Hostel management systems are software solutions used within hostels to carry out key managerial tasks and oversee operations. In this article, you can learn about these systems, how they work, why they are so useful, their main features, and how much they cost.

Table of Contents:

Why Do Hostels Need Hostel Management Systems?

Hostel management systems allow those involved in managing hostels – as well as their employees – to centralize important information and data. This, in turn, allows individuals to carry out a wide range of common tasks from a single place, which can be especially valuable for improving efficiency.

As with other businesses within the hospitality industry, hostels are busy workplaces where many elements must be overseen simultaneously. This could include everything from managing inventory and reservations to processing payments and selling additional products or services to customers.

The best hostel management systems not only allow hostel owners and staff members to manage these various aspects of the business from one location, they also offer the possibility for employees to access the system remotely, and information that is updated within the system will automatically update for everyone using it.

Many parts of the travel industry are seasonal, which can sometimes mean handling sudden spikes in demand with limited staff. Hostel management systems can make work within a hostel easier and more efficient, while the automation options available can also help free up staff to focus on other parts of their job.

What Are the Main Functions of Hostel Management Systems?

Different hostel management systems will offer a different range of functions. Still, there are several core features that you might expect to find in the majority of software packages of this kind, such as the ability to keep track of reservations and current availability or the potential to manage different distribution channels.

Most hostel management systems also see payment processing and the ability to track critical business data. At the same time, some top-of-the-range offerings may include features you might expect to find in a point of sale systems, such as payment processing and the centralization of performance metrics and business data.

Below, you can learn more about some of the most important features:

Reservations & Inventory Management

Inventory management is an important part of managing any accommodation, but it can be especially vital within hostels, because these properties may sell individual beds and private dorms. Doing so requires those in charge to carefully oversee how reservations are handled so revenue can be maximized.

Beyond this, reservations need to be managed so that rates can be adjusted based on current levels of demand, double bookings are avoided, and all distribution channels show the correct availability information. This can help to avoid the kind of costly errors that impact a hostel’s reputation.

Hostel management systems generally include options to manage reservations, see data in the books, and adjust prices. Additionally, there could also be options to manage other inventory, such as equipment, or food and beverages, to prevent situations where important products or items are out of stock.

Channel Management

Many hostel management systems include the primary functions associated with a hostel or hotel channel manager. This means users can typically oversee listings across various distribution channels, including online travel agencies, hotel meta-search engines, social media platforms, and more.

The channel manager functionality within your hostel management software will allow you to automate some of the key tasks associated with managing these distribution channels, such as adjusting prices based on availability.

High-quality solutions will provide integration with hundreds of distribution channels and the ability to track performance. Additionally, using hostel management systems, it should be possible to update information like availability and pricing and apply these changes across the board.

Video: What is a Channel Manager? 

 

Operations Management

Another major feature seen within most hostel management systems is operations management, which allows hostels and similar forms of accommodation to oversee many of the fundamental operations that need to occur daily for the business to function successfully.

Using this particular feature, it is usually possible to add specific tasks that need to be completed to a work schedule and allocate those tasks to different departments or different individual staff members. This can be especially useful for managing and coordinating the various housekeeping tasks.

In situations with multiple hostels to manage, the different properties can be divided within the platform so that all operations are handled efficiently. Performance metrics may also be available to view here, which can help alert employees to areas where the hostel may fail to hit targets.

What Are Some of the Additional Functions of Hostel Management Systems?

When comparing and contrasting different hostel management systems on the market, there are some additional features that you may wish to give consideration to, such as the following:

Direct Booking System

Like other parts of the hospitality industry, hostels tend to utilize multiple distribution channels to maximize reach. However, direct bookings will be the most profitable channel because these bookings are not subject to the commission fees commonly associated with online travel agency bookings.

With this in mind, some of the best hostel management systems include a direct booking platform, which can be used to attract customers over the Internet. The main booking page can be placed on the hostel website, promoted on social media, and linked to email marketing and other marketing content.

Booking systems can afford hostels excellent opportunities to upsell or cross-sell at the most opportune moments, and customer support tools can also be provided. Additionally, attracting direct bookings can help hostels to have greater control over customer data, making re-marketing efforts significantly easier.

POS System

A point-of-sale system, or POS system, is used to process payments. This is essential for any hostel that sells additional products or services, whether food, drinks, or access to additional facilities. A hostel management system with POS features will allow hostels to process and track customer payments.

A modern POS system should always be connected to a property management system because this creates greater consistency with data and ensures information is always up-to-date. Even when the hostel management system does not have a built-in POS system, it should be able to integrate with an external application.

CRM & Marketing Manager

The most comprehensive hostel management systems may offer customer relationship management tools. This could include customer profiles, allowing communication between individuals and the hostel’s customer service staff to be captured, stored, and referred back to. Profiles could also include the personal preferences of past guests.

Meanwhile, this CRM functionality may integrate with wider marketing management tools too. In practice, this could allow a hostel to send tailored marketing messages to customers so that they are presented with offers that are most likely to appeal to them on the platforms they are most likely to be receptive to.

How Much Do Hostel Management Systems Cost?

The price of hostel management systems can vary significantly, especially in an age where the Software as a Service (SaaS) model is becoming more common. This means that, in some cases, the software is not acquired outright but is paid for through a continuous monthly or yearly subscription fee.

Top-end software paid for on a subscription basis will likely cost $20 to $70 per month in the region. For on-premises deployment, where software is purchased outright, solutions will likely cost upwards of $50 and could be well over $100. Free options exist and may be good enough for those with very basic requirements, but these options tend to have limited features, and the quality of support on offer is likely to be lower too.

POS Systems and Hostel Management Software

Hostel management systems often share features or offer integration with POS systems primarily used to process customer payments. However, the overall importance and value of POS systems within the hospitality industry extend further, especially as they can be used to update and centralize crucial company data.

You can explore the topic of POS systems and how they are valuable to hostels, hotels, and similar properties by reading “POS Systems: Overview and Importance in the Hospitality Industry”.

Hostel Management Systems and the Value of CRM

Another key area where hostel management systems can contribute to the day-to-day success of a business is customer relationship management. This is essential for managing customer communications, understanding your target audience’s needs and wants, and delivering the personalized experience people want.

This topic and related issues are explored further, with expert insight and opinions from professionals working in the industry, in the article “Is a CRM Essential For Delivering Personalised Hotel Experiences?”.

Hostel Management Systems and Other Essential Software

Although hostel management systems serve multiple functions, they are unlikely to be the only software solution utilized by a successful property of this kind. Some other applications or packages that may be needed include a distribution channel manager, a revenue management system, and reputation management software.

A lot more information on the essential software for managing properties and keeping customers happy can be found in the article entitled “5 Hotel Management Software Solutions Every Hotel Needs”.

The Benefits of Hotel and Hostel Management Software

Regarding the use of hostel management software and the equivalent hotel management software solutions, there are many notable benefits, such as reducing labor costs, increasing revenue earning potential, streamlining common processes, and delivering a superior guest experience.

You can read about this topic and learn about the benefits of using hotel or hostel management software in the “Hotel Management Software: What Are the Benefits for Hotels?” article.

Hostel management systems function as multi-purpose software solutions for those operating hostels or similar forms of guest accommodation. They typically include various features, such as operations management tools, POS options, CRM functionality, and the ability to manage multiple distribution channels.

More Tips to Grow Your Business

Revfine.com is a knowledge platform for the hospitality & travel industry. Professionals use our insights, strategies and actionable tips to get inspired, optimise revenue, innovate processes and improve customer experience. You can find all hotel & hospitality tips in the categories Revenue Management, Marketing & Distribution, Hotel Operations, Staffing & Career, Technology and Software.

Submit an Article

This article is written by:

Martijn Barten

Hi, I am Martijn Barten, founder of Revfine.com. With 20 years of experience in the hospitality industry, I specialize in optimizing revenue by combining revenue management with marketing strategies. I have successfully developed, implemented, and managed revenue management and marketing strategies for individual properties and multi-property portfolios.