Choosing Between On-Premise vs. Cloud Hotel System
Blog summary:
- Up to 51% of hoteliers are dissatisfied with their current hotel systems and feel that they cannot stay competitive in the market with them.
- While on-premise hotel systems tend to be durable and reliable, the rapidly evolving hotel industry demands a solution that is both fast and modern, which can be provided by cloud-based hotel systems.
- It's important to compare on-premise and cloud solutions to determine the best option for your hotel.
Deciding between on-premise and cloud-based hotel system is crucial in the ever-evolving hotel tech industry. The hotel Property Management System (PMS) is the core of hotel operations, linking hoteliers with guests, overseeing reservations, revenues, daily tasks, etc.
Whether you manage a small boutique hotel or a large hotel complex, technology such as the right hotel system can significantly simplify daily hotel operations.
An internal survey we conducted as part of Rediscover 2024 showed that 51% of hoteliers who are not Rentlio users are not satisfied with their current technology and that 50% of hoteliers do not believe they can remain competitive with it in the next 5-10 years in the market.
In this blog, we will compare on-premise and cloud hotel systems and the different aspects so that you can make an informed decision when choosing the hotel PMS system that best suits the needs of your hotel business and your guests.
What Is A Hotel System?
A hotel system or Property Management System is a key tool for running a hotel. It is a system designed to manage daily hotel operations, including:
- reservation, availability, and team management
- sending offers
- communication with guests
- invoicing
- statistics and reports
Today's hotel systems come in two forms:
On-premise PMS, which requires installation on local servers in the hotel, and cloud PMS, available online, without the need for local installation, at any time and from any device.
On-Premise Hotel System
An on-premise hotel system is installed and maintained on the hotel's local computer system, meaning that all server resources, databases, and applications are physically located within the hotel premises rather than on remote servers in the cloud.
Although on-premise systems provide control over data, they face the challenges of high initial costs, the need for regular maintenance, and less flexibility in adapting to technological changes.
What Is A Cloud Hotel System?
Cloud hotel systems use cloud technology to manage hotel operations instead of local software installed on hotel computers. The data is stored on remote servers via the Internet, enabling access to the hotel's data and operations from anywhere.
Benefits include reduced infrastructure costs, greater flexibility, improved accessibility, automatic updates, non-stop operation, and faster deployment of new functionality.
On-Premise Vs. Cloud Hotel PMS Comparison
While on-premise systems offer traditional control, cloud-based PMS brings innovation and adaptability, emphasizing cost reduction and access to data anytime and anywhere.
Many hotels are transitioning to cloud-based hotel PMS solutions because of their flexibility and accessibility. The distinction between on-premise and cloud PMS systems can significantly impact your decision, so here are the most important ones.
| On-Premise Hotel PMS | Cloud Hotel PMS | |
|---|---|---|
| Installation | Local server required | Easy and fast setup |
| Costs | The total cost includes the license fee and IT infrastructure needed for the software, along with an annual maintenance fee for support and upgrades. | A more affordable subscription model with low monthly fees per room and some setup costs, eliminates the need for costly hardware. |
| Updates | New features, functionalities and bug fixes are available, but often time-consuming and involve interruptions in regular operations. Updates often require active participation from users or partners, including downloading and installing the latest version of the application. | Constant access to the latest software versions is provided. Regular and automatic updates allow uninterrupted operation at no additional cost. All users simultaneously gain access to the same system version, guaranteeing a consistent experience and balance of functionality across all clients. |
| Data Security | High-security standards, including careful management of GDPR controls and PCI certification for secure handling of financial data. However, the hotel is solely responsible for its internal data security. The hotel must take operational-level protection measures, which include ensuring proper staff training and constantly monitoring and updating security settings. | In a rapidly changing world, with the introduction of new security requirements such as GDPR, PCI standards, and others, keeping up with the latest developments is challenging and complex. However, when using a cloud PMS, this effort falls to expert engineering teams regularly monitoring and implementing the latest security requirements. Thus, the care of complex security issues is left to the experts. |
| Improving Hotel Operations | Although reliable and long-lasting, it requires additional efforts to keep up with the rapid evolutionary pace of the hotel industry. Integration with innovations and market demands becomes a challenge, making it less adaptable compared to modern cloud PMS solutions. | You can manage your hotel from anywhere and on any device. Innovative, intuitive, and modern interface adapted and easy to use for every member of the hotel staff. The system facilitates work, promotes efficiency and enables uninterrupted provision of top-notch service, thus achieving a high standard of quality in the hotel business. |
| Increased Staff Efficiency | Located within the hotel itself, it requires physical access, which can slow down operational processes. Staff may be limited in the speed of accessing information and performing tasks. Hardware replacement and renewal of operating system licenses further increase costs and implementation time. | Process automation speeds up work tasks, allowing the reception to quickly access key information. Cloud systems encourage fast and efficient communication within the hotel and staff, facilitating coordination between departments. Additionally, thanks to the intuitive interface and easy onboarding approach, hotel staff quickly acquire the necessary knowledge to use the system independently. |
| Integrations | They are usually characterized by a closed approach that makes integration with additional applications difficult. These limitations can seriously impair the agility and adaptability of hotels in the dynamic hotel sector. | Thanks to API access, the ability to integrate represents an added value of the cloud system, giving you complete control over every aspect of your business. With easy access to integrations, you choose from a number of tools that will help you optimize every aspect of your hotel business. |
Choosing the right PMS system depends on your hotel's specific needs, but the advantages of the cloud platform are clear. From flexibility to various automation, all this leads to a significant reduction in operating costs. By investing in a cloud PMS, hotels ensure long-term adaptability and competitiveness in the dynamic hotel industry market.
Why Opt for Rentlio Cloud Hotel PMS?
While smaller hotels may temporarily be satisfied with a basic hotel system, larger hotels require advanced functionality to keep daily operations running smoothly.
Rentlio's cloud hotel PMS is an all-encompassing solution, incorporating a Property Management System, Channel Manager, and Booking Engine, offering hotels unmatched adaptability and scalability, regardless of their size.
Accessing data and functionality from anywhere, anytime, boosts operational efficiency, enabling swift responses to changes or emergencies. Reduced infrastructure, maintenance, and upgrade costs enhance financial efficiency, eliminating the need for costly equipment or physical data storage space.
Rentlio integrates advanced features like process automation, data analysis, and rapid innovation implementation, aiding hotels in keeping up with competition in a dynamic environment. Data security is a priority, and as a recognized cloud service provider, Rentlio regularly updates its systems, adhering to high-security standards against cyber threats.
Implementing The Cloud Hotel PMS
Hoteliers may overthink transitioning to a new Property Management System. However, with well-organized hotel operations, implementing the chosen system can be quick, stress-free, and cost-effective, all managed remotely.
Implementing a cloud hotel PMS is typically faster than traditional on-premise PMS, with automatic updates ensuring access to the latest product updates and security protocols. Switching from an on-premise PMS system is different; the process is more expensive, time-consuming, and demanding.
At Rentlio, selecting a hotel system for daily management is a nuanced process. We approach this transparently, tailoring our approach to each client's needs. Beginning with a meeting with our business development specialist to understand your business requirements, we provide a detailed system presentation, allowing you to assess features.
Based on your specific needs, we send a personalized offer. Signing a clear contract defines the terms of cooperation, followed by a swift and efficient onboarding process and staff training to ensure you can leverage our hotel management system promptly.
Invest in technology that will give you greater efficiency and a competitive advantage in an increasingly dynamic market. Book a meeting with our experts to experience the quality of our solution firsthand.
Ivana Šakić is a passionate writer and lover of the written word, with years of experience creating inspiring and informative blog content. During working hours, she is in charge of Rentlio’s blog content and social networks, and during her free time, she takes photos of sunsets for her profiles. A cat-owning dog person who hopes to own a small cottage, first row to the sea, and have somewhere to escape during the hot Slavonian summers.
