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Hospitality Industry

Hospitality Industry

Information Management System: Hospitality Industry

Executive Summary

In the hospitality industry, technology has proven to be an advantage that nobody wants to miss out on in their business. Technology has made it possible for firms in this industry to use most of the information that comes across to improve their business. Because of technology, for instance, it is easier to manage workers effectively and consistently. Similarly, it is possible to store and retrieve information about clients fast, which helps improve their experience and promotes loyalty to the business in the long run. A business that has been in operation for over 50 years will definitely benefit from having such an information management system.

Pie Chart

Pie Chart

An information management system would be a great development for the Hilton hotel. In that case, it will be possible for the hotel to manage its information to improve efficiency in its operations and the overall customer experience. The system will be able to ensure there are multiple points of inputting information into the system. This means that a lot of authentic information will be collected and used to improve the business. The collected information will also be safeguarded from data losses experienced from physical setbacks such as hardware faults through frequent backups.

Introduction

One of the industries that has greatly benefited from information and technology in the last decade is the hospitality industry. Thanks to this technology, it has been possible for individuals to improve operational efficiency, reduce costs, and improve the services as well as the customer experience in general. It makes sense for there to be an information management system that helps to ensure that these systems are functioning effectively. Considering that the Hilton has been in operation for over 50 years, it means that the organization has collected vast amounts of information that can still be used today. Having an automated and integrated system is the best way to use this information effectively and efficiently.

There should be clearly defined rules and procedures when it comes to feeding information into the system as well as getting it (Noor et al., 2011). The users of the system should know how to protect themselves and the company as a whole through safe practices that are also vigilant in nature. With such definitions, collecting and displaying the necessary information will be possible while avoiding integrity issues such as double entry. The next process would be to design a system that can manage this information as required (Mohapatra & Singh, 2011). The use of a relational database, for instance, could work, although it should have a proactive stance that should be able to regularly check the system and ensure that it is being used as desired.

Considering that this system will be able to have different users at the same time, it should be designed to function effectively. A systems analyst should manage the system and ensure that it satisfies its business and functional needs. If the system is not making business sense, then there is no reason for it to be implemented as it is. There should also be a database administrator who ensures that communication between the user and the information system is working as desired and without any issues. Requests to and from the database should always be unproblematic and able to do what it is the user wants done.

Annotated Bibliography

Al-Wattar, Y. M. A., Almagtome, A. H., & AL-Shafeay, K. M. (2019). The role of integrating hotel sustainability reporting practices into an Accounting Information System to enhance Hotel Financial Performance: Evidence from Iraq. African Journal of Hospitality, Tourism and Leisure, 8(5), 1-16.

This article is concerned with designing a system with significant reporting practices in the accounting information system to improve the performance of hotel finances. By integrating the accounting information system and sustainability report, it might be possible for the hotel to be able to operate more sustainably and with an eye on smoother flow in the long run. Although there is no proof that such integration will work effectively and efficiently, it is possible that it will do this. The importance of this article is to give an idea of the direction of these management information systems and their direction in terms of their development. It will help the organization to see just how advanced this technology is today and what it could achieve.

Boella, M. J., & Goss-Turner, S. (2020). Human resource management in the hospitality industry: A guide to best practice. London: Routledge.

This is an important book because it helps to point out the complexity of managing human resources in the hospitality industry. The book touches on the industry structure, labor markets, growth of the brands, talent management, and equal opportunities, amongst others. The book also touches on the industry’s policies, the firm’s purpose, and the processes involved in both the social and business environments. It is an important source because it helps clarify that a lot of information is involved in the process and how it can be best used to ensure that the appropriate information is collected and used by the system. This is an important book because it shows what information is needed for perfect employee management and how it can be integrated into the system for the best outcomes.

Goyal, A. P. (2014). Management information systems: Managerial perspective. Noida: Vikas Publishing House.

This is a book that is written to show how the managerial team can handle information systems in any industry. The book shows the basic aspects that the system should have with regard to the employees of the firms and their responsibilities. The book shows the common scenario and other possibilities and how they need to be handled so that the information that is collected is relevant, accurate, and able to improve the services in the future. The book pays particular concern to the hospitality industry, which gives the audience an idea of how to handle this very volatile industry. The author is also a professor and a scholar on management information systems and, thus, has the relevant authority on the subject.

Hua, N., Huang, A., Medeiros, M., & DeFranco, A. (2020). The moderating effect of operator type: the impact of information technology (IT) expenditures on hotels’ operating performance. International Journal Of Contemporary Hospitality Management, 32(8), 2519-2541. https://doi.org/10.1108/ijchm-09-2019-0753

This article examines how the operator approach in hotel businesses influences the relationship between IT expenditures and operating performances. The article mainly focuses on the moderating effects of operator type on hotel IT expenditures. The study found that the choice of operator determines how hotels can effectively use IT expenditures to improve operating performance, with the franchising operator type exerting the strongest moderating effect. Franchised hotels seemed to better employ their IT expenditures compared to independently owned hotels. This source is important as it highlights the organization’s operator choice can have an effect on the outcomes derived from the hotel management systems.

Jones, P., Hillier, D., & Comfort, D. (2016). Sustainability in the hospitality industry. International Journal of Contemporary Hospitality Management, 28(1), 36–67. https://doi.org/10.1108/ijchm-11-2014-0572

This article gives different ideas about what constitutes a sustainable hospitality industry. The way that the company defines its sustainability determines what kind of approach it will take and how the information system will be designed. Different definitions will mean various outcomes and unique designs on how the systems work. For instance, if sustainability is mainly continuous financial growth, the system will be different from satisfying current customers. These will have to collect different information and display unique information, too.

Khatri, I. (2019). Information technology in tourism & hospitality industry: A review of ten years’ publications. Journal of Tourism and Hospitality Education, 9, 74-87.

The use of information technology has been implemented in the hospitality industry for well over one decade now. During this time, a lot has happened and has eventually led the industry to become as reliant on this technology as nobody could have expected. The article contains analyses of the fundamental strategic options and how using them can be positive for the company. Similarly, there can be an analysis of innovative practices and ideas, matching the competitive environment and changing disruption, which shows the overall need for the technology and its importance in such an industry in both the long and short runs. This is an important article for the project as it shows what opportunities, philosophies, and approaches can push the organization’s use of information technology to be profitable in the long run.

Mohapatra, S., & Singh, R. (2011). Case Study: IT Strategy for Mayfair. Information Strategy Design And Practices, 229-269. https://doi.org/10.1007/978-1-4614-2428-4_6

This article is based on a case study of Mayfair (An Indian chain of hotels) and explores how the organization uses information systems in managing administrative, financial, and customer satisfaction aspects of the business. The case study also highlights the steps taken by the organization to ensure a smooth flow of information between different departments. This article is important to this project as it outlines the characteristics of the hospitality industry, highlights the factors to be considered when implementing information systems in the industry, calculates the ROI of technological expenditure, and demonstrates how information systems can be helpful in realizing a business’s objectives.

Noor, M., Kamal, M., Saiful, M., Nashid, M., & Masud, M. (2011). An Electronic Intelligent Hotel Management System for International Marketplace. International Journal Of Advanced Computer Science And Applications, 2(3). https://doi.org/10.14569/ijacsa.2011.020316

This article introduces a web-based intelligent system aimed at helping manage a hotel, reducing immediate manpower involvement. The article mainly focuses on the hotel’s reception policy, intelligent personalization promotion, and room facilities and aims to integrate several techniques to design the intelligent system. Special attention is paid to aspects of security, power savings, and reducing waste of water. In the power-saving aspect, the system employs an image-processing approach to detect the presence of occupants in a room. This is an important source as it gives an idea of how hotel management systems can be used to provide a high level of privacy compared to the mainstream manual system while improving reliability. Moreover, this source highlights the cost savings associated with integrated hotel systems in terms of labor and maintenance costs.

Nyheim, P. D., & Connolly, D. J. (2012). Technology strategies for the hospitality industry. Boston: Prentice Hall.

This book is concerned with the hospitality business and managing the information that flows within this industry. Although the book significantly focuses on casinos, this is information that can be used in hospitality. It also touches on information that can be used to handle the management of events as well as meetings. There are also some chapters that are concerned with investing and planning, which are all important when it comes to succeeding in the hospitality business. This book will help provide an idea of what the industry involves and also what to expect now that the information being collected is digitized. It will also give an idea of new paths for the future of the industry and company.

Pramudita, A., Bisma, M., & Guslan, D. (2020). The Distribution Channel Preferences in Purchase Decision-Making of Backpacker Hostel Customers. Binus Business Review, 11(2), 129-139. https://doi.org/10.21512/bbr.v11i2.6241

This article aimed to find the relationship between distribution channels and customer purchasing decisions in hotel bookings. The results found that Online Travel Agents (OTA) significantly positively related to clients’ purchase decision-making. In addition, the organization’s website positively affected clients’ purchase decisions and post-purchase behaviors. This study is important to this project as it highlights the distribution channels influencing positive decision-making in clients’ purchases. The findings will guide the organization in integrating the best distribution channels into the system.

Literature Review

In order for the organization to get a proper information system, the first step should be the most appropriate definition of the problem at hand. Defining why the organization needs these information systems will help find out the direction of the entire project (Mohapatra & Singh, 2011). In the case of the hotel, the idea is to be able to collect relevant information about the business and use it to make the process easier and more rewarding for the company. Because the organization’s information is mostly offline, the company does not utilize most of it on a regular basis, which means that it is not using it properly to improve its service provision and overall business (Nyheim & Connolly, 2012). This definition will also point out the company’s values, norms, and vital interests.

The information systems should then be designed by responsible professionals such as systems analysts and programmers. These individuals must ensure that the system almost always guarantees the ability of the users of the system to capture the essential business requirements (Boella & Goss-Turner, 2020). This design should also always be done using the help of the stakeholders in the system. These users of the system all have their own roles and challenges, which might often be ignored by the developers, thus leading to the system remaining unused (Khatri, 2019). For instance, if the system’s directions are not clear, the users will prefer leaving the system alone and using a more manual and direct one.

It is also important to understand the importance of controlling information systems. Although the new information is not stored in a physical state, it is equally susceptible to destruction, fraud, error, or misuse, all of which could be a barrier to how the business is run. The system administrators, thus, ensure that the data getting into the system is accurate and complete (Goyal, 2014). Security will often mean procedures, policies, and technical measures to ensure the data in the system is not stolen or destroyed. Errors are also often common in these systems and industries and could negatively impact the core business (Al-Wattar et al., 2019). The processing cycle risks many errors, including errors during data entry, hardware issues, program errors, and computer processes.

To avoid these errors, there must be different types of controls put in place to reduce them. The general controls include the basic policies and procedures involved when interacting with any part of the system (Noor et al., 2011). All of the users of the system should be told what they need to know about the system, how it functions and its shortcomings, and how it can be properly managed. The general controls include the use of computer programs such as antiviruses and that of data files in general, such as encryptions. The design can also be used for security where only the assigned users can use the machine, amongst many others (Jones et al., 2016). There are also application controls that are specialized and unique to each application. For instance, payroll can have unique controls and are not available for order processing and the like.

Program and Technology Recommendations

The Hilton hotel has been in existence for around 50 years, which means that it might not have a lot of space to grow, but it can fight to retain its reputation in the industry. Because of this, it is best that the company’s approach to developing the system be to retain its clients and ensure their complete satisfaction (Pramudita et al., 2020). To find out whether the system will be delivering this, it will be essential for the organization to have its own matrix. The matrix that will ensure that this system works effectively includes customer satisfaction, labor cost, gross profit, and occupancy rates. Information from these four aspects shows whether the business is doing enough and can be used to show whether the system is operating in an effective and productive manner.

The program in question must have three front ends: one for the clients, another for the employees, and the third for the organization’s managers and executives (Al-Wattar et al., 2019). These ends should be restricted to only submitting some form of information that can then be properly stored in the system.

The four data sources (customer satisfaction, labor cost, gross profit, and occupancy rates) can show whether the business is making money. Since the organization’s primary business is renting out rooms to travellers, the occupancy rates matter (Hua et al., 2020). These also will determine spending on the other offerings. Their satisfaction is also important as it will determine whether these customers will come back and be loyal to the brand. From that point, there will be consistent pay, all of which can be determined under gross profit. This is an important figure to consider because it shows just how much money is being made before the expenses. Labor costs are also important as they can potentially determine how pleased with their services the clients will eventually be.

Customer satisfaction is one of the main metrics and reasons for having this system. Information about the client’s experience should be collected at various key points, with the possibility of these collection points being changed or updated. For instance, when checking out, the client could be asked to give the overall experience a grade and comment on it. Higher grades should be the target for consumer satisfaction, and any complaints mentioned by the clients should be taken seriously and improved if possible.

The second metric that will help show whether the information system is working as it should is the occupancy rate. It is important to analyze the number of days occupied by any client and determine whether it can be improved and whether any measures taken are working (Mohapatra & Singh, 2011). If the client is feeling more at home, they should stay longer. Such information can be provided by those managing these rooms. The Market Penetration Index is another important metric in showing how an organization compares to others in the industry (Nyheim & Connolly, 2012). The information used in this case is a preset set showing the average rates by competitors. Dividing Hilton’s average by that of the industry will show how effectively the hotel handles its business.

Average Daily Rate

Average Daily Rate

Information used in this Market Penetration Index is collected by managers who overview various aspects of the business. Such a manager, for instance, must know the expenses and profits of the businesses as well as any other issue that could affect the estimate (Noor et al. 2011). Similarly, business executives should get information from others, analyze it, determine its credibility, and apply the information to improve outcomes.

There are different forms of data that matter to the executives in the hospitality industry. Such information comes from different sources and includes current bookings, past occupancy rates, and external information such as why people come to the organization on particular dates and how they are likely to spend. When correctly interpreted and applied, such data could benefit the hospitality industry; one of these is the revenue information, which shows how the business is doing (Goyal, 2014). It should also be possible for the different executives to have information that touches on the hotel’s consumer experience (Hua et al., 2020). For instance, they should know their clients’ demographics and how relevant their services are.

Business executives should also have information about different aspects of their competition and the threats or opportunities they pose (Khatri, 2019). Such information includes the potential client’s opinion about the competition, what they review on their websites, and what they say are their plans for the future. In some instances, this information could inspire innovation at the home firm that could help differentiate the offered products and improve the business’s competitive advantage.

The regulatory, privacy compliance, and security expectations for the company are for all of the client data collected by the company to be used transparently and in a secure manner. Privacy is also vital so that the data provided by these clients is not used wrongly and without any regard for their needs and preferences. The two laws that matter the most in this aspect are the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), which are supposed to regulate the management of data and relevant systems in a hospitality setup. The email and social media strategy will also be designed to help communicate new offerings to the clients. Clients who are interested in specific aspects, such as outdoor activities in a particular area, should be satisfied by the emails and social media being put out.

When it comes to information systems used in the hospitality industry, it is vital to know the laws involved, as the information used here is usually sensitive. The company is expected to know and understand the risks that come with having such technology in place (Jones et al., 2016). The company should know that any loss of data that was entrusted to them by the clients will mean breaching privacy law obligations, which could lead to lawsuits and a decline in clients’ trust in the business. In addition, the loss of confidential information is also likely to reduce their competitiveness in the industry, setting them back significantly. Lastly, if attackers access confidential information, they could launch denial of-service attacks, making it tough for the system to work as it should. This could mean dissatisfaction and low earnings as a result.

Financial fraud is another threat that is likely to happen due to handling clients’ sensitive information, among other evolving threats that risk the clients’ well-being. Because of these possibilities, it is important for such an organization to ensure that there is information security hygiene and adequate infrastructure, and effort could be put into ensuring that this information is collected for positive reasons (Pramudita et al., 2020). The hotel staff handling sensitive information is also expected to be sensitized and trained on how they can best handle their clients’ information. Organizations should have policies and codes of conduct to show how information and relevant systems within the organization should be managed (Boella & Goss-Turner, 2020). The information should also always be handled privately, and only those who need and are authorized to access the information should be granted access.

Social media will be used to update both existing and potential clients on the plans that the organization is working on. For instance, if the company is opening new branches in particular locations, this should be highlighted so that those who need it will be notified. Email communication will only be used on specific clients, what they need, and only using information that these clients have approved. Strictly implementing these measures would be a great step in guaranteeing privacy. Lastly, cloud computing will be used for backing up information that is being used in the company’s information system. Being a backup of the physical system, both systems should be in sync to ensure frequent data backup. Thus, the system should be saving the information to the cloud at a few minute intervals so that it is up to date and any distraction does not negatively harm the business.

Conclusion

A management information system is one of the most important acquisitions for many hospitality organizations today. For a hotel like the Hilton, which has been in operation for over 50 years, there is a lot of information that it has to deal with, which could be used in improving the business that the organization can do. Having an information system will help ensure that it is run in a controlled manner and replicates the desires of the firm’s stakeholders. Such systems could have matrices such as hotel occupancy and customer satisfaction, showing which aspects of the business have room for improvement.

References

Al-Wattar, Y. M. A., Almagtome, A. H., & AL-Shafeay, K. M. (2019). The role of integrating hotel sustainability reporting practices into an Accounting Information System to enhance Hotel Financial Performance: Evidence from Iraq. African Journal of Hospitality, Tourism and Leisure, 8(5), 1-16.

Boella, M. J., & Goss-Turner, S. (2020). Human resource management in the hospitality industry: A guide to best practice. London: Routledge.

Goyal, A. P. (2014). Management information systems: Managerial perspective. Noida: Vikas Publishing House.

Hua, N., Huang, A., Medeiros, M., & DeFranco, A. (2020). The moderating effect of operator type: the impact of information technology (IT) expenditures on hotels’ operating performance. International Journal Of Contemporary Hospitality Management, 32(8), 2519-2541. https://doi.org/10.1108/ijchm-09-2019-0753

Jones, P., Hillier, D., & Comfort, D. (2016). Sustainability in the hospitality industry. International Journal of Contemporary Hospitality Management, 28(1), 36–67. https://doi.org/10.1108/ijchm-11-2014-0572

Khatri, I. (2019). Information technology in tourism & hospitality industry: A review of ten years’ publications. Journal of Tourism and Hospitality Education, 9, 74-87.

Mohapatra, S., & Singh, R. (2011). Case Study: IT Strategy for Mayfair. Information Strategy Design And Practices, 229-269. https://doi.org/10.1007/978-1-4614-2428-4_6

Noor, M., Kamal, M., Saiful, M., Nashid, M., & Masud, M. (2011). An Electronic Intelligent Hotel Management System for International Marketplace. International Journal Of Advanced Computer Science And Applications, 2(3). https://doi.org/10.14569/ijacsa.2011.020316

Nyheim, P. D., & Connolly, D. J. (2012). Technology strategies for the hospitality industry. Boston: Prentice Hall.

Pramudita, A., Bisma, M., & Guslan, D. (2020). The Distribution Channel Preferences in Purchase Decision-Making of Backpacker Hostel Customers. Binus Business Review, 11(2), 129-139. https://doi.org/10.21512/bbr.v11i2.6241 

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Question 


Information Management System: Hospitality Industry

Scenario:

You have recently been hired as a Chief Information Governance Officer (CIGO) at a large company (You may choose your industry).  This is a newly created position and department within the organization that was founded on the need to coordinate all areas of the business and to provide governance of the information.  You will need to hire for all positions within your new department.

Hospitality Industry

Hospitality Industry

The company has been in business for more than 50 years and in this time has collected vast amounts of data.  Much of this data has been stored in hard copy format in filing cabinets at an offsite location but in recent times, collected business data is in electronic format stored in file shares.  Customer data is being stored in a relational database, but the lack of administration has caused data integrity issues such as duplication.  There are currently no policies in place to address the handling of data, business or customer. The company also desires to leverage the marketing power of social media, but has no knowledge of the types of policies or legal issues they would need to consider. You will also need to propose relevant metrics that should be collected to ensure that the information governance program is effective.

The CEO and Board of Directors have tasked you to develop a proposal (paper) that will give them the knowledge needed to make informed decisions on an enterprise-wide Information Governance program, addressing (at a minimum) all of these issues, for the company.

Requirements:

The paper should include at a minimum of the following sections:

  1. Title page
  2. Executive Summary (Abstract)
  3. Body
    1. Introduction (including industry discussion – 1-2 pages)
    2. Annotated Bibliography (2-3 pages)
  • Literature review (2-3 pages)
  1. Program and technology recommendations, including:
    1. Metrics
    2. Data that matters to the executives in that industry, the roles for those executives, and some methods for getting this data into their hands.
    3. Regulatory, security, and privacy compliance expectations for your company
    4. Email and social media strategy
    5. Cloud Computing strategy
  2. Conclusion
  3. References
  4. You must include at least two figures or tables. These must be of your own creation. Do not copy from other sources.
  5. Must cite at least 10 references and 5 must be from peer reviewed scholarly journals (accessible from the UC Library).
  6. This paper should be in proper APA format and avoid plagiarism when paraphrasing content. It should be a minimum of 8 pages in length (double-spaced), excluding the title page and references.

Milestones:

  • Week 3 – Introduction Section – A 2-3 page paper describing the industry chosen and potential resources to be used. 100 pts.
  • Week 5 – Develop a full annotated bibliography (3-4 pages) and develop the literature review (3-4 pages). 200 pts.
  • Week 7 – Completed final research paper (both milestones combined together and include the last sections as discussed in the list above). 300 pts.

Total:                  600 pt

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