Comparative Analysis of Property Management Systems for Hotels

The hospitality industry has seen significant advancements in property management systems (PMS), with a shift towards cloud-based solutions. Traditional PMS are often costly due to high installation expenses and the need for continuous updates and maintenance by IT personnel. This can be challenging for small hotels that lack dedicated IT staff, making these systems less cost-effective. In contrast, cloud-based PMS offer greater flexibility and scalability, allowing properties of various sizes to manage operations more efficiently. These systems are particularly advantageous for smaller establishments as they eliminate the need for extensive IT infrastructure and enable easy access from multiple devices. Cloud-based solutions also support online integrations, such as automated inventory updates and centralized reservation databases, enhancing operational efficiency. However, concerns about internet reliability and security pose challenges to cloud-based PMS. Despite these issues, cloud solutions have gained popularity due to their affordability and advanced features, making them suitable for small to mid-sized properties in today's digital landscape.

Running head: HOSPITALITY INDUSTRY AND PROPERTY MANAGEMENT
HOSPITALITY INDUSTRY AND PROPERTY MANAGEMENT
Name of the Student:
Name of the University
Author Note:

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Property management system:
The essay discusses the chief courses for property management. For a small boutique
hotel, the management can use a well-travelled and familiar route of software that is locally
installed or an increasingly explored way through the cloud (Rodríguez-Antón et al. 2012).
Could computing has become a trend and it is expanding largely across industries from
tourism to technology.
Opting for local:
The most important component of the system is the data server where guest,
reservation as well as accounting data have been stored. The researchers usually recommend
that the server must be dedicated to only PMS as additional appliances that run on the same
server may slower overall performance of system. Multiple server may be required according
to the size of the property. Systems that provide integrated Web booking module requires
additional server for managing concurrent reservations. These are then saved in main server.
Centralised as well as virtual management also need terminal servers.
Technical requirements:
Computer or workstations- These need to conform or follow to the operating system
like Microsoft windows supported by PMS and to all the programs needed by the interfaces.
Beside this, Data servers, Terminal server, operating system, Network cards and Removable
back-up systems are also required (Cohen and Olsen 2013). The property authority must
consider the existing hardware and check whether they are current and can meet optimum
requirement of the system.
Advantages:

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As the internet is widespread, the properties from isolated locations can also easily
access which is one and only rare situations where Cloud-based PMS cannot be the best
solution. As the local server based systems do not need internet connection, accessing the
system needs no internet connection.
This is also an advantage of local server based systems that it can avoid concerns for
the internet security. Over internet there is always threat associated with viruses, system
hacks and malwares. Security concerns must be considered as sensitive data especially the
guest data are stored through a PMS. The managers can contain data on site and keep eyes on
them through a local server based system (Mo Kwon, Bae and Blum 2013). It is a safer
option where the owner need no concern for security as well as maintenance measures. The
private networks must be secured, server rooms locked up, computers and back up servers
must be ready all the time, power generators optional and disaster recovery must be ready for
perfect operation. The successful outcome also need an experienced IT staff.
Disadvantages:
The chief disadvantage of local server based PMS affect keenly to the small, middle sized
as well as independent properties. As they have meagre budget for requirements of the
systems, maintenance and upgradation. The local server-based PMS can cost $ 10,000 which
is a big amount for expenditure. Beside this, initial costs include software licencing and
hardware. Maintenance cost are steep that include the replacement of hardware, upgradation
and energy costs for running the machineries and payments of IT personnel (Law et al. 2013).
The disadvantages of the local server PMS are-
 They require complex hardware that are expensive
 They are expensive as well as complicated for maintenance
 These are time consuming and need trading and software installation

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 Additional cost for web enabled features
 Responsibility of data as well as system comes on the owner
 IT expert required for attending problems.
The local server based systems are expensive as well as complicated that need to keep
updated software. The upgradation often needs to be purchased which are expensive yet less
frequent. These upgradations are more time consuming than that of the cloud based software.
This huge investment and upgradation costs of local server based systems often discourage
the management therefore, they do not upgrade obsolete systems (Verma, Stock and
McCarthy 2012). This decreases the system’s operational efficiency and inhibits the
competitive edge of the property. Inefficiency in management in daily basis offends the
guests and has great impact on revenue.
Along with the expensive cost of hardware and system in the local server based property
management system, the property has to take the technical responsibility of hardware. The
vendors of the system are responsible only for PMS software (Okumus 2013). Such technical
accountability becomes pressure for the property manager. Therefore, the employment of an
IT professional is a mandatory for the local server based systems.
The property is also responsible for data security and back up along with system access
and safety. They are responsible for database security, system access protection, manual data
back-up procedure, hardware damage aa well as theft and disaster recovery protocol for
ensuring the system secured.
Opting for cloud-based system:
The cloud based PMS are deployed over internet. The property management system
software is not installed in the computers of the hotel but can be avail through internet. And

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accessed via a browser. The software and the PMS data are located on the remote servers that
are securely stored in the databases of the vendors.
Technical requirements:
The chief technical requirements of the cloud-based PMS are-
 Workstation or computer
 Internet connection and a back-up connection
In the cloud-based PMS the user feels the system to be program in their computers
though the software can be located remotely as well as data are saved remotely (Boutaba,
Zhang and Zhani 2013). The system and data can be accessed through any computer that is
connected to the internet and even through tablet or smart phone.
The technical resources needed for the cloud-based PMS are maintained by the
vendor. The clients can use these resources that are provided on the basis of demand through
the internet. The vendor charges its clients accordingly. The clients pay for what they use.
This model is therefore, called as SaaS or software as a service.
Advantages:
The chief benefit of the cloud-based property management system that it does not
need expensive hardware and system software therefore the hotel can tremendously save the
IT costs. The hotel does not need to invest on the servers, backup drives and network cable. It
only needs to have computers and internet connection (Wei and Blake 2013). Therefore, the
management do not need to take responsibility for the hardware the all the technical
responsibilities associated with it. There is no need of IT professional as the vendors are
experienced and qualified to take care of all the technical upkeep.

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For cloud-based property management system, the setup is easy and less time
consuming. Whereas the local sever PMS requires more time for taring and installation, the
cloud-based needs no time for installation (Jung and Sim 2012). The training is usually
conducted vial online tutorials or live. The cloud-based PMS gets ready within a week as
SaaS products have centralized as well as communal nature. The problem of upgradation and
of systems can be handled effortlessly by all users and often without any cost.
After the property grows the local server systems need additional licenses but in
cloud-based PMS, the system adapts with the growth of the property. The hotel management
do not need to purchase new server instead they request the system vendor for increased
room inventory allotments (Gorgoglione, Dekorsy and Fettweis 2014). The vendors supply it
through data downloads and additional storage. Beside this, the users can access the system
with no extra cost. For its centralized management with multiple location facility, clod-based
system has become more popular.
Customizability as well as scalability of the functions enables the users to turn on and
of any features. Property-specific customizations have been deployed via a virtual switch by
the individual property.
Cloud-based PMS is an attractive option for the property managers who need a
convenient off-site access, seasonal property managers who take reservations at the time of
closure and businesses that have satellite offices (Xiao, Song and Chen 2013).This handy
feature enables the users in case of computer crashes and staffs can access the system from
another computer or from their smartphones.
Integrated web reservation engines as well as mobile applications are natural
components of this PMS. Online bookings are directed to hotel’s central database that results

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in integrated reservations data. Therefore, eliminates need for separate allocation of inventory
for bookings and manual upgradation of main reservation database.
Disadvantages:
The cloud-based system needs examination but the system vendors offer expertise in
data and system security. This system largely depends on the reliability of the internet
therefore, the cloud PMS vendors need to invest more powerful resources, infrastructures and
procedures for protecting against all online security threat like viruses as well as malwares
and most importantly connection loss. Concerns for connectivity loss and system security are
chief disadvantages of cloud-based PMS (Mishra et al. 2012). Despite the fact that internet
failure is a rare these days, the vendors ensure that system remains online via redundant
Internet connections. Therefore, the researchers recommend that the hotel must set up an
alternative connection and back up plans.
Therefore, from the above analysis it can be concluded that the small hotel
management needs to discuss about the property circumstances and their goals while taking
decisions regarding the selection of PMS for their property. Usage of cloud-based systems
fits logically in this increasing online world with its swift technical movements and highly
sophisticated features. Cloud-based PMS offers an affordable reality therefore has been
applied in small and mid-sized properties.

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