Hotel Booking App Development: Features, Cost, and Benefits in 2025

Are you interested in hotel booking app development for profit-making purposes? We must say, that’s a booming industry currently.

The travel industry is one of the largest and fastest-growing sectors worldwide.

In 2024, over 850 million people have used a travel app to book their travel needs and plan their stays. Hence, considering the idea of developing a hotel booking app can turn into an extreme profit-making opportunity.

In this guide, we will unravel the cost of hotel booking app development and the key statistics and its features, benefits, processes, monetization models, and more.

What are Hotel Booking Apps?

Hotel booking apps have been created to easily book accommodations like hotels, hostels, resorts, etc. It takes only a few clicks, and the user can reserve their stay from anywhere at any time.

This has changed the manner in which individuals reserve hotels because they no longer need to physically go to various hotels with their bags to locate a decent one that suits their budget.

Today, people opt for online reservations because they can simply go through reviews posted by other users and consider them before making a decision.

What's more, users enjoy several discounts and deals, which help them save money on bookings.

Travel app development companies have been seeing a rising demand for various app development projects, from taxi booking to train ticket booking app development, and hotel booking app development is not behind.

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Market Overview for Hotel Booking App Development

The hotel booking industry is growing exponentially. Anyone thinking of developing a hotel booking application must understand this trend.

With the market value estimated to grow from $14.63 billion in 2024 to a whopping $526.4 billion in 2031, with a high growth rate of 15.25% per year, the industry is witnessing record growth.

Hotel occupancy levels are projected to rise 2.5% next year, with average daily rates (ADR) rising by 4.9% in the same period. As a result, overall revenue per available room is projected to hit $93.

Internet reservations are also set to dominate the industry, commanding a high 80% of the total revenue over the next three years. Furthermore, room demand has reached its all-time peak in 2023 and doesn't seem to slow down anytime soon.

So, this is the market realization that puts people into the concept of hotel booking mobile app development. Let's proceed to the next section with this out of the way.

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Types of Hotel Booking Applications

In deciding on the hospitality software development that is best for your business, you need to have a clear idea of customer needs, the features of the app, and your own branding & business approach.

Below are the most popular kinds of hotel booking apps from which you can tactically choose the kind that is best for your business.

1. Standalone Hotel Apps

These apps serve as your hotel's online concierge, created solely for visitors to improve their booking and stay experience.

These apps embody your hotel's personality, provide direct contact & booking capabilities, and act as a bridge for an instant connection with your guests.

2. Hotel Chain Apps

These apps perfectly fit big hotel chains with a national or international presence.

They give real-time updates on all their properties, allowing customers to get accurate information and book rooms hassle-free across locations. This is more convenient and guarantees a consistent experience.

3. Hotel Aggregator Apps

Hotel aggregator apps are ideal for businesses that simultaneously manage or own multiple hotel businesses.

They offer a centralized platform or control center to manage several properties. They are meant to collect all the hotel information and present it to the customer under one umbrella. They assist users in finding hotels that best match their location, preferences, and desired amenities—while maintaining trust in your brand.

4. Last-Minute Hotel Booking Apps

Realizing the necessity of time and serving accordingly, these apps are for unplanned or spontaneous travel plans.

These apps assist in discovering unsold rooms, niche deals & promo offers for tourists. This app is also ideal for travelers who trust the reservations are done at the eleventh hour or who are making last-minute travel changes.

5. Online Travel Agency Apps

In contrast to spontaneous travelers, these apps are perfect for people who like to book and plan their vacations in advance.

They provide a broad selection of hotels, flight reservations, and travel services, thus making them a one-stop shop for all travel requirements.

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Must-Have Features of a Custom Hotel Booking App Development

To create a hotel app, there is a need to concentrate on features that will make it easy to use and create a trusted brand image.

Hence, there is a need to add the appropriate features that can attract tourists and give them a good experience.

The following are some of these features that can make your app popular among users:

1. Research Online

When people are interested in booking a hotel online, they generally search for the best available within their budget.

Hence, it is very important to have a comparison feature where users can compare two properties easily and select the appropriate one according to their requirements.

2. Search Option

This is one of the most important features any hotel booking app must have. This feature allows users to easily search for a particular property in a specific location.

The search box saves time and effort that would otherwise be wasted browsing many properties.

3. Secure Payment Gateway

Most travelers like to pay for hotel reservations online as it is convenient and time-saving. Hence, there is a need for a safe payment gateway integration through which customers can easily and securely make payments.

4. Push Notifications

Travelers like constant reminders about the latest deals, offers, and booking information. This feature also helps build a good brand image in the user's mind.

5. Cancelation and Refund

Sometimes, travelers have to cancel their reservations because of last-minute plan changes or medical reasons. In such cases, they must be permitted to cancel their reservations and get a refund of half the amount that they have paid for booking.

6. User Profile

Users who book a hotel room via your app must have an account.

It should be a personalized dashboard for the users to monitor their previous, current, and future bookings, along with their payment status. This is similar to the “order history” panel of many shopping apps in India.

7. Multiple Language Compatibility

Every country has its own native language. If you aim for global success with your hotel booking application, ensure that it has multiple-language support to make it more accessible for users from any corner of the world.

8. Taxi and Car Reservations

Customers do not require a different application for conveyance reservations, like the taxi app, as your application has provided this feature, too.

When booking a hotel using the app, the user can order a taxi by adding the drop and pick locations.

The requests will be fulfilled only if the driver is waiting at the closest pick location, and the confirmation will be done to the customer.

9. Virtual Experience

With the help of this feature, the users can go for a virtual tour of the property they want to book within the next few days. It gives a clear idea about the property and facilitates decision-making. Developers use various types of augmented reality and VR to make it happen.

10. Chatbot Assistant

Another aspect that the competitors make extensive use of in the hotel booking app is the inclusion of a chatbot.

AI chatbot support 24*7 on the app can help ensure that users receive instant assistance for booking-related questions. Therefore, invest in a personalized AI chatbot in your app to increase user experience.

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Benefits of Hotel Booking App Development for Businesses

There are several benefits of mobile apps for businesses. However, today we will mention some of the benefits of hotel booking apps for businesses:

1. Better Booking Rates

Those hotels that install a mobile app in their establishments have shown a 35% rise in bookings. Accurate access translates into more bookings and filled rooms.

2. Improved User Experience

Booking is hassle-free, which does the trick of customer satisfaction. Happy customers are customers once more and even company brand promoters.

3. Increased Brand Loyalty

A great traveling or hotel booking app should provide personalized discount offers and deals to its guests to collect loyalty points. Such a step would ensure their willingness to revisit.

4. Helps to Market your Hotel

For businesses, proper marketing efforts are significant for staying ahead in the competitive market. With mobile app development for a hotel, you can increase your brand awareness and lessen the chances of errors.

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Process to Develop a Hotel Booking App

Here in this section, we will mention ideation to development & launch. So, with that said, let's jump straight into it, beginning with:

Step 1: Brainstorm Ideas

Let's do away with the organized method and free our creative thoughts. We are creating a hotel booking app, so let's think differently.

You can develop various app concepts where you can game-ify the booking process, show hotel details in a totally new manner, and redefine what a travel hotel booking can do.

After we've gone through all the ideas, we can move on to the more practical development side.

Step 2: Market Research

After it's complete, it's time to conduct market research.

Before the development process, you must conduct extensive market research on the hotel booking app and software market. This step is imperative and will form the basis of your app.

You must examine competitors, determine industry trends, and understand user behavior and their buying motives. This research process may take time, so don't hesitate to assign adequate resources.

Once you have all the information, you can proceed to the planning and preparation stage.

Step 3: Planning & Preparation

Then, we turn our attention to the planning and development process. As goes the saying, 'failing to plan is planning to fail,' so we require a solid plan.

Our first step is to choose the correct platform:

• iOS app development
• Android app development 
• Hybrid app development

And then decide on the best technology stack, and assemble our development team.

With these basics under our belts, we can now begin detailing the actual features that will make up our app.

Step 4: List out Features

The core of any great hotel reservation app is in its features. We must deliberately weigh which functionality will differentiate our app.

Though there are base features that the majority of booking apps share, let's also brainstorm for exclusive selling points. Once we've established the set of features, we can proceed with the design phase.

Step 5: UI/UX Design

UI/UX design in software development is important to maintain user engagement and retention.

We must work closely with designers to build an attractive yet easy-to-use interface that incorporates our brand personality.

The design of the app must be an effortless continuation of our company. We can move on to the technical development process once we have nailed the visual appeal and ambiance.

Step 6: App Development

It's now time for the miracle of the development team. They'll take your ideas and designs and turn them into a working app with coding and integration.

The hotel booking app development requires efficient team collaboration and flawless communication. This phase can take longer to make your vision come to life.

After the development stage, the developers move on to the testing stage.

Step 7: Testing

Thorough app or software testing is an important step before launching your project into the market.

By thoroughly inspecting each and every feature of the app, we can detect and correct bugs and ensure we provide a smooth experience.

This involves several rounds of testing to ensure the app operates as it should. Once you are satisfied with the app's quality, we can move on to the deployment.

Step 8: Deployment

The last step is publishing your app to the general public.

This includes putting your app on the Apple App Store and uploading it to the Play Store for approval.

Although the development team will deal with the technicalities, know that this may take two weeks per platform.

Step 9: Maintenance & Support

The job is not yet done once you create a hotel booking app. Maintenance & Support are essential for maintaining your app's smooth operation and customer satisfaction.

You must keep updating your app with new features and patch bugs, and close any security loopholes regularly.

A support team is essential for responding to user queries, resolving issues, and obtaining valuable feedback. Hence, mobile app maintenance cost can add to the overall cost of development.

We set the base with this comprehensive guide to hotel booking app development.

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What Type of App To Choose For Your Business: iOS, Android, or Web?

There are several channels through which the hotel reservation system can be reached, some of the most well-known options being Web vs. Native vs. Hybrid Apps.

You do not have to build individual app interfaces for all these channels; you can use one or a combination of them.

1. Native App

Well-established businesses prefer native application development, a different development process for every channel.

This calls for a massive budget because the interface of every platform differs, and the developer has to put individual efforts into every one of them.

2. Website Application

Another alternative you have is a website specifically for desktop use. Most users find the web interface for booking accommodations more convenient and user-friendly than the website for accommodation bookings. Hence, the web application architecture is something that you can consider along with other options.

3. Android and iOS App

75% of users consider mobile applications appropriate for bookings in hotel rooms. Now, smartphone application users are split between Android and iOS, so opening an app on both platforms is usually required for wider reach.

4. Cross-Platform

You can invest in cross-platform application development to cater to iOS and Android users. It fits both operating systems, and customization is not required separately.

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What is the Cost of Hotel Booking App Development?

Hotel booking app development is a time-consuming and expensive process.

The hotel booking app development cost varies based on the liveliness, responsiveness, and range of features. In addition, the development process, development team location, and AI empowerment raise or lower the cost accordingly.

A company can invest around $10,000 to $50,000 in a simple hotel booking application.

Meanwhile, a complex version with additional complexities and upcoming technologies like AI recommendation and real-time tracking can accumulate app-making charges for around $50,000 and $250,000.

Factors Affecting the Cost of Hotel Booking App Development

1. App Platform Selection

Selecting the correct platform and device during hotel mobile app development is an extremely strategic decision as it is how you will approach your target market.

Selecting whether you want iOS, Android, or cross-platform app development for your hotel booking app development influences time as well as money.

The strategic selection of the platform allows you to enhance the app's market penetration and usability while keeping costs in mind.

2. UI/UX Design

a. Intuitive Design Impact

It has been proven that a well-designed interface can boost bookings by up to 200%. That is not so bad; excellent UI/UX design must guide users from search to confirmation without confusion.

b. Custom vs. Standard Design

Custom app designs are more expensive but make a great corporate image. Although the standard templates are cheap, the users may gain a similarity to the competitor apps.

3. Backend and Database Development

a. Infrastructure and Data Management

A solid backend can handle thousands of bookings simultaneously, while cloud databases keep your app running fast and trustworthy during peak booking times.

b. Cloud Hosting Costs

The monthly cloud services cost estimate is between $200 and $2,000. The costs change depending on the number of users, but master architecture ensures costs remain minimal.

4. API Integrations

APIs and other third-party implementations are utilized to enhance the user experience to be more seamless.

Social media apps, maps, GPS systems, and payment gateway integrations are some of the key examples of it. API integration can also significantly impact the budget.

Hence, selecting the right API mix that works best for your custom hotel booking system is imperative.

Balancing the right adaptation of third-party integration while considering the budget can ensure a budget-friendly and simplified user experience for your guests.

5. Security and Compliance

The hospitality management system's most critical job is ensuring that the customer's privacy is unbreakable.

Firm encryption and strong software are necessary for your booking reservation system to secure the safety and privacy of customer data.

Although it increases the budget, it is the key to establishing customers’ digital trust and a good brand reputation.

6. Location of the Development Team

Your hotel booking app's performance metrics are its performance and customer experience. These aspects can be greatly influenced by the skillset & experience of the team of frontend and backend developers you select.

The size and location of your selected team will determine the overall cost of developing a successful and competitive hotel booking application.

7. Quality Assurance and Testing

Exclusive testing will definitely do away with post-launch cost implications. Before release, our testing team executes all of the app benchmarks, ranging from booking and payment to app efficiency in high usage cases.

As a pre-release process, your app undergoes rigorous QA and testing. This includes bug fixing, quality testing, and repairing the upgrades if necessary.

All of these processes guarantee a smooth and smooth guest experience upon app launch and are conducted by quality assurance testers for expert conclusion.

8. App Maintenance and Updates

This involves the repair of particular bugs and accidental issues, the change of the operating system to impact SeS and cyber security modifications.

9. App Store Optimization Cost

Good app store optimization strategies take $1,500 – $3,000 at the beginning. Listing and regular keyword modification ensure your application is more apt to be pulled up in individuals' searches.

10. Digital Marketing

Hotel booking app development prices typically incorporate digital marketing costs ranging from $2,000 to $5,000 per month. This can include operating and maintaining display ads on multiple search engines and social media sites and product promotion via influencers.

List of the Best Hotel Booking Apps Globally

Over the years, there has been an influx of hotel booking applications in the market bringing revolutionary changes in the way people plan their trips now. Here we have compiled a list of top 10 hotel booking apps:

1. Booking.com
2. Hotels.com 
3. Expedia
4. Hotwire
5. HotelCombined
6. Trivago
7. Agoda
8. Airbnb
9. Hopper
10. HotelTonight

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The Tech Stack Required to Create a Hotel Booking App

Employing the new technology trends in the IT sector is the best choice to create a hotel booking app that surpasses the competition.

Here are the compulsory tech stacks of hotel app development:

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Monetization Model For Hotel Booking App Development

Here are some of the best app monetization strategies for hotel booking apps that you may consider:

1. Aggregator Model

This is the most popular monetization model based on simple logic. The application owner creates a list of all the surrounding applications and is connected to all the online reservation services.

The user launches the application and books a suitable place; they are redirected to the reservation platform website.

2. Merchant Model

This business model is based on the ethics in which the app owner is under an agreement with the hotel for the number of rooms they obtain at a discounted price.

The app owner can list these rooms and make margins for each booked room.

3. Advertising Model

This is a monetization model of business that will earn you money on your hotel booking application. Every time a user comes to your app, he or she gets redirected to the hotel website.

For each hotel booking and redirection, the app owner is compensated. An example of such a platform is Trip Advisor, which earns money by advertising various hotel websites on its app.

4. Dedicated Model

This model will be successful if you have a chain of well-known hotel businesses. Large brand names like Radisson and Hyatt enable customers to book reservations.

The platform may also accept special requests put forward by customers while they stay, like ordering an iron board, additional pillows, a cup of tea/coffee, or anything they want.

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How to Reduce the Cost of Hotel Booking App Development?

1. MVP Strategy

Start with the essentials that provide product value to your target consumers. Get started quicker, learn about your app usage from users, and introduce new features based on that knowledge. You can do so by initiating the minimum viable product (MVP) development.

2. Focus on the Key Elements

Begin with the necessary booking features. Luxury features, however, must be introduced after attaining more users, which would demand more functionality as money flows in.

3. Cost-Effective Strategies

If you acquire additional set payment gateways and mapping APIs, you can spend 40% less to create these hotel booking app features and functionalities.

How Can Arramton Infotech Help With Hotel Booking App Development?

With the growing demand for the Internet and mobile device technologies, the travel industry is not behind in adapting to the latest technologies.

You can trust iOS and Android app development professionals to take on your project, as they are familiar with various technological innovations.

Arramton Infotech is a leading custom iOS and Android app development company in Delhi that is an expert in developing apps for various industries, including travel and hospitality.

We can develop highly scalable, feature-rich applications with a great user interface and experience to retain your users for the long term.

The blend of our expertise and your concept can work wonders; we possess the caliber to assist you in taking your business to new heights.

Wrapping Up!

As a custom mobile app development company, we suggest that you define the objective that the hotel booking application must be able to provide. Then, appoint professionals with sufficient experience to collaborate with other developers in the travel industry to lower the hotel app development cost.

Therefore, as you set up your budget, keep in mind your long-term objectives. A well-constructed application financially benefits by way of good bookings and retained customers.

Hire us for your hotel booking app development; we will ensure you finish your job from thought to delivery. We provide tech-based solutions and execute them with an Agile framework for maximum efficacy.

Contact us for all your app development needs.

Frequently Asked Questions

Q. How Does a Hotel Booking Application Work?

Ans: The user begins by choosing the destination and time of arrival they want in the search bar. They may also choose categories and filters based on their needs and preferences. Subsequently, the user selects a booking from a given number of rooms to be booked. Each booking earns the service a commission. The service can also grant access to a paid subscription and incorporate marketing tools for hotels for a fee.

Q. Is hiring a freelance app developer or an app development company better?

Ans: Whether to hire a freelancer or an app development agency depends on your project size and preference. Freelancers are usually cheaper, but agencies provide a broad spectrum of expertise and resources, which could be more expensive in-app costs.

Q. How do you make a hotel booking app?

Ans: You have two options for building a hotel booking app. You can use a pre-made template or hire a professional app development company with expertise in travel and hospitality development projects to design and develop your application from scratch.

Q. What’s involved in the hotel booking app development process?

Ans: It's a many-step process beginning with idea brainstorming and market research. Followed by planning, designing the appearance and feel of the app, coding its features, and intensive testing before launch.