The verdict in three sentences
An off-the-shelf PMS is unavoidable for room operations, but it leaves you dependent on OTAs and their 15 to 25 % commission. The real value of a custom project for a hotel group in Dubai is the direct booking engine + CRM + multi-property reporting, priced between 70,000 and 160,000 EUR. If you shift +18 % of bookings to direct, the commission savings pay back the custom build in 2 to 3 years.
Off-the-shelf PMS: the recurring cost
The PMS stays the operational core. Here are the 2026 per-room ballpark costs.
| PMS line item | 2026 cost | Basis |
|---|---|---|
| PMS licence | 8 - 20 EUR/room/month | per room |
| Channel manager | 2 - 6 EUR/room/month | per room |
| Initial setup | 3,000 - 12,000 EUR | per hotel |
| OTA commission | 15 - 25 % | per OTA booking |
| Staff training | 1,500 - 5,000 EUR | per hotel |
For a group of 5 hotels totalling 400 rooms, PMS + channel manager alone costs 48,000 to 125,000 EUR/year recurring, excluding OTA commissions.
The custom bricks that make the difference
Custom doesn't replace the PMS: it surrounds it with what captures margin and customer data.
| Custom brick | Role | 2026 cost (EUR) |
|---|---|---|
| Direct booking engine | Reduce OTA dependency | 25,000 - 55,000 |
| Unified customer CRM | Loyalty, upsell, segmentation | 18,000 - 40,000 |
| Multi-property reporting | Group KPIs, RevPAR, occupancy | 12,000 - 30,000 |
| PMS integration (API) | Sync rooms, rates, availability | 10,000 - 25,000 |
| Leadership portal | Consolidated 5-hotel view | 5,000 - 10,000 |
5-year TCO: the real trade-off
| Scenario | 100 % OTA + PMS only | PMS + custom bricks |
|---|---|---|
| Custom build | 0 EUR | 90,000 EUR (average) |
| PMS 5 years (400 rms) | ~240,000 EUR | ~240,000 EUR |
| OTA commissions 5 yrs | ~2,250,000 EUR | ~1,845,000 EUR |
| Direct bookings | ~10 % | ~28 % |
| 5-year TCO | ~2,490,000 EUR | ~2,175,000 EUR |
With 12M EUR/year of room revenue at 25 % via OTAs, moving from 10 % to 28 % direct saves roughly 405,000 EUR of commission over 5 years, well beyond the 90,000 EUR custom spend.
Mini case study
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Sophie, director of a 5-hotel group in Dubai (400 rooms, 12M EUR revenue), pays 22 % average commission on 55 % of nights sold via OTAs. She invests 90,000 EUR in a direct booking engine + CRM. In 14 months, the direct share rises from 10 % to 24 %, i.e. roughly 1.7M EUR of revenue repatriated and 370,000 EUR of commissions saved/year. The custom build pays back in under 4 months on annual commission savings alone.
FAQ
Do we need to change PMS?
Rarely. We keep the PMS for operations and integrate it via API. Integration budget is 10,000 to 25,000 EUR depending on the richness of the PMS API.
Is a direct booking engine really profitable?
Yes, as soon as the OTA share exceeds 40 %. Each point shifted to direct saves the commission (15-25 %) on that revenue - one of hospitality's fastest ROIs.
How long to roll out across 5 hotels?
Budget 4 to 7 months: a pilot on 1 hotel in 2-3 months, then a configuration-based rollout of the other 4.
Is the CRM good for more than email?
Yes: segmentation, personalised offers, pre/post-stay follow-ups, and customer lifetime value across all 5 hotels. It's the foundation of upsell and loyalty.
What maintenance budget should we plan?
Budget 12 to 20 % of build per year, i.e. roughly 11,000 to 32,000 EUR/year to secure enhancements and integrations.
Let's scope your project. Send us your room count, current OTA share and PMS, and we'll frame the custom bricks between 70,000 and 160,000 EUR. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
