Hospitality Management Assignment Answer

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1- REPORT..........................................................................................................................1
AC 1.1 Analyse the nature of hospitality product and service...............................................1
AC 1.2 Evaluate different influences that affect pattern of demand......................................2
AC 1.3 Compare the customer profile and their expectations and requirements...................2
AC 1.4 Analyse factors that affect ASP in hospitality business.............................................3
AC2.1 Evaluate the key stages in product and service development.....................................3
AC2.2 Analyse the features that contributes towards a customer’s perception.....................4
AC2.3 Assess the opportunities and constraints affect product and service development....4
AC2.4 Evaluate different merchandising opportunities.........................................................5
TASK 2: QUESTIONNAIRE..........................................................................................................6
AC3.1 Evaluate different pricing methods.............................................................................6
AC3.2 Assess the factor that affect revenue generation and profitability..............................6
TASK 3: INDIVIDUAL REPORT..................................................................................................7
AC4.1 Apply the range of performance measures and appraisal technique...........................7
AC4.2 Presenting the usefulness and limitation of various quantitative and qualitative
approaches..............................................................................................................................8
AC4.3 Apply approaches to business analysis, evaluation and planning appropriate...........9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality management plays an important role in every business. The main aim of this
report is to understand the different operations which are used for the hospitality industry. The
chosen company for this report is Hilton which is one of the largest leading hotels in this
industry. Hotel operates its 600 unit in more than 50 countries and offer different variety of
services to their customers. The report describes the nature of hospitality products and services
areas and also evaluates different affecting patterns of demand and then compares customer
profile and their different expectations. Further report also presents the factors that affect ASP in
hospitality business and the key stages in product and service development. Repot describe the
features that contributes for customers preference and asses the opportunities and constraints that
affect product and services. Moreover, it also presents different pricing methods by answering
some question.
TASK 1- REPORT
AC 1.1 Analyse the nature of hospitality product and service
In hospitality industry, their main product is food and beverages and these products are
perishable and they are based upon different point of view and the nature of Hilton is as follows:
Perishable: The food and other types of beverages cannot be preserved for long time and
are not much durable because if these foods are preserved and then serve to customers then it
creates negative impact upon brand (Aday, Lui and Walls, 2017).
Tangible and Intangible elements: the tangible services refer to exterior as well as
interior design of a hotel. It means the visible infrastructure of the company that is visible to the
eyes of customers are tangible elements while on the other side intangible services are customers
response, reliability, empathy, assurance or many other things that visible for the eyes of the
people.
Service areas: Hilton main services are food and beverages, spa, resort, banquet hall,
pub and a well-designed restaurant where lunch and dinner are served for their customers with
best quality of food and other services. Therefore, these services directly affect the nature of
hospitality industry.
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AC 1.2 Evaluate different influences that affect pattern of demand
All the hotel is not serving the same type of services to their customers and there are
different factors through which the demand of their customers is also affect and these are
mentioned below:
 Seasonality: It means that the customers are also come as per the season. For Hilton,
many of their customers are come in summer season in order to enjoy their vacations.
Hence, that is the only reason demand in this season is increases as per the demand of
their customers (Jauhari and Bharwani, 2017).
 Time of the week: Many of their customers chooses weekend to enjoy their vacations
that clearly specifies that time of the week is another important factor that affect demand
of their customers. Mostly, couples and family members choose a couple of weeks to
spend their holidays in Hilton Hotel.
 Healthy living: Most of the customers are quite conscious related to their health and that
is that is why they wants to lead a healthy life and prefer to enjoy reputed hotel to spend
their vacations. So that they get the standard of level of sanitation. That is why this is also
affect the demand of their customers.
 Economic factors: Economic crisis generally affected by the national or international
economy and it also decline the customers income and as a result the demand of their
customers also falls. This directly affect the demand of their customers and they will not
go to enjoy their vacation for any particular period of time (Jones, Hillier and Comfort,
2016).
AC 1.3 Compare the customer profile and their expectations and requirements
Different customers expectation and their requirement also vary from the hotel to hotel
and the customers profile also vary on the basis of below mentioned points:
 Types of hospitality business: Basically, there are three types of business i.e.
accommodation, food and beverage and travel and tourism. For the context of Hilton,
customers are come in order to meet the requirement of their accommodation and enjoy
their vacations mostly.
 Pricing consideration: Mainly hotels are used b families and couples because these
types of customers are affected through services rather than pricing. If the prices are high
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but services are best then they find no hesitation to use those services (Jung and Yoon,
2018).
 Meal experience: Meal experience varies from people to people. Such as if the family
requirement for mean is simple while on the other side, for a sports person requirement is
completely differ and their diet is also heavy as compared to others.
 Expectation requirements: For a hotel it is quite necessary to keep look after the
demands of their customers and every people has different demand which needs to be
completed by hotel, restaurant or any other place. Therefore, the demand is different and
the customers also get the services likely to their expectations.
AC 1.4 Analyse factors that affect ASP in hospitality business
For the hospitality business, the customers are also offered with a large range of their
customers services that also vary from price level and it brings ASP. There are some factors that
affect ASP and this are mentioned below:
 Size of the income: the income level of the customers is also directly related to the ASP
of the customers such that If the level of income is higher than the average spending
power automatically updated. Hence it is depending of the customer’s income
(Kandampully, Zhang and Bilgihan, 2015).
 Status: It is also depending upon the ASP. If the customer’s status is improved and a
person belongs to royal family they cannot bargain for the cheap services. Because they
actually afford higher level of services because their status is high.
 Social influences: This is also influence by ASP such that many customers spend extra
on festive seasons or some other important festivals. That clearly states that their social
influences also vary from ASP.
 Economic situation: this is one of the most important factors that affect ASP such that
lower the economic condition lower the spending and as a result, people will not able to
spend their extra earning which they save for their future.
AC2.1 Evaluate the key stages in product and service development
For any new product development, it is quite necessary for the Hilton to identify the key
stages which are as mentioned below:
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Idea generation and screening: It is the first step under which the idea of the new
product is tested. The viability of the new product is related to new opportunity and treats are
also related to this. If the manager found best and better then the product is shift for next step.
Concept development and testing: As per the customer’s requirements, the product
needs should be realized and market research should be done in such a manner that it helps to
identify the needs of users (Kim, Vogt and Knutson, 2015).
Marketing: It is another important stage under which the price is finalizes in order to
determine the demand of their customers. If the Hilton wants to produce a new product in order
to attract wide range of customers then it will be helpful for them to maximizes their profit
margin.
Commercialization and launching: If the product is finalized, then it’s time to launch
the product into a market and through different marketing techniques, people come to know
about this new product through advertising and promotional technique.
AC2.2 Analyse the features that contributes towards a customer’s perception
There are many key features that should be look after towards a customer’s perceptions
for Hilton such as brand image in market, best service quality etc. If the customers found these
things in the Hotel then it creates positive impact. Some of them are as follows:
 Strong brand image in the market creates positive perception of the customers regarding
the hotel and helps to draw attention of many of them (Modica and et.al., 2018).
 The menu of food which is offered by the restaurant is nutritious, delicious and dietary
then it helps to draw attention of many of the customers.
 The arrangement should be perfect in hotel such as for disabled person, proper facility
should be there like lift, chairs etc.
 The service style should also be different for different people. For example, in Hilton the
arrangements are differ for families, couples so that it helps to create positive perception
in the mind of customers.
AC2.3 Assess the opportunities and constraints affect product and service development
Opportunities means such things which help to boost up the business that affect the actual
revenue and sales of the company. While on the other side constraints are those operations that
decreases the sales as well as revenue. For Hilton, opportunities as well as constraints are
mentioned below:
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Opportunities:
 Hilton has an opportunity in order to compete its competitors when the quoted company
provide same type of products and larger types of facility through its well-developed
planning (Santhanam and et.al., 2018).
 The hotel can attract wide range of customers of different variety of groups from single
person to businessman or sportsman in order to make better position in market.
Constraints:
 The major constraints for Hilton are such that, if the rival company provide extra facility
with accommodation services in order to attract wide range of customers, at that time
Hilton should planning for its new service, otherwise it would be difficult for the
company to gain competitive advantage (Secchi, Roth and Verma, 2018).
 Availability of resources are also considering the constraints for the company because if
the resources are not up to the mark then it will not help them to maximizes their sales.
AC2.4 Evaluate different merchandising opportunities
Merchandising is the simple activity that helps to promote the products in order to
increases the sales (Merchandizing, 2018). Therefore, there are different opportunities for Hilton
in order to merchandise and these are as follows:
 If the travellers of the company expect less or high quality of services that is actually
based upon their purchasing power. At that time this type of business has the opportunity
in order to create the high value of products with premium charges.
 If the country’s economic condition is strong then it will help to improve the condition of
the hotels and as a result, it helps to gain merchandising advantage (Singal, 2015).
 The promotion technique should be unique and different so that it will help them to
attract wide range of customers towards them.
TASK 2: QUESTIONNAIRE
AC3.1 Evaluate different pricing methods
 Cost oriented pricing: It is a simple pricing method, under which price is determined
through production cost and percentage of profit is added to production cost in order to
identify the selling price.
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 Market oriented pricing: Under this, a market research is done in order to determine the
competitor’s pricing strategy. Then based upon their pricing, market oriented is
conducted.
 Service Charge: It means that they are the customers who makes the value based upon
prices and the services which are provides to the customers, hotels take extra charges
regarding this in order to submit that to government (Sipe and Testa, 2018).
 Cover charge: It is a flat fee that is paid by the customers to restaurant and it is cover in
the little basket of bread that is actually comes in cove charge.
 Minimum Charge: It means that to charge in such a low rate as compared to eventual
market in order to attract wide range of customers.
a)
In Hilton, cost oriented pricing and minimum pricing is applicable because it will help to
attract wide range of customers.
b)
other pricing strategy are not applicable because it takes to much time to decide which is
help to generate more revenue that is why not applicable.
AC3.2 Assess the factor that affect revenue generation and profitability
Factors Explanation How they are used
Labour
intensity
It is the labour requirement of the
industry
In hotel, staff or labour are used
that is why the industry is known
as labour-based industry. Capital
is also needed in order to invest in
such types.
Shelf life Help to creates brand image, level of
positive measures should be taken for
better arrangements.
In Hilton, the level of customer
satisfactory is must that is why the
company develop new strategy in
order to sustain its brand image.
Elasticity of
demand
Demand of the products If the demand of customers
changes then the pricing as well as
product are also changing as per
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their needs.
Standardization It should be maintaining such as
sanitation, hygienic place, menu etc.
Hilton maintain its menu in such a
way that it offers hygienic menu
and also maintain higher level of
standard so that royal customers
will come and enjoy (Torres, van
Niekerk and Orlowski, 2017).
Pricing It should be cheap and lower with
good quality of products.
The pricing strategy of their
products are good and attractive
so that it will help them to attract
wide range of customers towards
them. Price of their services are
minimum for the customers and
also offer discount coupon for
their regular ones.
TASK 3: INDIVIDUAL REPORT
AC4.1 Apply the range of performance measures and appraisal technique
There are many appraisals techniques are used in order to measure the performance level
of the company and some of them are as follows:
 Quality management: The management should be perfect and manager of the Hilton
should also determine the ways how to improve the quality of their products.
 Speed of delivery: In hotel industry, there should be fast delivery services or orders
which is also needed to measure (Yam, Raybould and Gordon, 2018).
 Developing qualitative and quantitative data: In order to measure overall operational
performance, should collect qualitative data such as customer satisfaction, reliability. On
the other side quantitative data are product pricing of their rivals and number of royal
customers attend.
 Data analysis and evaluation: If the data are collected it is need to be compare in order
to evaluate the performance.
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 External comparison: Benchmarking is the best method to determine the external
performance of the Hilton such as pricing and quality of services are offered.
 Sales performance: In order to evaluate the sales performance of Hilton, it is necessary
to keep increasing the sales performance because it is the only method that help to raise
the sales as well as revenue of the company (Zaitseva, Goncharova and Androsenko,
2016).
AC4.2 Presenting the usefulness and limitation of various quantitative and qualitative approaches
Qualitative approaches: these approaches are customers satisfaction, service quality and
this can be done on the basis of interview or survey method. If the majority of answers come in
favor of the hotel then it means that the hotel performance is good. Because if the customers are
satisfied only then the brand image of the company will sustain and if not then the sales as well
as revenue of the company decline and the brand image will decline as compared to other
company (Aday, Lui and Walls, 2017). However, the main criticize of the qualitative data are the
result are not applied for the larger population. Therefore, these results are based upon small
group of peoples.
Quantitative Approaches: these data for Hilton are number of royal customers are
attended and the pricing strategy of the hotel. This can be done on the basis of counting the
customers come during a particular time or a season or number of wedding which are conducted
in the Hotel. This will be helpful in order to determine the sales generation during a particular
period of time. The pricing strategy means that that if the price is higher as compared to others
then it is quite necessary that Hilton should offer extra services to their customers in order to
gain high competition advantage. This is possible only if the quality as well as products are in
well conditions.
AC4.3 Apply approaches to business analysis, evaluation and planning appropriate
If the approaches are applied in the company in well and effective manner then it will
help them to achieve the brand image in market and as a result the company will easily gain
highly competitive advantage. For example, earlier the hotel industry only provide
accommodation services but as the time passes, these industry provide some more facility in
order to attract wide range of customers towards them such as restaurants, spa and resort etc.
therefore, this extra facility shows that as the people demand increases then they also added extra
facility to their offered services and as a result, the company will easily generate high value of
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sales and revenue (Jauhari and Bharwani, 2017). On the other side there are three major types of
sources of demand are also available such as institutional, transit and recreational. If these
demands are maintained and fulfil by the hospitality industry then them occupies the much
greater part in the economy of the country and as a result they contribute the major part for the
country’s economy and also sustain their brand image in market. This is all for the additional
services which can be proposed for the further expansion of the Hilton hotel so that it helps to
generate more revenue as well as maximizes the profit.
CONCLUSION
By summing up above report it has been concluded that management in hospitality
industry have their own importance. As report present the nature of hospitality industry such as
room dividion and banquet hall which Hilton hotel also offer to their customers with such a chep
rate. Further report also concluded that different pricing strategy should also be adopted by th
company in order to attract wide range of customers. As per the ned and requirement of
customers, Hilton also provide best variety of food services that leads to maximzies their current
business. Report also concluded the key stages that help to develop a new product and also
describe the opportunities as well as constraints that helps to make better decision for the welfare
of a company. It further concluded different factors that affect the revenue generation and
profitability of hospitality operations.
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REFERENCES
Books and Journals
Aday, J. B., Lui, S. and Walls, A. R., 2017. Innovation in hospitality service experience creation
and delivery. In Routledge Handbook of Hospitality Marketing (pp. 437-448).
Routledge.
Jauhari, V. and Bharwani, S., 2017. An exploratory study of competencies required to cocreate
memorable customer experiences in the hospitality industry. In Hospitality
Marketing and Consumer Behavior (pp. 159-185). Apple Academic Press.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International
Journal of Contemporary Hospitality Management. 28(1). pp.36-67.
Jung, H.S. and Yoon, H.H., 2018. Improving frontline service employees' innovative behavior
using conflict management in the hospitality industry: The mediating role of
engagement. Tourism Management, 69, pp.498-507.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Kim, M., Vogt, C. A. and Knutson, B. J., 2015. Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism
Research. 39(2). pp.170-197.
Modica, P. D. and et.al., 2018. Consumer perceptions towards sustainable supply chain practices
in the hospitality industry. Current Issues in Tourism, pp.1-18.
Santhanam, N. and et.al., 2018. Examining the moderating effects of organizational
identification between human resource practices and employee turnover intentions in
Indian hospitality industry. GSTF Journal on Business Review (GBR).4(1).
Secchi, E., Roth, A. and Verma, R., 2018. The impact of service improvisation competence on
customer satisfaction: evidence from the hospitality industry. Production and
Operations Management.
Singal, M., 2015. How is the hospitality and tourism industry different? An empirical test of
some structural characteristics. International Journal of Hospitality Management. 47.
pp.116-119.
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Sipe, L. J. and Testa, M. R., 2018. From satisfied to memorable: An empirical study of service
and experience dimensions on guest outcomes in the hospitality industry. Journal of
Hospitality Marketing & Management. 27(2). pp.178-195.
Torres, E. N., van Niekerk, M. and Orlowski, M., 2017. Customer and employee incivility and
its causal effects in the hospitality industry. Journal of Hospitality Marketing &
Management. 26(1). pp.48-66.
Yam, L., Raybould, M. and Gordon, R., 2018. Employment stability and retention in the
hospitality industry: Exploring the role of job embeddedness. Journal of Human
Resources in Hospitality & Tourism, pp.1-20.
Zaitseva, N. A., Goncharova, I. V. and Androsenko, M. E., 2016. Necessity of changes in the
system of hospitality industry and tourism training in terms of import
substitution. International Journal of Economics and Financial Issues. 6(1). pp.288-
293.
Online
Merchandizing. 2018. [Online] Available
through:<http://reflektion.com/resource/merchandising-types-and-examples>.
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