Small Hotel Management Software: Choosing the Best Option

Small hotel operators are no strangers to juggling many tasks. And, despite the fact that many things on your plate could likely be streamlined with hotel management software, carving out the time to wade through a sea of technology vendors is also a time-consuming undertaking.

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Fortunately, this guide is here to cut through the noise. We’ll help you discover the perfect small hotel management software for your specific needs, share insider tips on picking the best provider and showcase inspiring success stories.

What is Small Hotel Management Software?

Hotel management software, a term used interchangeably with property management software (PMS), is designed to be your go-to source for all things hotel operations. Typically, these systems provide solutions for tasks like booking reservations, guest check-in/checkout, assigning rooms, managing room rates and billing.

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Small hotel management software handles these tasks with a special nod to the things that matter most to small business owners — namely, getting the most out of the resources you have.

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These platforms automate administrative tasks and provide robust reporting features, so you and your staff can spend more time getting to know guests and less time doing paperwork.

What Small Hotel Management Software Can Do For You

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So, what are the benefits of small hotel management software? It can help hotel owners, hospitality staff and valued guests in a few key ways:

1. Modernize check-in/checkout process By providing a tech-forward solution to check-in and checkout, a hotel management software reduces the time that hotel staff spends on tedious tasks. Automation eliminates the need for outdated paper forms and manual data entry, and guests are treated to a modern, tech-forward experience. Examples include:

• Mobile check-in to pre-register guests, reducing front desk administrative work
• Mobile checkout to fast-track guest departures, minimizing front desk lines

2. Streamline staffing operations A centralized hub for operations gives small hotel teams the ability to glean multiple benefits from a single, integrated system. For example, a hotel management system that allows guests to check out on their phones can alert housekeeping staff when a room has been vacated, removing uncertainty around when rooms are ready to be cleaned. Examples include:

• A digital tipping product that enables guests to show their appreciation for staff right from their phones.
• A mobile checkout system that enhances third-party reviews, notifies housekeeping when rooms are ready and efficiently checks guests out.

3. Collect guest data Small hotels are often preferred by guests who like more personalization, and a management software provides the data you need to exceed expectations. A hotel management system reports on reservations, finances and guest behaviors, so hotel staff can stay plugged into everything happening throughout the property, and find opportunities to elevate stays accordingly. Examples include:

• A check-in product that captures guests’ email addresses to hotels can build personalized marketing databases.
• An online webchat system that can collect information about potential guests even before they book.

4. Enhance revenue management In addition to collecting data about guests, small hotel management software provides insights into revenue. You can easily see occupancy rates and booking frequency, making it simple to dynamically adjust price offerings and inventory levels in real-time. Some hotel management software includes upselling features that help small hotels boost ancillary revenue. Example:

• Dynamic upselling software that offers guests the right add-ons at the right time
• A mobile checkout option that prompts customers to leave reviews on Tripadvisor and Google to increase positive reviews

5. Improve the guest experience Hotel guests are more tech-savvy than ever, and providing software solutions that streamline the experience can help small hotels compete with larger chains. Technology gives guests the power to communicate efficiently, find answers to frequently asked questions and feel more in control of their hotel experience.

• AI-powered guest messaging to respond to guests 3x faster while upselling them, too.
• A platform that provides digital authorizations and contracts to eliminate outdated paper forms and provide PCI compliance.

6. Get more 5-star reviews When guests check out through the HMS system, they’re prompted to leave a rating. If their feedback is negative, it’s immediately sent to front desk staff so there’s an opportunity to rectify the situation in a timely manner. If they leave four or more stars, guests are prompted to leave a review directly on Tripadvisor or Google.

Features to Look For in a Small Hotel Management Software

Every hotel must work to balance revenue, reduce costs and streamline operations,but small hotels feel this much more acutely because of limited resources. As a small hotelier, there are several features to consider when shopping around for management software:

• Integration with your current technology systems for ease of implementation
• 24/7 support for hotel staff in case issues arise
• No app downloads required (for guests or staff!) for a streamlined user experience
• Mobile-friendly, cloud-based solutions for easy and secure storage
• Scalable solutions that let you add on as needed to create a customizable software suite
• Revenue generation and cost-reduction solutions to increase upsells and reduce costs associated with fraud and chargebacks

5 Success Stories from Real Hoteliers: How Software Helps Small Hotels

So, is investing in hotel management software really worth it? Many small hoteliers would give that question a resounding “YES” — but don’t take our word for it! These success stories show the real-world impact of investing in hotel software for small properties.

Benefits of Solutions Tailored to Small Hotels

1. Speeding up check-in/checkout At Rosas y Xocolate, a 17-room property in Mérida, Mexico, contactless check-in has helped them get more done without adding more staff. Manager Christian Ix-Caamal told us they’ve seen “a 35% increase in staff efficiency…and guests love it.”
2. Improving guest satisfaction Because guests are prompted to leave post-stay feedback as part of the checkout flow, The Waypoint Hotel, a 75-room property in Bend, Oregon has maintained a 4.59 average guest satisfaction rating.
3. Adding upsell opportunities NOMADS, an ultra-small, seven-room property on the Southern California coast, discovered guests are happy to pay for things that make their stay more convenient. “It turns out guests are happy to pay the $25 [for early check-in and late checkout]” their Co-Founder Sean Rowland told us.
4. Saving significant overhead costs In addition to increasing efficiency, a hotel management system can trim a small hotel’s overhead costs in impactful ways. Though Mr. C Coconut Grove is a small hotel at just 100 rooms, they’ve been able to save 700+ sheets of paper per month and cut their ink usage by 50%.
5. Reducing fraud and chargebacks For the XV Beacon Hotel in Boston, implementing Digital Authorizations has made it much easier to prevent fraud and chargebacks for their 63 rooms — since implementing this software, they’ve reduced by up to 90%.

4 Considerations for Implementing Management Software at a Small Hotel

There are no one-size-fits-all solutions for modern hotel software. To find the right software, it’s important to consider the things that matter to your property before choosing a vendor. Some things to consider are:

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1. Your goals for hotel management

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One of the main benefits of small hotels is that they’re unique — but this means their goals are as well. For example, some hotels may want to focus more on streamlining operations, while others may be primarily interested in reducing operating costs. Whatever your goals are, they’ll provide you with a great foundation to start as you decide what system is the best fit.

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2. A platform’s key features

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Some hotel management systems are built as all-in-one packages, while others allow hoteliers to pick and choose what they’d like. As you shop around, consider the key features you’d like to see and make sure the platforms you look into check all the boxes, and have room for you to add on as your operations grow.

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3. The support you can expect

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Hotels are 24/7 operations, so any software you invest in should be as well. If hotel staff have a question in the middle of the night or there’s a software bug that needs reporting, will the software provider be there to help you? Make sure to get clear about what kind of customer service they provide in case anything does go wrong.

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4. Ease of implementation

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Adding a new system is supposed to alleviate issues, not cause them! It’s wise to make sure that any system you opt for is easy to set up and learn so your staff can quickly get up to speed. Many providers will have resources to streamline this process, which is worth asking about.

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There are many benefits to implementing a small hotel management software system — especially when you choose the right one for your needs. At Canary, we’ve helped small hotels increase revenue by thousands per month and improve staff efficiency by up to 50%. Book a demo with us today to learn more.