Effect of information technology on performance in upscale hotels

Improving productivity is the primary role of information technology (IT) in the lodging industry, while information resources have long played a crucial role in conducting successful lodging operations. A number of studies devoted much effort to investigate the relationships between IT investment and business productivity and performance, but the outcomes were not consistent. This study examines the effect of IT applications on their performance in lodging operations. The survey was conducted in upscale hotels to identify the relationship between IT usage and the performance of lodging operations. Front-office applications, restaurant and banquet management systems, and guest-related interface applications significantly and positively affected performance of lodging operations; however, guest-related interface applications were not significant. The findings of this study will benefit the lodging industry by providing critical information to management to assist in deciding whether a lodging operation should strategically invest in IT or not and in determining specific areas of focus for IT investment.