The small hotelier’s complete guide to buying the best software

As an independent hotelier, your passion lies in creating memorable guest experiences, not getting buried under a mountain of administrative tasks. 

We know that the demands of juggling a variety of time-consuming tasks, staff shortages, and endless spreadsheets can leave you feeling overwhelmed, with precious little time to focus on what truly matters - your guests. 

But what if we told you that there's a way to boost revenue, reduce workload and reclaim time back in your day so you can choose to spend your time where it has the most impact? 

The answer lies in leveraging the best software for your property. 

From pricing to distribution, there's a collection of software designed specifically for small hotels like yours, poised to transform your everyday challenges into opportunities for revenue growth.

Let's explore how the right technology can help alleviate the issues you’re facing and take your hotel to new heights.

Advice for shortlisting small hotel software

When it comes to evaluating software for your independent hotel, there are a few notable factors that you should consider. 

To kick off, you need to understand what your specific needs are. Your hotel is unique, and what works for another operator may not work for you. Start by identifying where you are struggling - the areas where you think you need most help and how technology can be used to your benefit. This can range from reservation management to channel management, or guest communication.

For example, is your occupancy rate low, leading to worse-than-expected room revenue? Are you struggling to fill rooms in the off-season and low demand days? Or do you lack the resource or knowledge to implement revenue management strategies, such as setting the right price in real-time across your online channels? 

Then your first line of inquiry should be directed at the combination of a pricing recommendation tool, to automate dynamic room rates, and a channel manager, to increase your online visibility and generate more direct bookings.

Once you understand your needs, it's a great idea to build a checklist of key requirements. This list will serve as a guide to ensure that the software you choose aligns with your priorities. It will also help you to avoid getting swayed by excessive features that look good but that you might not really need.

As you browse through different software options, pay close attention to the attributes of each tool and how they match up with your checklist. Below are some overarching areas of consideration to keep in mind across all tools. 

To begin with, look for software that is user-friendly, intuitive and easy for your team to adopt as part of their day-to-day, so you can delegate appropriate tasks from the beginning. Remember, the goal is to simplify your day-to-day, not complicate it further with a cumbersome tool that can take a long time to learn and even longer to master.

Not that you would, but don't forget to look at the cost. While it's important to invest in market-leading software to see the full benefit, you don't want it to break the bank, leaving you unable to make a return on your investment. Look for software that strikes the ideal balance between price and effectiveness.

Prioritize software providers with industry-leading customer support. When onboarding a new tool it is always worth having a piece of mind that an expert team is on hand to help, whenever you may need it.

Finally, it is a good idea to consider scalability. As your hotel grows, your needs may change. It is worth looking at a technology supplier that has a well-rounded platform of solutions, that can grow with you and adapt to your changing needs.

The best software for small and independent hotels

Navigating the world of software in the hospitality industry can be daunting, but understanding the key categories is the first step.

We'll explore three types of software for independent hoteliers in this article: property management systems (PMS), channel managers and room pricing tools. Each of these plays a unique role in enhancing your hotel’s operations and commercial potential.

We'll introduce each type of software, showcase what it does, its essential capabilities and some top options in the market, both overall and for those with a tighter budget.

So let's dive in and examine what can make up an independent hotelier's tech toolbox.

Tools for comprehensive hotel management

A Property Management System (PMS) is the nerve center of hotel operations.

It offers a holistic view of both front and back office activities. It streamlines a myriad of tasks including managing reservations, overseeing check-ins and outs, facilitating guest communications, processing payments, coordinating housekeeping, adjusting rates and much more.

The ideal hotel PMS doesn't merely support your property's operations; it elevates them. It empowers you to automate tasks, freeing up your time and resources. 

Moreover, it provides transformative insights into critical areas across your business. By harnessing these insights, you can make data-driven decisions that enhance your operations, boost your revenue, and ultimately, elevate the guest experience.

What to look for in a PMS

Ease of use: With a user-friendly interface staff productivity improves significantly as all information needed is readily accessible. Instant access to essential data eliminates time spent on searching for information, enabling you to focus on your core duties and provide superior service.

Cloud-based: Opting for a cloud-based PMS is a strategic choice that offers both cost-effectiveness and scalability. This modern solution outshines traditional on-premise implementations in terms of flexibility and adaptability.

Integration capability: The true power of a PMS resides in its capacity to flawlessly integrate with a wide array of external tools and systems, from a pricing recommendation tool to a booking engine. These integrations enable you to amass critical data, forming the backbone of data-driven decision-making.

When properly integrated, a PMS not only amplifies efficiency but also broadens functionality, leading to improved business outcomes. It bridges different platforms and tools, and transforms raw data into actionable insights that can drive business growth with informed decision making.

Top all rounder: Cloudbeds

Cloudbeds PMS effortlessly consolidates reservations assisting in revenue optimization. Its intuitive calendar makes reservation management straightforward, while customizable reporting offers crucial insights. Moreover, the tool facilitates automated guest communication and comprehensive invoice management.

Key features:

• One click guest check-in and check out to streamline guest’s front desk experience

• Built for independent hoteliers, the Cloudbeds Platform seamlessly integrates with mosts tools you need to run and grow your hotel business so you can focus on your guest experience

• Drag and drop calendar built to simplify daily front desk operations

Visit Cloudbeds for pricing information.

Best for your budget: Hotel Bee

HotelBee PMS enables hoteliers to monitor reservations and guest details, administer room inventory, and automate procedures such as check-in and check-out. 

The system offers an intuitive dashboard that presents live updates on occupancy, revenue, and other vital metrics. HotelBee provides a variety of additional beneficial tools, such as customizable room types, automatic room assignment, and key lock integrations.

Key features:

• The bookings calendar allows hotel staff to manage reservations, check room availability, and make bookings easily

• Front desk management feature that enables staff to check guests in and out quickly and efficiently

• Dashboard view provides a comprehensive overview of all the important aspects of a hotel’s operations in one place

Prices start from $6 per room, per month.

Tools to manage your online distribution channels

A hotel channel manager assists you in effectively marketing, managing and selling your hotel rooms online through multiple third-party and direct booking sites, or channels. This enables you to effectively control pricing and availability across all of your online channels.

It offers real-time updates for pricing and inventory across all distribution channels from OTAs and Metasearch to your own website. This synchronization not only maximizes revenue by ensuring optimal room rates are always available, but it also prevents overbooking by maintaining accurate inventory counts.

What to look for in a channel manager

Distribution network: Your channel manager should have connections with a broad range of OTAs, Global Distribution Systems (GDS), Meatsearch and other relevant distribution channels. This will help you to reach as large an audience as possible, thereby increasing the potential for bookings.

Integration capability: It needs to seamlessly integrate with your PMS and other vital software such as a pricing recommendation tool. This integration allows for automatic data synchronization, reducing manual effort and the risk of errors.

Real-time updates: Real-time updates of room rates and availability across all connected distribution channels is vital. This feature helps maintain rate parity, avoid overbookings, and ensure maximum room occupancy.

Best overall: Channel Manager by Lighthouse

Channel Manager is the industry’s first AI-powered channel management tool that transforms pricing and distribution for independent hotels. By managing all your distribution channels in one centralized and user-friendly solution, overbooking becomes a thing of the past and you save hours in the process.

By connecting a pricing tool you can easily apply optimized rate recommendations to all of your booking channels, which not only means more hotel bookings and increased revenue - but more commission-free bookings directly through your website.

Key features:

• Maximize visibility and revenue by connecting to over 200 online channels

• Boost your revenue with AI-driven dynamic pricing and distribution

• Automate rate parity management across your distribution channels to ensure optimal pricing

• Powered by the most diverse and trusted data sets in the industry 

• Combine Channel Manager with Pricing Manager to automatically push AI-driven rate recommendations for the next 365 days to all your connected distribution channels.

View the product here and for pricing information contact the Lighthouse team. 

Most budget friendly: HotelRunner

HotelRunner greatly simplifies reservation management, facilitating smooth synchronization across numerous OTAs, thereby minimizing the likelihood of overbookings. Its dynamic booking engine and rapid updates, boost revenue via direct bookings on the hotel website. Furthermore, its extensive reporting tools assist in making strategic decisions.

Key features:

• Instant updates to update room inventory, rates, and availability on all channels 

• Supports all room types, rate plans, and channel-specific restrictions as well as booking modifications, cancellations, and rebooking

• Connect to over 150 online sales channels.

Visit the HotelRunner website for pricing details.

Tools for hotel room pricing

A pricing recommendation tool automates dynamic, customized pricing at your hotel (sometimes up to a year in advance) by adjusting room prices in real-time based on various factors such as demand and supply, competitor pricing, historical data, customer behavior, and market trends. 

With real-time room price recommendations, you can set the right rate at the right time for the right customer to maximize your property’s revenue and drive profitability.

This means you’re in the best position to effortlessly boost your Revenue Per Available Room (RevPAR) by capturing every potential revenue opportunity, without diverting your focus from the crucial operations of your hotel and eliminating manual pricing headaches.

What to look for in a pricing recommendation tool

Ease of use: Pricing recommendation tools should be user-friendly and crafted with a single objective in mind - to automate dynamic room pricing for you. Therefore, you should prioritize a clean and intuitive user interface, so you can visualize and set prices almost instantly.

Automation and control: To maximize time efficiency, it's crucial to use a pricing solution that allows for total automation of your room pricing, directly integrating with, and sending rates to your PMS. Simultaneously, it should offer the flexibility to customize settings, ensuring you retain control over your pricing decisions.

Data quality: The importance of data quality cannot be overstated. The time-honored saying, "garbage in, garbage out," holds significant relevance in this context. If your solution isn't powered by high-quality data, your new room pricing initiative is likely to stumble right out of the gate.

Category winner: Pricing Manager

Pricing Manager is built specifically for independent hoteliers. It easily automates dynamic room pricing, with AI-powered, tailored and transparent price recommendations up to 365 days in the future. These are presented in a color-coded calendar, so you can visualize your pricing at a glance and make confident decisions. This enables you to capture more revenue opportunities and save time, so you can focus on the guest experience.

Key features:

• Autopilot - instantly send and set certain price recommendations, maximizing time efficiency

• Recommendations are based on transparent categories including occupancy, compset and your own user rules

• Flexible settings allow you to stay in control of your pricing recommendations

• Recommendations based on transparent categories including occupancy forecasts, competitor rates

• Powered by the most diverse and trusted data sets in the industry 

• Combine Pricing Manager with Channel Manager to automatically push AI-driven rate recommendations for the next 365 days to all your connected distribution channels

View the product here. Prices start from $75 per month.

Best for your budget: Smartpricing

Smartpricing equips hoteliers with the ability to develop and execute a dynamic pricing strategy - boosting revenue, saving time, and alleviating the anxiety linked with manual pricing decisions. The software automatically analyzes internal and market data, dynamically optimizing rates for each room type in real time.

Key features:

• Manage prices, set rules, monitor events with calendar view

• With price justifications, you always know which parameters are influencing price calculations in the algorithm

• Integration with management software allows Smartpricing to publish price updates automatically

Visit the Smartpricing website for pricing details.

Support your hotel’s success with Lighthouse

Choosing new hotel management software for your property can be a minefield, there’s a lot to consider and it's a decision that shouldn't be taken lightly. 

However, with Lighthouse as your partner, you can have confidence that your decisions are backed by performance, competitor, and market data that is trusted by over 65,000 hotels and updated every hour.

Moreover, you'll be utilizing user-friendly software that requires no prior expertise to get started. If you ever face any issues, rest assured that top-tier customer service in the hotel industry is at your disposal. Our multilingual support team, available globally, typically responds within 100 seconds.

If your goal is to maximize revenue while minimizing effort, then the all-in-one combination of Pricing Manager and Channel Manager by Lighthouse is the perfect solution for you. 

With 365 days of AI-optimized dynamic room rates, efficiently distributed across your linked distribution channels in a few clicks, you'll soon experience an increase in online bookings and a reduction in commissions to OTAs. All while saving valuable time that you can use to delight your guests.

Sound good? Take a look for yourself.