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Abstract

The purpose of this study is to identify the drivers and predictors of IT spend in hotels. In this paper we take a pragmatic stand to the preparation of expenses in a hotel and suggest that because managers rely on past years’ performance to establish budgets and because of corporate politics, I T spends does not vary over short periods of time. Also we report that the hotel size, its operating type, and segment determine its IT spends. We hope that this first examination of the realities of resource allocation in hotels will trigger research on h ow to improve budgeting practices and enhance the future managerial functions within hotels.

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