How much do Property Management Systems cost

Hotel property management system
The Complete Guide to Property Management Systems (PMS)
Chapter 4 of 5: How much do Property Management Systems cost
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It's not that important if the pricing is per room per month, or per room per year, or if it's a flat price per hotel (and not per room). The only thing that counts is what you pay every year for what you get. So after you look at several options, you need to draw a line and compare what they offer for what total monthly and annual cost, how much it will cost you to add something later on, and how long do they want you to commit to that choice. --

How is the price calculated

There are more than 200 different PMS providers so this is an overview of the different pricing structures we found during our research. In this research, we are looking exclusively at online or cloud PMS (it's the same) as the industry is moving towards that direction and more and more hoteliers and accommodation owners are using the online tools versus offline older ones.

1. Standard Fees vary between 0 - 1.500 EUR per year (~0 - 1.650 USD)

These will typically be presented in these two formats:
  • Per hotel per month e.g., 49 EUR per month
  • Per room per month e.g., 3.99 USD per room per month

2. Extra Fees vary between 50 - 1.000 EUR per year (~11 - 1.100 USD)

The extras can vary a lot as they relate to the size or type of property you have, but most providers will offer extra options like:
  • Additional users: after the first user who created the account
  • Connecting to sites: the connection to each site like Booking.com and Expedia will have a separate cost
  • Web booking engine: for accepting bookings on your website
  • Facebook booking engine: for accepting bookings on your facebook page
  • TripAdvisor Reviews: various tools you can combine to manage your reviews
--

Here are 3 examples

The cost will vary depending on the characteristics of your property. So have a look at the following 3 examples and try to find the example that's closer to you property size & characteristics, for estimating how much you would have to pay: -

1st Property :

  • 5 rooms/apartments
  • Listed only on Booking.com
  • Managed by 1 person
Standard Fee: 250 EUR per year Extra Fees: For connecting to Booking.com 100 EUR per year TOTAL: 350 EUR per year (~390 USD) -

2nd Property:

  • 10 rooms/apartments
  • Listed on Booking.com & Expedia
  • Managed by 3 people
A reasonable total cost for a PMS would be: Standard Fee: 600 EUR per year Extra Fees: For connecting to Booking.com & Expedia 200 EUR per year TOTAL: 800 EUR per year (~890 USD) -

3rd Property:

  • 25 rooms/apartments
  • Listed on Booking.com, Expedia & 2 more sites
  • Managed by 5 people
A reasonable total cost for a PMS would be: Standard Fee: 1.200 EUR per year Extra Fees: For connecting to Booking.com & Expedia + 2 other sites 400 EUR per year TOTAL: 1.600 EUR per year (~1.775 USD) -- Looking at pricing without looking at what you are getting for that cost, isn't really helpful. So in the next chapter, we have created a guide for being able to select the right PMS for you, for your property, and for your team.

Next Chapter:

How to select the right Property Management System

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