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Hotel PMS in the Cloud: A new breed of consumer sparks digital disruption

May 22, 2017

 

When it comes to digital disruption, the question for savvy hotel operators is no longer whether it will happen — because it is happening. The question has become, “What are we going to do about it?” The answer lies in a migration from legacy systems to cloud platforms and cloud solutions and services, which has been a trend in the hospitality vertical over the past few years. Where the hotel property management system (PMS) is concerned, the need for such a transition is urgent.

Why? Consumer habits have shifted to be increasingly mobile and digital. More and more, verbal communication is out and digital interaction is in. Intended purchases — of not just merchandise, but also hotel accommodations and amenities — are researched and often finalized online. Using the telephone to plan and book travel, whether through a vendor or with a travel agent, is now the exception rather than the rule. As Info-Tech Research Group’s Hotel Property Management (HPMS) Vendor Landscape report reveals, “Making reservations through mobile devices…is becoming more and more critical in appealing to customer booking preferences.” The customer experience is now highly digital, and cloud PMS comprises the technology backbone hoteliers require to participate in as well as capitalize on this digital transformation.

Just consider the statistics. According to Nielsen, Americans now own an average of four digital devices, and the typical U.S. consumer spends 60 hours per week consuming digital content. Research released by eMarketer in 2016 indicates that 52% of all travel reservations are made online each year, and 65% of same-day hotel reservations are made from a smartphone. A study published by The Demand Institute in February 2017, revealed that “connected spenders” will account for 46%, or $260 trillion, of global consumer spending over the next decade.

Cloud strategist Victor Wolters, a member of the strategic advisory team at technology consultancy Perficient, Inc., believes that cloud PMS adoption is the next logical step for hoteliers — regardless of size — to remain competitive in the digital age. “Cloud is playing an ever-larger role in the hospitality market based on its potential to reduce expenditures for servers and other hardware, turn capital expenses into operating expenses, and
provide operators with better access to data and applications,” Wolters says. “This in turn enhances the caliber of guest services.”

JUST WHEN YOU THOUGHT YOU KNEW CLOUD…
The term “cloud” has been floating around for some time. However, there is more to know about cloud than many hotel operators may think. This
ranges from what the technology truly is and how it evolved, to how it differs from hosted hotel PMS. It is also important to examine reasons hotel
operators have shied away from embracing true cloud  hotel PMS solutions and how the cloud hotel PMS tides are finally turning.

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Excerpt from the white paper by Infor & Hospitality Technology Magazine: Taking Digital Transformation by Storm with Cloud PMS

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