What is a saas and why is it so popular as a business model?
In today's business landscape, the SaaS (Software as a Service) has established itself as one of the most widely used solutions by companies of all sizes and sectors. Its popularity lies in its ability to provide access to specialised software without the need to invest in its own technological infrastructure. This model not only reduces operating costs, but also improves the flexibility and adaptability of companies to technological and market changes.
The SaaS is not just a technology model, it is a business model that has transformed the way companies consume technology, helping to optimise resources and allowing them to focus on their core activities.
What is software as a service and what are its origins?
The Software as a Service (SaaS) refers to a software distribution model in which an application is hosted by a service provider and made available to users over the Internet. This means that companies can access advanced business solutions without having to install, maintain or update the software locally.
Origins: SaaS is an evolution of traditional software models. In the past, companies purchased perpetual licences for software, which meant buying expensive hardware and maintaining in-house IT teams to manage upgrades and technical issues. With the rise of cloud computing (cloud computing), a new model was created where software is hosted on external servers and accessible at any time via the web.
Example: A small business may need a customer management system (CRM), but does not have the resources to buy its own software licenses and servers. With a SaaS solution such as Salesforcecan have access to a full CRM for a monthly fee.
What are the main advantages of a SaaS?
The SaaS has a number of key features that make it an ideal solution for companies looking to reduce costs, improve operational efficiency and rapidly scale their operations.
Easy access from anywhere
One of the main advantages of SaaS is that it is available at any time and from anywhere with Internet access. This facilitates mobility and real-time collaboration.
Reduced start-up costs
The SaaS model eliminates the need for large upfront investments in hardware or licences. Instead of paying large sums for perpetual licences, companies pay a monthly or annual fee for the use of the software.
Example: Human resources software such as BambooHR enables small and medium-sized enterprises to manage their workforce at low cost, avoiding the need to purchase costly in-house systems.
Automatic updates
The SaaS provider manages software updates and maintenance. This means that users always have access to the latest versions and new functionalities without the need for manual installations.
Example: Slacka business communication platform, is regularly updated to include new features that make it easier for users to work collaboratively, without interruption.
Scalability
Businesses can increase or decrease their use of SaaS according to their needs without making large additional investments. This is especially useful for growing businesses or those with fluctuating demands.
Example: LEAN Hotel System allows more properties, users and services to be added as the hotel chain grows, without the need for system changes or costly migrations.
Simplified maintenance and support
Maintenance and support is provided by the software vendor, which reduces the burden on internal teams and ensures that the system is always up and running.
Security and backups
SaaS providers often have robust security systems and automatic backups, protecting sensitive company data and ensuring its recovery in the event of a technical failure.
Example: LEAN Hotel System secures the information of hotel guests in compliance with data protection regulations, such as the GDPR in Europe, and with automated backup systems to prevent data loss.
Easy to integrate
SaaS solutions are designed to integrate with other applications and platforms, enabling businesses to connect their operations and automate workflows.
Example: LEAN Hotel System can be integrated with channel management platforms such as Vertical BookingThe new system allows hotels to synchronise their bookings across multiple OTAs (Online Travel Agencies) and avoid overbookings.
Disadvantages
Although SaaS offers many advantages, it also has some disadvantages that companies should consider before adopting it.
Dependence on Internet connection
Access to the SaaS is entirely dependent on a stable Internet connection. If connectivity is slow or unreliable, access to software can be compromised, which can affect critical business operations.
Less control over software
The solutions SaaS often offer less flexibility in terms of customisation, as users are dependent on the vendor to make changes to the software. This can be a disadvantage for companies that need very specific functionalities that are not available in the standard system configuration.
Recurrent costs
In the long term, the underwriting costs of a SaaS can exceed those of a perpetual licence. Although the initial costs are low, recurring payments can add up over time, especially if the company does not properly manage the use of the functionalities or the number of users.
How many types of SaaS are there?
The model SaaS is incredibly flexible and adaptable to a wide variety of industries and business types. What makes the SaaS is so attractive is its ability to offer specialised solutions to sectors with very different needs, while maintaining simplicity of use, scalability and affordability. Below, we explore how the SaaS to different sectors and some examples of SaaS applications that have transformed these industries.
Technology and software companies
The technology sector has been one of the early adopters and developers of solutions SaaS. Technology companies use this model to offer other companies access to advanced tools without the need to develop software in-house or manage local infrastructures.
Example: Microsoft 365 is one of the best known examples of SaaS in the technology sector.
Digital marketing
Digital marketing has undergone a major shift with SaaS, allowing companies to run campaigns more efficiently and with a greater degree of automation. Specialised SaaS platforms allow you to manage customer relationships, automate email campaigns, generate real-time analytics and track conversions without requiring complicated configurations.
Example: HubSpot is a comprehensive SaaS marketing platform that includes CRM, email marketing, marketing automation and analytics.
Health
The health sector has been transformed by the SaaSwith applications that facilitate access to electronic medical records, telemedicine and remote patient management. These solutions not only improve the efficiency of medical professionals, but also increase security and control over sensitive patient data.
Example: Practice Fusion is a SaaS offering electronic medical records for doctors and clinics.
Education
Education has also adopted the model SaaS to make learning more accessible and flexible. Learning management platforms (LMS) allow teachers and students to connect, access educational materials and collaborate remotely. In addition, educational institutions can offer online courses without the need to create complex technological infrastructures.
Example: Google Classroom y Moodle are SaaS platforms that enable educators to manage distance learning, facilitating the submission of assignments, automatic grading and online interaction between students and teachers.
Hotel and tourism
The hotel and tourism sector has been one of the biggest beneficiaries of SaaS solutions, as these platforms allow hotels to centrally manage all their operations, improve customer experience and optimise room occupancy. Cloud-based property management systems (PMS) and booking engines allow hotels to control their operations without having to invest in costly IT infrastructure.
What is the difference between the main cloud service models: SaaS, PaaS or IaaS?
In the ecosystem of the cloud computingThere are three main service models that differ primarily in the level of control, accountability and flexibility they provide to enterprises. Each of these models meets different business needs and enables organisations to leverage the cloud effectively, depending on their business requirements and technical capabilities.
SaaS (Software as a Service)
The model SaaS is the most accessible for businesses, as it provides ready-to-use solutions without the need to manage the underlying infrastructure or software. In this model, the provider is responsible for everything from server management to software updates. Users simply access the applications via a web browser or application, making it the ideal choice for companies looking for simplicity and speed of deployment.
Example: Tools such as LEAN Hotel System are SaaS applications that allow hotels to manage all their operations, such as reservations, billing and room management, without the need to purchase or maintain their own infrastructure.
Key features of SaaS:
- Ready-to-use applications
- Automatic updates managed by the supplier
- Access via the web from any device
- Ideal for companies looking for a quick solution without technical complexities
PaaS (Platform as a Service)
The model PaaS is an intermediate step in terms of control and accountability. PaaS provides a platform on which developers can build, test and deploy their own applications. Although the underlying infrastructure is managed by the provider, the user has control over the development and customisation of applications. This model is ideal for companies that need greater flexibility to build custom applications, without having to worry about managing servers or storage.
Example: Google App Engine is a PaaS service that allows developers to build and scale applications without having to manage the infrastructure. Developers focus on writing code while Google manages the servers, storage and databases.
Key features of PaaS:
- Provides a complete development environment in the cloud
- Infrastructure management by the supplier
- Users control the development and implementation of applications.
- Ideal for companies with development teams looking to create customised solutions
IaaS (Infrastructure as a Service)
The model IaaS offers the highest level of control, as it provides cloud infrastructure, such as virtual servers, storage y networkswhich companies can configure according to their needs. Although the physical infrastructure is managed by the provider, companies are free to install their own software, operating systems and applications. IaaS is ideal for organisations that need total flexibility and have the technical capabilities to manage their own cloud infrastructure.
Example: Amazon Web Services (AWS) is one of the suppliers of IaaS The most popular, offering companies the ability to rent virtual servers, databases, storage and networks to build and manage their own IT infrastructure in the cloud.
Key features of IaaS:
- Full control over infrastructure and configuration
- Businesses manage operating systems, applications and middleware
- Full scalability of computing and storage resources
- Ideal for companies with technical teams that require complete control over their technology environment.
3 examples of SaaS not to be missed in the hotel industry
LEAN Hotel System
LEAN Hotel System is a PMS (Property Management System) in the cloud designed specifically for hotel management. This SaaS solution allows hotels to manage all operations from a single platform, including the management of reservations, check-ins, check-outs, billing, housekeeping and maintenance department control and much more. The scalability of LEAN Hotel System allows hotels of all sizes, from small establishments to large chains, to benefit from its functionalities without the need for large upfront investments.
Key integrations: In addition, LEAN integrates seamlessly with other systems allowing automatic synchronisation of information, such as with Channel Managers, which in turn are connected to Booking.com, Expediaand other OTAs (Online Travel Agencies), payment gatewayssystems, systems of Revenue Management and other external services that optimise hotel efficiency.
Key benefit: The ability to manage all operations from a centralised platform not only improves operational efficiency, but also facilitates access to key data that helps hotels make informed decisions in real time, improving both profitability and guest experience.
Vertical Booking
Vertical Booking is a powerful booking engine and Channel Manager SaaS designed to facilitate the distribution of rooms across multiple online platforms. This system allows hotels to centrally manage their room availability and rates across multiple online platforms. distribution channels such as OTAs, GDS (Global Distribution Systems) and the hotel's own website. By managing all platforms from a single interface, Vertical Booking optimises the hotel's visibility in online marketplaces and avoids problems such as the overbooking.
Outstanding functions: Vertical Booking not only manages bookings across multiple channels, but also offers analytics and reporting tools to evaluate the performance of the different distribution channels. In addition, it integrates Revenue Manager System rate management functionalities, allowing hotels to dynamically adjust prices based on demand.
Key benefit: The ability to synchronise and optimise room distribution across multiple channels from a centralised platform helps hotels maximise occupancy and increase revenue, while reducing the risks of manual errors and overbookings.
Tilby
Tilby is a solution POS (Point of Sale) cloud-based solution that is designed for the efficient management of retail and restaurant transactions. This SaaS solution provides an easy-to-use platform for managing sales, inventory and customer data in real-time, enabling businesses to optimise their daily operations and enhance the customer experience. Tilby is ideal for a wide range of industries including retail shops, restaurants and cafes.
Key features: Tilby facilitates the processing of payments, whether cash, cards or electronic payments, integrating transactions with inventory management. In addition, it enables receipt customisation, sales tracking by product or category, and stock rotation control, helping owners to have a complete view of their business in real time.
What solutions does LEAN offer its customers?
LEAN Hotel System is a SaaS platform designed specifically for the hospitality industry, offering a range of technology solutions tailored to the operational needs of hotels of all sizes. These solutions enable hotels to optimise processes, reduce operational costs and improve the guest experience through automation and integration of all areas of the business. Below, we describe the main tools that LEAN offers to its clients.
LEAN Hotel System (PMS)
The Property Management System (PMS) from LEAN Hotel System is the central solution that integrates all hotel operations. From reservations management to billing and control through reporting, LEAN PMS offers a single, 100% cloud-based platform that allows hotels to operate more efficiently. Some of the key functionalities include:
- Reservation management: It allows the registration and management of all bookings, both those coming from online channels (OTAs) and direct bookings. Real-time synchronisation with other systems prevents overbooking and optimises room availability.
- Automated check-in and check-out: Employees can check guests in and out quickly and efficiently, reducing waiting times and improving the customer experience.
- Integrated invoicing and payments: LEAN facilitates the billing of additional services such as minibar, spa, restaurant, etc., and allows guests to easily pay during the check-out process. It also integrates with different payment gateways to offer secure transactions.
- Room management: The system allows you to manage the status of rooms (clean, occupied, under maintenance), which facilitates coordination with the cleaning team and ensures that rooms are ready for new guests on time.
- Real-time reporting and analysis: Managers can access detailed reports on occupancy, financial performance and other key data. This enables them to make informed decisions to improve profitability and service.
Business benefit: This centralised system not only improves daily operations, but also reduces the costs associated with manual handling, as the entire process is automated and monitored in real time.
POK (Point of Kiosk)
The Point of Kiosk (POK) is an innovative solution that optimises the check-in and check-out process for guests. This system allows the full automation of registration The POK is designed to reduce significantly the workload of reception staff and improve the customer experience, especially during high demand hours. Key features of the POK include:
- Pre Check-in online: Before arriving at the hotel, guests can complete the pre-check-in process virtually via their device, reducing administrative tasks upon arrival.
- Check-in through kiosks: At the hotel, guests can check in using a self-service kiosk, where they can verify their details and obtain the access card or pin code without having to interact with the reception staff.
- Automated check-out: At the end of their stay, guests can check-out through the kiosk, pay their outstanding bill and receive their invoice by email, without waiting in line.
Housekeeping App
The Housekeeping App is a tool that optimises the management of the hotel's housekeeping team. This solution allows housekeeping staff to receive real-time notifications on the status of rooms, streamlining coordination between the front desk and the housekeeping team. Key functionalities include:
- Real-time room status: Cleaning staff can see which rooms need to be cleaned and which are occupied or ready for new guests. This optimises task allocation and improves operational efficiency.
- Notification of incidents: If the cleaning team detects a problem in a room (e.g. a breakdown or a maintenance issue), they can report it directly via the app, which speeds up communication with the maintenance staff.
- Inventory control and minibar: The application allows you to report minibar consumption or the need to replenish cleaning products and supplies, facilitating better inventory management.
Business benefit: The Housekeeping App improves the efficiency of the cleaning team by avoiding downtime, reduces communication errors and ensures that rooms are ready for new guests without delay. It also allows for better control of supply inventory, avoiding cost overruns.
Front Desk App
The Front Desk App is a solution designed to digitalise the process of check-in y check-out from the hotel reception desk. This tool allows front desk employees to perform all the tasks necessary to check in guests quickly and efficiently, with the benefit of digital signatures and regulatory compliance. Among its main functions are:
- Digital signature of the guest: Customers can electronically sign their registration forms on a digital device, eliminating the need for paperwork and streamlining the check-in process.
- Consent to privacy policies: This application facilitates the collection of customer data in compliance with privacy regulations, such as the General Data Protection Regulation (GDPR) in Europe. Hotels can ensure that they have the necessary consents without legal complications.
Integration with third parties
One of the main advantages of the systems SaaS is its ability to seamlessly integrate with other tools and platforms, allowing hotels to centralise and optimise their operations. LEAN Hotel System excels in this regard by offering a wide range of integrations with third-party platforms that enable hotels to automate key processes, improve customer experience and maximise efficiency.
The most common integrations in a SaaS hotel management system such as LEAN include:
Channel Manager
The Channel Manager is one of the most important integrations for a modern hotel. This system allows you to manage room availability and prices in multiple OTA (Online Travel Agencies) as Booking.com, Expedia, Airbnb y Agodaamong others, from a single platform.
Advantages of integration with Channel Manager:
- Automatic synchronisationAutomatically updates room availability across all channels in real time, avoiding the risk of overbooking or availability errors.
- Dynamic price managementIt allows prices to be adjusted according to demand, occupancy and seasonality, maximising revenue.
- Centralised reportingThe hotel receives all bookings in its PMS, regardless of the channel where they were made, making it easy to track and analyse performance data by channel.
Practical exampleIf a hotel uses LEAN Hotel System and decides to integrate it with a Channel Manager as Vertical BookingThe availability of your rooms is synchronised in real time on platforms such as Expedia y Booking.com. This means that if someone books a room on Booking.com, that same room is instantly removed from the other channels' inventories to avoid double booking (overbooking).
Payment gateways (PSP)
The payment gateways are essential for any hotel that wants to facilitate secure, fast and efficient electronic payments. Integration with PSP allows hotels to manage online and in-store payments, ensuring that all transactions are seamless and compliant with security regulations such as PCI-DSS.
Advantages of integration with payment gateways:
- Secure and fast paymentsGuests can make payments by credit card, debit card or alternative methods quickly and hassle-free.
- Authorisations and prepaymentsHotels may process prepayments or block security amounts on guests' cards prior to arrival.
- Regulatory complianceWhen integrating the system with a supported payment gateway, such as Redsys o AdyenThe hotels ensure that transactions comply with international security standards.
Practical example: A guest booking through a hotel's booking engine can pay immediately using his or her credit card through an integration with Redsys. This ensures that the hotel receives payment at the time of booking and that card details are protected by payment security standards.
Revenue Management Systems (RMS)
The Revenue Management System (RMS) is a tool that helps hotels maximise revenue by adjusting prices based on demand, customer behaviour and historical data analysis. By integrating with a RMSthe LEAN Hotel System can automatically adjust room rates based on market conditions, occupancy and competition.
Advantages of integration with an RMS:
- Revenue optimisationAutomatically adjusts room rates to maximise revenue without manual intervention.
- Demand analysisProvides detailed reports that allow you to forecast future demand and adjust your pricing strategy accordingly.
- Pricing automationRMS analyses historical and real-time data and adjusts rates on OTAs and the hotel website dynamically.
Practical example: If a hotel has low occupancy on certain dates, a RMS as Lybra can adjust room rates automatically to attract more bookings, while in periods of high demand, it can raise prices to maximise revenue.