Travelers are increasingly using mobile devices/digital gadgets to augment their traveling and vacation experience. They do everything from researching destinations to booking hotels and even giving online reviews and ratings on their hand held devices. But it is not just travelers that can benefit from using advanced technology. Over the last few years, it has become very evident to hotel owners that investing in cloud-based hotel management software is a sure way to transform their businesses. This is because on-premise PMS solutions have not advanced enough to accommodate the needs of the present-day technological requirements of hotels, especially large hotel chains. It’s time hoteliers also catch up with its target audience and stay ahead of its competition.
Your hotel software is unquestionably the heart of your business. Whenever it comes to switching your software/solution or implementing an absolute new one, you always think twice (or more) about which one to go with.
Especially, when the debate is about two types of software – Cloud and On-premise. Hence, to put an end to this debate; here we are sharing this blog discussing the features of both types to let you decide which one is better for your enterprise hotel.
Clue: More than 92% of hoteliers are already using Cloud solutions.
Let’s dig deeper to understand why?
1. Cloud PMS requires minimum infrastructure Vs a On-Premise PMS
One of the biggest advantages of a cloud PMS is it does not need any special or expensive installation or equipment. All it takes is a browser and a good internet connection.
Each and every function is executed and the data & information is stored on the cloud. So, cloud PMS does not need any IT personnel or department for maintenance.
On the other hand, an On-Premise PMS needs comprehensive and expensive infrastructure and technological requirements. Further, you need to shell out more money to buy the costly hardware, local servers, and different licenses for each user.
2. Faster implementation and Go-live
Hotels can bring new properties/chains online more quickly. Cloud solutions go-live and start operations faster as compared with on-premise solutions. Migration of piles of data from old systems and integration with other third-party systems is very convenient and fast in the case of cloud PMS vis-à-vis legacy systems.
Updating new enhancements is quite a cake walk; new capabilities help deliver great guest experience, improve operating efficiency, and enhance overall employee productivity without impacting current systems.
3. Instant ROI with Cloud PMS
Cloud PMS offers instant ROI with the host of benefits its offer. You can practice dynamic pricing to increase your occupancy and profitability which is not possible with a traditional PMS. Further, using a Cloud PMS you can improve your distribution capabilities and add as many platforms. The operational efficiency a cloud PMS offers is far beyond any on-premise PMS. Obviously, as a result you are able to serve your guests better and a high return on your investments.
4. Data Security is not a concern with Cloud PMS
Data security is a promise Cloud PMS solution comes with. They have the capabilities to implement robust security measures making Cloud systems a much safer option than On-premise versions. Hotels using On- premise PMS solutions have to install firewalls and anti-virus software. And yet the security is compromised. With increasing cyberattacks now, upgrading hotel IT security and protecting guest data are of paramount importance. Neglecting this aspect could lead to exorbitant litigation, but also cause irreparable damage to your hotel reputation.
5. Cloud offers on the go accessibility
Cloud solutions offer on the go accessibility with device agnostic login from anywhere and anytime. This kind of login and access is not possible with an On-premise solution. On-premise solutions can only be accessed on computers that have installed licensed software. Additionally, installing it in the new terminal or computer will cost you extra.
6. Flexible pricing with Cloud PMS
Most of the Cloud-based systems are available with a subscription-based pricing model. The subscription period can be monthly, quarterly, or yearly. However, On-Premise PMS solutions are capital intensive and come with heavy cost of installation, license fee, significant hardware & IT infrastructure costs along with yearly maintenance cost.
Cloud-based systems are managed by the external vendor and are easy to use and maintain as updates, and patches are done automatically, saving time and money.
Uptime of almost 100% is guaranteed with cloud-based solutions. It enables you to benefit from the best competences PMS solution offers without prolonged and disruptive update routines as in case of traditional solutions.
7. Cloud PMS offers Easy Integration
A Cloud PMS solution can be easily integrated with other hotel channel managers and OTAs because of common web standards and open application program interfaces (APIs). It is this seamless integration with other systems that improves usability and efficiency of Cloud PMS. On the other hand, integrating with On-premise solutions is complex and time taking.
8. Cloud PMS are easy to learn and use
UX/UI are important elements of a cloud based solution. They are easy to understand and use as compared to legacy or on-premise solutions. Even non-technical users can easily understand and use Clod PMS with simple training.
9. Easy upgrades with Cloud solutions
Cloud solutions can be easily upgraded remotely by vendors. New updates can be remotely installed easily. However, PMS solutions do not have adequate room to bring in new improvements in their applications due to hard coding.
10. Increase in RevPAR and ADR
Hotels can effectively manage their inventory rates and allocation of rooms to various distribution channels, helping to maximize occupancy, rates, and revenue with a cloud-based solution. With cloud-based PMS, hoteliers get a single customer master with comprehensive guest profiles that enables them to offer personalized guest experiences. Such a feature is not available with a traditional system.
11. Direct impact on revenue
Though already mentioned in this article, a cloud PMS helps you practice dynamic pricing without any issues leading to increased revenues, especially in case of low demands. A Cloud PMS, helps generate increased revenue with more optimization even in case of low demand. Further, you get an enhanced market reach because of integration with channel managers and OTAs for real-time distribution.
A Cloud PMS helps improve your online reputation; which has a direct correlation with the price you can charge. There by increasing your bottom line.
Besides, revenue also increases because of cost savings that happen because of flexible pricing or subscription-based pricing model.
12. Detailed reporting and faster decision making
A cloud PMS offers convenience of consolidated reports of all your hotel chains present in different locations. No more manual reports of booking & reservations, inventory and other operations of the hotel.
Cloud PMS helps make your hotel operations efficient, smooth and fast with such a tool. Obviously, it pleases your guests and improves your guest experience and also has a significant positive impact on your reviews and ratings.
To Summarize…
Hotels can now say goodbye to big server rooms, wires and all the hassle that comes with it. No cooling system, no big team working around the clock to ensure that downtimes are controlled. What you need is a favourable internet connection and a device(mobile, laptop, tablet) to access the web application.
The server’s maintenance is no longer your headache as web server providers have a team trained to do just that. Timely backups of data and security protocols in place, your guest data is guaranteed the highest grade of safety. In the absence of all the hardware, the AMC you pay is now non-existent and the stress of possible hardware failure or upgrade is permanently eliminated.
The introduction of cloud technology has revolutionized the way businesses operate across the globe. Hospitality industry is a great beneficiary of the same. From safe and easily integrated hotel software to increased flexibility, the introduction of cloud-based software has benefited hotels in more ways one can imagine.
In the present era of ever evolving technology, hotel owners need software that helps to run their everyday operations efficiently. Cloud PMS delivers service that provides a quick return on investment, reduces operational costs, and improves competitive advantage. Further, increased reliability and security are ensured. Hence, in today’s time cloud-based hotel PMS solution is binding for the success of a hotel business especially enterprise hotels.
