At Heads On Pillows, we’ve worked with many hotel owners across Australia and Vietnam, and one question that often comes up is: Should we build our own booking management system for our hotel website?

It’s a valid question, and we totally understand – whether you’re looking to enhance your booking system or integrate with popular platforms like Booking.com. Your hotel website is the direct line to potential guests, so it’s essential to manage bookings in the most effective way.

But should you build a custom system or use something off the shelf? Let’s break it down and help you make the right decision.

Building Your Own Booking System The Pros and Cons

Why Build Your Own?

• Fully Customisable: If your hotel has specific needs – whether it’s unique room types, booking flows, or integration with other systems – building a custom solution gives you complete control.
  For example, Ovolo Hotels in Australia developed their own system, offering guests a seamless booking experience integrated with loyalty programs, promotions, and special room offerings.
• Long-Term Integration: Building your own system could allow for future integrations with third-party booking platforms when they become available. The Langham Hotels in Australia started with a custom-built system and later integrated it with multiple OTAs (Online Travel Agencies) as their international reach grew.
• Total Control: When you build your system from scratch, you’re in charge of every feature, function, and update. You can modify it as needed based on changing trends or specific hotel promotions that might not be supported by generic systems.

But Here’s What You Need to Consider

• It’s Expensive: Custom systems are great, but they come with a hefty price tag – both in terms of time and money. According to a Hotel Tech Report, custom-built solutions can cost anywhere from $10,000 to $100,000, depending on complexity and features. On top of that, you’ll need ongoing development and maintenance costs.
• Requires Expertise: Developing and maintaining your own system isn’t something that happens overnight. You’ll need a team (or at least a reliable developer) to ensure the system stays secure and up to date.
  For example, Zoku Amsterdam spent significant time and resources building a system to manage both guest experience and backend operations.
• Risk of Overcomplicating Things: Sometimes, a simpler solution is the better option. If your hotel is small or doesn’t require advanced features right away, a custom system might be overkill. Many boutique hotels have found success using off-the-shelf systems that meet their basic needs and are easy to scale.

Read more: How Much Does a Website for Hotel Cost?

Out Booking Engine Systems with Built-in PMS: Is This the Shortcut?

Many off-the-shelf systems, like Cloudbeds, come with a built-in PMS that integrates with the hotel booking engine, helping you manage reservations, guest check-ins, check-outs, billing, and reporting. This saves time compared to managing separate systems.

These systems also connect seamlessly with multiple OTAs (Online Travel Agencies), allowing you to manage bookings from platforms like Booking.com, Expedia, and Airbnb in one place, preventing overbookings and simplifying operations. This integration is ideal for hotels looking to expand their reach across multiple channels effortlessly.

Why Use an Off-the-Shelf System?

• Faster and More Cost-Effective: These systems are pre-built, meaning you can have your hotel website and booking management system up and running quickly, without the high costs of custom development. Cloudbeds, for example, has reduced setup times for hotels by 40% and increased bookings by 20% on average.
• Proven Security: Many of these systems come with built-in security features, making it easier to comply with regulations and protect guest data. For instance, Guestline, another popular hotel management software, offers PCI DSS-compliant payment systems to protect guest information.
• Ongoing Support and Updates: When you use an off-the-shelf system, you’ll receive ongoing updates and support from the provider, meaning you won’t have to worry about managing everything yourself. RoomRaccoon is a good example, as it automatically updates its system to incorporate the latest industry trends, without hotel owners needing to do anything.

What You Might Miss Out On

• Limited Customisation: While off-the-shelf systems are reliable, they may not offer all the features or flexibility that a custom-built system could provide. You might have to adapt your hotel’s processes to fit the system. For example, IHG Hotels (InterContinental Hotels Group) uses off-the-shelf systems for several of their smaller chains, but the options for customisation are often limited.
• Subscription Fees: Most off-the-shelf systems charge monthly or annual fees, which can add up over time. However, they’re generally much more affordable than building your own system. For instance, Cloudbeds charges around $2 per room per month on average, which is a reasonable cost for most small to medium-sized hotels.

What’s the Best Option for Your Hotel?

The answer really depends on your hotel’s needs, budget, and long-term goals. If you’re running a small to medium-sized hotel and need something quick, cost-effective, and easy to use, an off-the-shelf system could be the perfect fit. 

Many of these systems even come with the ability to integrate with third-party platforms as your business grows. Hotelogix, for example, helps over 3,000 hotels worldwide grow by integrating with other channels as their business expands.

However, if you have the resources, a large hotel with a strong brand name that could have direct bookings, unique requirements, and want complete control, building your own system could provide a tailored solution that works perfectly for your hotel. It also gives you flexibility for future integrations when platforms like Booking.com become available in your country.

Final Thoughts from Heads On Pillows: Let’s Make the Right Decision Together

At Heads On Pillows, we always encourage hotel owners to think about where they want to be in the future. If you need flexibility, ease of use, and a quick setup, go for an off-the-shelf solution. But if you have big plans and want something that’s built just for your hotel, creating a custom system could be the right path.

No matter which route you choose, we’re here – with our expert hotel website development team – to guide you through the process and ensure that your booking system works for you. Reach out to us if you need help making the right choice for your hotel – we’ve got your back!