Accounting Information Systems in the Hotel Industry:

Analysis of Usefulness and Ease of Use

Accounting Information Systems in the Hotel Industry: Analysis of Usefulness

and Ease of Use

Catapang, Christian Alex C.

Pagran, Shaira Mae C.

Penalosa, Peter Miguel C

Pinalas, Michelle Jean C.

Ramos, Raymond Paulo G.

Polytechnic University of the Philippines

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

Chapter 1

THE PROBLEM AND ITS SETTING

Introduction

An Accounting Information system helps to guide an organization’s operation, it

can be used to evaluate an organization’s performance, and help forecast future

operations. As technological developments helped in the rapid growth of progress in

businesses, information has also become an important capital in businesses. The

integration of Information Technology (IT) into accounting, greatly improves the

process of recording, classifying, and summarizing financial accounting information.

(Salehi 2011)

Accounting Information Systems (AIS) are a tool which, when incorporated into

the field of Information and Technology systems, are designed to help in the

management and control of topics related to organization’ economic-financial area. But

the stunning advance in technology has opened up the possibility of generating and

using accounting information from a strategic viewpoint. Accounting Information

System (AIS) is vital to all organizations and perhaps, each organization either profit or

non-profit-oriented need to maintain the AISs. On the other hand, an AIS is the whole

of the related components that are put together to collect information, raw data or

ordinary data and transform them into financial data for the purpose of reporting them

to decision makers. To better understand the term ‘Accounting Information System’,

the three words constitute AIS would be elaborated separately. Firstly, literature

documented that accounting could be identified into three components, namely

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

information system, “language of business” and source of financial information.

Secondly, information is a valuable data processing that provides a basis for making

decisions, taking action and fulfilling legal obligation. Finally, system is an integrated

entity, where the framework is focused on a set of objectives.

Accounting literature argues that strategic success is considered an outcome of

Accounting Information Systems (AIS) design. Several, studies have analyzed the

impact of AIS in strategic management, examining the attributes of AIS under different

strategic priorities. It has also been analyzing the effect on performance of the

interaction between certain types of strategies and different design of AIS (e.g.

different techniques and information). The appropriate design of AIS supports business

strategies in ways that increasing the organizational performance. Increasing AIS

investment will be the leverage for achieving a stronger, more flexible corporate culture

to face persistent changes in the environment. Innovation is the incentive with which a

virtuous circle will be put in place, leading to better firm performance and a reduction in

the financial and organizational obstacles, while making it possible to access capital

markets. AIS are systems used to record the financial transactions of a business or

organization. AIS combines the methodologies, controls and accounting techniques

with the technology of the IT industry to track transactions, provide internal reporting

data, external reporting data, financial statements, and trend analysis capabilities to

effect on organizational performance.

In managing an organization and implementing an internal control system the

impact of accounting information system (AIS) is crucial. An important question in the

field of accounting and management decision-making concerns the fit of AIS with

organizational requirements for information communication and control. Benefits of

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

accounting information system can be evaluated by its impacts on improvement of

decision-making process, quality of accounting information, performance evaluation,

internal controls and facilitating company’s transactions. (Samuel 2011)

Theoretical Framework

Technology Acceptance Model

This was developed by Fred Davis and Richard Bagozzi. This theory models

how users come to accept and use a technology. The model suggests that when users

are presented with a new technology, a number of factors influence their decision

about how and when they will use it which include Perceived Usefulness, which

according to Davis "the degree to which a person believes that using a particular

system would enhance his or her job performance", and Perceived Ease of Use, which

according to Davis is "the degree to which a person believes that using a particular

system would be free from effort"

Relationship between Perceived Ease of Use, Perceived Usefulness and Acceptance

As learning AIS is important in nowadays’ study, it is essential to understand

whether there is a relationship among perceived ease of use, perceived usefulness

and students’ acceptance of AIS course. In a study of Davis (1989), six items are used

to measure perceived ease of use of an information system 1. learning to operate the

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

system is easy for the user, 2. easy to get the system to do what user wants, 3.

Interaction with the system is clear and understandable, 4. The system is flexible to

interact with, 5. it is easy to become skillful at using the system, and 6. The user finds

the system easy to use. To measure the usefulness of a computer system, six areas

are used: work more quickly, improve job performance, increase productivity, enhance

effectiveness, make job easier, and useful in job (Davis, 1989). Van der Heijden (2004)

suggested that perceived ease of use has significant impact on perceived usefulness

and perceived enjoyment of the website. In the study of Igbaria et al. (1996) on

managers and professionals about the use of microcomputer, the result suggested that

perceived ease of use has significant direct and indirect impact over perceived

usefulness and perceived enjoyment on system usage.

Ease of Use Theory

This theory suggests that perceived ease of use of AIS functions has a strong

positive effect on perceived usefulness of AIS functions and the perceived usefulness

of AIS functions has a moderate positive effect on AIS course acceptance, and the

perceived usefulness of AIS functions mediates the link between perceived ease of

use of AIS functions and AIS course acceptance. Educators can consider choosing a

user friendly AIS in teaching which can enhance the learning process of students and

raise their interests and acceptance to AIS course eventually. AIS developers can also

develop AIS with effective and efficient functions which help both teachers and

students in their teaching and learning. This research provides useful insights to both

AIS educators and manufacturers, however, this study is an investigation on

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

perceptions generally at one point of time and does not make reference to a specific

accounting system or software and does not measure the change in perceptions

before and after using a system or software. Besides, perceived ease of use of AIS

functions explains 35.4% of perceived usefulness of AIS functions and perceived

usefulness of AIS functions explains 21% of AIS course acceptance, it indicates that

there should be other variables relate to perceived usefulness of AIS functions and AIS

course acceptance which have not been investigated in this study.

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

Conceptual Framework

The researchers used the Input-Process-Output General Systems

INPUT OUTPUT
PROCESS
Profile of the
Respondents Assessment of
Analysis and
 Age the most used
 Sex
interpretation of
data gathered AIS and its
 Employment effectiveness of
Status through the survey
questionnaire to the selected
 Years in the hotels in Cubao,
Company accounting staffs of
Quezon City.
 Position in the selected hotels
Accounting in Cubao, Quezon
Department City.
Effectiveness of
the AIS of hotels.

Feedback

The input of the study includes the profile of the respondents in Cubao, Quezon City in

terms of the form of name, age, sex, and employment status. The process includes the

analysis and interpretation of data gathered through the survey questionnaire of the

selected accounting staffs of hotels in Cubao, Quezon City.

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

The output of the study is the most used AIS and its effectiveness of selected

hotels in Cubao, Quezon City.

Statement of the Problem

The study aims to determine how the AIS of the different hotels can help the

management to operate smoothly and help the management in decision-making.

Specifically, it seeks to answer the following questions:

1. What is the profile of the respondents in terms of the following:

1. Age;

2. Sex;

3. Employment Status;

4. Years in the Company; and

5. Position in Accounting Department

2. What is the level of effectiveness of the AIS of hotels in Cubao, Quzeon City

1. Ease of use; and

2. Usefulness?
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

3. Is there a significant difference on the level of effectiveness of the AIS of the

hotels considering its ease of use and usefulness, when grouped according to

profile?

Hypothesis

There is no significant difference in factors affecting the effectiveness of their

Accounting Information System considering its ease of use and usefulness when

grouped according to profile?

Scope and Limitation

This study focuses on the mostly used Accounting Information system that limits

only in two to four star hotels in Cubao, Quezon City.

The study is analytical in nature. Primary data will be collected using a

questionnaire. The questionnaire was prepared after analyzing the various aspects

of the topic and utmost care was given to ensure that the questions included suit to

the purpose of the study and can easily be understood by the respondents.

This study shall separate the entire hotel management from its accounting

information system management and the related departments since we will only
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

tackle the most preferred AIS that delivers a big impact on efficiency and

effectiveness of management. We will study further within Metro Manila to gather

more intact information that would add helpful data in conducting the study.

Significance of the Study

In recent years, accounting software has become very popular. The growth

of technology has made this part and parcel of everyday lifestyle. The advent of

accounting information system and the smooth access to the World Wide Web has

brought the accounting software from around the world to the desktop. We

personally have studied about AIS to know how the data of financial organizations

are collected, processed and stored. Accounting student community has become

too strong that even the other business like marketing, seek the help and advice of

accounting students before conducting accounting activities. Moreover, while it

comes in choosing AIS, professionals are very particular that they get the best

accounting information system product available in the market and seek all the

possible ways to secure the best AIS product.

This study will be an expressive endeavor in identifying factors of choosing

the AIS of the hotels. This will be beneficial to the students and professors with the

fact that we will study the behavior of employees in financial institution. This will

reflect how the students can be like when they step in the real world. This can serve

as a lecture and reference for them to decide what will be their actions once they are
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

in the same position. And one of the pertinent things is that we will discover how

professional people use their academic knowledge in the field.

Moreover, this study will be a contributor to AIS professors, serving as a

reference on how they will strategize in teaching and in managing or expanding their

knowledge about AIS. This will also be helpful to future researchers taking any

related business and finance courses. Lastly, this will help employees of financial

institutions to have a second thought whether they were able to apply their

learnings as an individual in collecting,, processing, and storing data.

Definition of Terms

AIS – Accounting Information System

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

Chapter 2

Review of Related Literature

In this Chapter, the Researchers attempts to review the various literatures

regarding concept Accounting Information Systems, Innovation, Technological

Acceptance and Hospitality.

Accounting Information Systems

According to Salehi (2011p. 891), an AIS assists a company conducts its

operations and activities and provides necessary information to variety of intended

users. A combination of technology and human interaction that may help achieve

efficient and excellent operations. The implementation of AIS for public organizations

enables the management to improve decision- making (2011Shuhidan, Mastuki, Noric

,2015).

Better adaptation to a changing environment, high degree of competitiveness

and better management of transactions are just some of the advantages of an

Accounting Information System. It also boosts to the flow of information between staff

of different levels. (Grande, Estebanez, Colomina 2010). Soudani’s (2012) hypothesis

based on positive relations to performance, also stated that Accounting Information

Systems are significantly related to financial performance, meaning AIS cause to have

better financial performance, and there is also a positive relationship between AIS and

organizational performance, however there is no positive relation to performance

management. AIS was found to be the variable that most impacts financial

performance. Cabral, Carlos, Ferreras, Gorospe, & Usison (2015) an efficient AIS

ensures that all levels of get relevant information because an AIS stores and provides
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

valuable information. Similarly for hotels and restaurants, in order to survive and even

excel in competition, management of hotels and restaurants should be able to make

the appropriate decisions (Ismail, 2009) Qualified information can be obtained through

Accounting Information System (AIS). One of the fundamental objectives of AIS is to

support management decision making. AIS supplies managers with the information

they need to carry out their decision making responsibilities (Hall, 2008).

In a study conducted by Majed (2011), their data analysis found out that hotels

in Jordan have positive attitudes towards information technology and us the internet

and AIS in accounting works. They agree that the hotels depend on E- Commerce and

the customers get their orders by using the website. AIS applications also bring

innovation that have positive effects on administrative decision (Akgun & Kilic, 2012).

Managers need relevant information on the profitability, efficiency and competitiveness

of health-tourism services, which is connected to the use of segment-reporting

standards and segment information. Establishing segment-reporting system according

to the specific needs of special hospitals, hotels and health/spa resorts, will allow

external comparison of internally achieved results. The possibility to connect different

standards to meet specific management information needs in the special hospitals,

hotels and health/spa resorts, as well as external users, based on the of the specific

software should be achieved. (Persic, Vlasic, Jankovic n.d.)

Tarigan, Devie and Putri (2015) proved that there is positive and significant

correlation between firm size and intensity of use of AIS in hotels and restaurants in

Surabaya. There is also a positive and significant correlation between firm size and the

usage of AIS in hotels and restaurants in Surabaya. Another fact proved by this
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

research is that there is a positive and significant correlation between learning

organization and the usage of AIS in hotels and restaurants in Surabaya.

Their data concluded that the biggest correlation coefficient value comes from

firm size, which shows that AIS usage in hotels and restaurants is primarily related to

the size of the company. When hotels and restaurants realize that their firm sizes

enlarge and their business scales expand, the complexity of the hotels’ and

restaurants’ activities will also increase. Hotels and restaurants will be aware of the

importance of AIS usage which can help to coordinate their activities that have

become more complex, so that the activities can be performed more effectively and

efficiently.

Since the competition rate in the accommodation sector is high, every hotel in

the sector is directly or indirectly affected from other hotels. In this competitive

business environment, hotel managers meet customer expectations and ensure that

the business is successful. In this way, the accounting information system in the

business also meets customer expectations and helps reach organizational goals

(Song, Wong 2009). In their study, Akmese, Eren, Aras & Kaya (2017) concluded that

there are no differences on the importance hotels give to accounting information

systems based on their status, categories and number of rooms. In addition, a

meaningful difference was not achieved between the managers of the hotel that gave

their responses and the accounting information systems. Therefore, it can be

concluded that there is no difference between hotel businesses since they give

importance to the accounting information system regardless of their status, categories

and number of rooms.

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

Jawabreh & Alrabei (2012) proposed that accounting information is particularly

useful in operations management when uncertainty over the consequences of action is

caused by uncertainty about the weights of the diverse effects of an action, however

they concluded that here is no relationship between accounting information system

and planning, controlling, and decision-making in four and five star Jodhpur Hotels and

they are facing difficulties in implementing this system because the methods of

accounting information system are not qualified, costs of the application of accounting

information system are relatively high, senior management is not convinced by the

methods of accounting information system, software required by the application of

accounting information system is not available, there is no competition that urges the

application of accounting information system, and the information system is not

developed enough to the optimal application of accounting information system.

Today, computer systems bring us a new meaning to “real-time”. With

computerized systems, real-time happens when input data is processed within

milliseconds so that it is available virtually immediately as feedback to the process

from which it is coming. A good example is a missile guidance system where the

system directs and controls the missile along its entire course from its launch until it

reaches its final objective. Within an organization, the real-time reporting can be seen

as something with a similar purpose. Along the organization life, the real-time reporting

in accounting gives complete and instantaneous information about key dimensions of

the organization allowing the management to decide the better direction and actions to

take in each moment.

Accounting information plays an important role in the business. The basic

objectives of accounting are to provide financial information to the managers, owners

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

and the stakeholders who are interested in an organization and to help them reduce

uncertainty in decision-making (Romney, 2009).

Heidhues & Patel (2008) research has significant implications on the

international application of management accounting procedures and practices in the

decision-making processes. Multinational enterprises, governments and researchers

would benefit from such insights into the utilization of accounting information in various

national contexts.

Sajady, H., Dastgir, M., & H. Hashem N. M. S. (2008) study the effectiveness of

accounting information systems of finance managers of listed companies at Tehran

stock exchange. The results indicated that the implementation of AIS in these

companies has improved managers’ decision-making process, internal controls, and

the quality of the financial reports and facilitate the process of the company’s

transactions.

In Taposh Kushmar Neogy's study (2014), it is stated that the efficient

accounting information system is essential because it ensures that all levels of

management get sufficient, adequate, relevant and true information for planning and

controlling activities of business organization because an accounting information

system stores and provide such valuable information that is vitally important.

On the other side, it has become an ordinary thought that most accounting information

systems problems were the result of the lack of constructive planning to refresh their

information systems in light of: the vast progress that has been achieved in information

technologies field; software quality; sophisticated system design and development;

employment of quantitative models; identification of information needs; and proper

systems auditing. Muhannad Akram Ahmad (2012)

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

Globalization and developments in information technology have led to dramatic

changes within the travel industry because the hotel industry has a very specific set of

needs, it is imperative for hoteliers have the right tools to navigate today’s challenges.

The global travel industry shows no signs of slowing down any time soon, so hotels

must incorporate cutting-edge technology to streamline operations, optimize labor

management, and access critical data while preparing for the next unexpected event.

Scott Watson (2008)

Accounting Information System Innovation

The complexity of accounting information systems continues to increase with

the introduction of advanced technologies and new ways of doing business.

Understanding how innovation is driving the industry is essential to forward progress.

The old image of what an accountant does is gone. The new conversation is about and

how the role fits into the larger “fintech” (financial technology) ecosystem. Being

educated in ongoing and emerging trends is extremely helpful in the field, as

employers look for those professionals with the latest knowledge and expertise. As

such, the trends and predictions that are taking shape now will continue to accelerate

the rate of change in accounting and accounting information systems.

Cloud Computing

According to research conducted by Capterra, an independent software

analysis firm, approximately 40 percent of businesses now use a cloud-based

accounting package. These are the reasons for the change of accounting system to

cloud computing that include benefits applicable to both clients and employees.

Increased efficiency and productivity, accessibility via mobile devices for remote users,
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

integration across different platforms and applications, ease of collaboration across

multiple locations and departments, availability of modular add-ons for specific

accounting challenges, and improved data protection offered by off-premises storage

and security.

This new technology can also offer better user access and control

mechanisms, helping to mitigate risk by putting a digital fingerprint and timestamp on

every entry. Using this type of accounting information technology can achieve a more

detailed audit of activities in a given system, at a particular point in time.

Big Data Online Services

In a world of Big Data, the entire accounting and fintech sector is in a

maturation phase. The industry is still working to adopt new and innovative ways of

thinking about data, as customers demand more and easier ways to get to their

financial information online and on the go. According to PWC, financial services firms

like banks, investment firms, and insurers are increasing their investments in Big Data

and data management on a global scale. This industry is recognizing the power of

collecting and utilizing data to improve services. As a result, there is a need to

continue advancing beyond legacy systems to an agile environment where accounting

data is leveraged to create personalized user experiences for conducting transactions,

tracking cash flow, making capital investments, and more.

Cyber Security

A discussion of issues regarding financial cyber security is not new territory.

Each year, companies of all types and sizes experience increasingly large data

breaches that compromise the security of private information.

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

One of the mistakes that firms can make is relying solely on technology tools to stop

security risks. Artificial intelligence can’t do it all. In this case, a human understanding

of malicious tricks and threats is essential to success. Cyber security experts know

that hackers only come in through the “back door” a certain percentage of the time. In

other instances, fishing scams and infected e-mail attachments allow entry into the

system. There is also the off-chance threat of a culprit leaving a mysterious or

unlabeled CD or DVD on someone’s desk or sneaking into a restricted area to remove

physical records.

The target in all of these cases is the valuable cache of personal and financial

data being stored. Anyone who works with accounting information systems would be

well served to consider deploying a combination of cyber security technology

measures (virus detection, firewalls, etc.) and company-wide education on security

threats. (UAB Collat School of Business 2016)

Real time reporting offers many benefits than conventional periodic reporting.

The rapid change brings about these need for data and there is a significant demand

for it. Nowadays, some accounting activities face special concerns that represent

serious challenges. Of course, the implementation success of an accounting

information system depends on technological issues, but other dimensions should be

considered, like the people and the organizational dimensions. Yet, new technological

solutions deserve a closer attention and may provide answers to the accounting

challenge of real time reporting. Trigo, Belfo & Estebanez stated that the challenge of

implementing real-time reporting in accounting information systems may be partially

addressed by some technological answers like business process management and

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

business activity monitoring, mobile devices, cloud computing, business intelligence,

enterprise architecture and enterprise application integration. (2014)

Technological Acceptance

The origin and advancement of technology acceptance literature constitutes a

major issue of information system (IS) research. As the goal of this study is to gain a

recognizing on how and why organizations use, and accept technologies the focus is

on the stream of research that makes intention to use the system. Thus in order to

investigate the intention and technology acceptance as followed by Venkatesh and

other (2002) the author approaches to technology acceptance model and Self-

determination Theory (SDT) Deci and Ryan (1985) for Motivational model (MM)

together.

The acceptance of technology by the companies especially by SME’s in today’s

highly competitive and fast growing environment had made them to focus heavily on

the achievement of technological superiority that can enhance production and

operational performance with the usage of available resources. According to Pontiggia

and Virili (2010), the acceptance of technology has been considered as one of the

most important issue in the organization.

However, Chan and Ngai (2007) suggested how “AIS’s adaption and

application could be a highly complex task by which strong managerial and strategic

productivity need to perform the best fit involving the business peculiarities” and also

the system itself and to cope with the unavoidable organizational impact caused by an

AIS implementation. In ropes with this Ngai and others (2008) argued that “it is only
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

the technological factors that affect the adaption of the system, but there are many

other sub factors like appropriate business, and IT legacy system, Business planning,

Vision, Justification, Top management support, teamwork, monitoring and evaluation

of performance”. Abukhzam and Lee (2010) user’ attitude Thong and others (1996)

Lack of IT expertise, Taherdost and Masrom (2009) control, security, usefulness,

flexibility, and ease of use”. Kijsinayotin and others (2009), mentioned that “user’s

acceptance and usage of technology is one of the most important factor for the

success of the IT implementation.

Research attempt to take the concept of acceptance of technology one step

ahead of previous literature like Davis, Bagozzi, and Warshaw (1989), Who utilized

factor like (perceived usefulness and perceived ease of use) explaining beleifs of users

towards acceptance of technology. This study provides a comprehensive contribution

by including perception level (intrinsic motivation and extrinsic motivation) to fill the gap

identified by Davis and other (1989) towards having less influence of attitude on the

acceptance of system or technology.

Technology acceptance model was introduced by Davis (1985), this study

attempts to examine the relationship between user acceptance of accounting

information system and two antecedent factors: perceived usefulness, perceived ease

of use, to see if the earlier results are still valid after recent advances in system and

technology affecting system usage. Technology Acceptance Model provided a

theoretical base in this study for examining the factors contributing technology

acceptance in organizations. Information technology adoption has been a central

concern in information system research and practices. Brilliant progress has been

made over the past decades in disclosing and predicting acceptance of information
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

technology in organizations. Davis et.al (1989) developed technology acceptance

model and disclosed substantial proportion of variance in intention and behavior and

also compared with alternative models like Theory of Reasoned Action (TRA) and

Theory of Planned Behavior (TPB) (Venkatesh, 1999).

On the other hand, Ainon Ramli (2013) in the case about “Usage of and

Satisfaction with Accounting Information Systems in the Hotel Industry: The Case of

Malaysia“ the findings confirm the wide use of computerized accounting systems in

three, four and five star rated hotels, although, the extent of the AIS use is relatively

unsophisticated with the focus on basic accounting modules and fundamental

accounting-based applications. The main factors to influence perceived usefulness

(PU) are perceived ease of use (PEOU), involvement and training. The factors that

influence PEOU are experience, external expertise and PU. It is found that usage of

the AIS, PU and PEOU significantly influence satisfaction with the AIS. This study also

provides positive support for a relationship between satisfaction with the AIS and

organizational impact. Despite the widely held belief that IT is fundamental to a firm’s

survival.

Hospitality

According to instructor Beth Hendricks, hospitality is the friendly receiving or

treatment of guests, certainly an area where hotels, restaurants, and other places you

encounter on your travels aspire to excel. Hospitality industry on the other hand,

consists of businesses focused on customer service including overnight

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

accommodations, such as hotels and motels; travel and tourism, such as tours and

cruises; and food, drink, and entertainment provisions.

Based on the study of Alicia Hoisington (2017), many facets of the hotel

industry over the past years, have shifted to adapt to new technology and changing

consumer behavior, which have it turn changed how hoteliers conduct businesses.

However those changes have also had an impact on the bottom line which has

become more difficult to attain and has diminished over time.

The main goal of the hospitality industry is to provide customer satisfaction. But there

are many factors that change quickly and that impact hospitality industry. Some of the

challenges faced by the hospitality industry are changes in customer segments,

changes in technology, and rise in political tensions and terrorism (Instructor

Savannah Samoszuk).

The hospitality industry is booming, but research shows there are a lot of

factors limiting the success of hospitality businesses. There are top challenges faced

by the hospitality businesses for revenue loss in the past few years according to a

research. These factors are the following; growth in the sector that results to more

competition; finding and keeping valued customers; changing food attitudes; produce

going to waste; hiring the best staff; and the costs of operating penalty taxes, taxes

and fees (Laura Buyers, 2017).

Aside from the above mentioned factors affecting hospitality industry, Smit

Shah, CPA (2018) mentioned in a study that fraud has also a detrimental impact on

most businesses and the hospitality industry is not immune to it. According to the

Report to the Nations on Occupational Fraud and Abuse, a study by the Association of
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

Certified Fraud Examiners, the typical organization loses 5% of revenues in a given

year as a result of fraud.

Beyond the financial losses that result from fraud, hotels and restaurants can

also be subject to various forms of hacking and electronic theft. Most common

fraudulent activities are credit card fraud which includes false account credits, use of

skimming device, fraudulent credit cards and hacking. Other examples of fraudulent

activities are vendor fraud, inventory theft, coupon fraud and complimentary and void

fraud.

Hospitality industry today, according to Deloitte (2018), continues a run of

strong performance and is projected to sustain strong 5% to 6% growth throughout

2018. Throughout the year, hoteliers are likely to look for opportunities in strategic

areas, such as midscale hotels, traveler-facing technology, health and wellness, and

loyalty.
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

Chapter 3

Research Methodology

This chapter discusses the method of research used, population, sample

size, sampling techniques, and the description of the respondents. Also presented

are research instruments and data-gathering procedures used in the conduct of

the study as well as the statistical tools used in the analysis of the data.

Methods of Research

The researchers used the descriptive method and quantitative research

design in order to produce the desired result of the study. John Dudovskiy (2009)

explains that descriptive research may be characterized as simply the attempt to

determine, describe or identify what is, while analytical research attempts to

establish why it is that way. Also, based on bcps.org (2017), descriptive research

seeks to describe the current status of an identified variable. These research

projects are designed to provide systematic information about a phenomenon.

The researcher used quantitative research because based from Cengage

(2010), quantitative methods emphasize objective measurements and the statistical

mathematical, or numerical analysis of data collected through polls, questionnaires,

and surveys, or by manipulating pre-existing statistical data using computational

techniques. Quantitative research focuses on gathering data and generalizing

across groups of people or to explain a particular phenomenon.

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

Considering that this study attempts to describe a certain phenomenon which

concentrates on gathering data using numerical analysis of data collected,

questionnaire and survey, the researchers decide that the use of descriptive method

and quantitative research is the most appropriate in making recommendations and

providing conclusion.

Population, Sample size and Sampling Technique

The researchers used simple random sampling in order to identify the

sample size. Simple random sampling is when every member of the sample is

selected from the group of population in such a manner that the probability of being

selected for all members in the study group of population is the same. In other

words, sampling units are selected at random so that the opportunity of every

sampling unit being included in the sample is the same. This is the basic method of

sampling. In this method, numbers are assigned to every member in the study group

of population. Then the sample would be selected from a table of random numbers

or random selection. (Money Matters, 2017)

The researchers chose Cubao, Quezon City as the area of population to be

studied because the researchers would like to focus on knowing the factors being

considered by the hotel management for their selection of Accounting Information

System to be acquired along the location.

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

The population used for this study is 50 accounting and IT staffs of hotels

situated in Cubao, Quezon City. The simple random sampling used to get the

computed sample size of 44 is:

𝑁
𝑛 =
1 + 𝑁𝑒 2

where:

n – computed total number of samples

N – total number of population

e – margin of error (0.05)

Description of Respondents

In order to conduct a survey, the researchers personally asked the

respondents if they are willing to take part in the research. The researchers

explained the purpose of the survey questionnaires. The questionnaires were

received as soon as the respondents agreed to answer it.

Data Gathering Procedure

The researcher’s area of concern is the hotels located in Cubao, Quezon City,

which involves identifying the appropriate staffs to be surveyed. After, the

 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

researchers will distribute survey forms to selected hotel accounting and IT staffs

through the help of other staffs and the management.

The primary data of the researcher was obtained through interview with

management. Secondary data was gathered from a combination of surveys and

questionnaires personally distributed to hotel staffs.

Research Instrument

The main instrument used in the data gathering was the survey

questionnaires, prepared by the researchers. These 2 main driving factors consists

of 10 questions each. These factors were the determinants if the study would have a

positive or a negative result.

The questionnaire focuses on identifying whether the profile of the

respondents influence the factors they considered in choosing their AIS, such as

age, sex, employment status, number of years in the company and position in the

company. In addition, it also tackles the effectiveness of their chosen AIS that have

2 main driving factors which are the usefulness and ease of use. Each factor

consists of 10 questions each.

Verbal Descriptors
Numerical Descriptor
Effectiveness

5 Strongly agree

4 Agree

3 Neutral
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

2 Disagree

1 Strongly disagree

Table 3.1 Criteria used in the survey questionnaire

Statistical Treatment of the Data

To interpret the data gathered, according to the objectives of the study, the

researcher used the following statistical tools: frequency and percentage

distribution, and weighted mean.

Frequency and Percentage distribution: this mathematical tool shows the

proportion of responses for each question by majority or minority. This tool will be

used to find out the frequency and percentage of all responses from the

questionnaire.
 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

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 Accounting Information Systems in the Hotel Industry:
Analysis of Usefulness and Ease of Use

Contribution:

Catapang: Chapter 1, RRL AIS/Innovation

Pagran: Chapter 1, RRL Hospitality, Chapter 3

Pinalas: Chapter 1, RRL Technological Acceptance, Chapter 3

Ramos: Chapter 1, RRL Hospitality Chapter 3