Hoteliers still utilizing an on premise-based property management system are missing out on an opportunity. Cloud-based property management systems (PMS), such as the SkyTouch Hotel OS®, have reinvented how hotels interact with data, giving them more control, options and flexibility. Cloud-based systems can also help decrease costs across multiple areas within the hotel.

Here’s how these two approaches to running your hotel differ:

The Essential Difference
A premise-based system has all the hardware at the property level while a cloud-based system stores information in a remote database where you’re able to get to that data securely, from any location that has internet access. Hoteliers with premise-based systems are tethered to the hotel for all operations through the system and must manually upgrade the PMS any time there are changes to the product, or pay someone to do it.

Cloud-based systems utilize the internet to connect the hotel and the PMS, opening up opportunities to work remotely, and more efficiently. Plus, a cloud-based PMS typically has the latest software and provides connectivity in ways not possible with a premise based PMS. No expensive hardware is needed at the hotel. Instead any computer or laptop device can connect to the hotel’s PMS from anywhere in the world that has an internet connection.

“A cloud-based system could be perceived as unchartered territory, and some small independent properties might not know what they’re missing,” said Kenneth Rafferty, General Manager of the 21room Andrew Jackson Hotel and 80-room Hotel St. Pierre, both in New Orleans. “Once people are exposed to the system’s incredible ease, clean user interface and monetary benefits, they’ll be sold on the product.”

The Pricing Difference

A cloud-based PMS traditionally operates on a subscription basis after a one-time set up charge. This eliminates any cost related surprises and fees are typically based on the number of rooms within the hotel.

Premise-based systems typically require licensing fees based on the number of terminals being used, as well as maintenance contracts. Plus, there are associated hardware and infrastructure costs, as well as the possibility of needing to hire IT professionals to fix and problem solve certain issues.

The Productivity Difference

A premise-based PMS requires all personnel to utilize the system while at the hotel. For a general manager on the run, that can be confining. It also means more hours spent at the hotel working on reports and keeping the hotel operating.

A cloud-based system is mobile, giving hoteliers access to hundreds of reporting features remotely. That means the ability to get work done from anywhere, even at their kids’ soccer game.

The Security Difference

With a cloud-based system, security concerns lessen. It’s no longer your concern, it’s the responsibility of the PMS provider. SkyTouch Technology, for example, works to ensure and prevent hackers from stealing valuable guest information. Plus, they have redundancies built in to make sure the system is up and running securely close to 100% of the time.

Premise-based systems require that the hotelier take all the risk. Hoteliers running these antiquated systems must worry about firewalls, backup servers and constant power. Plus, the servers must be locked away with access grated to only specific people. And if the server goes down, the hotel’s ability to function properly could be in danger.

The cloud is helping level the playing field for independent hotel owners and select service branded hotels. But any hotel using a system such as the SkyTouch Hotel OS®, may find benefit by moving into the modern age by eliminating their dependence on an outdated premise based PMS.