Cost To Build A Hotel Booking Website In 2023

Imagine a time when booking accommodations meant flipping through newspapers or dialing phone numbers, hoping for a vacancy. It seems like a distant memory, doesn’t it? In today’s fast-paced world, convenience is the name of the game, and online hotel booking systems have taken center stage.

A whopping 69% of travelers prioritize convenience above all else when searching for accommodations. It’s no wonder that a staggering 88% of adults in the USA now prefer to book their hotels online. The online hotel industry has experienced a meteoric rise, soaring to an astounding $570 billion in 2019.

Of course, the hotel industry faced unprecedented challenges in 2020. But here’s the exciting part: it’s bouncing back stronger than ever. Hotel booking websites are now witnessing a remarkable resurgence pushing many hoteliers to expand activities to online spaces. If you’re one among them, this article will be of great interest to you. 

We will delve into the costs involved in hotel booking website development underlining the characteristics that OTAs and specialized systems must have. Not only this but we’ll go through the types of booking apps, revenue methods, costs, and the hotel booking business in more detail. 

Let’s start now!

Statistics concerning to hotel booking market

Based on 2021 revenue data, IBISWorld predicted that the US online hotel booking market was valued at about $28.6 billion and would expand by 34% in 2022.

In a survey released in May 2022, Statistica estimated the worldwide internet travel business to be worth $433.2 billion. According to the data, 66% of the sales in the travel and tourism sector were made online.

Know the online hotel booking through facts and figures

• There were 148 million online reservations for travel in 2018, with 82% taking place without any human involvement. By the end of this year, 700 million hotel reservations are expected to be made online.
• In comparison to mobile devices, which have a conversion rate of 0.7%, desktop computers account for the majority of online bookings at 2.7%. 
• While some online travel firms provide a booking option, most reservations are still made through the hotel’s own website, which accounts for around 2/3 of all reservations. 

Also, read about the latest technology trends in web development you need to look at in 2023.

Key features of the hotel reservation app

1. Result filter

When a user starts looking for accommodation, the app focuses on a specific set of standards, including the city or location they are visiting, the dates they will be arriving and departing, any additional guests they are bringing, whether they are bringing a pet, and finally the number of rooms they need to stay.

2. A complete view of the Accommodation

You may build a strong relationship with the consumers by giving them a full picture of the accommodation since this is what they want. The app should aim to include an overview, room status, gallery, maps, social networking buttons, suggested pool views, and other views. 

3. User account

The customer account keeps track of user information including a wish list, booking history, preferred currency, and language. Users get discounts and specialized offers based on the information gathered through their profiles.

4. Booking & cancellation

A safe and secure payment process, such as Debit/Credit, Stripe, or Braintree, is automatically redirected to the user after he/she has made a decision regarding the hotel they will stay in. 

In the majority of cases, consumers who had to cancel their reservation would receive a full refund from hotel booking services within the first 24 hours. However, most cancellations are made just a day or two before the date of the users’ arrival. On the other hand, it raises significant concerns for the hotel owners.  

5. Hotel account

Using the hotel account, you may access all the necessary data linked to hotels, including informational rates, discounts, and the best offers for available rooms.

6. Push notification

Users of your app should receive notifications and alerts to keep them informed of the latest discounts, adjustments to hotel rates, upcoming reservations, and much more. By doing this, you can stay connected with them while enticing them to use your web app even more. 

7. Multiple language support

Of course, individuals speak several languages all across the world. As a result, if you want to serve international customers who want to use your app to make bookings in their own language, you must have a multilingual hotel booking app. 

Smart features of the hotel booking app

• Estimated cost forecast

This smart feature allows users to calculate an estimate of the total expenses, including taxes, additional fees, room charges, and other expenditures during their visit. Not only this, but it also provides users with transparency in pricing and helps them in making informed decisions.

• On-the-go travel guide

This element on your app helps tourists to navigate their way around unknown locations by offering them an interactive map, landmarks, and other necessary information about the destination. It also suggests nearby restaurants, tourist attractions, and events happening in the area.

• Currency and language converter

A handy feature that converts foreign currencies and languages into the user’s preferred currency and language. This helps travelers to understand pricing and communicate with locals with ease. 

• CRM integration

With the help of this function, hotels may integrate their customer Relationship Management (CRM) platform into the app, managing client data and tailoring services to each individual depending on their preferences and prior behavior. 

• Marketing tools

This feature renders hotels with marketing options including email campaigns, social network integration, and push alerts to help them advertise their products and services to potential clients.

• Analytics dashboard

In order to monitor the effectiveness of the app, such as the quality of downloads, income, reservations made, etc., the analytics dashboard smartly assists owners.  It provides information that can assist in improving users’ experience and profit margins.

• Loyalty programs

A feature that offers perks like discounts, special offers, and other benefits to repeat consumers. It aids hotel chains in retaining guests and provides incentives for doing so.

Benefits of Building a Hotel Booking System

1. Centralization of all management operations

You are aware of the difficulties that occasionally arise while trying to stay on top of all business processes. The hotel front desk, housekeeping, room readiness, guest service, and other areas are crucial. All of the information may be incorporated onto a single platform, enabling real-time observation of everything taking place in your hotel.

2. Automated process

A booking system eliminates the need for you to manually complete numerous common procedures. Reservations, check-ins, and check-outs may now all be automated through Travel CRM. You may also set up instant messaging with your guests in addition to everything else. The number of rooms that are available near you will be automatically adjusted by the booking system. Additionally, such software may estimate living expenses, additional room service, and other costs.  

3. Cost saving

You must be having a doubt in your mind about how investing in hotel booking software would enable you to save money. Consider the costs of creating a hotel reservation app development as an investment in a device that will give you access to millions of prospective clients. With a platform that improves your customers’ pleasure with the services they receive, your firm will make more money. These clients will want to return and refer their friends.

Types of Hotel Booking Solutions

1. An app for travel agencies (OTAs)

An online travel agency acts as a marketplace where customers may browse and compare a variety of accommodations as well as other travel-related goods including cruises, airlines, excursions, and vehicle rentals.

Multiple platforms provide property owners with special resources, such as images, videos, and even 3D walkthroughs, to highlight their offerings. They may also compile reviews and reply to them.

Remember that a booking website or online travel agency keeps a direct relationship with property owners. It could use a variety of income models, like:

Commission-based – The customer pays the hotel, which then gives the OTA a commission.

Merchant model – Customers pay the online travel agency, which then pays the hotel.

However, property owners advertise their addresses for free. After successful reservations and checkouts, the platform earns its income share.

Property owners may use paid advertising on various markets to increase their visibility in search results.

The following concrete advantages are the reasons why hotels desire to be included in OTAs:

• OTAs have a wider reach since they invest heavily in marketing initiatives, including print and digital advertising;
• Increased traffic on the main website since most buyers seek hotels on OTAs first (the “billboard effect”), rather than starting their search there;
• Prominent access to high-value clientele since OTAs have databases of visitors who display particular traits, such as those who prefer to stay longer, and can make focused suggestions to assist the hotel achieve a particular hospitality business goal;
• Accessibility to high-quality data and insights, such as market information, competition comparisons, and recurring performance (number of visitors, revenue, etc.).

Examples: Expedia, Bookings.com, & Agoda.

2. Hotel Aggregator/Meta-Search Engines

Booking websites and OTAs collaborate with metasearch engines. They basically combine hotel pricing from many networks, making it simpler for users to locate the best offer.

Users are sent to the booking website when they click on an offer on a metasearch engine, which may be in charge of processing their payment and reservation. As a result, cost-per-click is the main revenue strategy.

The property, for instance, a holiday rental, next an OTA, and finally the metasearch engine make up the outermost layer.

Listings from independent hotels or hotel chains may also be found through hotel aggregators.

Examples: Google Hotel Ads, Trivago, and Kayak.

3. Property management system

A property management howard county solution manages a variety of responsibilities, such as administrative ones (scheduled housekeeping), front desk or online booking reservation administration, and payment processing. In order to coordinate and maintain booking accuracy, contemporary PMS solutions interact with OTA channels.

Companies like Sirvoy and Hostway now provide PMS systems as SaaS solutions. Enterprise-level solutions may concentrate on certain markets; for instance, Hostway was created specifically for owners of holiday rentals.

If a property owners can’t find the features they need in an existing system, they can design their own PMS. Entrepreneurs might potentially find an untapped market and launch a program or software specifically for hotel management.

Therefore, here are some of the key characteristics to focus on while designing a hotel booking app for property management:

• CRM & lead management
• Payment processing
• Hotel reservation system
• Administrative tasks
• Channel management (integrations with OTAs).
• Marketing tools (coupon manager, website builder, etc.)

4. Reservation module on a hotel website

The reservation module is a website booking tool that may be opted for as an add-on to a Property Management System (PMS) or built independently and coupled with a pre-existing PMS.

Features offered by the module include:

• Inventory control and allocation for hotels
• Synchronizing all relevant information on hotel availability from several channels and avoiding duplicate bookings
• Emails are sent to confirm the reservation
• Making reservations for additional events
• Hotel channel manager for top OTA two-way API connections.

Business models for starting a hotel booking website

Merchant model

In this type of business tactic, the app owners and the hotel enter into a contract to buy a set number of hotel rooms at a reduced price because they are purchasing the rooms in bulk. Thereafter, these rooms are made available to app users with an average margin of 10–40%. Demand for travel is one of several variables that might affect the cost of rooms and hotels.  

Cost-per-click model

Metasearch engines primarily employ this business model, which involves OTAs and property owners paying for each hit produced by the platform. Two categories of cost-per-click models exist:

• Pay-per-click (PPC): Regardless of whether the visitor completes a successful booking, the OTA pays for each click. 
• Pay-per-stay: Only clicks that result in successful reservations are paid for by the OTA or the property.

Direct sales model

Concerning this concept, bed & breakfasts, resorts, or inns create booking software for usage by their intended market. As a result, they make money by selling products directly to clients. If the app boosts the number of online reservations, the development can be justified.

Advertising & paid subscriptions

Your hotel booking software has the potential to generate income thanks to the advertising model. Owners of the apps make money by sending users to the websites of the hotels. This model type is the least lucrative of all the business models we will cover, but it has the advantage of requiring less risk and capital. The best example of an app using an advertising strategy is Tripadvisor, which generates the majority of its revenue via cost-per-click fees.

The process to build a robust hotel booking website

Market research

This stage involves performing preliminary market research and discovering opportunities to appeal to clients more with your product:

• Describe your vision for the platform, the issues it will address, a special selling point, and possible income streams.
• Make an epics list based on the logic and functionality of your hotel booking software or website.
• Identify your target audience.
• Design a navigational plan for your product.

You will get an operational prototype of the booking site after doing these tasks, which you can then enhance.

Idea validation

This process calls for a large commitment of knowledge and time. To do this, you’ll require the aid of a development team:

• Carry out in-depth market research
• Conduct a target audience survey
• Create a comprehensive business plan.
• Identify the fundamental and supporting characteristics of a hotel reservation system.
• Mock up the platform with these mockups.

You will have a trial version of the booking application or website at the conclusion of this phase, which you can show off to potential customers.

UX strategy

This stage requires intensive work on the user interface of your product. How will your group proceed?

• Make a visual representation of the data links and structure in an information chart.
• Create an excellent product prototype.
• Set deadlines for a precise development timetable.

The booking platform you have will then have a top-notch prototype that is more like the finished product.

Design & development

It is the stage at which the magic of development occurs. The so-called sprints are the various stages of a project’s development. The order of them is as follows:

• The process of certifying your platform’s appearance and feel is called a “design sprint.”
• It is the goal of the technical setup sprint to define functionality.
• In reality, the development sprint is product development.
  

You end up with a minimal viable product (MVP) as a result.

Testing & improvement

The completion of this phase signifies the official launch of your platform. Your group will carry out the following:

• Check out your product
• Fix the flaws.
• Make everything work perfectly
• Review user feedback

Your platform is now ready and accessible. It still needs upkeep, particularly if you want to add new features.

Are you still suspicious about whether to build a website for your business? This detailed guide has all the answers to why is website development important and profitable.

Cost estimation for hotel booking website MVP

Let’s now study the factors that have an impact on the cost estimation for hotel booking websites: 

1. Number and complexity of features

To implement the features in code, such as creating the booking engine or client profile, programmers will require time.

Since the website development cost is essentially calculated by multiplying the total time spent by the hourly rate, complex applications with numerous features will require more time & money.

The time spent on various features is shown in the following table as an approximation:

 

The following stats are just rough estimates. Since every app is different, we advise you to hire the best website development company to discuss your requirements in order to receive precise rates.

For instance, a user profile or authorization features may not be necessary for an MVP for a metasearch engine.

2. Complexity of design

The number of screens needed for the application might affect the price of the app design, among other things. The number of views extends the design process.

As opposed to utilizing pre-built components, employing bespoke parts requires more effort to implement.

The amount of time invested at different phases of the design process could affect the ultimate expenses. For instance, if a lot of time is spent on high-fidelity prototypes rather than first proving the design principle using a low-fidelity design, the expenses can rise.

According to the complexity of the app’s design, the following table shows an approximation of design costs:

3. Target platforms

Creating native apps specifically for each platform, such as the web, Android, and iOS, is more expensive. By creating a single code base that can be utilized across several platforms with very small adjustments, the team may lower the cost of cross-platform development.

4. Team location and hourly rates

In certain nations, it is less expensive to hire web developers and companies as compared to others. That’s the reason behind their decreased living costs, which result in a lower hourly rate. Quoting a factual example, hiring a development company in Ukraine can be less expensive than employing a single intermediate-level freelancer working in the US.

Check out this article to know more about the tips, options, and more information regarding “how to hire web developers”.

5. Required team

The price to create a website for online hotel reservations may depend on the structure of the custom software development team.

If the website owner, for instance, has previously done market research and created a formal business strategy, the team might not need the assistance of a business analyst.

Additionally, the team composition could be less expensive if they are prepared to take on the duties of a project manager. The time that each team member spends working on the project is the primary factor used to calculate the final cost.

6. Tech-stack and integrated services

The required tech stack and the number of connected services may have an impact on the development cost. For a custom online booking application in particular, it takes more time than usual to integrate multiple two-way communication APIs.

Some integrations may call for paid services like hosting, storage, or CDN. It is recommended to integrate one service while creating the MVP and later add other features as per the website’s progress or needs.

How can DianApps help you with your hotel booking web app?

DianApps is a globally acclaimed Website Development company. We have years of expertise in developing and promoting online hotel booking platforms. With the support of our team of experienced website developers, you can increase online reservations for your hotel and boost your revenue with a specially designed booking website. Check out various packages of website development at DianApps right away!

Our team will work with you to create a website that is simple for visitors to use and aesthetically attractive so that they can learn more about your property and make a reservation. Additionally, to make sure your website is seen by as many people as possible, we will advertise it through a variety of internet channels.

Final words

Building a hotel booking website for a business involves a lot of work, but the end results are worthwhile. According to the facts in the blog, it would not be incorrect to assume that such a website can provide a wide range of chances to hotels and business owners in the hospitality and tourism sectors.

It is essential to work with developers that have years of experience and competence in the field if you intend to design a hotel booking web app for your company. 

You can rely on DianApps for a streamlined process if you want to design a hotel reservation website at affordable rates and with a professional team.

Connect with our development team to get a free estimate for your idea of a hotel booking website.