The Ultimate Guide To Property Management Systems and Channel Managers for hostels

by | Feb 4, 2020 | Hostel Management

Property management systems for hostels solutions are here to improve your productivity, revenue and time management skills. Yet, can you believe that in the XXI century there are still hostels, managing their bookings with pen and paper? Or with Excel?

And if you are one of that hostels and you read this blog post, then there is hope for you. Because it means that you want to change that.

If you are on the lookout for the property management systems or channel managers for your hostel

You probably read this post because:

✔️ You are the newbie into hostel management. You want to get the hang of what the heck means PMS (and no it’s not a premenstrual syndrome in this case). Or what Channel Manager is, that everyone is talking about

✔️ You manage a hostel and are in the lookout of a brand new property management system. That will be a perfect match for your place

✔️ You already own a hostel with a PMS but think about changing for something fresher

Look no more. I have prepared this ultimate guide to Property Management Systems and Channel Managers for hostels just for you, my friend!

Before we start, here are some points that might describe why you still (!) didn’t invest in a PMS nor CM:
✔️ you didn’t feel you need it – excel sheets worked just fine
✔️ your budget didn’t allow it
✔️ you had no idea that something like that exists

But, if you are here, that means you are ready to level up in managing your property. It is my hope that I will help you by making things more clear for you!

Let’s take off with the basics:

What is a Channel Manager

In simple words, it’s a place that connects your hostel inventory with all the selling channels (OTA’s, Travel Agencies, social media, etc.). When someone books a bed in one of the OTAs, it will be automatically updated in other channels and in your inventory. And the other way around.

Graphic explaining how the Channel Manager works

It allows you to manage your availability and the prices from one place. Instead of changing this manually in each extranet one by one.

Usually, channel manager is connected to your Property Management System (also many PMSes comes with a built-in channel manager).

What is a Property Management System

It’s a software solution used in the hospitality industry to coordinate the operational functions of the front desk, sales, reporting and planning. In simple words, the Property Management System automates hostel operations.

Moreover, it can be integrated with the Channel Manager, Points of Sales (POS), central reservation systems and tools for the revenue management.

The first PMS appeared on the market in 1980. Since then many things have changed (as you can imagine) and so do the hotel technology expanded.

Tho the market offers many solutions, those that suites the hostel’s needs are not many.

Benefits of having CM


When your availability and inventory is updated automatically across all the channels, you save your time. Which you can devote to other tasks.

Maximizing of bookings and your revenues

By being connected with a variety of OTA and travel agents, you reach more customers and maximize your sales.

Effortlessly reaching a variety of markets 

Most of the CM offers different channels that reach markets which, otherwise might be harder for you to reach out.

Less chance for overbooking

Some of us get unpleasant chills only by hearing the word ‘overbooking’. Without a doubt using channel manager makes the possibility of being overbooked much lower…unless you allow it.

No need to be a tech guru

Channel Managers are a cloud-based solution which means they do not need any specific software to be installed. It all happens on one website. Where you usually have instructions on how to synchronize channels of your choice with your data.

Sounds great, right?

Benefits of Having a Property Management System in your hostel

✔️ Automatization of the hostel operations

✔️ Make easier to control the property (in general it makes life easier)

✔️ Strengthens productivity (you can focus on other tasks)

✔️ It gives you essential reports and analyzes, which can help improve your business.

Cloud-based vs system based

As I mentioned before many things have changed since the first Property Management System. Some PMSs require installation on the computers. Most of that type of solutions are seen in the hotels, chains of hotels of big hostels.

However, with each day, more popularity gains cloud-based solutions. Which mean that they don’t require installation and you can enter them from anywhere you want from computers, tablets and mobile.

And that makes the cloud-based PMSs more popular between hostel owners. The reason is straightforward: they can control their property easily even when they are not there.

The cloud-based solutions rely entirely on the Internet. 

Some of you might think of how reliable is such a system then. To begin with, the unique aspect of the cloud-based property management system is that despite the computer breakdown, virus, server crush, losing internet connection, you can quickly enter it through any other device. And all the data is there thanks to the backups.

Another point that often raises questions is the safety of the data in cloud-based PMS. 

As the hostels hold much valuable information like storing credit cards and personal details. Well, these types of PMSs are built on the best hosting providers that are out there with a dedicated team to the security systems.

Most cloud-based Property Management Systems are more accessible and friendlier to use than the traditional desktop PMS. 

That does not mean that they have less functionality or are less powerful. Actually, most of them offer much more than conventional PMS.

Tips for choosing the channel manager and property management that is right for your hostel

The number of CMs and PMSs on the market can cause you a headache when you are searching for the one for your property. Depending on what you are looking for, your hostel size, your budget, there are many solutions out there.

1. Your budget

Channel managers and property management systems prices vary a lot, depending on the number of functions and channels available. As a manager or owner, you need to ask yourself how much you can spend on it. The more expensive the channel manager, the more functionalities it has.

What you should take into account too is that many CMs and PMSs charge for its services differently. Usually, what is taken into account is the size of your hostel.

2. Compatibility of CM with your PMS (if you already have one)

If you already use a Property Management System (and if not, it’s worth to consider using it), the best practice is to have a channel manager which is compatible with your PMS. You can either ask your PMS provider for the recommendations or check its website, where usually this information is available.

In this way you will make sure that PMS and Channel Manager will be integrated so they will work together correctly, making it possible that all data and reservations are in your PMS.

3. Variety of channels in CM

While looking for the right channel manager, you should always check if, in the list of OTA’s and travel agencies, you will find the ones that you are interested in. If one of the reservation sources is your own hostel website, the channel manager should also give you the possibility to connect it.

4. Availability of support

The technical support is a crucial factor. What you should check is whether your CM or PMS provides 24-hour assistance, every day of the week or not. If it is quick in responses and if the support is free of charge or requires a fee (yes, that happens).

Many channel managers also offer manuals, which you can find on their websites.

5. User-friendly

Even if you are looking for the channel manager with advanced functions, check if it is clear and easy to use. This way, the time of work you spend on updating and using it will decrease.

6. Revenue techniques

If you practice revenue management, your channel management should have advanced options so you can push up your occupancy and sales. Check if it gives you the possibility to create different rate plans and if it offers reports and statistic graphs. Is it flexible in dynamic pricing? How friendly user it is when it comes to the pricing strategy?

You should also get to know if there is a possibility to manage promotions – based on the season, events, etc.

7. Tax settings

Is it easy to upload tax? Does it give the opportunity of creating different tax structures?

8. Updates

Great Property Management System nowadays not only updates but also listen to its customers and introduces de features that are highly requested and necessary.

9. Free Trial

If you have already one Channel Manager or PMS in mind, don’t hesitate and use the free trial period (most of CM/PMS providers have it in an offer). During this time you can test if it works well for you and for your property.

The Channel Manager examples

In the hospitality market, there are many CM providers, so it is simple to get lost. However, some are already well-known and used by many hostels so you can ask the fellow hostelers for a piece of advice and recommendations.

To make it easier I have prepared below the list of Channel Managers I have encountered within hostels, or about which I have heard of.

The Property Management Systems for your hostel

 I have gathered a list of the PMSs that have hostels in the heart (in no particular order). Contact each directly to get a free demo presentation and pricing for your property.

  • FrontDesk Master – one of my favorites for hostels (Hit the image below & sign up for a free trial. You’ll receive a 10% discount from your first invoice.)
try frontdesk master pms free for 30 days and get 10% off the first invoice

Let me know what system do you use and if it meets your needs. I read you in the comments below or find me on Instagram!

Note: this post contains affiliate links. That means that if you purchase through them recommended products, I will get a small commission with no extra cost for you. This small money allows me to go for a beer after finishing my shift in a hostel (very often much-needed) and supports maintaining this blog.

Posted by Ewa Gabara

Posted by Ewa Gabara

Founder of Don’t Mess With The Receptionist. I geek out on hostels and I’m a long-time receptionist turned into a copywriter. I help the hospitality and travel brands conquer the world with words.

try frontdesk master free for 30 days and get 10% off your first invoice

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