Gartner predicted that cloud-based technology would account for the bulk of new IT spend in 2016 and despite its wide scale adoption (more than 90% of enterprises and 52% of all SME use cloud services in the US) a recent article featured by Skift indicates that many travel companies are still not taking full advantage of “the cloud” with many still continuing to use legacy platforms that probably date back to the 1960s. “At a time when consumer demands change at a more rapid pace than ever before, it’s surprising that more travel industry players haven’t yet learned to harness cloud technology.” Amadeus.
Cloud computing has the potential cut 50% of operational costs, not to mention it’s flexibility allowing access anytime /anywhere, it’s constant data back ups and upgrades meaning no network meltdowns or detrimental loss of information. If used correctly and to its full ability, it can have a significant effect on your bottom line, helping to boost your revenue and allowing for greater automation and self-service options to guests, . “Cloud computing can help the travel industry innovate and accelerate in ways not possible with legacy infrastructures” – Rashesh Jethi, Amadeus. So, why are we still not convinced about switching to the cloud even though the industry has already gleaned a good picture of its primary benefits?
Even a survey conducted by Unisys and Microsoft on ‘Trends in Cloud Computing’ revealed that CIOs are intensively advocating and driving migration of their organizations’ IT resources to the cloud. Not surprisingly their reasons to change include;
- Cost reduction/transforming capital expenses to operating expenses – 63%
- Enabling computing capacity on demand – 62%
- Freeing IT staff to perform more high-value work – 51%
- Changing the perception of IT from cost centre to competitive advantage – 33%
You hear common concerns for why hotelier’s are resistant to making the switch, including “The cost is way too high”, “It’s not secure”, “It’s too much hassle to learn a new system”, “It’s not worth the cost”, “It will hurt the quality of service by encouraging guests to opt for self-service” etc. – If any of these sound familiar, check out our “Myths About a Cloud Hotel PMS, Debunked!” blog or a number of other resources we have focused on all things cloud related;
- Why Cloud Technology is a GAME CHANGER for Hospitality (Webinar)
- Why It’s Imperative Hotels Make the Jump to a Cloud PMS (Podcast)
- Why a Cloud PMS Beats Your Current Hotel PMS (Blog)
- How mobile technology will generate more revenue for your hotel (eBook)
With a cloud based PMS system, not only are there major monetary savings to be had along with greater operational efficiencies, but hoteliers have the ability to deliver a more personalized service, resulting in increased customer loyalty and guest satisfaction. If your preference is to keep with your existing legacy system, be prepared to miss out on all the benefits new tech has to offer.
Maybe it’s time to get on board!