Subscription-Based Services Help Hoteliers Stay Ahead
By Amy King
When you think of subscription services, you might immediately think of platforms like Netflix and Spotify, or even news subscriptions, retail subscriptions, or gym memberships. With these models, customers pay a fee at regular intervals in exchange for a product or service. More recently, subscription models have become increasingly popular in business sectors such as payroll management, human resources, and software.
In today’s hospitality market, hotel owners and operators are navigating a perfect storm of challenges from rising operational costs to persistent labor shortages and increased guest expectations. Subscription-based services have emerged as a solution to streamline hotel operations, enhance flexibility, improve performance, and drive profitability. Hoteliers are increasingly turning to subscription-based platforms and tools to reduce overhead, modernize systems, and maintain service quality despite staffing and economic pressures.
Paving the Way to a Subscription-Based Economy
Prior to the 1990s, hoteliers relied on manual processes and on-site software systems that were installed with large, upfront costs and maintained internally by hotel staff. By the 1990s and early 2000s, digital adoption of these systems began taking place. Early versions of property management systems (PMS) became available but were still locally hosted. Some vendors began offering maintenance or support contracts with annual licensing fees, which became a predecessor to subscription service models.
The rise of cloud technology in the early 2000s introduced software-as-a-service (SaaS). Hoteliers could subscribe monthly or annually to a PMS, channel manager system, customer relationship management software, and revenue management system. This proved critical to small and mid-sized hotels that could now access technology that was previously only affordable to big brands.
Widespread SaaS adoption over the last 15 years has been the catalyst for subscription service use across nearly all hotel functions. From housekeeping management, staff communication apps, smart locks, access control, and guest messaging platforms, subscription services are the new way to do business. Hoteliers can bundle their SaaS systems and use mobile technology to manage them remotely. Monthly and annual subscriptions are no longer an exception – they’re expected.
The COVID-19 pandemic only accelerated use of digital and remote technology. Hotels quickly adopted contactless check-in, mobile keys, and digital guest engagement platforms through SaaS. The pay-as-you-go model of SaaS also became attractive to hoteliers during uncertain times. Its tiered pricing and usage-based billing structure made for easy payment and predictable budgeting. As a result, subscription service models became crucial for survival as staffing and occupancy were significantly reduced.
Modern technology is no longer a perk but an expectation for guests and staff. Any sort of lag in digital products or services can immediately diminish a first impression and deter potential guests and employees. Today, hoteliers subscribe to an ever-growing list of subscription services as the shift toward automation and artificial intelligence grows.
The Choice is Yours
Hotel owners and operators have a vast array of subscription services to choose from when it comes to managing their operations. Many of these services can be offered individually or bundled together to save. The four main types of subscription services geared toward hotels are property management systems, channel managers, revenue management systems, and customer relationship management systems.
A PMS is integral to the daily operations of a hotel. These systems handle tasks like reservation management, guest check-in and check-out, room assignments, and billing. They streamline operations, improve guest experiences, optimize revenue, and enhance communication between staff and guests.
Channel manager services help hoteliers manage their room availability and rates through online travel agencies (OTAs) and other distribution channels simultaneously. This service prevents overbookings, maximizes occupancy, and streamlines the booking process across different platforms. Along with channel managers, booking engines are another subscription service that allows guests to book directly through the hotel’s website, reducing reliance on OTAs.
A revenue management system, or RMS, uses data analysis and algorithms to generate pricing strategies. This process maximizes revenue and occupancy based on factors like demand, competition, and historical trends. When optimal pricing occurs, revenue is enhanced, and inventory management improves.
Customer relationship management, or CRM, is a type of software system that helps hotels manage guest data, personalize communication, automate marketing campaigns, and monitor guest feedback. CRM software enhances the guest experience and enables data-driven marketing. In addition to the subscription services designed for hotels, there are subscription models for nearly every facet of a hotel’s operations. Other subscription models growing in popularity among hoteliers include payment processors that securely process credit card and payment transactions; financial and accounting software for reporting and analysis; energy management systems that use smart thermostats and sensors to maximize energy efficiency and reduce usage; and content providers that give access to on-demand digital entertainment, such as DISH and HBO Max, both AAHOA Club Blue Industry Partners.
As one of the earliest premium channels available in hotel rooms, HBO has been a fixture of the hotel experience for generations of travelers. For many, HBO represents both prestige and familiarity, offering a sense of novelty and luxury. Guests associate the amenity with the comfort of their stay.
“Part of staying in a hotel is that the experience is meant to be more elevated than your home,” said Lorraine Ou, director of partner management at Warner Bros. Discovery. “It’s the excitement of a new shampoo brand, plush robe, and HBO.”
HBO offers hoteliers the additional option to upgrade their original HBO linear service to HBO Max, a subscription-based streaming service, allowing them to choose the product best suited for their properties. There is no additional cost for hoteliers to switch to HBO Max unless their TV systems need updating, which is typically required when hotels upgrade to their brand standard.
“When people travel, they are starting to expect and use streaming services in their hotels,” said Ou. “They want instant access to on-demand, high-quality entertainment. Hotels that offer streaming services like HBO Max have a competitive edge.”
With demand for streaming on the rise, HBO Max stands apart because guests do not need to use their personal accounts for the service.
“Our subscription model is billed to the property, so that the hotel can offer it free to guests,” said Ou. “Guests can access the app right away and watch the full content offering, from the iconic Game of Thrones to the highly popular The White Lotus, without any logins, passwords, or QR codes. It is extremely easy to operate.”
The Upside of Subscription Models
Subscription services reflect a broader trend of moving away from static, capital-heavy infrastructure toward flexible, scalable, cloud-based solutions. These models contribute directly to a hotel’s bottom line with fewer costly errors and delays, better guest experiences, and real-time analytics to guide decision making. The recent shift to subscription services is on track to dominate the hotel stack – hoteliers can effortlessly remain competitive and profitable in a rapidly evolving market.
While updating systems can be a daunting and expensive task amidst rapidly evolving technology, subscription service models are designed to make the process smooth and nearly instant. Since most subscription services are cloud based and not on site, they allow hoteliers to avoid costly upfront investments in hardware and licenses. Instead, recurring fees are lower and more predictable, and there are no bulky systems to install and maintain.
A major perk to using cloud-based platforms is that they are automatically updated and maintained, giving hotel owners freedom to focus on other priorities. Through automatic updates and maintenance, providers ensure that access to the latest features and security enhancements remains uninterrupted. Security measures and automatic backups provide reliable protection and safety of user data.
Along with automaticity, cloud-based systems also provide accessibility from anywhere with an internet connection. This allows hotel owners to seamlessly manage their operations at any point remotely. SaaS vendors also offer modular platforms, giving hoteliers more control of the features they want. As seasons and occupancy levels fluctuate throughout the year, subscription services can be scaled up or down without long-term commitments, so hoteliers can use that capital on other strategic investments.
With subscription services, hoteliers can optimize limited human resources without extending their budgets. By automating routine processes, subscription models maintain service levels with leaner teams and still improve accuracy, which is key when every minute and margin counts. SaaS programs automate routine tasks like guest messaging and housekeeping assignments so staff can focus on higher-value tasks.
There are even workforce management subscriptions that can schedule shifts, track hours, and delegate labor tasks. The automation of cloud platforms allows for remote check-ins, digital keys, and smart room assignments that minimize manual errors and save time for both owners and guests. Automated check-ins reduce front desk queues, and housekeeping and maintenance systems assign tasks dynamically and track progress in real time. The interconnectivity between platforms streamlines workflow between departments.
INFINITI HR, a human resources company and Silver Industry Partner, uses a subscription service model, providing hotels of all sizes with staffing solutions, regulatory compliance support, benefits packages, recruitment strategies, training programs, and labor cost control solutions.
INFINITI HR charges hoteliers a grandfathered administration fee that never changes, allowing owners and clients to project for the year what the cost will be each month. The service gives hoteliers access to benefits, HR, recruiting, and insurance for a flat, monthly fee. By bundling these services, hoteliers can save $30,000 to $40,000 annually on labor costs.
“We give hotel owners a way to pick and choose the services they want to pay into,” said Amber Luc, business development manager for INFINITI HR. “They can pay as they go rather than spend the money all up front if they aren’t completely sure. Hotel owners get the power back to decide how they want to run their businesses. When they save money on the bottom line, it can be reinvested back into their businesses so they can focus on revenue generating positions instead of cutting costs.”
As the hospitality industry continues to evolve, the subscription services model offers a smart, sustainable path forward. By reducing cost risk, increasing operational flexibility, and adapting to workforce constraints, subscription services are reshaping how hotels operate and compete. For forward-thinking hoteliers, embracing these models isn’t just a practical choice – it’s a strategic necessity.
Image: Cagkan/stock.adobe.com
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