By Helena Murphy on January 23, 2016 at 10:30 AM
One of the most important considerations when choosing a cloud property management system is cost. How much will it cost to deploy a cloud PMS?
The answer is — it varies, apologies if you thought there was a one size fits all option.
Most cloud PMS providers utilize subscription pricing. The method of determining the subscription fee varies by provider. Some providers charge their fee by the number of property management system users and others charge by the number of rooms or units. Others may charge a percentage of transactions. Either way you will need to budget for these recurring costs on a monthly, quarterly or annual basis
Fees for cloud PMS vary widely, from as low as $1 per unit per month to as high as $18 per unit per month, with everything in between. The variation in costs between systems can sometimes be explained by variations in the following:
- Product sophistication – functionality can range from simple to complex
- Included modules – additional modules may result in additional costs
- Support – availability and access to product assistance
- Development investment – how much does the provider invest into developing new features?
- Integration – available interfaces to other hospitality systems can vary
- Cloud provider – whether the system is a hosted application or leverages a global cloud services provider such as Amazon ECS or Microsoft Azure can impact pricing
In addition to subscription costs for a cloud PMS, you may need to budget for the one-time cost to upgrade your internet access. Cloud PMS can eat up a lot of bandwidth. Also, if it is not already configured, you may also want to budget to isolate your business network from your public/guest network for greater data security.
Each provider will have unique set-up and training costs for their product which can range from under $1000 to over $10,000. Again, your costs will depend on which cloud PMS you choose and your particular hospitality technology needs.
Regardless of the costs for a cloud PMS, there are a few cost savings that you can anticipate. No investment in on premise servers. No need to provide dedicated property IT support. No large initial capital investment.
Whatever your choice of cloud PMS for your hotel, moving to the cloud provides an excellent way to reduce the Total Cost of Ownership of your hospitality technology and is a smart choice for almost every property.
Looking for more information about cloud PMS? Frontdesk PMS moves hospitality to the next generation of property management systems. See how the intuitive user interface can reduce training and how the built for the cloud system can reduce costs by clicking here for a live demo.
Frontdesk Anywhere provides next-generation, native cloud hotel technology including PMS, POS, Reporting and more. The first step to moving to new technology is to contact solution providers and schedule a demonstration. Call us today to schedule a live demo.