Skip to content
Menu

Further readingGuides

Hotel management software: what it has to do by law, before the sales features

A receptionist smiles behind the wooden desk of a period hotel, with a city map open on the counter

Whoever types "hotel management software" is almost always comparing two or three competing products: price, modules, integration with the booking engine. It's the right question, but it starts one step too far ahead. Before looking at the sales features, a PMS for an Italian property has to do two things that aren't negotiable and that almost no product comparison names, because they aren't features: they're legal obligations.

The two things it has to do, before anything else

Reporting guests to the police within 24 hours

Anyone running an accommodation business in Italy, regardless of size, is required by article 109 of the TULPS (Italy's consolidated public security law) to report every guest's identity details to the competent police headquarters within twenty-four hours of arrival, cut to six hours for stays that don't exceed twenty-four hours. Today the obligation is met through the Alloggiati Web portal.

This isn't a minor administrative detail: omitting it, being late, or reporting false data isn't an administrative offence, it's a criminal one. Article 17 of the TULPS, which sanctions violations of the text that have no penalty of their own, sets detention up to three months or a fine up to 206 euros. The amount isn't large, but it stays a criminal proceeding, not a fine you pay and forget.

A PMS isn't legally required to make this report on your behalf: the obligation is yours, as the operator. But it's exactly the kind of repetitive, daily task with a tight deadline that software exists to absorb, and in fact almost every PMS built for the Italian market automates it, generating and transmitting the reports straight from its own guest records instead of making you open a second portal every evening. It's something to check before you sign, not a feature you can assume is identical everywhere: how long the report takes to generate, what happens if a field is missing from the ID document, and who notices if the automatic submission fails are three questions worth asking in a demo.

Certifying revenue: daily takings most of the time, an invoice only on request

For a hotel, the everyday document is almost never the invoice. Article 22 of Italy's DPR 633/1972 exempts hotel services from the invoicing requirement when the guest doesn't ask for one by the time the service is performed, and most guests who pay in person never ask: the stay is certified through corrispettivi, daily takings records. Since 1 January 2020, the obligation to electronically store and transmit those daily takings, introduced by article 2 of legislative decree 127/2015, applies broadly to anyone operating this way, hotels included.

The invoice, and so the electronic invoice in force since 1 January 2019 under Italy's 2018 Budget Law, comes into play in only two cases: when the guest asks for one, typically someone travelling for work who needs it for their own accounts, or when an agency or OTA is the one paying, in which case you invoice them, not the guest who slept in the room.

For the PMS this means two distinct functions, not one: it has to handle daily electronic takings for the bulk of everyday revenue, and it has to be able to issue an electronic invoice, either itself or by handing off to your accountant's software, for the cases where one is actually needed. A product that only does the second covers the less frequent case and leaves the everyday one uncovered.

ObligationRuleWhen it appliesWhat's at stake if it's missed
Reporting guests to the policeArticle 109, TULPSEvery guest, within 24 hours of arrival (6 hours if the stay is under 24 hours)Criminal offence: detention up to 3 months or a fine up to €206, article 17 TULPS
Daily electronic takingsArticle 2, Legislative Decree 127/2015Every non-invoiced transaction, since 1 January 2020Administrative fine, with aggravating conditions for repeated violations
Electronic invoicingItaly's 2018 Budget Law, since 1 January 2019Only on customer request, or towards agencies and OTAsInvoice not valid for tax purposes unless it passes through the Sistema di Interscambio

Everything else is product choice, not obligation

Room records, rates, availability calendars, arrival reporting: that's the core of any PMS, and it's where products genuinely differ, but it's product choice, not a legal box to check in a demo. The link with a booking engine and a channel manager, which sometimes travels on the same subscription as the PMS and sometimes doesn't, I've already broken down line by line in how much does a hotel website cost: that piece also explains why the website, the booking engine, the channel manager and the PMS are almost always four separate contracts, with four separate invoices, even when they're sold to look like one package.

On those sales features, the questions worth asking in a demo are the same ones you'd ask about any subscription software, and it's worth writing them down before booking the first call with a provider:

  1. Who updates rates and availability the day before a change: you, or the provider's support team?
  2. What happens to your data, bookings included, if you switch PMS one day: does it export, and in what format?
  3. Does the subscription include phone support, or is that a separate service?
  4. If you run more than one property, does the price scale per property, per room, or is it a single package?
  5. When a booking that came through the channel manager doesn't show up on the calendar, who answers: the PMS provider or the channel manager's?

The fifth is the one almost nobody asks before signing, and it's the one that matters most in high season.

How much it costs

The published figures from providers that publish them, with the source and the date I checked, are in that same article: who charges per room, who charges a flat fee, who adds a percentage on what's booked. I'm not repeating them here because software prices change, and an article that quotes them in two places risks the two drifting apart over time. If you're comparing quotes, start there.

When standard is enough, and when it isn't

For the large majority of properties, one of the commercial PMS products is enough, and it's the right choice: it costs less, it goes live in weeks, and someone else keeps it updated. Custom software isn't a generally better alternative, it's the answer to a specific case: a process no commercial product covers, one you're currently holding together by hand, with spreadsheets or with two or three programmes that talk to each other badly.

A few concrete examples, so you can recognise it: several properties managed together with their own, non-standard pricing and availability rules; a department (restaurant, spa, events) whose workflow doesn't resemble a single room and that no PMS module represents well; a link to an older system, perhaps built years ago for the property, that no commercial product knows how to talk to. In these cases, the time you spend every week making by hand what the software doesn't do is the signal, not a feeling: if you're already doing that, building the missing piece costs money, but it removes work that would otherwise stay on someone's plate forever.

Outside those cases, custom software isn't the answer to a comparison between two standard products: it's the answer to a process the comparison doesn't even cover. My custom software work starts from there: analysing the process before writing a line of code, a written specification so you know what you're buying, and connecting to whatever you already use, PMS included. It has no list price, because it depends on the process it has to cover, and anyone who quotes you a figure before seeing it is guessing.

Where to start

If you're choosing a PMS, the short list is: check the police reporting first, and how it handles daily takings and electronic invoicing, not as a technical detail you assume is handled; then compare the sales features the way you'd compare any other software, price, modules, support; and keep custom software aside for the day, if it comes, when you notice you're working around the software instead of with it.

If that day is already here, write to me and describe the process no product covers: it becomes clear quickly whether it's really a case for custom software or whether a product already exists that you simply haven't looked at yet.

Frequently asked questions

Does a hotel PMS have to report guests to the police on its own?

It isn't a technical requirement of the software, it's your obligation as the operator, under article 109 of Italy's TULPS. But almost every Italian PMS automates it, because doing it by hand, guest by guest, every day, within the deadline, is exactly the kind of work software exists to remove. Check that it does it, and does it within the deadline, before you sign: don't assume every product includes it the same way.

What happens if I miss a police report?

The omission is a criminal offence, not an administrative fine: article 17 of the TULPS, which sanctions violations of the text that don't have their own penalty, sets detention up to three months or a fine up to 206 euros. It isn't a life-changing amount, but it is still a criminal proceeding, not a fine you pay and file away.

Does an Italian hotel have to invoice every stay?

No, and it's a common misunderstanding. Article 22 of Italy's DPR 633/1972 exempts hotel services from the invoicing requirement if the guest doesn't ask for one by the time the service is performed: most guests who pay in person never ask, and the stay is certified through corrispettivi, Italy's daily electronic takings record, in force since 1 January 2020. The invoice, electronic since 1 January 2019, comes into play only when the guest requests it or when an agency or OTA is the one paying.

Does the PMS need to issue the electronic invoice itself, or is it enough that it connects to whatever does?

Either way works, for the share of revenue that actually needs invoicing. If your PMS generates the electronic invoice directly or talks to the accounting software your commercialista uses, the result for you is the same. What matters is checking this before you sign, alongside how it handles corrispettivi for everything else, not after the first invoice you have to fix by hand.

When does custom software make more sense than a standard PMS?

When the process you need to run doesn't exist in any commercial product, not when an existing product just asks you to adapt a little. The tell is concrete: if you're already holding that piece of work together by hand, with spreadsheets or with several programmes that talk to each other badly, that's the case where building pays off. If you're only comparing features across two or three standard products, custom software isn't the answer to that comparison.

How much does hotel management software cost?

The published prices of Italian providers, with sources and the date I checked them, are laid out in another article together with how the pricing models combine: per property, per room, per connection, as a percentage of what's booked. This piece was about a different question, one no price list answers on its own.

More articles

Is your process everyone else's, or your own?

Tell me about your project