No matter how successful your hotel business is, the need to reduce hotel operating costs and employ cost cutting measures in hotels is universal. While there are several ways in which hoteliers can go about cutting hotel operating costs, not all are sustainable measures.
A guaranteed way to reduce hotel operating cost, on a strategic standpoint, is the adoption of a cloud-based hotel property management system. In this two-part series, we will discuss the many ways in which a cloud PMS helps independent hoteliers to be successful in cutting hotel operating costs.
1. Zero Server Installation Cost
On-premise systems come with a heavy investment which isn’t even a “one-time” expense. The cost of installing a server in your hotel premises is something that one cannot ignore, considering how deep a hole it burns in your wallet! Whereas, with a cloud-based Hotel Property Management System, you won’t have to worry about any such expenses.
Since there is no physical server, there is no question of investing in the infrastructure. Of course, there is a server which is on the cloud, but even for this cloud-based server, it isn’t you who will pay! Your PMS provider will bear the expenses of the server.
A smart decision to further save on potential additional cost would be to invest in a cloud PMS that is hosted on a reliable cloud server. Hotelogix cloud PMS is hosted on Amazon Web Services. So, every customer of Hotelogix is guaranteed complete data security and back up.
2. No upkeep/maintenance cost
Like we just discussed, since the PMS provider takes responsibility of the server-related expenses, hotel owners save on a lot of expenses that they would have to bear in case of an on-premise system. While investing in a server in itself is a huge expense, on-premise systems also require regular upkeeps and maintenance which end up costing them all the more! This is another hurdle you will overcome if you switch to a cloud-based Hotel Management System such as Hotelogix.
What’s even better is that the question of losing data due to server downtime is also non-existent with a cloud-based server since updates happen in almost real-time basis. This ensures that you never have to suffer data loss, not even temporarily.
3. No dedicated maintenance resource needed
One of the most persistent expense hotel owners have to bear with an on-premise system is this. The IT staff that will have to be physically present to make sure the system is up and running smoothly. Again, a cloud-based PMS helps eliminate this expense as there is no need for a resource to maintain the server since it is on the cloud! These were the three ways in which a cloud PMS is efficient in helping reduce hotel operating costs, when compared to an on-premise system.
4. Avoid financial loss by eliminating manual errors
Gone are the days when tasks like reporting, accounting, billing, etc. had to be managed manually. One small error in your accounting can cost you dearly. Technology has enabled hoteliers to automate several daily tasks which have had the potential for recurring manual errors. Automation is one of the most important cost cutting measures in hotels, today! A cloud-based Hotel Management System gives you all the necessary tools and integrations you need to automate tasks that are crucial.
After all, when you don’t have the sword of potential manual errors hanging over your head, you can go about focusing on the other aspects of your business that actually need human intervention like building guest experience, etc.
5. Save on man-hours, because time is money
One of the biggest advantages of modern-day technology is that it has put convenience at the very core of its function. Automation has empowered hotel owners to better define staff roles, saving numerous man-hours on a daily basis. Given the scope of a cloud PMS’s functionalities, it can save hotels a lot of time across multiple departments.
Pro tip: Switching to the Hotelogix cloud-based Hotel Management System helped Mint Hotels & Suites save over 1500 man hours a month! The case study is up for you to get a deeper understanding of how this was made possible!
6. Focus on activities that indirectly affect your bottom line
The other important benefit when it comes to cutting operational costs with automation powered by a cloud PMS is that you have the advantage to focus on activities that are crucial to your business. Guest experience is one such priority that gets neglected because most hotels cannot afford the time and commitment that it takes to deliver impeccable guest experience.
With a cloud PMS in place, you can drastically improve your guest experience strategy. When hotels cater to their guests with the sole intention of delighting them, it will reflect positively on their online reputation. And there are enough stats on the internet to vouch for the importance of having an awesome online reputation. In fact, having a good online reputation also helps hotels increase their revenue. And guess what, a cloud PMS can help with that too!
7. Go mobile and make crucial decisions on the go
In this digital age, going mobile is more of a necessity than an option. Hoteliers can no longer afford to cut off from their business or be done for the day. This is where a mobile Hotel PMS comes into the picture to make sure that you are always on top of what’s happening at your hotel. Especially with crucial time-sensitive decisions like pricing, it is imperative to have remote access to the PMS. It helps hotels save a ton of money and effort when you can make the right decisions at the right time.
We’ve discussed some of the ways in which independent hotels can cut operating costs with a cloud PMS. If you are a cloud PMS user, and have reduced cost at your hotel thanks to a PMS, leave us a comment!
Hotelogix Editorial Desk
Hotelogix's team of researchers and writers are constantly innovating to share the latest trends from the travel and hospitality space. Got suggestions? Write to us on email@example.com.
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