Strategic Planning and Revenue Management in Hospitality Industry

Running head: STRATEGIC PLANNING AND REVENUE MANAGEMENT
strategic planning and revenue management

STRATEGIC PLANNING AND REVENUE MANAGEMENT 1
Executive Summary:
Organizations working in hospitality sector afe required to frame an effective and competitive
strategic analysis methods for survival as they are orerating in an environment where both
investor and customer are demanding more form all organizations. For this purpose, a
hospitality organization should always include perfromace management functions and
activties in its strategic management policies. This report is based on perfromance
measurement methods and requiremnets of the food and beverage department of a worldwide
groou of hotel named as Hilton. The report summarizes some important information of the
departmnet that is collected grom authenticated sources and journal articles. The study of this
report provides an understanding to the reader about the need and importance of performance
management of food and beverage department in hospitality industry.

STRATEGIC PLANNING AND REVENUE MANAGEMENT 2
Table of Contents
Introduction:..........................................................................................................................................3
Food and Beverage Department Performance:......................................................................................3
Quality index of Hotel:......................................................................................................................3
Kitchen Labor Hours:........................................................................................................................4
Food Costs:........................................................................................................................................4
Best and Worst sales:.........................................................................................................................4
Public Awareness:.............................................................................................................................4
Staff Satisfaction:..............................................................................................................................4
Food and Beverages Department Key Priorities:...................................................................................5
Maintaining day to day operations:....................................................................................................5
Maintaining a clean and organized kitchen environment:..................................................................5
Beverage Control:..............................................................................................................................6
Cost Control and budgeting:..............................................................................................................6
Training to employees:......................................................................................................................6
Laws:.................................................................................................................................................6
Recommendations to relevant departments:..........................................................................................7
Conclusion:............................................................................................................................................7
References.............................................................................................................................................9

STRATEGIC PLANNING AND REVENUE MANAGEMENT 3
Introduction:
Strategic planning can be defined as a process of determining vision and mission of an
organization for the purpose of achieving goals and objectives in future. This process
includes creating and establishing a system to be followed by the company to achieve
predetermined goals. A company develops its strategic plan at the time of offering services to
employees. Without an effective strategic plan, it is not possible to accomplish the objectives
in the desired manner (Phillips & Moutinho, 2014).
This report includes the strategic planning along with its key indicators and execution
plan of Hilton Hotel. Hilton hotel manages its operations under Hotel Operation Tactics and
Strategy (HOTS) simulation. This simulation is based on a problem-solving exercise where
different departments and teams work together to frame and execute decisions (Pratt & Hahn,
2015). This report includes the key performance indicators of last three months with defining
the key responsibilities of a manager working in food and beverages department. Further it
includes some recommendations for the improvement in performance and eliminating issues
occurred in the past three months. In order to provide an overview of report, a conclusion has
been drawn on the bases of entire essence of the report (Esenyel & Mahafzah, 2016).
Food and Beverage Department Performance:
There are number of key performance indicators which facilitate Hilton group of
hotels to analyses and measure the performance of its food and beverage department. A key
performance indicator is a tool to measure the effectiveness and efficiency of the
organization. There are mainly two types of key performance indicators, Low-Level KPIs and
High-Level KPIs. Both of these types focus on different operations and process of the hotel
(Iveta, 2012). Hilton can measure and evaluate its KPIs with the help of balance score card
that includes vision and mission and focuses on the overall performance of an organization.
In the hospitality industry, main categories of a score card provides the management a
considerable feedback to improve the service and performance of a hotel (Srivastava &
Maitra, 2016). The review of the performance with the help of KPIs can be described as
follows:
Quality index of Hotel:
Quality index of hotel is a key performance indicator that facilitates Hilton to analyses
and evaluate the perceptions of customers about quality provides by the hotel.