Choosing the Right Hotel CRM Software: Custom vs. Off-the-Shelf

6 min readOct 14, 2024

Acropolium gives a complete overview of hotel CRM systems, explaining how they are different from generit customer relationship management systems while breaking down pros and cons of custom and off-the-shelf solutions.

In the hospitality industry, building strong guest relationships is the cornerstone of thriving in a competitive market. Hotel CRM systems leverage guest data to improve customer service, streamline reservations, and enhance marketing efforts.

Since the tourism and hotel sector is moving in the digital direction, leisure businesses can’t do without valuable, actionable data insights into customer preferences and behavior. At this point, you, as a hotel owner, might struggle with the choice between a fully bespoke system or a ready-made one.

Acropolium

With 13+ years of developing and integrating CRM, ERP, and HMS solutions for hotels, we will walk you through essential features of hotel customer relationship management tools. Let’s find out which option — custom or off-the-shelf works for you.

CRM for Hospitality Industry Operations: Why It Matters

With the global adoption of specialized hotel CRM software, the market is forecasted to sustainably grow at a CAGR of 10.2%, reaching $6.74 billion by 2032.

Hotel CRM systems are specialized tools designed to elevate guest interactions, managing preferences, stay history, and reservation details. Unlike generic CRMs, a CRM in hotels is built with the unique hospitality industry needs in mind, providing a personalized guest experience.

With the market valued at $2.33 billion in 2023 and projected to grow at a 10.2% CAGR to $6.74 billion by 2032, this growth is fueled by the rise of cloud-based and mobile CRM solutions. With the adoption of hotel technology, especially for customer management, businesses uncover tons of opportunities for development:

Enhanced guest experience. With a CRM, businesses can craft individual guest interactions with unique preferences like room type, pillow firmness, and extra towels. At the same time, you can maintain continuous communication for lasting relationships.
Increased revenue. CRMs also allow you to leverage guest data for targeted upselling, cross-selling, and personalized offers. This way, it’s driving more direct bookings and reducing third-party fees.
Operational efficiency. You can automate routine tasks, integrate with PMS and POS systems, and streamline operations for faster service and fewer errors.
Data-driven decision making. Last but not least, you gain insights into guest behavior, booking trends, and operational performance to optimize marketing efforts and hotel operations.

Essential Features of Hotel CRM Systems

Before evaluating what kind of CRM your hotel requires, you should be aware of the instrumental software features every product must offer.

Guest Profile Management

A CRM for hotels isn’t just about storing guest information. It can help you create memorable experiences that start long before check-in. Imagine a system that builds a detailed profile of every guest, remembering their preferences like favorite rooms, pillow choices, or even a fondness for extra towels. This knowledge allows you to offer personalized service that feels seamless and thoughtful, making guests feel truly valued from the moment they arrive

Booking and Reservation Management

The CRM has to effortlessly manage bookings and reservations, ensuring no double bookings and allowing guests to get the exact room they want. Every request should be tracked and every special need accommodated. Your team no longer has to juggle multiple systems — everything is centralized and easy to manage.

Task Automation

A hospitality CRM extends its value beyond operational efficiency by enabling automated communication that enhances guest engagement. This includes sending personalized messages such as welcome notes before arrival and follow-up thank-you emails after departure. By fostering meaningful connections through these tailored interactions, the system helps convert first-time visitors into loyal, repeat guests.

Communication Tools

Automated communication tools send personalized emails, SMS, and messages at key points, such as booking confirmations, pre-arrival notes, and thank-you messages. This way, you can ensure consistent and thoughtful engagement with guests throughout their stay.

Loyalty Program Integration

CRM software used in hotel industry operations should support the integration of loyalty programs, rewarding repeat guests with exclusive perks and making them feel like VIPs. As these guests return again and again, they build a relationship not just with your brand but with the entire experience you create.

Analytics and Reporting

In the background, powerful analytics and reporting tools are quietly working, giving you a clear picture of your hotel’s performance. You’ll know what’s working, what’s not, and where to focus your efforts. Guest behavior, booking trends, and marketing effectiveness all come into view, helping you make data-driven decisions that enhance both service and revenue.

Integration with Other Systems

The seamless integration of hospitality CRM software with other systems, such as property management and point-of-sale platforms, ensures operational cohesion. This synchronization allows your team to concentrate on their core responsibility — providing exceptional guest experiences.

Custom Hospitality CRM vs. Off-the-Shelf: What to Choose?

Choosing between custom CRM and off-the-shelf software can significantly impact your hotel’s operations and guest satisfaction. A custom CRM is designed for your unique objectives, providing personalized features and workflows that enhance efficiency. Off-the-shelf solutions, on the other hand, come with a standard set of functionalities and limited customization options.

Though custom software may have higher upfront costs, it proves more cost-effective over time. Tailored solutions eliminate ongoing subscription fees and additional purchases often required for advanced features in off-the-shelf systems. Custom CRMs also offer greater scalability, growing alongside your business without the need for costly upgrades.

They provide full control over data security and compliance, allowing you to implement tailored security measures, unlike off-the-shelf CRMs, which offer standard protection that may not meet specific regulations.

Furthermore, custom solutions are made with your specific user base in mind, offering a more intuitive experience and access to dedicated support. In contrast, off-the-shelf options cater to a general audience with standardized support services.

Developing Hotel CRM Software with Acropolium

Acropolium specializes in developing custom CRM software for the hospitality industry. We’ve delivered 45+ solutions for businesses ranging from small hotels to large chains, ensuring GDPR compliance and leveraging ISO-certified processes.

Our expertise includes cloud technologies, AI, machine learning, big data, and blockchain to streamline operations, optimize marketing, and elevate guest stays. Whether you need a low-code MVP or a complex SaaS solution, we have delivered numerous products that bring measurable results to our clients. Below, we’re sharing some of our recent success stories.

Hotel Revenue Management and Demand Forecasting Solution

A luxury hotel management company required a scalable CRM to accommodate growing guest numbers and enhance satisfaction. We developed a tailored revenue management system with dynamic pricing, automated demand forecasting, and integrated analytics. This solution unified booking, market, and competitor data, driving a 15% rise in occupancy, 18% revenue growth, and a 20% boost in operational efficiency.

Cloud-Based Hotel Management System

Our client sought to establish their B2B hotel platform as a leader in digital management. Acropolium built a cloud-based PMS with real-time data integration, connecting 12 hotel networks and increasing platform integration by 82%. This led to a 9.7% expansion in the customer base and a 14.5% rise in annual recurring revenue.

Final Words

For modern hoteliers, digitizing hotel customer relationship management is critical for maintaining competitive positions and ensuring consistent business performance. A well-designed CRM enables hotels to reimagine operations, reduce manual processes, and prioritize delivering exceptional value to their guests.

Fortunately, there is no need to invest in an in-house development team or face significant budgetary concerns. Acropolium provides a subscription-based service that addresses all your web development requirements for a fixed monthly fee.