The history of the tech tools used in the hospitality industry goes back 70+ years. The first software for hotels was developed by Westin in the ’40s, and it was a hotel reservation system. The ’70s saw the rise of MICROS as robust sales software, and the first guest-centric smart hotel PMS (in the ’80s) was the SMS or the Springer-Miller Systems. But can you imagine anyone using these outdated tech tools in 2024?

A survey shows that 70% of hotel managers want their establishments to be more data-driven. However, it is simply impossible to achieve this goal by using outdated legacy systems. Legacy systems refer to any old software applications or computer programs that you’re using instead of the latest tech tools.

If you’re still using software from the 2010s – or worse, the 1990s – then you’re in big trouble; a legacy system might be causing you financial loss. Let’s go into depth about this problem here.

8 Reasons Why You Should Replace Outdated Legacy Systems?

Your hotel management system needs to be modern if you want it to help you achieve your goals. You simply can’t keep using the same software that’s been in place for the past five or ten years. Updating your software is just as important as upgrading your hardware. If you don’t get rid of legacy systems, it might affect your revenue potential in the following ways:

1. Maintenance Costs
The sheer cost of maintaining an outdated system can be too much to handle. It’s akin to keeping an old vehicle that requires constant servicing; replacing an outdated mode of transportation often costs less than servicing/repairing it.

Similarly, simply replacing legacy systems with modern PMS solutions might be the best way to increase your revenue potential. A study shows legacy systems may claim 75% of the hotel’s total IT budget. That’s why we recommend replacing your outdated PMS solution right away.

2. Integration Failure
Is your outdated PMS holding you back? These legacy systems often struggle to integrate with modern software, leading to downtime, data loss, and disjointed operations. Don’t miss out! Over 50% of hotel bookings in the post-pandemic world come through major online travel agencies (OTAs), and an outdated PMS could prevent you from reaching these vital customers.

Hotel guests also demand contactless check-in/check-out and payment options, making them the most in-demand technologies in the global hospitality industry. Unless your legal system provides guests with contactless services, it needs to be replaced by a smart hotel PMS that is well integrated with other tech tools.

3. Analytics Failure
Outdated software simply can’t keep up with the latest data analytics. As a result, your staff won’t be able to offer personalized and targeted services to anyone. A lack of personalization will decrease the stream of guests coming your way; therefore, your revenue potential will decline.

You should invest in modern PMS solutions that can better understand guest preferences and behaviors. They will analyze customer data and find new opportunities to improve guest experiences. It’s another reason why replacing a legacy system is more than necessary. What you need is a data visualization tool to better understand guest behavior, such as PowerBi.

A PowerBi-enabled dashboard helps you take DDDM (data-driven decision-making) to the next level by letting you tap into the relevant insights on customer satisfaction. It allows you to:

• Keep track of your inventory
• Track customer feedback satisfaction levels
• Monitor booking patterns for optimized pricing strategies
• Segment valued customers based on demographics and behaviors
• Understand the current occupancy rate and predict the future occupancy rate

4.Cybersecurity Threats
Did you know that a typical organization has over 30% of its technology in the form of legacy systems? A different report shows that 31% of hospitality establishments have faced data breaches in the past.

If you’re using older legacy systems, then they must have old-fashioned security protocols. They won’t protect your organization from costly data breaches. A data breach can easily sink your hotel’s reputation and also comes with severe financial implications.

Imagine losing your guests’ information to hackers and the cost of dealing with the lawsuits! So, it’s safer to replace these legacy systems right away.

5. Training Deficiencies
Technological advancements require staff training to improve your workforce’s productivity. It’s the only way to ensure hotel employees remain 100% efficient in their tasks. AI implementation is successful only with proper training modules. However, outdated legacy systems may require excessive training in every department. From front desk to housekeeping, the workers have to adapt to working with the PMS.

Unless you replace an outdated hotel management system with a new one, it will be difficult for you to train your employees properly. Training your workers on legacy systems can be time-consuming. That’s where a smart hotel PMS emerges as a software option your workers will find easy to learn.

6. Automation Incompatibility
Automation has permeated every aspect of hotel management in the 21st century. Many aspects of hotel management have been taken over by AI-enabled tools. Housekeeping tasks, room reservations, guest feedback monitoring, inventory management, and even marketing/upselling your hospitality services – it has all done with automated tools that demand a PMS with seamless computability.

Incompatibility issues will prevent hotel managers from leveraging automation to its full extent. That’s why an outdated system needs to be ditched immediately. It’s the only way to improve hotel operations without letting a legacy system wear the whole system down.

7. Human Engagement
Hotel chatbots have taken over the industry and improved human engagement with customers. Legacy systems, however, provide poor levels of communication and may reduce customer loyalty.

Also, poor data analytics capabilities will prevent these outdated systems from offering personalized offers and news to the client. This is yet another reason you must replace obsolete legacy systems in 2024.

8. Updating Difficulties
Even updating legacy systems can be very difficult and may cost more than replacing them with the latest PMS solution in the market. For example, the manufacturers of many legacy systems dominant in the 20th-century hospitality industry may have either shut down their operations completely or released no new updates on these outdated systems.

On the other hand, the latest hotel management systems and PMS solutions always have new software updates and software patches coming from their manufacturers/developers. These updates ensure that your PMS doesn’t have any vulnerability hackers might try to exploit.

The vulnerability of old-fashioned hotel PMS systems is a major reason why switching from these dated software options should be a priority for hotel managers nationwide.

Why Choose mycloud PMS?

Here are a few reasons why you should consider mycloud PMS as the best hotel PMS system for both small-scale hospitality establishments and major hotels. After all, it’s highly lauded by luxury hotels.

With its library of 200+ interfaces and an easily affordable pricing plan, mycloud PMS reigns supreme as the ultimate hotel management system, approved by 34% of luxury hotels and many other members of the hospitality industry. The affordability and navigation-friendliness of mycloud PMS has earned it the prestigious Certificate of Excellence award by HotelTechReport thrice in a row (2021 to 2023).

That’s why you should only invest in the latest PMS solution to increase your hotel’s revenue potential. It is essential to choose the best PMS tool out there and ditch your outdated legacy systems.

Wrapping Up
In this blog, we have explained some of the major reasons why your hotel’s revenue potential might be under threat from an outdated legacy system. If you haven’t updated the legacy system in a while, it might cost a lot to be appropriately maintained. Outdated legacy systems don’t typically offer personalization or integration capabilities.

Also, they can’t adapt to the mobile world we live in, which is a necessity in today’s environment. That’s why you should replace outdated systems with the best hotel PMS system available online, i.e., mycloud PMS. Book a demo with mycloud to check this platform’s capabilities. See how it can help unlock your establishment’s full revenue potential in this competitive market.

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About The Author

Deepak Chauhan

Deepak Chauhan is responsible for marketing and positioning of “mycloud” platform and is a veteran in the hotel software industry with over 25 years’ experience giving him a strong understanding of the product requirements in the industry. He has very rare mix of working in operations of various hotels and chains for over 10 years and then co-founding a software product and service company, servicing 5 star hotels and chains for 14 years.

Deepak has led the development and marketing of cloud based hospitality systems to meet the specific, business objectives of small and mid-size properties across the globe and has worked closely with a diverse group of hoteliers and hotel technology vendors.