The verdict in three sentences
For a group of 5 to 20 properties, a SaaS PMS (EUR 8-25/room/month) is enough while centralization stays light, but it keeps you dependent on OTAs. A custom centralized PMS + direct booking engine (EUR 90,000-250,000) attacks the real cost: the 15-20% commission Booking and Expedia take. The math hinges on the 10-18% of direct bookings you bring back home.
SaaS PMS or custom: the right scale
Multi-property SaaS is fast, but every room is billed and the booking engine is often standard. Custom truly centralizes data (rates, availability, guest CRM) and makes direct a strategic channel, with an integrated channel manager.
| Criterion | SaaS PMS | Custom PMS |
|---|---|---|
| Entry cost | EUR 3,000-15,000 (setup) | EUR 90,000-250,000 |
| Monthly cost | EUR 8-25/room | Hosting EUR 500-1,500/mo |
| Timeline | 2-4 months | 6-10 months |
| Direct booking engine | Standard | Custom, conversion-optimized |
| Channel manager | Often included | Integrated |
| Multi-hotel centralization | Good | Full |
| Loyalty program | Limited | Custom |
| Code ownership | No | Yes |
3-year TCO for an 8-hotel group (600 rooms)
Same scope (PMS, channel manager, direct booking engine, CRM). 2026 orders of magnitude.
| Line item | SaaS PMS (EUR 16/room) | Custom |
|---|---|---|
| Setup / initial build | EUR 12,000 | EUR 170,000 |
| Subscription 600 rooms / yr | EUR 115,200 | EUR 0 |
| Hosting + monitoring / yr | included | EUR 12,000 |
| Maintenance / changes / yr | included | EUR 25,500 |
| 3-year total | EUR 357,600 | EUR 282,500 |
At this scale custom becomes cheaper from year three, and above all it captures direct bookings that SaaS doesn't prioritize. The decisive lever is the avoided OTA commission.
Mini case study
Ines, CEO of an 8-hotel group in Bordeaux and Biarritz, runs 600 rooms, 72% occupancy and an average EUR 118/night. That's ~157,700 room-nights/year, i.e. EUR 18.6M in room revenue. Her OTA share is 45% at a 17% average commission: 18.6M x 45% x 17% = ~EUR 1.42M in commissions/year. A strong direct engine repatriates 12 points to direct: 18.6M x 12% x 17% = ~EUR 380,000/year in saved commission. Against a EUR 170,000 build and EUR 37,500/year in running costs, the net return exceeds EUR 300,000 in the first full year.
FAQ
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What does a custom PMS for a group cost in 2026?
Between EUR 90,000 and 250,000 depending on the number of properties, CRM depth and how optimized the direct booking engine is.
Isn't SaaS enough to reduce OTAs?
It helps, but its booking engine stays standard and poorly optimized for conversion. Custom treats direct as a full product, with loyalty and dynamic pricing.
What real gain in direct bookings?
10 to 18 points depending on marketing maturity and journey quality. Each repatriated point saves the matching OTA commission, often EUR 20,000-40,000/year per point on an average group.
How long to deploy across several hotels?
6-10 months, starting with a pilot hotel (2-3 months) then rolling out the rest. Guest and rate data migration is the watch point.
Can we keep the current channel manager?
Yes, a custom PMS interfaces with major channel managers via API, or builds it in natively if you prefer full centralization.
Let's scope your project. Give us your number of properties, rooms and current OTA share: we'll price the PMS + direct engine that cuts your commissions, indicative budget EUR 90,000-230,000. 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.
