Next-Gen Hospitality: Transform Your Hotel with a Cloud PMS in 2025

The market size of hotel PMS stands at USD 3.92 billion in 2024. It's expected to increase to USD 8.45 billion by 2033. 

This means that Property management systems hold a significant market share in the hospitality segment, with 27.7% market share.  

Every hotel owner, whether mid-size property or bigger chain, is investing in hotel PMS or adopting cloud-based solutions to create a competitive edge in market. 

PMS is no longer just a nice-to-have option. It has become a must-have for budget-sized properties and large hotel chains. 

Many hoteliers still rely on legacy (on-premises) systems because they're cost-effective and tried-and-tested.  

Bad part?

• These systems are outdated.  
• Can’t be integrated with external systems.  
• User interface is clunky and unintuitive and 
• Can't meet the evolving needs of users 
• Maintenance cost is high 
• Training the hotel staff increases time and cost 

Note - The key is not having PMS; it's about choosing the right PMS.

Why 2025 is the year for hoteliers to upgrade their legacy PMS?

1. Labour shortages

Unlike other industries, hospitality records the highest staff turnover.  

According to the American Hotel and Lodging Association,76% of surveyed hoteliers identified staff shortage as a significant issue. This created pressure on existing hotel staff, as they were unable to operate at full capacity. 

With such increased staff turnover, manual operations aren't just causing you revenue leakage; they're also costing you talent. A report states that 38% of employees cite a wrong PMS or legacy software as the primary reason for leaving their job. 

Solution: Switch to a cloud-based PMS to eliminate manual processes and prevent your hotel staff from being overwhelmed with repetitive tasks. 

2. Guest expectations are on cloud nine this time

Today, guests don't want you to control their stay; rather, they want everything to get done within a few clicks. They want convenience on top of everything and expect hoteliers to use mobile and contactless technology for smooth check-in and check-out processes.  

As hoteliers worldwide face a labour shortage, they are finding technology integrations to be a worthwhile option. 

Oracle conducted a survey, and the findings indicate that 39% of travellers are seeking fully contactless experiences for nearly all basic transactions, including check-in/check-out, food and beverages, and room key access. 

They want everything to be integrated into their phones, allowing them to check in and check out at their own pace, unlock the room with digital keys, and enjoy personalized experiences.   

What's the use of offering services if you can't personalize guest experience? That's where data comes into the picture, but legacy PMS lacks this functionality.  

3. Cloud offers cost-effectiveness over legacy

Modern cloud-based PMS saves money. On-premises systems require costly investments and regular software upgrades, including software licensing fees, staff training, and annual maintenance costs. 

Cloud PMS offers an economical solution through subscription pricing instead of upfront investment. The cost gets spread over time. 

Implementing legacy systems typically takes 30-40 days, whereas cloud PMS setup is faster with lower overall costs. 

Once deployed, you can make your property live and scale it based on your needs. 

4. Legacy systems are more prone to security threats and downtime

Technology integrations are crucial in 2025, as a data breach doesn’t just result in operational inconvenience, but it also comes with other downfalls, such as lost revenue and damaged reputation.  

Hackers love hotels because they handle sensitive guest information, including credit card numbers and passport details.  

Recently, a hospitality brand in Italy experienced a massive data breach that exposed the personal documents of over 70,000 guests. This is because the hotel relied on an outdated, legacy PMS solution.  

That's why hoteliers must comply with regulations like GDPR in Europe and CCPA in California, as non-compliance not only results in a million-dollar fine but also leads to frustrated guests and a damaged business reputation. 

Note: For hotels handling hundreds or millions of guests, investing in a modern PMS can be a game-changer due to its numerous features. These include AI-driven security, encryption, and strong security measures (multi-factor authentication) that keep your guests' data safe. 

 5. Legacy systems are falling behind

The hospitality industry has evolved significantly over the last 5 years. If you're still relying on outdated legacy applications, you risk losing your competitive edge.  

Bad part? Legacy systems lack advanced features like an AI-driven pricing engine, forcing the revenue manager to manually update room prices based on competitor rates and market trends. 

Additionally, legacy PMS lacks mobile accessibility. For updating room status, staff have to use desktop computers since the old system doesn't support mobile devices. 

What game-changing benefits does Cloud PMS offer for your hotel in 2025?

While legacy systems have dominated the hospitality market for some time, to remain competitive in the current era, you need to adopt cloud-based systems in 2025.  

Its adoption is increasing rapidly, and one study states that 68% of hospitality companies have switched to cloud-based property management systems.  

Let's talk about the top reasons why every hotelier should upgrade to modern PMS -

1. Enhances guest experience

When technology is there, why not create those distinctive and personalized touches for them?  

Through modern property management systems, hotels can manage their guest profiles with ease, no matter which type of traveller they cater to (corporate traveller, travel agent, or family traveller).   

This way, hoteliers can use guest details such as their booking history and preferences to personalize their offerings. Whether it's setting the desired room temperature or giving guests their favourite bottle, it's all about making guests feel personalized and more valued. 

2. Streamlines reservation and housekeeping tasks

The core purpose of implementing cloud-based PMS for hotels is to manage your reservations, housekeeping, and payment details in one place. 

As it's cloud-based, you can view updates on room availability, track bookings, and manage check-ins and check-outs through a single dashboard. 

Everything synchronizes in real time, so you can access reservation information across all channels. This avoids double bookings because when a guest makes a reservation through any channel, availability and rates are updated everywhere. 

When guests cancel or change their bookings, staff know in advance as the system displays current availability, even if there's only one room available for a specific day. This means even if the guest ghosted you, you could still upsell that room and recover your revenue. 

3. Cost-effective for the long term

Investing in a subscription-based model, such as cloud PMS, avoids such an upfront investment.  

Operating these systems requires less money as everything is managed in the cloud. If there are any downtime issues, the service provider is responsible for that.  

Also, these cloud-based solutions can be accessed anytime, anywhere, so there will be no additional investment and maintenance expenses.   

4. Automates reporting and provides in-depth insights

Cloud-based hotel PMS excels not only in storing reservations and guest details but also in report creation. Gone are the days when hoteliers had to manually create reports on revenue, occupancy, night audit and financial insights. 

This not only cuts the manual time, but it also helps hoteliers make data-driven decisions in real time.   

5. Flexibility

Whether you're running a boutique property or a large hotel chain, a cloud-based PMS system is a good fit for your requirements as it offers scalability. 

No matter how many properties you add to the dashboard or how many users you can add, hotel PMS can be easily scaled up or down depending on your requirements. 

6. Improves your operational efficiency

Cloud-based PMS systems make your hotel staff more operationally efficient, as everything can be scheduled automatically. No longer need to spend time on tasks such as room assignments, arrival checklists, and room cleaning.  

Here's how cloud PMS makes your staff more efficient than yesterday -

• There will be faster check-ins as the front desk staff can access the reservations quickly and verify guest details.  
• Room status, housekeeping, and maintenance tasks will be updated automatically. Thus, there will be no manual errors.  
• No need to compile spreadsheets as the system generates detailed reports on occupancy, revenue, and performance metrics.  
• Everything is centralized as PMS is connected with POS, booking engine, and other tools to avoid double bookings.  

How can BOTSHOT help you transform your hotel operations today?

Whether you're a single property small hotel or running multiple properties, BOTSHOT offers an affordable PMS that helps you manage daily operations and revenue from a single dashboard.  

Here's how BOTSHOT PMS is designed to meet the needs of modern hotels -

• Sends three automated payment reminders to guests. So, guests won't forget about it.  
• Hotel PMS is integrated with eFrontDesk, enabling guests to check in express, upload documents digitally, and bypass the front desk queue.  
• PMS is integrated with WhatsApp, meaning you can connect with guests, send them payment reminders, and share add-ons  
• Provides free integration support so you can manage your hotel operations smoothly with no hidden fees.  

FAQs

Q. What are the risks of staying on legacy software?

Ans. Legacy software can turn your hospitality business into a liability because of the following reasons -  

• Relying too heavily on outdated technologies can lead to losing market share. Your competitors will innovate and capture a larger share of the market revenue.  
• The maintenance cost of a legacy system far exceeds the cost of upgrading to a new cloud PMS.  
• Since legacy systems are not secure, there will always be a fear of data breaches and, consequently, a loss of reputation. Plus, the fines you need to pay will be higher.  

Q. How does cloud PMS boost revenue and guest retention?

Ans. Cloud-based PMS provides in-depth reports as to how your hotel business is performing. This way, you can gain granular-level insights, including occupancy rates, revenue sources, and booking trends.  

Also, as hotel property management systems store guest details, this becomes easy to tailor their services accordingly. It can suggest room upgrades, spa treatments, or other ancillary services to earn revenue.