Cloud-based hotel management software: Definition and how it works

Generally speaking, there are two types of property management software solutions that hotels can use to manage their operations. The first is a traditional locally installed PMS that runs on a hotel’s servers. The second, which increasing numbers of hotels are now using, is cloud-based hotel management software.

If you are one of the few properties still using a locally installed PMS then you might be wondering if now is the time to take the leap and update your tech stack.

Let’s take a look at some of the advantages of using cloud-based hotel management software to help you decide.

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What is cloud-based hotel management software?

Although locally installed property management systems were seen as a big step up from pen-and-paper records in their day, they are now generally perceived as being outdated. They can also be expensive to install and require a lot of maintenance. To overcome these pain points, the market has evolved towards cloud-based hotel management software.

Cloud-based hotel management software is a relatively new form of technology, although hotels around the world have been quick to adapt to digitalisation already. Essentially, a cloud system is where, instead of storing all your guest data and analytics on an on-premises computer or server, you store it on the cloud. In other words, you save it online using secure, remote servers. This gives you access to a much more flexible and intuitive solution for your property management system. Making the switch to cloud-based hotel management software can streamline and automate your internal processes and greatly reduce your workload. 

What are the benefits of using it?

So, what does that do, exactly? How can it benefit your hotel?

Here are three major benefits of switching to a cloud-based PMS.

You can access your data from anywhere

One of the biggest benefits of cloud-based hotel management software is that your data is stored on a secure, remote server. This means that you can access your data from anywhere, using any device, at any time, provided you have an internet connection. And this is very valuable in the modern, hyperconnected world. Managers don’t have to be present at the hotel 100% of the time. Instead, they can monitor their teams, check room inventory, track availability and reservations, access guest information, and review all total revenue data analytics regardless of whether they are on-site or at another location at the hotel. This is much better than being restricted to the front desk, especially if an issue arises. 

Enhanced security and less risk of losing your data

Cloud-based hotel management software gives you increased security. For one thing, all data is encrypted and safely stored behind multiple layers of security including firewalls and authentication gateways. You also get access to regular automated security updates and data is backed up so it can be easily recovered if needed. This is essential as hotels handle a great deal of sensitive and confidential guest data. Including names, addresses, and credit card details. 

In contrast, with a traditional, on-site PMS you get limited security updates which leaves your data vulnerable to theft, unauthorised access, and hacking. Plus, when all your data is stored using an on-site server, there is a risk that data could be lost as a result of fire, power outages, hardware failures, high temperatures, natural disasters, or viruses.

Cloud-based hotel management software is cost-effective

The third major benefit of using cloud-based hotel management software is that it is cost-effective. With a traditional property management system, data needs to be stored on on-site servers. Servers can be very expensive to buy, and they need regular maintenance and upgrades over time. Plus, you have to account for inflated licensing fees and the cost of utilities for running your servers and hardware. All this adds up.

With cloud-based hotel management software, there is no need to purchase any servers or additional hardware as everything is stored online. You simply pay for the storage capacity that you need for your data requirements. Plus, cloud-based hotel management software is usually much cheaper than a traditional PMS in terms of subscriptions, and it’s far more intuitive so you save on training costs, too. 

All this saves you a great deal of money that you can instead funnel into your revenue management strategies and marketing efforts so that you can attract more business to your hotel. 

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