Analysis of Hospitality Operations Management: Bulgari Hotel

This report provides a comprehensive analysis of hospitality operations management, focusing on the Bulgari Hotel and Residences in London. The report begins with an introduction to operations management within the hospitality industry, highlighting the challenges faced by managers. Task 1 examines the nature of hospitality products and services, the factors influencing demand patterns, and the comparison of customer profiles, expectations, and spending power. Task 2 delves into product and service development, evaluating key stages, analyzing customer perceptions, and assessing opportunities and constraints. It also evaluates merchandising opportunities and pricing methods. Task 3 focuses on revenue generation, profitability, and performance measures. The report concludes with an overview of the findings and provides references for further study.

Hospitality Operations
Management (HOM)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysis nature of hospitality products and services areas...................................................1
1.2 Evaluate different influence affecting patters of demand in operations................................2
1.3 Comparing profiles of customers their expectations and requirement..................................2
1.4 Analysing factors affecting average spending power............................................................3
2.1 Evaluate key stages in product and services development applied.......................................4
2.2 Analysing features contributing towards customer’s perception of products and services...4
2.3 Assessing opportunities and constraints affecting product and service development...........5
2.4 Evaluating different merchandising opportunities for hospitality products and services......5
TASK 2............................................................................................................................................5
3.1 Evaluating different methods of pricing taking into account additional pricing
consideration................................................................................................................................5
3.2 Assessing factors affecting revenue generation and profitability..........................................6
TASK 3............................................................................................................................................6
4.1 Apply different performance measures and appraisal techniques to individual aspects
product and whole operations......................................................................................................6
4.2 Determining effectiveness of different qualitative and quantitative appraisal technique and
their application...........................................................................................................................7
4.3 Apply approaches to business analysis evaluation and planning appropriate to operations. 7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operations management within hospitality industry is growing with the increasing need
and demand of customers which is one of the difficulties task faced by managers (Bowie
Brookes and Mariussen, 2016). Transformation of any of business input like that of workers,
labours and technology with finished goods like services produced will be unique role of
operation management. Within any 5-star large hotel this will concern with transformation of
multiple layer of process like that of housekeeping, beverages, food and front office as well.
This particular report on hospitality operations management focus on one of the biggest
5-star hotel of UK that is Bulgari Hotel and Residences that is included within. This hotel was
opened in 2012 and is the most expensive hotels into London which is having total 85 rooms. All
factors that affect the pattern of demand within the hospitality industry like that of cultural, time
of day or week and seasonality will be discussed. Then further factors affecting average spending
power (ASP) in hospitality business will be included like that of size of income or social status.
TASK 1
1.1 Analysis nature of hospitality products and services areas
Hospitality industry is having one of the most important service which is giving exclusive
experience to customers who are coming to visit. While the products like food and beverages
need to be hygienic and healthy as well with keeping in mind freshness of ingredients that are
been used within (Xu and Gursoy, 2015). Other than these the nature of products and services
which Bulgari Hotel and Residences is giving to all its customers and clients are as follows:
Perishable- All the products or services of Bulgari Hotel and Residences will not be too much
durable like that of food and beverages which they are consuming. These will be very much
perishable as they need to be used as and when it is produced or manufactured if kept for longer
duration of time then it could be spoiled and rotten.
Tangible and intangible- There are two types which is tangible and intangible as all products of
Bulgari Hotel and Residences will be regarded to as tangible which could be seen and touched.
While on other hand services which is offered by Bulgari Hotel and Residences will be regarded
to as intangible as they could not be touched or seen they could only be felt.
Room division- This is the most effective and important parts of Bulgari Hotel and Residences
which includes dividing of all rooms and suits while the stay of customers (Styles, Schoenberger
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and Galvez-Martos, 2015). This is the most essential part which is generating huge amount of
profits and revenue with the joint efforts of housekeeping and front office departments as well.
Food and beverages- This involves the producing, cooking, serving and the payment of bills that
of food and beverages within hotel. Food is the most perishable and tangible product of Bulgari
Hotel and Residences which they must keep very good care of while cooking and serving them
to its customers.
1.2 Evaluate different influence affecting patters of demand in operations
Demand is that which refers to desire and willingness of consumer that he would be
paying for specified price for that product and services. While in context with hospitality
industry the demand of consumer is not the same throughout the year or at all days of week. Yet
there are various factors which affect the demand of customers varies from time to time and thus
effecting profits and revenue of Bulgari Hotel and Residences (Espino-Rodríguez and Gil-
Padilla, 2015). The factors like that of:
Time of day or week- This factor also influence the demand of customers of Bulgari Hotel and
Residences as the weekend time will be that at which most customer visit hotels rest day like
weekdays people are not having that much time for visiting hotels.
Healthy living- If any customer is very much concern about their health and prefer healthy living
would always search for those hotels which offer them proper sanitation facilities. Thus it would
also be impacting demand and preference of customers those who are visiting Bulgari Hotel and
Residences.
Ethnic influence- The background, culture and ethnicity of person and customer will also impact
their demand for living and visiting hotels.
Seasonality- This is the most impressive part of factors impacting demand of customers of
Bulgari Hotel and Residences (Xu and Gursoy, 2015). Like most of the tourist visit London
during May till mid of September and December other than this time whole year is non-seasonal
for hospitality industry as well.
Economic factors- Any type of economical or financial crisis of nation or global level would
also be impacting their demand for choosing and going to hotel.
1.3 Comparing profiles of customers their expectations and requirement
There is number of customers who are having different types of profiling that is based on
their background or level of income and then these would be influencing their expectation within
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the hospitality industry. But this will also be depending on the customer expectation and their
respective requirements profile of customers who are using or visiting Bulgari Hotel and
Residences (Sterman, Linderman and Bendoly, 2015). So based on this customer’s expectation
profile of customers of Bulgari Hotel and Residences will be prepared based on these following
points:
Spending power- This is the power of customers of the amount of money which they are been
about is spend on their hospitality industry. Spending power of customer will be defined to as
ability of customer in way of of paying for visiting and availing the services or using products of
hotel or hospitality industry as well.
Types of hospitality business- This is also another type of factor which is impacting customer’s
expectation that includes type of hospitality business including that of hotels, banqueting,
restaurants, bars and pubs. These would confirm that whether customers would like to visit the
hotels or not which is very much important.
Menu/accommodation range- These are very much important which will impact on customer’s
expectation and this will be one of the most unique for visitors and essential (Van der Wagen and
Goonetilleke, 2015). The menu or accommodations range are the services which Bulgari Hotel
and Residences will be having like the dishes and tastes of Bulgari Hotel and Residences.
1.4 Analysis of the factors having impact on spending ability
Clients are offered with a wide range of extensive and administrations value level, which
realizes with respect to business which normal spending power (ASP). This reveals the spending
power of the client through desire and need. There are diverse variables that change the level of
expenses of an individual:
Payment size: the spending and expenses powers possess by visitors of the client are determined
by ASP. (Sheehan, Grant and Garavan, 2018). With a higher wages level there is an increment in
the level of spending as with more money one can incur more expense.
Status: this is another factor on the basis of which spending power is determined. More overs
chances are that to ascertain a high social level one can aspects with administration and that can
lead to enhance normal spending power.
Social and social impacts some of the time, a broad scope of cultural constrains the spending
powers of an individual or precedents in case there develops an event of primary festival
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customers is eager to pay much than other occasion or events (Kandampully, Zhang and
Jaakkola, 2018).
Monetary status: this is the main factors effecting spending powers as with none or lesser
money. Obvious fact is that the person will reduce its cost and expenses and spends less amount
of money.
2.1 Evaluate of main steps in product and services evolution
At whatever point the Bulgari Hotel and Residences will start a planning for enhancement
of articles as an operational director, need to dissect and needs an assessment of main steps,
which are defined as follows:
Thought assessment: Possibility of item betterment should have been tested. The feasibility of
the idea as well as affiliated fresh possibility need to by analyzed.
Target explore: In the statistical surveying, the interest of the new items and the client
inclination should have been broke down.
Target division: In the event of starting an organization, marketing department is of key
importance. The reason being that client decides whether taking inn is enhancing the values or
simply separating the expenses. (Ali, Ringle and Ryu, 2018). In order to attract more clients the
cost needs to be decreased and there are more chances that sportsperson might prefers it over
families and couples.
Promoting and mindfulness: Some other grounds are to keep the extraordinary high spot
component for customer. In the event of promotion the centers must be influenced with a
mindfulness creativity and offering expansion.
2.2 Analysing characteristic contributing towards customer’s conceptualization of goods and
services
On the off chance that Bulgari Hotel and Residences needs to attract more customer, it v is
of the necessity to create a situation in the marketplace in respect of trade name picture, welfare
attribute so that consumer be aware about its products and other components that can aid
administration this are as follows:s
 Presenting a strong image of the brand and management of the lodge might have a
affirmative effect on the guests.
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 The brand image of hotels will be mostly contributing towards customers perception of
products and services which is the features of Bulgari Hotel and Residences (Lugosi and
Jameson, 2017). This is called the factor which defines that whether customer will visit or
not and will they avail the services and take the products or not.
 Style of service will also be impacting the perception of products and services for customers
who are very much influenced by these styles.
2.3 Assessing opportunities and constraints affecting product and service development
With talking into consideration of open doors to influence article's quality and
enhancement in administration certain concepts can be taken into account such as organization
area and its expansion along with work satisfaction. Area is one of the major content for
accommodation firms. (Jusoh, Khalifah and Sharifara, 2018). In the present time with a focus of
business on eco-inn, to enlighten it is very necessary such as ocean, backwoods and lakes. In
accommodation business capital is one of the most essential factor. For improvement of
administration access to every employee is considered essential as this is a tough job to do. For
benefits of clients works accessibility is considers at a vital constrain and loyalty from the
customers is instant the businesses in neighboring area.
2.4 Evaluating different merchandising opportunities for hospitality products and services
In order to create globalization in the economy is important for the financial analysts to
create a pattern that can speculate the cash and financial contribution in the world economy.
This will lead to the fact of development of recurrence in business ventures throughout the globe.
This might prove to be vital for accommodation business. With this the business explorers can
expect a high level of caliber for administration depending on the purchasing power. This will
create a situation of open door for the neighborliness businesses thorough which they can
present their articles and administration as well and this can boost their esteem as well. This not
only enhances the economy of the nation but also have a comparative impact on accommodation
industry.
TASK 2
3.1 Analysis of various pricing methods along with additional price component
in connection of universal markets four t factors that can be considered are deciding duration of
offer, choosing the correct methods for installment payment, determination of the estimates and
precise and final commendation. This can be considered as important in displaying an article or
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management in connection to universal market (Filimonau and Delysia, 2019). For the four
elements evaluations is advised as the best imperative that can be taken into account.
In the neighborliness business different strategies for evaluating can be accepted such as
estimation based on rivalry, value addition in costing, advertisement of organized evaluation,
estimation of Targets and esteem supported measure and so on.
The cost taken in opposition bases technique is based upon the comparable results of the
competitors and Cost-in addition estimation can be considered as most unambiguous method.
The firm may measuring system for generation of cost and already defined rates might assist in
deciding the cost to be offered.
3.2 Assessing factors affecting revenue generation and profitability
For the aftereffects of applied mathematics measurement for Setting up costs base on
target market can be differentiated as market that enhances value. In the scheme for target
valuing, calculation of offering cost might be done to form a specific earnings and rate of
interest for already decide peculiar volume creation. (Sheehan, Grant and Garavan, 2018).
Dependency of the cost on apparent appraisal is considered in estimation of esteem bases cost.
Advertising for the households can be direly linked with the income and revenues of the
organization. Hence, to discover the impact of various factors on cost. it is mandatory to lead
statistical survey. Chances are that the measuring is too high and there might be certain problems
that can occur in promoting the articles. This can lead to the act that firm might encounter
misfortune and incur losses.
Display of requests are the components of legitimate value assurance which competition and
the expenditure. To enter the universal market every country must match and suit with
organisation Presumably the valuing at universal market contrast with the residential market
may vary likewise. For global display, extra expenses need to be incurred in for generation and
this might be considered as a thoughtful action and this excessive expenses might be incurred
and theses include cost to clients in form of performance of duties, cost variances and application
of various taxes.
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TASK 3
4.1 Application of different performance measures and Appraisal techniques on single
commodity prospect and on business as a unit
Execution investigation can be well thought out as a strategy and performance of
employees and organisation both are evaluated (Altin, Koseoglu and Riasi, 2018). For
neighborliness organisation component considered are from of the business, nature of the
articles, administrations cost of and substance of time. The performance assessment can be
reasoned evaluation of overseeing impulsive carrier promotion. As per Woods the neighborliness
firms might use more than one method to review performance such as, realistic rating scale –
28%, story paper 37%, typically moored rating scales (BARS) – 42% and administration by the
goal – 48%.
In connection to the cordiality business, alternate strategies might incorporate execution
principles and coordinating the representatives' exhibitions with their employments. In event that
the assessment disregard in meeting objectives and targets, preparation and application of
thoughtful programs related with clients must be prepares and utilized. Such framework would
be a future situated one that uncovers the possibilities of representatives.
4.2 Determining effectiveness of different qualitative and quantitative appraisal technique and
their application
Under quantitative evaluation strategies elements to be considered, for a model quantitative
strategies of evaluation, are:- mind of representative, administrations, nature of work of
representatives. Surveys of all the components can be done by utilization of polls and meeting
further gathering of data (Jusoh, Khalifah and Sharifara, 2018). The main drawback of
subjective methodology is that it dose not take into consideration extensive level of people as
well as non distinctive authorities as compared to qualitative method.
Quantitative components such as magnitude of gains yielded, increased in revenues can be
measured by utilizing the necessary or supplementary data. In this technique, results can be
connected for mass of people. To raise the sufficiency of the assessment method mix of
investigation process must be utilized.
4.3 Application of business analysis evaluation approaches along with planning to operation
Application of different methodologies various angles related with lodging enterprises it
is elementary to regard the methodologies such as offered offices and administrations,
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promotion of settlements, foods to be provides which will showcase the requests sources. In prior
situation scenario was that inns used to provide their clients with just cabin offices and in later it
was enhanced with providing other services as well such as safari.
Each neighborliness firm ought to expect three noteworthy sorts of clients, for example,
occasion clients, business clients and different clients. In this way, the items and administrations
ought to be arranged to satisfy the requirements of that a wide range of clients. Concentrating on
the cooking market is likewise critical. There are three noteworthy classes that may create
benefit for the ventures are in-house visitors, non-inhabitants and the sorted out gatherings.
There are three noteworthy kinds of sources in accommodation industry in connection to the
interest (Sheehan, Grant and Garavan, 2018). Those are institutional, recreational and travel.
Those gatherings may encourage the age of good impression about the firm as far as building
market request.
In the arranging process three different composes were determined that was arranging
objective ward, onetime utilization and outstanding design. Inclusion in objective component are
destination, making plans and performance parameters. For one time utilization inclusions are
small level of objective planning. Design includes processing of applications.
CONCLUSION
An acknowledged for Sustainable tourism cab be taken as a task which provide work to
humans with negligent impact on the way of life and status. The main aim is to treat the public,
visitors and organizations as well positive concern. Analysis of the market may speculate that
worldwide tourism development would expend every year from 3%-6%. One of the fasted
developing and expanding industry is tourism and this puts big weights on bio decent variety
and indigenous societies which mights be helpful in mass tourism.
Reasonable tourism may reduces the scope of tourism form various perspective such as
sightseers 's view about the manner life is spent and normal environments, preserving the regular
possessions which add in intellectual perceptive and aids nearby networks to bargain
neighbourhood products.
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REFERENCES
Books and Journals:
Ali, F., Ringle, C.M. and Ryu, K., 2018. An assessment of the use of partial least squares
structural equation modeling (PLS-SEM) in hospitality research. International Journal of
Contemporary Hospitality Management, 30(1), pp.514-538.
Altin, M., Koseoglu, M.A. and Riasi, A., 2018. Performance measurement and management
research in the hospitality and tourism industry. International Journal of Contemporary
Hospitality Management, 30(2), pp.1172-1189.
Bowie, D., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Routledge.
Espino-Rodríguez, T.F. and Gil-Padilla, A.M., 2015. The structural and infrastructural decisions
of operations management in the hotel sector and their impact on organizational
performance. Tourism and Hospitality Research, 15(1), pp.3-18.
Filimonau, V. and Delysia, A., 2019. Food waste management in hospitality operations: A
critical review. Tourism Management, 71, pp.234-245.
Jusoh, A., Khalifah, Z. and Sharifara, A., 2018. Application of MCDM approach to evaluate the
critical success factors of total quality management in the hospitality industry. Journal of
Business Economics and Management, 19(2), pp.399-416.
Kandampully, J., Zhang, T. and Jaakkola, E., 2018. Customer experience management in
hospitality: A literature synthesis, new understanding and research agenda. International
Journal of Contemporary Hospitality Management, 30(1), pp.21-56.
Lugosi, P. and Jameson, S., 2017. Challenges in hospitality management education:
Perspectives from the United Kingdom. Journal of Hospitality and Tourism
Management, 31, pp.163-172.
Sheehan, M., Grant, K. and Garavan, T., 2018. Strategic talent management: A macro and
micro analysis of current issues in hospitality and tourism. Worldwide Hospitality and
Tourism Themes, 10(1), pp.28-41.
Sheehan, M., Grant, K. and Garavan, T., 2018. Strategic talent management: A macro and
micro analysis of current issues in hospitality and tourism. Worldwide Hospitality and
Tourism Themes, 10(1), pp.28-41.
Sterman, J., Linderman, K.W. and Bendoly, E., 2015. System dynamics perspectives and
modeling opportunities for research in operations management.
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Styles, D., Schoenberger, H. and Galvez-Martos, J.L., 2015. Water management in the
European hospitality sector: Best practice, performance benchmarks and improvement
potential. Tourism Management, 46, pp.187-202.
Van der Wagen, L. and Goonetilleke, A., 2015. Hospitality Management, Strategy and
Operations. Pearson Higher Education AU.
Xu, X. and Gursoy, D., 2015. A conceptual framework of sustainable hospitality supply chain
management. Journal of Hospitality Marketing & Management, 24(3), pp.229-259.
Xu, X. and Gursoy, D., 2015. Influence of sustainable hospitality supply chain management on
customers’ attitudes and behaviors. International journal of hospitality management, 49,
pp.105-116.
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