Information-Gathering Systems and Cost Accounting

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How do these information-gathering programs help the hotels become more competitive? What is the strategic role of these programs?

Information is one of the most influential tools of the modern world. It helps to acquire a significant competitive advantage and win the rivalry. A company that possesses critical data related to its activity can plan its actions better and obtain enhanced outcomes. In such a way, organizations struggle to acquire information that will contribute to their further growth. This pattern is also topical for the hotel business.

The tendency towards further increase in the number of competitors means that companies will try to preserve their leading positions by meeting all guests needs to attain high satisfaction levels (Johnson, 2006). Moreover, collecting data about customers personal preferences, a hotel shows that it is interested in further cooperation and wants to create the most convenient environment for a person. The majority of individuals feel pleased when their wishes come true even such insignificant ones. For this reason, information-gathering programs will apparently help to create a more customized environment to attract guests and show devotion.

Therefore, programs of this sort play a critical role in the functioning of all modern hotels as they are used to create databases that contain essential information about all guests. Regarding the tendency towards an increased level of requirements for the quality of service, it could be one of the effective tools to meet these demands and preserve the positive image of a brand. In such a way, information-gathering programs cultivate a new approach to the delivery of services and help hotels to evolve.

Do you see a role for activity-based accounting for these firms, as it relates to their information gathering and customer service?

The use of the information-gathering programs could also create the basis for the implementation of activity-based accounting model. It is a method that identifies activities an organization performs and outlines costs and resources that should be devoted to these activities (Fathi & Dozdahiri, 2015). Regarding the fact that a hotel already possesses data about services it will offer to a guest, the use of activity-based accounting model becomes an efficient way to lay out expenditures and decrease spending (Fathi & Dozdahiri, 2015).

The fact is that companies do not have to offer all they have at the moment. Instead, regarding information about clients they have collected, only required or popular services should be provided. This pattern helps to save costs and maintain quality at the appropriate level. However, it rests on the knowledge of guests personal preferences acquired due to the implementation of data-gathering programs mentioned above.

What ethical issues, if any, do you see in the information-gathering systems?

Therefore, the further development and use of such tools gives rise to particular ethical concerns. The fact is that hotels collect very personal information about their clients preferences, tastes, behavior, etc. Because they already possess essential data demanded for registration, further data collection might pose a certain threat to an individual. Moreover, it could be considered intrusion into a persons privacy and violation of his/her primary rights.

Information is a powerful tool, and it could be used against a guest if plotters acquire it. Another ethical concern appears because of the implementation of data-gathering programs without informing individuals that their preferences will be recorded (Johnson, 2006). One perfectly realizes the fact that a person can prohibit using these tools to collect data about him/her as the right to privacy remains undeniable. In such a way, doing it without guests consent, hotels give rise to numerous ethical issues, which might result in significant deterioration of their images and decrease of in the level of customers trust.

References

Fathi, A., & Dozdahiri, E. (2015). A survey of activity-based costing in hotel industry. Management Science Letters, 5(9), 855-860. Web.

Johnson, A. (2006). Hotels take know your customer to new level. The Wall Street Journal. Web.

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