TIn the world of hospitality, hotels are choosing a property management system (PMS) to automate operations. It is no longer something only the biggest hotel chains use – it has become necessary in the industry to keep data accurate and all functions running smoothly. But these are not the only advantages of a hotel PMS – it can offer vital data analytics for business decisions and help your staff manage everything and access necessary information in one place. It is akin to selecting an essential aspect of your hotel's operations.
Choosing between two types of property management systems
Property management software empowers hotel staff to seamlessly manage day-to-day operations, reservations, room allocations, check-ins and check-outs, billing, housekeeping, inventory, accounting and staff reporting. It improves guest experiences, optimizes revenue and enhances overall operational efficiency.
Hoteliers can choose between two types of PMS: an on-site traditional hotel PMS and a Cloud-based hotel property management software. You are choosing between two prominent PMS options: the robust on-premise system and the dynamic cloud-based solution. Making the right choice can redefine your business's success!
On-premise PMS:
- Local hosting: It is installed and hosted on the hotel's servers and allows the IT team to control the hardware and software aspects directly.
- High maintenance: Hotels bear maintenance and management responsibility, which often translates to significant costs and resources.
- Accessibility challenges: Real-time data access depends heavily on the hotel's network infrastructure.
- Cost considerations: There are many essential spends in terms of long-term licensing fees and ongoing costs for maintenance and updates.
- Slow upgrades: Implementation is time-consuming, disrupting hotel operations, and updates can be expensive.
Cloud PMS:
- Remote hosting: Hosted on off-site servers, all the modules are accessible via the internet and managed by third-party vendors.
- Low/no maintenance: Third-party vendors handle all hosting and maintenance activities, eliminating the work for the hotels.
- Easy remote access from anywhere: Hoteliers and staff can access the system from anywhere with an internet connection.
- Cost efficiency: Hotels can choose subscription-based pricing, including all the updates and custom modules based on needs, and hotels can cancel anytime.
- Fast upgrades: The installation and training are swift, and regular updates are provided at no extra cost.
The choice of PMS can impact hotel operations
The choice between on-premise and cloud PMS significantly impacts hotel staff's performance, integrations, marketing efforts, guest experiences, and security measures:
Staff performance: An on-premise system will tie the staff to the property and depend on the on-site premises for all daily operations. Cloud PMS allows remote access, boosting productivity.
Integrations: Cloud PMS seamlessly integrates with different channel managers and web booking engines, streamlining bookings and improving revenue annually.
Efficient marketing: Cloud PMS offers integration with tools and software provided by different vendors to design targeted marketing campaigns.
Enhanced guest experiences: Through a cloud PMS, it is possible to manage contactless services via smartphones, which is impossible with on-site Hotel software .
Security concerns: With an on-premise PMS, there are security concerns and the need for constant monitoring and updates, but cloud providers prioritize robust security measures, and you can ensure your guests' data safety by choosing a cloud PMS that is PCI DSS certified/compliant.
The choice between on-premise and cloud PMS depends on your hotel's unique needs. For large hotel chains with ample capital, on-premise PMS might align with their resources, though they would still like to consider the many benefits a cloud PMS offers. In contrast, smaller hotels and resorts prioritize cost-effectiveness, making cloud PMS their preferred choice. The proper PMS can enhance operational excellence, guest happiness and growth in the hospitality industry. Choose wisely because an investment in a hotel PMS should confer benefits that direct your hotel's upward growth and revenue.
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