The average property management system will automate a property’s operational processes, from front desk to back office. It will also manage the reservations, rates and payment while ensuring greater efficiency.
More importantly, a quality PMS system will and should operate according to your specific requirements.
The PMS system should reflect the hoteliers and vacation rentals’ changing demands. Lack of such flexibility and high costs of on-premise PMS systems caused a decrease in competitiveness, especially compared to cloud-based solutions.
Cloud computing is only partly transforming hospitality services. Combined with the Internet of Everything, it irreversibly influences both service quality and guest experience.
The Internet of Everything
The Internet of Things and the Internet of Everything refer to everyday objects’ ability to connect to the Internet. Such services are enhanced by electronics, enabling data collection and a higher user experience.
Concerning hospitality, IoT enables a more personalized stay. Guests could update their room temperature before arrival and unlock the room or do the self-check-in. Moreover, hoteliers and vacation rentals could improve future offers based on previously collected data.
What has that to do with the PMS system?
Everything 😊
In general, cloud solutions are hosted in the cloud, off-premises. It’s a real-time virtual environment with high flexibility and no storage limit. Luckily, migrating applications on the cloud did not bypass PMS systems.
In an ever-changing industry like hospitality, flexibility created by cloud-based PMS system characteristics is priceless.
On-premise VS cloud-based PMS system
Lack of integration with external providers of on-premise PMS will doom your guests to less innovative service. Being physically installed on every computer from which the system will be accessed, on-premise PMS is a security concern. What happens in case of breaking in? Fire or flood? If you run out of storage space? If steps for the worst-case scenarios are not clearly defined, and the backup is not regular, these sudden but possible situations will become an endless nightmare.
There is no need to depend on outside factors while doing business anymore; cloud-based solutions are up.
Technical Requirements and Maintenance
On-premise systems require more equipment than cloud systems.
The data servers, additional/backup servers depending on the property’s size, a terminal server for other location access, workstations (computers) with a compatible operating system, and more are sometimes needed. Such requirements indicate higher expenses before the PMS is even implemented. Costs will grow due to the need for maintenance and in-house IT expertise.
All you need for the cloud-based PMS system access is a computer, stable internet connection and a web browser. Implementation will also spare you investments in additional equipment and staff costs.
Integrations
Even though on-premise PMS can integrate with external providers such as call accounting software, the process is problematic. It will require technical effort and additional equipment, which could be expensive if your business expands quickly.
Cloud-based PMS is easily integrated with external providers, OTAs and channel managers. Due to the web standards and open APIs process is more straightforward.
API keys for integration and connecting any 3-rd party provider to Rentlio are always available on our website.
Connectivity, integrations, and openness of a cloud-based PMS system guarantee users flexible service. Besides lowering the need for trained staff, 3rd party integrations are vital for rationalizing your object’s required operations.
For example, integration with Chekin allows the Rentlio hosts to save time, money and comply with the legal requirements by managing everything online: guests registration, online payments, remote access and data exchange with authorities.
Upgrades
On-premise PMS systems face long development cycles and require additionally paid upgrades.
Cloud-based PMS systems are maintaining upgrades and deployments frequently, without additional costs. Upgrades can be deployed instantly, meaning users always have access to the latest software version.
Rentlio is, on average, upgraded every three days. During any upgrade period, our users are not being interrupted in any way.
Non-Stop Mobile Access
If you are prevented from being physically present in your hotel, apartment, camp or hostel, management becomes extra complicated. At least that’s how it has been so far.
On-premise PMS systems are installed on the premises and provide employees access to the business’s stored data. Although access is possible from a variety of locations, this requires additional technical setup.
Cloud-based PMS is deployed online. The PMS is accessible via secure login from a computer or mobile device connected to the Internet, anywhere globally, which is beneficial for working from home.
With Rentlio, you have the possibility to manage which information is available to the specific user. Set up teams, assign users to teams and give them (different) user rights – simple as that.
Staff
Trained IT employees ensure regular monitoring and maintenance of on-premise PMS systems – such as upgrades, configuration problems, threat protection and installations. Such administration can be costly and time-consuming.
The service provider manages the cloud-based PMS system, takes care of all the necessary hardware and supports security measures. This reduces the need for hiring IT professionals because you can rely on the service provider’s expertise support.
Also, since hospitality-related professions are defined by high personnel turnover, cloud-based PMS systems pre-integrate instructional segments into the product. That way, managing is easy for everyone.
Data Security
Data security is of the highest importance for both hoteliers and vacation rentals.
Data security of the on-premise PMS system is the users’ responsibility. Installing anti-virus programs and maintaining data security demands qualified staff, which (again) requires time and money.
The information saved on the cloud is evenly distributed on all servers connected to work as one. If one server fails, data wouldn’t be lost. Besides, data security is the responsibility of the service provider. Expertise and budget to implement robust security measures of the service provider make cloud-based PMS systems a more reliable option than on-premise systems, allowing you to worry less.
Cloud-based PMS system provides hoteliers and vacation rentals complete control over data, granting access to specific staff members and keeping sensitive data in the right hands.
The Eternal Question – Expenses?
On-premise PMS relies on pre-secured equipment and server space. Software licenses, maintenance fees, and staff costs raise the initial price, which often exceeds many small and medium-sized hospitality business budgets.
Cloud-based PMS systems are available under a subscription pricing model, based on a monthly cost per accommodation unit. There are no hardware expenses, and software upgrades are usually free. The initial costs are lower because you only pay the features you estimate your hotel, apartment, hostel, or campsite needs.
You can quickly check out how much you could save with Rentlio.
Even if the calculation does not encourage you – try it for 30 days.
Furthermore, cloud-based solutions will increase your revenue. Promote direct booking by integrating a cloud-based PMS system with a booking engine. More than 300 rentals already integrated Rentlio Booking Engine, improving guest experience and revenue.
There is no reason for you not to do the same 😉
Guests Of The Future – Digitally Savvy Travellers
Digital micro experiences are part of everyone’s day.
Does anyone notice how many times they have checked their mobile phone? Or scroll through social media feeds?
Consequently, hoteliers and vacation rentals are looking for new ways to reach guests. Marketing strategies and presence on social media alone are not enough for a reservation.
According to Hospitalitynet, hotel amenities that far exceed our own homes’ comforts are behind us, at least as the technological solutions are concerned. Flat-screen TVs, countless programs, and internet connections are available at home, not to mention Alexa or Siri.
Demographic change, a new generation of guests – digitally savvy guests expect to use technology everywhere.
Needs and Priorities Above All
This article won’t assure you how smoothly a cloud-based PMS like Rentlio functions.
We hope you already know that – or that you are preparing to find out 😊
But we assure you that the on-premise PMS system is not adapting well to guests’ expectations and shifts in hoteliers and renters’ requirements. Contactless experiences and intensified use of technology solutions maybe are a legacy of the pandemic, but the shift towards better PMS system solutions was happening all along – only slower.
Therefore, check our other blog article, which will assure you that now is a great time to change your PMS and channel manager 🙌
