Does ICT adoption enhance hotel performance?

PurposeThe purpose of this study is to investigate the influence of information and communication technology (ICT) adoption on hotel performance in Thailand.Design/methodology/approachThe elements for measuring the level of ICT adoption include: availability of ICT components, integration of ICT components, and intensity of ICT usage. Operational productivity and customer satisfaction were used for measuring hotel performance. To control for the influence of location and employee and management characteristics on hotel productivity, data were collected solely from three star hotels operating in the same location, Phuket, Thailand. Operational productivity was calculated by using data envelopment analysis. A five‐point Likert type scale was employed to measure customer satisfaction. Multiple regression analysis was utilized to assess the relationship between ICT adoption and hotel performance.FindingsThe findings indicate that ICT adoption has a significant positive relationship with hotel performance. However, ICT adoption influences operational productivity more than customer satisfaction within three star hotels. ICT availability and ICT integration have a significant positive relationship only with operational productivity, while the intensity of ICT usage has a significant, positive relationship with both operational productivity and customer satisfaction.Practical implicationsThe findings will benefit the hotel industry by providing critical information to management in deciding on the areas in which ICT should be adopted, such as room division or food and beverage division, as well as the specific technologies that would improve hotel performance. It also contributes valuable information to ICT marketing personnel.Originality/valueThis study fills a gap in terms of the requirement for more studies investigating the impact of ICT on hotel performance in general, and in developing countries in particular. This helps in understanding the topic from a developing country's perspective.