RIFT VALLEY UNIVERSITY

DEPARTMENT OF BUSINESS ADMINISTRATION (MBA)

INDIVIDUAL ASSIGNMENT

COURSE: INFORMATION PROCESSING AND MANAGEMENT

TITLE: INFORMATION SYSTEM USED IN HOTEL INDUSTRY IN ETHIOPIA

BY:

ID No: RVUBBGBAMR/ /15

SUBMITTED TO: - Gosa Lema (Ass. Prof)

MARCH, 2024

BALE ROBE, ETHIOPIA

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1. Background of the Organization
Siko Mando Hotel is one the most popular Hotel in Robe Town, Bale zone, Oromia Region. The

Hotel gives many services to the Robe town community and others. As hotel industry the hotel

has its own strength, opportunity, weakness and threats. Strategy development for a hotel and

others company is the initial stage of the strategic management process, which consist of vision

and mission development, identifying the company's external opportunities and threats,

determining internal strengths and weaknesses, establishing long-term goals, formulating

alternative strategies, and choosing specific strategies which will be implemented.

The beginning of modern hotel industry in Ethiopia started in 1907 by Empress Taitu and the

hotel was named after her. Taitu hotel has contributed big role for the development of modern

hotel. The next generation of hotels was opened during the five years Italian occupation and was

called “ALBERGO” and the third generation hotels were built during the establishments of OAU

and ECA. Many research writings and history proved that the development of hotel industry is

related with travelling. Mackenzie and Chan (2009) explained that hotels provide food and

beverage and accommodation service for tourists or travelers. Likewise, the development of

hotels in Ethiopia is also related with the increasing number of local and foreign travelers in the

country. According to G/egziabher (2015) development in Ethiopia’s foreign relations,

particularly during the reign of Menelik II had, relatively speaking, an impressive impact in the

country, by implanting the seeds of modernization through the importation of European

technology and institution among which “hotel” is one subject

According to Ministry of Couture of Tourism (2015), currently there are around 463 hotels in

Ethiopia and out of this 112 hotel are found in Addis Ababa and the international chain hotels are

five in numbers which are Sheraton Addis, Hilton Addis, Radisson Blu, Golden Tulip and

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Marriot Executive Apartment. This total number of hotels in Ethiopia as well as in Addis Ababa

is including star and non-star hotel. Out of 112 hotels in Addis Ababa, 76 of them are star hotels

(from five star to one star). The rest of the hotels found in Ethiopia: 92 hotels in Oromia, 87

Amhara Region, 22 Dire Dawa, 53 Southern Region, 46 Tigray, 13 Afar, 12 Harare Region, 14

Somalia Region, and 8 in Beninshangul Gumuz Regional state.

2. Information system in Hotel Industry

In today's business landscape, information systems are a critical component of efficient and

effective operations. From transaction processing systems to customer relationship management,

there are various types of information systems. Each has its unique purpose, applications, best

practices, and implementation approach. In this article, we will explore the different types of

information systems, their uses, and how to implement them effectively. Information systems

(IS) are a vital part of modern-day businesses. They provide the necessary tools and resources to

effectively manage and process data and information. There are different types of information

systems, each with its unique application, best practices, and implementation approach. In this

article, we will explore the various types of information systems, their applications, best

practices, and implementation approach Information systems in the Hotel industry refer to

computer systems in a hotel that supply information about that hotel’s business operations. In the

current technology era, this is as crucial as it can get. This post also covers a lot of Hotel

Information systems in detail. Information systems play a crucial role in the hotel industry as

they facilitate planning, management, and overall operations of the hotels as well as

policymaking.

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Decisions Support Systems

Decision support systems aid the decision-making process. Each hotel creates a decision support
system based on the operational model of the hotel establishment. This system is particularly
important in ensuring that the hotel operations are functional and that decisions are made in a
timely manner. Some of the examples for these decision support systems in hospitality
operations would be:

 Price Management of food items

 Rate management of Hotel Rooms
 Dynamic pricing

Best Practices for DSS

 Ensure that the data used for analysis is accurate and up-to-date.
 Provide easy-to-use interfaces for users to access data analysis tools.
 Implement security measures to prevent unauthorized access to data.

Implementation approach

 Identify the types of decisions that need to be made.

 Identify the data required for decision-making.
 Develop data analysis and modeling tools that can be used to support decision-making
processes.

Transaction Processing System

The World is going gaga over the Cloud and Data analytics. Processing data effectively helps the

hotel to be more flexible to demand, understand customers and keep costs down. Transaction

Processing System allows business transactions involving the collection, retrieval, and

modification of transactional data. This system processes data generated about and by

transactions in the hotel.

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Transaction processing systems are designed to process large volumes of data generated from

day-to-day business transactions. They are commonly used in businesses that handle a large

number of transactions, such as retail stores, banks, and airlines. TPS is responsible for

capturing, processing, and storing data related to transactions. The primary purpose of TPS is to

ensure that transactions are processed accurately and promptly.

Some of the examples of transaction process system operations in hotels include:

 Creation of bills and invoices

 Sales order entry

 Reservations and booking entries

 Employee payroll

 Product order shipping and sales and similar things involving single or batch processing.

These systems are vital as they ensure that the data collected is accurate and timely, which

increases labor efficiency. It is mostly used by managers in the hotel industry in an operational

capacity. Information systems are an integral part of the complete IT infrastructure used in the

hotel industry. The tourism and hospitality sector has been a key beneficiary as it has allowed

contemporary travelers to enjoy a plethora of options. Information Technology in the hotel

industry is now probably the most important tool for sustained competitive advantages.

Information systems play a crucial role in the same.

Best Practices for TPS

 Ensure that data is validated and accurate before processing.

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  Implement backup and recovery mechanisms to ensure data is not lost in case of system

failure.

 Implement security measures to prevent unauthorized access to data.

Implementation approach

 Analyze business processes and identify the types of transactions that need to be

captured.

 Identify the types of data that need to be captured and stored.

 Develop a data model and design the TPS to capture and process data.

Customer Relationship Management (CRM):

Customer relationship management systems are designed to manage and analyze interactions

with customers. CRM systems are commonly used in businesses that have a large customer base,

such as banks, insurance companies, and e-commerce websites.

Best Practices for CRM

 Ensure that customer data is accurate and up-to-date.

 Provide easy-to-use interfaces for customer interaction.

 Implement security measures to prevent unauthorized access to customer data.

Implementation approach

 Identify the types of interactions that need to be managed.

 Develop a data model and design the CRM system to manage customer interactions.

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  Integrate the CRM system with other information systems to ensure data consistency

The Point of Sale (PoS) System used in the Hotel Industry

PoS is the most common form of information systems used in the Hotel industry. There are

various versions that are also used by the Front office of the Hotel and the Housekeeping

department. These systems incorporate registers, computers and any peripheral equipment that

can be established on a computer network. This system is important because it keeps track of

payroll, labor, and sales, as well as generates records that may be useful for accounting purposes.

Micros and versions of Micros are commonly used by Hotel restaurants, Fast food restaurants

and stand-alone restaurants. Even security departments of the hotel industry have their own PoS

system. There is a clear overlap in these information systems used in the hotel industry. A lot of

Hotel software providers have bundled packages for using multiple products under one

administrative panel. We have also listed below some of the facets that help hotel information

systems compete with others in the business. This quick list mentions where and how you can

use this hotel property management software and why are these useful.

Financial Reports: Competitive hotel property management software provides you with

financial and business reports regarding your hotel business. You can learn about room

occupancy ratios, the duration of the stay of your guests, payment collection methods, and

similar statistical forecasts for your hotel.

Hotel Administration: Hotel property management software helps you learn and execute

marketing drills, send promotional emails, organise staff training, and develop in-house

communication systems to bring ease to the processes.

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Food-service management: Hospitality management Software can not only help send real-time

information to kitchen units but can also track inventory, order goods automatically and assess

profitability and improvement areas.

Accounting: With the option to carry out accounting, you can assess profits-to-cost ratios,

prepare bills, and make payments to vendors and travel agents.

Online Bookings and Reservations: With online booking and reservation options, you can

manage your hotel website, offer room rates to customers, put new offers and deals over the

internet, and book rooms for your customers based on pre-deposit policies.

Check-Ins and Check-Outs: Hotel management systems or software allow you to manage

check-ins and check-outs of your customers. You can allot rooms, print check-in cards, receive

online payments, and extend the stays of your customers through a single software.

Rate Management: It is very important to manage your rates for the successful running of your

business. You can devise plans and provide your customers with variable room rates and offer

discount deals.

Housekeeping: You can develop lists of check-ins and check-outs and manage their

housekeeping. The software allows you to maintain communication with your housekeeping

staff. You can assign rooms to maids, develop their task lists, and review room status before and

after the housekeeping service. Apart from these, there are many other services which a hotel

property management software should offer.

Property Management Systems (PMS)

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This is a comprehensive software application that is used to cover basic goals such as

coordination of the operational duties of the staff at the front office, sales, and planning. Property

management systems facilitate the automation of important functions such as guest booking,

guest information, online reservations, as well as sales and marketing. The whole purpose of

PMS is to manage various operations of the Hotel and to streamline data.There are a lot of

customized PMS providers across the globe as covered in our post on Hotel Management

software.

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Conclusion:

Information systems are an essential component of modern-day businesses. They provide

businesses with the necessary tools and resources to manage and process data effectively. There
are different types of information systems, each with its unique application, best practices, and
implementation approach. Understanding the different types of information systems and their
applications can help businesses make informed decisions when implementing information
systems. By following best practices and appropriate implementation approaches, businesses can
ensure that their information systems are accurate, reliable, and secure.

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