Hospitality Operations Management Assignment PDF

HOSPITALITY
OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Nature of hospitality products and service areas...................................................................3
1.3 Compare customer profiles and their differing expectations and requirements in respect of
hospitality provision....................................................................................................................4
1.4 Factors affecting average spending power of customer........................................................5
TASK 2...........................................................................................................................................5
2.1 Evaluate the key stages in product and service development applied within a hospitality
operation......................................................................................................................................5
2.3 Opportunities and constraints affecting products and services in hospitality sector............7
Task 3..........................................................................................................................................9
3.1 Different methods of pricing.................................................................................................9
3.2 Assess the factors which affect revenue generation and profitability in hospitality
operations....................................................................................................................................9
TASK 4..........................................................................................................................................10
4.1 Applying performance measures and appraisal techniques to aspects of hospitality
operations..................................................................................................................................10
4.2 Qualitative and quantitative appraisal techniques and their uses and limitations...............10
AC4.3 Apply approaches to business analysis, evaluation and planning appropriate to
hospitality operation..................................................................................................................11
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality operation management refers to the activities that are carried out in various
fields of hotel industry. Jobs available in hospitality sector includes working in hotels, catering,
casinos, resorts and restaurants along with jobs that deals with visitors and tourist. One of the
important aspect in hospitality is the facilities and services they provide to their guests needs to
be perishable(Alexakis, 2011). This will helps that organisation to differentiate itself from rival
competitors. This present assignment is based on Holiday Inn which is a Britain owned
American hotel, situated in Denham, Buckinghamshire. This hotel has successfully maintained
its presence in approx 1150 locations worldwide. This report includes nature of products and
services which are offered in hospitality industry along with factors that affects pattern of
demand. Also, customer profiles are compared in respect with their demands. This report also
involve stages of new product or service development in hospitality. At last, constraints and
opportunities associated with hospitality are mentioned along with aspects like profit, revenue
generation, performance measures and appraisal techniques.
TASK 1
1.1 Nature of hospitality products and service areas.
A product is either a service or a commodity. It can be in virtual, physical, tangible or
cyber form. Each product is produced at some cost and sold at a particular price. Range of a
product usually depends upon quality and affording capability of targeted customers. To expand
their customer base, it is must for Holiday Inn to provide unique services and products to their
guests(Bartram and Dowling 2013). In reference with hospitality industry products can be
eatables, drinks and beverages. Nature associated with products and services of Holiday Inn is
mentioned beneath:
Nature of hospitality products and services is determined by various factors such as:
Inseparability: As per its meaning, products and services that are produced on site cannot
be separated and have to be consumed there itself.
Intangibility: Intangibility is a quality where goods and services cannot be touched
physically, they can only be felt. For example, meals after consumption and paid for guests do
not carry any tangible product with them.

Perishability: It is an important concept which says that services provided by hospitality
sector cannot be stored and kept by clients for future use. For example, an unused room cannot
be stored at present date and sold at any future date.
1.2 Different influences affecting pattern of demand in hospitality industry
Hospitality industry is playing most important part in making contribution in economy of
country(Bharwani and Butt 2012). It is one of world fastest growing industry with a ultimate
goal to keep their guest happy. There are some major factors mentioned below which affect
patterns of demand that have to taken care by Holiday inn management:
Seasonality: This factor plays very important role in determining behaviour of
consumers. Seasonality is characterised in Low, Green and High or peak period. Peak period
usually occur during festive period. Therefore it is very essential for Holiday inn owners to
understand the seasonality in every region to operate their services in best way and provide high
quality services.
Healthy living: This is one of the major tend which is rapidly increasing. Consumers
and tourist are more focused in having real quality food, positive nutrition, fresh and lees
processed food and beverages. Hence, it is necessary for Holiday inn to adopt new healthy
structure and includes healthy meals in their menu.
Economic factors: Economic factors include tax reform and other economic segments
like income level of consumers. If tax rates are high then it will automatically affects pricing
policy of industry(Causin and Ayoun 2011). Hence, holiday inn must ensure and take respective
measure in relation to this factor to ensure their growth.
1.3 Compare customer profiles and their differing expectations and requirements in respect of
hospitality provision.
A person spends money to gain services in accordance with its spending power. It differs
from person to person in according to their income groups. There are three types of income
groups.i.e. high, elite and medium. In this context, the target customers of Holiday Inn hotel are
generally elite class and high class because their services are very costly for peoples of medium
class. The only need of a moderate class people is a basic hotel which have a comfortable
location, healthy and safe environment. On the other hand, Holiday Inn hotel provides private