Service Operation in Hospitality Industry: A Case Study on Excellence Hotel

This report discusses the importance of hotel revenue, prior studies on the topic, and strategies used by Excellence Hotel to increase sales and profits. It also includes a SWOT analysis and a reflection on the findings.

SERVICE
OPERATIONS

Contents
INTRODUCTION...........................................................................................................................3
1st Paragraph – Relevance: The importance of the hotel revenue....................................................3
2nd Paragraph – Theoretical Concept: Prior studies on the topic.....................................................4
3rd Paragraph – Your Game: The way that we will address this issue............................................4
ROUND 1: -...............................................................................................................................4
ROUND 2: -...............................................................................................................................5
ROUND 3: -...............................................................................................................................5
ROUND 4: -...............................................................................................................................5
4th Paragraph – Your findings:........................................................................................................5
PART 2............................................................................................................................................6
SWOT analysis: -......................................................................................................................6
PART 3............................................................................................................................................7
ROUND 1: -...............................................................................................................................7
ROUND 2: -...............................................................................................................................8
ROUND 3: -...............................................................................................................................8
FINAL ROUND: -.....................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
Books and journals....................................................................................................................11

INTRODUCTION
The hospitality industry is a very broad concept as it involves the services related to
lodging, event planning, food & beverages service, travel tourism and many more. The hotel
industry is the section which deals with guest lodgings and accommodation. It does not only
include hotels, but also various other forms of overnight accommodation which includes guest
houses, motels, inns and hostels (Zurich & Documentation, (2018)). The report is prepared on
Excellence which is a hotel which offers various services to the customers. The importance of
revenue for the hotel management along with practises followed by the company is discussed in
the report. The report also covers the Swot analysis which analyse the current situation of the
hotel. A reflection is also given which stresses on the finding and results of the analysis.
1st Paragraph – Relevance: The importance of the hotel revenue
In the first round, the hotel experienced a change of 206% which helped the organisation
in properly manage its business operations. The revenue in the second round saw a positive
change of 306% which allowed the owners of the hotel in anticipating the demand and optimise
the pricing and availability. It helped in achieving the best possible financial results. There was
406% changes in sales in the third round for the hotel which helped in buying new machineries
and equipments for providing customer's with best experience. The most important round for the
business was round 4 which saw highest change in revenues for the hotel of about 504%. The
Excellence hotel adopted various practises for increasing the sales and profit margins of the
business. The company used various promotional strategies such as offered discounts on the
bookings during the slow periods or off seasons. The organisation innovated its theme and
infrastructure which resulted in increased revenues and profits over the years. It also offered
early check-in and late check-out options to the guests which has also contributed towards
attraction of large number of customer's towards the hotel (Atasu, Corbett Huang and Toktay,
(2020)). The company also offered upgrading facility before the arrival of the guests in the hotel.
It shown positive results and also showed that the needs of the customer's in the market. The
employee's of the hotel are kept happy by the management by giving various incentives such as
bonuses, rewards and other monetary benefits. The hotel increases and improves the reviews
which help the business in properly addressing the issues which are faced by the guests during

the stay. Excellence hotel offered '2for1' meal rates which helped the business in maintaining its
position in the market. Another practice which the business followed was promotion of midweek
weddings in the hotel which attracted a large number of guests. This resulted in achievement of
objectives and targets of the business. The management of the hotel also focuses on enhancing
the revenues and profit by taking into consideration its employee's and customer's. Excellence
hotel also increased the quality of the products which are offered to the guests in the hotel
(West, (2020)).
2nd Paragraph – Theoretical Concept: Prior studies on the topic
The Excellence Hotel has performed prior studies on the topic of hotel revenue. It showed that
the hotel is not focusing on its practises for improving the revenues of the hotel. The strategies
and policies which the company has practised in the past are not giving benefits to the
organisation. The HRM of the hotel was not good which ultimately led to reduction in the sales
and profits in the business. The operation department of the Excellence hotel is very poor which
is creating issues like cleanliness problems, unproper attention of guests, poor management of
early reservations (Gao & Su, (2018)). The organisation has also not paid attention on fulfilling
the expectations of the customers properly. This has resulted in problems in the management of
the hotel. It has also been found in the previous researches that the hotel is not able to perform
well in the market due to the irregular cash flows.
3rd Paragraph – Your Game: The way that we will address this issue.
ROUND 1: -
In the first round, the objective of the business was to perform proper marketing of the business.
Excellence hotel wanted to promote its activities and hotels in order to establish its position in
the market and develop a strong base of customer's. This could be achieved by formulating
various strategies and policies for doing marketing. The issue which was faced by the
management of the organisation in this round was lack of employees in the marketing
department. There is scarcity of human resources as well as technology which is becoming a
challenge in the achievement of the objectives of the business.

ROUND 2: -
In this round, the company formulate its objectives by taking in consideration the last year issue
which was lack of workers in the organisation. The Excellence hotel wanted to develop hire fresh
talent and retain existing skilled employees. The organisation focused on acquiring individuals
which can contribute to the success of the business in the market. The hotel faced the issue of
proper Human Resource Management department within the company. This is the reason the
hotel is not able to run its business operations properly. The business is not able to achieve its
objective of this round due to the lack of proper human resources within the business.
ROUND 3: -
The objective which was decided to be achieved by the business was improve sales. The
Excellence hotel want to establish itself as a brand in the market. This can only be possible when
the revenues of the business increase and market share of the hotel also improve in the industry.
The issue which is being faced by organisation in achieving its objectives is poor training
structure. The employees are not properly trained which is the reason they are not able to satisfy
the needs of the guests. It makes a direct impact on the sales of the business in the market.
ROUND 4: -
this round, the target of the company was to increase the overall profit margins of the business.
This can be attained by making strong position in the market and forming a loyal customer base
in the market (He, Chen & Righter, (2020)). The issue which is arising in this round is lack of
marketing knowledge in the employees within the organisation. The workers do not have enough
experience and skills which are necessary in doing marketing of the Excellence hotel.
4th Paragraph – Your findings:
The simulation game which was performed on Excellence hotel showed that the company is not
able to increase its profits at a consistent rate. In the round 1, the profit of the hotel was
12,12,526 pounds which is very good in terms of first year. The company developed proper
marketing strategies in order to increase the sales and profits of the hotel. This resulted in
increase in sales and profits in the 2nd round. The revenues of the organisation experience a

growth of 306% and also the profits also rise. The next round witnessed an increase of 406% in
the sales which resulted in increased performance of the hotel in the market. The last round saw a
change in revenue of 504% and also experienced highest profit of 16,48,370 pounds. It has been
found that the strategies which are currently used by the businesses in its operations are
generating rewards for the hotel. The Excellence hotel should continue performing its activities
such as offering early check-in and late checkout, offering room upgradations and providing
various food and beverage options to the guests during the stay. It has been seen that from the
point, the hotel has started to focus on these strategies, its revenues and profits have increased
significantly. The customers are provided incentives for booking directly which enhances the
engagement of guests in the hotel. The main strategy which can be used by the business is
forming profitable partnerships with unique local organisation. The hotel must concentrate on
investing its resources in right places with the help of property management software. The
business show aim at targeting the customer base which can result in increased revenues and
profits of the hotel. The discount should also be provided by the hotels to the guests which can
result in achievement of objectives and targets of the business. The focus should be on providing
best quality experience to the customer which can create significant changes in the business
operations of the company (McManus, Winroth & Angelis, (2019)). The most unique technology
should be used in the hotel for properly managing the work.
PART 2
SWOT analysis: -
This is basically a strategic planning or management technique which are used by the
organization in order to identify its strengths as well as opportunities which are present in front
of them. Along with this, through this analysis the management of the firm also identify its
weakness and threats which are faced by them. In relation to the selected hotel this analysis has
been discussed below: -
STRENGHTS
 Provide safe atmosphere: -the
respective hotel provides all the
necessary facilities like bed,
washrooms, blanket and many more
WEAKNESSESS
 Expenses: - this is being considered as
the biggest weaknesses of the
Excellence hotel which not only affect
the functions of firm but also its profits.

which make the guest feel like home.
High profits: - The hotel industry is a very
profitable industry and this requires huge
investment to start. The Excellence hotel have
invested huge amount in innovation in
improving the customer’s experience
(Prayudha & Harsanto, (2020)) .
Expenses on daily routine items,
training of employees, advertising and
many more affect the company profits.
 Single brand strategy: - this is also the
biggest weakness of firm as the
respective firm only follow the single
strategy i.e., “company name
branding”. it is very important for them
to paid focus on the other strategies in
order to expand their business.
OPPORTUNITIES
 Uniqueness: - hotel industry is very
competitive in nature. If some unique
experiences are provided by the firm to
their customers, then this develop
opportunity to attract large base of
customers them.
 Online booking: - the Excellence hotel
have the opportunity to go online and
expand their business in the
international market.
THREATS
 Pandemic: - hospitality industry is the
most affected by the COVID 19
pandemic. The profits as well as sales
of the firm has been decreases due to
this.
 Competition: - Immense amount of
competition has been present in the
hospitality industry due to which the
domestic market share of the firm has
been affected (Park, Lee & Lim,
(2021)). It is very important for the
firm to develop effective strategies in
order to face the competition.
PART 3
ROUND 1: -
The objective of this round is to focus on the marketing techniques and implement in
proper manner in order to promote the brand in market. In order to implement this in proper
manner the management of the excellence company do the expenses of around 5000.00 € at the
domestic level. Due to this the company is able to earn profit of 1212526 €. In the round 1 the

sales price is around 250 € at domestic level and maintenance and renovation is 10000 €. The
issue which is faced by the firm in implementing the marketing strategies is the less numbers of
permanent employee. In this round the firm have only 2 permanent employees which have
knowledge about the hotel industry and market requirements. Due to this company face the
difficulty in attaining the objectives. To face this the company management allotted around
2000.00 € training budget for per person. According to me in this round Excellence hotel paid
focus on the integrated marketing concept to effectively communicate with the target audience
and coordinate all the aspects of marketing brand.
ROUND 2: -
After the completion of the round 1 it has been realised by the hotel management that they
face lots of problem in relation to the permanent workforce within the organisation. So, they
decided to increase the number of workers which is also become the objective of this round. But
the main problem which are arises in front of them is the implementing proper human resource
management strategies, because of the lees spend in the training programme of around 1500€.
The profit of the firm in this round is 1517254 and change in sales has been seen from 206% to
306 %. Along with this company has also decided to decrease the sales price from 250 to 200
which result in increase in the profit of round 2 in comparison to round 1 i.e., 1212526 €. In this
round the personnel salary per month was 1000 € at domestic level and 500 € at international
level. The objective of this round has been attained by increasing in the number of permanent
employees from 2 to 3 at domestic level. The management of the Excellence hotel has decided to
increase the training budget to 3000 € and appoint the professional HR to take the training
sessions of employees. According to me, focus has been paid by the company management on
the profitability marketing concept, due to which profits of the firm has increased.
ROUND 3: -
this round seems to be not good for the Excellence hotel because of the decrease in the
profits. The objective of this round is to increase the sales for firm. Different types of problems
have been faced by the firm in increasing the sales like behaviour of the consumer, preference of
the consumer and more. But the objective has attained and this is only because of increase in the
domestic price form 200 € to 450 € at domestic level. Percentage change in sales has been
increases form % 306 in round 2 to % 406 in round 3. The profit of the round 3 is 1319712 €.
The main reason behind decreasing in the profit for the firm is expenses done on the marketing

and branding which is 7000 € and 3000 € per month personnel salary. In this round the firm
management has spent around 1000 € on per person in their training because of increase in the
other expenses. But this not affect the company sales. Number of permanent employees has been
increases from 3 to 4 in this round and maintenance expense were 18750 €. According to me the
reason behind increasing the sales is that, company improves the customers experience by
focusing on the marketing concept of customer need. Modification is done by the firm in their
services as per the customer’s needs.
FINAL ROUND: -
the 4th round is being considered as the best round for the Excellence hotel among all the rounds.
The objective of this round is to improves the firm’s profits which shows a down fall in the
round 3. This set objective is achieved by the firm and in the final round company earned a profit
of 1648370 € which is highest among all the rounds. The firm is able to attain this objective by a
small decrease in the sales price from 450 € to 380 €. The decisions which are taken by the firm
management in improving the knowledge of employees is providing them the proper training
session. Percentage change in sales is % 504 and the promotional expenses done by the firm is
7000 €. In the final round the personnel salary at domestic level is 3000 € and 1500 € at
international level. According to me, in this round the firm management paid emphasis on the
marketing concept of target market, in which they focus on a particular set of groups who likes to
enjoy the services provided by the Excellence management. This improves the experience of
customers and attract the potential customers towards them.
CONCLUSION
From the above report it has been concluded that if a firm wants to develop a strong position in
the hotel industry, then it is very important for them to paid focus on their promotional and
marketing techniques used by them. This report concluded that in the first-round company
management paid focus on the promotional strategies in order to promote the brand in the
market. The integrated marketing concept used by them is not much effective for them. Along
with this, the firm also apply the different marketing concept like profitability marketing

concept, customer need concept, target market concept in the respective rounds. This report
concluded that the most appropriate marketing concept is target market concept for the firm. This
helps them in increasing their profits, sales, personnel income and most importantly this
improves the customer’s experience. This report also concluded the different types of issues
which are face by company management like issues related to human resource management,
training budget, number of permanent employees and many more. To overcome from all the
issues the firm implemented the various strategies like training and development strategy, target
market strategy, reduction in the expenses and sales price. All the strategies are effective and
helps in resolving the issues and attaining the objectives.

REFERENCES
Books and journals
Zurich, B. L. L., & Documentation, X. (2018). Service operations and management. Master of
Science in Engineering, 380.
Atasu, A., Corbett, C.J., Huang, X. and Toktay, L.B., (2020). Sustainable operations
management through the perspective of manufacturing & service operations
management. Manufacturing & service operations management, 22(1), pp.146-157.
West, N., (2020). MI6: British Secret Intelligence Service Operations, 1909–1945. Pen and
Sword.
Gao, F., & Su, X. (2018). Omnichannel service operations with online and offline self-order
technologies. Management Science, 64(8), 3595-3608.
He, Q. C., Chen, Y. J., & Righter, R. (2020). Learning with projection effects in service
operations systems. Production and Operations Management, 29(1), 90-100.
Prayudha, A. N., & Harsanto, B. (2020). Integration of service quality, benchmarking and
Ishikawa diagram in service operations. Jurnal Manajemen dan Pemasaran Jasa, 13(2),
151-166.
Park, J., Lee, B. K., & Lim, S. (2021). Quality-driven profitability analysis in service
operations. Journal of the Operational Research Society, 72(7), 1578-1590.
McManus, J., Winroth, M., & Angelis, J. (2019). Service operations management: A strategic
perspective. Bloomsbury Publishing.