As technology rapidly advances, hoteliers face pressure to upgrade property management systems (PMS) and other tools, but the costs can quickly mount.

While many PMS providers offer initial low-cost packages, essential features often come at an extra charge, forcing hotels into costly upgrades for revenue management, CRM, and POS integration.

Hidden expenses for support, updates, and additional services can significantly inflate the total price, sometimes doubling or tripling the initial estimate. Additionally, some providers’ terms and conditions may include clauses that lock hoteliers into complex agreements, making it difficult and expensive to cancel or switch systems.

Ian Lumsden, Managing Director of Ankerdata Hospitality Systems, notes: “We’ve moved to a flat subscription fee model that includes all key functionalities, covering CRM, revenue management, POS interfaces, and distribution systems, without the hidden costs.”

Lumsden encourages hoteliers to conduct thorough research before choosing a system. His advice includes:

1. Check pricing structures: Identify costs for upgrades and add-ons in advance.

2. Read terms and conditions: Carefully review cancellation policies, upgrade costs, and fees.

3. Compare options: Evaluate various PMS solutions to ensure they fit your operational needs.

4. Plan long-term: Anticipate future needs to avoid pressure for unnecessary upgrades.

5. Seek transparent pricing: Look for flat-rate models to avoid unexpected fees.

6. Ask for recommendations: Consult with fellow hoteliers on their experiences.

Lumsden also stresses the importance of local support. “Our clients value our after-sales service and support, especially when dealing with time zones and language barriers.”