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Maringa/Maringa/Africa Habitat Review x (200y)

Performance Enhancement of the Catering Information Systems in ehotels, through ICT Interventions A case of Kenyan Hotels
Wamuyu K. Maringa and Mwangi Maringa Received on x
th

xyz 200b; received in a revised form 200c; accepted______200d

Abstract Prevailing trends of globalising world markets, along with their Information and Communication Technology (ICT) anchor, pose a critical challenge to the local hotel industry. In order to maintain competitiveness in the world scene, this industry urgently needs to adopt e-commerce, in its basic unit of function, the hotel into e-hotels. Good business sense though demands controlled change whose elements are clearly understood, in order to optimise resources, and maximise the desired positive results. It is crucial therefore to fully understand the relationship of hotel activities and the related use of ICT. For this reason, attention is spotlighted upon the Catering Information System (CIS) in e-hotels, of food, beverages, conferencing, banqueting, and rooming, Products and Services. A descriptive field-setting inquiry that relies on the sample cross-sectional survey research design is used here. Cluster, stratified, and simple random sampling procedures are assembled into a complex random sampling design, through the use of the proportional allocation method. The broad spectrum of hotel strata by star rating and therefore scale and quality of operation is probed to attain a full understanding of the industry. Credible generalisable scientific theory regarding the use of ICT in e-hotels, results. The CIS, though seemingly heavily loaded on localised physical operations, is found to be quite dependent on information flows. It is seen to be distinctly responsive to the use of ICT, which impulse compels variable improvement of performance along the elements of this CIS. Recipe Costing Systems, and Stock Control Systems are the recommended most responsive points of intervention. They are followed by Rooming, and then sequentially: Conferencing and Banqueting, followed by Electric Points of Sale, with Automated Mini-Bars coming in last. Key Words: Efficiency, E-Hotels, Information and Communication Technology, Catering Information Systems Introduction The onset of the current information and communication revolution, driven as it is by fast transforming technology is decisively merging business globally into one large market (Molenaar 2002). In this market, opportunities, services and products are tasked to maximizing their individual visibility in order to effectively compete for a clientele that is increasingly critical of its choices, having attained much Information and Communication Technology (ICT) literacy (Bennett 1993; Cline 2000). Hotels on their part are intrinsically embedded into this global economy and its competitive markets, with clientele shifting globally in response to perceived superior nodes of attraction (Bennett 1993; Molenaar 2002). Local hotels must display rapid dynamic adaptation or loose-out in these competitive world markets (Economic Survey 2003, 2007). These hotels are not monoliths but rather assemblies of mutually reinforcing activity hubs that interact internally through information transfers to promote efficient service delivery and externally to market their quality service (Cho & Olsen 1998). Their inevitable reliance on information flows underscores the value for an increased role of ICT and therefore a reorientation from the traditional or conventional business to contemporary ecommerce; from ordinary or classic hotels e-modern hotels. The latter are visible on the low-cost distribution channels with larger information storage, of internet, in websites and with attractive virtual tours as well as e-

Maringa/Maringa/Africa Habitat Review x (200y)

reservations. They operate on a solid anchor of an elaborate ICT infrastructure (Collins & Murphy 2002; Gilbert & PowellPerry 2003; Hoof & Combrink 2003). This ICT base has pregnant potential to promote better, more efficient hotel operations having translated them into the e-hotel mode, by enabling easier and more extensive information flows both within and outside the hotels (Hansen & Owen 1995; Buhalis 1997; Buhalis & Earl 1997; Cho & Olsen 1998). A critical point of interest in this changing disposition of hotels into e-hotels is the activity node of Catering Information Systems (CIS), one of d seven such centers of hotel activities as outlined in the trait perspective of hotel structuring (Cho & Olsen 1998). This activity hub features the basic service delivery functions to clients of meetings & group consultations in seminars and conferences, reception based dining functions, recipe production and delivery as well as monitoring, stocking processes, electronic sales and their diverse locations, automated mini-beverage outlets, and bedroom accommodation, along with their inherent systems that support each of these functions (Seth & King 1994; Cho & Olsen 1998; Maringa 2007). Clearly these functions will only work well when there is a symbiotically unfettered interchange of information between them creating positive synergy in service delivery. Efficiency here is factored in form of actual money value and its associated indices of speed of production and associated man hours. It is critical then to determine how this activity of CIS responds to the infusion of ICT in hotels. The responsiveness when detected would be most useful when disaggregated into respective dispositions of the six functions of the CIS, to the extent of even developing a hierarchy of sensitivity of these functions to ICT impulses. In this way critical points f intervention that are

most ideal and economical or ones that display most need are highlighted. The hotel then most effectively can be translated into e-hotels and achieve maximised competitiveness in the global market with well horned in sensitivity or responsiveness to the clientele. The Information and Communication Character of Catering Information System Competitiveness in contemporary hotels and therefore e-hotels is predicated upon on-the-spot decision making which requires dependable current or minute-by-minute information flows within and outside the hotel and its parent industry. This need for efficient information flows is well served by Information and Communication Technology (ICT). Every function in the Catering Information Systems (CIS) of hotels generates information in respect of for instance Conferencing needs, Dining demands, recipe types and food quality as well as quantities, stocking procedures and levels, beverage consumption, and room accommodation needs (Figure I). Information and Communication Technology (ICT) provides a useful media to support the necessary inter-function/intra-activity node and inter/intra activity node transmission of feedbacks or decisions (Olsen & Connolly 2000; Connell 2002). It is time for the hotel industry to embrace such technological advantages as ICT has to offer in all its activity centers, without bias, in order to foster better operations (Cline 2000; Jeong, Oh, & Gregoire 2003; Gilbert & Powell-Perry 2004). Unfortunately, outside the front office and finance operations of local hotel and tourism industry, and unlike in other businesses today, ICT has not been aggressively grafted into the operations of this industry, where computers feature prominently as critical tools to bolster competitiveness and information gathering processing and use (Maringa 2007; Davis, Lockwood, & Pantelidis 2008).

Maringa/Maringa/Africa Habitat Review x (200y)

PERFORMANCE Distribution Cost

Storage Acquisition

PRODUCTIVITY

EFFICIENCY Manpower

Time

Conferencing & Banqueting

Electronic Points of Sale

Recipe Control Systems

CATERING INFORMATION SYSTEMS

Rooming

Stock Control Systems

Automated Mini - Bars

INFORMATION & COMMUNICATION TECHNOLOGY

Figure I: Conceptual framework; Source: authors, 2009

The often cited excuse that there are no relevant, well adapted software in the market is at the best purely a lame duck sorry excuse. There are for instance software applications such as the Catering Information Systems (CIS). This software is a subcategory of Management Information System (MIS) that is a handy tool for food and beverages processing and consumption control; which is predicated upon massive and widely varied information ranging across

purchasing, storage, processing, service, receipting and financial controls. A well applied CIS offers fast compilation of information that is increasingly more accurate, accessible, and easy to both manipulate, interpret and control, leading to desirable financial containment of expenditure (Maringa 2007; Davis, Lockwood, & Pantelidis 2008). Catering Information Systems CIS is principally informed and therefore constituted by: Control and documentation

Maringa/Maringa/Africa Habitat Review x (200y)

of all beverage and food-stock items by classification and individual item; Recording and costing all store transactions throughout the unit; Calculation of values of stores issued, held and demanded, with automatic updating on price changes; Maintaining store levels in all stock locations; Automatic recording, at the point of entry or exit from store, all stock movements by destination, types and costs; Generating purchase orders based on reorder levels; Recording purchase orders status, being deliveries awaited, and those partially fulfilled; Updating stock levels on receipt of purchase orders; and finally Calculating stock-checks and generating period-end reports, which also serve the recipe/menu planning subsystem(Maringa 2007; Davis, Lockwood, & Pantelidis 2008; Maringa 2009). The recipe/menu planning subsystem in turn encompasses: The compilation of menus from an index of recipes; The storage of cycle of menus; The calculation of the specific ingredient requirements based on coupled menu; The generation of a stores requisition to meet the ingredient requirements; The costing of individual menus; The costing of total meal requirements; The ability to plan costed meals for routine and special functions; and the analysis of historic data to food usage by type, and to provide a data base for developing a demand model(Maringa 2007; Davis, Lockwood, & Pantelidis 2008; Maringa 2009). As a result, this outlook of the Catering Information Systems CIS with regard to fundamental information assembly and its transmission is visible both in the overall activity hub holistically but even more usefully and with increased alacrity within its constituent six functions of: Conferencing and Banqueting, Recipe Costing Systems, Stock Control Systems, Electric Points of Sale, Automate Mini-bars, and Rooming. There is good reason therefore to probe the seminal nature of Catering Information System CIS in e-hotels, as is the case in this inquiry, in order to verify empirically

what otherwise appears in theory to be overtly manifest. The Problem In a globalising world it matters little where a business is located spatially within the world geo-political landscape, as national boundaries have become rather diffuse and are no longer able to guarantee localised monopolies (Molenaar 2002). In fact hospitality institutions and more specifically hotels in Kenya are confronting growing competition from their counterparts more proximally located in the Americas, Asia and Europe from where most customers for our local tourist trade emanate from (Economic Survey 2002, 2003). In these alternative hotels, marketing and operations have integrated ICT and particularly internet well to their advantage as they are able to reach customers faster and facilitate consultation or inquiries, choice and decision making in a one-on-one marketing approach better (Evans & Laskin 1994; lauire 2000; Murphy, Olam, Schegg, & Frey 2003). A failure of local hotels to adapt into e-hotels will inevitably result in even more drastically eroded international market share. It is critical then that urgent measures to transform local hotels into e-hotels are put in place (Cline 2000; Jeong, Oh, & Gregoire 2003; Gilbert & Powell-Perry 2004). The move though must be driven by accurate empirical knowledge of the shortfalls and challenges of the operations of local hotels. Naturally, such knowledge can only be obtained from systematic inquiry of the local hotels and one that isolates homogenous activity components of these hotels such as the seven dimensions of the CAPITA construct of hotels, in order for incisive, authentic information that is erstwhile lacking and one that supports clear decision making to emerge (Maringa 2007). Such detail and circumstantial uniqueness would also reveal penetrating need levels and peculiarities that would on their part

Maringa/Maringa/Africa Habitat Review x (200y)

suggest very specific interventions. These then are able to decisively re-orient hotels into effective competitive e-hotels capable of re-capturing the otherwise waning global market share. The expected positive critical contribution of the hospitality and tourism industry to the local economies would then result. Aims and Objectives Research here seeks to determine the relationship if any, that obtains between hotel operations and the Information and Communication Technology (ICT) inputs for improved service delivery at the Catering Information Systems (CIS) activity level. Two mutually supplementary hypotheses are set forth to guide this inquiry. The first one, a relational scientific hypothesis is the null hypothesis, and it assumes the following form: H0: There is no relationship between the use of Information and Communication Technology and performance at the Catering Information Systems in e-hotels.

hypothesis as useful pointers towards optimal areas of ICT interventions for improved performance of the hotels. Methodology Kenya was the selected case study, where these ideas are tested. It is a uniquely prime tourism destination in Africa, with world fame. The tourism industry on its part is a principal pillar of the Kenyan economy. Tourism in Kenya and its hotels represents well the desired future direction of national economic growth, in a great majority of developing nations, the world over. Hotels in the country were ordered first into three groups, which coincide with key tourist destinations in the country. Within each of the groups, Nairobi, Coastal, and Nature Reserves clusters, the hotels were then ordered along a hierarchy of improving quality and scale of operations. Out of these strata that range from 2 to 5 star-rated hotels, premises for actual investigation were selected on a simple random sampling procedure. A complement of 30 such hotels was assembled using the proportional allocation method, in order to keep within the confines of probability theory (Lapin 1981, Kothari 1996, Nachmias & Nachmias 1996, Mugenda & Mugenda 1999, Miller). This is how homogeneity was ensured and a representative balanced achieved. Validity and reliability were therefore effectively built into the arising results (1991, Emory & Cooper 1995, Shaughnessy & Zechmeister 1997). Data was measured on the ordinal scale, considering that the responses that are obtained come in as opinions. Performance, as manifested by efficiency and productivity was measured here not in absolute terms. It instead was determined by the seasoned opinion of hotel managers and system administrators in hotels, following the structured interview schedule that was administered to them (Table I).

The supplementary hypothesis selected for use here is an alternative hypothesis, and it on its part assumes the following form: H1: There is a relationship between the use of Information and Communication Technology and performance at the Catering Information Systems in e-hotels.

In testing theses hypotheses, premium is accorded to detail, that allows the functions of the CIS and their respective dispositions to ICT to emerge. In this way a perspicaciously particularised panacea to specific need areas and levels, and a carefully prioritised ICT intervention can be formulated. Sensitivity to spatial locations and scale of hotel operations of observed heightened responsiveness to ICT interventions is also sought for when interpreting the set

Maringa/Maringa/Africa Habitat Review x (200y)

Table I: Performance in the Catering Information Systems that results from the Application of Information and Communication Technology (ICT)
PRODUC T AND SERVICE S [Catering Informatio n Systems] 1 ACQUISITION COST TIME MNP 01 02 03 N A 3 Y B 6 N A 3 Y B 6 N A 3 Y B 6 COS T 04 N Y A 3 B 6 STORAGE TIME MNP 05 06 N A 3 Y N B A 6 3 Y B 6 DISTRIBUTION COST TIME MNP 07 08 09 N Y A B 3 6 N A 3 Y B 6 N A 3 Y B 6

3 4 5 6

Respon se Code Score/S cale Conferencing & Banqueting AICAPC Recipe costing system AICAPR Stock control system AICAPS Electronic POS AICAPE Automated minibars AICAPA Rooming AICAPO

Legend: AICAPC: Performance of conferencing and banqueting; AICAPR: Performance of the recipe costing system; AICAPS: Performance of the stock control system; AICAPE: Performance of the electronic points of sale; AICAPA: Performance of the automated mini-bars; AICAPO: Performance of rooming all represented in terms of improved efficiency and productivity in response to the application of ICT in hotels. Source: Maringa, 2007

These managers were taken to have a good experiential feel of the performance of each function, in consideration of all the related knity-gritty of communication and service demand. Such detail if sought for in an inquiry of this spatial magnitude would result in rather lengthy interview schedules. It would be difficult to conclude any interview promptly as much time would be needed. The study then adopted an overall value judgment of performance in each dimension. Here then, efficiency and productivity in the work process was measured with regard to the acquisition, storage, and distribution of products and services. The query that was posed to all sampled respondents was: Does the application of Information and

Communication Technology (ICT) increase efficiency and productivity of your premises in terms of, reduced cost, reduced time, and reduced manpower? (Answer yes or no). Respondents were guided by an enumerator, during personal interview sessions, using a structured interview schedule survey instrument, to consider all six functions of the catering information systems, these being, conferencing and banqueting, recipe costing systems, stock control systems, electric points of sale, automated mini bars, and rooming. This is the same level of detail to which analysis of the observed response of functions of Catering Information Systems to stimulus from ICT was carried out.

Maringa/Maringa/Africa Habitat Review x (200y)

Information and Communication Technology was in turn identified and then marched to the functions of the primary work process in terms of the following of its elements: Levels of computerisation, computer literacy, intensity of computer usage, mode of inquiry for hotel services by clients, satisfaction with the prevailing reservation process, and level of virtual tours. Analytical Basis and Focus On the whole, all these three measures of performance as regards efficiency and productivity recorded extremely high and at times perfect correlations in the responses they elicited, with but a few non conforming instances. The activity levels, their functions, and aspects of the hotel were examined against aspects of e-hotels, in categories that were probed in the field of Levels of computerisation (Numbers - 0 to 25%, 26% to 50%, 51% to 75%, and 76% to 100%, coverage of the departmental computing needs, types branded of cloned, capacity Pentium I, II, III, to IV, and duration of use) in some identified ten functional departments, namely: Hotel Finance, Human Resource, Marketing, Front Office House Keeping, Food and Beverage, General Manager, Business Units, Information and Communication Technology, and Security. These then constituted the background information on ICT and markets, hereon accorded the acronym BIML. Another field that was also similarly probed was the one of computer literacy and intensity of computer usage, within the same ten functional departments. The indicators that were used here included Frequency of use, type of work done- complexity, software in use - sophistication, and duration of use. Another field that were looked into included, Internet connectivity (competitiveness of internet service providers - Class II ISP: Nairobinet, Wananchi, Jambonet, Iconnect; Class I: Swift global, Access Kenya, Africaonline, and UUnet, type of network

infrastructure, network type - whether cable or wireless options). Mode of inquiry for hotel services (room, conferencing and dining) by clients was identified as yet a further field and was examined in respect of the principle vehicle of inquiry M: Mail; T: Telephone; F: Fax; E: e-mail; O: Mobile; W: Website, its frequency, resulting bookings, arising confirmations, and consequent rate of occupancy. It was considered important here to determine the effectiveness of this reservation process by assessing the relative extent of client satisfaction. Finally the field of a hotels on reliance on websites and the expected ensuing virtual tours was also explored in respect of, first the very presence of such websites and their facilitation of virtual tours, the dexterity of the virtual tours in enabling choice of reservations and facilitating affiliate marketing as well as allowing chain linking. Descriptive Data Analysis (Catering Information Systems and the Prevailing Forms of Computerisation in Hotels) The competitive advantage in hotels, of the CIS that is outlined here, is one that obtained in response to the application of ICT. It is the resulting improved efficiency and performance in the work process with regard to the acquisition, storage and distribution of products and services at the primary activity level. The analysis of trends in the Nairobi, Coast and Nature Reserves clusters, and the 2-5 star rated strata of hotels, were satisfactorily represented by a focused analysis of cost in acquisition within the conferencing and banqueting function of the primary activity level in a hotel. The emerging trends were taken to confidently apply to all six functions, and also their constituent considerations of acquisition, storage, and distribution, in respect of performance as measured by cost in hotels. Based on simple numbers of positive responses, the Nairobi cluster showed the

Maringa/Maringa/Africa Habitat Review x (200y)

best response (scoring 80% yes responses), and in effect the strongest association of competitive advantage with the application of ICT. Performance was measured using cost in acquisition in respect of all the six products and services elements of Catering Information Systems. These included conferencing and banqueting, recipe costing systems, stock control systems, electronic points of sale, automated mini bars, and the rooming resource (Table II). Next followed the Nature Reserves cluster which for the six products and services

elements of catering information systems scored yes responses as reported in table II; returning the same order of conferencing and banqueting, recipe costing systems, stock control systems, electronic points of sale, automated mini bars, and rooming (Table II). At the bottom came the Coastal cluster with the respective hierarchical scores of the yes response as shown in table II, for all six products and services elements of catering information systems, when arranged in the same order.

Table II: Response of the Catering Information Systems to the Application of ICT in Hotels for the Nairobi, Coast and Nature Reserves clusters
CONF & RECIPE BANQUETING COSTING SYSTEMS (4) (4) NAIROBI 80% 80% (4) (5) COAST 30.80% 38.50% (4) (6) NRESERVES 33.30% 50% (12) (15) ALL THREE 40% 50% STOCK CONTROL SYSTEMS (4) 80% (5) 38.50% (6) 50% (15) 50% ELECTRONIC AUTOMATED POINTS OF MINI-BARS SALE (4) (4) 80% 80% (3) (2) 23.10% 15.40% (3) (3) 25% 25% (10) (9) 33.33% 30% ROOMING

(4) 80% (5) 38.50% (5) 41.70% (14) 46.67%

Absolute values represent number of respondents giving yes response then translated into % of total respondents; Source: Research data, 2007

When using means of the scored interview schedule ratings, some revision in ranking occurred. It was clear that the Nairobi cluster recorded the best response and therefore strongest relationship of competitive advantage to the application of ICT in the Catering Information Systems. The Coastal cluster came next in order, and with the nature reserves cluster performing rather poorly at third place (Table III, and Figure II). Efficiency and performance of hotels that was prompted by the application of ICT in the Nairobi cluster essentially rose with increasing star rating. It leveled out with the maximum possible response level at the three-star rated hotels, and remained constant without further change up to the

five-star rated hotels. In the Coastal cluster, competitive advantage rose continuously all through, but for a minor dip at the three-star rated hotels (Table III, and Figure II). These patterns in essence describe the changing intensity of the association of competitive advantage and the application of ICT in hotels for the Nairobi and Coastal clusters. The Nature Reserves cluster on its part displayed a unique response level of the efficiency and performance of hotels in their primary activities, to the application of ICT that diminished progressively from the two to the three and then to the four-star rated hotels. The five-star rated hotels in this cluster, whose response rate surged well beyond the original values recorded for the two star-rated hotels, were the only

Maringa/Maringa/Africa Habitat Review x (200y)

ones that redeemed this poor state of affairs (Table III, and Figure II). The diverging nature of this Nature Reserves cluster appeared to impose itself over the other two. To this extent, it caused

the overall response level and therefore relationship of competitive advantage to the application of ICT, for the three clusters (Nairobi, Coast, and the Nature Reserves) when combined to drop drastically in a similar fashion (Table III, and Figure II).

Table III: Competitive Advantage of Primary Activities in Hotels for the Nairobi, Coast and Nature Reserves clusters in response to the Application of Information and Communication Technology
2* hotels 4 3.63 4.25 3.86 3* hotels 6 3 3.25 3.47 4* hotels . 5.5 1.51 2.84 5*hotels 6 6 6 6

AICAP means Nairobi AICAP means Coast AICAP means Nature Reserves AICAP means 3 circuits

AICAP: Competitive advantage (efficiency and performance) of Catering Information Systems in hotels in response to the application of ICT; Absolute values represent means of scores in terms of number of respondents returning yes response; Source: Research data, 2007

Figure II: Competitive Advantage of Primary Activities in Hotels for the Nairobi, Coast and Nature Reserves clusters in response to the Application of Information and Communication Technology

AICAP: Competitive advantage (efficiency and performance) of Catering Information Systems in hotel in response to the application of ICT. Source: Maringa, 2007

A more detailed examination of the competitive advantage of the Catering Information Systems in hotels as it responds to, and in effect relates with the application of ICT using means of the scored interview schedule ratings, displayed trends that resemble those so far noted. The appraisal

confirmed these trends as having a clear foundation on the internal nature of the Catering Information Systems that includes acquisition, storage, and distribution of conferencing and banqueting, recipe costing systems, stock control systems, electronic points of sale, and rooming display a

Maringa/Maringa/Africa Habitat Review x (200y)

common pattern. For all of them, efficiency and performance and therefore competitive advantage declined from the two-star rated hotels to the three and four star-rated hotels. However, all Catering Information Systems activity elements eventually rose

drastically in the five-star rated hotels to exceed the levels achieved in the two-star rated hotels (Table IV, and Figure III). This profile obtained for all three clusters (Nairobi, Coast, and the Nature Reserves) when combined.

Table IV: Relative Response of the Elements of the Catering Information Systems in Hotels for the Nairobi, Coast and Nature Reserves Clusters combined to the Application of Information and Communication Technology
AICAPC means AICAPR means THREE CIRCUITS COMBINED AICAPS means AICAPE means AICAPA means AICAPO means AICAP means 2* hotels 3.57 4.43 4.43 3.14 3.14 4.43 3.86 3* hotels 3.33 3.75 3.75 3.33 3.33 3.33 3.47 4* hotels 3 3 3 3 2 3 2.84 5*hotels 6 6 6 6 6 6 6

AICAPC: Competitive advantage of conferencing and banqueting; AICAPR: Competitive advantage of the recipe costing system; AICAPS: Competitive advantage of the stock control system; AICAPE: Competitive advantage of the electronic points of sale; AICAPA: Competitive advantage of the automated mini-bars; AICAPO: Competitive advantage of rooming all represented in terms of improved efficiency and performance in response to the application of IT in hotels; Absolute values represent means of scores in terms of number of respondents returning yes response; Source: Research data, 2007

Figure III: Relative response of the Elements of the Catering Information Systems in Hotels for the Nairobi, Coast and Nature Reserves Clusters combined to the Application of Information and Communication Technology

8 6
SCORES

4 2 0 2* hotels 3* hotels 4* hotels HOTEL STRATUM 2-5 BY STAR RATING 5*hotels

AICAPC means AICAPR means AICAPS means AICAPE means AICAPA means AICAPO means AICAP means

AICAPC: Competitive advantage of conferencing and banqueting; AICAPR: Competitive advantage of the recipe costing system; AICAPS: Competitive advantage of the stock control system; AICAPE: Competitive advantage of the electronic points of sale; AICAPA: Competitive advantage of the automated mini-bars; AICAPO: Competitive advantage of rooming all represented in terms of improved efficiency and performance in response to the application of ICT in hotels. Source: Maringa, 2007

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It is noteworthy that the aggregate competitive advantage for all three clusters has already been identified to assume this same profile (Table IV, and Figure III). It would hold here too then that, the trend is a compulsive reaction to the pull towards the generally poor performance or responsiveness to the application of ICT that is demonstrated by the Nature Reserves cluster (Tables III and IV, and Figures II and III). This high degree of conformity of patterns supports the supposition that, should all six products and services be examined within each individual cluster, they would display patterns similar to, or ones that collectively build up to those already noted to apply for their combined expression as a primary activity level or the catering information system. In this case then the patterns observed for the Nairobi cluster would hold, and so would those already noted for the Coastal and the Nature Reserves clusters also prevail. There was an internal hierarchy of the levels of response within the elements or functions of the Catering Information Systems. These elements then were ranked in an

arrangement of reducing response and therefore strength of relationship with the application of ICT in hotels. In the two-star rated hotels, this ranking was of the form, rooming and recipe control systems together in the lead, then conferencing and banqueting, and finally the automated mini-bars. The relative position of electronic points of sale was not discernible (Table IV, and Figure III). For the three-star rated hotels, some revisions in ranking seemed to occur. The order that was in place here then was, rooming and recipe costing systems together in first place, and then stock control system, conferencing and banqueting, and automated mini-bars jointly in second place. Again, the relative position of the electronic points of sale remained elusive. In the fourstar rated hotels, rooming, recipe costing systems, stock control systems, and conferencing and banqueting all tied in the first position. The second slot was taken by the automated mini-bars.

Table V: Distribution of the response of Competitive Advantage of the Catering Information System for all three clusters combined

Conf and Banqueting Recipe costing systems Stock control systems Elect Points of sale Automated mini bars Rooming

2 STAR (5) 38.47% (7) 53.85% (7) 53.85% (3) 23.08% (3) 23.08% (7) 53.85%

3 STAR (2) 20.00% (3) 30% (3) 30% (2) 20% (2) 20% (2) 20%

4 STAR (1) 33.33% (1) 33.33% (1) 33.33% (1) 33.33% (0) 0% (1) 33.33%

5 STAR (4) 100% (4) 100% (4) 100% (4) 100% (4) 100% (4) 100%

2-5 STAR (12) 40% (15) 50% (15) 50% (10) 33.33% (9) 30% (14) 46.66%

Absolute values represent number of respondents giving yes response then translated into % of total respondents; Source: Research data, 2007

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Here too, the relative position of electronic points of sale was unclear (Table IV, and Figure III). Finally, there was no hierarchy of ranking in the five-star rated hotels as all six products and services elements within catering information systems of primary activities achieved the highest possible response level (Table IV, and Figure III). The patterns that are portrayed in the ensuing graph emerged from cost in acquisition for the six products and services elements of the catering information systems. Examined here then was

perceived ICT driven efficiency and productivity and therefore competitive advantage. In the Coast and Nature Reserves clusters, recipe costing systems, and stock control systems showed the most positive response to ICT interventions, followed by the room resource. Next came conferencing and banqueting, and then Electric point of sales, with automated mini-bars coming in last. The Nairobi cluster reflected no hierarchy (Table V).

IV: Distribution of the response of Competitive Advantage to the Application of ICT in Conferencing and Banqueting

450% 400% 350% 300% 250% 200% 150% 100% 50% 0% Yes 2 STAR Yes 3 STAR Yes 4 STAR Yes 5 STAR Yes 2-5 STAR

ALL THREE

NRESERVES
COAST

NAIROBI

Source: Maringa, 2007 Analysis of trends for different star ratings of hotels, within the three clusters reviewed further insights. For purposes of brevity, only the responses for the Conference and Banqueting element of the Catering Information Systems are featured here. ICT fostered performance in the Nairobi cluster reduced from the 100% yes response of positive effect in the two-star rated hotels to 50% yes response in the three-star rated hotels. It thereafter rose through the four-star rated hotels to the five-star rated ones to reclaim the maximum 100% yes response level of positive effect. The Coastal cluster generally conformed to this pattern. Here the response level first dropped from 25% yes response in favour of a positive effect of ICT on performance in the two-star rated hotels to 0% yes response in the three star-rated hotels. A 100% yes positive response rating of hotel

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improved performance to ICT intervention in the four-star rated hotels then ensued, which level was sustained in the five-star rated hotels (Figure IV). The Nature Reserves cluster though exhibited some divergence of trends in its ICT driven performance response profile. Responsive performance to ICT interventions here waned from a 50% yes response level in two-star rated hotels to a 20% yes response level in the three-star rated hotels. The four-star rated hotels recorded a 0% yes response level rating. The five-star rated hotels however dramatically reversed this trend to attain a yes response rating of 100% (Figure IV). The profiles bring out starkly the varying sensitivity of competitive advantage to ICT interventions in the catering information systems of hotels in all three clusters. Analysis shows that these profiles for positive response of hotel performance to ICT interventions measured in terms of cost of acquisition, though only illustrated for the one element of conferencing and banqueting, replicate themselves in the rest of the functions, aspects, and measures of the catering information systems in hotels. The convergence of trends that prevailed for all six basic functions emphasised the internal consistency of the Central Information Systems in e-hotels. The level of positive response in performance to the application of ICT in the six functions of the Catering Information Systems of hotels revealed clear internal hierarchy. For Instance, for the two star rated hotels, when all three clusters were considered together, recipe costing systems (AICAPR), stock control systems (AICAPS), and rooming (AICAPO) together were most responsive. Conferencing and banqueting (AICAPC) came in second, with electronic points of sale (AICAPE), and automated mini-bars (AICAPA) tagging in last (Table IV).

In the three-star rated hotels, recipe costing systems, and stock control systems both took first place in recording the most favourable response of performance to ICT interventions. They were followed by conferencing and banqueting, electronic points of sale, automated mini-bars, and rooming coming in second place. In the four-star rated hotels, all of conferencing and banqueting, recipe costing systems, the stock control systems, electronic points of sale, and rooming came first, with only the automated mini-bars taking second position (Table IV). All six functions or elements of the Catering Information Systems in the five-star rated hotels tied at 100% yes response level of positive performance arising from ICT interventions (Table IV). ICT driven Competitive Advantage in the Catering Information Systems when measured portrayed a distinctive ordering or hierarchy of diminishing responsiveness, for the elements of Catering Information Systems in hotels, when all four hotel strata (2-5 star rating) were considered together, vis: Stock control systems, recipe costing systems, rooming, conferencing and banqueting, electric points of sale, and finally automated mini bars. Inferential Data Analysisi The preceding trends strongly suggested the existence of a relationship between performance and the application of ICT; between efficiency and productivity, and computerisation in hotels; between performance and e-hotels. In their inclination, they compulsively advocated for the rejection of the null hypothesis: H0: There is no relationship between the use of Information and Communication Technology and performance in the Catering Information Systems of e-hotels.

And acceptance of the alternate hypothesis:

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H1:

There is a relationship between the use of Information and Communication Technology and performance in the Catering Information Systems of e-hotels.

The nature of these suggested relationships were however only firmly provable, through statistical tests of association. The Spearmans Rank Correlation test is sensitive to the ranked data on hand in this inquiry, which data had been collected on the ordinal scale of measurement. For these reasons then, this was the test that was put to use to determine associations in this study. The tests produced coefficient values (r) that were significant in certain instances, and not significant in others. The association between performance at the CIS of e-hotels and the application of ICT was not comprehensive, but rather

partial to certain specific functions of both variables. The tests authenticated differing associations between particular functions of Catering Information Systems and the aspects of the application of ICT in the ehotels. As these associations also varied along the three clusters of hotels, it was reasonable to expect distinctiveness in their arrangements along the hierarchy of star rating of the hotels too. The functions of Catering Information Systems in the Nairobi cluster all associate positively and perfectly with the network infrastructure element of Background Information on Information and Communication Technology and Markets (BIM). They all returned correlation - r values of 1.000** that were significant at an alpha () error value 0.01 level (2-tailed) (Table VI).

Table VI: Spearmans Rank Correlation Coefficient Values for the Association of Catering Information Systems and ICT in the Nairobi cluster
CIS ACTIVITY LEVEL Number of compute rs in finance -.250 .685 5 -.250 .685 5 -.250 .685 5 -.250 .685 5 -.250 .685 5 -.250 .685 5 Computer literacy levels of management 5 5 5 5 5 5 Frequency of usage of computers 5 5 5 5 5 5 Network infrastructure in place Principal mode of enquiry for room 5 5 5 5 5 5 Presence of virtual tours Presence of Affiliate marketing

Conferencing & banqueting Recipe costing systems Stock control systems Electric points of sale Automated mini bars

r PC N r PC N r PC N r PC N r PC N r PC N

1.000** 5 1.000** 5 1.000** 5 1.000** 5 1.000** 5 1.000** 5

.408 .495 5 .408 .495 5 .408 .495 5 .408 .495 5 .408 .495 5 .408 .495 5

.250 .685 5 .250 .685 5 .250 .685 5 .250 .685 5 .250 .685 5 .250 .685 5

Rooming

*Correlation is significant at the 0.05 level (2-tailed); **Correlation is significant at the 0.01 level (2-tailed); Source: Research Data, 2007

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Association with the number of Computers found in the finance department appeared to be of an inverse form, though not significant. Correlation with both of virtual tours and affiliate marketing seemed positive but also not significant. Association with computer literacy level of management and above, frequency of computer usage, principal mode of inquiry for the room, virtual tours, and affiliate marketing all failed to attain any level of significance. Network Infrastructure then emerged here as the only element of ICT that could be

used to influence performance in the work process of e-hotels in the Nairobi cluster (Table VI). The Coast cluster showed an even weaker level of association between the functions of the Catering Information Systems and ICT. Association here was also isolated to network infrastructure and it only affected three (50%) of six functions of this Catering Information Systems, these being recipe costing systems, Stock control systems, and rooming (Table VII).

Table VII: Spearmans Rank Correlation Coefficient Values for the Association of Catering Information Systems and ICT in the Coastal cluster
CIS LEVEL ACTIVITY Number of computers in finance .100 .748 13 .418 .155 13 .418 .155 13 .427 .146 13 .293 .331 13 .418 .155 13 Computer literacy levels of management -.085 .783 13 .058 .851 13 .058 .851 13 .491 .096 13 .463 .111 13 .058 .851 13 Frequency of usage of computers .199 .516 13 .337 .260 13 .337 .260 13 .140 .647 13 .077 .802 13 .337 .260 13 Network infrastructure in place .503 .080 13 .854* .000 13 .854* .000 13 .356 .233 13 .196 .522 13 .854* .000 13 Principal mode of enquiry for room .074 .811 13 .300 .319 13 .300 .319 13 -.052 .866 13 -.201 .511 13 .300 .319 13 Presence of virtual tours -.226 .458 13 .000 1.000 13 .000 1.000 13 .385 .220 13 .276 .361 13 .000 1.000 13 Presence of Affiliate marketing .074 .811 13 .300 .319 13 .300 .319 13 -.052 .866 13 -.201 .511 13 .300 .319 13

Conferencing & banqueting Recipe costing systems Stock control systems Electric points of sale Automated mini bars Rooming

r PC N r PC N r PC N r PC N r PC N r PC N

*Correlation is significant at the 0.05 level (2-tailed); **Correlation is significant at the 0.01 level (2-tailed); Source: Research Data, 2007

With all three (recipe costing systems, stock control systems and rooming) network infrastructure associated positively and significantly with a correlation coefficient rvalue of 0.854**, and a p-value of 0.000, at an alpha () error level of 0.01 level (2tailed) (Table VII). No association came through for three (50%) of six functions at

this activity level in e-hotels, those of conferencing and banqueting, electric points of sale, and automated mini-bars (Table VII). All other associations were generally positive, with a few incidences of possible inverse association. These relationships

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though were all not significant and therefore ones that lacked statistical consequence (Table VII). The scenario changed drastically in the Nature Reserves cluster. Here, network infrastructure achieved significant positive association with recipe costing systems, stock control systems, and rooming only, failing for conferencing and banqueting, electric points of sale, and automated minibars (Table VIII). With the first two (recipe costing systems, and stock control systems) it recorded correlation coefficient r-values of 1.000**, in a perfect correlation setting, at an alpha ()

error level of 0.01 (two tailed). With rooming, network infrastructure attained a positive correlation with a coefficient r-value of 0.907**, and a p-value of 0.000, at an alpha () error level of 0.01 (two tailed) (Table VIII). In this cluster three other elements or functions of ICT clinched significant association with the functions of the catering information systems. The Number of computers in the finance department associated positively with rooming scoring a correlation coefficient r-value of 0.767**, and a p-value of 0.004, at an alpha () error level of 0.01 (two tailed).

Figure VIII: Spearmans Rank Correlation Coefficient Values for the Association of Catering Information Systems and ICT in the Nature Reserves cluster
CIS LEVEL ACTIVITY Number of computers in finance .548 .065 12 .588* .044 12 .588* .044 12 .478 .116 12 .478 .116 12 .767** .004 12 Computer literacy levels of management .760** .004 12 .625* .030 12 .625* .030 12 .671* .017 12 .671* .017 12 .701* .011 12 Frequency of usage of computers .484 .111 12 .792* .002 12 .792* .002 12 .410 .186 12 .410 .186 12 .701* .011 12 Network infrastructure in place .667* .018 12 1.000** . 12 1.000** . 12 .596* .041 12 .596* .041 12 .907** .000 12 Principal mode of enquiry for room .525 .080 12 .552 .063 12 .552 .063 12 .494 .103 12 .494 .103 12 .668* .018 12 Presence of virtual tours .441 .151 12 .889* .013 12 .889* .013 12 .385 .217 12 .385 .217 12 .618* .032 12 Presence of Affiliate marketing .647* .023 12 .583* .048 12 .583* .048 12 .598* .041 12 .598* .041 12 .495 .102 12

Conferencing & banqueting Recipe costing systems Stock control systems Electric points of sale Automated mini bars Rooming

r PC N r PC N r PC N r PC N r PC N r PC N

*Correlation is significant at the 0.05 level (2-tailed); **Correlation is significant at the 0.01 level (2-tailed); Source: Research Data, 2007

Computer literacy levels of management and above achieved positive association with conferencing and banqueting, with a correlation coefficient r-value of 0.760**,

and a p-value of 0.004, at an alpha () error level of 0.01 (two tailed). Frequency of computer usage associated positively with recipe costing systems and also stock

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control systems in both cases attaining a correlation coefficient r-value of 0.792**, and a p-value of 0.002, at an alpha () error level of 0.01 (two tailed) (Table VIII). Interpretations and Implications of Research Results The attainments of this inquiry are outlined here in as much as they successfully shed beneficial light on the identified problem. The implications arising from the rigour of interactions of the various concepts and variables that were scrutinized in the inquiry are also made explicit here. The study set forth to determine whether the Catering Information Systems (CIS) in ehotels did respond to Information and Communication Technology (ICT) stimuli. The avowed underlying motivation of this interest was to use ICT as a means by which to enhance performance in e-hotels. The analysis so far carried out confirmed that CIS and ICT had a distinctive relationship. It emerged clearly that CIS gained efficiency in performance when ICT interventions were brought to bear. It was therefore possible to promote performance in e-hotels using ICT. The overall hypothesis that was set forth to guide inquiry (H1: There is a relationship between the use of Information and Communication Technology and performance at the Primary Activity level in e-hotels.) was therefore rejected; and in its place the alternate one (H1:) accepted to the extent that there is a relationship between the use of Information and Communication Technology and performance at the Primary Activity level in e-hotels. The relationship of ICT to CIS was however not comprehensive as it varies from one or another of their respective functions. Different spatial locales of hotels also tended to elicit differing relationships. It also was established that the scale of a hotel influenced this relationship. In these regards the study found out that CIS in hotels responded better to ICT stimulus

when the hotels were located proximally to higher rankings of urban centers. Hotels that were within the Nairobi cluster exceeded the ones in Coast - Mombasa in their positive response to an ICT intervention. These latter ones in turn stood above those in the Nature Reserves. Nairobi is the largest city in Kenya, followed by Mombasa; while the Nature Reserves really are non urbanised areas. This trend would normally be assumed to relate well to the inherent advantages of urbanisation of a more literate labour force, and better infrastructural support, common in larger urban centers. In which case the more experienced and literate staff would be taken to gravitate to those hotels that are located in larger urban centers. It is these same premises where one would expect to see better computer facilitation. This study curiously discounted any association between the condition or status of the hotel premise, the human infrastructure, and computer facilitation. Superior performance in the urban hierarchy in response to ICT intervention in the CIS of e-hotels could therefore not simplistically be explained in terms of labour, infrastructure, and computerisaton levels. Hotels that were higher up on the hotel classifications, did not therefore necessarily qualify into the higher classifications because of their superior human and physical infrastructure. It is not true that they tended to have within themselves better, more comprehensive and updated ICT systems, and with more ICT literate and generally educated staff. Their response to ICT interventions though was better and this again could be simply explained. What could plausibly explain these trends was an internal recognition within the hotel organisation of the need for communication in the CIS of higher ranked hotels, which nested in more urbanised environs. This could very well result from client or

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customer demands for information. The target markets up this hierarchy of starrating, and urbanisation of hinterland could be more computer literate, and therefore be making demands accordingly for improved information flow to anchor the service they receive. It is clear from this study that for an immediate response of improved performance and therefore competitiveness in e-hotels, attention should be prioritised up the hierarchy of star rating, and level of urbanisation of an e-hotels hinterland. It is these hotels that adapt most positively their efficiency in performance of the primary work process in response to stimulus coming from ICT interventions. The Nairobi cluster and generally 5-star rated hotels, when suitably facilitated with ICT can most immediately and drastically promote local competitiveness of the hotel industry. Intervention down the ranking of star rating and hierarchy urbanisation of hotel hinterlands is most seriously needed. It is here that hotels must be re-organised to recognise the need for information acquisition and its transmission, as a way of operating more efficiently. In this way they would then be oriented better to benefit from ICT interventions. Hotels in the Nature Reserves and those of a 3 and 4 star rating are most conspicuously needy of this adaptation. The Coast cluster hangs in the middle of this need hierarchy. At a closer level, the study has unraveled similar hierarchies of priority, when directing external ICT interventions into the CIS of ehotels. Most effective of the ICT interventions is the network infrastructure. It most ably improves performance in the recipe costing and stock control systems. Secondarily it has positive influences in improving efficiency in the rooming function of the primary activity level. Generally though conferencing and banqueting respond only moderately while electric points of sale and automated mini-bars are most lethargic, it is these latter two that

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