Today, hotels of all sizes and categories are facing unprecedented challenges, including higher guest expectations, tighter competition, and a rapidly evolving technology landscape. And that's why manual or outdated property management approaches cannot keep pace. This is why adoption has accelerated globally. According to recent industry reports, the cloud hotel PMS market is projected to reach USD 9.35 billion by 2033, growing at a CAGR of 9% from 2025. Today, about 41% of small and independent hotels, and about 53% of hotel groups or chains, have already migrated to cloud-based PMS hotel software, leaving behind legacy systems or manual operations.
For hoteliers still thinking about making the move to the cloud, the evidence is clear - cloud-based Hotel PMS, also referred to as a hotel management system, is no longer a "good-to-have"—it is now a strategic necessity for every hotel, small, independent, boutique, or event hotel chains and groups.
The Pitfalls of Legacy or On-Premises PMS Systems
Hotels still tethered to on-premises PMS systems face recurring roadblocks that limit growth and efficiency. Some of the most pressing challenges include:
- Approximately 39% of hotels struggle to integrate their legacy PMS software with third-party solutions, which limits their ability to scale and innovate.
- Around 24% of hotels experience staff training gaps, as older systems lack intuitive interfaces and modern workflows.
- Nearly 19% hotels report cybersecurity concerns, with on-premises hotel management systems often lacking robust data protection protocols.
- About 30% of hotel groups/chains can't centralize operations and experience hurdles while adding and going live with new properties. Moreover, the IT overhead costs become costly.
The crux is this - for small hotels, these issues often lead to lost revenue opportunities and strained guest relationships. For larger chains, the lack of centralized visibility makes it difficult to optimize performance across properties.
Cloud Pms Software: Tangible Benefits That Drive Growth
Hotels that have already upgraded to cloud PMS hotel software are already reaping measurable benefits across both guest-facing and back-office operations:
- 42% of hotels report significant boost in operational efficiency with process automation, real-time and anytime/anywhere data access, and seamless third-party integrations.
- 31% of hotels see enhanced guest satisfaction, with faster check-ins and integration with guest-facing Mobile Apps.
- 26% of hotel chains/groups experience improved revenue management, leveraging dynamic pricing and centralized analytics across the chain.
This means that, regardless of size, whether it’s a boutique property, a large chain, or a group, hotels can gain immediate competitive advantages with the right hotel property management software.
Why You Should Act Now
As more competitors embrace cloud Hotel PMS, hotels that remain on manual or on-premises systems risk lagging in efficiency, guest service standards, and profitability. The global momentum toward cloud-based Hotel PMS is undeniable, and the benefits are too compelling to ignore.