Operations Management in Hospitality

This assignment delves into the operational aspects of the hospitality industry. It requires students to analyze various topics such as hotel efficiency, food and beverage management, customer relationship management (CRM), social media's impact on revenue management, and service design for experience-centric services in hotels. The provided resources include journal articles, online discussions, and a textbook on international hospitality management.

Rooms Division Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................2
1.3 Legal and statutory requirements that apply to rooms division operations..........................3
2.2 Key aspects of planning and management of the front of house area...................................3
2.3 Key operational issues affecting the effective management and business performance of
the front office area.....................................................................................................................4
3.2 The critical aspects of planning and management of the accommodation service function. 4
3.3 Key operational issues affecting the effective management and business performance of
the accommodation service function...........................................................................................5
4.1 Yield management activities to maximise occupancy and rooms revenue...........................5
4.2 Sales techniques that rooms division staff can use to promote and maximise revenue........6
4.3 Purpose and use of forecasting and statistical data within the rooms division referring to
the importance of the regression analysis...................................................................................7
4.4 Short explanation for the indicators calculated.....................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Room division and operation management deals in front office services which deals in
various activities which involves direct interaction with the customers. Staff involving in
department of room division and operation management manages room services and
housekeeping. This report contains several legal and statutory requirements which applies to
rooms division and operations of Hilton London. Hilton London provides luxurious
accommodation facilities to its guests or customers(Anderson and Xie, 2010). There are some
key factors which are also mentioned which may effect business performance of front office area
of Hilton London. Through a detailed discussion over the various issues related with front office
services various functions of this department can be analysed thoroughly.
1.3 Legal and statutory requirements that apply to rooms division operations
There are some legal and statutory requirement of rooms division department which
needs to be analysed so that they can be fulfilled in a proper way. Legal and statutory needs to be
follow effectively other wise it will defame the organisation. Hilton London has setup some
methods and criteria so that legal requirements of this sector will not be compromised. Some of
the legal and statutory requirements are mentioned below :
General areas
 There are some legal needs of labour force which are needed to be accomplished which
are related with their health and safety.
 Employees should not be harassed, so that they will not feel pressurised.
 Hotel management should manage its services in a way so that amenities like liquor,
tobacco and gaming can be provided to person who are not under aged.
 They require to contract law.
 They require to make a policy to take liability for loss of property and any injury to their
guests during the course of business with Hilton London.
 Hilton Hotel requires to follow rules and legislations related with intellectual property
rights, consumer law and rules and regulation related controlled prices.
Some specific legal and statuary requirements are here;
Health and safety act, 1974: In hospitality industry it is essential to keep all facilities and
services for customers, health and safety is must for clients. Most of the safety issues are occur in
wet floorings, room cleaning and misuse of electronic equipments. So it is essential for the

management to provide a proper training to their employees which can help to them to work
better in these conditions.
Fire safety act 2005: This is a most common threat for clients and employees in the hospitality
organisation so higher management has to use smoke detectors, fire alarms, fire exit and
automatic fire controlling systems.
2.2 Key aspects of planning and management of the front of house area
Front office functionality is to be manage in proper way so that they can provide better
services and information to their customers(Assaf, Barros and Josiassen, 2010 ). First impression
of hotel services and amenities creates an image in the mind of the guest. The key aspects of
planning and management of the front of house area are as follow :
 Design : Hotel and its design plays an important role in its success. As customers visit
hotel to accommodate a luxurious life. Hence they desires that the place where they
accommodate should have a better design with a luxurious look. Hotel Hilton London
and its design is very enchanting(Chon and Yu,2012). As the owners have invested a lot
in maintenance of the design of hotel premises. First impression of cited hotel should be
impressive so that customers visits it again and again.
 Image : Image of hotel can be created through various components which encompasses
in it. They require best location to set up their hotel premises with a good exterior and
interior design. Hotel Hilton London follows modern way to serve traditional and non
traditional amenities.
 Cleanliness : management needs to take care about cleanliness factor of hotel as this
promote a hygienic way to serve the guests.
The work of front office is not so limited and it is vast in nature. The front of house area have
several number of more obligations which have to fulfil by them as they are in direct relation
with user and have better knowledge about customer satisfaction and choices. In such relation,
the several other key aspects of planning and management of front of the house area are as
follow:
 Provide proper security facility to the user so that they get delight in effective service
delivery. Along with this, customer security is a major thing whether it related to theft or
with health and safety. Thus, management have to prepare an appropriate plan for this
consent.

 Use of new technology which aid in making customer support services more effective
and appropriate. As this is helpful in making the work adequate and user get satisfied in
more appropriate way.
 Health and safety is a major issues which get resolve by active participation of front
house or management. There are several laws regulated by government which have to
take in account by manager and have to employ them in hotel.
2.3 Key operational issues affecting the effective management and business performance of the
front office area
As discussed above that if design, image and cleanliness and other business
environmental factors creates a way to success for the business but if these factors are taken for
granted then this will create a hurdle in path of growth which cannot be crossed easily. Hence
management requires to make effective steps regarding key operational issues in order to achieve
growth and productivity. If the design of hotel premises of Hilton London is not attractive
enough to meet the requirement of its customers then they will loose their potential customers.
Front office staff of a hotel needs to give warm welcome to the new comers further they
needs to be very humble so as to provide information to guest very humbly(Davis and et. al.,
2013). As word of mouth can work both as a tool to get success and as a way to proceed towards
the massive destruction. Good behaviour with one customers leads to create better image in mind
of other guests. Hilton London and management provides better hospitality services to its guests
and its front office staff deals with the key issues which may impact organisation and proper
maintenance of these key factors assist the managerial team to attain goals and objective of Hotel
Hilton London. There are several number of issues are identified which are going to affect the
effective management and business performance of the front office area are as follow:
 Customer satisfaction: One of a major issue which faced by any organisation who deal in
service sector industry is user satisfaction. A perfect management is one in which all
issues of customer get resolve in an appropriate manner. Hilton hotel is an establish brand
and thus they are going to deal with various interest user. Managers and staff have to
provide quality services and satisfied their users in an appropriate manner otherwise it
will arise a issue for management.
 Increase in sales: Another major work which done by front office is to deliver quality
service and increase sales volume. It is a duty of front office manager to render quality

services to their user so that they can gain competitive advantage. If they failed in do so
then they have to suffer heavy financial crises and weakness.
These are several issues which faced by Hilton Hotel due to lack of effective management and
thus their business performance also get affected through this. Such thing is harmful for the
management for long term purpose if management will failed in anticipating them in an
appropriate manner.
3.2 The critical aspects of planning and management of the accommodation service function
Hilton hotel of London always works for the quality that they are giving to their
customers. Planning and management of accommodation works on some aspects through which
hotel can gain their target customers as well as satisfy consumers. Following are critically
examine aspects by management:
 Cleanliness: Cleanness in hospitality industry is very compulsory because it attracts
consumers and showing the hygienic environment of hotel . Hilton is one of the best hotel
in all over the London, so, they have to work more on this project(Hsieh and Lin,2010).
Tourist visit on that place again where they are not going to find a single spot.
Environmental methods are used to maintain standard but also includes the cleanliness
aspects of visitors. All the bedrooms have to be cleaned on daily basis.
 Maintenance: All the aspects of hotel are examine by the visitors very critically. It makes
the impression on them in both manner good or bad. They examine parking, services and
every tiny aspects. So, that impression is maintained by maintenance management. If
they are going to fail in this process hotel have to bear heavy loss. Maintenance have to
be maintained by them on regular basis by house keeping team and maintenance unit.
A perfect and appropriate planning management is must so that all issues which are taking place
in hospitality business context get resolve. Accommodation service function is a major thing in
which, managers have to make proper list about all rooms. According to that, accommodation
will going to available to each one of the guest. Along with this, maintain cleanliness in rooms
which signifies that management is too concern about hygiene of their users. This create a
positive image of business so that they can deal with every problem in an adequate manner.

3.3 Key operational issues affecting the effective management and business performance of the
accommodation service function
There are some key operational issues which may affect the management of Hilton
London and its operations(Langabeer II and Helton,2015). Investment in betterment of design is
one of the key operational issue which requires to manage effectively so that this can eliminate
chances of less productivity. Management needs work on every detail so as to build a fair image
in the mind of its customers. Every area needs to be manage equally so that impression over
guest can be made and better quality of services can be provided to them. For example if hotel is
serving best food and providing quality services but the design of rooms and hotel is not
attractive then this will affect the overall image of it.
They can hardly retain their customers if they wont deal with betterment of services
which is to be provided by them(Lewis and Brown, 2012). As Hotel Hilton London is a 5 star
hotel and customers desires some luxurious services from it hence front office department of
Hilton London should manage its services and its owners should manage in various sectors
which can fulfil the desires of their guests. Following are written several operational issues
which affect the effective management and business performance of Hilton hotel:
 Legal factor is a major issue because government changes their policies and laws
according to time. Hence, managers have to aware about them and work accordingly so
that this issues will not lead to affect business so much.
 Always get aware about technology which are presented in business environment world.
Thus, it will support in dealing with any situation in an adequate manner. Moreover, if
existing technology will used by management then their performance get affected
through this.
4.1 Yield management activities to maximise occupancy and rooms revenue
The success of a hotel lies within the sale of hotel rooms as this will increase the revenue
of Hotel Hilton London. Management of cited hotel can use various techniques in order to
improve the occupancy of its rooms. The technique to maximize the occupancy of rooms is to
sell right room to customers at right price. In modern period many other hotels set the tariff of
their hotel rooms with the help of various software. This is done to ensure that their tariffs are
not exceeding the limit which is decided by industry. Through such software management of

hotel can get accurate tariff rates which are updated and sufficient enough to make potential
revenue to meet all expenses and to secure a good profit margin.
They can also implement several policies in order to increase occupancy of their rooms.
They can allow their customers to cancel their booking but on such cancellation they can charge
some amount as cancellation charges if booking was for a luxurious accommodation which is
accommodated very rarely then if such booking has been cancelled by the guest then they may
charge a major part of booking amount(Lo, Stalcup and Lee,2010). These are some key aspects
which can work as a tool to maximize revenue through improving occupancy of hotel rooms.
4.2 Sales techniques that rooms division staff can use to promote and maximise revenue
Division staff of Hotel Hilton London can use various techniques so as to promote and
maximize the revenue of it. The very first step in order to maximize the revenue is to recruit the
staff who is aware of the services and techniques to deliver front office services. A skill
personnel can deliver better services to its customers hence in order to maximize revenue and
productivity the division staff of Hilton London needs to hire skilled personnels. So that they can
bring efficiency and affectivity.
 A skill full personnel of front office staff can negotiate with guest about price and
services provided by hotel so that he can deliver the best packages to guests as per their
needs and requirements which helps Hotel Hilton London to sustain a long term
relationship with their customers(Noone, McGuire and Rohlfs,2011). They can use
various techniques like bottom up, cross selling and top down etc. These techniques assist
an cited entity to increase its revenue.
 Up selling involves sell of more services which are desired by the guest. Hence for this
front office staff needs to show them other services which is provided by Hotel Hilton
London.
 Retaining customer or client data helps an entity to retain that customer.
 Managers have to tell more interesting stories about their values to the users. This aid
them in attracting more and more user which aid in increasing the yield and revenue.
 Make customer the hero of story so that they feel special. Users are the one who support
in increasing the sales and revenue. Thus, in every story make user a hero of that story by
manager so that they can maximise their sales.

All these approaches are helpful in maximise sales of Hilton Hotel so that they increase their
profitability as well as whole work get done effectively.
4.3 Purpose and use of forecasting and statistical data within the rooms division referring to the
importance of the regression analysis
Forecasting can be defined as a technique through which an organisation can take
decision about future activities and projects ion the basis past data or historical data. An entity
can analyse about the trends which may affect its process and can impact over its productivity.
Forecasting is very famous tool in hospitality industry which helps them to plan about their
future operations(Persson and Persson,2010).
Hilton London has some historical data which they utilize for forecasting. Forecasting
can be utilized by an entity to determine the success and failure of their projects. This will allow
them to take managerial decisions regarding the growth of entity and future marketing. They can
various strategies for business operations so as to maintain the process in a way which impact
over its productivity and profitability. Companies working in hospitality sector uses forecasting
which is divided in two categories statistical and judgemental. Statistical is further divided into
three categories i.e. Trend projection, Trend & seasonal and smoothing(Persson and
Persson,2010). On the other hand judgemental is also divided into three categories i.e. Expert
opinion, market surveys and delphi techniques.
There are various variables are identified in relation with increasing sales which is
defined as regression analysis which is used for estimating the relationship between different
variables. On the basis of statistical data, management become able to forecast all things in an
adequate manner. This will support in maximise yield and sales through which overall revenue
get maximise. Along with this, a perfect seasonal analysis is also must in which, managers have
to work according to season and identify various users for that.
4.4 Short explanation for the indicators calculated
Room Type Number of rooms
available
Rates Number of rooms
occupied/sold
Number of rooms
with double
occupancy
Standard 150 £250/Night 110 80
Luxury Suit 15 £375/Night 8 5

Rate of occupancy of Standard rooms : 118/165*100 = 71.51%
Rate of occupancy of Luxury suits : 85/165*100 = 51.51%
Double occupancy (Standard Rooms) : 80/110*100 = 72.72%
Double occupancy (Luxury suits) : 5/8*100 = 62.5%
Average Room Rate : £ 9950/165 = 60.3
 Total amount earned from the standard rooms is £27500 i.e. (£250*110) as double occupancy
was given to them on discretion hotel management hence no separate charges have been charged
from them.
 Total amount which is earned through luxury suits by Hotel Hilton London is £3000 i.e.
(£375*8)
As per the calculation, it get identified that standard room have more occupancy than luxury
room. This signifies that management have to show more concern towards their standard room
and their rates. As it is helpful in generating more and more profit or yield for Hilton hotel so
that they can improve their services.
CONCLUSION
In this above mentioned report it has been mentioned that how various techniques can be
used by front office staff of Hotel Hilton London so that they can increase their productivity and
efficiency. Various legal and statutory requirements which is required to meet by the front office
staff in order to maintain goodwill of hotel. Various functions and responsibilities of front office
and operational management staff of an entity has been discussed. Various sales techniques are
mentioned which can be used by room division staff to increase revenue and profitability.

REFERENCES
Books and Journals
Anderson, C. K. and Xie, X., 2010. Improving hospitality industry sales: Twenty-five years of
revenue management. Cornell Hospitality Quarterly. 51(1). pp.53-67.
Assaf, A., Barros, C. P. and Josiassen, A., 2010. Hotel efficiency: A bootstrapped metafrontier
approach. International Journal of Hospitality Management. 29(3). pp.468-475.
Chon, K. S. and Yu, L., 2012. The international hospitality business: Management and
operations. Routledge.
Davis, B., Lockwood, A., Pantelidis, I. and Alcott, P., 2013. Food and beverage management.
Routledge.
Hsieh, L. F. and Lin, L. H., 2010. A performance evaluation model for international tourist
hotels in Taiwan—An application of the relational network DEA. International Journal
of Hospitality Management. 29(1). pp.14-24.
Langabeer II, J. R. and Helton, J., 2015. Health care operations management. Jones & Bartlett
Publishers.
Lewis, M. A. and Brown, A. D., 2012. How different is professional service operations
management?. Journal of Operations Management. 30(1). pp.1-11.
Lo, A. S., Stalcup, L. D. and Lee, A., 2010. Customer relationship management for hotels in
Hong Kong. International Journal of Contemporary Hospitality Management. 22(2).
pp.139-159.
Noone, B. M., McGuire, K. A. and Rohlfs, K. V., 2011. Social media meets hotel revenue
management: Opportunities, issues and unanswered questions. Journal of Revenue and
Pricing Management.10(4). pp.293-305.
Persson, M. J. and Persson, J. A., 2010. Analysing management policies for operating room
planning using simulation. Health care management science. 13(2). pp.182-191.

Sirirak, S., Islam, N. and Ba Khang, D., 2011. Does ICT adoption enhance hotel performance?.
Journal of Hospitality and Tourism Technology. 2(1). pp.34-49.
Yi, P., George, S. K., Paul, J. A. and Lin, L., 2010. Hospital capacity planning for disaster
emergency management. Socio-Economic Planning Sciences. 44(3). pp.151-160.
Zomerdijk, L. G. and Voss, C. A., 2010. Service design for experience-centric services. Journal
of Service Research.13(1). pp.67-82.
Online
What are different sales techniques that rooms division staff can use to promote and maximise
revenue?. 2017. [online]. Available
Through :<https://www.quora.com/unanswered/What-are-different-sales-techniques-
that-rooms-division-staff-can-use-to-promote-and-maximise-revenue>. [Accessed on
11th March 2017]