The verdict in three sentences
For a hotel group in Nice, a market SaaS PMS stays the pragmatic choice as long as reservations, channel manager and F&B remain standard — budget 6 to 12 €/room/month plus the channel manager, i.e. 90,000 to 180,000 € over 5 years for 300 rooms. Custom (160,000–280,000 € excl. VAT + 26,000 €/year maintenance) becomes worthwhile when multi-property operations, integrated F&B and a proprietary yield engine become differentiation levers. The real financial stake isn't the licence: it's RevPAR and OTA disintermediation, where a few recovered commission points quickly exceed the development premium.
The tipping points toward custom
A SaaS PMS covers the essentials. It's the group-level specifics that tip the balance.
| Criterion | SaaS PMS fits if… | Custom if… |
|---|---|---|
| Number of properties | 1–2 hotels | 3+ with consolidated reporting |
| Pricing | Standard yield | Proprietary yield management |
| F&B | Third-party module suffices | F&B integrated into stay |
| Distribution | OTA + standard site | Aggressive disintermediation, direct |
| Data & reporting | Standard dashboards | Custom group decision-making |
5-year TCO (300 rooms, 4 properties)
The comparison is decided on cumulative licences + channel manager + integrations.
| Item (5 yrs) | Market SaaS PMS | Custom PMS |
|---|---|---|
| PMS licences (6–12 €/room/mo) | 65,000–130,000 € | 0 (owned) |
| Channel manager | 18,000–35,000 € | included |
| Integrations (F&B, accounting) | 15,000–40,000 € | included |
| Initial development | — | 160,000–280,000 € excl. VAT |
| Maintenance | included in licence | ~26,000 €/yr |
| 5-yr TCO (order of magnitude) | 90,000–180,000 € | 290,000–410,000 € |
SaaS wins clearly on raw cost. Custom pays back elsewhere: on hospitality revenue of several million, disintermediating 5 points of OTA bookings (15–20 % commissions) and gaining 2 to 3 % RevPAR via a proprietary yield engine generates sums that absorb the TCO gap in 2 to 3 years.
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Mini case study
Isabelle runs a group of 4 hotels in Nice, 300 rooms, average RevPAR 95 €, occupancy 72 %. About 38 % of room nights go through OTAs at 17 % commission. A custom PMS with a direct booking engine and proprietary yield shifts 6 points of OTA nights to direct: on hospitality revenue of about 7.5 M€/year, that saves ~76,000 €/year in commissions, and +2 % RevPAR adds ~150,000 €/year. A 220,000 € excl. VAT build pays back in about 12 months.
FAQ
Isn't a SaaS PMS safer? For 1 or 2 standard hotels, yes, and far cheaper. From 3-4 properties with consolidated reporting and proprietary yield, custom regains the strategic edge despite a higher raw TCO.
Is the channel manager included in custom? Yes, developed and connected to the relevant OTAs and GDS, with no third-party subscription. It's an item SaaS bills separately (18,000–35,000 € over 5 years).
How long for development? Budget 26–36 weeks for a full group PMS (reservations, channel manager, dynamic pricing, F&B, consolidated reporting), delivered per property.
Where is guest data hosted? On GDPR-compliant EU servers, encrypted, with backups — a sensitive criterion for booking and payment data.
Can we migrate without downtime? Yes, gradual switchover property by property, with booking history migration and a temporary dual-run to secure operations.
Let's scope your project. Tell us your number of properties, rooms and OTA share: we'll quantify the disintermediation gain and say whether SaaS (90–180 k€/5 yrs) or custom (160–280 k€ excl. VAT) is the right bet. 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.
