How to manage hotel IT suppliers without becoming hostage to any of them
A mid-sized hotel usually depends on several different technology suppliers. Here is how to map, assess and review each of them, and the contract red flags that prove costly when ignored.
Why managing IT suppliers is more complex in hospitality
A hotel depends on many interconnected third-party systems. PMS, POS, booking engine, channel manager, connectivity, security and, increasingly, electronic locks and AI tools in guest service all exchange data with each other and with guests. Each supplier has its own contract, SLA and level of access to sensitive data, and without someone overseeing the whole picture, each purchasing decision is taken in isolation, with no view of the whole.
Map every technology supplier the hotel uses
The first step is to have, in a single place, the complete list of active IT suppliers, what each one does, who the internal owner of the relationship is and when the contract expires. In general, that list includes:
- PMS (property management system)
- POS for the restaurant, bar and other outlets
- Booking engine and channel manager
- Connectivity and guest Wi-Fi provider
- MSP (managed service provider) or outsourced technical support
- Security supplier: firewall, antivirus, backup
- Telephony and call handling
- Electronic locks and CCTV, where applicable
Criteria for assessing an IT supplier
Beyond price, some criteria weigh heavily in hospitality: SLA by ticket severity, quality of support outside business hours, handling of guest data in line with the LGPD (Brazil's data protection law), an open API for integration with other systems, the supplier's financial health (the risk is that it closes down, is acquired or discontinues the product) and the level of dependence the hotel creates by hiring it.
Contract red flags
- Automatic renewal without clear advance notice
- No SLA defined by ticket severity
- Administrative accounts under the supplier's sole control, with no access for the hotel
- No data portability clause on exit
- No clause on data protection, security and incident notification, when the supplier processes guest data
- A cancellation or exit fee out of proportion to the contract value
Any of these points may justify renegotiation, depending on how critical the supplier is. The right moment is before the next renewal, not after a problem has happened.
How to avoid vendor lock-in
One of the biggest risks of loose supplier management is contractual, not technical: dependence on configurations, passwords and documentation that only the supplier knows. This is avoided by requiring, from signature, that critical administrative accounts stay under the hotel's control, kept in a credential manager, that configuration documentation is delivered and kept up to date as part of the service, and by preferring systems with an open API over closed solutions with no way to export data.
It is also worth planning the exit from signature. The contract should guarantee the export of data and configurations in a usable format, the handover of credentials and documentation, support during the transition to the new supplier and the return or deletion of the hotel's data at the end.
Periodic contract review
A full annual review of all technology contracts, comparing cost, performance and real need, prevents the silent build-up of redundant licences and contracts that no longer reflect the size of the operation. Mark each supplier's renewal date in the calendar and review each contract early enough to respect the notice period it requires for non-renewal. That leaves time to negotiate or switch without pressure.
Who should own this responsibility
Ideally, someone with technical insight and the authority to negotiate, assessing each supplier independently and without a commercial conflict of interest, which is not the case when the MSP itself decides whether the hotel needs to change MSP. In hotels without this function in-house, a virtual IT manager or external consultant takes on the role, reporting decisions to the board.
Next steps
Mapping and reviewing your hotel's technology suppliers does not have to be done alone. Our team assesses current contracts and suppliers and recommends where to renegotiate, consolidate or switch. To keep that assessment independent, we have no agreements with specific suppliers, and any supplier commission is only discussed after the hotel has agreed its price, without changing that price, and is always disclosed to the hotel. Talk to our team.
Virtual IT Manager
Independent management of technology suppliers, contracts and SLAs, with no commercial incentive to sell more services.
View service- Complete supplier mapping
- Review of contracts and SLAs
- Negotiation without conflicts of interest
- Lower risk of vendor lock-in
Related reading
Which IT suppliers does a hotel need to manage?
At a minimum: PMS, POS, booking engine or channel manager, connectivity and Wi-Fi provider, MSP or technical support, security supplier (firewall, antivirus, backup), telephony and, in many hotels, electronic locks and CCTV. Each of these suppliers has a contract, an SLA and access to the hotel's data or systems that need to be tracked individually.
How do you avoid becoming hostage to an IT supplier (vendor lock-in)?
Require, from contract signature, that critical administrative accounts stay under the hotel's control, kept in a credential manager, that configuration documentation is delivered and kept up to date, and that there is a data portability clause with no abusive exit fee. Prefer systems with an open API and avoid suppliers that depend on undocumented knowledge to work.
How often should a hotel review its technology contracts?
Ideally, a full annual review of all technology contracts, covering the performance, cost and real need for each supplier, plus a one-off check whenever a contract is close to automatic renewal. Contracts that renew on their own without review are a frequent cause of waste in a hotel IT budget.
Who should be responsible for managing IT suppliers in a hotel?
Ideally, someone with technical insight and the authority to negotiate, assessing suppliers independently and without a commercial conflict of interest. In hotels without this function in-house, a virtual IT manager or external consultant usually takes on the role, reporting decisions to the board.
Want an independent assessment of your hotel's IT suppliers?
Talk to our team and find out where to renegotiate, consolidate or switch.