A subject of frequent discussion has been the properties and functions of cloud PMS. This, however, is not complete without knowing how it can be of benefit to you and your business, especially for cutting costs. In addition to that, it can also be used in making processes and guest services more efficient which result in better revenue. We’ll discuss the ways in which sitting back and allowing your cloud based PMS to do the heavy lifting for you will elevate your productivity and help you to save money.

1. Enables You to Increase Results Without increasing Staff

In previous years, it was a common thing to find property owners being forced to employ more people for more productivity. This concept of having the rate of productivity being commensurate to the number of workers was however cut off by improved technology. With the advent of more innovations, especially in the internet arena, many hoteliers prefer using technology rather to adding more workers. One of the leading and most popular Innovation was PMS. Over the times, technology has changed and today hoteliers can derive true benefits from PMS. One of the reasons behind this is that technology has become affordable and has thus leveled the playing fields for even a small hotel to compete with bigger players. The cloud benefits are countless, with improved customer satisfaction and better operations on a day-to-day basis being among them. It is a highly ranked piece of software mainly because of automating most of the manual work, especially in the hotel operations and guest services.

Once you subscribe to such a system, you will find that the money you set aside for payments of salary will be spared. The main reason behind this is that you will comfortably operate at full throttle with less staff being involved. With such a system in place, you will find that your need for more staff at your property`s front desk will be brought down to an almost bare minimum. The online management systems also help in cutting down by the manner in which they ensure staff does not make mistakes and at same time systems are intuitive enough to ensure hotels sell rooms at best ARR. They do so by optimizing rates based on occupancy and market conditions. All of these aspects work out to save your money because you will have fewer people to owe salaries and better revenue collections at the end of every month.

2. Less Dependency On Online Traffic Agencies & Increase Direct Bookings

There is no doubt of the dependency of hotels to Online Traffic Agencies (OTAs).It is crystal clear that for a hotel to excel, there must be a subscription to the best OTA. However, by so doing there is a price to pay which comes in the form of commission, loss of revenue to third parties and lower ARR. There are also other issues that arise from the OTAs like human errors when releasing inventories and updating rates. Untimely updates of rates and missing out on market conditions or the actual occupancy trends are also other downsides that cannot be overlooked.

With PMS systems, there is some way out of this conundrum. The PMS systems of this age come with channel, rate and revenue managers. This plays a crucial pivotal role, in that the hotel can maximize on rates, revenues and also get rid of human errors. PMS also offer direct booking solutions in terms of booking engines which allow hotels to own guests and not lose out on revenues.

When using the best cloud-based hotel PMS, you are better placed to have direct bookings to your property through web booking engines. They give you a way out from the ordinary marketing stunts that you have to make do with when you don`t have a working PMS. Due to this, people can now access your real-time rates and packages through your website, and make booking directly without having to pass through `middle men`. With the rate of direct bookings having increased, you are able to reduce acquisition cost and save more money by doing away with the third party options that you had incorporated to help in getting you some booking.

3. Enables You to Work from Anywhere

The days of having to stand in front of your desk to assess the status of your property are now gone. This has been made possible by the software that’s been invented specifically for management purposes. With PMS being among them, you would do yourself a lot of good by having an installation for your property. They enable you to be kept in the loop of everything going on in your business regardless of the location that you are in. This could come with the urge to be always online but on the other hand, it takes your efficiency levels higher. Reason being that you can make important decisions much quicker because you are always aware of the current information regarding your business.

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With your arsenal having such kind of weaponry, you are better placed to tailor the rate yield of your business and also its distribution strategy. This helps you to save the money needed to consult more strategists and managers to help make decisions and implement plans for your business. Your costs of traveling to your business every time a decision needs to be made are also cut down hence saving you quite a lump sum in the long run.

In addition to the above, hotels get better business intelligence in terms of real-time reports showing historical trends and data allowing hotels to make use of this data, PMS also offers tools which allow you to map and look at what competition is doing and how you fare against them on OTAS and social media.

4. The Latest Solutions

Cloud-based PMS have an edge over other types of management systems in terms of receiving regular updates and enhancements based on the industry trends. System enables hoteliers to have a wide array of access to some of the best complementing solutions and information related to guest reviews, social media, marketing etc from multiple, reliable sources. With this aspect in your property`s pocket, you are able to come up with more efficient methods of solving problems whenever the need arises.

5. Zero Start Up Costs

One of the most significant advantages of the Property Management Systems is the cost of the initial starting capital. To start with, there is no need to purchase latest and high configuration hardware when using cloud-based systems. The hi-tech networks, licensing costs for database and operating systems, extensive trainings and dedicated IT resources together with servers that are onsite which are essential in other types of systems are of no use in cloud PMS. This interprets to zero set-up costs for such equipment and also there is no need for maintenance costs of the same.

6. Low Capex

With the use of cloud based PMS, you are entitled to alleviate the costs that are incurred when buying equipment, servicing them and also powering them. There are also no costs for upgrades that keep on recurring in other system types because of the total automation with the customers reaping the benefits. Your system thus needs no onsite visits and expensive in-house staff to oversee the system. This, in turn, creates avenues for you moving away from Capex and into Opex as you only need to subscribe to the system and pay a fee on monthly basis. In addition to that, there is also little room for the requirement of IT and the ownership costs are overall reduced.


In this day and age, it is imperative that hoteliers leverage on technology, such as online PMS, to boost their businesses. Technology lessens the burden of work, is evidently more efficient and in the long run, and it can prove to be cost effective and help improve guest services.

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.