Hospitality Management Studies: Assignment Details

The given assignment is related to hospitality management studies, specifically examining the hospitality industry's market competition, customer perception, and performance measurement methods. It highlights the importance of net profit methods in understanding occupancy rates and staff appraisal in hotels. The report also discusses product development processes and provides references to relevant literature.

Hospitality Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1 ..............................................................................................................................................1
AC1.1 Nature of Hilton hotel product and services ...................................................................1
AC1.2 various influences affecting demand pattern of Hilton hotel operation..........................2
AC1.3 consumer profile and their requirements or expectations in Hilton hotel ......................3
AC1.4 Average spending power of consumers in Hilton hotel..................................................3
AC2.1key stages in development of product or services of Hilton hotel operation...................4
AC2.2 characteristic that contribute towards consumers perception of goods ..........................4
AC2.3 Opportunities and restraints impacts the product and services of hotel..........................5
AC2.4 merchandising opportunity for Hilton hotel....................................................................5
Task 2...............................................................................................................................................6
AC3.1 methods of pricing and additional pricing consideration................................................6
AC3.2 factor that impacts the profitability of Hilton hotel.........................................................6
Task 3...............................................................................................................................................7
AC4.1 performance measures and appraisal techniques.............................................................7
AC4.2 quantitative and qualitative appraisal techniques uses in Hilton hotel............................8
AC4.3 various approaches to analysis Hilton operations............................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
Operation management refers to concerned area of management relating to controlling
and designing the process of manufacturing and also redesigning the operations of organisation
in the manufacturing process of product and services. Present study will be based on Hilton
hotel that provides full-service hotels across the globe. Study will explain the nature of Hilton
hotel product and services and different influences that is affecting the demand pattern within its
business operations. It will also describe the features that contribute towards the perception of
consumers of goods and services. Furthermore, it will describe opportunities and constraints that
is affecting the development of goods and services within Hilton hotel. In addition report will
critically evaluate various methods of pricing and additional pricing consideration used by
Hilton. Assignment will explain the factors that affects revenue generation and profitability of
Hilton operation.
Task 1
AC1.1 Nature of Hilton hotel product and services
what are products and services give a brief introduction.
Perishable: This services characteristics in hospitality sector that assist in marketing of goods
and services. It can not be stored for longer period of time. the customers can not experience the
same services. Perishable services irreversibly disappear as this services are successfully
delivered by service provider to services consumers. Examples of same are like food and
beverages product of business that involves coffee, catering services(perishable services
characteristics in hospitality industry,2018).
Tangible and intangible: Intangible services includes the services of hospitality industry that
cannot be touched, cannot be stored such as sales services avail by the consumers. Such as room
services of hotel. The customers can only experience and feel this kind of services. The tangible
services of hotel sector involves physical assets of hotel, food items.
Inseparable: It involves offering like production and manufacturing services and the experience
of customers. The customers interact with the manufacturer in order to get the benefit of
services. Because it is essential to provide services by services provider for timely deliver the
services to the consumers. The hotel cannot separate the services consumed by customers and
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services provider services in the course of production process. the inseparable services of hotel
include conferences and banqueting.
AC1.2 Various influences affecting demand pattern of Hilton hotel operation
There are various influencing factors that affects the demand pattern of the business
operations.
Such as seasonality, time of day/week, healthy living, cultural, regional and ethnic and economic
factor.
Seasonality factor: One of the main factor influencing the demanding pattern of hospitality
sector is weather and tourist season . During winters the prices of hotels are low and the level of
competition also rises. so they need to provide discounting offers to people in order to enhance
its revenues and gaining high competitive position in the market (Hakansson, 2015). This factor
affects the human resources practices. They need to adopt new effective strategies by considering
the seasonality factor. The company have an opportunity to generate high revenues at the time of
seasonality.
Time of day or week: Some customers stay for a week or some stays for a particular time in
hotel. So according to the consumers stay the demand pattern affects hospitality operational case
the weekly booking of rooms are high than day booking that means there are huge demand for
the hotel rooms. and the management have an opportunity to generate high income by offering
better quality room services to consumers.
Healthy living: The customers who have a healthy way of living and also believe in having
gourmet food from the luxury hotels this demanding pattern of high end way of living of person
affects the various offering of food and beverages of hotel (Liu and Wu, 2018.). The business
starts focusing more on people that comes for spending their holidays or for relaxing and be
healthy. For such customers the hotel offers gymnasium and spas services.
Cultural and ethnic influence: The demand for the hotel increased at the time of various
occasions such as Christmas, new year, Diwali, school holidays. The cultural factor includes
such as customer wants to provide their family joy of staying in luxury hotel. That affect the
operations of hospitality sectors.
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Economic influence: The customers book hotel room according to their budget. If the person
belongs to middle class family, he will book hotel as per his budget. and in case the relaxation is
more important for people they will book resort. And if the person is a corporate traveller he
will book business hotels. So in all three condition the demand for hospitality sector is affecting.
AC1.3 Consumer profile and their requirements or expectations in Hilton hotel
It is very essential for hotel to understand the segments of its customers and their
demands and the business wants to full fill the requirement of people. The segment of various
customers can be categorised on the basis of their expectations. In case of leisure travellers, they
will be having high spending power and interested in getting leisure activities such as comfort,
coming to attend particular cultural function in city. they will be having room at higher prices
and order high prices food and beverages and rooms (Grudin, 2017). leisure traveller will require
different facilities like entertainment, gym,spa as well as various room services- movie. In case
people is coming to the city for attending or conducting business meetings or workshops. they
will require rooms for meeting , conference centre with the availability of high internet speed and
projectors. they will book at a very low prices under their corporate account with the Hilton
hotel. in case the person is coming to attend conference. They will book individual room at cheap
rate under their corporate account. they may consider any average quality room or food and
beverage product.
AC1.4 Average spending power of consumers in Hilton hotel
The hospitality industry offers several products at different prices like food and
beverages that determines the average spending power of the people. The Average spending
power (ASP) needs to be high in case the firm is willing to generate high profit rates from its
customers. There are various factors that affects the ASP which are described as below:
Size of income: the spending power of person depends on their earnings. Person with higher
level of income will be having high spending power like rich people. And if person income is
low they will be having lower ASP(Squartini and et.al., 2017).
Status:A person with a higher status will be having ASP. In case the hotel is offering more
facilities to the people like spa, gym. Then the demand for availing those luxuries will rise by the
high status people. ASP of person will be low if he is having low status.
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Social and cultural: the social belonging and culture influences the demand of individuals in the
hotel. if a person believes in living high lifestyle then they will be having high ASP.
Economic situation: it is essential for Hilton hotel to determine the Average spending power of
customers particularly during season. person with low income will always looking for discounts
and offers during winters. people wit high income do not look for cash backs or discounts they
just want more comfort and relaxation in hotel. so they will be having high ASP.
AC2.1key stages in development of product or services of Hilton hotel operation
Give a brief introduction of the task
Idea generation: Hilton hotel conduct marketing research in order to identify the
requirements or expectations of consumers for different product and services. Business analyse
its customers and market for ensuring the demand for its rooms services in the hotel and creates
the availability of rooms according to identified facts and figures(Lim and et.al , 2018).
Idea screening: In this process the entity collects the ideas on the basis of similar goods in
marketplace. the hotel compare its offering with its competitors product and also analyse profile
of consumers for justifying the generated ideas.
Concept development and testing: At this stage hotel develop new product concept and analyse
expected cost , revenues and profits of construction that involves in constructing business by
conducting market research.
Business analysis: The analysation of revenues and expenditures assist in proper evaluation of
ideas and developing various product related concept.
Product development:during this stage of development company starts actual production of its
product and services. the production department starts making plan for producing goods and
marketing department starts distributing the goods(Liu and Wu, 2018).
Test marketing: company introduce a samples of its product in the market in order to know the
reactions of various people towards its product.
Commercialization and launch : consumers starts booking the hotel room and buying product
and services of Hilton hotel. departments continuously monitor the performance of its services.
the hotel advertise its offering in order to generate high demand for its goods(Hakansson, 2015).
by reviewing the efficiency of whole new product development process entity makes consistent
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improvement. After completing the assessment process concern introduce its product by setting
prices of its offering.
AC2.2 characteristic that contribute towards consumers perception of goods
The perception of customers gets influenced by various characteristics and features of
products and services like designing, layout, price of product, consumer services. when the
business come to know this perceptions of people along with theirs satisfaction and value of
money for them and interior decoration in the rooms ,first impression of the hotel among target
audience. Attractive features and designs of product attracts more consumers and influence them
to get variety of services. The employee working in hotel on the front end or back end should
always make sure the satisfaction level of the customers. Because services offered by the hotel
always remains in the minds of consumers (Squartini and et.al., 2017). The prices of enterprises
services also need to validate its offering. The effectiveness of product designing, layout and
various consumer services plays a very essential role in development of hospitality sector.
because it is the first step when people comes in contact with the business and that impression
always remain last forever in the person's minds.
AC2.3 Opportunities and restraints impacts the product and services of hotel
There are various opportunities and constraints that affects the growth of goods and
services of Hilton hotel such as availability of manpower, financial and physical resources. The
business needs high opportunity for launching and introducing any new product in the
marketplace that can decrease or increase the awareness of the brand among target audiences.
like recent trends in products of hotel has introduce like organic food concept. the business have
an opportunity to gain high market share by adding organic food in its menu card (Liu and Wu,
2018.). Such as organic vegetables and fruits utilization for making food that fashion has
increased in industry at faster rate. Brand also attracts its consumers by providing rooms for
various disabled persons with in the hotel. such as disabled friendly rooms and shower . that will
help business in increasing its brand image. The hospitality industry can also attract people by
choosing best location for its establishment and by giving addition services of spa, gym. but on
the other hand hotel also face some constraints- lack financial resources that can stop concern to
implement its plan of actions.
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AC2.4 Merchandising opportunity for Hilton hotel
Hilton hotel have various opportunities for its product and services like enhancing the
market share to its target audience. they must make sure that business is gaining high loyalty of
its consumers and making continuous improvement in the organisation offerings. Company can
open several stores of accessories that will help them in generating high revenue from its
operations (Hospitality management studies-food and beverages, 2018). The image and design of
restaurant, gym , spa plays a very important role in attracting consumers. An effective and
attractive designing of product and services will create an opportunity for hotel for enhancing its
productivity. The number of business travellers has also increased because of current economic
conditions. Hilton can avail high growth opportunity by giving its consumers following services
such as high access to internet,conference hall, superior mobile connectivity, rooms for
conducting meetings.
Task 2
AC3.1 methods of pricing and additional pricing consideration
Cost oriented pricing: the hospitality industry determines the price by adding profits to
the cost of manufacturing of its product and services. it is widely used by the retailing and
vintage form of determining prices. The main advantage of this pricing method is that hotel can
make sure that it has covered the basic cost of product.
Market oriented pricing: it includes the prices based on the competitor pricing strategy. it
is also known as strategic pricing. in this method company review the prices charged by its
competitor then determines the prices for its offerings on the basis of analysation. in the
hospitality sector it is very usual practice of setting prices of rooms and food or beverages as per
prices of similar hotel. but on of the big disadvantages is that hotel manager lose sight of its own
product pricing by considering competitors pricing strategy(Grudin, 2017).
Service charge: These pricing method is used by the hotel to cover its variable cost. This
cost is included by them in customer bill receipt for providing various staff services to people.
generally consumer have to pay for the services that they availed from the employees of hotel.
Cover charge: This price is charged by hotel as an entrance fee. it refers to the fixed
amount that is added to bills for providing various entertainment services.
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minimum charge: this refers to the lowest amount received by hotel to service invoice for
proving various services to persons. After evaluating each you have to choose one pricing system
an discuss how it is applicable in your organisation, and how are they applied
AC3.2 Factor that impacts the profitability of Hilton hotel
The pricing of product and services affects the profitability and revenue generation of
hotel. some factors are affecting business prices which are described as below:
Labour intensity: The hospitality industry is a labour intensive sector so any increase in labour
will directly affect revenue and profitability of hotel. the cost of firm will enhance if they use
large number of labour.
Shelf life: It is essential in hospitality industry that shelf life of goods is high. Because if the
product life cycle is short that means faster declination of product. That will impact on the
profitability of entity negatively.
Elasticity of demand: It impacts revenue generation of hotel. during the winter season, the
demand for cold rooms decreases and at the time of holidays the demand rises. That affects the
operations of firm negatively or positively.
Standardisation: The pre determined standards can impacts growth and revenue of business.
like already determined level of inputs. The company may face the problem of shortage of raw
material in order to achieve determined output.
Pricing and procurement: It includes selling of product and services of hotel at a lower prices
in order to promote the sales of company that helps in generating high income through sales.
such as brand offer package deals to peoples if they book room and spa package together then
the hotel will charge better prices and also provide them upgraded rooms. in case customers are
ready to pay extra for getting addition services like spa treatment and delightful food that will
increase the revenues of entity (Nicholls and Sward, 2015).
Task 3
AC4.1 Performance measures and appraisal techniques
What is performance measures and appraisal.
Developing quantitative and qualitative data: It is essential for the hospitality industry to
employ performance measures and appraisal of new product and services for the smooth
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functioning of various functional activities and for retaining its employees in the hotel.
company conducts surveys among its potential customers by giving them feedback form and
providing them various options to judge the services of hotel such as food and beverages, room
services housekeeping , spa, reception. Business also provides sheet to employees for self-
assessment in order to identify the key area for improvement and on the basis of their
recommendation management finds suitable solution for various problems (Zhang, Yang and
Yang, 2019).
External comparison: 360-degree feedback system is used to provide feedback to various
subordinates. Some external feedback is also taken by firm this assist in improving the
communication among employees and helps in achieving objectives and goals.
Net profit: The Hilton hotel adopt net profit method for measuring performance to know the
number of occupied rooms every month through its occupancy report to understand performance
of employees as well as its over all business. it assist in appraisal of staff.
AC4.2 quantitative and qualitative appraisal techniques uses in Hilton hotel.
Quantitative method is used to study in larger group of population. This research further
used by firm for conducting secondary analysis. Qualitative data is collecting through conducting
interviews and questionnaire but at the same time this method is more expensive for company.
business can not utilize that technique in large group of people. Hotel use 360 degree feedback
system for appraising its employees(Gibbs and et.al., 2018). It is two way communication
process between employer and employees and can be in qualitative or quantitative form. it assist
in appraising employer by taking feedback from various employees in the hotel. Hilton also use
financial report such as balance sheets, profit and loss statement in order to check effectiveness
of its quantitative and qualitative appraisal method.
AC4.3 various approaches to analysis Hilton operations
Hilton use SWOT and PESTLE approach analysis to evaluate and analyse the current
market situation and external environment of industry. company can make various strategies and
on the basis of applied methods. it assist business in several financial functions and also provides
a base for making plan of actions. This helps entity in identifying the area of improvement for
providing better experience to its consumers. Hilton also use financial report such as balance
sheets, profit and loss statement that aids improve the revenue generation of firm and helps in
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evaluating the new trends in market and run business in a profitable manner(Wlazlak and et.al.,
2018). In planning process concern implement all the recommendations after proper analysation
and evaluation. this planning process are of three standing plans,provisional objectives and goal
dependant strategies that involves budget, objectives, performance standards.
CONCLUSION
From the above study it can be concluded that several factors are influencing …..??? and
the demand pattern of Hilton hotel operation such as Seasonality factor , healthy living ,
culture and ethnic and economic influence. It has been identified in the report, During winters
the prices of hotel is low and the level of competition also rises. so they provides discounting
offers to people in order to enhance its revenues and gaining high competitive position in the
market. The perception of customers gets influenced by various characteristics of and features of
products and services like designing, layout, price of product, consumer services of the brand.
Hotel has adopted net profit method for measuring performance to know the number of
occupied rooms every month through its occupancy report to understand performance of
employees as well as its over all business. It assist in appraisal of staff.
REFERENCES
books and journals
Grudin, J., 2017. Obstacles to participatory design in large product development organizations. In
Participatory Design (pp. 99-119). CRC Press.
Hakansson, H., 2015. Industrial Technological Development (Routledge Revivals): A Network
Approach. Routledge.
Goldratt, E. M., 2017. Critical chain: A business novel. Routledge.
Bayus, B. L. and Rajagopalan, B., 2017. Exploring the Open Source Product Development
Bazaar. In Review of Marketing Research (pp. 78-94). Routledge.
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Goldratt, E. M., 2017. Critical chain: A business novel. Routledge.
Wlazlak, P. and et.al., 2018. Integration of Suppliers’ Workflows in the OEMs’ New Product
Development Process. Procedia Manufacturing. 25. pp.479-486.
Lim, M.D. And et.al , 2018. Diagnostic tools for soil-transmitted helminths control and
elimination programs: A pathway for diagnostic product development. PLoS
neglected tropical diseases. 12(3).s p.e0006213.
Nicholls, D. P. and Sward, A., 2015. A discontinuous Galerkin method for pricing American
options under the constant elasticity of variance model. Communications in
Computational Physics. 17(3). pp.761-778.
Liu, T. and Wu, D., 2018. Option Pricing Model with Stochastic Implied Volatility. Asian
Economic and Financial Review. 8(7). pp.925-946.
Zhang, S., Yang, H. and Yang, Y., 2019. A multiquadric quasi-interpolations method for CEV
option pricing model. Journal of Computational and Applied Mathematics. 347.
pp.1-11.
Squartini, T. and et.al., 2017. Enhanced capital-asset pricing model for the reconstruction of
bipartite financial networks. Physical Review E. 96(3). p.032315.
Gibbs, C. and et.al., 2018. Pricing in the sharing economy: a hedonic pricing model applied to
Airbnb listings. Journal of Travel & Tourism Marketing. 35(1). pp.46-56.
online
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perishable services characteristics in hospitality industry.2018.[online] Available
through:<http://infoanil.blogspot.com/2015/11/perishable-service-characteristic-
in.html>
Hospitality management studies-food and beverages.2018.[online]Available
through:<https://alison.com/course/hospitality-management-studies-food-and-
beverage-services>
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