What Is a Hotel Reservation System? Types, Benefits, and Features

Updated: 17 Apr 2024

In today's digital landscape, having a comprehensive hotel reservation system is essential for accommodation providers to stay competitive and cater to the ever-increasing demands of tech-savvy travelers. Online sales are projected to account for 69 percent of the global travel and tourism market’s revenue in 2023. 

Whether you're a seasoned hotelier or an aspiring entrepreneur in the hospitality industry, understanding the power of an online reservation system is crucial for optimizing your bookings, streamlining operations, and maximizing revenue. So, continue reading to learn more about hotel reservation software and discover one of the best hotel booking systems.

What Is a Reservation System? 

A hotel reservation system is a software solution that enables business owners to automate the process of accepting and managing bookings. A good hotel booking system serves as a centralized platform that allows guests to make reservations for rooms, amenities, and services. Meanwhile, an online reservation system also provides hoteliers with a streamlined way to handle reservations, availability, pricing, and guest information.

The Different Types of Hotel Reservation Software 

There are several types of hotel reservation systems that can suit different businesses best. Options span from motel reservation systems to central reservation systems, each with its own pros and cons depending on the characteristics and needs of your business. 

The most common type of system today is an online reservation system. These cloud-based software solutions typically offer the greatest functionality, allowing guests to book online and reservations, communication, and payments to be automated or managed remotely. Web-based hotel reservation software allows your reservation system to grow and adapt according to your business’s needs. 

10 Benefits of Using an Online Reservation System for Your Hotel 

A good hotel reservation system is user-friendly and saves you time. 

Using an online reservation system for your hotel offers a multitude of benefits that can enhance your operations and improve the guest experience. Hotel reservation systems help business owners reduce errors, save money, and capture more bookings. Learn more about 10 key advantages of using a hotel booking system below. 

Update Availability in Real Time 

One of the biggest perks of using an online reservation system is the ability to display availability in real time. This ensures that the information potential guests see is always accurate and up to date. With this, you eliminate the risk of double bookings and reduce the time and communication required to make a reservation. Plus, in a study conducted by Yieldify, over 61 percent of consumers stated that they value having real-time availability. 

Get Bookings Around the Clock 

With an online reservation system, guests can book rooms at any time, even outside of regular business hours. This 24/7 accessibility increases booking opportunities and caters to the needs of guests in different time zones. You can accept bookings even when you are on holiday or out of the office. 

Automated Payment Processing 

When using a hotel booking system, you will also benefit from automated payment processing, allowing guests to make secure payments online. Online reservation systems streamline the booking process, eliminate the manual processing of payments, and improve financial efficiency. In addition, since guests can make payments online, you can offer a quick and hassle-free check-in process. 

Upsell and Increase Revenue 

A hotel reservation system provides opportunities for upselling additional services or amenities during the booking process. This can lead to higher revenue as research shows that guests who book in advance spend 47 percent more on accommodation. In addition, by offering guests personalized add-ons to enhance their stay, you can increase the average booking value. 

Offer a Faster Booking Process 

With an online reservation system, the booking process becomes faster and more efficient. Guests can easily search for availability, select their desired room types, and complete the reservation quickly, resulting in a seamless booking experience. 

This is extremely crucial in today’s optimized societies. In a study by Yieldify, 90 percent of respondents said that the convenience of the booking process was important when booking travel. In fact, it was even more important than cost for 37 percent of consumers. So, with less time required and fewer hurdles involved in making a reservation, you will receive more bookings.

Reduce Time Spent on Administration

By automating tasks such as availability management, reservation confirmations, payment processing, and guest communication, a hotel booking system significantly reduces the time spent on administrative tasks. This frees up staff to focus on other essential hotel operations, such as creating a great guest experience.

Minimize Human Errors

When you are managing reservations manually, errors are nearly inevitable, which can lead to costly mistakes and unhappy guests. A hotel reservation system minimizes such human errors by automating processes and ensuring accurate data entry, resulting in a smoother and error-free booking experience.

Gain Marketing Insights

Hotel reservation software can provide valuable marketing insights. You can track booking patterns, guest preferences, and demographic information, enabling you to tailor your marketing strategies and improve customer targeting. Plus, you can easily collect and store emails, phone numbers, and more. 

Stay Competitive 

Travel trends are continuing to show that customers prefer to book online. Between laptops and smart devices, it is easier than ever for consumers to shop around and book online. With convenience being important to 90 percent of consumers, you don’t want to get left behind. In today's digital age, an online reservation system is essential for staying competitive.

Automatically Adjust Your Rates Seasonally 

A hotel booking system enables you to set seasonal rates and automate rate adjustments. This ensures that your pricing remains competitive and reflects the demand and market conditions throughout the year, without you having to worry about making adjustments manually. 

Key Features of a Hotel Reservation System 

There are many different features you’ll want in an online reservation system. From great customer support to insightful analytics, hotel reservation software can offer countless benefits. Here are five of the top features to look for in a hotel booking system. 

• Real-time updates. Of course, your reservation system needs to offer real-time updates so that potential guests know what they can book and staff can keep track of operations. However, this is typically only found in web-based systems. 

• Payment processing. When guests are already booking online, allowing them to pay online adds another level of convenience. Plus, it helps ensure that guests aren’t bothered with administrative tasks when they are checking in. 

• Flexibility. While a hotel reservation system can help provide structure to your business, you will also want to look for a system that can accommodate or adapt to the specific needs of your hotel. 

• A global outlook. With international travel on the rise, a booking system that lets you display your offerings in multiple languages and currencies is highly advantageous. This leads to a better guest experience for customers around the world. 

• Integration options. Running a successful hotel requires a lot more than just accepting bookings. Having a reservation system that integrates with other software, such as accounting and marketing tools, is essential. 

Bookinglayer: Revolutionizing the Booking Process 

Bookinglayer makes the booking process easier for both you and your guests.

With a mission to help you save time and optimize your operations, Bookinglayer is an all-in-one online reservation system designed for businesses that combine accommodation and activities. Whether you want to sell set packages or allow bookers to configure their own holidays, Bookinglayer gives you flexibility while also streamlining the booking process for guests. 

Using Bookinglayer’s Customer Portal, you can collect essential information from guests after they make a reservation, keeping the booking process quick and simple. Our online reservation system offers all of the most important booking software features, as well as Advanced Features that you can add to your plan as needed. 

Reasons to Use Bookinglayer as Your Hotel Reservation System

If you run a hotel, a Bookinglayer can save you time, money, and stress. With multiple pricing options, Bookinglayer offers booking solutions for businesses of all sizes. Here are a few of the top reasons you should use Bookinglayer to optimize your business. 

• Increase sales by offering packages. Selling packages online is a quick and easy way to boost your revenue. Whether you offer transport packages or honeymoon packages, letting guests book more than just a room will increase sales and lead to more satisfied guests. 

• Get personalized support. At Bookinglayer, we value our relationships and take a personalized approach with all of our clients. From onboarding to processing your first reservations to running your business five years down the line, we always make sure you get the support you need to succeed.  

• Customize your booking system. With highly customizable processes, forms, and features, Bookinglayer allows you to configure the hotel reservation system that works for you. 

Learn more about how Bookinglayer can take your business to the next level and make your life easier — request a demo call today. Our team will get to know your business and then walk you through all of the features of our hotel booking system that you’ll benefit from. With our onboarding support, you can launch your new booking system in as little as one week. 

Hotel Reservation System FAQ

What should be included in a hotel reservation system?

A hotel reservation system should include real-time availability updates, payment processing, and financial reporting. Hotel reservation systems should also allow you to automate pre-arrival guest communication, manage and adjust bookings, issue refunds, and more. 

How does a hotel reservation system work?

A hotel reservation system gives you a central place to manage bookings and guest data. If you have an online reservation system, you can also accept bookings online and access your backoffice from any location. 

How long to implement a new hotel reservation system?

It can take anywhere from a few days to several months to implement a new hotel reservation system, depending on the system you choose, the needs of your business, and the methods you currently use. For example, you can go from using Google Calendar to Bookinglayer in just one week. 

How much is an online reservation system?

Online reservation systems vary in price, as it depends on the software solution you choose and which features you need. Prices for complex systems usually start at a couple of hundred dollars a month. In addition, companies like Bookinglayer also offer commission-based pricing with monthly minimums.