The advantages of using a Cloud-based SaaS Property Management System for hotels

Jan 25, 2024 | Blog

Lower costs. Less hardware. More flexibility. A Cloud-based SaaS PMS modernises your hotel operations, processes and guest experiences.

In the ever-evolving landscape of hospitality, hotels need to seek modern solutions to streamline operations, enhance the guest experience, and boost their overall efficiency to stay ahead of the competition. 

One solution which has gained prominence, and is essential for business today, is the adoption of Cloud-based Software as a Service (SaaS) Property Management Systems. This technology delivers a range of benefits and advantages that transform the way hotels manage their day-to-day operations and enhance longer-term financial benefits. These benefits include:

 

OpEx vs CapEx

Traditional PMSs often involve a significant upfront investment in hardware, software licences and IT infrastructure – all of which is categorised as Capital Expenditure (CapEx). As such, it competes for funds with large projects such as bedroom renovations, building new facilities and upgrading kitchen equipment. 

In contrast, Cloud-based SaaS PMS operates on a subscription model, shifting the financial burden from capital to Operational Expenditure (OpEx). This allows hotels to allocate resources more efficiently, reducing the financial strain associated with large upfront costs. Cloud-based SaaS systems also share hardware costs, meaning the cost is often lower compared to a traditional CapEx PMS model. 

OpEx models provide greater financial flexibility, which is especially beneficial to independent hotels and small hotel groups, as well as any property operating on a tight budget. 

 

Reduced onsite equipment

With a traditional PMS, hotels are responsible for maintaining servers, backups, and IT staff are needed to ensure the system runs smoothly and to manage often-cumbersome upgrade processes. As well as requiring significant physical space, this style of PMS also entails ongoing maintenance costs. 

A Cloud-based SaaS PMS eliminates the need for on-site hardware. The systems are hosted off-site by the service provider, reducing the burden on hotels and resulting in a leaner, more efficient IT setup. It also allows hotels to allocate physical space for revenue generating purposes or back-of-house staff, rather than server rooms. 

 

Modular Flexibility

A Cloud-based SaaS PMS offers modular flexibility, meaning hotels can choose and pay for just the features they need. This adaptability ensures that a hotel’s PMS aligns precisely with its unique operational requirements. 

For example, a boutique hotel might focus on core features like reservations, check-in, and billing, while a larger resort may need a comprehensive suite that includes spa and activity scheduling, as well as access for staff spread across a wide site. 

Modular flexibility of a Cloud-based SaaS PMS reduces both financial waste and complexity, streamlining the PMS for optimal efficiency.  

at the restaurant

Scalability for multiple locations

For hotel groups and hospitality management companies, the ability to scale a PMS across multiple locations is a critical advantage. Cloud-based systems are designed to accommodate this need seamlessly. 

With a centralised PMS, hotels can manage and monitor multiple properties from a single dashboard, simplifying administrative tasks and enhancing the overall guest experience. Whether it’s a multinational hotel chain or a smaller group of boutique hotels, the ability to scale PMS solutions across different properties offers consistency and efficiency in operations. 

 

Integration and Data Accessibility

A Cloud-based SaaS PMS can easily integrate with other software applications such as accounting, point-of-sale systems, and online booking platforms. This integration streamlines data flow and reduces manual input, preventing errors and saving time. Furthermore, Cloud-based systems are accessible from anywhere with an internet connection, enabling hotel staff to manage operations remotely or spread across a wide site, particularly important for resorts where your team could be on the beach, in a main reception building, or servicing a room tucked away in a far corner of your property. Remote accessibility can be crucial in emergency situations, when management may need to oversee operations from a distance. 

Automatic updates and maintenance

Cloud-based systems enable continual software updates and handle maintenance on behalf of the hotel, ensuring your PMS remains up-to-date with the latest features and security patches. Seamlessly conducted remotely, Cloud-based updates remove the need for staff to perform time-consuming and potentially disruptive manual updates, leaving your team to focus on serving guests rather than managing software. 

Enhanced data security

Data security is a paramount concern for the hospitality industry, given the sensitive nature of guest information. Cloud-based SaaS PMS providers typically invest heavily in security measures and data protection, ensuring guest data is safe from breaches. Regular backups and robust security protocols safeguard critical information, providing peace of mind for both hotel management and guests. 

Team expertise

IT staff can be particularly challenging to find in the hospitality industry, especially for independent and small portfolio properties. Onsite systems require a lot of attention, yet with a Cloud PMS, your IT team can focus on optimising performance, identifying new partners and benefiting further from the systems across the business. Instead of tackling small fires, the team can put their efforts into transforming business with technology. 

woman at the computer

Conclusion

The adoption of a Cloud-based SaaS Property Management System is transforming the way hotels operate, by offering financial flexibility, reducing onsite hardware requirements, providing modular flexibility, and supporting scalability for hotel groups. 

With enhanced data security, automatic updates and easy integration with other vital hotel technology systems, a Cloud-based SaaS PMS helps hotels streamline operations, improve the guest experience, and position themselves competitively in the rapidly evolving hospitality industry. Whether it’s a small boutique hotel or a sprawling countryside or beachside resort, a Cloud-based SaaS PMS can revolutionise the way hoteliers manage their properties and engage with guests.  

Contact us to find out more about how Sihot’s Cloud-based SaaS PMS can help your hotel.