A Buyer’s Guide: SaaS PMS Vs. Traditional PMS For Hotels
More and more software is cloud-based; Cisco has predicted that more than four-fifths of all data center traffic— 83% —will be based in the cloud within the next three years. And it’s not hard to see why. Cloud-based software offers significant benefits, revolutionizing the way companies run their businesses and interact with their customers.
While the hotel industry was always said to lag behind when it comes to the latest tech innovations, it’s now thought to be at “a tipping point in terms of cloud adoption”, with hoteliers expected to invest 7 – 8% more in cloud technology over the next 2 to 3 years. For hotels, a SaaS based PMS solution can provide multiple benefits to the hotelier i.e.
Low cost: With a SaaS PMS there is no significant outlay for large hardware purchases or IT infrastructure, and no large upfront licence fees. Cloud-based software trades the large upfront costs associated with on-premise software for a subscription-based pay-as-you-go payment option, paid monthly or annually. Perpetual licensing offered by on-premise solutions is thought to cost around three times more than that of SaaS licensing and a Frost & Sullivan study showed that business could save 50% with cloud computing solutions!
Security: With on premise solutions, it’s up to you to manage your own data security, access, backup’s etc. However with a SaaS solution, your data is stored securely and remotely instead of in an on-site physical location. All your data is mirrored and backed-up continuously with your provider managing the whole process.
Upgrades & Maintenance: Legacy PMS systems are prone to on-going repairs (Companies can spend up to 75% of their total IT budget just to maintain and run existing systems and infrastructure!) and upgrades are known for their headaches. However, with a SaaS PMS solution there is no longer a need to install or maintain on-site equipment and hardware. All upgrades to servers, software, databases, applications etc. are managed and taken care of by the vendor at no additional cost and with very little, if any, impact on performance.
Scalability & Integrations: With an onsite PMS, scaling is often dependant on cost and when it comes to integrations or adding customized bits on, it usually results in an extremely expensive piece of software that is more cumbersome and incredibly inefficient system. However on the flip side, with a SaaS PMS solution you have the flexibility to scale business up and down, in line with business needs, easily connected to other software applications and to integrate with existing IT architecture.
Flexible: Cloud has simplified hotel operations hugely. With a SaaS PMS, you have the flexibility to access the system 24/7/265 allowing you to work anytime, anywhere – making it much more convenient than traditional servers. Bookings, check-ins and housekeeping are always at your fingertips.
Enhance the Guest Experience: We’re a nation of smartphone users and have come to expect our daily interactions with business and brands via screens and devices. Why is this important? With a cloud-based PMS solution, guests and staff can interact with the system, even when they are not in the hotel – something a traditional PMS cannot offer. Not only does this have the benefit of increased interactivity with guests, facilitates the deliver a real-time, personalized guest experience but also and a better customer experience but it provides the hotel with (revenue) opportunities to promote in house and ancillary services.
Being tech savvy is thus no longer an option but a necessity to survive in the intensely competitive hotel industry. Cloud computing is both revolutionary and reliable. By moving critical business systems, such as the PMS to the cloud, hotels can ensure they are prepared for the next wave of IT trends by creating a flexible technology environment that is efficient, adaptable and more cost effective.
Get a sense of how your hotel would improve its operations with a demo of our hotel PMS software.