Recent headlines from Italy offered a stark reminder of the stakes involved in hotel technology. A data breach at an Italian hotel group exposed the personal documents of over 70,000 guests, a concerning failure of compliance and trust. Disruptive breaches are a symptom of a deeper problem: the continued reliance on outdated platforms. Relying on familiar technology creates a quantifiable business risk that leaders can no longer ignore.
Hoteliers must recognise the deep, strategic risks of inaction in upgrading to a modern, cloud-based PMS solution. What are the hidden costs of maintaining the status quo? And how can a technology migration become a catalyst for profound business transformation?
To explore these questions, we sat down with Jan Mazur, Shiji’s Director of Sales, PMS Europe & Africa. Jan offers a clear-eyed perspective on the challenges and opportunities facing modern hoteliers.
Takeaways
Use a PMS migration as a catalyst to re-engineer core business processes and unlock significant efficiency gains.
Legacy system risks go beyond data breaches, including operational inefficiency, lost revenue, and an inability to innovate.
The cost of inaction is a daily drain from poor integrations, inefficient workflows, and high staff turnover.
The cloud shifts security from direct management to a strategic partnership focused on vetting trustworthy, certified vendors.
View a modern PMS as a hotel’s operating system. Evaluate its entire ecosystem, not just a feature list.
The conversation on risk
How do you frame a legacy PMS as a significant business liability, not just an operational hassle? Aside from the risk of data breaches, what hidden financial and strategic risks resonate most with hotels?
When discussing legacy PMS systems, I emphasize the broader implications beyond just operational inconvenience. Legacy systems often hide significant risks related to inefficiency, high maintenance costs, and a lack of scalability. In many cases, outdated software introduces compatibility problems with newer technologies, resulting in lost opportunities for revenue-generating integrations. The lack of real-time data leads to poor decision-making, reduced guest satisfaction, and even potential reputational damage. Furthermore, continued reliance on outdated systems can restrict a hotel’s ability to innovate, making it vulnerable to more agile competitors. From a financial perspective, the cost of maintaining a legacy system often far exceeds the cost of upgrading or switching to a modern platform, as the total cost of ownership grows with the increasing need for patches, support, and custom solutions.
The cost of inaction
Data breaches in legacy systems led to multi-million-dollar GDPR fines for major hotel groups. What drives change more for hoteliers: the fear of fines or the ongoing costs of legacy systems?
While GDPR fines certainly grab attention, the real drivers of change are often the hidden day-to-day costs of operating legacy systems. Hotels are starting to realize that these outdated systems not only expose them to fines but also cause more persistent issues, such as lost revenue due to poor integration capabilities and inefficient workflows. Higher employee turnover compounds this problem, as staff struggle with clunky, outdated interfaces that hurt their productivity. Modern systems enable seamless integrations with other hotel services, allowing for better operational efficiency and, ultimately, increased revenue. The financial cost of doing nothing is now more obvious—whether through lost revenue, frustrated employees, or lost competitive advantage.
The compliance paradigm shift
Modern cloud platforms shift a hotel’s security approach from in-house management to partnering with vendors and transferring risk. This change affects the role of hotel leadership in cybersecurity. What new questions should GMs or CFOs consider regarding their data security in the cloud?
The shift to cloud platforms dramatically alters the responsibilities of a hotel’s leadership. Instead of managing all aspects of cybersecurity internally, management now needs to focus on selecting trustworthy, compliant partners who handle security. GMs and CFOs should now ask questions like: “What security certifications does the vendor hold?” “How transparent are they about their data protection measures?” and “What are the vendor’s incident response protocols?” With data in the cloud, the risk management responsibility is shared, but the hotel still needs to ensure that its data is handled according to industry standards and regulatory requirements.
The platform as a hotel’s “Operating System”
Modern PMSs are evolving into hotel operating systems, with open APIs acting like app stores for innovation. Do you agree with this? How should PMS evaluation shift from features to assessing a platform’s ecosystem and future potential?
I agree with the analogy of the modern PMS evolving into a hotel’s central operating system. As hotels adopt cloud-native platforms with open APIs, the PMS is becoming the core hub for both operational systems and the entire Digital Guest Journey. The Digital Guest Journey encompasses all touchpoints and interactions a guest has with the hotel, from pre-arrival through to post-departure, and modern PMS solutions play a key role in this. By integrating with other systems like mobile check-in, in-room controls, and personalized services, the PMS helps create a seamless, unified experience for the guest.
When selecting a PMS, hotels should move beyond just comparing features and focus on evaluating the platform’s ability to integrate across this broader guest journey. Does the platform enable easy integration with mobile apps, guest service platforms, and other third-party systems? Is it adaptable enough to scale as new technologies emerge? A strategic evaluation of how well the PMS supports and enhances the Digital Guest Journey is critical to long-term success.
Overcoming migration inertia
Many hotels hesitate to adopt modern platforms due to concerns about cost, complexity, and disruption. What best overcomes technological inertia: a single event, leadership change, or a gradual cultural shift?
The most effective catalyst for overcoming migration inertia is often a combination of events. A major technological shift or a strategic change in leadership can be powerful motivators. However, the most significant driving factor tends to be a gradual cultural shift towards recognizing technology as a key business enabler. Once hotels start viewing technology as a central component of their long-term strategy, the fear of disruption is overshadowed by the desire for efficiency gains and better guest experiences.
The ROI of user experience
How does a modern, intuitive user interface translate into a tangible return on investment for a hotel? Can you connect the dots between a better staff UX, reduced training time, and improved financial performance?
A modern, intuitive user interface (UX) can yield significant ROI by reducing training time, increasing staff efficiency, and improving job satisfaction. A system that is easy to use means less time spent on training and fewer errors made during day-to-day operations. This efficiency leads to better customer service, improved guest satisfaction, and ultimately higher revenue. A seamless, intuitive interface enables staff to focus more on delivering exceptional service and less on troubleshooting software issues, contributing to both operational efficiency and profitability.
Migration as a business catalyst
Is a PMS migration just a tech update, or a chance to re-engineer business processes? Can you provide an example of a hotel that utilized migration to enhance a core workflow and improve efficiency?
Migrating to a new PMS can be far more than just replacing outdated technology—it’s an opportunity for hotels to rethink their core processes. During the migration process, hotels often identify inefficiencies that were previously hidden, prompting a reengineering of workflows that results in improved operational performance. For example, a hotel may streamline its guest check-in process, integrate guest services, and automate routine tasks, which leads to not only improved guest satisfaction but also a significant reduction in costs and a more agile operation overall.
The future of data, personalization vs. privacy
The idea of a ‘single guest profile’, a comprehensive view of the guest, is essential for hyper-personalization. As hotels gather more data for these profiles, how can management balance the need for personalization with consumer and regulatory data privacy concerns? What role do vendors play in helping hotels navigate this challenge?
Balancing personalization with privacy is becoming increasingly challenging as hotels gather more data. Hotels must ensure that their data practices are fully compliant with GDPR and other data protection laws. The key to navigating this balancing act lies in transparency and consent: guests must be fully aware of what data is being collected, how it will be used, and how it will be protected. Vendors must help hotels by offering secure platforms, providing tools for obtaining and managing consent, and ensuring that guest data is stored and processed in compliance with all relevant privacy regulations.
Securing the connected hotel
A ‘connected hotel’ is be filled with IoT devices, from smart locks and thermostats to predictive maintenance sensors. How does a centralized, cloud-native PMS manage security risks from third-party IoT devices?
As hotels increasingly adopt IoT devices like smart locks and thermostats, the risk of cybersecurity breaches grows. A cloud-native PMS helps by acting as a centralized system that can monitor, manage, and protect these devices through secure, encrypted connections. Hotels must ensure that IoT devices are securely integrated into their broader IT infrastructure, and the PMS should provide visibility into all connected devices, enabling timely security patches and software updates to mitigate potential vulnerabilities.
The definition of success
One year after a hotel group migrates to a cloud-native platform, what defines success? What key performance indicators, aside from system uptime, indicate that the migration has fulfilled its strategic promise for the business?
Success a year after migrating to a modern cloud-native platform is measured by more than just system uptime. Key performance indicators (KPIs) include increased operational efficiency, improved guest satisfaction scores, and measurable revenue growth driven by better integrations, automation, and personalization. Success also lies in the hotel’s ability to use the new platform as a springboard for innovation—whether through new revenue streams, improved guest loyalty programs, or a more agile approach to guest service. A successful migration should result in a hotel that is better equipped to meet the needs of today’s digital-savvy guests while maintaining flexibility for future growth.
Final words
The conversation around hotel technology has fundamentally changed. A feature-by-feature comparison is no longer sufficient. Decisions must be strategic, focusing on a platform’s ecosystem, integration potential, and its role as a central OS. As Jan Mazur’s insights reveal, the true cost of inaction is staggering. Legacy systems cost revenue, frustrate staff, create compliance risks, and hinder innovation. Migrating from legacy PMS systems is now a matter of when, not if. It is an investment in future viability. This is more than a tech upgrade; it’s a strategic catalyst for improving operations, guest experience, and competitive advantage. For hotel leaders, embracing change is the critical first step to a more resilient, efficient, and profitable future.
About Shiji Group
Shiji is a global technology company dedicated to providing innovative solutions for the hospitality industry, ensuring seamless operations for hoteliers day and night. Built on the Shiji Platform—the only truly global hotel technology platform—Shiji’s cloud-based solutions include property management system, point-of-sale, guest engagement, distribution, payments, and data intelligence for over 91,000 hotels worldwide, including the largest hotel chains. With more than 5,000 employees across the world, Shiji is a trusted partner for the world’s leading hoteliers, delivering technology that works as continuously as the industry itself. That’s why the best hotels run on Shiji—day and night. While its primary focus is on hospitality, Shiji also serves select customers in food service, retail, and entertainment in certain regions. For more information, visit shijigroup.com.
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