Hospitality software application involves several specific aspects and characteristics that should serve the purpose of hotels, resorts, and other hospitality clients. This software is used to support operations, improve guest satisfaction, and further optimise management processes. Below is the short information on how to get it done, and the costs associated with developing the hospitality software.
Initial Planning and Research
The preliminary step is analysing the hospitality industry’s requirements and defining the target audience and the future app’s basic functions. This also includes identifying the target market, researching competitors, and polling potential users of the system, such as hotel managers, their employees and guests.
Cost:
- Market Research: Depending on the required treatment $5,000 – $15,000
- Requirement Analysis: $5,000- $10,000
Defining the main features
1. Booking and Reservation System
- Online Booking Engine: Enables clients to book hotel rooms online.
- Channel Management: Works with other channels where apartments can be booked (for instance, Booking.com, Expedia) to help control availability and rates.
- Booking Calendar: Visualisation of the bookings and availability status.
Cost: $10,000 – $50,000
2. Property Management System (PMS)
- Front Desk Management: Accommodation, service with check-in/check-out, room allocation, and guests’ requests and complaints.
- Housekeeping Management: List and organise the cleaning activities.
- Inventory Management: Monitor the stocks required to run a room, their maintenance, and other related essentials.
- Guest Profiles: Keep a proper account of the clients with details of their preferences, encounters, and experiences.
Cost: $20,000 – $70,000
3. Point of Sale (POS) System
- Restaurant and Bar Management: To order food and beverages, make payments for them, and keep a record of the stock.
- Integration with PMS: Automated charge posting of guest charges to their room accounts.
Cost: $10,000 – $30,000
4. Customer Relationship Management (CRM)
- Guest Communication: Messages to guests and travellers for bookings, pre-trip information, and post-accommodation feedback.
- Loyalty Programs: Deal with guest reward programs and guest loyalty points programs.
- Feedback and Surveys: Collecting guests’ opinions also increases service efficiency.
Cost: $10,000 – $30,000
5. Reporting and Analytics
- Financial Reports: Cost-volume-profit analysis.
- Operational Reports: Percentage of occupied rooms, staff performance, and guests’ satisfaction.
- Customisable Dashboards: Real-time pieces of information and visualisations in a course.
Cost: $10,000 – $25,000
6. Integration with Third-Party Services
- Payment Gateways: Protect payments.
- Accounting Software: Integrate with accounting programs, such as QuickBooks.
- Marketing Platforms: Integration with marketing tools and social media platforms.
Cost: $5,000 – $15,000
Design and User Experience
The design should be usable by different people in the hotel: the workers, the managers, and the visitors. This phase is about design, and it entails wireframing, mock-ups, and even prototyping.
Cost: $10,000 – $30,000
App Development
- Frontend Development: Developing the UI with tools like HTML, CSS, JavaScript, and frameworks like React and Angular.
- Backend Development: Establishment of server, database, Application Programming Interface (APIs), and application logic using technologies such as Node.js, Python, Ruby on Rails, or Java.
- Mobile App Development: If a Mobile Application is required, then additional charges will be for iPhone and Android applications.
Cost: Hospitality software providers define their prices between $50,000 and $200,000
Quality Assurance and Testing
QA also makes sure that the developed software does not contain any defects, or if it includes those, then they make sure the software is not functioning the way it was developed to. This comprises unit tests, integration tests, system tests and user acceptance tests before the system is considered complete.
Cost: $10,000 – $30,000
Deployment and Hosting
This includes installing the software and making it operational, allowing users to utilise it. It also includes installing the server and the necessary infrastructure to support the website.
Cost:
– Initial Deployment: $5000 -$15000
– Hosting: $500-$5000; $5000 per month
Maintenance and Updates
Maintenance includes actions such as correcting errors, improving the program, and incorporating other features, depending on the users’ feedback and market conditions.
Cost: 15% – 25% the initial development cost annually
Marketing and Customer Acquisition
Marketing the software to hotels and other hospitality establishments involves digital marketing, content creation, SEO, and potentially hiring a marketing team.
Cost: $10,000 – $50,000
Legal and Compliance
Guarantees that the developed software meets the requirements of relevant legal acts, both national and international (e.g., data protection legislation), as well as best practices. Legal costs refer to preparing terms of service, privacy policies, and legal compliance, to name a few.
Cost: $5,000 – $15,000
Overall Cost Estimation
Considering all the factors, here’s a rough breakdown:
- Initial Planning and Research: The cost ranges from $10,000-$25,000.
- Design and User Experience: $10,000-$30,000.
- Development:
- Frontend Development: This may be an estimated cost of between $20,000 and $80,000.
- Backend Development: $30,000 – $100,000.
- Mobile App Development (if needed): $20,000-$50,000
- Quality Assurance and Testing: $10,000-$30,000.
- Deployment and Hosting: $5,000-$15,000, plus additional monthly expenses of $500-$5,000 per month.
- Maintenance and Updates: 15-25% of the initial development cost should be invested annually in subsequent years.
- Marketing and Customer Acquisition: $10,000-$50,000.
- Legal and Compliance: $5,000-$15,000.
Total Estimated Cost
This software pricing strategy involves the total acquisition of a practical hospitality software application, which may require an investment of between $100,000 and $400,000 for its implementation and deployment. Other methods are far more comprehensive, including sophisticated tools and integrations, which cost more than $500,000.
Factors Influencing Cost Variability
- Complexity of Features: Additional configurations can be more expensive.
- Technology Stack: The decision made regarding technology has implications for the cost of development and maintenance.
- Development Team Location: Depending on their location, the cost always differs from developer to developer.
- Experience of the Development Team: Experienced teams seem to have high costs, but their work is of higher quality and is usually more efficient.
- Scale of Deployment: Larger-scale deployments that require more infrastructure will be more expensive.
Conclusion
Developing hospitality software is always a significant investment for any hospitality business. However, the result can include enhancements to hospitality operational activities, as well as optimisation of managerial procedures. This paper demonstrates how a well-crafted software development plan and its subsequent implementation in a hospitality business can lead to a sustainable competitive advantage in the field.
