I love sales. Especially at T.J. Maxx.
My aunt actually calls it T.J. Saxx, like Saks Fifth Avenue, for all their deals on designer duds. On every tag isn't just the in-store price, but also the original retail price so you can see the deal you’re getting. Finding out how much I saved at the register always softens the blow of my total.
It’s a smart sales tactic. And I don’t mind that it works.
So I was pretty shocked when I heard that T.J. Maxx actually estimates the original retail price themselves. Some of their ‘sales’ might even be a higher price than at other retailers.
Tricky tricky.
But I no longer trust T.J. Maxx’s prices. Because how do I know now if I’m really getting a deal or if they’re taking advantage of my addiction to toe socks and moto boots?
Similarly, when you’re searching for hotel management software, how do you know if you're getting a good deal? Not to mention, how much does it cost in the first place?
Sounds like something that would take a lot of time and effort to figure out. Shouldn't more of that be spent on your guests instead?
This is where I come in.
Below, I’ve compiled a list of the three most common pricing models for hotel management software products, including their price range and a list of solutions that use each model so you can budget and compare your preferred solutions accordingly.
Let’s get started.
Pay-per-room
Pay-per-room is by far the most popular pricing model for hotel management software, though this model may also overlap with the tiered model (below). In this type of overlap, different tiers are available, with each one increasing in both cost and number of features, but your hotel’s number of rooms will also affect the overall cost. A larger number of rooms will result in a higher price per tier. However, discount packages may be available for larger hotels. Pricing that is based solely on your hotel’s number of rooms may also include a one-time setup fee.
Cost: Can be as little as $4/room/month with an accompanying $500 initial setup fee. Generally, the cost rises when the number of rooms rises. When overlapped with a tiered structure, prices also start around $4/room/month and can top $425/room/month if your hotel has over 250 rooms and if you choose a higher edition. Enterprise hotels may have to speak with a sales representative for a customized price.
Software with this model:
Tiered model
Tiered models can overlap with pay-per-room, though most tier-based models include a room range rather than a specific number that affects pricing. Tiered models are often subscription-based and depend largely on the edition level of your choosing. Different levels offer different features with the more expensive usually resulting in more features and other functionality (like additional storage).
Cost: Cloud-based solutions are a cheaper route, with monthly subscriptions starting at $50 for the first tier, though if you sign up for setup and training, you could also pay a one-time fee around $1,200. A more traditional, subscription route can start at $119/month and max out around $300/month, though possibly more depending on how many extra rooms you have outside of their prescribed range.
Software with this model:
One-time license
The initial investment is high for this model, but benefits can include no mandatory license fees, contracts, or term commitments. In this model you typically pay a single license fee to own and use the software. This is usually coupled with an installed or on-premise software.
Cost: Because this is a one-time license, initial costs will be higher than a subscription-based service. Depending on edition and room number, cost can begin around $995 and rise to more than $10,000. A higher edition and higher room number will result in a higher cost. Be sure to read the fine print and details as there may be restrictions or extra fees when factoring in your number of workstations or users.
Software with this model:
Other Pricing Models
Know of any other popular hotel software pricing models I missed? Let me know in the comments below.
Header by Rachel Wille