Choosing the right hotel sales software can significantly impact your business operations, sales, and growth. Here’s a quick breakdown of cloud-based vs. legacy systems to help you decide:
- Cloud-Based Systems: Accessible from anywhere, automatic updates, lower upfront costs, better integration with other tools, and enhanced security with remote backups.
- Legacy Systems: On-site data storage, manual updates, higher upfront costs, limited integration, and vulnerability to local server issues.
Quick Comparison
| Feature | Cloud-Based Systems | Legacy Systems |
|---|---|---|
| Data Access | Remote, any device | On-site only |
| Updates | Automatic | Manual |
| Integration | Easy with modern tools | Limited |
| Cost Structure | Monthly subscription | High upfront costs + maintenance |
| Data Security | Encrypted backups, failover systems | Vulnerable to hardware issues |
| Setup Time | 48 hours | Weeks to months |
| Scalability | Flexible and instant | Limited by physical infrastructure |
Key takeaway: Cloud-based systems are ideal for modern, scalable, and efficient hotel operations, while legacy systems may suit businesses with simpler, localized needs. Choose based on your hotel’s growth plans, budget, and operational requirements.
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Cloud vs. Legacy: Core System Differences
Understanding the key differences between cloud-based and legacy hotel sales systems sheds light on how they impact daily operations. These differences influence everything from basic functionality to the ability to grow and adapt over time.
System Setup and Maintenance Comparison
When it comes to setup and maintenance, the contrast between the two systems is clear. Legacy systems demand physical installation and frequent on-site upkeep, while cloud-based solutions are designed for quick setup and minimal maintenance.
| Feature | Cloud-Based Systems | Legacy Systems |
|---|---|---|
| Initial Setup | Ready to use within 48 hours | Requires physical installation and configuration |
| Data Storage | Remote servers with encrypted backups | Local servers on hotel premises |
| System Updates | Automatic updates | Manual updates requiring technician visits |
| Hardware Requirements | Works on various devices | Specific hardware dependencies |
| Maintenance Needs | Minimal, handled by provider | Regular maintenance required |
| Scaling Capability | Flexible subscription adjustments | Limited by physical infrastructure |
These differences don’t just affect setup and maintenance – they also shape how teams connect and work with these systems on a daily basis.
Access and System Connection Options
Cloud-based systems revolutionize access, offering remote control and seamless integration capabilities that legacy systems simply can’t match.
"Legacy CRM systems are traditional CRM systems that must be physically located on the premises of your hotel because information is stored on an intranet on local servers." – Eva Lacalle
With cloud systems, staff can manage properties from anywhere using a variety of devices. These systems also integrate smoothly with other hotel management tools, making them ideal for hotels with multiple locations. They ensure consistent collaboration and communication across properties.
Additionally, cloud solutions provide features like e-signatures and mobile access, which are increasingly in demand by event planners. These tools allow faster contract processing and more efficient sales workflows, unlike legacy systems that struggle to integrate with modern management tools.
As hotels continue their digital transformation, the demand for scalable and flexible solutions makes cloud-based systems an appealing choice for today’s industry needs.
Sales Team Performance and Workflow
The effectiveness of sales software in improving team efficiency and boosting revenue can differ greatly between cloud-based and legacy systems. With modern hotel operations requiring fast responses and smooth collaboration, selecting the right system becomes a key factor in driving sales success.
Live Updates and Task Automation
Cloud-based systems simplify workflows by automating tasks and providing real-time updates. Research shows that front-desk efficiency can increase by 24%, while human error rates drop by 31% when using cloud solutions.
| Task Type | Cloud-Based Systems | Legacy Systems |
|---|---|---|
| Data Entry | Automated synchronization across channels | Manual input required |
| Rate Updates | Real-time pricing adjustments | Manual updates needed |
| Inventory Management | Automatic updates across booking channels | Individual channel updates |
| Night Audit | Continuous automatic updates | Manual nightly process |
| Performance Tracking | Real-time dashboard insights | Periodic manual reports |
Cloud systems also use data analytics to adjust room rates instantly across all distribution channels. This ensures consistent pricing and availability across OTAs, GDS, and direct booking engines.
Team Communication Tools
Cloud platforms go beyond automation by improving communication within and between properties and departments.
"By embracing integrated tools for crafting proposals, overseeing contracts, and orchestrating events, your sales team can ensure fluid communication and collaboration with planners".
Some of the key benefits of cloud-based communication tools include:
- Mobile access for managing tasks on the go
- Seamless integration across departments via open APIs
- User-friendly interfaces that reduce the time needed for training compared to legacy systems
For operations spanning multiple properties, cloud solutions offer centralized data access and standardized workflows. A great example is the Visual Matrix PMS, which features a Mobile Operating Platform (MOP) that streamlines communication between front desk, housekeeping, and maintenance teams.
Costs, Upkeep, and Data Protection
Price Comparison: Setup vs. Monthly Fees
Legacy systems often come with steep upfront costs, while cloud-based systems spread expenses into predictable monthly payments.
| Cost Component | Legacy Systems | Cloud-Based Systems |
|---|---|---|
| Initial Hardware | $5,000–$15,000 per server | No hardware needed |
| Backup Systems | ~$2,000 | Included in subscription |
| Software Licensing | ~$1,500 per server + user fees | Included in subscription |
| Monthly Fees | 3–5% of gross revenue (base fee) | $300–$1,000 |
| IT Staff Costs | Requires in-house team | Minimal IT support required |
| Total First-Year Setup | ~$25,000 (for 2–3 servers) | $3,600–$12,000 |
Cloud-based systems replace large upfront investments with manageable ongoing costs. While cost is a key factor, ensuring strong data protection is equally important for seamless hotel operations.
Data Safety and System Protection
Data security is a top priority for hotels when choosing software. Cloud-based systems offer advanced protections like encryption, automated backups, and failover systems to maintain uninterrupted service.
Key points to consider:
- Data Storage and Backup
Cloud systems store data on secure remote servers, protecting it from hardware failures, viruses, and other risks. On the other hand, legacy systems, which rely on on-site storage, face higher risks of data loss due to hardware issues, theft, or physical damage. - Security Updates
"Legacy systems are more difficult to keep updated because enterprises may have to go around to several hundred thousand platforms to check and update security systems. It’s easier for legacy systems to fall behind"
- System Reliability
Cloud platforms use failover mechanisms to ensure consistent service, whereas legacy systems often require manual fixes during outages, leading to potential disruptions.
Hotels embracing cloud technology benefit from these security features, along with more predictable costs, making the shift an attractive choice.
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System Flexibility and Growth Options
Growth and Size Management
Cloud systems can scale much faster compared to traditional setups. This allows businesses to adjust quickly to new demands while keeping costs under control.
| Growth Factor | Cloud-Based Systems | Legacy Systems |
|---|---|---|
| Resource Adjustment | Real-time scaling | Fixed capacity |
| Additional Properties | Immediate integration | Limited expansion |
| Cost Impact | Usage-based pricing | High upfront investment |
| Implementation Time | Hours to days | Weeks to months |
Cloud platforms are particularly effective in handling seasonal fluctuations or business growth. Their ability to manage resources dynamically and integrate seamlessly is crucial for modern hotel operations.
Connecting with Other Hotel Systems
As hotels grow, ensuring all systems work together becomes essential. Cloud-based systems stand out here, thanks to their open API infrastructure, which simplifies integration with other software.
Richard Valtr, founder of Mews, explains:
"What you see as a bigger trend is hotel companies wanting to integrate with systems that their PMSs weren’t initially built for. Many PMSs weren’t built for that robustness. So, we don’t try to limit the kinds of integrations that you can do with our platform."
Here’s how integration capabilities vary:
- Cloud-Native Solutions
- Offer access to over 1,000 marketplace integrations.
- Enable real-time data sharing across systems like:
- Property Management Systems (PMS)
- Revenue Management Systems (RMS)
- Customer Relationship Management (CRM)
- Online booking platforms
- Legacy Systems
- Require custom middleware for connections.
- Often need complex interface adjustments.
Ulrich Pillau, founder and CEO of Apaleo, highlights the advantage of cloud systems:
"Instead of putting partial APIs on top of the PMS software, any function in our API-first platform is available immediately to any third party to use for integrations – it is 100 percent API availability."
This API-driven approach enables businesses to build a connected technology ecosystem that evolves alongside their needs, ensuring smooth operations and consistent data flow.
How to Choose Your Hotel Sales System
System Selection Checklist
When selecting a hotel sales system, it’s important to evaluate both your current operations and future needs.
"Honestly, nobody knows what the world will look like in three to five years, especially in a world like today, so you need to expect everything. We don’t know the unknowns."
| Assessment Area | Cloud-Based Systems | Legacy Systems |
|---|---|---|
| Current Tools | Check integration with existing software | Ensure compatibility with older systems |
| Workflow Analysis | Look for automation opportunities | Identify manual process dependencies |
| Growth Plans | Evaluate scalability for future expansion | Factor in upgrade constraints |
| Implementation | Quick setup (days to weeks) | Longer setup (weeks to months) |
| Data Security | Includes automatic updates and built-in security | Requires custom setup and manual updates |
Start by reviewing your current technology. This helps you:
- Keep tools that are essential to your operations
- Fix inefficiencies in your processes
- Remove unnecessary systems
- Ensure compatibility with other software
After this, test how different systems handle real-world hotel scenarios to see which fits best.
Common Hotel Scenarios
Hotels have varying operational needs, and the right system should address those effectively. Here’s how cloud-based solutions perform in common situations:
- Rapid Growth Hotels
For hotels experiencing fast expansion, cloud-based systems can scale instantly. They allow for quick integration of new properties and provide flexible resource allocation without major upfront investments. - Multi-Property Operations
Managing multiple locations is easier with cloud systems. They centralize data, standardize processes, offer unified reporting, and enable real-time performance tracking across all properties. - Technology Modernization
Hotels upgrading from older systems benefit from smoother operations, better guest experience features, dynamic pricing tools, and improved management of distribution channels.
When adopting a new system, focus on solutions that:
- Are easy to set up
- Have user-friendly interfaces
- Offer thorough training resources
- Integrate well with existing tools
- Show clear potential for generating a return on investment (ROI)
Making Your Final Choice
Choose a hotel sales system that aligns with your business goals. Michael Heinze, Chief Architect and Managing Director at Shiji Group, explains:
"The crucial aspect for a hotel is to genuinely comprehend its current operations and envision how it wants to function in the next five years…Hoteliers must be cautious not to become complacent with outdated processes and instead consider how operations could run if there were no constraints on updating existing systems."
Here’s a comparison of key decision factors to consider:
| Factor | Cloud Impact | Legacy Impact |
|---|---|---|
| Security | Automatic updates, frequent checks | Manual updates required |
| Access | Remote work, mobile capabilities | Restricted access |
| Cost | Monthly subscription ($8+ per room) | High upfront costs ($30,000-$50,000/year) |
| Integration | Easy connection with modern tools | Limited integration options |
| Maintenance | 95% remote support resolution | On-site technician visits needed |
These factors highlight the importance of selecting a system that adapts to your business needs over time. Paris Baguette’s growth strategy is a great example:
"We’re in a position now where we’re looking at aggressive growth mode – scaled to 1,000 units in the US in the next 10 years. When I look at, ‘How do we do that?’ we need to get to a place we’re leveraging technology solutions that allow us to scale at that pace quickly and that allows us to use mobility."
This underscores the need for a system that grows with your business.
When evaluating options, focus on systems that:
- Support mobile operations and integrate easily with tools like payment systems, accounting software, and channel managers.
- Provide strong security features to protect your data.
- Scale with your business without requiring frequent, costly overhauls.
As Heinze advises:
"Don’t get sidetracked by products with hundreds and hundreds of feature points: as a leader, you need to have your top three or top five objectives to be achieved in the next five years and select which vendor has the best capability to fulfill your chosen objectives for this time frame."
FAQs
What are the main benefits of using a cloud-based hotel sales system instead of a legacy system?
Cloud-based hotel sales systems offer greater flexibility, scalability, and integration capabilities, making them ideal for modern hotel operations. Unlike legacy systems, cloud solutions are accessible from anywhere with an internet connection, allowing teams to collaborate seamlessly in real time.
These systems also provide automatic updates, ensuring you always have the latest features without manual intervention. Additionally, they are generally more cost-effective, as they reduce the need for expensive hardware and maintenance. With enhanced data security and reliable storage, cloud-based solutions deliver a smarter, more efficient way to manage hotel sales workflows.
How do the costs of cloud-based hotel sales software compare to those of legacy systems?
Cloud-based hotel sales software typically operates on a subscription-based pricing model, often requiring a monthly or annual fee. This structure usually includes updates, maintenance, and support, which can reduce unexpected costs. In contrast, legacy systems often involve a higher upfront investment for hardware, installation, and licensing, along with ongoing expenses for maintenance and upgrades.
While cloud solutions may appear more affordable initially due to lower startup costs, the total cost of ownership (TCO) over time depends on factors like the size of your operation, the system’s scalability, and your specific needs for customization. Carefully evaluating these aspects can help you decide which option aligns best with your budget and long-term goals.
What should hotels consider when choosing between cloud-based and legacy systems for managing multiple properties?
When deciding between cloud-based and legacy systems for managing multiple hotel properties, it’s important to evaluate key factors like scalability, cost, and data accessibility.
Cloud-based systems are highly scalable, making them ideal for expanding operations across multiple properties. They often have lower upfront costs with subscription-based pricing and allow remote access to data from any device with an internet connection. On the other hand, legacy systems typically require a higher initial investment, store data locally, and may not easily adapt to growing business needs.
Additionally, cloud systems integrate seamlessly with other tools and receive automatic updates, while legacy systems might require more manual maintenance. For hotels managing multiple properties, cloud-based solutions often provide better flexibility, efficiency, and collaboration opportunities.