Offline or cloud hotel management software: where the differences lie

Part 1: Offline and cloud hotel management software — understanding the two terms

"Offline" does not mean the internet is never needed. Software installed on premise still needs the internet for tasks that face outside the hotel: receiving bookings from online sales channels, sending e-invoices, letting owners see figures remotely. The part that does not need the internet is the work that runs on the local network. With DiHotel running on premise on the hotel's own server, the front desk still checks guests in and out as normal when the internet goes down.

"Cloud" does not mean the data is floating around somewhere either. The data sits on servers in a data centre that the provider operates or rents; the hotel does not keep a server in-house and accesses the software over its internet connection.

Part 2: Four core differences

Where the data sits

On premise, the data sits in the hotel's server room. In the cloud, it sits in the provider's data centre. Wherever it is, the more important question is who the data belongs to and whether it can be taken out. With DiHotel, whichever way it runs, the data belongs to the hotel, and the contract states clearly that the hotel can export all of its data. Hotels should ask exactly this question of every vendor, including us.

The Law on Personal Data Protection No. 91/2025/QH15 took effect on 1 January 2026. Whether the data is on premise or in the cloud, the hotel must still be able to answer: where is the guest data, who can access it, and how is it protected? See also the article on personal data protection for hotels.

Who handles backups, recovery and infrastructure security

On premise, the hotel takes care of the infrastructure itself: servers, backup power, the server room, operating system patches, backups and regular test restores. This work is done by the hotel's technical department or an outsourced provider. In the cloud, the infrastructure moves to the provider: with DiHotel running in the cloud, backups, recovery and infrastructure security are handled by the provider. The hotel keeps its own share of the work under both models: each employee's access rights, passwords, and the workstations in each department.

How updates happen

On premise, a new version has to be installed on the hotel's server, usually in batches and on a schedule. In the cloud, the provider updates on its own infrastructure. But how quickly the software keeps up with new regulations such as Circular 99/2025/TT-BTC, e-invoicing or guest stay reporting depends first of all on whether the software is still being developed, not on the model. On DiHotel, the DiACC accounting module already runs on the Circular 99 chart of accounts, and e-invoicing is connected.

Seeing the figures remotely

When the server sits at the hotel, owners who want to see figures remotely usually have to open an additional access route, or wait for someone to send a spreadsheet. Cloud software opens anywhere there is internet. With DiHotel, whichever way it runs, owners and GMs can see the figures through DiOwner, a read-only phone app whose figures match the operating system.

One more point for large hotels: equipment in the building

5-star hotels and resorts usually have key card locks, a telephone exchange, in-room TV, minibars and a building management system. DiHotel communicates two-way with these groups of equipment; the list of specific makes and model generations needs to be surveyed at the hotel before it is finalised, whichever deployment model is chosen. Details of the platform are in the article on DiHotel's enterprise platform.

Part 3: What if the internet goes down?

This is the question executive teams often ask first, and it is also where misunderstandings arise easily. Each model has its own weak point: on premise, it is the in-house server; in the cloud, it is the internet connection.

With any vendor, the hotel should ask for the internet outage plan to be set out in writing, for the exact deployment it chooses: which parts keep running, which stop, and what each department does while waiting. The reservations team, for example, needs to know how to track new bookings on the channels while the connection is temporarily interrupted.

Part 4: Server and maintenance costs viewed over 5 years

Comparing software prices over one year easily leads to a skewed conclusion, because the two models spread their costs very differently. Viewed over 5 years, add up all of the following lines before setting them side by side:

• Running on premise: servers, and a server replacement if one falls within the next 5 years; operating system and database licences, including the upgrade when the version in use reaches end of support; electricity, cooling, uninterruptible power supplies, the server room; backup equipment and labour; the time of the technical department or an outsourced provider; software maintenance fees.
• Running in the cloud: the periodic subscription; a main and a backup internet connection; network equipment and workstations at the hotel; the remaining technical work at the hotel.
• Running as a hybrid: part of both lists, depending on how the system is split.

This article gives no figures, because every hotel has different server prices, electricity prices, internet connections and technical teams. We draw up a 5-year total cost table based on each hotel's own figures. For switching customers specifically, the DiHotel subscription is no higher than the maintenance fee the hotel currently pays for its old system. If your current server is nearing the end of its life, the article server end of support: what hotels need to do helps set a timeline for this decision.

Part 5: The hybrid model — when it makes sense

Between the two extremes of "everything in-house" and "everything in the cloud" there is a third choice: each part of the system is placed where it fits. There is no universal formula for the boundary between the two parts; it is drawn after the site survey, based on the owner's data requirements and the stability of the internet connection at each property. This direction is usually worth considering when:

• The owner wants part of the data to stay in-house, but does not want the hotel to carry the whole infrastructure.
• The chain has properties in cities with stable connections and properties in remote areas where the connection is less certain.

Hybrid is not a choice that is "safe in every case". It requires a clear division of which part sits where and who is responsible for which part, and this must be written into the contract.

Part 6: Comparison table of the three options

Part 7: A decision framework in three questions

The three questions below decide most of the choice. Write the answers on a single page and give it to every vendor at the same time, so that the proposals are compared against the same brief.

• 1. What is the owner's data policy? If the owner, the parent group or the management partner requires data to stay in-house, lean towards on premise or hybrid. If there is no such requirement and the hotel wants to carry less infrastructure, the cloud is an option worth considering.
• 2. Is the internet connection at the site stable? With lines from two different carriers and rare outages, the cloud is feasible. For a resort in a remote area with a patchy connection, on premise or hybrid should be considered.
• 3. What is the size of the chain and the technical team? With many properties and no technical staff at each site, every server at a property is one more thing to look after. With a technical team and a server room that meets standards, running on premise is not a burden.

No single question decides on its own. A hotel may have a data policy that leans towards on premise but no technical team; in that case the hybrid model, or outsourcing server administration, are two directions to discuss. Because DiHotel runs all three ways, the hotel chooses according to these three answers rather than the limits of the software.

Part 8: What really needs to be avoided — being locked into an ageing server

The big risk does not lie in choosing on premise or cloud, but in the hotel no longer having a choice. Servers and software both have a life cycle; nobody is at fault when a system bought years ago has reached its age. But if you see two or more of the following signs, the hotel is locked in:

• The software can run on just one version of an operating system or database, and that version is already out of support.
• The data cannot be exported to a file in full, or can be exported just in parts.
• Every time regulations change, the accounting team has to wait a long time or make manual adjustments.
• A single person knows the server administrator password.
• Letting the owner see figures remotely requires investing in extra dedicated infrastructure.

When choosing new software, whichever model it runs on, read three things in the contract carefully: who the data belongs to, what the hotel can export and how, and how the vendor commits to keeping up with regulations.

Part 9: If you are running an older on-premise system — how to switch safely

Changing software does not mean you have to change model: a hotel that wants to keep its data in-house can run DiHotel on premise on its own server. The data migration tool has already run for real at one property, with more than 60,000 guest profiles, more than 5,000 bookings, under 15 minutes of machine time, a 100% match and the option to roll back; that is the result of a single run, not a commitment, and the whole project usually takes 2–3 weeks depending on size. The server timeline is in the article server end of support, and the steps are in the article hotel management software migration checklist.

Part 10: The "Zero-Cost Switch" package

The package is for hotels with 50 rooms or more, or chains with 2 or more properties, currently using an older on-premise system, with contracts signed up to 30 June 2027. Under the package, DiHotel charges nothing for data migration and still runs a trial first, reconciles by data group and keeps a rollback point; the old system is left in read-only mode for 3–6 months instead of being switched off immediately; the remaining term of the old system's contract, up to 6 months, is added to the DiHotel subscription term so that the hotel does not pay two vendors at once; both parties sign a closing-balance record before go-live; and each department receives its own training, with operating instructions and video recordings. The subscription for switching customers does not exceed the maintenance fee currently paid for the old system, calculated by the number of rooms and modules; DiHotel does not discount it, but puts that amount into removing the risks of migration. The full terms are set out in the contract.

What is offline hotel management software?

It is the familiar name for software installed on premise: the software runs on a server located at the hotel, and departments connect to each other over the local network. This software still needs the internet for outward-facing tasks such as receiving bookings from online sales channels, sending e-invoices and viewing figures remotely.

If the internet goes down, can DiHotel running on premise still check guests in?

Yes. When DiHotel runs on premise on the hotel's own server, the front desk still checks guests in and out as normal over the local network. The parts that need the internet, such as the connection to online sales channels, sending e-invoices and viewing figures remotely through DiOwner, have to wait until the connection is back.

Does hotel data stored in the cloud still belong to the hotel?

Yes. With DiHotel, whichever way it runs, the data belongs to the hotel, and the contract states clearly that the hotel can export all of its data. When running in the cloud, backups, recovery and infrastructure security are handled by the provider.

Should a 5-star hotel choose on premise or cloud?

There is no universal answer. Three factors decide: the owner's data policy, the quality of the internet connection at the site, and the size of the chain together with the capability of the technical team. DiHotel runs on premise, in the cloud or as a hybrid, so the hotel chooses according to those three factors rather than the limits of the software.

What is the hybrid model?

It means dividing the system according to need instead of putting everything in one place: the part that needs to run on the local network sits at the hotel, while the part that needs remote access or needs the provider to carry the infrastructure sits in the cloud. The exact split is decided during the site survey, according to each property's data policy and internet connection.

How long does it take to switch from an older on-premise system to DiHotel?

The whole project usually takes 2–3 weeks, depending on size and how clean the data is. The survey and a trial run on a copy of the data can start right away because they do not touch the live system, while the go-live date should be set in the low season.