In the hotel industry, POS is short for ‘point of sale’, which refers to a hotel system that processes payments and tracks sales.

POS systems are primarily used by hoteliers to handle transactions and manage finances, but by choosing the best, you can also streamline operations, control inventory and enhance guest experiences.

This blog will tell you all you need to know about hotel POS software, including how the right system can help you optimise operations and scale your business.

Why having a hotel POS system is important

A hotel POS system is an essential tool for a modern hotel.

It centralises transactions across all aspects of your hotel business, from the front desk to any restaurants, bars, spas and other services you might offer. It ensures seamless billing and accurate reporting, improving internal efficiency through more streamlined operations.

Modern POS systems support multiple payment methods, allowing guests to pay how they want to pay, including from digital wallets. They offer data analysis and reporting tools, giving you insight into sales trends, room rates and popular service offerings.

POS systems are designed to improve efficiency by helping you track stock levels and reduce waste. They automate a wealth of admin by integrating seamlessly with your other software. And they ultimately improve the guest experience, both directly, through smooth payment systems and indirectly, by freeing your team from admin and letting them focus on customers.

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How does a hotel POS system work with other software?

Your POS system will need to interact with a variety of tools in your hotel tech stack. Here’s how such a system works with each of these solutions.

• • Hotel PMS: The POS sends transaction data, and the PMS (and channel manager) sends booking data.
  • Hotel CRM: The POS sends data on guest purchases and feedback, and the CRM sends member discounts and personalised deals.
  • Inventory management system: The POS sends details on stock sold, and the inventory management system sends info on stock levels.

• • Payment platforms: The POS sends transaction data like credit card/cardholder info, and the payment platform sends back the result of a transaction.

• • Accounting software: The POS system sends sales and employee data to be logged in the accounting software.

Features in a hotel POS system to scale up your hotel business

As we’ve already seen, a modern hotel POS system can do far more than just process transactions: it can streamline operations, generate valuable insights and help to enhance guest experiences.

But that’s only true when you choose a capable POS system for your hotel – one with the following key features:

Inventory management

A hotel POS system with inventory management helps you to track stock levels in real-time, ensuring your restaurants, bars, spas and service desks never run out of essential items.

Centralising control of stock means your hotel can streamline procurement and supplier management, even across multiple sites. You may also be able to set automated stock level alerts to prevent shortages and overstocking.

Guest data management

By generating and sharing data on guest preferences and purchase history, a POS system can help you offer a more personalised level of service, which can increase guest satisfaction and drive loyalty.

You can use POS data to be more targeted with your marketing, tailoring promotions to specific groups or even individuals. You can also use this data to customise the service you offer each guest while they stay, like tweaking the recommendations you offer through a digital concierge.

Payment processing

The best POS systems support multiple payment methods to make transactions fast, smooth and convenient. Look for tools with automated billing and room charge capabilities, to make checkout quick and hassle-free.

Data protection

Secure payment gateways and data storage are critical features in any POS system, serving to minimise risk and enhance guest confidence.

A secure POS system will comply with all relevant data protection regulations, safeguarding payment details and confidential guest information. Encryption, role-based access and regular system updates also help to protect against fraud and cyber threats.

Robust reporting

Advanced reporting tools provide real-time insights into sales trends and operational performance. They give you the insights you need to make data-driven decisions. 

Look for a POS solution with customisable dashboards that allow you to track key metrics like best-selling services, popular payment methods and peak sales periods.

Seamless integration

Choose a POS system that can connect with and talk to the key tools in your hotel tech stack: your PMS, accounting software, direct booking engine and more.

Integration breeds automation, allowing the tools to synchronise transactions, inventory, availability and more, without you or your team needing to lift a finger. Minimising manual data entry means fewer human errors too.

“SiteMinder has also improved their solutions by providing business analytic tools. It works effectively and efficiently, and when market demand fluctuates we are able to change our pricing strategy in a timely manner, to optimise the business opportunity.”

Annie Hong,

Revenue and Reservations Manager

The RuMa Hotel and Residences

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Best hotel POS system

What do the best hotel and restaurant POS systems look like? Let’s break down five of the finest on the market.

1. SiteMinder Pay: best overall

SiteMinder Pay represents the future of hotel POS systems. A hotel-specific and entirely digital solution, it removes the need for hardware-like payment terminals. The guests can pay online, how they want and when they want, backed by security that represents the industry standard. SiteMinder Pay is designed to streamline your payment processes, give you control over your cash flow, and enable fast and accurate reconciliation.

2. Square: best for price

With a free software tier and low-cost, long-term payment options for hardware, Square is one of the most accessible and affordable POS solutions on the market. While this popular, general purpose POS system isn’t built specifically for hotels, it does offer all the functionality that an accommodation provider needs. 

3. Clover: best hardware

If hardware is important to you, Clover offers some of the very best. Its handheld POS terminals are simple and intuitive, so staff will require minimal training. It’s also one of the few solutions that lets you accept payments through a customer display.

4. Lightspeed: best for help & support

If you want all the help you can get with your new solution, look no further than Lightspeed. As one of the few POS systems that comes with a built-in training mode, your staff can get perfectly comfortable with this system before they use it to serve their first guest. It should be noted, however, that the best solutions should be so intuitive that you don’t need much support at all.

5. Toast: best for usability

Toast is a POS solution that prides itself on being perfectly intuitive and easy to use. Combining capable hardware with smooth software, the barrier to entry is particularly low for this solution, even for your most tech-phobic team members. You’ll also enjoy simple but surprisingly rare features like the ability to change screen colours and text size.

But if you’re looking for best-in-class functionality that also future proofs your hotel, there’s no POS quite like SiteMinder Pay.

Hotel price monitoring is a crucial practice that involves tracking the prices of hotel rooms, both within your own portfolio and across competitors. This data-driven approach enables you to make informed pricing decisions, ensuring you remain competitive in the market while maximising revenue.

Why is hotel price monitoring important for hotels?

Pricing is a foundational factor that plays a pivotal role in attracting guests and ensuring the financial viability of your establishment. It’s only right, then, that successful hoteliers invest significant time, energy, effort and capital in mastering it.

Hotel price monitoring offers many benefits, allowing smart hoteliers to better understand the market, make better decisions, invest in valuable projects and improvements, aim for a future filled with long-term growth, and much more.

In short, mastering hotel price monitoring ensures you have the details and data you need to stay ahead of competitors without sacrificing your own revenue, arming you with the knowledge you need to make smarter decisions around how you price your rooms and services.

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Hotel price tracking: How to monitor hotel prices online

In this digital age, there are many tools that simplify the process of hotel price tracking. These tools automate the mundane task of price tracking, freeing up time for you to focus on other crucial aspects of hotel management.

The key is to find a tool like SiteMinder that integrates seamlessly with existing hotel management systems, and is customisable to cater to your specific needs and constraints of medium-sized hotels.

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Benefits of tracking hotel prices

Monitoring hotel prices isn’t merely a tactical move but a strategic endeavour that brings numerous benefits to the table:

Understanding market dynamics

The pricing landscape in the hotel industry is in a state of constant flux, influenced by factors such as seasonality, local events, and competitor pricing strategies.

By monitoring hotel prices, you can glean insights into these market dynamics, which in turn, enables you to adjust your pricing strategies accordingly – whether you rely on direct bookings or lean on your network of OTAs via a channel manager.

Optimising pricing strategies

Finding the optimal price point is a delicate balancing act. Price too high (either directly from room costs or via hotel fees) and you risk alienating potential guests; price too low and you may leave revenue on the table.

Hotel price monitoring provides the data necessary to identify the sweet spot that maximises revenue without deterring guests.

Competitive benchmarking

In a market teeming with choices, staying competitive is paramount. Hotel price monitoring allows for a real-time comparison with competitors’ pricing, ensuring that your establishment remains an attractive option for potential guests.

Enhanced guest satisfaction

Offering competitive prices not only attracts guests but also augments perceived value, which in turn, enhances guest satisfaction. A satisfied guest is more likely to return, recommend your hotel to others, and leave positive reviews, all of which are invaluable in building a strong brand reputation.

Data-driven decision making

In the modern age, data is king. Hotel price monitoring furnishes you with a robust data foundation to make informed decisions. Whether it’s setting room rates or devising special offers, having a clear understanding of the pricing landscape facilitates smarter, data-driven decisions.

Revenue management

Effective revenue management is a cornerstone of a successful hotel operation. By monitoring and analysing pricing trends, you can devise strategies that maximise revenue during peak periods and keep the cash flow steady during off-peak times, offsetting your hotel costs and staying profitable year-long.

Resource allocation

With insights derived from price monitoring, you can allocate resources more efficiently. For instance, during high-demand periods, resources can be channelled to ensure optimal guest experience, whereas, during low-demand periods, efforts can be directed towards marketing and promotional activities.

Long-term growth

Consistent hotel price monitoring and the subsequent insights gained lay the groundwork for sustainable growth. It aids in understanding market trends, guest preferences, and the effectiveness of pricing strategies, all of which are crucial for making long-term strategic decisions.

“At first I thought it was just a myth that using SiteMinder could boost revenue. But it turned out to be true. Revenue did increase, we are also more efficient in terms of time; we can get more work done.”

Shadi Wijaya,

Corporate Director of Revenue

The Phala Group

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How to find the best hotel price tracker

Finding the right hotel price tracker is crucial for effective price monitoring and subsequently, for the financial success of your hotel.

The ideal tool should not only track prices but also provide actionable insights that can be utilised for strategic decision-making. Here are some key factors to consider:

• Ease of integration – Look for a tool that seamlessly integrates with your existing hotel management systems, thereby streamlining the process of price tracking and analysis.
• Customisation – Every hotel is unique, and a one-size-fits-all solution may not cater to your specific needs. It’s crucial to choose a tool that can adapt to you – not the other way around.
• Real-time data – In a fast-paced industry, having access to real-time data and hotel price alerts is invaluable. Any hotel price tracking tool worth its salt – and your investment – must have up-to-date information feeding its insights.
• Automation – Manually tracking prices can be tedious and time-consuming. With pricing automation, you can set predefined rules for price adjustments based on market conditions, ensuring your pricing remains competitive without the need for manual intervention.
• Comprehensive reporting – Having a myriad of data at your fingertips is great, but understanding that data is where the real value lies. SiteMinder’s robust reporting features, for example, translate data into actionable insights, aiding in informed decision-making.
• User-friendly interface – A complex, hard-to-navigate interface can deter even the most tech-savvy individuals. Any software you and your staff use must be streamlined, with smart dashboards that don’t conceal useful information with screeds of unnecessary data and complex navigation.
• Customer support – Reliable customer support to assist you whenever you face challenges or have queries is indispensable. This is especially true for hotels with multiple sites and large numbers of rooms; the greater the complexity of your business, the more important it is to have expert, responsive support.
• Training and resources – Having a wealth of training resources at your disposal can significantly enhance your understanding and utilisation of the price tracking tool. No matter how advanced a price tracking tool may be, it’s worthless if it doesn’t have the tutorials and guidance necessary to use it effectively.

Discount pricing is a revenue management strategy where prices are lowered temporarily or for certain conditions to attract guests and boost occupancy rates. By offering discounted prices, hotels aim to increase demand, especially during off-peak periods, without compromising on profitability.

Why is discount pricing used in hotels?

Hoteliers utilise discount pricing to fill rooms during slow seasons, entice loyal customers, or to stay competitive when market conditions change. By understanding and employing discount pricing strategically, hotels can maximise revenue, improve guest satisfaction, and enhance their overall brand image.

Discount pricing strategy examples

Each discount pricing strategy serves a unique purpose and caters to different market demands. Here’s a closer look at how these strategies could be deployed:

• Quantity discounts. Offer lower rates for guests booking multiple rooms, ideal for group travellers or event attendees. Example: A 10% discount for bookings of 5 rooms or more.

• Length of stay discounts: Encourage longer stays by offering lower per-night rates. Example: A 15% discount for stays of 3 nights or more.

• Loss leader discounts: Offer one service at a discount to promote sales of other services, like a discounted room rate to promote spa services. Example: Book a room at a 20% discount and receive a voucher for 50% off spa services.

• Seasonal discounts: Offer special rates during off-peak seasons to attract guests. Example: Winter getaway package at a 25% discount.

• Last minute deals: Offer discounted rates for last-minute bookings to fill vacant rooms. Example: Book within 48 hours of check-in and receive a 30% discount.

• Package deals: Bundle room rates with additional services or amenities at a discounted price. Example: Romance package including room, dinner, and spa service at a 20% discounted rate.

• Direct booking discounts: Encourage guests to book directly through the hotel’s website by offering a discount. Example: Book direct and save 10% on your stay.

• Loyalty programme discounts: Offer exclusive rates or perks to members of your loyalty program. Example: Loyalty members receive a 15% discount on room rates.

• Non-refundable rate discounts: Offer lower rates for guests willing to pay upfront with no refund option. Example: Book now and pay upfront to save 20% on your room rate.

• Event-Based discounts: Offer special rates during local or global events or holidays. Example: Festival special, book during the event and receive a 15% discount.

• Partner discounts: Collaborate with local businesses or online platforms to offer mutual discounts. Example: Show your room key at partnering restaurants to receive a 10% discount on your meal.

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Factors that affect hotel discount price

Competition

Competition is a significant factor that influences discount pricing. In areas with a high concentration of hotels, competitive pricing becomes crucial to attract guests. Understanding the pricing strategies of nearby and similar standard hotels can help in setting competitive discount rates.

Analysing competitors’ rates and offerings can provide a benchmark, helping hoteliers devise discount pricing that entices guests while maintaining profitability.

Market demand

Market demand fluctuates based on seasons, days of the week, and during special events. Higher demand usually allows for higher prices, while lower demand may necessitate discount pricing to attract guests.

Monitoring market demand and adjusting discount pricing accordingly can help maximise occupancy and revenue.

Economic conditions

The broader economic climate significantly impacts a guest’s spending capacity. In tougher economic times, discount pricing can act as an incentive for cost-conscious travellers. Conversely, during economically prosperous periods, there might be less necessity for discount pricing.

OTAs

OTAs are a double-edged sword. They can help increase a hotel’s visibility and bookings, but they also add a level of pricing competition. Often, hotels might find themselves needing to adjust their discount pricing strategies to remain competitive on OTA platforms, which usually showcase the lowest available rates.

External events

Local or global events, such as festivals, conferences, or even adverse situations like a pandemic, can significantly affect hotel discount pricing. Events can lead to increased demand, allowing for higher rates, while adverse situations might require discount pricing to encourage bookings.

Keeping a close eye on the calendar and adjusting pricing strategies in response to external events can keep occupancy rates healthy.

“People who have used numerous systems will find SiteMinder to be extremely user-friendly. Compared to the other complicated systems, it is just so simple to use. When we expand our hotel to other areas, SiteMinder will again be our first choice.”

Pichata Ritchie,

Cluster E-commerce Manager

VALA Hua Hin – Nu Chapter Hotels

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Advantages of hotel discount strategy

Drive demand

Offering discounts can significantly drive demand, especially during off-peak seasons. By lowering room rates, you entice price-sensitive guests and generate interest among those who may not have otherwise considered your hotel.

A well-timed discount can fill your rooms, keeping a steady flow of revenue even in traditionally slower periods.

Increase revenue

While it might seem counterintuitive, discount pricing can indeed boost revenue. By attracting more guests through lowered prices, you increase the chances of selling additional services such as spa treatments, dining, or tours.

Furthermore, higher occupancy rates through discounts can lead to more customer reviews and referrals, which in the long run can attract more bookings at standard rates.

Hotel promotion

Discount pricing acts as a promotional strategy, garnering attention and raising awareness about your hotel. Special offers and discounts create a buzz, encourage word-of-mouth referrals, and can even lead to media coverage.

All of this promotional activity serves to enhance your hotel’s reputation and visibility in a competitive market, improving bookings via all distribution channels.

Increased occupancy rate

An obvious benefit of discount pricing is the potential for increased occupancy rates. With more rooms filled, your hotel maintains a lively, inviting atmosphere which in turn enhances the guest experience. High occupancy rates also better position your hotel in negotiations with vendors and partners.

Upselling

Discounts attract more guests, providing ample opportunities for upselling or cross-selling other services. For instance, a guest who booked a room at a discounted rate might be willing to upgrade to a suite or purchase additional amenities like spa services or dining packages, generating additional revenue.

Guest satisfaction

Offering value through discounts significantly contributes to guest satisfaction. Guests who feel they received a good deal are likely to have a positive perception of their stay, which can lead to favourable reviews and repeat bookings.

A satisfied guest is also more likely to recommend your hotel to others, expanding your customer base.

Seasonal demand

Discount pricing can help navigate the ebb and flow of seasonal demand. By offering discounts during low-demand periods, you can maintain a steady stream of guests year-round. This strategy helps in smoothing out revenue streams, making financial planning and management easier and more predictable.

Cost-based pricing is a pricing method where the selling price of a product or service is determined by adding a markup to the unit cost or, in the case of hotels, the cost of keeping a room available and maintained for use. 

For hoteliers, understanding cost-based pricing as a method for hotel pricing is crucial for setting room rates that not only cover the costs of operations but also provide a healthy profit margin.

Why do hotels use a cost-based pricing strategy?

Cost-based pricing offers a straightforward approach to balancing a pricing strategy, allowing hotels to:

• Cover operational costs: Ensuring all costs are covered is crucial for ongoing growth. This includes fixed costs like rent or mortgage, salaries, and utilities, as well as variable costs like supplies, maintenance, and marketing.
• Achieve desired profit margin: By adding a markup to the cost, hoteliers can set room rates that provide the desired profit margin, enabling reinvestment and financial growth.
• Simplify pricing decisions: The cost-based method provides a simple, straightforward way to price rooms for both direct bookings and via distribution channels, cutting out the complexity and providing an instantly actionable number.

Cost based pricing formula

The basic formula for cost-based pricing is quite simple:

Selling Price = Cost of Service + (Cost of Service × Markup Percentage)

Cost based pricing example

Let’s say the total cost to clean, maintain, and service a room is $50. If the hotel wants a profit margin of 20%, the selling price would be calculated as follows:

Selling Price = $50 + ($50×0.20) = $60

This is a very simple example that considers only the maintenance cost of the room itself. 

More complex calculations would also include things like costs of insurance, costs of running supplementary services, wages for support staff, and so on.

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Key factors to consider when implementing the cost-based pricing method

Implementing cost-based pricing requires a thorough understanding of various factors that could impact the effectiveness of this pricing strategy, as well as a mastery of yield management. In a hotel setting, these factors become crucial for ensuring not just cost recovery but also achieving a competitive edge. 

Let’s delve into some of the pivotal considerations:

Market trends

Understanding market trends is crucial for setting prices that are both competitive and profitable.

• Demand fluctuations – Analyse room demand throughout the year, taking note of peak seasons, local events, and other factors that could drive demand up or down. Adjusting prices accordingly can ensure maximised revenue during high-demand periods while maintaining occupancy during slower times.
• Seasonal variations – Seasonal variations might affect your operational costs; for instance, utility costs may rise in winter due to heating needs. Adapting your pricing to reflect these cost variations is essential to maintain profitability.
• Economic indicators – Stay abreast of economic conditions which might affect consumer spending and travel trends, adapting your pricing strategy to meet changing market dynamics.

Competitor actions

Keeping a close eye on competitors’ pricing strategies can provide insights and help maintain a competitive edge.

• Competitor pricing – Continuously monitor the pricing strategies of competitors. Are they offering lower rates, packages, or value-added services that could sway potential guests? Adjusting your pricing or offerings in response can help maintain a competitive edge.
• Market positioning – Understand your hotel’s positioning in the market in comparison to competitors. Ensure your pricing reflects the value and experience you offer, and is aligned with guest expectations based on your market positioning.

Cost analysis

A thorough cost analysis forms the backbone of an effective cost-based pricing strategy.

• Fixed and variable costs – Regularly review both fixed and variable costs, including staffing, utilities, maintenance, marketing, and distribution costs. Accurate cost analysis is crucial for setting prices that cover costs and deliver the desired profit margin.
• Unexpected costs – Have a contingency plan for unexpected costs such as emergency repairs or unscheduled maintenance. Ensuring a buffer in your pricing for unforeseen expenses can prevent eroding your profit margins.

Price sensitivity

Understanding price sensitivity within your target market can inform your cost based pricing strategy, helping to find the sweet spot that maximises revenue without deterring bookings.

• Customer perception – Gauge how price changes are perceived by your target market. Is there a price point at which guests might choose a competitor? Understanding price sensitivity can help set prices that balance profitability with competitive appeal.
• Value proposition – Ensure your pricing reflects the value you provide. Are guests receiving the expected value for the price they pay? Clearly communicating the value proposition of staying at your hotel can help justify your prices and keep guests satisfied.

Benefits and advantages of cost based pricing for hotels

Cost-based pricing not only ensures profitability but also provides several other benefits:

Transparency

Cost-based pricing offers a clear insight into the financial health of your hotel by aligning prices with the actual costs incurred. This transparency is not only beneficial for internal management but also facilitates clear communication with stakeholders regarding how pricing decisions are made.

It demystifies the pricing strategy, making it easier to explain and justify the rates to stakeholders and even guests, should the need arise.

Planning finances 

With a transparent view of costs through cost-based pricing, budgeting and financial planning become more straightforward and accurate. It allows for a solid foundation upon which future financial decisions can be made, including investments and expansions.

Knowing the cost structure also aids in setting realistic financial goals and expectations, ensuring that the hotel remains financially viable and on a path of steady growth.

Risk management

The predictability that comes with cost-based pricing reduces financial risks associated with pricing decisions. By ensuring that the set prices cover the costs and contribute to the profitability, there’s a level of financial security provided.

Furthermore, being well-versed with the cost structure aids in better contingency planning for unforeseen circumstances, thus enhancing the hotel’s resilience to external financial shocks.

Competitive pricing

Cost-based pricing helps in establishing a competitive pricing strategy that reflects the value proposition of your hotel in comparison to competitors.

By understanding the cost structure, hoteliers can adjust their markup to stay competitive while ensuring cost recovery. This form of pricing provides a grounded approach to pricing decisions, keeping them realistic yet competitive in the prevailing market conditions.

Revenue management

Cost-based pricing provides a solid foundation for revenue forecasting and optimisation, allowing for better management and allocation of resources. By understanding and controlling your costs, you can set prices to achieve desired profit margins, which is crucial for the financial health and sustainability of the hotel.

It also aids in evaluating the effectiveness of current pricing strategies, making adjustments as necessary to meet revenue targets.

“A lot of [the success] is based on a very clear focus on who our customers are and how we can benefit them. Even though we support businesses from really little properties to huge ones, it’s about how you can create sophisticated products and simplify them.”

This has been a guiding principle throughout SiteMinder’s journey, and is still the mission moving forward too, as the company seeks to open the doors to the world of hotel commerce for all, via a single platform that has everything a hotel needs to succeed online.

Many things change over time, however. New complexities emerge as the industry expands, guest behaviours shift, technology continues to develop, and global events impact business in a multitude of ways that are sometimes unpredictable.

In the past 15 years, SiteMinder has endeavoured to keep its finger firmly on the pulse of this change, to ensure existing and new customers are able to thrive in a truly dynamic industry. By maintaining a clear understanding of hotelier needs, the team has been able to regularly introduce new features, partners, and advanced levels of connectivity that not only allow hoteliers to keep the ship steady, but grow their business to its full potential.

Let’s take a look at some of SiteMinder’s history, development, and customer stories.

SiteMinder’s first generation: 2006-2016

The early 2000’s saw an explosion of OTAs, in response to an increasing number of travellers looking to book travel online.

To stay competitive hoteliers had to connect to and distribute via a large number of these new channels. It was a necessity but also a big opportunity to reach more travellers and brand new target markets. The challenge came from having to manage inventory and reservations manually, on an individual basis for each channel connection.

Enter SiteMinder co-founders Mike Ford and Mike Rogers. Mike Ford was an accommodation provider himself, running a large hostel in Sydney, and was frustrated by how time consuming and intensive it was to juggle multiple OTAs. He approached friend and colleague Mike Rogers and asked if he could build a software solution. Soon after, SiteMinder and the channel manager feature was born.

SiteMinder’s channel manager and PMS integration

The Channel Manager, as it was termed then, enabled hoteliers to easily manage 10+ OTA connections – with inventory being automatically updated in real-time across all channels each time a booking was made.

As Chris Denny, the Co-Founder of The Observatory, and one of SiteMinder’s first ever customers remembers:

“We were looking for a channel manager that could give us the ability to quickly and easily update room availabilities and rates across our multiple online travel agencies. When we selected SiteMinder, everyone was impressed with how the technology was really intuitive and seamlessly integrated with our channels.”

This solved a lot of operational headaches for hoteliers, eased pressure on staff, increased reservations, and saved plenty of time. Within a couple of months, almost 100 happy customers were using SiteMinder – but another challenge was already rearing its head.

Most properties were also using some kind of property management system or front desk software, which required hoteliers to re-enter a lot of data as it came in from OTAs to the channel manager. This again soaked up a lot of time for operators, and it was also prone to human error which could result in reservation details being wrong.

“So we built some new software to solve this problem – which was our PMS integration system,” said Mike (Rogers). “This made the flow of data seamless from the PMS to the OTA and vice versa, and cut out hours of manual effort.”

Needless to say SiteMinder was fast establishing itself as a disruptive tech company that got things done for its customers, with Mike confirming this was indeed an internal focus from the beginning.

“Our targets and milestones are set around products and tech. How do we continue adding features to existing products, but also how do we add new products to the suite that hotels can actually use to better their business?” he said.

“Being very aware of customers’ needs is vital, empathising with customers is the critical thing. Being connected to the hotels is the only way to understand that there is a problem.”

The rise of direct booking technology

The next frontier for hotels was to mitigate the expense of OTA bookings, which was and is still expensive due to commission fees.

Guests were searching for travel online a lot more and would often browse a hotel’s website but, finding no way to book other than by phone or email, would choose the convenience of booking online via an OTA. Not only did this eat into profit, but hotels also had no ownership of the guest relationship.

SiteMinder knew an online booking engine was required to enable hoteliers to capture direct business online, it was just a matter of how it was implemented.

Mike Ford spoke about how important it was to achieve the best possible result for customers.

“When we began looking at booking engines to integrate with in 2007/08, we didn’t find much good product. Hotels were using difficult-to-navigate products that were hurting their conversion rates and a lot of them didn’t have the capability to integrate with us. That led us to think if we can’t find any good product to integrate with, we should probably build it for our customers ourselves”, he said.

“We ended up building a booking engine that was simple to manage, but really effective in converting guests that visit a hotel website.”

South of Africa, a unique property group offering four self-catering options as well as three individual hotels to explorers of Africa, was thrilled to be kicking goals with SiteMinder’s booking engine.

“The booking engine is a definite plus and the fact that SiteMinder regularly upgrades it shows they are constantly changing with the times,” said SOA.

Hotels could now win bookings directly from their own website, and later from their Facebook page, increasing profit and opening up more revenue opportunities such as upselling extras, offering packages, and publishing promotions.

Great, but it only worked if the hotel had a website that was easy to navigate, aesthetically pleasing, and compatible with multiple devices as well as being Google-friendly. For many hotels this was not the case. Even today, there are plenty of examples of horror hotel websites or properties that forego having a website at all.

This gap sorely hurt the booking potential of hotels, and obviously limited the effectiveness of the booking engine technology that existed. Again, SiteMinder recognised the pain point for customers and sought to rectify it.

Instead of paying a web developer thousands of dollars for an undetermined outcome, SiteMinder provided hoteliers with a website builder. This software is a constantly evolving set of pre-designed website themes that hotels can set up within hours, and comes with all the nuts and bolts to both attract and convert guests – with seamless booking engine integration.

An industry leader and a provider for all property types

SiteMinder was fast becoming a sophisticated platform that large independent properties, and even groups and chains, could rely on to master their distribution challenges.

But what about the small properties, the bed and breakfasts or motels that wanted to compete in the online environment and run their property more smoothly but only had the time and budget for essential features?

This question spawned an entirely new brand, Little Hotelier, in 2013. This allowed small properties to forget their excel spreadsheets and notepads and move to an all-in-one solution that managed operations and helped them sell rooms online.

By 2016, SiteMinder had conquered what 90% of startups fail to do – survive. In fact, thrive is a much more appropriate descriptor as by this point SiteMinder had:

• More than 20,000 customers
• 300 OTA connections
• 200 PMS partners
• Over 500 employees around the world
• Four offices across Sydney, London, Dallas, and Galway
• Been globally recognised as the industry’s leading channel manager provider

Yet there was a lot more still to come. As traveller behaviour began to change and hoteliers looked to expand their potential, a new wave of SiteMinder development was in the works.

SiteMinder’s second generation: 2017-2022

This period of time saw enormous growth in the online space. By 2017, 4 billion users surfed the internet and as each year passed social media and the sharing economy became ever more entrenched within society.

Ecommerce has well and truly established itself with the likes of Amazon. There’s nothing you can’t do or buy online anymore – and you can do it all with your mobile phone.

For hotels the situation was becoming complicated as they:

• Faced higher expectations from guests
• Had a lot more competition, meaning they had to offer more and find new ways to stand out from the crowd.
• Saw expanding tech innovations such as remote check-in, keyless room entry, and smart devices
• Were met with additional online sales channels such as wholesalers, GDS, and metasearch
• Now had to work smarter and faster, while providing an unprecedented level of personalised service.
• Were required to pay even closer attention to revenue and reputation management
• Fought staff shortages and looked for ways to increase efficiency, particularly later on amidst the global COVID-19 outbreak

The world wasn’t getting any bigger but suddenly there was a lot more in it and this meant hotels needed options at their disposal to match guest demands.

SiteMinder had always been an open platform but it realised it had to give hoteliers access to a whole new set of technology partners, if they were to keep up.

The good news was that there was also massive growth in the number of companies offering hoteliers the capability to enhance the guest offerings and optimise business revenue, but connectivity was an issue…

“This is where Siteminder Exchange (or SMX) came in,” said Mike (Rogers). “We built an open exchange which allowed these companies to create one simple connection to us and they in turn gained the capability of leveraging the hundreds of connections we had built up over the years.

“You can think of SMX as the plumbing… connecting all of these software companies to hotels via our platform.”

This led to hoteliers having access to the Hotel App Store and Direct Booking Plug-ins, opening up new revenue streams and easy ways to better communicate and build relationships with guests.

So being open was a core priority, but simplicity still held strong and always will.

Making life easier with simplicity

To further ease the pressure on hoteliers, SiteMinder did what it does best and started coding solutions that included expanding the functions of existing features like the booking engine and channel manager.

Firstly, Demand Plus, an add-on for the booking engine.

With direct bookings becoming ever more valuable as OTAs got better and better at capturing online traffic, hotels needed a way to compete.

“Connecting to high performing metasearch engines like Google Hotel Ads, Trivago, and TripAdvisor helped to level the playing field, and to allow hoteliers to take advantage of this, we created Demand Plus,” explained Inga Latham, SiteMinder’s Chief Product Officer.

“This ensured our customers could promote their property on these channels, with no upfront expense or effort… It’s literally a one page sign up & you are done.”

Maria Torres, General Manager of Hotel Mirador Las Grullas, said the property was able to increase direct reservations with Demand Plus.

“My experience with Demand Plus has been great so far, helping us to get more direct reservations that contribute to high occupancy rates during this summer,” she explained.

“The process to get up and running was all good, a really smooth experience.”

Next was a payment processing solution that allowed hoteliers to easily process guest payments and refunds from within SiteMinder’s platform for the first time, saving them around four minutes on each transaction and eliminating the risk of credit card declines and no shows.

At the same time Little Hotelier launched its mobile app, allowing small operators to run their business from anywhere, giving them freedom from the front desk and allowing them to get more done in their day.

Then came the mammoth task of simplifying life for large groups and chains. With so many different rate plans across multiple properties in many locations, distribution was more than a headache for many enterprise brands. Luckily Inga and team had the perfect solution.

“We built a distribution-centric tool for hotel groups and chains, specifically targeting operational efficiency and revenue optimisation for a segment that SiteMinder has had a long history of serving,” she said.

Director of Revenue at TFE Hotels, Amanda Hoolihan, said SiteMinder Multi-Property had significantly alleviated the pressure on staff.

“It used to take my team a good week to load everything that was needed to roll out a company-wide promotion. SiteMinder has saved us about two days, each time,” she said.

“We generally do three to four campaigns a year that are network-wide, but at the moment we’re doing things a little bit differently and doing more. So, already, SiteMinder is saving my team around 16 days of work each year, which is incredible.”

Intelligence, collective power and a look towards the future

With the pressure constantly on and so much to consider in the modern industry, hoteliers needed better access to data and information – and they needed a lot of it if they wanted to devise effective strategies.

Even knowing how to price rooms just right required quick access to easily digestible data. This was the foundation for SiteMinder’s business intelligence tool Insights.

With Insights hoteliers had access to data that allowed them to act smarter, giving them:

• Reports on key hotel metrics
• An understanding of which channels, rate plans and rooms were performing best
• Information on how their competitors were pricing their rooms and how their future room sales were tracking compared to previous years

Data alone isn’t an answer and it isn’t always easy to know immediately what the best way to action data and insights is. Sometimes external help is needed.

SiteMinder answered this call with the SiteMinder Partner Program; a powerful coming together of industry experts that hoteliers could rely on to provide crucial consultation.

This program quickly grew to be 500 strong and by now SiteMinder had added to its previous accolades by expanding its customer base to 47,000+ in 150 countries.

Oh, and a successful IPO had occurred…

Now it was time to take everything to the next level.

SiteMinder’s next generation: The era of hotel commerce

Looking forward, there is still much room for growth, to create an even smoother experience for hoteliers.

It’s time to bring everything together under one roof. One interface. A single platform that will allow hotels to better tackle their increasing challenges and:

• Meet the expectations of guests
• Seize every opportunity to increase revenue
• Access the widest, most relevant choice of direct and indirect channels
• Take full control of property performance

The world is getting more complex for hoteliers. More data, more tech features, more apps, more integrations, more guest expectations – and most of it has traditionally been fragmented, making it difficult for hoteliers to make fully informed business decisions.

“We need to move to a model where we can embrace all of this complexity but still make it accessible to our customers,” said Mike.

“The actual development effort kicked off 3 years ago and I have to say, it’s the most complex engineering project I have ever been a part of.”

The end result for hoteliers is anything but complex – they will experience a single, unified user interface across all products and features. This will make everything they currently do much simpler and more efficient.

Along with this centralised suite of features will come enhancements that expand on the existing functionality, giving hoteliers everything they need to succeed in the world of hotel commerce. Hoteliers will be able to aspire to run their business just like the ecommerce giants of the world such as Amazon.

SiteMinder invites you on this next stage of the journey…