Like any other industry, hotels have realized that technology adoption is no longer optional — it is the backbone of growth. This shift has led to a gradual but encouraging rise in IT investments across the hospitality sector.
In 2022, hotels allocated about 4–5% of their total revenue toward IT, a slight improvement from 2021. With hospitality bouncing back globally, this trend is expected to accelerate .
IT Spending Trends in 2023 and Beyond
Our interactions with hoteliers and industry experts reveal that IT budgets are no longer just a cost center — they are now seen as strategic investments that directly impact profitability and guest experience.
Cloud Migration Is a Priority
Nearly 52% of hotels believe cloud technology will have the biggest operational impact in 2023. Cloud-based systems eliminate the need for expensive servers and on-site maintenance, allowing hotels to:
- Access property data anytime, anywhere — crucial for owners managing multiple properties remotely.
- Scale operations easily as demand fluctuates.
- Benefit from automatic updates and secure backups.
Reference: Hospitality Technology’s Lodging Technology Study confirms this trend, with a majority of hotels prioritizing cloud migration.
Increased IT Budgets
Over 70% of properties plan to expand their IT spend by at least 2% compared to last year. The additional investment is focused on:
- Cloud-based PMS upgrades with front desk, housekeeping, and PoS.
- Guest-facing tech such as mobile check-in, keyless entry, and self-service kiosks.
- Automation tools like channel managers and web booking engines to reduce manual work.
- Data analytics and reporting for better forecasting and staffing decisions.
Reference: PwC reports that 70%+ of hotel executives are investing in automation and cloud solutions . Research by Duetto shows that 77.6% of hoteliers expect to increase IT investment over the next three years .
Focus on Operational Efficiency
Efficiency is at the core of this IT spending growth. Hotels are targeting systems that:
- Automate repetitive tasks like room assignment and night audits.
- Optimize distribution through real-time OTA management to reduce overbookings and maximize visibility across all channels.
- Enhance guest satisfaction with faster check-in, personalized messaging, and seamless payments.
Reference: A global Hospitality Technology Report highlights that 86% of hoteliers consider PMS the most critical tool, followed by RMS and channel manager .
Hotel PMS Takes Center Stage
When hotels talk about “moving to the cloud,” they’re often referring to adopting a cloud-based Property Management System (PMS) — the nerve center of modern hotel operations.
Why PMS is Essential
A robust PMS allows hotels to:
- Automate reservations, front desk, housekeeping, and billing.
- Integrate with channel managers and web booking engines to boost online sales.
- Generate real-time performance reports to track occupancy, ADR, and revenue trends.
For independent hotels, a PMS with basic modules may be enough. For hotel groups, a multi-property & CRS system is essential for centralized guest data, availability tracking, and reporting.
Product Spotlight: Hotelogix Multi-Property PMS & CRS
Hotelogix helps hotel groups manage multiple properties from a single dashboard, offering:
- Centralized Control: View availability, manage rates, and update inventory for all properties in real-time.
- Integrated CRS: Accept reservations directly from your central reservation office or website with accurate room data.
- Group-wide Reporting: Access consolidated performance metrics, helping management make faster, data-driven decisions.
- Seamless Integrations: Connect with revenue management systems, channel managers, and booking engines for a complete distribution strategy.
This makes Hotelogix a strong technology partner for hoteliers looking to modernize operations while keeping costs under control.
Key Factors Hotels Must Consider
1. Cost Optimization
- No upfront infrastructure cost — no servers or heavy IT teams required.
- Subscription pricing — flexible monthly or annual plans.
- Free product upgrades — always stay on the latest version.
These factors make cloud PMS one of the most cost-effective solutions for small and mid-sized hotels.
2. Operational Control
- Small Hotels: Need front desk, housekeeping, PoS modules, plus integration with a booking engine and channel manager.
- Hotel Groups: Need a multi-property system for group-wide data access, call-center bookings, and centralized reporting.
Third-Party Integrations Are Critical
To compete in 2025 and beyond, hotels must ensure their PMS integrates with:
- Revenue management systems (RMS): Dynamically adjust pricing based on demand and competitor rates.
- Channel Managers & Booking Engines: Automate OTA updates and increase direct bookings.
- Accounting & CRM Tools: Improve financial visibility and guest engagement.
- Online Reputation Management: Monitor and respond to reviews in real time.
A PMS offering API-based integrations ensures hotels stay future-ready and competitive.
Choosing the Right PMS: A Quick Checklist
When selecting a PMS, hoteliers should look for:
- Ease of use: Simple interface, quick staff adoption.
- Vendor credibility: Verified reviews on Capterra, HotelTechReport.
- Support & training: 24/7 assistance to avoid operational disruption.
- Scalability: Ability to add modules or upgrade to multi-property management as the business grows.
Frequently Asked Questions (FAQ)
Q1-How much should hotels spend on IT annually?
A- On average, hotels spend around 4–5% of their annual revenue on IT investments, but this number is rising as more hotels move to cloud-based solutions .
Q2-What is the ROI of a PMS investment?
A-Hotels that adopt a cloud PMS report higher occupancy rates and improved RevPAR, thanks to better automation, distribution, and centralized reporting .
Q3-Why is cloud migration so important for hotels?
A-Cloud migration reduces IT maintenance costs, provides remote access, and ensures automatic updates—making it easier for hoteliers to manage operations efficiently across multiple properties.
Q4-Which integrations are must-have for a PMS?
A-Hotels should prioritize PMS solutions that integrate with channel managers, web booking engines, revenue management systems, accounting software, and CRM tools for a seamless workflow.
Q5-How do IT investments improve guest experience?
A-Technology enables faster check-ins, personalized communication, real-time service requests, and error-free billing, all of which directly enhance guest satisfaction and loyalty.
Final Thoughts
Hotels that strategically invest in cloud-based solutions are already seeing measurable gains — from improved guest satisfaction to higher revenue per available room (RevPAR). The key is choosing a PMS that scales with your business and integrates with your entire technology stack.
As guest expectations evolve, digital transformation is no longer optional — it’s a competitive advantage.