Hospitality Product and Service Assignment

HOM

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Description on nature of hospitality product and service. ...................................................3
1.2 Define evaluation on different influences that affects the patterns of th demand within the
hospitality operations. ................................................................................................................4
1.3 Compare customer profiles and their differ expectation and requirements. ........................4
1.4 Define factors affecting average spending power in hospitality business............................5
2.1 Description on evaluation of stages in product and service development applied in
hospitality operation. ..................................................................................................................6
2.2 Explain the features that contribute towards the customer perception of product and
service. .......................................................................................................................................7
2.3 Define the opportunities and constraints affecting the product and service development
within hospitality environment. .................................................................................................7
2.4 Description on different merchandising opportunities for product and services of
hospitality....................................................................................................................................8
TASK 2 ...........................................................................................................................................8
3.1 Description on differ methods of pricing taking into account in addition of pricing
consideration. .............................................................................................................................8
3.2 Define the access of factors that affects revenue generation and profitability. ....................9
4.1 Description on the range of performance measures and appraisal techniques of hospitality
operations. ................................................................................................................................10
4.2 Explain the usefulness and limitation of various quantitative and qualitative appraisal
technique. .................................................................................................................................10
4.3 Define approaches to business analysis, evaluation, planning appropriate to hospitality
operations and making proposal for actions. ............................................................................11
CONCLUSION..............................................................................................................................11

INTRODUCTION
The term hotel operation management refers to wide area of business skills that is
inclusive of wide range of areas within multifaceted industry. This term should be inclusive of
desk management, housekeeping, operational services, food and beverage management and other
things relates top human resource planning.
Operational function in hospitality plays a systematic role in terms to manage every thing
in an organized manner. Thus, present report is based on Hotel Hilton UK. This is global leading
enterprise and perform its services in better and efficient manner. In addition to this, it helps to
analyse role of hospitality product and services, differed influence that can attract affecting
patterns of demand within hospitality operations and strategies so that proper solution towards
hospitality business can able to be taken. Furthermore, main aim is to compare customer profiles
and differing expectation and requirement as per provisions of hospitality.
TASK 1
1.1 Description on nature of hospitality product and service.
The hospitality industry provides effective and efficient services to customer as per
needs and wants of customers. Thus, nature of hospitality product and services can be defined in
following manner as are-
 Perishable- The food and beverage cannot be perishable as compare to the other
products hospitality enterprise. This kind of product can get spoil soon.
 Tangible and intangible elements- The one of the crucial aspect of service quality of
hotel business has two aspects that is strength and weakness. Thus, the tangible service
can be interior and exterior design of hotel, the good and better conditions and this all
things are helpful in terms to attract the visitors.
 Room division- The room has to be alloyed to person as per need and demand of
customer. It comprises of departments and personal essentials to provide effective
services to guest to stay in hotel. In addition to it, room helps to generate more
profitability than other revenue. It is one of generic term that is used by hospitality
industry to unite coordinated efforts of front office.
 Food and beverage- The food and beverage is also one of essential area of hospitality
department and better food facilities always attract customer’s to do things in proper and

efficient manner. This service can be broadly define as process of preparing, presenting
and serving food and beverage to customers.
 Conference- It is place in hotel that provides a facility for formal meeting of people with
shared interest. At this place, meeting can be handle so that things can be organised in
better and effective manner.
 Banquet- It comes in all type of formats inclusive of buffets in which guest has option to
choose food as per need and demand of customers. It is style in which guest can serve
themselves.
1.2 Define evaluation on different influences that affects patterns of demand within hospitality
operations.
The hospitality operations is place where demand of customer are needed to be
specialized in terms to provide effective services. This is helpful in order to bring systematic
operations. Thus, differed influence affecting patterns of hospitality operation can be defined in
following manner as are-
 Seasonality- At time of peak season, operations of hospitality goes in systematic and
effective manner and hotel get overload booking. The seasonal changes attract demands
of customers.
 Time of day/week- The hospitality department should be legal with time restrictions. In
this, it can be said that timings are needed to be systematic so that things can be
performed in better and effective manner. In addition to it, this can be said that demand of
hotel of people get enhanced because during the weekends because at that time people
come with their families to spend some good time.
 Healthy living- It is responsibilities of hotel to provide effective services to customers.
The health surrounds attract lot of customer and then they visit for several numb er of
time in a day.
 Culture- The hotel culture can derive profits and creates loyalty but can only be possible
if they provide their staff effective and efficient services. The strong staff of hotel will
help to ensure functioning of hotel in systematic mode.
1.3 Compare customer profiles and their differing expectation and requirements.
To allot room to someone it is essential to compare feature and function-ability of the
product and services. With help of it, effective services can be allotted to customers. The

consumer profile is way of defining consumer categorically so that they can able to be grouped
for marketing and advertising purpose. It is essential to meet legal compliance. It has been
defined in the following manner as are- Preference- It is essential to prefer things effectively. With help of it, hotel staff can
attract customer to provide good services to people. The preference of staff depends over
product and services in market. Pricing consideration- The price is one of attractive parameters that helps customer to
provide his choice and preference towards product and service. The good services in
better quality will be effective to attract customer in better manner. Thus, it can be said
that there are three type of entities as are Food and beverage, Accommodation and Travel
and Tourism. In this, Hilton hotel has foremost preference to provide good
accommodation to the customers. The visitors mainly visit here to spend good time with
the people. Expectation and requirements- It is essential to provide better services in manner to full
fill expectation and requirement of customer in systematic approach. With help of
addressing need of customer’s they can attract number of customer in market. Under the
Hilton hotel, the number of customers comes and their demand are also varied from each
other. In addition to it, this can be said that demand is differential and customer use to get
service as per their expectations.
 Meal experience- The better and effective food will helps to satisfy hunger of customer.
Thus, good quality of food attract customers. Thus, it is essential to provide better
quality of services to customers. The standard of the meals of its customer is quite high.
There can be many customers like sportsmen and their team. In this case, hotel manager
should provide light menu to the customers.
1.4 Define factors affecting average spending power in hospitality business.
There are number of customers whose belong to different background. Thus, there are
many factors that defines average spending power in hospitality business. It has been presented
in below context manner as are-
 Income- Income of customer plays crucial role in terms to define choice and wants of
customers. In this, it can be said that income is term that provides flexibility to prefer

room and other facilities. If the income level is the higher then the average spending
power of the client can be upgraded.
 Status- In this, status define capability of per person to select thing in better and efficient
manner. It is also crucial factor that is based on average spending power of customer can
be improved. This also impact over the average spending power of the customers.
 Socio/culture Influences- In this, social and culture influence also helps to attract
customer in terms to be in effective and efficient manner. In addition to this, socio status
attract customer in terms to prefer things in better and efficient mode. This can also
influence the customer to have average spending power of the customers. It can be
understood with help of example as, in case of main festival customer is eager to spend
more than other festival or occasion.
 Economic situation- The economic situation define income and spending power of
customer. It will help to bring things in systematic manner. Moreover, income and
willingness of person can depend on economic situation of customer and that helps to
attract customer in effective and efficient manner.
2.1 Description on evaluation of stages in product and service development applied in hospitality
operation.
The stage in terms to provide effective services to customer are needed to be evaluated in
better and efficient manner. In the Hilton hotel, I have analysed and evaluate the related key
stages and this all are needed to be discussed effectively. Thus, there are following key stages
and it has been defined in following manner as are- Idea generation- It is initial stage and the idea of product development needed to be
tested. In addition to this, the viability of the idea along with the related new
opportunities and treats should be analysed. In this, it is responsibility of manager of
hotel to provide effective facilities so that customer can get attract towards working of
areas. With help of it, things can be performed in better manner.
 Idea screening- In this,, idea screening will be helpful in order to filter out things in
better and efficient manner. With help of it, one suitable idea of business can be selected.
In this level, demand of the products as well customer preferences are needed to b e
analysed.

 Market segmentation- In case of hotel Hilton, market segmentation is very crucial and it
is need to be done effectively. Hotel is taking the price initiatives and it attract the more
number of the customer in the market. Due to this, I put more consideration over the price
taking initiative or it is just the plan to differentiate it. Concept development and testing- The consideration specification such as technical
feasibility, product design and market potential services in effective and efficient
manner. In addition to provide better working facilities in effective and efficient manner. Strategic analysis- The ensuring ideas into business strategic plan and to functioning it in
better manner demand, cost, profit margin. In addition to it, things are needed to be in
effective manner so that effective strategical direction can be taken. Product development and testing- The commodities are needed to be tasted before
providing facility to customers. With help of it, Hilton manager can able to provide
effective services to customer. This kind of facilities attract person in efficient manner. Market testing- The trends and demand attract customer in order to provide efficient
services. products and services are needed to be tested in manner to provide quality
services to customer in effective and efficient manner.
 Commercialisation- In this, it can be said that determining price of product and services
will be helpful to finalising marketing plans in better manner. In addition to it, this can be
said that to give effective pricing to product helps customer's to attract them.
2.2 Explain features that contribute towards customer perception of product and service.
Customer perception will be beneficial in terms to provide selection to price of product.
The perception of customer can be defined in following manner as are-
 Brand image- The Hilton is a strong global leading brand in the market. Therefore, it is
essential to manage brand in the market in attractive manner. The reputation of firm
attract the buyers and this will help to faith on organisation.
 Nutrition and dietary requirements- The food requirement will be helpful for
customer in order to maintain nutrition and dietary requirements. In this, it can be said
that quality of food must be maintained in terms to provide efficient services.
 Availability of resources- The hotel Hilton should maintain resources in terms to
provide effective and well services to them. Thus, resources are needed to be available in
order to perform things in better and efficient manner.

 Style of service- The services must be given in unique manner. Thus, effective services
will be helpful in order to maintain brand image of entity. In addition to it, style of
service attract customer in broad aspect.
 Standardisation- The quality standards are needed to be maintained in better and
efficient manner. With help of maintaining it, this is possible to maintain strong brand
image in market.
2.3 Define opportunities and constraints affecting product and service development within
hospitality environment.
The environment of hospitality should be in effective manner and it is essential to
maintain brand image. With help of it, this is possible to maintain things in effective and efficient
manner. Thus, it has been defined in following manner as are-
 Opportunity- The hotel Hilton should take various initiatives in terms to compete with the
customer. The another thing is that hotel is planning to provide similar and larger types of
facilities under the new planning. This kind of things will be helpful in order to make the
better position in the market.
 Constraints- The one of the major constraints is limited to the accommodation facilities
and less facilities. In this, customer provides the extra service and attract the wide range
of the customers. This kind of thing can be typical to gain the competitive advantage.
2.4 Description on different merchandising opportunities for product and services of hospitality.
The globalisation impacts the lot on this kind of services. In this, people have to travel
more with the purpose of both business and recreation. In addition to it, there are number of the
hospitality business that gets many different merchandising opportunities over the types of the
business. Thus, it has been defined in the below presented manner as are-
 In maximum of cases, travellers expect more and high quality of the services and it is
based on respective purchasing power of the customers. This kind of business would have
more opportunity in terms to create more value with the premium charge.
 The economic conditions of the travellers, country or even the economic condition of the
traveller can be improved. This is helpful for hospitality business to give good
merchandising advantage.

TASK 2
3.1 Description on differ methods of pricing taking into account in addition of pricing
consideration.
In hospitality business, there are number of methods of pricing and this are needed to be
observed and these are cost plus pricing, competition based pricing and marketing orientation
pricing etc. Thus, in consideration of Hilton hotel there are two major methods and that has been
defined in following presented manner as are-
 Cost oriented pricing-This is one of simplest form of pricing and in it price is based on
cost of production. In addition to it, percentage profit is added to cost of production in
terms to determine price of selling. The cost oriented marketing is conducted to
understand competitor pricing.
 Market oriented pricing- The above pricing model may not be relevant to firm reputation
and brand image. In this way, one common decision regarding to it is need to be taken so
that things can be done effectively.
 Demand based pricing method- It is process in which price of product gets finalized as
per the demand in market. Thus, this kind of pricing can be found mostly in travel and
hospitality industry. Thus, demand of Hotel Hilton tends to get rise at the time of
holidays, school vacation and weekends. For instance- The quoted firm tends to charge
low price at time of low demand as compared to the period of high demand.
 Competition based pricing- It is method in which enterprise considers the price of
competitors product to set the price of own product in market. Under this, enterprise may
charge the lower, equal and high prices depends over the prices of its customers.
3.2 Define access of factors that affects revenue generation and profitability.
There are number of factors that are affecting profitability of hospitality business in order
to determine profitable conditions. There are number of factors and that has to defined in
following manner -
Appraisal of revenue
generation and profitability
Elements are to be considered Observations
Labor intensity 1. Amount of labour used
2. The amount of capital used
In hospitality business use of
capital is lower than use of

in order to bring systematic
operations.
labour.
Shelf life 1. The value of brand
image
2. Number of buyers
3. Degree of customer
satisfaction.
With help of taking initiatives
step in terms to new and good
product development plan
entity is able to sustain in
market for longer period.
The degree of customer
satisfaction are needed to be
enhanced.
Elasticity of demand The demand of commodities
price of demand.
In Hilton hotel, demand of
product is inelastic and that
means Chang in demand of
customer' s than change in
price of products.
standardization  Sanitary issues
 Royal customers
 Menu selection
The management of Hotel
Hilton should take initiatives
in terms to maintain higher
level of standard in menu
selection and other services.
In order to upgrading the revenue management capabilities there is crucial to
implementing the right technologies solution and have the integration of right data sources. It
also putting the right organizational resources in place and creating the revenue focused culture.
These are defined in following manner as-
Focus on data integration- The revenue management solutions works as to seamlessly integrate
the property management system. This is effective thing in order to incorporate the valuable data
stream from all point of sale.

Focus on data quality- The poor technical integration can result in some data discrepancies and
most of the data accuracy issue comes from human error. With the help of consistent process in
place that staff can follow to improvise the data accuracy.
Hire the right revenue manager- The role of revenue manager is not so crucial and revenue
managers are highest paid employees in hotel. With help of hiring the right revenue manager the
enterprise can able to perform their role in effective and efficient mode.
Sales and marketing department- In this, pricing recommendation and market insights
generated by revenue managers and this things are valuable across the multiple parts of
enterprise.
4.1 Description on range of performance measures and appraisal techniques of hospitality
operations.
In operational function, if Hilton, there are differed techniques to understand pros and
cons of total operational functions. Thus, there are differed appraisal technique that has needed
defined in following context as are-
 Quality management- In quality management process, it is essential to determine
overall services quality of hospitality of products. With help of quality products will
helps to attract the number of the customer in the market.
 Speed of delivery- The serving tine is that customer order are needed to be accomplished
at time and it is essential to provide speed up services so that customer can able to get
attract.
 Data analysis and evaluation- At this, it is essential to gather and collect data so that
services can be performed effectively. With help of proper evaluation things can be done
in proficient manner. It can be evaluated in the better manner with the framework of
qualitative and quantitative concept.
 External comparison- This all are the internal comparison of the businesses. In this term,
external comparison are needed. In addition to this, the related firm can be benchmark
for with help of improving things as pricing, service quality etc.
 Sales performance- The one of the essential technique is to measure the performance of
sales and increment in the profitability of the enterprise. It leads to enhance of the gross
and profit of Hilton.

4.2 Explain usefulness and limitation of various quantitative and qualitative appraisal technique.
There are number of appraisal techniques and this all are based on sample data. With
help of it, sometimes performance can be measured in true and in effective manner. In this, it can
be said that quality and service of commodities, attitude of employees and quality of employees
are to be considered as quantitative appraisal methods. These factors are needed to be addressed
by differed questionnaire and interview even though meetings. It can be understood with help of
example as are-
The hotel seems to be delicious and average customers. This does not mean that delicious
customer or even in same level can attract customer in huge context.
4.3 Define approaches to appropriate for hospitality operation.
In this, it can be said that there are differed approaches to hospitality business. This must
be very much typical to consider operations of hospitality business in effective manner. Thus,
facilities are to be offered, catering as well accommodated marketing all are effective in terms to
generate sources effectively. In addition to this, it can be stated that facilities are increased by
various lodging facilities applied to them. Therefore, there are number of the approaches that are
needed to consider for the operation of hospitality business. Thus, there are three major
categories that generates profits for the hospitality industry house guest, non residents and
organised groups. This all factors are good at building the good market demand. All the services
are needed to be proposed for further expansion of business of hotel Hilton.
CONCLUSION
Based on above report it can be concluded that Hospitality operation management is of
crucial aspect in terms to sustainable tourism and this helps to organise activities in effective
manner. In this report, business activities are depends over hotel Hilton. In this report various
things has been covered as are nature of hospitality product and service, approaches to business
analysis, evaluation, planning and appropriate hospitality operations. Lastly, there are number of
technique in relation to range of performance measures and appraisal techniques for hospitality
industry. In this method, differed method of pricing are needed to be considered in better and
efficient manner.

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