2. ERP Systems in the hospitality industry
The modifications offered by the impulse of technologies force the change in the way business is conducted in the
hospitality industry. IS/IT in the hospitality industry must provide the required flexibility and efficiency by facilitating
the understanding of customer needs and adapt consequently [3].
ERP Systems emerged as a way to automate repetitive processes and provide managers with a global vision and
real-time all operations, solving the problems of disintegration and fragmentation of information [3]. The problem of
fragmentation of information is felt, as in other activities, within the hospitality industry [4]. In this industry, ERP
Systems have a particular relevance for the diversity of applications and specific systems for various functions. The
predominance of legacy systems, of difficult upgrading, maintenance and incompatibility, makes its updating more
complex [3].
The international chains, or larger units and groups, have adopted ERP Systems traditionally used in other
industries. SAP is market leader, in particular for larger hotels [5]. With regard to the specific processes of the hotel
units, primarily front office, for example, reservations, stock and supply, F&B (Food & Beverage), or point of sale
management (POS – Point of Sales), specific solutions are adopted, often from suppliers who do not offer integration
with the back office and the implemented ERP System [4]. As a consequence integration of applications is an
increasingly relevant issue.
In a study carried out at the hospitality industry in Israel, Heart et al. found that 97% of the hotel units were
computerized (but not by what could be considered ERP Systems), including those who had less than 50 rooms. The
most common front office applications were the reservations and the front desk; the most common back office
application was accounting. Unlike other industries, less common applications were sales and marketing, and human
resources [4].
In the same study, Heart et al. found the absence of ERP Systems targeted for the hospitality industry in Israel,
which forced the hotel units to acquire isolated applications from different suppliers. He also noted the absence of
integrated applications that share the same database. The diversity of applications from different suppliers increases
the complexity of the updating and maintenance of the applications implemented [4].