Reservation and hotel productivity has become a matter of concentration and interest for researchers and PR actioners from last decades to date. The purpose of this study was to examine the impact of online reservation system on the hotel productivity with research objectives such as; to determine the influence of websites on the profitability of hotels, to examine the role of hotel application systems on customer satisfaction and to establish the relationship between online reservations system and hotel profitability in Uganda. The study adopted innovation theory of profits which aims at raising profits from successful innovations introduced by the enterprises with the sample size of 49 respondents who participated in the study with questionnaires as the main tool of data collection. It has been observed that hotels in Uganda are facing tough contest and no empirical research has been conducted in Uganda within the context of online reservation system and profitability. The literature observed revealed that online systems are crucial for the continuity of the enterprises and the current study also revealed that online systems are crucial in providing information to customers, they act as archives, automate, they provide updates about vacant and occupied rooms, they act as an important archive of information, assists users in finding the desired information quickly, they provide web map and a search tool for easy information access. Spearman’s correlation co-efficient was used to determine the relationship between online reservation systems and productivity and the study considered online room bookings in relation to traditional manual and present book booking system. The results gave a strong 0.743 positive relationship. The study concluded that for any enterprise to perform financially positive, obtain customer loyalty, trust and relationship should adopt the modern technological systems. The study however recommended recommend source of the Nile hotel to prioritize hiring ICT qualified employees so as to increase and improve on its online programs and to think of connecting its online platforms to online payment systems