Management information systems represent the approach a company takes to gather information used to make business decisions. Like any other industry, the hospitality industry — which includes hotels — needs a system to gather and disseminate information pertinent to running the organization.
Traditionally, management information systems comprised a set of manual processes that sent information from one individual to the next. Computerized systems shorten the lead time for this information transfer and allow hotels to send information in near real-time capacity to individuals.
Hotel administration includes several different responsibilities, from sales and marketing to room rentals, housekeeping, food service maintenance and facilities management. An information system can help companies track both financial and operational information at one point, allowing managers to measure the hotel’s effectiveness and efficiency.
Implementing technology allows hotel managers to determine how well they sell rooms, the profit from each night, the cost of ancillary services and the staff needed to run the company. For franchised hotels, this information is often sent to the company’s upper management for review.