On-premise vs. Cloud-based PMS: Which One is Right for Your Hotel?

"Compare On-premise and Cloud-based PMS to find the best fit for your hotel based on budget, security, and management flexibility."

Comparison of the Advantages and Disadvantages of Each Type of PMS (On-premise vs. Cloud-based)

Overview of Both Types of PMS

Today, hotels can choose between two main types of Property Management Systems (PMS): On-premise PMS and Cloud-based PMS. Each type has its own strengths and limitations depending on the hotel’s structure, budget, and management needs.

• On-premise PMS is installed and operated on the hotel’s internal servers. The hotel must invest in software and hardware upfront and maintain an IT team to manage the system.
• Cloud-based PMS is provided via the internet (SaaS – Software as a Service), eliminating the need for on-site servers. It can be accessed from anywhere with an internet connection and updates in real-time.

Comparison of the Advantages and Disadvantages of Both PMS Types

Comparison of the Advantages and Disadvantages of Each Type of PMS (On-premise vs. Cloud-based)

Overview of Both Types of PMS

Today, hotels can choose between two main types of Property Management Systems (PMS): On-premise PMS and Cloud-based PMS. Each type has its own strengths and limitations depending on the hotel’s structure, budget, and management needs.

• On-premise PMS is installed and operated on the hotel’s internal servers. The hotel must invest in software and hardware upfront and maintain an IT team to manage the system.
• Cloud-based PMS is provided via the internet (SaaS – Software as a Service), eliminating the need for on-site servers. It can be accessed from anywhere with an internet connection and updates in real-time.

 

Comparison of the Advantages and Disadvantages of Both PMS Types

Aspect	On-premise PMS	Cloud-based PMS
Cost	High initial investment; requires purchasing software, hardware, and maintenance costs.	Monthly or yearly subscription fees based on the number of rooms and features used.
Flexibility	Limited access; can only be used within the hotel’s network.	Can be accessed from anywhere via a web browser or mobile app.
Security	Data is stored within the hotel, offering full control but posing risks of internal threats.	Data is stored on the provider’s servers with high-security measures in place.
Maintenance	Requires an in-house IT team for maintenance and manual system updates.	Automatic updates from the provider; no need for internal maintenance.
Integration with OTAs & Channel Managers	May require additional software to connect with OTAs.	Direct real-time connectivity with OTAs.
Multi-Property Support	Limited to individual hotels; each property must manage its own system.	Centralized management for multiple properties.
Updates & Development	Requires manual updates and may involve additional costs.	Automatically receives new features and updates.
Compatibility with Other Systems	May have limitations in integrating with third-party software.	Supports API integration for seamless connectivity with other systems.

 

Factors to Consider When Choosing a PMS

1. Budget – If the hotel has a limited budget, a Cloud-based PMS is a better choice as it eliminates hardware costs and maintenance expenses.
2. Hotel Size – Small to mid-sized hotels that require flexibility often choose Cloud-based PMS, while large hotels with dedicated IT teams may prefer On-premise PMS.
3. Data Security – Hotels that need complete control over their data may opt for an On-premise PMS.
4. Integration with External Systems – If seamless integration with Channel Managers, POS systems, and other tools is required, Cloud-based PMS is usually the better option.
5. Ease of Use – Cloud-based PMS generally offers a more user-friendly interface and can be accessed from anywhere.

 

Which Type of PMS is Best for Your Hotel?

• Small to mid-sized hotels (under 100 rooms) or hostels – Cloud-based PMS is recommended as it requires minimal IT investment, is cost-effective, and allows easy management from anywhere.
• Large hotels (over 100 rooms) with complex structures or high-security needs – On-premise PMS is a good choice for controlling internal data and customizing the system.
• Hotel chains with multiple properties – Cloud-based PMS allows centralized management across multiple locations.

 

Conclusion: Which PMS is Best for Your Hotel?

Choosing the right PMS depends on several factors, such as budget, hotel size, data security requirements, and system integrations. If your hotel prioritizes convenience and reducing system maintenance, Cloud-based PMS is the ideal choice. However, if data control and customization are the top priorities, and the hotel has an IT team to support it, On-premise PMS remains a solid option.

 

Contact Information

THRev.co (@Tha City Loft)
📍 2 Soi Ekkamai 6, Sukhumvit 63 Road, Phra Khanong Nuea, Wattana District, Bangkok 10110, Thailand

📞 Tel: +6685 010 9291 (Khun Tar)
📧 E-mail: weyield@threv.co
💬 Line: https://line.me/R/ti/p/%40795lzbhv
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