Hotel Management Software for Small Hotels

In an industry that thrives on the personal touch, hospitality has traditionally brimmed with human-to-human interaction. However, in today’s age, hotel management is undergoing a tremendous transformation, largely due to the integration of software solutions tailor-made for the industry. For small hotels, these innovations are not just novel conveniences but invaluable tools that can significantly impact daily operations, enhance guest experiences, and improve overall profitability.

This blog post is designed for small hotel owners, hospitality professionals, and tech-savvy managers who are navigating the options available for streamlining their businesses through software solutions. Whether you’re considering implementing hotel management software for the first time, or looking to upgrade your current system, this guide will walk you through the key features, the benefits you should expect, and how to choose the right solution for your establishment.

Why Hotel Management Software Matters for Small Hotels

The dawn of hotel management software brought with it a new era of efficiency and customer service. Small hotels, with their unique challenges and personalized approach, find that management software helps bridge the gap between scale and service. It’s all about maximising the limited resources you may have and ensuring that every guest stays not only meets but exceeds expectations.

Streamlined Reservation Management

Making and managing reservations manually is arduous and prone to errors. A software solution automates this process, ensuring that rooms are booked accurately and efficiently, without the risk of double-booking and the subsequent headache it causes.

Efficient Room Inventory Control

For a small hotel, every room left unoccupied is a lost opportunity. With software that offers real-time inventory tracking, you’ll always know which rooms are available and can manage your resources accordingly to increase occupancy rates.

Enhanced Guest Experience

From online check-ins to personalised services, hotel management software enables small hotels to deliver a boutique experience without compromising on professionalism and service. Anticipating and fulfilling guest needs becomes easier with technology on your side.

Simplified Billing and Invoicing

Generating bills and handling invoices manually can be time-consuming. With software, this becomes a matter of a few clicks, reducing the chances of human error and making the checkout process smoother for both staff and guests.


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Key Software Features for Small Hotels

Selecting the right hotel management software hinges on the features available to support your hotel’s unique needs. The following are the must-have features that small hotels should look for in their software solution.

Reservation System / Booking Engine

A robust reservation system should allow for both front desk and online bookings. It should also be capable of storing guest preferences, histories, and future reservations to enhance personalisation. An integrated, user-friendly booking engine is crucial for converting website visitors into guests. This feature can also help with upselling by promoting additional services and packages during the booking process.

Channel Management

This feature lets you manage availability and rates across various online distribution channels like OTAs (Online Travel Agencies) and the hotel’s website in real-time, extending your reach without increasing workload.

Dynamic Pricing Tools

The capability to adjust room prices based on demand, season, and other factors automatically can be a game-changer for small hotels, helping to stay competitive and maximise revenue. This feature also enables smaller establishments to compete with larger chain hotels by offering dynamic rates.

Housekeeping Management

Housekeeping is a crucial aspect of a hotel’s daily operations. An efficient housekeeping management tool allows managers to track room cleaning schedules, assign tasks and monitor staff performance, leading to quicker turnarounds and better guest experiences.

Reporting and Analytics

Insightful reports provide data on occupancy rates, revenue, and more. Such analytics help in making informed business decisions and can be essential in refining your pricing and marketing strategies.

Customer Support

This may not be a ‘feature’ per se, but it’s critical. Ensure that the software provider offers reliable customer service, including onboarding assistance and ongoing support, since small hotels often lack extensive IT staff.

Success Through Software: Small Hotel Case Studies

Here are a couple of real-world examples demonstrating how hotel management software can make a positive impact on small hotels’ operations.

Success Through Software: Opal Ridge Motel Case Study

In the heart of Queensland, the Opal Ridge Motel, a 4-star establishment in Collinsville, sought to enhance its pricing strategy and revenue. Director Eileen Meyer turned to Preno, their property management software, impressed by its compatibility and positive reviews. By incorporating Preno’s Dynamic Pricing tool, the motel saw an increase of $315 within a week and a half. The ease of use and seamless integration with existing systems made Preno an invaluable asset, streamlining bookings and boosting revenue. Eileen noted that dynamic pricing not only optimised revenue but also encouraged guests to book early, fostering better business forecasting.

Success Through Technology: Skylark Cabin Case Study

Skylark Cabin, an idyllic retreat in Ben Ohau near Twizel, revolutionized its guest experience by switching from Airbnb to Preno’s advanced property management system. Owned by Garry and Liz, the cabin offers a unique stargazing experience in the Aoraki Mackenzie International Night Sky Reserve.

Embracing Preno’s user-friendly platform and seamless messaging system, Skylark Cabin enhanced guest interactions and expanded its online presence by integrating with popular OTAs. By utilising Preno’s ‘Optional Extras’ feature for upselling, the cabin increased positive reviews and revenue, offering guests bespoke experiences like helicopter flights and stargazing tours.

The transition to Preno not only optimised operations but also positioned Skylark Cabin as a destination rather than just accommodation. Through innovative technology and personalised service, Garry and Liz transformed Skylark Cabin into a beacon of success in the hospitality industry, setting the stage for continued growth and exceptional guest experiences.

Choosing The Right Software For Your Small Hotel

Selecting the right hotel management software is a decision that should not be rushed. Take the time to evaluate what you need now and what you may require as your business grows. Consider the following factors to ensure you choose the best fit:


Understand the full cost of ownership. This includes initial setup and installation, as well as ongoing maintenance fees. Look for transparent pricing structures that don’t surprise you with hidden costs. Consider if the software offers a free trial or demo to test its features and functionality.


You may be a small hotel today, but what about tomorrow? Ensure the software can scale with your business. It should accommodate your anticipated growth without requiring a complete overhaul. Check if the provider offers add-ons or additional features to meet your evolving needs.


Your hotel management software should be seamlessly integrated with existing systems like your accounting, point of sale, and payment systems. This saves time and reduces errors by eliminating the need for manual data entry.


Your staff may not be tech experts, so ease of use is paramount. A complicated system that requires extensive training won’t benefit anyone. Look for a system with an intuitive interface and comprehensive customer support to ensure your team can utilise it to its full potential.

Customer Support

Technical issues are bound to arise. Reliable customer support can make the difference between a minor inconvenience and a full-blown crisis. Look for a provider with a dedicated support team and multiple channels of communication.

The decision to invest in hotel management software is a significant one for small hotel owners. It’s an investment not just in technology, but in your guests’ experience, your staff’s efficiency, and ultimately, your hotel’s success. With the right software in place, even the smallest of hotels can provide a level of service that rivals larger establishments. If you’re ready to elevate your small hotel to new heights of efficiency and guest satisfaction, it’s time to explore the world of hotel management software. Make this technology a pivotal part of your business strategy, and watch your hotel flourish.

If your company is exploring the benefits of hotel management software, you might also want to read these articles:

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About the author

Kendra, the Marketing Content Manager at Preno, brings her expertise in Marketing and Communications to help hoteliers stay ahead of the curve. With a deep passion for the industry, she is committed to providing valuable insights and strategies for success.

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