Hospitality Operation Management

This report analyzes the hospitality operations of Marriott Hotel, covering aspects like product and service characteristics, demand patterns, pricing strategies, and performance evaluation methods. It explores the key stages of product development, customer perceptions, and opportunities and constraints in the hospitality industry. The report also examines different pricing methods and their impact on income generation and profitability.

HOSPITALITY
OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
1.1 Analysis of the nature of hospitality products and service area........................................................3
1.2 Evaluate different factors affecting pattern of demand.....................................................................4
1.4 Analyze factors affecting average spending power (ASP)..................................................................5
2.1 Evaluation of the key stages in the products and services development...........................................6
2.2 Analysis of the features contributing towards the customers perceptions of products and service. 6
2.3 Opportunities and constraints affecting product and service development......................................7
2.4 Various merchandising opportunities for the hospitality services and products...............................7
TASK 2..........................................................................................................................................................8
3.1 Different methods of pricing considerations.....................................................................................8
.................................................................................................................................................................8
3.2 Factors affecting income generation and profitability in hospitality industry....................................8
TASK 3..........................................................................................................................................................9
4.1 Use of different performance measure and appraisal technique......................................................9
4.2 Effectiveness and drawbacks of different qualitative and quantitative appraisal methods.............10
4.3 Application of approaches appropriate for hospitality operation....................................................10
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Hospitality management refers as the management of any business concern that is related
with satisfying services like accommodation, drink, food for such people who are away from
their home. This field of study encompasses the management and administration of restaurants,
hostels, travel agencies and various other same organization industries (Davis, Alcott and
Pantelidis, 2018). The report is based on Marriott hotel which is international hotel that are
serving best services to their customers in better manner. Along with this, the main purpose of
this assignment is to analyze the nature of hospitality products and service area. There are
various factors that directly affect the pattern of need and demand. in this report, the hotel is
understanding the pricing and profitability concept of hospitality operations by refer to different
pricing model and revenue generation approaches.
TASK 1
1.1 Analysis of the nature of hospitality products and service area
In hotel concern, the commodities and services can be food and drinkable. Such goods
and services are very much biodegradable. Thus, it is based on different standards, the quality of
hospitality products and facilities area are described as under:
 Perishable – The nutrient and beverage along with another kind of hospitality goods that
are not much durable and it is very much perishable in nature. In Marriott hotel, there are
various perishable good and services which includes room services, storage space and so
more.
 Tangible and intangible elements – The work attribute of the building concern concern
has various two factors along with their several capability and imperfection. Thus,
touchable services or facilities can be internal and external design of the Marriott hotel,
the technique of hotel, closer position or condition of hotel, all such things are very much
visible to their customers in better manner (Dopson and Hayes, 2015). On the other side,
immaterial services elements are customer sensitiveness, empathy, dependability and
confidence which are not seeable.

 Service area – The primary kind of service region of the Marriott hotel are room
department for their buyers, food and drinkable services or facilities, group meeting hall
for meeting and discussion as well as banqueting system in order to assist customers in
arrange big fiesta such as lunch and meal.
1.2 Evaluate different factors affecting pattern of demand
In hotel concern does not have similar type of need in all ended the time period or even
all the days in the week. Along with this, there are various element through which supply of the
clients change from others. There are four major factors which influences that are described as
under:
 Seasonality – The one of the main customers of the Marriott hotel are the come for
destination as per the season. The demand and need in this season increasing than other
season.
 Time of the week – It is essential customers unit which are familiar and couple, who
mainly choice or prefer weekend and any type of holiday to traveling. In this context, the
time period within the week has increasing the need. Hilton hotel are attracting large
number of guest within the week (Mattos Jr, 2014).
 Healthy living – The customer who are very much concern regarding their well-being
and like to lead towards flourishing existence which are always select the hotel in which
they can get the standardized plane of cleansing. This factor will directly affect supply of
clients in proper manner.
 Economic factors – If there are such kind of domestic or local situation in the system or
the income and revenue of leading kind of consumer decreases then the need of
customized are lower. Hilton hotel will contribute their income towards increasing
economic condition or situations.
1.3 Customer profile with different expectations and requirements
It is supported on various consumer anticipation and their specific responsibility or
demand, the client's visibility of the hotel can be vary. Therefore, this is settled on prospect on
differential, the customer profile of Marriott hotel are designed.

Types of hospitality business – There are primarily three form of hotel concern such as
food and drinkable, room service and traveling and tourism. In Hilton hotel, it is mainly
supported on accommodation of the customers in reasonable price (Grekova, 2014). The
customers come here for reach with all accommodation and service purpose in better manner.
Upper class people spending power is more so they prefer expensive hotel and on the other side,
middle class people are prefer to choose reasonable rate of room and they does not spend more
money for their living.
Pricing consideration – The leading kind of guests of the Marriott hotel are household
and family or groups. Such form of customized are determined as their services or facilities
rather than their cost circumstance that can lead towards higher price for all services. In upper
class, this segment does not consider price while selecting hotel because they have enough
spending power. On the other hand, middle class segment considered as price sensitive and they
are select hotel which charge affordable rate of rooms.
Meal experience – The standard of the meal for their customers is higher. Therefore,
there have various customers which are consuming different type of food items as per their
profession. In this case, their meal menu is likely which not so heavy food item of different
customers (Valta, 2015). In this, upper class segment want best meal experience along with high
quality products and services and also spend more money on their health. On the other hand,
middle class people are usually focus on quality based goods and services that satisfy their
hunger and they are not able to spend more on food.
Expectation requirements – As in Marriott hotel, there are different types of customers
who are stay, demand are also varies from demand. Therefore, the demand is different so
customers are get services which are likely to their requirements or expectations. In this segment,
upper class people expect luxury facilities such as personal refrigerator, parking and so more
from the hotels. On the other side, middle class people expect the best quality based services in
reasonable price and also spending average for reaching with all desired needs and demand.
1.4 Analyze factors affecting average spending power (ASP)
In this discourse of hospitality industry, the customers are offer and serve with broad
scope of services along with different level of cost steady that carry out about average spending

power (ASP). In ASP, it uncover customized whole awaited impulse or desire. Along with this,
there are different component which are vary average spending power (ASP) that are described
as under:
Size of income – The whole income and revenue level of the guest is higher that are
related with average spending power of the customized in the Marriott hotel. If the income level
is increases than average spending power is automatically enhancing of guest.
Status – It is other necessary component which is supported on average spending power
of the customers that can be better. If any guests are societal loyal individual, then he/she cannot
reduces the cist by any type of case rather than make higher cost along with better services. The
statuses of the customers are directly affects on hotel services and facilities (Pizzuti and et. al.,
2014).
Social/cultural influences – Sometime, there are various social or cultural factors which
directly affects on average spending power of the customers. For instance, customers are
spending more money in festival, occasions.
Economic situations – At last, economic condition comes. It is the client outlook or
demand rather than due to lower economical status so they are constrained to cost more and less
their average spending power.
2.1 Evaluation of the key stages in the products and services development
Whenever, the Marriott hotel is leaving to beginner a program of product improvement,
as an functional director. There are various central degree in the products and work development
that are described as follows:
Idea generation – The new product development begin with the idea generation. It is
systematized search for new goods and service ideas. The viability of that idea and though along
with related new opportunities and treats can be analyzed. Marriott hotel can develop fresh idea
for gaining attention of large number of customers (Wood, 2018).
Idea screening – It is next step in which screening help in filtering different ideas. An
organization select such ideas that can be converted into profitable for the business.

Concept development and testing – The concept that help in developing by Marriott
hotel is unique rooms which includes attractive facilities such as swimming pool, refrigerator and
class interior. This concept required to be tested with groups of target customers by asking
questions regarding various services.
Business analysis – This is that procedure which involves review of sales, cost and
profits projections for new goods and services. If hotel is reaching with desired goals and targets
so they are looking forward to next stage of development.
Product/service development – This is the stage where products is actually formulated
and developed in proper manner. Along with this, research and development will develop and
test physical version of production concept effectively.
Test marketing – It is the last stage before commercialization of commodities. In this
stage, proposed marketing program will be tested in real market place.
Launch – The test marketing has provided management information for developing final
decisions in better manner. Before launching hotel in new market, they need to focus on their
launch timings. For example, if economy growth rate is decline so this is better for hotel is wait
for some time and than launch.
2.2 Analysis of the features contributing towards the customers perceptions of products and
service
If Marriott hotel require to gain attention, large number of clients so it want to make these
place in the marketplace in regard of brand image, service quality and so more. So that it can
develop and form strong buyers good perceptions towards getting new goods and services.
Brand image - In this case, powerful brand image regarding particular products and
services of the Marriott hotel that can framework optimistic point of view of the customers
(Berryman, 2014). Besides, if the foods menu of the Marriott hotel being nutrition, pleasing and
evidently dialectical than it can attract more visitor towards hotel. The particular agreement for
disabled individual can develop the popularity of the hotel in high manner.
Availability of resources – The resource for hotel is available of enough rooms in the
hotel. If customer does not get the room in hotel so this will change their perception of customers

towards Marriott hotel. Along with this, if hotel make sure that enough availability of resources
all access to the customers then large number of guest are willing for the hotel.
Style of services – The customers need to complete services for price paid by them. Thus,
it is essential to understand that which type of services and style of services provided to their
customers. Therefore, style of services can affect choice or preferences. If the services for
women, male are even households and family unit can form isolated along with various services
holders then the people are supply great representation. For all the customised standard level
food menu with affordable cost is much desired in correct way.
2.3 Opportunities and constraints affecting product and service development
Opportunities are such which assist business organization that directly effect in
enhancing gross sales income and earnings whereas various constraints restricts the concern
operations and its functions which can lead towards increasing the sales income and revenue in
better manner. In current time period, Marriott hotel need to take opportunities and treat the
goods and services in developed manner and also analysis SWOT for examining its whole
factors.
Opportunities - Marriott hotel has higher possibility to contend with its rivals when it is
going to deliver same and larger kind of facilities or services in the context of new planning
(Taoukis and Tsironi, 2016). The another essential opportunity is that hotel need to plan the
grasp of variety of customers with ranging from single individual, couples and families to the
specialized such as sportsmen and sports enthusiastic that will assist hotel in developing better
position in the large market place. In context of Brand image, Marriott hotel is providing best
services of unique rooms to their customers efficiently then this will create brand image of the
hotel. Along with this, for giving accommodation services is the main opportunity of hotel so
that customers can come again and again through this unique room idea can get success.
Constraints - The major constricts is the limited accommodation facilities or less
services, at the time when competitors provides additional services that attract large number of
guests. With the help of this, hotel is doing planning for increasing services, so this would be
complex for gaining competitive benefits. the other essential constraints of the Marriott hotel is

that there have small sum of local organization opportunities in all over the corporate world so
people are perform job near the small villages for living their livelihood.
2.4 Various merchandising opportunities for the hospitality services and products
In the procedure of globalization, group have traveling much for both the enterprise and
diversion intention that will directly affect on increasing the hospitality concern in all over the
world. Therefore, the hospitality business gets various marketing opportunities over various
types of organization. There are different aspects which are described as under:
 Most of the cases, visitors expect lower or higher quality based services on their
particular buying power. Such type of have some opportunities for developing and
creating more value with premium charge (Mader and et. al., 2015).
 Besides, if the economical situation of traveler's nation or even the economic status of the
travelers is developed so they are provides good hospitality services and facilities by
business and also gaining marketing advantages.
TASK 2
3.1 Different methods of pricing considerations
In hospitality business, there are various kind of evaluation method which are analyzed
such as value plus pricing, market placement pricing, competition pricing, etc. in regard of
Marriott hotel; there are two main methods or techniques of pricing techniques that are described
as under:
 Cost oriented pricing - This is the simple kind of pricing methods in which the prices are
ascertained as on the basis of production cost or value. In addition this, a percentage
profit is added within the production cost that determined selling prices. For example,
super room cost is 400 GBP and markup is 20% on cost. Then selling price will be –
400+400* .20 = 320. this method is selected for calculating the total prie of each products
and services which are deliver to their customers.
 Marketing oriented pricing - In this case, marketing research or investigation is
conducted in order to evaluate the rivals pricing. It is based on their pricing, marketing
oriented pricing are executed (Pillai and Shayanfar, 2014). in this method, benchmark for

setting prices is price set by rivals. If competitors change the prices than as per this other
firm are make change their rates.
Along with this, such two kind of rating theory of Marriott hotel can precede various
form of value. In this respect, facilities cost are obligatory on the customers or visitor after
consuming the meal. Apart from this, sometime whether the customized have their meal, a
minimal complaint is implied on them.
3.2 Factors affecting income generation and profitability in hospitality industry
There are various component which directly impact on the income or revenue of the
hospitality enterprise concern and so the profitable of business is enhanced. Various form of
income making factors and various profitability factors affect much on hospitality industry. Such
factors are described as under:
Factors Description
Labor intensity In Marriott hotel, the use of capital is lower
than the use of labors. For this, this industry is
said that labor intensive. This is directly affect
on profitability of the hotel. Marriott hotel
require labours for performing different
functions such as hose keeping, food
manufacturing, etc. if they ask more salary or
wages than hotel has incurred with more
income and expenditure which lead towards
lower profits.
Shelf life After taking new and products development
plans so the company can sustain the whole
market for gaining attention of customers. The
degree of guest satisfaction should be
enhanced. As the new products and unfit for
usage of commodity can easily increasing the
cost of hotel. For this, the overall profitability
will be lower than usual.

Elasticity of demand In Marriott hotel, price elasticity of need is
inelastic which refers to alteration in
requirement of the guest that is lower than the
change in price of goods and services. This is
directly effects on profitability as if demand for
Marriott hotel is more than profit will be more
or vice versa.
Standardization Marriott hotel administration is very much
hygienic and also keep high level of
standardized in option of food menu and
various other services.
TASK 3
4.1 Use of different performance measure and appraisal technique
In the procedure of Marriott hotel, it can be seen that evaluation supported on various
tools and methods for understanding advantages or disadvantages of total operational system. In
this, there are different appraisal methods in order to evaluate the whole performance that is
described as follows:
 Quality management - In quality management procedures, it is required for hotel is to
provide quality based services and food items to the customers. Also the hospitality
products need to be analyzed which determine the way for make proper improvement.
 Speed of delivery - In the serving time, hotel staff members required to maintain their
speed while serving food to their customers that is very essential for hotel industry
(Mattos and et. al., 2015).
 Developing qualitative and quantitative data - For measuring the whole operational
performance of the Marriott hotel so this is required for staff member is to collect and
develop different qualitative as well as quantitative data in order to conducting and
accomplishing the appraisal.

 Data analysis and evaluation - It is analyzed that there various qualitative and
quantitative method which help in collecting or gathering data and compare with
excepted performance.
 External comparison - such have been through are the internal comparison of the
enterprise. the extraneous comparing is needed and it is accompanying to match level of
employees in hotel can be set as the criterion for the extrinsic relation in which pricing,
service quality, etc are compare with mark concern.
4.2 Effectiveness and drawbacks of different qualitative and quantitative appraisal methods
In most of the cases, such assessment method are smoothly running of business on the
basis of sampling technique, which sometime it cannot taken as true execution judgment. For
instance, the service choice of products, knowledge of worker, quality of staff members are
reasoned as for the qualitative assessment method. These element are measure by different
questionnaire or interview through the unit meetings that can be implemented for broad
grouping. The primary criticism of the qualitative formulation is that the results comes from
investigation may not practical for large number of people. For example, products of Marriott
hotel seem to be delightful to the normal clients (Mattos and et. al., 2015).
4.3 Application of approaches appropriate for hospitality operation
After employing different formulation to the hospitality concern, it is very much hard to
regard the approach for the procedure of the hotel business that includes services or facilities
which are offering, occupation and improvement merchandising and also it will generate
requirement. For instance, in current time period, customers are activated as only the lodgment
facilities provided by them. Therefore, the services are increased by large value in addition to
this, services such as safari. Thus, they are focus on catering market which is also essential.
There are three leading concept that may create income and profit for the hotel sector such as in
house guest, non occupier and arranged grouping. Along with this, there are various kind of
methods or sources of need in hospitality industry such as Marriott hotel. They are having good
impression on developing good market demand. All such extra facilities can be planned for
further enlargement of business of Marriott hotel effectively.

CONCLUSION
From the above mentioned report, it can be analyzed that management of any business
concern that is related with satisfying the accommodation, drink, food for such people who are
away from their home. Along with this, there are various element through which need of the
customers differ from another. It is supported on various customer anticipation and their
particular duty or demand, the customer's profile of the hotel can be varied. In this case, strong
brand image regarding particular products and services of the Marriott hotel that can frame
positive point of view of the customers. opportunities are such which help business organization
that directly effect in enhancing sales income and profit whereas different constraints restricts the
business operations and its functions which can lead towards increasing the sales income and
revenue in better manner. In hospitality business, there are various types of pricing method
which are analyzed such as cost plus pricing, market orientation pricing, competition pricing, etc.

REFERENCES
Books and journals
Davis, B., Alcott, P. and Pantelidis, I.S., 2018. Food and beverage management. Routledge.
Dopson, L.R. and Hayes, D.K., 2015. Food and beverage cost control. John Wiley & Sons.
Mattos Jr, 2014. Method for managing orders and dispensing beverages. U.S. Patent 8,739,840.
Grekova, K., 2014. Extending environmental management beyond the firm boundaries: An
empirical study of Dutch food and beverage firms. International Journal of Production
Economics. 152. pp.174-187.
Valta, K., 2015. Overview of water usage and wastewater management in the food and beverage
industry. Desalination and Water Treatment. 53(12). pp.3335-3347.
Pizzuti, T. and et. al., 2014. Food Track & Trace ontology for helping the food traceability
control. Journal of Food Engineering. 120. pp.17-30.
Wood, R.C., 2018. Strategic questions in food and beverage management. Routledge.
Berryman, P. ed., 2014. Advances in Food and Beverage Labelling: Information and
Regulations. Elsevier.
Taoukis, P. and Tsironi, T., 2016. Smart packaging for monitoring and managing food and
beverage shelf life. In The Stability and Shelf Life of Food (Second Edition) (pp. 141-
168).
Mader, M.M. and et. al., 2015. Managing patron servicing resources within a venue. U.S. Patent
Application 14/215,048.
Pillai, S. and Shayanfar, S. eds., 2014. Electron beam pasteurization and complementary food
processing technologies. Elsevier.
Mattos Jr. and et. al., 2015. Method for managing orders and dispensing beverages. U.S. Patent
9,067,775.