Thursday 27 March 2014

Hotelogix: The cloud computing solution to hospitality?

In 2008, Prabhash Bhatnagar has an idea to streamline the organisation of small and medium-sized hotels by starting up his company Hotelogix.  Hotelogix is a cloud-based solution for hospitality businesses aimed at simplifying many aspects of a hotel, such as: front desk management; point of sales management; housekeeping management; and integrated distribution.  Furthermore, they provide a solution with a goal to increase the number of distribution channels used by a hotel, which should help the hotel to increase their distribution and boost sales.


Based in New Delhi, India, Hotelogix now has offices in Bangalore and California, USA.  They have also expanded globally places such as: Nigeria, Germany, Nepal, India, Cambodia, Philippines, Argentina, etc...  The companies in the countries mentioned above have partnered with Hotelogix to sell their services on their behalf.  This means that Hotelogix has very effectively increased its number of distribution channels and their access to worldwide markets.  It is also interesting to note that this has all been done in a very short space of time, as mentioned previously, Hotelogix has only been around since 2008.


Yesterday it was announced on the travel website Travolution that Hotelogix was urging UK hoteliers to switch to cloud-based management systems rather than continue using legacy management systems.  To teach the UK hotelier market the advantages of switching to cloud-based technology and more about the Hotelogix product, the company has decided to organise a series of webinars and offer a two-week trial of their solutions.  In addition to advantages that cloud-based systems can offer, we believe that UK hotels should adopt these kind of solutions as forecasts by PwC for 2014 indicate that competition is increasing.  Small and medium hotels have much to gain from moving towards more cloud-based management.      

Image courtesy of KROMKRATHOG / Freedigitalphotos.net

There are many advantages that can be linked to using cloud-computing rather than legacy systems in a hospitality context.  In our opinion, one of the main advantages of using cloud-based management systems is that they can communicate effectively and easily with travel agencies online.  Generally, legacy systems do not have the required ability to do this, which we believe to be a major weakness in these systems.  Moreover, another important advantage is that the solutions offered by Hotelogix allow hoteliers to easily manage all their hotel operations, as these are in constant communication with one another through the cloud.


There are however some disadvantages to using cloud-computing.  If the systems were to fail for any reason, data could be lost and/or irretrievable.  If such a thing were to happen, this would be a large loss, especially if it were to happen to a small independent hotel.  Furthermore, another weakness lies in the question of security.  How safe is the data saved in the cloud?  Should the systems be hacked into, sensitive and confidential information could be made public and used by the wrong people.  Finally, more in-line with Hotelogix’s offer, we believe that a 15-day free trial is not long enough for a hotel to completely test a new system out.  Considering the steep monthly prices of the solutions (for 45 rooms, you pay $135/month for the Property Management System), hoteliers who have never used cloud systems before should be able to test the systems out for a longer period of time.  Otherwise they would need to have someone on their staff that is adept with cloud-computing software.


In a world where IT and technology is developing, at first sight this solution appears to be perfect for all hospitality businesses.  In our opinion, properties should nevertheless consider whether to switch to cloud management systems or not.  As mentioned above, there are both positive and negative points linked to this change which need to be weighed against each other carefully. 

Alexis & Melanie


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