Cloud or On-Premises Hotel PMS: What Works Best for Hotels?
The Hotel Property Management System (PMS) has been around since the 1970s. In the past, hotels used on-premises PMS systems that had limited features and couldn't meet the growing demands of the hotel industry. Over the years, cloud-based PMS systems have come into play, offering more benefits for hotels. In this blog, we will compare cloud-based and on-premises PMS systems and explain why cloud technology is now the better option for most hotels.
1. Cost Comparison: Cloud vs. On-Premises PMS
The first thing most hoteliers consider when choosing a PMS is cost. Let’s break down the costs for both systems:
How Cloud PMS Saves Costs:
- On-Premises PMS requires big investments in hardware, servers, and IT staff. You also need to pay for annual maintenance and cybersecurity to keep everything safe.
- Cloud PMS uses a subscription model, which means you only pay for what you need. You can pause the subscription during off-seasons, which gives you more flexibility and savings.
2. Speed of Implementation: Cloud PMS Wins
Time-to-market is very important for hotels that want to start managing bookings and guests quickly. Let’s compare the setup times for both systems:
Why Cloud PMS is Faster:
- On-premises systems take longer to set up because you need to install servers and hardware. For a small hotel, it can take 2-4 weeks to get everything running.
- Cloud PMS can be up and running in 48 hours, meaning you can start managing bookings right away and begin selling rooms much faster.
3. Improving Staff Performance: Mobility and Accessibility
In today’s hotel business, flexibility and mobility are key to staff performance. Here's how each system compares:
Why Cloud PMS Improves Staff Performance:
- On-premises systems only let staff access the system on-site, which makes it harder to manage operations remotely.
- Cloud PMS lets staff access hotel operations via mobile devices from anywhere, whether they’re on property or off. This boosts productivity and allows staff to work more efficiently.
4. Driving More Sales: Cloud PMS Integration with Sales Channels
More guests are booking online now, so having a PMS that connects with online platforms is important. Let’s compare how each system handles sales:
How Cloud PMS Helps Sell More:
- On-premises PMS systems often don’t connect automatically to OTAs and booking platforms. This leads to manual updates, mismatches, and missed bookings.
- Cloud PMS integrates easily with channel managers and web booking engines, allowing real-time updates to availability and pricing. This helps increase direct bookings and reduces the chance of overbooking.
5. Marketing Efficiency: Cloud PMS vs. CRM Integration
Good marketing needs accurate data and easy access to guest information. Here’s how each system compares:
How Cloud PMS Enhances Marketing:
- On-premises PMS systems don’t always integrate well with CRM systems, which makes it harder to personalize marketing efforts.
- Cloud PMS systems integrate directly with CRM solutions, making it easier to segment guest data and run targeted marketing campaigns that increase guest engagement and boost revenue.
6. Boosting Guest Experience: Cloud PMS Enables Contactless Services
Guests today expect more contactless services like mobile check-ins, digital room keys, and online requests. Here’s how each system compares:
Why Cloud PMS Elevates Guest Experience:
- On-premises systems can’t offer the contactless services that guests expect, such as checking in through their mobile phones or using a digital room key.
- Cloud PMS allows for complete mobile integration, meaning guests can check-in, access their rooms, and make requests all through their smartphones, giving them a smooth, contact-free experience.
Hotelogix: The Cloud PMS Solution for Modern Hotels
Conclusion: Why Cloud PMS is the Future of Hotel Management
Cloud-based PMS systems provide hoteliers with more advantages than traditional on-premises systems. From cost savings and faster implementation to seamless OTA integrations and CRM connections, the cloud allows for greater flexibility and efficiency. As cloud technology continues to evolve, hotels can use it to improve guest experiences, increase online sales, and streamline operations. By adopting a cloud-based PMS like Hotelogix, hotels can stay competitive and deliver top-notch service to their guests.
Key Takeaways:
- Cloud PMS is more cost-effective, faster to implement, and provides automatic updates without extra fees.
- On-premises PMS requires a large upfront investment and ongoing maintenance.
- Cloud systems help boost guest experience, increase direct bookings, and enable contactless services.
- Hotelogix provides a cloud PMS solution with seamless OTA integrations, PMS integrations, and mobile functionalities.