As part of our ongoing vertical series on vertical SaaS and embedded finance, we profile the accommodation property management segment, which is relatively mature in embedded payments acceptance but offers significant growth opportunities across broader embedded finance.

Figure 1: Vertical Definition

Figure 2: Vertical Spend

Figure 3: Vertical Dynamics

Figure 4: Leading Software Platform

Figure 5: Embedded Fintech Maturity

General Commentary & Highlights

• Hotels are the largest and highest-margin core segment, with standardized booking and revenue management processes that are already widely software-enabled.
• Overall vertical spend is robust, with modest growth (low single digits); STVR and outdoor stays are gaining popularity, driving demand for specialized property-management software.
  
• Common software in this vertical is property management software (PMS) and channel managers.
• Software penetration is very high among hotels and STVRs. Those that are unpenetrated are usually boutique hotels or property owners with less than five properties.
• Online payments and FX services are highly embedded in this vertical with emerging embedded fintech products such as gift card issuing, consumer financing, business lending, and insurance.

Please do not hesitate to contact Peter Taylor at Peter@FlagshipAP.com with comments and questions.