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Pat Favoreal
Just for the purposes of keeping things simple, I am sharing with you my very own definitions:
Traditional PMS...
Are good softwares. The best I have ever used is Fidelio - Opera. I have also seen Harmony, Amadeus, Fiesta, Maestro, IFCA & Aremis.
Let me take you through the 11 dimensi ons I used in compari ng New PMS & Tradition al PMS.
New PMS makes more sense for Small & Medium Size properties vs. the Traditional PMS.
4. Speed of
5. Training 6. Support
1. Cloud PMS is cost effective and will work best for Small to Medium size properties.
On cost Effectiveness:
LEGACY
Network wires, servers & technological infrastructure to support the usage of PMS. For a 50 room property, the initial investment would be between 25k to 75k USD (servers, hardware, licenses, internal wiring & software. Annual maintenance cost would range from 5k-25k USD per year. Recurring costs for system upgrades, product upgrades, software upgrades.
CLOUD
For Cloud PMS, you just need to sign up. For a 50 room property, the initial investment would only be from USD 500 to 1,350.
Properties choose legacy PMS but cloud PMS like Hotelogix is the practical Initial Investment: choice.
Legacy.............$75,000 Cloud................$1,350 Savings.............$73,650 Annual Recurring: Legacy...............$5,000 Cloud (sub)........$1,794 Savings..............$3,206
Will cost up to USD 1,794 per year as active subscription. No recurring upgrade costs because any upgrade done on the cloud is automatic and the benefit is passed on to the consumer.
LEGACY
You must be in the work station to access your PMS.
CLOUD
As long as one has internet, hotel owners and the required personnel can access their hotels from any place and at anytime. No dependency of waiting for someone in the hotel to update because you can access anywhere at any time. On-line
For Hotel Owners & Executives that travel a lot, you will need an e-mail or talk to a hotel staff to get to the information you need when you are away. Off-line
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LEGACY
An IT team must be organic in the hotel personnel roster to maintain the whole system - they do cost a lot. Upgrades come with a price so as the roll-over of the upgrades.
CLOUD
No need for high level, expensive IT staff.
All are done on-line and they are always available to the customer at no cost.
Legacy IT Team: 1 IT Manager......$1,500 2 IT Staff.............$ 858 Total Mo............$ 2,358 Cloud IT Team: 1 IT Supervisor...$ 900 Total Mo............$ 900 Savings Mo......$ 1,458 Savings Yr........$ 17,496
Too much effort and resources spent Not for cloud like Hotelogix. on upgrades & maintenance work.
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LEGACY
Quite difficult to get a free version. System is a bit complicated and there is only a number of people allowed (budget) to be trained. More trainees mean additional cost. Work days required (exclusive of hardware implementation) for setup and training is around 16-19 days. Usability queries are not answered immediately (because you have to go to a process).
CLOUD
On-line free trial is available to anyone. You get to understand the use of the system before hand. Very easy system to use. Demos, Videos are available. Promotes selftraining. We even asked our staff to train from the comforts of their home. Set-up is not more than 2 days, training is completed in 4 days.
Trainees can ask the support staff anytime and get instant answers via live chat.
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LEGACY
Need to call a local partner support and wait to be assisted.
CLOUD
Available live online. My staff barrage live support with questions and they get immediate results.
Issue resolution is timely (if there is Issue resolution is fast and instant. a local support in your locations). Takes time if supported outside your locations.
6. Cloud based PMS are much better suited to get integrated to global online market places.
On Distribution: No need for extra manpower to manage the various distributio n channels. It is faster and cheaper through cloud PMS - many of them are built in.
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LEGACY
Integrating a booking website or online channels needs a significant amount of engineering which gets defined as cost.
CLOUD
Most come in the package and hotels get better integration with the online world at a much faster pace.
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LEGACY
Once you have signed, you are stuck.
CLOUD
Pay as you go. Easy to get out from if you want to switch to another system. Free trial available. You get to study the system and see if it fits your hotel property. Unlimited user license.
Other legacy systems are on paid user licenses based on concurrent usage.
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LEGACY
CLOUD
Better collaboration with other systems like CRM, accounting and HR since many of them are on the cloud.
Theres a Collaboration becomes a big overhead cost. range of choice of cloud based ancillary systems to collaborat e with.
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LEGACY
Performance is completely
dependent on the in-house infrastructure, which always get challenged on a daily basis with newer releases of OS, new softwares, newer models which also demand more and more computing power and storage capacity.
CLOUD
Servers are on the cloud and they have unlimited access to computing power and storage capacity, hence will give you better performance.
10. Cloud PMS like Hotelogix is safe. We have been using it for 3 years. We never had security issues.
On Security: We had doubts before but after 3 years of using, we never had security issues. We even started using other ancillary cloud based systems after we started Hotelogix because we now believe in cloud based systems.
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LEGACY
Security depends on the internal set-up.
CLOUD
Data gets managed at high end data centers which have powerful and comprehensive built-in data security systems. Data gets backed up almost every hour. Uptime guaranteed by data centers at 99%. Failover and redundancy data mechanisms are inbuilt, so if one server goes down the data gets switched over to another data. Just as banks are better custodians of money than at home, data centers are better custodians of data than keeping them in-house.
Cloud PMS makes more sense for Small & Medium Size properties vs. Legacy PMS.
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Training Support
My Cloud PMS is Hotelogix. It makes a lot of sense for Small & Medium Size hotels/resorts.
It is cost effective. Easy to use. Safe.
Allows me to manage virtually anywhere.
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Increases my position in
They have always supported my small and medium size hotels very well. We have 3 hotels using Hotelogix in the past 2 years. We have saved almost $180k because we were using cloud PMS. I am excited to see more innovations in the years to come. I hope you do too.
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