expertise to deploy, manage and upgrade on-premises management applications. In the cloud-based system, the end-user depends on vendors for timely updates and rectification of technical glitches, eliminating the additional expense. Other benefits of cloud-based software include integration with commonly used office applications, automated cloud data backups and social CRM. These factors will increase the adoption of cloud-based hotel and hospitality management software.