Hospitality Business Strategies and Management

This assignment provides a comprehensive overview of hospitality business strategies and management techniques used by organizations to attract customers and sustain long-term success. It covers various research studies on environmental management, food and beverage management, strategic management for tourism and events, career planning strategies, critical factors in food quality management, service research, and information technologies in hospitality. The assignment is suitable for students in the field of hospitality management or related fields.

Hospitality Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analyse Nature Of Hospitality Product And Service Area...................................................1
1.2 Evaluation of different influences that affect the pattern of demand in hospitality operation
.....................................................................................................................................................2
1.3 Comparison between customer profile and Their expect ion and requirements...................3
1.4 Factors affecting Average Spending Power (ASP) in Hospitality Business.........................4
2.1 Evaluation of key stages in product and service development.............................................4
2.2 Analysis of features that contribute towards the customers’ perception of products and
services........................................................................................................................................5
2.3 Opportunities and constraints that affect product and service development in hospitality
environment.................................................................................................................................6
2.4 Evaluation of Merchandising Opportunities for Hospitality Products and Services............6
TASK 3............................................................................................................................................7
3.1 Different methods of pricing for consideration of additional pricing...................................7
3.2 Factors affecting revenue generation and profitability in hospitality operations..................7
TASK 3............................................................................................................................................8
4.1 Range of performance measurement and appraisal techniques to individual aspects of
hospitality operations..................................................................................................................8
4.2 Usefulness and limitations of quantitative and qualitative appraisal techniques..................8
4.3 Approaches of business analysis, evaluation and planning appropriate to hospitality
operations....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality operations management is define as the work perform in the different
departments of hotel industry. It involves the relationship process between hotel manager and
visitors. It includes different area like resort, restaurants, casinos, and hotels. They generally
deals with tourists and visitors (Chan and Hsu, 2016). Hospitality is a broad concept which helps
in managing business activities and providing customers service and keeping financial records.
This report is based on Marriott Hotel which is a type of hospitality industry. It was founded in
1927 by Alice Marriott. Its headquarter is located in US. In this assessment there will be a
discussion about nature of hospitality products and service area with evaluation of pattern
affecting demand. Average spending power and key stages in products and service development
is discuss. Apart from this, evaluation of different merchandising opportunities for hospitality
products will discuss. At last, different methods of pricing and factors affecting revenue
generation and profitability will discuss.
TASK 1
1.1 Analyse Nature Of Hospitality Product And Service Area
Product refers to an item which is manufactured by hotels or resorts to satisfy the needs
of customers. Services refers to a activity of distribution and consumption of goods which is
produce by seller to buyer. Nature of products and services in Marriott Hotel can be determine as
follows:-
Perishable elements: Perishable elements or goods are refers to those products and
services which cannot be stored or collect for a long time period or future sale. For instance: food
and beverage and other types of similar goods are perishable in nature. These products can't be
stored for the purpose of sale in future. When foods is kept for long time then it become useless.
So, Marriott Hotel have to provide best services to their customers.
Inseparable Services: It refers to the manufacturing and consuming of services which are
not separable from provider of that service (Davis and et. al., 2018). It consider that products
services are produced and consumed at the same time in Marriott Hotel. For Instance: service of
food serving are provided by staff of hotel and consume by visitors at a same time.
Tangible or intangible elements: There are basically two types of products and services
in hospitality industry i.e. tangible and intangible. Tangible goods are those which can be seen

or touched to the visitors like furniture, foods etc. intangible goods are those which cant be
measure in quantity and weight. These goods are not seen or touched by client like brand name,
quality of goods, design etc.
Service Area of Marriott Hotel
Food and beverage: It is a service which is offered by the hotel manager to their clients.
There are different types of services in food and beverage sector such as cooking food, serving
foods, plate and buffet service etc. In this type of services, manager of Marriott Hotel play an
important role to attend the guest and handle their complaints regarding food and service (Evans,
2015).
Room Division: It is an important activity of hotel management. In this type of service
operation department of Marriott Hotel analyse the need of customers and provide them service
as per their requirements. They also take reservations and and handle the housekeeping services.
1.2 Evaluation of different influences that affect the pattern of demand in hospitality operation
There are various factors that affect the pattern of demand in hospitality operation which
are as follows:-
Time of the week: It is important for group of customers that refers to families and
couple. Generally, they prefer holiday and weekend for travelling in different areas. In Marriott
Hotel, there is a high demand of hotel rooms and services in weekend and other holidays.
Seasonality: Visitors are prefer to visit on a specific season that is best suitable for a
particular area. In hospitality industry, seasons and weather condition play an important role for
affecting demands of hotels. Seasons can be divided into three parts: high, green and low. These
are the influences that affects the pattern of demand in Marriott Hotel. In High season where
weather condition is in favour of visitors, demands of hotels become high.
Healthy living: Its is an important part which affect the pattern of demand. It refers to
those person who are more health conscious and live healthy life style as per their standard and
income level (Hertzman, Moreo and Wiener, 2015). If persons are more believe in healthy life
then they will choose that hotel which is more hygienic and serve healthy foods rather than junk
food. Demand of Marriott Hotel is highly affected with lifestyle of consumers.
Culture: It refers to the different groups of people who belief their social norms,
behaviour and values. Most of people are prefer to select that hotel for living that is similar to

their culture. It affect the demand of Marriott Hotel because when hotel follow and respect the
culture of society then it helps to increase demand and vice versa.
1.3 Comparison between customer profile and Their expect ion and requirements
There are different types of customers with different profiles and characteristics that
helps Marriott Hotel to analyse differentiate between their profiles and requirements.
Explanation of some are as follows:-
Customer profile Characteristics
Spending Power: There are different income
level of consumers such as low, medium and
high. These are identify their spending power
which make impact on their expectation and
requirements (Kafetzopoulos and Gotzamani,
2014).
Spending power of low income level customers
is low and they can't afford expenses of hotel
charges. Other than this, high income level
consumers can spend more amount on hotel
rooms and services. They select luxury hotel
with premium and best services and fulfil their
requirements.
Meal experience: It refers to the profile of
customers about meal experience in Marriott
Hotel.
This factor affect the need of customers. There
are different types of customers such as
vegetarian, non-vegetarian and health
conscious. It is a responsibility of manager of
Marriott Hotel to determine the need of every
customers and provide them meal as per their
requirements. It will give a positive experience
of meal to customers and enhance brand image
of hotel.
Pricing consideration: In price consideration,
Marriott Hotel focuses on customers
expectation and decide the price of their
products and services.
Regular customers of Marriott Hotel are
families and couple who want best services and
they do not consider cost of services. In that
case, hotel manager keep high prices of their
services and provide best service and quality
products to their clients (Kandampully and et.
al., 2014). It fill the requirement of customers

as well as hotel manager because they earn
more profit with high prices.
1.4 Factors affecting Average Spending Power (ASP) in Hospitality Business
Average spending power is states the ability of spending the amount of money by a
person after paying tax. It also refers to the amount that an individual have to buy goods and
services. There are some factors which affect average spending power of consumers in Marriott
Hotel. These are as follows:-
Size of income: Income level of a person is directly link with their average spending
power. If the income level of a person is high then its ASP will also high and it is beneficial for
Marriott Hotel to earn maximum profit from customers (Lashley, 2015).
Status: Average spending power of a customer is depends on their status in society. If a
person have royal status then their ASP is high and they can pay more amount in Marriott Hotel
for goods and services. It is another essential aspect based on which the ASP of the gusts in
enhanced. Royal clients need luxury services in hotels then it automatically raise their ASP.
Social or cultural effects: Social and cultural aspects also affect the average spending
power of clients. In case of any occasion or festival ASP of customers become high.
Economic situation: Economical condition of a person make a large impact on their
average spending power. If an income of a person is high then it make positive impact on
Marriott Hotel. Because people spend more amount on hotel services then hotel manager will
earn more profit.
2.1 Evaluation of key stages in product and service development
There are different stages in development of products and service which are applied by
Marriott Hotel for improve their service. These are as follows:-
Idea generation: The first stage of product and service development is idea generation in
which manager of Marriott Hotel generate innovative ideas and analysed those opportunities
which are helps to develop their services (Law, Buhalis and Cobanoglu, 2014).
Idea screening: In this stage, manager of Marriott Hotel select the best idea from above
generating ideas and conduct a research on market to analyse the response of that can be

determined in selecting best thought. Market research will helps to determine requirements of
customers regarding products and services.
Concept development and testing: In this step, Marriott Hotel identify customers needs
and develop their concept for innovation in products and services.
Business analysis: As per this step, operation manager of Marriott Hotel analyse
competitors strategy and their activities and produce better quality products and services with
cost minimisation (Osman, Johns and Lugosi, 2014).
Product development: Under this, Marriott Hotel develop a new product and service that
helps to attract more customers and business can sustain long run in future.
Test marketing: In this step of product development Marriott Hotel gather feedback from
their potential customers and analysing their experience they start to work on those aspects in
which organisation need to improve for develop their product and services.
Commercialisation and launch: This is the last step of development in products and
services. In this phase, goods and services of Marriott Hotel are ready for launch in market and
introduce to customers about their innovative services at marketplace.
2.2 Analysis of features that contribute towards the customers’ perception of products and
services
There are some features that helps maintain brand image of Marriott Hotel towards
customers' perception of goods and services. These are discussed as under:-
Brand image: It is an important feature that attract customers and make a positive image
in minds of customers. When Marriott Hotel provide better service to their customers then it
helps to attract more visitors and helps to build a brand image.
Nutrition and dietary requirement: When food menu of Marriott Hotel is healthy,
delicious and nutritious then it attract more customers to visit their place.
Availability of resources: This feature indicates the sufficient resources are available to
Marriott Hotel by which they can provide better service to their customers.
Style of the service: There are different styles of services In Marriott Hotel for men,
women, families and couple (Randhawa and et. al., 2016). A proper arrangement is done for
every types of customers. It leave a positive perception in the minds of visitors.

Space utilisation: It is an essential feature for a company to use their space for making a
better and attracting area of hotel which attract customers to visit that place and make positive
image for Marriott Hotel in hospitality industry.
2.3 Opportunities and constraints that affect product and service development in hospitality
environment
Opportunities refers to a set of situations that make possible to do something and get
result in way of growth and development. It helps to Marriott Hotel for improving their activities
and raising sales. On the other hand, there are obstacles arises in business performance that tend
to reduce profit. It is important for manager of Marriott Hotel to focus on opportunities and
develop their products and services (Riley, 2014).
Opportunities: Marriott Hotel is a five star hotel in UK so it is great possibility to have
large number of competitors. In that case, they have to make strategy to beat competition and
attract more customers by providing them better service. Manager of hotel also generate
innovative ideas to make their services much better than others in hospitality sector. They have
to make plan after analysing the different types of customers and their needs. They should focus
on their clients and get opportunity from them. They also have opportunity to provide different
services by proper arrangement for families and couple.
Constraints: One of the major restriction for Marriott Hotel is that they provide limited
service to their visitors whether their competitors do more efforts to attract customers and
provide more facilities to them. It is easy for Marriott Hotel to provide more facility to customers
but it difficult to beat competition who already provide great services to clients.
2.4 Evaluation of Merchandising Opportunities for Hospitality Products and Services
Merchandising refers to the promotion of goods and services which are available for sale
in market. It involves the determination of quantity and price of products and services, offering
discount coupons, improving market strategy and creating design of display (Wood, ed., 2015).
There are different merchandising opportunities for products and services of hospitality industry.
These are as follows:-
 Sometimes, visitors have no more idea about quality of services and products which are
purchase or rendered. In this case, Marriott Hotel have better opportunity to increase
value of their products and services and earn more profit.

 When economic condition of customers are increased then it ultimately helps an
organisation to earn more profit because when customer have more amount then they
consume quality products and can able to pay high prices.
TASK 3
3.1 Different methods of pricing for consideration of additional pricing
In hospitality organisation, it is important for a firm to impose accurate price for goods
and services that will offer to clients. There are different methods of pricing such as cost
oriented, service charge, market oriented, cover charge, minimum charge etc. but for Marriott
Hotel it is important to use a right pricing method to satisfy needs of customers.
Marriott Hotel
Methods of
pricing
Method used or
not
Remarks about how method is used
Market
oriented
pricing
Yes This pricing method is based on competitor pricing. In
this method, the prices are decided by Marriott Hotel
after analysing market demand and challengers prices.
Prices of products are high when market demand is high
and vice versa (Xu and Gursoy, 2015).
Cost oriented
pricing
No Under this pricing method, prices of products and
services are decided as per the cost of manufacturing. A
fixed percentage of profit is decided and then production
cost added in final pricing.
3.2 Factors affecting revenue generation and profitability in hospitality operations
There are different factors that affect profitability and income generation of Marriott
Hotel. Some are describe as follows:-
Factors Elements to be considered Observations
Labour Intensity Amount of capital and number
of workforce
In Marriott Hotel, uses of
labour is more than the uses of

capital.
Elasticity of demand Price and demand of a product. In Marriott Hotel, elasticity of
demand is inelastic when
clients are less than quantity of
production.
Shelf life Number of customers and
level of client satisfaction is a
main element which has to be
considered.
Customer satisfaction should
be high in compare to number
of consumers.
Above mentioned factors are affect the profitability of Marriott Hotel because if customer
is not satisfied with service of hotel then it make a negative impact on their brand image and
generation of income.
TASK 3
4.1 Range of performance measurement and appraisal techniques to individual aspects of
hospitality operations
Performance measurement and appraisal is a process of analysing and judging the
performance of employees by top manager of an organisation (Yang, Wan and Wu, 2015). There
are some techniques used by Marriott Hotel to determine performance of an individual which are
as follows:-
Quality management: In this technique manager of Marriott Hotel need to evaluate
overall quality goods and services as well as generate ideas for improve the quality.
Speed of delivery: This technique of performance appraisal, it has to be analyzed that
how fast the distribution process is done in an organisation. When they deliver products before
time then it make positive impact on their brand image.
Developing quantitative and qualitative data: This technique is helps to measure the
overall performance of hospitality business. For this, manager of Marriott Hotel have to collect
data about quality and quantity of goods and services. They collect feedback from customers,
and their clients which helps to improve their qualitative as well as quantitative services.

Qualitative data includes quality of service, customer satisfaction and reliability etc. whereas
quantitative data includes price of products, number of customers etc.
External comparison: Marriott Hotel can measure their performance with compare to
their competitors. It helps to improve performance of employees in order to beat competition.
4.2 Usefulness and limitations of quantitative and qualitative appraisal techniques
Qualitative Appraisal
It is a traditional method of performance measurement technique. It is based on different
qualities of a person like leadership, attitude, knowledge, judgment etc.
Quantitative Appraisal
It is a modern method of performance appraisal tools. This technique This is found a
judgment on performance of individual which is to be developed.
Generally, these methods of performance appraisal are depends on a sample data which is
not an actual measurement of performance of a person. It gather information from different
sources and provide a estimation of future outcome by evaluating performance of an organisation
(Yang and et. al., 2014). Quantitative appraisal is more appropriate because it evaluate
employees performance. Limitation of qualitative appraisal is that it is not free from personal
judgment of a person where it is not possible to get accurate data and proper evaluation of an
individual.
4.3 Approaches of business analysis, evaluation and planning appropriate to hospitality
operations
Business Analysis
It is an investigation of different business activities which are the causes of achieving
result and make effect on organisational goals and objectives.
Business Evaluation
It is an ongoing activity in a company in which manager of Marriott evaluate or judge the
performance of employees and other activities run in an organisation.
Business Planning
It refers to the strategy which is developed by the top manager of an organisation. They
make plan in order to achieve goals and objectives of a firm.
All these concepts are applied in performance of Marriott Hotel. There are different
activities performed by operation department such as providing accommodation, handle catering

services, create demand from different sources etc. For performing all these things it in necessary
to hire a business analyst who can analyse the market condition and competitors strategies and
make plan as per need of customers and then after evaluate the succession of failure of business
activities. Marriott Hotel have to apply those plan for action who give the best outcome and by
which hotel can achieve maximum profitability.
CONCLUSION
From the above mentioned project report it can be concluded that there are different types
of products and services areas in hospitality business which is important for growth and success
of an organisation. Different techniques are used by a firm to attract customers and sustain long
term in future. Different pricing strategies used by a hospitality business which are in favor of
customers and helps an organisation to earn more profit. Quantitative and qualitative are used to
collect accurate data of customers needs and their requirements. Company also develop new
products and services for the growth and success of an organisation.

REFERENCES
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