Hospitality and Operations Management : Assignment

Hospitality and Operation
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
AC1.1: The nature of hospitality product and service areas:.................................................1
AC1.2 Different factors affecting patterns of demand within hospitality operations............2
AC1.3 Comparison of customer profiles and their different expectations.............................3
AC1.4 Factors affecting average spending power in hospitality businesses..........................4
AC2.1 Key stages in product and service development.........................................................5
AC2.2 The features which contribute towards the customer perception................................6
AC2.3 Opportunities and constraints affecting product or service development...................7
AC2.4 Different merchandising opportunities for hospitality products and services............7
TASK 2............................................................................................................................................8
AC3.1 Different method of pricing........................................................................................8
AC 3.2 Factor which affect revenue generation and profitability..........................................9
TASK 3............................................................................................................................................9
AC4.1 Various performance appraisal technique...................................................................9
AC4.2 Advantages and disadvantages of quantitative and qualitative appraisal technique.10
AC4.3 Business planning, evaluation and analysis in hospitality operations......................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality is the relationship between a guest and a host. It is hospitality derived from
Latin word Hostis, which means to have power. Industry has various types of field within
service industry includes lodging, restaurant, event planning and other fields in industry. The
Stoke Park hotel is selected for present report. This report talks about different nature of
hospitality product and services. Various types of customers profile and their expectation are
analysed according to their average spending power in hospitality business. There are various
opportunities for hospitality products and services are evaluated under this assignment. On the
basis of certain appraisal techniques performance has been measured of hospitality operations.
AC1.1: nature of hospitality product and service areas:
The service is an activity instead of thing which has some part of intangibility associated
with it. It involve some interaction between customer and service provider. These are non
transferable. Character of hospitality products and services are as below:
Inseparability:
The service can not be separated from person who is providing it. The products and
services produced on hotel have to be consume at hotel only as one can not take these services at
home for later consumption.
Intangibility:
Services are intangible as they can not be touched or seen. They are only measured by
customer satisfaction. Stoke Park hotel provide the spa services to its customer which is
intangible in nature (Vlacho sand Bogdanovic, 2013,).
Perishable:
Perishable means a service can not stored sale in future. As hotel Park Stoke serve food
to its customer which can not be stored for future selling. Park Stoke hotel provides various
services to its customers which are as follows:
Rooms Divisions:
The rooms are prominent part of hotel. As divisions of rooms should be according to
customers requirements. In hotel Stoke Park the rooms divisions are based on occupancy like
single and double occupancy, couple friendly rooms, balcony view rooms are there for
customers.

Food and Beverage:
The food and beverages are important part for hotel to built reputation. the Stoke Park
has best quality food and it serve same to its customers. hotel provides the timely food to its
guests living in hotel. These kinds of quality services made hotel a brand (Tsang, 2011).
Conference and Banqueting:
Conference hall are created for corporate meetings and banquet area is for family
function. The Stoke Park has huge space for conference hall and banquet area for its
customers .Conference and banqueting are the products provided by hotels but services attached
to them are inseparable and intangible
AC1.2 Different factors affecting patterns of demand within hospitality operations.
The demand is requirement or need of customers for a particular product or services,
provided by the organizations. There are various factors which affect demand of Stoke Park
hotel services, which are as follows:
Seasonality:
Season is a particular time for industries. In that period of time, demand of that industry
products and services are on peak. The hospitality operations are highly affected by seasons. As
at time of Christmas and new year, demand of Stoke Park hotel increases due to ample number
of visitors.
Time of Day/week:
The particular time of a day/week affect demand of Stoke Park hotel products or
services. At weekend time, demand gets increases of Stoke Park hotel as people comes for get
togethers and enjoy weekends.
Healthy Living:
There is a quote 'Health is Wealth'. people are very health conscious. As demand for hotel
products is highly affected by their healthy environment which is provided by Hotel. Healthy
living includes fresh air and water, neat and clean area for living and healthy food. The demand
of Stoke Park hotel is also affected by these elements.
Cultural:
Culture is set of values and ideologies of a particular community. Culture is subdivided
into age, location and social status etc. So demand of hotel can be affected by these elements.

Location where hotel is situated, culture followed by population of that area also influences
demand of hotel..
Regional:
The temperature is a major regional factor that can vary demand pattern of customers for
a particular hotel. For example, if Stoke Park is situated in a region where temperature is not
stable than demand for that hotel is less.
Ethnic Influences:
Ethnic is usually an inherited status based on society in which one lives. It can enhance
the demand of a particular hotel if they serve food which is related to their ethnicity (Sigala,
2013).
Economic Factors:
Economic factors are those which are related to growth of an economy of country. As if
consumer has more spending power, than they will spent more on luxurious and it will increase
demand for luxury hotel like Stoke Park.
AC1.3 Comparison of customer profiles and their different expectations
Basis for comparison Upper Class Middle Class
Spending Power This is considered as rich class
segment of society. As upper
class includes celebrity,
sportsperson and business
tycoon who has highest
spending power in society.
They consider hotel which
provides five star facility to its
customers. Because they have
more spending power and
according to that they choose
hotel to stay.
Middle class is basically
normal people of society with
average spending power. This
segment of society basically
focus on savings rather than
spending on luxury. As they
expect the good quality service
at affordable rate. They select
hotel according to their
requirement rather than
focusing on luxury services.
Meal experience The upper class segment wants
best meal experience with best
The middle class basically
focus ongood quality of food

quality of service. They spend
more on their diets and health.
which satisfy their hunger.
They do not spend more on
food because their focus is to
satisfy their hunger.
Expectation and Requirements This segment of customers
expect luxury services like
personal refrigerator, personal
parking etc. from the hotels
and they can spend according
to that. And their expectation
is their requirements.
This segment expect best
quality services in reasonable
rate. They have average
spending so they are unable to
meet their expectation. There
requirement is fulfilment of
basic needs like good food and
clean room etc.
Price Consideration This segment does not
consider price while selecting
hotel because they have
enough spending power. They
choose the luxury hotel like
Stoke Park which fulfil their
requirements.
As middle class segment
considered as price sensitive.
They choose the hotel with
reasonable price and better
quality services.
AC1.4 Factors affecting average spending power in hospitality businesses
Spending power is capacity of consumer to spend money. This is affected by various
factors. These factors are as follows:
Income Size:
The income is earning of an individual. It is very basic that one's spending is highly
affected by its income. If size of income of an individual is less then individual will choose
average hotel and if earnings are more than one will choose hotel like Stoke Park (Lashley,
2012).
Status:

The status is image in society which affects average spending of consumer. As status is
created out of money, if one have enough money than one has high status and vice and versa.
And to maintain that status they will chose hotel like Stoke Park for accommodation.
Economic Situation:
The economic situation of country has the direct effect on the average spending power of
customers. If interest rate is low then consumer will have more money in their pocket and if they
will have more money then they will prefer to spend on luxurious things like enjoyin weekends
in five star hotel like Stoke Park.
AC2.1 Key stages in product and service development
In order to stay competitive in market it is important for companies to develop new
product or services for customers. As hotel Stoke Park is also coming up with new Super Room
services for its customers. The process for this is described below:
Idea Generation:
The new product development process start with idea generation. It is a systematic search
for new product or service ideas. As it can be found internally and externally. Internally means
research and development and contribution of employees. And external includescustomers and
competitors. The Stoke Park hotel has generated idea of Super Room from its customers
feedback.
Idea Screening:
It is the next step in this process. Screening means filtering of various ideas. The
company choose those ideas which can be turn profitable for business. As Stoke park hotel has
many ideas but they have filtered ideas and selected super room service idea out of them.
Concept development and testing:
The concept which is developed by hotel Stoke Park is Super Room services which
includes various facilities like high class interior, personal swimming pool and personal
refrigerator. This concept needs to be tested with groups of targeted consumers by asking
questions regarding that service (Ferdin and Kitchin, 2012).
Business Analysis:
It is process which involve review of sales, cost and profits projections for new products
or services. If they are meeting company's objectives then it will be moved on next stage of

development As if Super Room services gets better sales review than only Stoke Park hotel will
continue this idea.
Product/Service Development:
It is the stage where product is actually developed. The research and development will
develop and test physical version of product concept. Super room is actual service for hotel
Stoke Park which will be offered to customers.
Test Marketing:
This is last stage before commercialisation of product. In this stage proposed marketing
programme of Super room services are tested in realistic market.
Launch:
The test marketing has given management information to make final decision. Before
launching hotel should focus on its launch timing. For instance if economy is down, than Stoke
park hotel should wait for some time and than launch.
AC2.2 features which contribute towards customer perception
There are some factors which influence customers perception towards the product or
services. These are as follows:
Brand Image:
This is most considerable factors for customers to make perception about product or
service of hotel. As if Stoke Park have good brand image then customers perception would be
positive for hotel.
Availability of Resources:
The main resources for hotel is availability of enough rooms in hotel. if customer is not
able to get room in hotel then it would change perception of customer towards that hotel. So it is
very important to have enough resources for meeting customer requirements (Crawford, 2013).
Style of Service:
The customer wants complete services for price paid by them. So it is very important to
know, that what kind of service and style of service customers wants.. Like in hotel varieties of
foods are offered so basically hotel use buffet style for guests in case of catering services.
Standardisation:

It is a strategy which allows hotels to provide high quality services regardless of
locations. The aim of standardisation is to transform old values and benefits into new excellence.
Space Utilisation:
The space is area or place where hotel operating their operations. As it is very important
for hotel like Stoke Park to proper utilisation of its space. Because if hotel is not using its space
properly than it can change the perspective of customers.
AC2.3 Opportunities and constraints affecting product or service development
As there are different opportunities and constraints for the new product that is developed
which hotel might face, these are as follows:
Factors Opportunities Constraints
Brand Image The hotel Stoke Park is
providing service of super
room to its customers
efficiently then it will create
brand image of the hotel
The constraint is if hotel is
unable to provide and manage
this service then hotel might
have to bear cost for that
Accommodation facility It is an opportunity for hotel to
provide the best
accommodation to customers
so that customers can come
again and again.So super room
idea can get success.
If company is not providing
the enough accommodation to
its guests than they might lose
their customers.
Availability of resources The hotel has opportunity tu
use all resources like human,
physical and financial
resources so super room idea
can generate profits for hotel.
The main constraint for hotel
could be financial resources, if
hotel lacks at financial
resource than it would not be
able to deliver super room
services.

AC2.4 Different merchandising opportunities for hospitality products and services
Merchandising is advertisement or promotion of goods or services which are available for
sale. It is process of displaying and selling products to customers. The various types of
merchandising opportunity for hotel is follows:
Visual Merchandising:
It is the display technique which is used to highlight benefits of products and services
being sold. As Stoke Park hotel can display TV at the reception which displays about hotel
products and services (Causin and Ayoun, 2011).
Digital Merchandising:
It referred as e commerce or online merchandising, it includes everything from site
performance and digital products displays to digital marketing and email marketing initiatives.
The hotel Stoke Park can grab this opportunity for promoting services of hotel.
Omni-channel Merchandising:
It refers to creating a unified customer experience across all possible touch point of
customer journey. Like customer visit the Stoke Park website where build cart for room
booking but at last moment it abandon cart. After few minutes hotel offers the 10% discount on
booking. So customer can accept offer. It is an omni channel experience because customer move
from search engine, to on site, to email and then back to site (Bharwani and Butt, 2012).
TASK 2
AC3.1 Different method of pricing
Pricing is the process of business for setting up prices for business product and services.
There are various pricing method which can be used by Stoke Park hotel, these are as follows:
Cost oriented pricing:
In this method manufacturer calculate cost of production and add some amount of profit
in selling prices. The percentage of profit is calculated on total cost which is fixed and variable
cost. For example, super room cost is 500 GBP and markup is 25% on cost. So selling price will
be – 500+500*.25 = 625 GBP. profit for hotel is 125 GBP.
Market Oriented Pricing:
In this method, the benchmark for setting prices is price set by competitors. If
competitors change prices than according to that other firms make changes in price.

Service Charge:
The service charge is prices charged by organisations for their services. The hotel Stoke
Park charges high for their services as because they provide quality services to its customers. So
while selecting price for their services hotel should consider quality of services (Bartram and
Dowling, 2013).
Minimum Charge:
The minimum charges is considered when selecting pricing for products and services. As
there should be a minimum charges for services offered by hotel, which has to be paid by
customers.
The Stoke Park hotel considering cost oriented pricing method which includes certain
markup profit in cost.
AC 3.2 Factor which affect revenue generation and profitability
The profitability is earning of any organization. There are some factors which affect
profitability of operations these are as follows:
The labour intensive refers to a process that need a large amount of labour to produce the
goods and services in firm. It has direct affect on profitability of firm. The Stoke Park hotel
needs labours for performing various activities like, food processing, house keeping etc. So if
they ask more wages than hotel has to incurred more expenditure and more expenditure leads to
low profits.
Elasticity of Demand:
The elasticity of demand refers to demand for a good is to changes in other economic
variable such as prices and consumer income. It has direct effect on profitability as if demand for
the Stoke Park hotel is more than profit will be more and vice versa.
Procurement:
It is concerned with the storing or procuring of goods for future purpose. It can increase
warehousing cost for organisation and increased warehouse cost leads to low profits (Alexakis,
2011).
Shelf Life:

The shelf life is commodity which stored without becoming unfit for use, consumption
and sale. As unused commodity or unfit for use commodity can increase cost for hotel. And
overall there profitability will be lower than usual.
TASK 3
AC4.1 Various performance appraisal technique
It is a process that evaluate the performance of an individual and overall organisation in
terms of productivity with respect to pre set objectives. There various techniques used by Stoke
Park which are as follows:
Quality Management:
Quality management is essential element for measuring performance in hospitality
operations. It includes quality of services offered by hotels to its customers. It is used while
measuring the performance of business operations in Stoke Park.
Data Analysis and evaluation:
This is a technique which used by Stoke Park to measure its overall performances. By
taking the data of financial statements into consideration, evaluation has done. It evaluate
whether profitability has increased or not .
Sales Performance:
Sales performance is another way of measuring performance. As the year sales taken into
consideration for measuring performance. An increasing sales denoted favourable performance
and decreasing sales denotes adverse performance (Sunder, 2013).
AC4.2 Advantages and disadvantages of quantitative and qualitative appraisal technique
Qualitative:
It is a technique related to performance appraisal technique which includes the qualitative
information like customer satisfaction, behaviour and attitude of guest towards the hotel services.
Quantitative:
The quantitative techniques provides data regarding sales performance of firm. And on
basis of data measurement is being done.
Particular Usefulness Limitation
Qualitative It shows the real experience of
customers because it focus on
It is not able to provide the

narrative from respondents statistical data analysis.
Quantitative It shows the authentic data from
financial statements about
performance of hotel
It does not able to capture the
real time experience of
customers.
AC4.3 Business planning, evaluation and analysis in hospitality operations.
Business Planing:
The planning is a document which entails strategy of business owner to run their
business. It provides a roadmap for where owner want to take its business. It is needed to grow or
start business. The Stoke Park has plan of Super Room services to grow their business.
Evaluation:
It is an approach which is used to review entire business as whole. As evaluate the
statements of business as a whole and take corrective action where needed. It will help the hotel
to set their goals according to financial availability with business.
Analysis:
The analysis is means analysing services currently offered by hotel and what can be
proposed to expand these services.
As for expansion of the Stoke Park hotel, they are coming up with new Super Rooms
service which would enable customer to experience a new luxury in hotel rooms (Kimes, 2011).
CONCLUSION
It can be said a sustainable tourism is an effective approach to generate employment.
There are various tangible and intangible products and services offered in Stoke Park hotel. The
hotel has used the process of new product of service development and as an outcome they
planned to launch Super Room services in hotel. Super room service which would meet
expectations of rich segment people. Apart form this, hospitality operations used various pricing
methods to decide prices of product and services.

REFERENCES
Books and Journal
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Online
Hospitality and Operation Management. 2018. [Online]. Available
through:<https://www.emeraldinsight.com/doi/abs/10.1108/09596119610152069>.