What does ‘best of breed’ mean in the context of hotel software?

‘Best of breed’ is a software strategy whereby companies select a specialised solution for each area of operation.

This results in a tech stack comprising several applications, each of which performs a specific task particularly well: in a hotel, for example, a PMS for bookings and master data, a revenue management system for dynamic pricing, a tool for guest communication, a solution for digital check-in, a housekeeping app and a CRM.

The advantages of Best of Breed

The ‘best-of-breed’ approach has long been the dominant one in the hospitality industry.

After all, it offers several advantages:

• Specialised functions: Stand-alone solutions often offer a wider range of functions in their specific area than cross-functional platforms. A revenue management system, for example, has different analysis and price optimisation functions to a module within a hotel platform.

• Greater flexibility in software selection: Hotels can choose the provider that best meets their requirements for each business area. Solutions can be added or replaced without having to overhaul the entire software landscape.

• Rapid pace of innovation: Specialised software providers continuously develop their products and often respond quickly to new market demands. This allows hotels to benefit early on from new features or technologies that are precisely tailored to a specific use case.

• Customisation options: A boutique hotel has different processes to an international hotel group or a holiday resort. With a ‘best-of- -breed’ approach, the tech stack can be put together individually and adapted to the hotel’s own requirements.

Where ‘best-of-breed’ reaches its limits

So, whilst there are strong arguments in favour of best-of-breed approaches, there is also at least one major drawback: the more specialised systems a hotel uses, the greater the effort required to integrate them.

Hoteliers are therefore increasingly faced with the following challenges:

Interfaces become a key to success

Information only flows automatically between the PMS, CRM, revenue management system or housekeeping app if the applications communicate with one another. This requires interfaces. The more systems that are used, the more integrations need to be set up, monitored and maintained.

If an interface fails or data is not transferred correctly, this often has a direct impact on hotel operations. Staff have to manually update information or check it across multiple systems. This costs time and increases the risk of errors.

Data silos make it difficult to maintain an overview

Having guest data spread across different applications quickly leads to a fragmented database. Changes have to be made multiple times, or may not be up to date in individual systems. This complicates day-to-day operations, personalised guest experiences and data-driven decision-making.

More systems mean more effort

Every additional piece of software brings with it its own user interfaces, training, contracts and support processes. New staff members have to master multiple applications, updates need to be coordinated, and when problems arise, it is often unclear which provider is responsible.

Automation is only possible to a limited extent

When processes are spread across various standalone solutions, automating them is a complex undertaking. Every additional system change increases complexity and creates new sources of error.

In summary, ‘best-of-breed’ approaches rarely fail due to the quality of individual solutions. The challenge lies in turning many specialised applications into a seamlessly functioning overall system.

What is a hotel operations platform?

A hotel operations platform consolidates key processes and data into a single software solution.

Instead of using a separate application for each task area, different functions operate on a unified technical foundation. Ideally, front office, housekeeping, guest communication, upselling and payment processes all access the same database. Changes are immediately available to all relevant departments.

The benefits of a platform strategy

A platform strategy reduces friction and creates the right conditions for automation, data quality and a consistent guest experience:

• Fewer system switches in day-to-day operations: A central platform consolidates key tasks within a unified environment. This makes workflows clearer – particularly in fast-paced areas such as the front office, guest communications or housekeeping.

• More consistent processes: Hotels can structure workflows more clearly. Tasks, guest information and process steps follow a common logic. This facilitates collaboration between departments such as the front office, operations, housekeeping and management.

• Faster induction of new staff: In the hospitality industry, teams change frequently. Sometimes additional support is required at short notice, and new staff need to be up and running quickly. A centralised user interface can significantly reduce the training burden.

• Higher data quality: A shared database reduces duplicate data entry and conflicting information. Guest data, booking details, preferences and payment statuses do not need to be updated in multiple places. Good data forms the basis for personalised communication, automated workflows and reliable decision-making.

• Better conditions for automation: Automation only works if systems can reliably access up-to-date data. Platform solutions create the ideal conditions for this because processes and information are closely linked.

• A more consistent guest experience: When information is available centrally, messages, services and offers can be tailored effectively to the specific situation.

Challenges of a platform strategy

Despite all the advantages, centralised platforms also present challenges that hoteliers should take into account when making their choice.

• Modules with a more limited scope of functions: Platforms cover many areas of operation. Consequently, individual modules often do not offer the same scope of functions as highly specialised solutions.

• The choice of provider becomes increasingly important: those who consolidate multiple processes on a single platform become more dependent on its ongoing development and reliability. This makes it all the more important to choose a provider that invests in ‘ ’ for the long term, continuously develops its solution and is able to respond to changing requirements.

• Open interfaces remain indispensable: a modern platform does not have to meet all requirements on its own. Many hotels deliberately opt for specialised applications, for example for revenue management or business intelligence. Open APIs make it possible to integrate existing systems into a central platform and expand the range of functions as required. Hotels can integrate new solutions without having to rebuild their entire software architecture.

The hidden costs of complex hotel tech stacks

Costs play a key role when selecting hotel software. The tricky thing is that a tech stack comprising many individual solutions incurs indirect costs which, in the long term, often carry more weight than licence fees:

Integration

To ensure that different systems work together reliably, interfaces must be set up, monitored and regularly adapted. New software versions or changes to APIs can mean that integrations need to be tweaked. The larger the tech stack becomes, the more time and resources are required to manage the system landscape.

Data maintenance

When information is stored across multiple systems, the effort required to maintain it increases. Guest data, booking details and preferences must be synchronised and regularly checked.

Training

New staff members must familiarise themselves with multiple systems, existing teams require training following major updates, and support requests are spread across different providers. In an industry characterised by seasonal fluctuations and high staff turnover, this effort quickly becomes a factor affecting productivity.

Complex implementation of new technologies

An established system landscape often slows down the implementation of new digital processes. If a new self-service feature is to be introduced or an AI-supported use case integrated, it must first be assessed which systems are affected and how they communicate with one another.

This prolongs projects and increases the effort involved in introducing new technologies.

Important: Data is increasingly becoming a decisive competitive factor in the hotel industry. Every point of contact with a guest generates data – from booking and check-in to post-stay communication. The better this information is linked, the easier it is to automate processes, address guests in a personalised manner and make informed decisions. At the same time, the effort required for data maintenance is reduced, as is the risk of conflicting information. A consistent database therefore improves both operational efficiency and the guest experience. It also forms the basis for the successful use of AI, the results of which depend largely on the quality of the underlying data.

Platform or best-of-breed? – These criteria will help you decide

Anyone considering a new purchase or the further development of their hotel tech stack should evaluate the entire system architecture.

The following criteria are particularly important:

Criterion | Key questions

User-friendliness — How many systems do staff use on a daily basis? Do they have to enter information multiple times or search for it across different applications?

Operating costs — What costs are involved, apart from licences, for integrations, maintenance, training and support?

Scalability — Can the software be easily adapted to new locations, additional services or increasing guest numbers?

Data quality — Is there a central database, or is information maintained in several systems in parallel?

Automation — Can recurring processes be automated without complex integrations?

Capacity for innovation — How easy is it to integrate new technologies or additional applications?

Guest experience — Does the software support a seamless guest journey, or are there disconnects between individual processes?

In practice, a pattern often emerges: as complexity increases, a shared database, standardised processes and open interfaces become increasingly important.

The middle ground – why the future isn’t about ‘platform or best-of-breed’

For a long time, the prevailing view was that hotels either relied on a centralised software system or on a combination of specialised individual solutions. Modern solutions bundle central processes whilst remaining open to specialised applications.

This means:

• Open APIs combine the best of both worlds: open application programming interfaces (APIs) allow systems to be securely connected with one another . Hotels can map their key processes onto a shared platform and supplement them with specialised applications where appropriate.

• Platforms become integration hubs: The role of a modern hotel operations platform is not to replace every piece of software. Its added value lies in bringing together information from different sources and using it to create end-to-end processes. This applies, for example, to bookings, guest data, communication, payments and operational workflows.

• Openness ensures future-proofing: platforms with open APIs make it possible to protect existing investments and integrate new solutions step by step.

How LIKE MAGIC implements the platform approach

LIKE MAGIC takes an API-first approach:

• The platform brings together key processes across the entire guest journey on a shared data foundation. Information does not need to be manually transferred between multiple applications; instead, it is available to departments directly and in real time.

• Property management systems (PMS), CRM solutions, revenue management systems and other third-party providers can be integrated via open interfaces. Hotels do not need to completely replace their existing software, but can develop their IT landscape step by step.

The focus is on seamless interaction between all systems involved, in order to automate processes, reduce media breaks and utilise data more efficiently. The result: internal workload is reduced and the guest experience is enhanced.

The hotel’s own requirements are key

Whether a platform strategy or a best-of-breed approach is more suitable depends on the hotel’s requirements:

Small and medium-sized hotels

Hotels with a manageable system landscape often benefit from an integrated platform. It reduces administrative workload, simplifies the induction of new staff and lays the foundation for end-to-end digital processes.

Hotel groups and growing businesses

As the number of locations increases, so do the demands on data quality, standardisation and scalability. Platforms make it easier to standardise processes across all locations whilst maintaining a consistent view of key performance indicators and guest data.

Resorts and specialised establishments

Hotels with particularly complex offerings – such as resorts featuring spas, dining, leisure activities or multiple types of accommodation – often require specialised solutions. In such cases, a platform can really demonstrate its strengths when it can be flexibly expanded to include industry-specific applications.

Legacy system landscapes

Many hotels have introduced various systems over the years. For them, a phased consolidation often makes more sense than a complete overhaul. Open platforms enable the integration of existing solutions whilst helping to gradually simplify processes and data.

Ultimately, there is no single software strategy that is equally suitable for every hotel. The key is that the system landscape supports operational processes, can be adapted to future requirements and keeps operational overheads to a minimum.