As the tourism industry expands globally, the need for expanding the communication networks to connect the customers and the service providers has increased. E-commerce is a profit-making transaction strategy that enables faster and wider business transaction from wider contexts of economic value and value creation via internet. The hotel industry in Ethiopia was selected as a setting to explore the relative influence of factors in determining the adoption of e- commerce to study the factors that affects the adoption of e-commerce in the hotel industry in Addis Ababa. The model, presented by, was chosen from different scholars as a framework for evaluating factors that affects the adoption of e-commerce in the hotel industry. The study was used both descriptive and exploratory design using a quantitative approach through structured questionnaires that were distributed to 90 selected hotels in Addis Ababa. Descriptive statistics and multiple regression techniques were used for analysis using Statistical Package for Social Sciences (SPSS). factors such top management and IT capabilities have a positive and significant relationship with the e- commerce adoption, whereas organizational competency has negative significant among organizational factors, and technological factors such as perceived relative advantage / benefit and perceived compatibility have a significant impact and while perceived complexity has insignificant effect on e-commerce adoption in the study population. Similarly, among external factors that relate to the pressure or support from the external factors that influence the adoption of e-commerce; market e â€“ readiness, industry e - readiness and government e-readiness all have a positive and significant correlation with the ecommerce adoption in the study population. Recommendations based on findings and suggestions for future study are presented.