Question:
If you were starting a small Boutique Hotel, would you decide to use a Cloud-based or local server-based Property Management System? Justify your decision with reference to the academic literature.
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.
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.
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.
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.
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-
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.
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 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.
The chief technical requirements of the cloud-based PMS are-
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.
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.
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 in integrated reservations data. Therefore, eliminates need for separate allocation of inventory for bookings and manual upgradation of main reservation database.
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.
References:
Boutaba, R., Zhang, Q. and Zhani, M.F., 2013. Virtual machine migration in cloud computing environments: Benefits, challenges, and approaches. Communication Infrastructures for Cloud Computing, pp.383-408.
Cohen, J.F. and Olsen, K., 2013. The impacts of complementary information technology resources on the service-profit chain and competitive performance of South African hospitality firms. International journal of hospitality management, 34, pp.245-254.
Gorgoglione, M., Dekorsy, A. and Fettweis, G., 2014. Benefits and impact of cloud computing on 5G signal processing.
Jung, G. and Sim, K.M., 2012. Location-aware dynamic resource allocation model for cloud computing environment. In International Conference on Information and Computer Applications, IPCSIT (Vol. 24, pp. 37-41).
Law, R., Leung, D., Au, N. and Lee, H.A., 2013. Progress and development of information technology in the hospitality industry: Evidence from Cornell Hospitality Quarterly. Cornell Hospitality Quarterly, 54(1), pp.10-24.
Mishra, M., Das, A., Kulkarni, P. and Sahoo, A., 2012. Dynamic resource management using virtual machine migrations. IEEE Communications Magazine, 50(9).
Mo Kwon, J., Bae, J.I. and Blum, S.C., 2013. Mobile applications in the hospitality industry. Journal of Hospitality and Tourism Technology, 4(1), pp.81-92.
Okumus, F., 2013. Facilitating knowledge management through information technology in hospitality organizations. Journal of Hospitality and Tourism Technology, 4(1), pp.64-80.
Rodríguez-Antón, J.M., del Mar Alonso-Almeida, M., Celemín, M.S. and Rubio, L., 2012. Use of different sustainability management systems in the hospitality industry. The case of Spanish hotels. Journal of Cleaner Production, 22(1), pp.76-84.
Verma, R., Stock, D. and McCarthy, L., 2012. Customer preferences for online, social media, and mobile innovations in the hospitality industry. Cornell Hospitality Quarterly, 53(3), pp.183-186.
Wei, Y. and Blake, M.B., 2013, March. Adaptive service workflow configuration and agent-based virtual resource management in the cloud. In Cloud Engineering (IC2E), 2013 IEEE International Conference on (pp. 279-284). IEEE.
Xiao, Z., Song, W. and Chen, Q., 2013. Dynamic resource allocation using virtual machines for cloud computing environment. IEEE transactions on parallel and distributed systems, 24(6), pp.1107-1117.
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