In the past, legacy technologies in hospitality used to be closed systems, reluctant to open up to third-party integrations, applications and solutions. This type of technology prevented property and its guests from adopting some very innovative and much-needed applications and services.

Historically, to access these much-needed and innovative third-party solutions and applications, it required lengthy and expensive integrations that had the effect of dissuading hoteliers from actively seeking out tools that would enhance their business and the guest experience, because they knew that even if they found a great solution, integrating it would feel like more trouble than it’s worth as per Mews PMS CEO Matt Welle.

There are over 5,000 hotel tech vendors around the world, many of them AI-first or using smartly AI in their applications. These vendors are working around the clock to develop new and innovative solutions to common problems in hospitality or to elevate service delivery in hotel operations, guest communications, revenue management, marketing, etc.

Case study: Agentic AI and ARI

How will hotels provide ARI (Availability, Rates, Inventory) to the Agentic AI platforms like ChatGPT Operator, Google Gemini AI Agent, Microsoft Copilot AI Agent, Claude AI Agent, etc., which are already a fact and their travel research, planning and booking capabilities are growing by the minute? Two approaches: via the use of AI connectivity middleware like the Model Context Protocol (MCP) and Agent-to-Agent (A2A) or via APIs to the property's CRS, Channel Manager or cloud PMS.

DirectBooker, a brand new AI connectivity startup backed by former Tripadvisor CEO Steve Kaufer and ex-Google Travel head Richard Holden, wants to enable hotel ARI directly into AI tools like ChatGPT and Gemini thus circumventing the OTAs and boosting direct bookings.

I am sure we will witness a number of these AI connectivity startups over the next few years and all of them will need integrations with the property PMS, CRS, CRM and tech stack.

I believe in the near to mid-term, any full-service 3-4-5-star hotel will need over 100 plus APIs (application programming interface) with third-party tech applications and solutions to be able to function and meet the basic needs and wants of today's tech-savvy travelers. These include AI Agents, Ai-powered chatbots and virtual concierge, mobile and contactless guest experience applications, issue resolution apps, guest messaging, IoT devices and utility management, smart room technology, entertainment hubs, housekeeping scheduling and workflow, etc. and mandatory technologies like CRM, RMS, CRS, Channel Manager, etc.

This type of connectivity is impossible or super expensive to achieve with a legacy PMS, which, as mentioned, is hostile to any third-party interfaces by default.

Luckily for the industry, there has been a monumental shift in the hospitality vendor community's mindset: from closed system mentality to cloud technology with Open API mentality. In the PMS space it begun with cloud-first PMS pioneers like Mews and Cloudbeds.

Why the hub-and-spoke model is the future of the hotel tech stack?

I believe the PMS-centric tech stack will continue to dominate hotel technology in the foreseeable future. This will not be your legacy, on-premises PMS, but the cloud PMS with Open API serving as the HUB of the tech stack that extends SPOKES to a myriad of smart and innovative third-party platforms, applications and services via the PMS’s integration hub/marketplace/store. This hub-and-spoke model ensures quick and painless integrations and allows guest, marketing and operational data to flow throughout the “veins” of this tech stack.

Low costs, efficiencies, higher productivity and data security aside, a cloud PMS with its Open API and integration hub instantly solves the problem of connecting to any third-party application that is needed in operations, sales, marketing, distribution, etc. and demanded by today’s tech-savvy customers. “One-click connect apps”, “Forever free integration to any new app” are only some of the appealing benefits promoted by the cloud PMS-related integration hubs.

Good examples: The Oracle Hospitality Integration Platform (OHIP) with 3,000 API capabilities, StayNTouch Integration Hub with 1,100 APIs; Mews Marketplace - 1,000 APIs, Protel Air PMS Marketplace - 1,000 APIs, Cloudbeds PMS - 300 APIs, apaleo PMS Store, etc.

In the same time, I do not believe in one-stop-shop tech stack platforms. “Jack of all trades, master of none” isn’t working in this super dynamic world we live in. The old legacy PMS-es tried for decades to be “we do it all” platforms and failed. Ex. During the pandemic it took enterprising tech vendors mere weeks to develop mobile check-in applications, mobile keys, mobile issue resolution technologies, etc., which some PMS do not have as native applications even today.

I believe in best-of-breed plug-in technology that can easily be integrated into the cloud PMS and the rest of the hotel tech stack. The cloud PMS should ensure that guest, marketing and operational data from any such vendor that is part of its integration hub is flowing freely throughout the system.

I see emerging three types of technology integration platforms in hospitality:

  • Cloud PMS with Open API and Integration Hubs like Opera Cloud PMS, Mews, StayNTouch, CloudBeds, protel, etc. and their integration platforms, and
  • Independent integration hubs, like IBS Software/Above Property Services (APS), Nonius Solutions, etc., which are focusing on serving properties with existing legacy tech stack.
  • AI Connectivity middleware platforms like the Model Context Protocol (MCP) and Agent-to-Agent (A2A) to provide ARI (Availability, Rates, Inventory) to the Agentic AI platforms like ChatGPT Operator.

When Accor adopted Opera Cloud, the chain cited its Opera Hospitality Integration Hub (OHIP) platform as one of the main benefits of their decision. OHIP is one of the reasons we moved to OPERA Cloud, Bertrand Blacha, Accor’s vice president for global hotel technology, said. We think it will offer so many possibilities with partners that was not possible (before) today.

There is no doubt in my mind that the cloud PMS with Open API facilitating connectivity to hundreds and thousands of smart, innovative and much sought-after applications and solutions is the clear winner today and tomorrow.

The question is, can the integration hubs save our legacy tech-prone industry and elevate it to meet the demands of today’s tech-savvy travelers? And what to do with the over 650,000 hotels around the world with on-premises, legacy PMS or some without a PMS at all?

I see two options for these hotels to gain access to much-needed third-party solutions and applications:

One is switching to a cloud PMS. ASAP! The sooner these hoteliers switch to a cloud PMS, the more excellent the guest experiences they provide will be, the more they will know about their guest preferences, the better they can communicate with their guests, the more loyal customers they can win thus generating more repeat business, the more they can empower their employees, the more automation and operational efficiencies they can implement, the faster they can improve the bottom line.

The second option is partnering with third-party integration hubs like SiteMinder, Impala, IreconU, Hapi, Nonius Hub, Above Property Services (APS), etc. to solve their connectivity needs.