Navigating Risks in PMS Cloud Migration: Protecting Guest Profile Data
Indeed, shifting your Property Management System (PMS) to the cloud could be among the most strategic moves your hotel group makes. However, like any major undertaking, it comes with the caveat to 'Approach with caution!' In this guide, hotel technology experts at dailypoint™ share crucial advice to help you sidestep the most significant risk: the loss of guest profile data.
The Major Risks of Guest Data Loss
Experienced professionals in the hotel technology sector have encountered numerous instances where PMS upgrades have faltered, often resulting in the loss of valuable guest profile data accumulated over years—data including stay histories, preferences, and behaviors. This information is essential to deliver a personalized, high-quality guest experience during every stay.
Understanding the Impact of Data Loss on CRM and Loyalty Programs
While transferring guest profiles to a new PMS is standard practice, crucial details are frequently omitted during the process. Dr. Michael Toedt, CEO of dailypoint™, emphasizes the severe implications of such omissions: "The thought of losing detailed guest profiles is unsettling. In today's era, where post-pandemic guests demand individualized treatment, missing out on delivering personalized offers and settings can disappoint them severely, affecting their likelihood to return."
Unsatisfied guests may choose other options, impacting your hotel's financial performance through lost repeat business. Moreover, in the digital age, their grievances may quickly spread across online review platforms, tarnishing your hotel's reputation.
Broader Implications of Data Loss During PMS Upgrades
The repercussions of losing guest profile data extend beyond damage to reputation and financial losses. The operational setbacks can range from missing reservation details to manual data entry errors during the transfer process, complicating your PMS upgrade. This can disrupt sales and marketing efforts, preventing personalized communication and halting all outbound communications until guests re-opt into services.
Additionally, legal issues may arise if outdated or inaccurate data is transferred to the cloud, risking breaches of data protection laws and potential legal consequences. While a cloud-based PMS enhances compliance with regulations like GDPR and CCPA, compliance is contingent upon the integrity of the data transferred—a responsibility that ultimately rests on your shoulders, not the vendor's.
As the saying goes: “Fail to plan and you plan to fail.”
So, our first piece of advice is: do not rush into a PMS cloud upgrade. Take your time. There are several processes that are imperative to follow before and during the transfer. Here are our recommendations.