The American Journal of Engineering and Technology
38
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TYPE
Original Research
PAGE NO.
38-52
10.37547/tajet/Volume07Issue08-05
OPEN ACCESS
SUBMITED
23 July 2025
ACCEPTED
29 July 2025
PUBLISHED
07 August 2025
VOLUME
Vol.07 Issue 08 2025
CITATION
Vishesh Goel. (2025). From Concierge to Cloud: Reimagining Hospitality
Through SaaS-Driven Experiences. The American Journal of Engineering
and Technology, 7(8), 38
–
52.
https://doi.org/10.37547/tajet/Volume07Issue08-05
COPYRIGHT
© 2025 Original content from this work may be used under the terms
of the creative commons attributes 4.0 License.
From Concierge to Cloud:
Reimagining Hospitality
Through SaaS-Driven
Experiences
Vishesh Goel
Product Manager, HotelKey Inc, USA
Abstract:
Cloud-based Software-as-a-Service (SaaS)
solutions are transforming the hospitality sector at a fast
rate. They enable delivering services 30% faster and
boosting guest satisfaction by 25% by means of real-
time personalization and automation. This paper
examines how SaaS impacts operational efficiency,
guest experience, alignment with ESG, and strategic
agility in the hospitality sector. With increasing
customer demands and sustainability regulations, hotel
brands are moving away from legacy systems to new,
subscription-based solutions that are simple to scale and
less
environmentally
unfriendly.
This
paper
demonstrates, via a literature review, comparisons, and
actual cases such as HotelKey, CitizenM, and Marriott,
how SaaS in hospitality enables agility, digital inclusion,
and ethical conduct in a post-pandemic world.
Keywords:
SaaS, Hospitality, ESG, Cloud Technology,
Guest Experience, Operational Efficiency
I. Introduction
Long set of legacy. Hardware-based systems in the
hospitality sector have existed over time, incompatible
with the tastes and preferences of the tech-savvy
tourist. As travelers request more mobile, fast
personalization, and frictionless service, hotels and
resorts have to adapt at an accelerated pace. As a
parallel pressure, climate change, diversity, and data
management legislation are putting further demands on
the sector, so it is critically important that companies
become aligned to Environmental, Social, and
Governance (ESG) standards (McKinsey & Company,
2022).
Cloud-based Software-as-a-Service (SaaS) solutions are
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now major helpers in this regard. SaaS, in contrast to on-
premises-installed applications, supports flexible,
modular, and data-driven operations with a much-
reduced environmental impact (Accenture, 2020). SaaS
solutions are no longer just a technology upgrade but
are now considered an underlying tool for hospitality
businesses that aim to provide digital as well as ethical
value.
This research is conducted to study the transformation
brought on by cloud-based SaaS in the hospitality
landscape. The following study focuses on four crucial
areas:
1.
Using real-time data and automation to increase
the efficiency of operations.
2.
Personalizing
guest
experiences
through
integrated digital tools.
3.
Aligning with ESG frameworks for sustainable
long-term development.
4.
Enabling competitive agility in an increasingly
digitized and consumer-driven market.
All the while, the foremost situation continues to be in
hotel chains and resort operations, but the findings can
be applied to related sub-sectors such as travel tech,
upscale accommodations, and boutique hospitality
providers.
The following are the research questions that will help
direct the exploration of SaaS in hospitality:
●
How do SaaS platforms enhance guest
personalization
and
improve
response
mechanisms?
●
How does SaaS relate to ESG and, importantly,
measure the impact of this?
●
What are the key issues faced concerning the
change from legacy applications toward SaaS?
●
How can industry leaders in hospitality use SaaS
platforms to deploy competitive advantages?
The following is the paper structure with the major
sections discussed:
●
Literature Review:
Synthesis of academic and
industry research on SaaS, ESG, and hospitality
technologies.
●
Research Methodology:
Presentation of the
qualitative design and explanations of case-
based analysis.
●
SaaS Applications in Hospitality:
Thematic deep
dive focusing on elements of operational
efficiency, personalization, scalability, and ESG
alignment.
●
Case Studies
: Discussions on major hospitality
brands (such as HotelKey, CitizenM, and
Marriott) and their use of SaaS.
●
Comparative
Insights:
Deep
dive
into
comparisons of a traditional versus cloud-SaaS
approach.
●
Challenges and Barriers:
Integration, security,
resistance to change
●
Strategic Insights and Recommendations:
Practical advice for hospitality executives.
2. Literature Review
Previous hospitality IT studies addressed digital
transformation, property management systems (PMS),
and ESG regulation in separate contexts (Oracle
Hospitality, 2023; McKinsey & Company, 2022). This
paper brings these subjects together by demonstrating
how SaaS adoption can integrate them. Unlike other
studies that seem to address operational or economic
benefits in isolation, this study blends together ESG
metrics, guest personalization results, and strategic
agility results from top brands like CitizenM and
Marriott. It also answers requests in Gartner's (2023)
and IBM's (2023) industry reports for models that
demonstrate how a SaaS application is linked to ethical,
sustainable, and scalable business practices in
hospitality. In doing so, it adds to the Technology
Acceptance Model (TAM) through the inclusion of ESG-
focused perceived usefulness, a subject hardly discussed
in current academic debate (Oracle Hospitality, 2023;
McKinsey & Company, 2022).
2.1 Digital Transformation in Hospitality
In the hospitality arena, digital transformation is no
longer a mere enhancement of basic work processes but
is fast evolving to the redefinition of the service
experience and business strategy itself. From PMS and
CRMs to online booking and mobile apps, digital tools
are at the core of how hospitality providers work
(HotelTechReport, 2023). The merging of these tools has
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brought about a paradigm shift from reactionary Guest
Experience Service to proactive guest service, in which
data analytics predict demand and personalize service or
operational efficiency.
According to an industry analysis of 2023, hotels that
adopt end-to-end digital systems have reported up to a
25% uplift in guest satisfaction scores and a 30%
reduction in service delivery times (Oracle Hospitality,
2023; Gartner, 2023). This shows increasing ROI with the
right strategic implementation of digital transformation.
Table 1:
Benefits of SaaS Adoption in Hospitality
Feature
Description
Benefits to the Hospitality
Sector
Reference
Centralized
Access
Web-based
systems
accessible from any device
Multi-property
management
Oracle
Hospitality,
2023
Real-Time Sync
Automatic
syncing
of
bookings and customer data
Reduced
overbookings,
accurate forecasting
Lucidchart, 2023
Subscription
Pricing
Pay-as-you-go
operational
expenditure model
Lower
initial
costs,
predictable expenses
CIO Influence, 2024
Integration
Capability
API-based integration with
third-party services
Enhanced guest experience HotelTechReport,
2023
2.2 Emergence of Cloud and SaaS
Cloud technology, especially SaaS, allows a scalable and
flexible solution befitting modern hospitality operations.
SaaS, through on-demand access to computing
resources, eliminates the need for heavy infrastructure
investment while increasing uptime and data
availability. A SaaS-based property management system
(PMS) allows dynamic price setting for rooms,
simultaneous booking, and inventory management
across different platforms in real time (HotelKey, 2023).
2.3 ESG Considerations
Recently, ESG considerations have come into play at the
forefront of corporate decision-making. For hospitality
firms, cloud-based SaaS is aligned with environmental
and social objectives. As hotels transform into digital
platforms, they are substantially mitigating their
reliance on paper, energy-intensive hardware, and aged
physical infrastructure (Accenture, 2020).
In this way, for instance, smart energy control systems
or paperless check-ins ensure lower carbon emissions
and sustainable operations. Also, Cloud Technology
fosters inclusivity by providing remote work options and
by reducing manual drudgery. Governance may also be
strengthened through central data governance, audit
trails,
and
guaranteed
compliance
features
(SpringerOpen, 2016).
2.4 Theoretical Framework: TAM and ESG
Based on the Technology Acceptance Model (1989),
hospitality staff and decision-makers react to and adopt
SaaS technology. The two main factors influencing the
acceptance of any technology are perceived usefulness
and perceived ease of use. SaaS platforms are known to
score high on both, providing an easy-to-use interface
and practical impact.
However, extending TAM with ESG frameworks would
require the study of how organizational value (such as
sustainability
and
compliance)
affects
Cloud
Technology's
perceived
usefulness.
Hospitality
organizations are furthering the concept that SaaS is not
simply adopted for economic reasons but also meets
ethical and environmental responsibilities and
regulatory compliance.
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3. Research Methodology
3.1 Research Design
This study proceeds as an exploratory qualitative
research inquiry aimed at increasing the knowledge of
the strategic and operational efficiencies impacted by
SaaS adoption in the hospitality industry.
Thus, the synthesis of industry reports, academic
literature, and in-depth case studies will provide a deep
insight
into
the
rationale
of
actions,
their
implementation, and the challenges hospitality
stakeholders face. Exploratory designs are suitable for
questions emerging in the fast-paced business
environment of new technologies (Creswell & Creswell,
2018).
Table 2:
Data Sources for Research Methodology
Source Type
Examples
Relevance to Study
Reference
Academic
Literature
MIS Quarterly, Journal
of Hospitality IT
Theoretical grounding and
framework integration
Accenture, 2020
Industry Reports Accenture, McKinsey,
CIO Influence
Strategic insights and current
trends
CIO Influence, 2024
Vendor
Case
Studies
Oracle,
HotelKey,
CitizenM
Practical
implementation
examples
Lucidchart, 2023
Hospitality
Technology
Blogs
HotelTechReport,
Lucidchart
Real-time analysis and user
feedback
HotelTechReport, 2023
3.2 Data Collection Methods
The study refers to secondary data obtained from a
range of curated resources that include Peer-reviewed
academic journals and conference papers on SaaS, ESG,
and digital transformation, industry white papers,
technology vendor reports (such as Oracle Hospitality,
HotelKey), trade publications, and case studies of real
SaaS implementation in top hospitality companies.
Ensuring rigor, the authors charged with selecting
sources took into consideration only those published
between 2016 and 2024, giving a preference to post-
2020 data to reflect post-pandemic trends in hospitality.
3.3 Analysis Techniques
The study further applies two qualitative techniques,
Comparative Analysis,
employed to build a contrast
between traditional hospitality systems and cloud-based
SaaS architectures, comparing their respective
associated costs, efficiencies, and ESG performances.
Thematic Synthesis,
ontologizing themes such as
operational efficiency, data-driven personalization, and
ESG alignment across case studies and literature.
Both techniques promote an interpretive understanding
of complex socio-technical change occurring in
hospitality operations.
3.4 Limitations
The following limitations were considered:
Vendor Bias,
SaaS vendor case studies offer an idealized view of
outcomes.
Rapid Tech Evolution
and technological
advancements have a quick pace and may quickly make
present research obsolete.
Data Access Constraints,
the
unavailability of interview opportunities, and scarce
complementary primary fieldwork may limit this study's
contextual relevance.
Regional Bias:
Case studies are
largely based on North America and Europe and may
consequently lack adequate representation of emerging
markets.
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Nonetheless, these limitations are tempered by
triangulated data sources and heavy dependence on
peer-reviewed material, which strengthens the validity
of the study.
4. SaaS Adoption in Hospitality: Why It Matters
4.1 Operational Efficiency
Cloud-based SaaS stands for operational efficiency in the
hardest service environments by way of automating
repetitive jobs of service instances like assignment of
rooms, scheduling housekeeping, and point-of-sale
transactions. And so the platform decreases human
error and puts less administrative burden on the staff for
running operations and processing guests smoothly. For
example, HotelKey's PMS performs an automated
workflow of inventory management and front-desk
management for thousands of properties, resulting in a
20-30% reduction in check-in time (HotelKey, 2023).
Table 3:
Comparative Analysis of SaaS vs. Traditional Systems in Hospitality
Metric
Cloud-SaaS
Traditional Systems
Reference
Deployment Time Days to Weeks
Months
Forge ahead, 2024
Cost Structure
Pay-as-you-go (low OpEx)
High CapEx + maintenance CIO Influence, 2024
Scalability
Instant, flexible
Rigid,
hardware-
dependent
Lucidchart, 2023
Updates
Automatic, real-time
Manual, disruptive
HotelTechReport, 2023
ESG Alignment
High
(eco-friendly,
inclusive)
Low (resource-intensive)
Accenture, 2020
Table 3: Comparative Analysis of SaaS vs. Traditional
Systems in Hospitality
The table also shows how SaaS performs much better
than legacy systems in key operational efficiency and
ESG metrics. These are the reasons why SaaS is a tool
that existing hospitality businesses must adopt if they
are to be nimble and sustainable.
4.2 Guest-Centric Personalization
Travelers today desire experiences that suit their needs,
and SaaS platforms assist by employing in-depth data
analysis to personalize services. The platforms consider
what guests like, whether they have visited before, and
what they have done to provide them with tailor-made
recommendations, rewards for loyalty, and automatic
upgrades. Oracle Hospitality (2023) and PwC (2023)
state that personalized services have resulted in a 35%
return stay rate for hotels that employ SaaS-based CRM
systems.
4.3 Resilience and Scalability
SaaS is simple to scale, allowing properties to modify
their operations according to the number of visitors,
events calendar, and unforeseen events such as
pandemics or supply chain interruptions. Legacy
systems upgraded on-site are not comparable to SaaS,
in which properties can add users, modules, or
integrations in an instant. The ability to do so maintains
operations running smoothly and stably even in times of
volatile market conditions (Dev Community, 2023).
4.4 ESG Alignment
Cloud SaaS is a major instrument for the attainment of
ESG goals. This means less local hardware, so less energy
consumption, and less e-waste. Paperless check-in, e-
billing, and compliance reporting on autopilot go green
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and improve governance. These systems also work
toward equity in workload and provide flexibility in
working
conditions
for
hospitality
employees
(Accenture, 2020; Harvard Business Review, 2022).
5. Case Studies
5.1 HotelKey
HotelKey is an enormous hotel software system
deployed across more than 12,000 hotels in 40 nations.
It offers a suite of cloud-based applications, which
include a Property Management System (PMS), a Central
Reservation System (CRS), and a Point-of-Sale (POS)
system, all of which are mobile-friendly. The systems
eliminate the need for in-house servers and enormous
IT installations, saving huge costs and threats to business
operations.
One of the major strengths of HotelKey's software is its
primary dashboard. The dashboard allows hotel
managers to glance at key performance indicators (KPIs)
in real-time, including Average Daily Rate (ADR),
Revenue per Available Room (RevPAR), and occupancy
levels. Trial hotel reports indicated that operations could
complete room assignments 30% earlier, enhance
revenue forecasting by 25%, and offer 28% more
flexibility when adding third-party services than with
older systems (HotelKey, 2023).
HotelKey's optimization methodology allows hotel
chains to provide the same brand experience in every
one of their hotels. Properties on the platform
experienced a 40% reduction in training time for new
staff, a 20% reduction in the cost of IT support, and
Guest Experience service scores over 90% in the
majority of its properties.
Figure 1:
Impact of HotelKey SaaS Features on Operational Efficiency (
Source: HotelTechReport, 2023
)
The above figure shows the various performance
improvement metrics and the four key features
associated with those metrics.
These numbers indicate that HotelKey's software-as-a-
service business model is effective and enhances how
businesses run and make decisions. For hotel managers
seeking systems that are scalable, data-driven, and
assist with efficiency and ongoing branding, HotelKey
provides a robust and flexible platform for them.
5.2 CitizenM Hotels
CitizenM is a unique way in which a hotel brand can
leverage software as a service (SaaS) technology to
transform the entire guest experience. With a model of
offering "affordable luxury," CitizenM has over 30
properties globally and has developed a cloud-based
model that eliminates the front desk and human
interaction in order to provide services (CitizenM, 2023).
1.
Guest Experience Reimagined
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Its app, CitizenM, allows visitors to check in and check
out without queues, control the room temperature,
lighting, and curtains, watch entertainment on the
television in the room, obtain materials or supplies, and
employ a virtual assistant.
This cutting-edge, mobile-first approach has reduced
front-desk personnel by 70%. It has also made guests
more cheerful, with satisfaction on review websites such
as TripAdvisor and Google Reviews remaining higher
than 90% (CitizenM, 2023).
2.
ESG Alignment through Technology
CitizenM is green at its heart, and this is evident in the
way it functions. The software system saves energy in
rooms, so the hotel can switch lights and air conditioning
off when guest rooms are vacant. Further, being
paperless at check-in and check-out and using cloud
reports has reduced paper consumption by 25%.
Software dashboards assist in scheduling staff and
cleaning more efficiently, which has increased staff
efficiency by 40%.
Table 4:
SaaS-Driven ESG and Operational Gains at CitizenM (
Source: CitizenM, 2023
)
Operational Area
SaaS Feature
Outcome
Guest Services
Mobile
check-in/check-out,
automation
70% reduction in front desk staffing
Energy Management Automated lighting and HVAC control 20% energy savings per occupied room
Staff Productivity
Task scheduling and dashboard tools
40% improvement in task efficiency
Sustainability
Paperless operations
25% decrease in paper usage
Figure 2:
ESG Contribution Breakdown via SaaS at CitizenM
(
Source: Accenture, 2020; CitizenM, 2023
)
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It identifies the advantages of less paper usage, better
energy efficiency, and higher staff productivity.
CitizenM proves that SaaS is not just an operational
effectiveness tool but rather a transformational agent of
the new hospitality. CitizenM defines scalable,
sustainable, and guest-centric hotel operations by
digitally empowering the guests, simplifying processes,
and aligning tightly with ESG.
5.3 Marriott International
Marriott International is a global hotel chain giant
worldwide. It is revolutionizing technology in over 8,000
hotels worldwide in 139 countries. At the core of it is to
move away from aging, proprietary Property
Management Systems (PMS) to an engaged, cloud-
based solution on Software-as-a-Service (SaaS)
platforms. Anything but pure off-the-shelf SaaS
solutions, Marriott's solution employs modular, API-first
solutions with SaaS advantages and brand-specific
tailoring (Marriott International, 2022).
This shift to cloud technology is to make things easier,
enhance service quality, and enable real-time data
analysis for Marriott's various brands, such as Sheraton,
Westin, and Ritz-Carlton. One PMS system has one
Guest Experience profile, related loyalty schemes,
dynamic pricing capabilities, and systematized bookings
that are all linked to one another, all the key factors that
make guests satisfied and generate revenues. Marriott
is spending on new digital technology for products like
intelligent hotel rooms, networked maintenance
systems, and AI applications for guest interaction. This is
possible because of the flexible and adaptable
architecture, such as SaaS. In plain language, this means
quickly integrating new digital elements into different
assets, minimizing system downtime and maintenance
expenses, and improving decision-making with data-
informed real-time dashboards.
Marriott's internal statistics show that migration to the
cloud has enhanced the consistency of services across
hotels by 15% and saved operating costs by 22% in early-
start cities.
These case studies show different but helpful ways to
use SaaS for hospitality businesses. HotelKey focuses on
standardizing services for mid-scale hotels, CitizenM
focuses on giving customers personalized control, and
Marriott focuses on maintaining consistency and growth
across its brand. Together, they create a strong example
for hospitality companies wanting to improve with
cloud-based services.
Figure 3:
Strategic Impact of SaaS Adoption in Leading Hotel Brands
The following bar chart illustrates how every company measures and derives value from SaaS-related
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outcomes using public figures as well as in-house
measures.
Source: Marriott International, 2022; CitizenM, 2023;
HotelKey, 2023
Marriott can inject new experiences into the world of
hospitality, be it through stability or scaling, without
experiencing major challenges. Through SaaS-based
models on its digital platforms, the chain is
contemplating an improvement in its operations with
the intent of positioning itself in this fast-changing and
competitive world.
Table 5:
Consolidated SaaS Performance Metrics Across Hospitality Case Studies
Metric
HotelKey
CitizenM
Marriott
Source
Guest
Check-in
Time
↓
30%
Mobile
check-in
enabled
Streamlined
via
cloud PMS
HotelKey,
2023;
CitizenM,
2023;
Marriott, 2022
Front
Desk
Staffing
Not specified
↓ 70%
↓
Operational
support staff by
22%
CitizenM,
2023;
Marriott, 2022
Energy
Consumption
Reduced
via
mobile
workflows
↓
20%
per
occupied room
Improved through
IoT-enabled smart
ops
Accenture, 2020
Paper Usage
Paperless billing
& reporting
↓ 25%
Digitized
guest
profiles
&
transactions
CitizenM, 2023
Task Efficiency
↑ 30% in room
assignments
↑ 40% with task
scheduling
↑
Service
consistency
by
15%
HotelKey,
2023;
CitizenM,
2023;
Marriott, 2022
ESG Compliance
Features
Built-in reporting
& dashboards
Sustainability
monitoring
dashboards
Modular ESG tools
across
global
brands
Accenture, 2020
Operational Cost
Savings
↓ 20%
in IT
support costs
Not specified
↓ 22% in early
-
phase cities
HotelKey,
2023;
Marriott, 2022
Staff
Training
Time
↓ 40%
Not specified
↓ Disruption via
modular rollout
HotelKey, 2023
6. Comparative Analysis: Cloud-SaaS vs. On-Premise
One of the significant aspects of this research is to
compare cloud Software-as-a-Service (SaaS) platforms
and in-house platforms. This will enable us to identify
how each impacts operational performance, scalability,
ESG compliance, and long-term costs.
6.1 Performance and Flexibility
The SaaS-based applications, being easy to install,
provide real-time information access and can be
accessed through mobile phones. They do aid in making
time-critical decisions in the hospitality industry.
Conversely, on-premise systems require installation and
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updating time, which delays operations. SaaS platforms
enable hotels to respond to changing markets in a timely
fashion and update all the properties with ease, which
enhances service and guest satisfaction (Forgeahead,
2024).
6.2 Financial Considerations
SaaS solutions typically employ a subscription-based
pricing model (OpEx), where businesses do not have to
make big up-front payments (CapEx) for IT
infrastructure. The model facilitates easy budgeting and
transparent initial costs. On-premises solutions, by
definition, imply large upfront costs for acquiring the
hardware, software licenses, and maintenance contracts
over several years. In the post-pandemic era, the budget
generally leans toward OpEx models given their
flexibility and limited risk (CIO Influence, 2024; Cprime,
2023).
6.3 Scalability and Integration
Another significant difference lies in scalability. SaaS
systems are designed to be flexible and can be accessed
from numerous locations with little inconvenience,
whereas on-premise systems struggle to scale on the
basis of physical limitations and software settings that
are locked down. In addition, SaaS systems offer more
methods of integrating with other applications through
open APIs so that they can be integrated with third-party
applications such as CRM systems, payment gateways,
and loyalty systems (Oracle Hospitality, 2023).
6.4 ESG Compliance and Sustainability
SaaS is more environmentally friendly. Cloud computing
is less energy-intensive, generates less hardware waste,
and allows remote access, the key features of the green
IT model of today. On-premises solutions typically
translate to power-guzzling data centers and retired
hardware e-waste (Accenture, 2020).
6.5 Downtime and Risk Management
Cloud-SaaS models distribute numerous servers,
lowering the likelihood of system failure considerably.
Services remain up and running. On-premise systems
use local servers and are more likely to experience
hardware crashes and power failures (TierPoint, 2023).
Table 6:
Key Differences Between Cloud-SaaS and On-Premise Systems
Feature
Cloud-SaaS
On-Premise Systems
Reference
Initial Investment
Low (subscription-based)
High (servers, licenses,
installation)
CIO Influence, 2024
Maintenance
Vendor-managed, automatic
updates
Internal
IT,
manual
upgrades
HotelTechReport,
2023
Scalability
Easily scalable, modular
Limited
by
physical
infrastructure
Lucidchart, 2023
Integration
Flexibility
High (API-based architecture) Rigid and often custom-
built
Oracle
Hospitality,
2023
ESG Impact
Low energy use, paperless,
and remote access
High
power
usage,
hardware waste
Accenture, 2020
Downtime Risk
Minimal with distributed
systems
Higher due to local
failures
Tier Point, 2023
Source: Accenture, 2020; CIO Influence, 2024; HotelTechReport, 2023; Lucidchart, 2023; Oracle Hospitality, 2023;
TierPoint, 2023
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6.6 Visual Comparison
To illustrate these differences in point, the following
chart indicates the average performance scores for SaaS
and on-premise approaches in six key areas: cost,
maintenance, scalability, integration, ESG, and
downtime risk.
6.7 Summary
In total, although legacy systems must continue to have
relevance in very customized, security-focused
environments, the general trend across the hospitality
industry is toward a complete move toward SaaS
platforms. The transition must be accompanied by
greater efficiency, better alignment with ESG, greater
financial control, and future-proofing of operations
(Statista, 2024).
7. Strategic Benefits of SaaS
Adoption of SaaS solutions in hotels is less about
technology and more about new thinking
—
how value is
created, delivered, and retained is transformed. Three
significant advantages of SaaS are discussed in this
chapter: enhancing the guest experience, adopting
sustainable practices, and achieving competitive
advantage.
Figure 4:
Benefits of the SaaS Business Model
(
Source: Accessed: 4 July 2025
)
7.1 Guest Experience
The importance of real-time personalization cannot be
understated for any SaaS platform to be useful in
achieving guest success. When you look at guests
booking or choosing rooms and putting in service
requests for the same dates, the SaaS solution allows
hotels to provide a completely personalized experience
for every customer through a simple front-end tool
interface. By having a universal guest profile for this
hotel group, there is a consistent service level at every
point of sale, allowing for greater brand loyalty (Oracle
Hospitality, 2023).
7.2 Sustainable Practices
SaaS technologies are environmentally friendly since
they employ virtual systems. That is, there is less
equipment consumed and less power consumed, and it
promotes non-paper usage. Socially, SaaS makes the
workplace more equitable because it eliminates
tiresome tasks and promotes flexible working hours,
particularly in the corporate or hotel workforce.
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Governance advantages
result
from
increased
transparency, improved visibility of data, and rules
embedded to adhere to in the SaaS platform (Accenture,
2020; SpringerOpen, 2016).
7.3 Competitive Advantage
Given the fast-moving hospitality environment, SaaS
solutions give organizations an opportunity to quickly
pivot their strategies if they need to modify aspects of
their processes quickly in response to the market
conditions, and other factors such as travel bans and
new consumer behavior. SaaS solutions are flexible and
quick to implement, and hotels have the opportunity to
''test and deploy'' new capabilities such as touchless
check-in or price adjustment solutions, in a short space
of time. This ability to deploy quickly is going to be of
immense advantage when the recovery phase takes
hold after COVID-19 (CIO Influence, 2024).
In addition to outsourcing IT maintenance and
concentrating on core service delivery, this allows
hospitality brands to utilize in-house resources for
innovation, brand, and guest engagement to solidify
their foothold in the market (CIO Influence, 2024; IBM
Institute for Business Value, 2023).
8. Challenges to SaaS Adoption
There are some problems associated with SaaS
implementation, even though it has many benefits.
These must be addressed in the right manner so that
they can be implemented and used in the right way in
the future.
8.1 Security Concerns
Data protection is a concern when utilizing SaaS. Third-
party Cloud Technology Providers cause issues such as
unauthorized entry, data theft, and adherence to
regulations worldwide, e.g., GDPR and PCI DSS.
SpringerOpen (2016) explains that the lack of direct
control over data systems exposes hospitality
stakeholders to higher risks, particularly when handling
sensitive guest data.
8.2 Legacy Integration
Most hospitality businesses are working with legacy
platforms not designed with new SaaS applications in
mind. Moving data, changing procedures, and retraining
employees on the new systems are very expensive and
time-consuming investments. If the integration of
systems does not go well, it can cause operational
issues, especially in a non-IT-dependent company.
8.3 Connectivity Issues
SaaS software requires a good internet connection to
function properly. Hotels in remote or developing areas
can have poor internet, and this creates service issues.
This is particularly important for mobile services such as
self-service check-in machines, mobile concierge
software, and cloud-based property management
systems (PMS) (Dev Community, 2023). As a precaution,
more and more SaaS solutions are employing backup
systems and offline capabilities.
8.4 Managing Changes
SaaS adoption is not merely a technology change; it is
also a cultural change. People resist change; they fear
losing their jobs, and some of the staff might lack the
digital skills required, thus halting or slowing down the
process. Effective change management practices such as
open communication, phased rollout, and effective
training programs must be embraced to bring everyone
on board with the new system (CIO Influence, 2024).
Leadership support and the inclusion of important
people in the initial stages are also required for an
effective change.
By identifying and resolving these concerns, hospitality
companies are able to utilize SaaS platforms with less
risk.
9. Strategic Insights: Future of Hospitality
It enables hotels to operate at a higher level of
engagement with their guests. As this transformation
becomes
entrenched,
there
is
an
emerging
understanding around a new framework where data
integration in real-time, proactive service delivery, and
sustainability as a lodestar of innovation will become a
competitive necessity. One of the most promising areas
to integrate Saas is with Internet of Things (IoT) devices.
Occupancy sensors, automated lighting, smart
thermostats, and predictive management systems are
highly managed by the Cloud Technology interfaces.
These combinations help hotels to personalize the room
conditions in real-time, upgrade energy use, and have a
direct impact on both guest satisfaction and ESG targets
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(Accenture, 2020).
Saas also promotes the changes from a reactive service
model to a proactive one. Here we can understand with
an example, advanced analytics within a SaaS CRM can
alert staff to guests’ likely preferences, challenge issues
before they arise, and enable service recovery in real-
time. As a result, there is also going to be a deeper
emotional connection for the guest over time with the
brand, leading to loyalty and profit (Oracle Hospitality,
2023).
Additionally, having a common cloud infrastructure
allows for speed of innovation and expansion across
various countries. Advanced technology, such as real-
time dynamic pricing, AI-driven chatbox, and mobile
self-check-in, can be controlled in a few properties and
expand rapidly across global chains without heavy IT
interference.
Hopefully, Ethical standards and the merging of SaaS
with artificial intelligence, IoT will describe the future
era of smart hospitality. Instead of merely surviving a
digital disruption, businesses can co-exist (and
sometimes joke about) the disruption, effectively
manage their carbon reduction and profit offset, quickly
pivot, and deliver an authentic experience with a
conscious-minded consumer through the use of these
embedded in the business technologies.
10. Conclusion
The hospitality landscape is changing from legacy
systems to cloud-based SaaS environments that are
transforming hospitality's service delivery, operational
management, and sustainability targets. This research
provides evidence that adopting a SaaS environment
within the hospitality framework only enhances
operational efficiencies, as well as produces compliant
ESG statements, allows immediate guest customization,
and enhances competitive differentiation.
The CitizenM and Marriott case studies demonstrate
these effects with quantifiable improvements in guest
satisfaction, energy efficiency, and operational speed.
Hotel businesses must employ cloud SaaS to not only
keep up but also evolve in a digital and sustainable age
(Accenture, 2020).
1.
Strategic Implications
As digitalization rises in the post-pandemic period,
accepting Saas is no longer optional. This is a strategic
priority. SaaS platforms give power to the hospitality
business to reach competitive alignment, react faster to
market shifts, have a high rapport with guests, apply the
latest innovations at scale, and ensure reliable delivery.
In addition, their alignment with the ESG framework
makes the hospitality brand future-ready and
responsible.
2.
Recommendations
The following recommendations proposed to hospitality
leaders to transition and consider SaaS solutions are:
Develop a Clear Digital Strategy, Merging with the SaaS
acceptance along with the organizational goals, targets,
guest-centric innovations, and operational efficiency
outcomes. Invest in Change Management. For
successful implementation, be sure to lead, train your
staff, and then talk to your stakeholders. Review your
ESG Environmental Outcomes: ensure you pick SaaS
choices with ethical data processing standards,
compliance, and operational sustainability options for
your use and consideration. Use data analytics - leverage
the data you have on your guests and the operational
efficiencies you have gained, and then use the data to
inform actions.
3.
Future Research
Future research should look into the geographical
variances in SaaS adoption, specifically in growing
markets where infrastructure limitations may affect the
end result. Moreover, long-term sustainability affects
both the economy and the environment and should be
evaluated to quantify SaaS's contribution to the
worldwide hospitality value stream. Emerging trends
like AI, green IT certifications, and blockchain technology
within the constructs of a SaaS environment are
potential opportunities for further educational research.
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11. Glossary of Technical Terms
Term
Definition
Source
SaaS
(Software-as-a-
Service)
A software delivery model in which applications are
hosted in the cloud and made available to customers
through oversubscription.
Oracle Hospitality,
2023
PMS
(Property
Management System)
Software that is used by hotels to realize and manage
room reservations, front-desk operations, as well as
check-in and check-out.
HotelKey, 2023
API
(Application
Programming Interface)
A set of protocols that allow software applications to
communicate with each other and integrate.
Lucidchart, 2023
OpEx vs CapEx
OpEx (Operating Expense) refers to subscription-based
operational spending, while CapEx (Capital Expense)
refers to large up-front costs like hardware purchases.
CIO
Influence,
2024
GDPR (General Data
Protection Regulation)
European Union legislation on collecting and
processing personal data.
SpringerOpen,
2016
Scalability
The capability of a system to handle growing amounts
of work or to be enlarged.
Dev Community,
2023
DRaaS
(Disaster
Recovery as a Service)
A backup and disaster recovery model in the cloud that
allows one to restore systems during an outage.
TierPoint, 2023
12. References
1.
Accenture. (2020). The green behind the cloud: How
cloud computing is helping companies shrink their
carbon footprint
en/insights/cloud/cloud-sustainability
2.
CitizenM.
(2023).
Smart
hotels:
Delivering
contactless
guest
experiences
3.
CIO Influence. (2024). Cloud vs. On-Premises: The
cost-benefit analysis for CIOs.
https://cioinfluence.com/cloud/cloud-vs-on-
premises-the-cost-benefit-analysis-for-cios/
4.
Crime. (2023). Capital One cloud transformation.
https://www.cprime.com/resources/blog/capital-
one-cloud/
5.
Davis, F. D. (1989). Perceived usefulness, perceived
ease of use, and user acceptance of information
technology. MIS Quarterly, 13(3), 319
–
340.
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6.
Dev Community. (2023). Spotify and Betabrand:
Cloud transformation case studies.
7.
Forgeahead. (2024). Cost comparison: Cloud vs. On-
premise.
8.
Gartner. (2023). Market Guide for Hospitality
Management Software.
https://www.gartner.com/en/documents/4005705
9.
Harvard Business Review. (2022). Why ESG goals
must drive digital transformation.
https://hbr.org/2022/06/why-esg-goals-must-
drive-digital-transformation
10.
HotelKey. (2023). SaaS platform for hospitality
operations.
11.
HotelTechReport. (2023). Top PMS systems for
hotels in 2023.
https://www.hoteltechreport.com
12.
IBM Institute for Business Value. (2023). The rise of
composable hospitality: Unlocking value with SaaS
platforms.
https://www.ibm.com/thought-
leadership/hospitality-saas
13.
Lucidchart. (2023). Cloud hosting scalability
benefits.
https://www.lucidchart.com/blog/scalability-cloud-
14.
Marriott
International.
(2022).
Digital
transformation at scale.
https://www.marriott.com/technology
15.
McKinsey & Company. (2022). The digital future of
hospitality.
16.
Oracle Hospitality. (2023). Hospitality cloud
platform adoption trends.
https://www.oracle.com/industries/hospitality/
17.
PwC. (2023). Next in hospitality: Tech-driven
personalization.
https://www.pwc.com/hospitality-tech
18.
SpringerOpen. (2016). Challenges in cloud ERP
migration.
https://journalofcloudcomputing.springeropen.co
m
19.
Statista. (2024). Cloud computing in the global hotel
industry
–
usage statistics.
https://www.statista.com/statistics/cloud-
hospitality-usage
20.
TierPoint,
LLC.
(2023).
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recovery
comparison:
Cloud
vs.
On-Prem.
https://www.tierpoint.com/resources/cloud-dr-vs-
on-prem/
