Choosing the right hotel management software for your system may feel overwhelming by the abundance of options to choose from and the difficulty in finding trusted advice about PMS features that most benefit your establishment, especially, when there are two types of software – cloud and on-premise; and both are equally cherished.

The primary concern for all hoteliers is the satisfaction of the guests, technology is one of the key tools that hoteliers can use to achieve this, hotels need to develop their management system in a way that would meet the ever-growing demand of guests which is why the hotel management system is the most important in the entire hotel.

This post would provide you with the pros and cons of cloud-based and on-premise hotel management software.

What is a Hotel Management Software and what are its Benefits?

A Hotel Management Software also known as a property management system(PMS) is software that provides a set of solutions that hoteliers use to manage all aspects of their hotel business operations. PMS is designed to manage the day-to-day hotel operations such as reservations, front desk, administrative tasks, housekeeping, maintenance, billing, analytics, and reporting. It serves as the center of hotel operations and ensures the seamless flow of inter-departmental information, this helps hotel staff to better coordinate the operational functions across all the departments. This enables hoteliers to deliver amazing guest experiences.

There are two types of Hotel management Software which are;

Cloud-Based PMS: This hotel PMS offers you real-time access to the software at any time, in any part of the world, all it requires is internet service. It is an innovative, easy, and cost-effective way to manage all your hotel operations.

On-Premises PMS:  This runs as an app on your computer, it provides you with a simple set of solutions to effectively manage your hotel, data is stored on a remote server on your property, and it requires no internet to access it.

Benefits of a Hotel Management Software 

Enhanced Front Desk Capabilities: Enables hotel staff to check guests in and out, assign rooms, and enable guest services anytime and from any place.

Enhanced Guest Experience: The automation of daily operations and administrative tasks promotes a consistent provision of quality services along with a more streamlined check-in and check-out experience which will boost your guest’s happiness. 

Access to Hotel Data Online and on Multiple Devices: This is a major benefit of cloud-based PMS, most cloud-based hotel management software allows you to access the system through various devices such as desktop computers, laptops, tablets, or mobile devices, giving you a central view of all your booking and room occupancy that is easily adjustable. This aids you in efficiently managing your hotel and responding to requests in real-time.

Offline Availability: This is a major advantage of on-premises PMS, once the technical requirements have been met and the PMS has been successfully installed on your property, you won’t require any internet connection to access the software. This is very useful in remote areas with low or no internet connectivity.

Integrated Hotel Back-office System: The hotel back-office system performs analytical functions and provides accurate reports, which vastly cuts down the time spent on administrative duties thereby saving time and reducing human errors.

Increases Housekeeping and Maintenance Efficiency: Hotel management software provides housekeeping and maintenance functions that alert staff in real-time to schedule room cleaning or maintenance and manage inventory.

Improves Efficiency and Promotes Staff Productivity: The PMS provides you with a rich set of features and functionality to help you boost efficiency in your hospitality business. It allows staff to be more efficient and fast when attending to guests and cutting out excessive paperwork.

Multiple Integrations: Hotel management software allows for various integrations such as accounting software, POS system, and other 3rd party software. It is flexible in its capabilities to allow for a large number of integrations.


Major Differences Between Cloud-based Hotel And Software and On-Premises Hotel Management Software 


Cloud-based: One of the major advantages of cloud-based PMS is that it is deployed over the Internet and does not require any special installation or downloads. All that is required to access the PMS is a browser and a favorable internet connection. System data is securely housed off-site in the vendor’s data center and is accessed by the property online via a secure login.

On-premise: On-premise software is physically installed on every computer from which the PMS will be accessed. Data is stored on a server located at the property. This means that data and hardware maintenance and security are the responsibility of the property.


Data security

Cloud-based Hotel Management Software: Data security is a major concern for hoteliers considering cloud-based options, your guests need to be assured that their data is safe with you. Generally, the vendor of your cloud software ensures its security. They have various teams of dedicated and qualified engineers monitoring, learning, and implementing the latest requirements ensuring data safety every day. They deal with this problem of data security thereby allowing you to devote time to your guests.

On-premise: With an on-premise system, data security is the responsibility of the property. You have to install firewalls and anti-virus programs on computers using the PMS and you have to closely monitor and manage the PMS to ensure data safety. You would also need to adopt various safety measures and install tools to maintain security.



Cloud-based: Cloud-based systems have a much lower entry cost, they are available under a subscription pricing model, typically based on a fixed monthly cost with a small initial setup fee. There is no server cost, maintenance fee, or extra-human resources cost, and it is an extremely affordable budget for small and medium scaled hotel businesses.  

On-premise: On-premise hotel management systems are a traditionally expensive investment. The licensing fee normally does not include the initial setup fees and already totals up a huge sum of capital. There are hidden costs including hardware server costs, additional IT staff expenses to manage the system infrastructure, maintenance fees, and the expenses of other 3rd party software integrations. An on-premise system is a capital expenditure that is beyond the budget of many small and mid-sized independent properties.



Cloud-based: Because cloud PMS is deployed online, the system can be accessed anywhere and anytime. Modern cloud PMS offers a level of on-the-go accessibility that cannot currently be matched by on-premise systems

On-premise: While on-premise systems can be accessed remotely from an off-site computer, this ability requires additional technical setup. Remote access performance can be affected by various factors, including server workload.



Cloud-based PMS: With the cloud PMS, you get a wide range of integrations, they are much more easily integrated with external systems, including OTAs and channel managers, due to common Web standards and open application program interfaces (APIs), thereby greatly reducing IT requirements while improving automation and efficiency.

On-premise: These also offer several integrations with external systems such as call accounting software, point-of-sale (POS) systems, keycard, and in-room entertainment systems but it is a complex process that requires manual technical work and additional hardware.



While both hotel management software presents various disadvantages and advantages to your property, carrying out proper research on the vendor goes a long way in helping you choose the right system for your property. 

In the present technological era, business owners have to trust the software that helps to run their everyday tasks. It is an individual’s choice to decide what they want and what they are expecting from the system.

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