The hotel industry has come a long way from ledgers, spreadsheets and desktop software. The world is moving towards cloud technology. From booking to managing hotel operations, almost every task is done online. According to Gartner prediction, the world-wide spending on cloud services is expected to grow to $304.9 billion. So, why is everyone moving away from on-premises software? We have curated a list of reasons for cloud migration in the hospitality industry.
What is a cloud-based hotel management software?
A cloud-based software (SaaS) can be accessed on any device through the internet. Unlike on-premises software, cloud software is not installed physically on each device. You will be given an ID and password to access the software. The data is stored in remote servers. The servers are located in data centers. So, hoteliers do not have to manage physical servers or store data manually.
Benefits of Cloud Migration
1. Pocket friendly
Cloud-based hotel management software can be purchased on quarterly, half-yearly or annual basis. Some companies offer a free trial period to let the users understand the software and see if it fits their requirement. Unlike on-premises software, you don’t need a software licence for each device. This makes it more profitable as there is no installation fee. Moreover, cloud software does not need any hardware. This eliminates the cost of hardware maintenance and upgradation. So, money saved is money earned.
2. Seamless integration
With the help of APIs (application programming interfaces), cloud-based software can be integrated with external applications like OTAs (online travel agencies), channel managers and payment gateways. This helps in automating tasks, connecting various departments within the hotel and monitoring hotel activities in real-time. This minimises the workload of staff and reduces human error. With the integration of QR code, you can ensure quick, contactless service to your guests. This is a boon as businesses are still recovering from the pandemic.
3. Data security
Data is stored in the cloud. So, you don’t have to worry if a particular device stops working. The vendor will take care of restricting unauthorised users, automatic data backup, preventing bugs and implementing robust security measures.
4. Access from anywhere
You don’t have to be inside your hotel to know what is happening. You can monitor all your hotel operations from anywhere in the world. All you need is a stable internet connection and login access to your hotel management software. You can also download real-time reports to take important decisions, while sipping a cup of coffee.
5. Automatic software update
This is the biggest advantage of cloud-based software. Software updates happen over the internet. So, there is no need for manual installation. You can start using the new features right away without depending on anyone. Whereas on-premises software needs to be updated on each individual device. This causes down-time and disrupts hotel operations. Another advantage is, you don’t have to worry about hardware cost during each update.