AWLabs

Hotel software in Australia: direct bookings, guest data and AI on top of your PMS

Last updated Published by AWLabs How we write

The short answer

An Australian hotel runs on a property management system (PMS) such as RMS Cloud, Cloudbeds, Mews, Little Hotelier or Oracle Opera Cloud, with a channel manager and booking engine around it. Custom software rarely replaces the PMS. It earns its place in the direct booking journey, upsells and digital check in, reporting across properties, and safer handling of guest IDs. Price displays must show the total including unavoidable fees, and from 1 July 2027 per transaction charges must sit beside the base price. Typical builds run from $25,000 to $90,000 (AUD, ex GST) as an indicative range, with full guest apps costing more.

Key takeaways

  • Since 1 September 2016, Expedia and Booking.com contracts with Australian hotels no longer require rates to match or beat your phone, walk in or loyalty rates, so direct channels can legitimately offer better deals.
  • The ACCC requires a single total price that includes unavoidable fees. Where a per person cleaning fee can't be known in advance, at least one fee should be included in the advertised price.
  • The OAIC says you should not scan or copy a guest's ID if sighting it would be enough, and your privacy policy must explain any scanning and how long scans are kept.
  • RMS, Mews and Cloudbeds all publish APIs for partners, which is what makes custom booking flows and reporting possible without leaving the PMS.
  • Victoria's 7.5% short stay levy excludes commercial residential accommodation such as hotels, motels and hostels, so it is not a hotel system requirement.

How do the PMS, channel manager and booking engine fit together?

The PMS is the hotel’s record of rooms, rates, reservations and folios; the channel manager pushes availability and rates out to OTAs; the booking engine takes direct reservations on your website. In smaller properties these often come as one subscription from an all in one product, while groups tend to pair a PMS such as RMS Cloud, Mews, Cloudbeds or Oracle Opera Cloud with a dedicated channel manager like SiteMinder.

Around that core sit payments, door locks, housekeeping, revenue management, the restaurant POS and accounting. Each has its own integration, and that’s where problems appear: a minibar charge that never reaches the folio, a function invoice raised outside the PMS, or a group whose three properties report on three different definitions of occupancy.

The rule we’d apply is simple: keep the PMS as the system of record, and build only at the edges. RMS describes an open API ecosystem as standard, Mews publishes a Connector API for partners, and Cloudbeds runs an API developer hub. Those interfaces are what make custom work possible without a risky PMS migration.

Direct booking or OTA: what can a custom flow actually win back?

A better direct booking flow wins back guests who already know you, not guests the OTA found for you. Be honest about that split before you budget for it.

The commercial room to compete exists. After an ACCC investigation, Expedia (including Wotif) and Booking.com removed requirements, from 1 September 2016, for Australian accommodation providers to offer rates equal to or lower than other OTAs or their own offline channels, and to make all remaining inventory available. The ACCC said hotels could then offer lower rates by phone and walk in, and special deals to loyalty groups. Check your current contracts for what they say about your own website.

Where a custom direct booking front end helps:

  • Speed and clarity on mobile. Fewer steps from date search to payment, with the total price visible throughout.
  • Member and repeat guest rates tied to a login or a verified email, which OTAs can’t see.
  • Packages that combine a room with dinner, parking or a late checkout, priced from the PMS and the POS.
  • Corporate accounts with negotiated rates and invoicing rules, booked without a phone call.

A useful worked test: if your average direct booking saves $40 in commission and a new front end costs $60,000 to build plus $8,000 a year to run, you need around 1,700 extra direct bookings in the first year just to break even on build and running costs. Some hotels clear that easily; many don’t.

What do Australian price display rules require?

Advertise one total price that includes every unavoidable fee, and from 1 July 2027 show per transaction charges next to the base price. The ACCC says the total must include taxes, duties and all unavoidable or preselected fees, shown as a single figure. Its own accommodation example is a serviced apartment charging a $7 per person cleaning fee: because at least one person stays on any booking, one cleaning fee should be in the advertised nightly price, with the full total shown as soon as the guest count is known.

Two further changes affect hotel checkouts:

  1. Card surcharges. Since 1 October 2026, eftpos, Mastercard and Visa ban surcharges for paying by card, and the RBA says American Express, UnionPay and PayPal have also removed them. Booking engines that added a card fee at the last step need to absorb it into rates.
  2. Transaction based charges. The Unfair Trading Practices Act 2026 commences on 1 July 2027. Any mandatory per transaction charge, such as a booking fee, must be displayed with the base price, including whether the base price already includes it.

A booking engine should therefore calculate totals from the PMS’s fee rules at every step, not append fees at checkout. Victoria’s short stay levy is a different matter: the State Revenue Office excludes commercial residential accommodation such as hotels, motels and hostels, so a hotel system doesn’t need it, although a group that also lets apartments might. Our short term rental software page covers that side.

What should you stop storing about guests?

Most hotels hold more identity data than they need, for longer than they need it, and the OAIC has said so plainly. Its guidance on ID scanners says you can only scan a customer’s ID if it is reasonably necessary for your functions, that you should not scan or copy an ID if sighting it would do, and that licences can carry sensitive information, which needs consent. Your privacy policy must explain any scanning, how the data is held and how long it is kept.

APP 11 then requires reasonable steps to protect the data, and to destroy it or remove identifying details once it is no longer needed. Practical rules for a hotel system:

  • Record that ID was sighted (by whom, when, document type) rather than storing the image.
  • If a scan is genuinely needed, keep it encrypted, outside the general reservation record, with automatic deletion.
  • Use the payment provider’s tokens instead of storing card numbers anywhere in your own systems.
  • Restrict PMS exports. Many hotel data leaks start with a spreadsheet emailed to a third party.

If something does go wrong, the notification steps are covered in our guide to the Notifiable Data Breaches scheme.

Where do pre arrival, upsells and digital check in fit?

They sit between the booking and the front desk, reading and writing PMS data through its API. A typical pre arrival flow emails the guest a link, confirms arrival time, offers upgrades or add ons priced from the PMS, collects any registration details the property needs, and issues a mobile key where the lock system supports it.

The traps are integration ones. Upsell revenue has to post to the right folio, not a separate payment page; room upgrades must respect inventory in real time; and if the PMS or lock vendor doesn’t support a step, the guest app must fail back to the front desk gracefully. Ask your PMS vendor which endpoints are certified for partner use before designing anything.

What can AI add to revenue management and guest service?

AI helps most where a human currently answers the same question or reviews the same data every day. Good starting points:

  • Answering pre arrival questions (parking, check in times, dietary requests) from the hotel’s own information, with handover to staff for anything unusual. Our AI chatbot service covers how these are built and tested.
  • Summarising guest reviews by theme across properties, so managers see recurring issues, not just star ratings.
  • Forecasting F&B covers and housekeeping hours from bookings, events and history.
  • Supplementing a revenue management system with local signals it doesn’t see, with a person approving rate changes.

How do multi property groups handle housekeeping and reporting?

Groups usually need one reporting layer over several PMS instances, and a mobile housekeeping and maintenance app that every property uses the same way. Room status, defects and lost property are often tracked on paper or in a chat group. A shared app that writes room status back to each PMS, with photos and job histories, gives the group consistent data. A reporting layer then standardises occupancy, ADR, RevPAR and non room revenue across properties, including F&B and events that sit outside the PMS.

What do hotel software builds cost?

Reporting and booking front ends sit in the mid range; guest apps with check in and mobile keys cost the most. These are indicative AUD market ranges, ex GST, not quotes, consistent with the bands Expeed publishes for Australian custom software.

BuildIndicative range
Housekeeping and maintenance app writing back to the PMS$25,000 to $60,000
Multi property reporting and revenue dashboard$25,000 to $70,000
Custom direct booking front end on a PMS API$30,000 to $90,000
Guest app with pre arrival, upsells and digital check in$70,000 to $200,000

The biggest cost drivers are the PMS API’s coverage, the number of properties and systems, and whether door lock and payment vendors support the flow you want.

How AWLabs approaches hotel projects

We haven’t built software for a hotel yet, and we’d tell you if your PMS can already do what you need with better configuration. We start with a Development Consult to hear the problem, then a paid Discovery Audit that tests your PMS and channel APIs and maps the data flows; its fee is credited in full against the build. You receive a fixed price Schedule of Work in three options (The Minimum, The Recommended, The Complete). Senior engineers lead every build, with updates every Tuesday and Friday. Most hotel work sits in our API development and web and mobile app services, and the wider sector is on our hospitality page. This page is general information, not legal advice.

Frequently asked questions

What is the best hotel management software for a small hotel in Australia?

Small independents often start with a product aimed at small properties, such as Little Hotelier or Cloudbeds, and should check whether the PMS, channel manager and booking engine are all included in the plan they're quoted. Larger or multi property groups look at RMS, Mews or Opera Cloud. Choose on channel connections, payment handling, reporting and the quality of the partner API, because that sets what you can add later.

Can a custom booking engine really reduce OTA commission?

It can move some bookings direct, but it won't replace OTAs, which bring guests you'd never reach. The realistic win is converting guests who already know you: repeat guests, corporate accounts and people who find you on an OTA then search your name. A faster booking flow, member rates and clear total pricing help. Model the commission saved per direct booking against build and running costs before you commit.

Are we allowed to offer cheaper rates on our own website than on Booking.com?

The ACCC's 2016 agreement removed wide parity clauses covering other OTAs and your offline channels such as phone and walk in bookings, and allowed special rates for loyalty groups. Your current OTA contract terms still govern what you can publish on your own website, so check them, ideally with your lawyer, before you advertise lower public rates.

Should we keep scans of guest passports and licences?

Only if you can explain why sighting the document isn't enough. The OAIC says collecting unnecessary personal information breaches the Privacy Act and that scanning should be reasonably necessary for your functions. If you must scan, keep the image encrypted, separate from the booking record, and delete it on a fixed schedule.

Can AI set our room rates?

Revenue management systems such as Duetto already forecast demand and recommend rates. A custom model adds value when you have signals they don't see, such as local events, group bookings in your sales pipeline or F&B demand. Keep a revenue manager approving changes; a pricing model that runs unattended can do a lot of damage in one weekend.

Have you built hotel software before?

No. AWLabs hasn't delivered a hotel or accommodation project, so we won't claim that experience. We bring API integration, web and app development and data engineering, and we'd work from your PMS vendor's partner documentation.

This page is general information about Australian law and regulation, current at the date shown. It is not legal advice. Get advice from a qualified lawyer about your circumstances.

Sources

  1. Expedia and Booking.com agree to reinvigorate price competition by amending contracts with Australian hotels, ACCC
  2. Price displays, ACCC
  3. Competition and Consumer Amendment (Unfair Trading Practices) Act 2026, Federal Register of Legislation
  4. ID scanners, Office of the Australian Information Commissioner
  5. Chapter 11: APP 11 Security of personal information, Office of the Australian Information Commissioner
  6. Removal of card payment surcharges from 1 October 2026: frequently asked questions, Reserve Bank of Australia
  7. Understanding the short stay levy, State Revenue Office Victoria
  8. RMS open API, RMS
  9. Mews Connector API, Mews
  10. Cloudbeds API developer hub, Cloudbeds
  11. Custom software development cost in Australia 2026, Expeed Software
Start with a conversation

Tell us what you need built.
We'll tell you straight if we're the right fit.

Book a call, and we'll show you how we would approach it.

Start with a short Development Consult
Audit fee credited to your build
Response within 1 business day
Mutual NDA sent before you share your idea