SaaS PMS: A better Option for Hotels Economically
Technology has become critical to attracting and retaining hotel guests, and today that means investing in a wide range of solutions that create immediate and personal engagement. However a huge consideration for any hotel is cost and with many unavoidable costs and tight margins, many hotels struggle with the decision to invest in new technology for their hotel. However, with a SaaS PMS the decision to invest should no longer be so hard – here’s why;
Low Upfront Costs. With cloud, the main and undeniable advantage is the little to no upfront investment cost. There is no need for expensive on-site hardware and software, no need for on-site servers and their cooling equipment, network, maintenance, data backups and storage capacity!
With cloud computing a service provider takes over complete asset management and as a consequence reduces the overall cost of ownership. Instead of purchasing hardware and software outright, hoteliers practically rent computing power allowing them to replace long-term investment in hardware and software with much more bearable monthly operational costs. Which leads us nicely to our next point…
No Lengthy Contracts. With a SaaS based PMS, hotels subsequently don’t need to buy software licenses to use the software or sign any lengthy contracts, they simply subscribe or ”rent” the software over a period of time like any other utility. Besides making savings, other advantages to moving to a subscription model mean that all stresses of maintenance and compliance are on the vendor’s shoulders and hotels can choose to go with best service provider and switch providers anytime without any additional cost!
Automatic, free, updates! The beauty of a cloud-based system is really there is no such thing as maintenance well at least not on your part anyway. All the responsibility falls on the cloud vendor. They take care of all technical resources and system maintenance, from software updates to top-level data protection and backup. And to top it off there are no recurring upgrade costs to worry about either because they are completely automatic – you are always logged into the latest version!
By adopting and implementing a SaaS PMS, hotels see substantial soft and hard cost savings. Within the SaaS model, everything is combined into an all-inclusive fee per room per month. No more maintenance fee surprises or extra support charges. The investment is also highly manageable from a budgetary standpoint due to the predictable nature of the cost structure.
By eliminating upfront costs, hotels have a great opportunity to shift their IT budget from capital expense to operational expense and allocate precious time and capital towards guest services and other important business decisions.
Have you thought about moving yet?
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- Did you know! Gartner, the leading global IT research firm, estimates that the annual cost of owning and managing software applications can be as much as four times the cost of the initial purchase.
- Did you know!. Companies can spend up to 75% of their total IT budget just to maintain and run existing systems and infrastructure!