Hilton Hotel: Operations, Revenue Management and Customer Expectation

This report provides an analysis of hospitality operations and revenue management within the context of the Hilton Hotel group. It examines the financial contribution of room services, pricing principles, and inventory control techniques used to maximize profitability. The report also addresses industry codes of conduct, legislation, and best practices affecting accommodation procedures. Furthermore, it identifies customer expectations from diverse markets and explores how Hilton meets these needs through quality management processes. The analysis covers value-based pricing, price structures, and price levels. Inventory control techniques such as understanding demand, knowing star products, setting stock levels, and introducing service level targets are also discussed. Various inventory control techniques like Economic Order Quantity, Minimum Order Quantity, and Safety Stock Inventory are mentioned for maintaining optimal stock levels. The study uses Hilton Hotel as a case study to illustrate these concepts in practice.

Hospitality operations
management

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
FINANCIAL CONTRIBUTION TO ROOM’S REVENUE..........................................................3
PRINCIPLES OF PRICING............................................................................................................4
INVENTORY CONTROL TECHNIQUES....................................................................................6
INDUSTRY CODES OF CONDUCT, LEGISLATION AND BEST PRACTICE DIRECTLY
AFFECT ACCOMMODATION PROCEDURES..........................................................................7
CUSTOMER EXPECTATIONS.....................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

EXECUTIVE SUMMARY
The report will illustrate the financial contribution of the room services to the revenue as well as
the pricing principles for increasing the profits of the company. Along with this, it will also
discuss the codes of conduct of the industry as well as the expectations of the consumers. Later
on, it will cover the customer segments for the organisation.
INTRODUCTION
The hospitality management operations includes the implementation of the resources,
equipments, materials as well as the technology. As the operation manager, they have to develop
as well as deliver the quality goods and the services to their customers according to their needs
and wants. It is not until when management is properly and hands that the entire organisation can
stand as a unique entity in terms of development as well as making its customer base (Cunill and
et.al, 2019). Since customer base is one of the important formulation for hospitality industry
therefore it is one of the major necessity that the operations management will have to be derived
and a statistic framework. The finances as well as the various departments are there in the
organisation will have to be arranged in such a manner that will help the organisation to stand
firm with its basic. The entire report will bring forth the hospitality industry as well as the
operations management that is in regard to hospitality industry. The organisation that is chosen
in this regard is the Hilton group of hotels. Hilton hotel is operating in United Kingdom and there
are number of the Hilton Hotels in the UK. The components that are contributing for the
operational management of this particular organisation are described in this report.
FINANCIAL CONTRIBUTION TO ROOM’S REVENUE
The Hilton Hotel's room services are designed in such a way that the visitors are much impressed
by this and this then attracts the large number of the visitors towards the hotel. The ancillary or
the premium services which highly contributes in increasing the revenue of the hotel are such as
the high speed Wi-Fi facility, extra facilities such as gym, yoga kits, cots, wines as well as it
provides the comfortable environment to the customers due to which they feel like they are
staying at home. It is not until when the entire space of the organisation is maintained at a rapid
level that they get to incorporate the profitable standard and will be able to stand firm with a
consistent basis. The capacity to move ahead with this particular aspect will rely upon how far
the investment is made upon various levels of development in the organisation (Morgan and

Pritchard, 2019). In the Hilton hotel most of the investment is made in order to design the rooms
as well as the compatibility that will have to be offered to people with respect to the rules. In
hospitality industry most of the criteria of profitable standards will be associated with the
maintenance of rooms as well as the revenue that is generated from the rooms. It is a fact that
accommodation plays a major role in identifying the standards of the organisation and that is
when the room generates a lot more revenue than any other prospect in the organisation. While
this is generating a lot of expenses the organisation at all levels of time focuses upon improving
its standard by developing a strategic approach as well as solutions to on profit. Every
organisation’s major aim is to provide people with the right amount of accommodation and the
right services possible. Feasibility is one of the important criteria that will have to be stressed or
born while dealing with the rooms because it is the rules that will generate revenue. The tourist
industry when linked with hospitality industry is said to be one of the criteria where the key
components as well as the competencies are being incorporated by the organisation at all levels.
The Hilton group brings in a lot of innovations as well as the financial contribution towards
developing the infrastructure of room. They believe the fact that these rules are essential in order
to attract customers and therefore the service that is oriented in bringing about the cleanliness of
room is maintained at all levels. This also brings a lot more improvements that are made to make
it count.
PRINCIPLES OF PRICING
Pricing strategies one of the consideration that will fall in regard to maintenance of hospitality
industry. The rooms and the infrastructure will hold the most of the finances that are designed in
the organisation. Pricing is an important speculation that will derive the customer base as well as
to differentiate it. In order to move ahead with the right amount of pricing strategy it is the
components that will have to be understood. Every component has a different financial strategy
and they will have to be endured (Lugosi, 2019). What is the organisation Hilton will first bring
about an approach towards analysing the fact that a room will have to be constituted with the
right amount of products and the services are to be stipulated in such a way that it will have to be
well furnished. While dealing with this a planning is oriented in order to bring forth the essential
components that are a part of occupying room. These are the furniture as well as the daily
products that are being used by customers around. By planning on the products and evaluation
and estimation can be made upon the expectancy of pricing strategy and that can improve the

approach towards a value based pricing strategy. There are certain pricing strategies as well as
the principal that are being incorporated to demonstrate the practices to profitability. Following
are the principles of a pricing policy that are deriving the standards of an organisation:
Domestic requirement: the items of domestic use in the room will have to be evaluated. Upon a
proper evaluation as well as the catering of products it is therefore the price that will have to be
entered upon. The various components that are a part of bringing about the domestic needs of
people and making them available is also one of the speculation and pricing strategy in a
hospitality industry.
Identifying need of customers: in hospitality industry it is a major consequence to go with the
customer demands as well as the ideologies (Ulker-Demirel and Ciftci, 2020). This is one of the
biggest target that is being placed by organisations everywhere and it is the only one that can
bring about enormous benefits. Identifying the customer demands it is also a variable entity that
will avoid misusing the finances that are separated for the organisational existence.
Avoiding wastage: one of the biggest speculation that is falling in regard to the pricing strategy
of a room is to avoid all unnecessary products as well as the items that are cost effective. This is
because upon avoiding this extra cost the right amount of services can be ensured to people and
only then the organisation can be known as a renowned one.
Technical implementations: the technical implementation is in the organisations such that when
people require the services at an instance they will be able to communicate over call to the
reception and the right amount of services will be gratified.
The first pricing principle is Value Based Pricing as it has been found that the pricing is formed
by the perceptions of the customers. For this the company has to deeply understand how does the
products of the company generates the value for the customers.
The second pricing principle is Price Structure as this facilitates the company in setting the
best possible prices for the customers to be offered to the each customer.
The third pricing principle is Price levels as this helps the company to establish the prices at the
customer segment level for maximising the profits of the organisation.
Using the above principles of the pricing will help the Hilton Hotel to maximise the
profits of the company by setting the effective prices for its customers.

INVENTORY CONTROL TECHNIQUES
Inventory control techniques are regarded to be one of those best practices that will bring an
Optimisation towards the use of stock that are in regard to the organisation. This is also an
efficient mechanism that will bring in stock Optimisation which is one of the important criteria
while dealing with supply chains as well as any other prospect of the organisation. Inventory
control will bring in a regulation that will initiate supply storage and also deals with the
distribution of stock. This is also recorded by one of the key function of management and in
supply chain management is one of the appropriate means of dealing with customer demand. The
organisation deals with the inventory technique that constitute the innovative measures that are
to be highlighted to derive customers.
Understand demand: it was necessary to understand the demand such that the techniques that are
to be oriented in regard to satisfying the market criteria can therefore be executed. It is the
personal setting of the organisation that will have to reflect over the forecasting model that will
provide accurate demand forecast (Ulker-Demirel and Ciftci, 2020). In order to deal with
accuracy it is first necessary to understand the demands on a scale of being the best because the
product life cycle can only be decided over a particular understanding and then Product life cycle
can be gratified. The Trends as well as the qualitative factors that are in regard to the
understanding of demand will have to be initiated such that equality output can be attained.
Knowing star products: it is important to know star product because an analysis can only be
initiated with respect to the products that are identified. Value of the business can be generated
with respect to star products and therefore this will have to be analysed and such that annual
consumption over star products can be valued. This can also be ABC classification where the
terms ABC are the least important inputs that are generated in order to deal with the value
oriented with inventory Optimisation software. The multidimensional item categorisation is also
regarded to be one of the simplest Framework that is scattered over services which are being
dealt by the star products.
Set stock level: there are certain control policies that are falling in regard to setting stock level
and these are also defining the right quantities that are good in inventory control mechanism.
This inventory control is necessary in order to deal with the rules of safety stock levels and the
parameters that are falling in regard to its. There are certain levels of consideration that are to be

made with respect to the setting that will be absolute items and therefore the negative impact can
be eradicated with respect to the excess stock exchange (Ulker-Demirel and Ciftci, 2020).
Introducing service level targets: the service level target will have to be initiated because the
probability of dealing with any circumstances will define the target. Therefore in order to
understand the customer criteria it is first necessary to optimise the stock with respect to service
level target and that will bring in demand towards suppliers. Points to remember will have to be
kept access such that are within a less command a capital can be generated.
Different inventory control techniques are as follows:
Economic Order Quantity: EOQ is the formula for calculating the inventory for deciding the
purchasing of the goods for the company.
Minimum Order Quantity: This is the smallest level of the inventory the retail business will
going to purchase for keeping the low costs.
Safety Stock Inventory: This is the extra inventory which is ordered as well as set aside in the
situation when the company does not have adequate for the replenishment.
INDUSTRY CODES OF CONDUCT, LEGISLATION AND BEST
PRACTICE DIRECTLY AFFECT ACCOMMODATION
PROCEDURES
The legislation regulatory requirements are said to be the immediate factors in the organisation
that will deal with the organisational upliftment. The ethical standards of the organisation will
have to be maintained at all levels such that the data that will have to be protected in the
organisation can therefore be maintained. For this there are several kinds of regulations that are
being brought forth in the organisation like that of the Data Protection Act 2003 which is to
safeguard all the data from getting into theft and hacking prospects. The children act will deal
with consequences that will fall in regard to bring about a terrific challenge towards child
personifications and the circumstances that are being dealt with children. The equality at 2010
big deal with certain circumstances that are in regard to employment activities. With regard to
the right amount of work on an equal basis have to be stipulated to both male and female. This
will be acting as discrimination barrier in the organization that is one of the essential company
and that will have to be there. Safeguarding vulnerable groups act deal with certain group that

are existing in the organization that are doomed to be less than the others that are working in the
organisation. Therefore this particular act will act as a shield to of people that are belonging to
vulnerable group. The education and skills will eventually deliver circumstances that are in
regard to providing better quality education to people said that they can get to incorporate the
standard supply which they can enhance through practices (Morgan and Pritchard, 2019). The
legislation guidelines will act as a code of conduct that will be essential in order to deal with the
consistent enforcement that is falling in regard to organisation. There are a list of procedures that
are built upon dealing with the simple tolerated means of the organisation and therefore these
will sometimes cross the line and act as diminishing factors in the code of conduct. Proper
behaviour is important in order to deal with the atrocities of the organisation and therefore these
legislation and regulatory requirements are a necessity in order to evolve as a peptide conception
that will help the organisation to grow in terms of growth.
CUSTOMER EXPECTATIONS
The hospitality industry is a wide sector that is composed of various challenges. Customers are
regarded to be the key components that are involved in this as a part of which the organisations
stress upon. Customers are regarded to be the sole components of the entire hospitality industry
and they are the base with which we organisations are moving ahead in terms of growth
prospects. There are certain reviews that are generated by customers that are important for the
organisation in order to amend change. Defining customer requirement as well as expectation is
the a probability for the organisation to stand unique in terms of approach towards customers
(Pizam and Tasci, 2019). This is one of the major necessity in the hospitality industry because
the customers are the revenue generators for the organisation. The customer segments for the
Hilton Hotels is the middle as well as senior aged people which is ranging between the age of
26-60 years having very high level of income and standards of living. Some of the customer
Expectations and that are mostly mandatory and are being derived by people around are as
follows:
Good customer service: customer service is one of the spectacular aspect in every organisation.
Customer service will help people to solve their queries as well as to get satisfied with the
approach of dealing with the circumstances. One of the first expectation from our customers side
is a good customer service from the organisation. There will be various speculation centre in
regard to pricing strategies and the accommodation that is being offered by the hotels. A good

customer service can help people to understand the feasibility of services and to get equipped
with the right amount of services that are scattered.
Affordable services: price of one of the important consideration that is falling in regard to the
organisations. It is not until when the pricing strategy is maintained on a sample basis that the
organisation can get to understand the various formulations are falling in regard to it. Customers
expect a good pricing strategy such that they can have affordable means of stay in the hotel. The
Hilton group focuses upon the pricing strategy to be one of the spectre that improve reliability of
customers. This is an important criteria because it is not until when the prices are evaluated at all
levels of time that they get to identify the standard of their use.
Food facility: most of the customers eventually move ahead with the right amount of food
services that are being associated with the organisation that they are staying in (Lee and et.al,
2019). Therefore the organisation will have to first focus upon the availability of food services
that are to be catered to people for the customers. This is important because accommodation
along with food is an important requirement that will have to be stressed upon and it is the only
revenue that can be generated upon a good term.
Transportation facility: transportation facility is regarded to be one of the finest criteria
because the hotel will have to be equipped in such a way that will have a good transportation
facility near by. Customers in order to reach the destination this is one of the feasible mode of
approach and this can also facilitate their stay in the hotel. For this reason the transportation
services will have to be initiated and will have to be developed at all levels of organisational
operations.
CONCLUSION
The entire report concludes upon highlighting the aspects of hospitality industry as well as the
operations management in the organisation. Through this report one can easily understand the
key criteria that is in regard to organisation. Depending upon the consequences the organisation
will move ahead with its operation policies and therefore they are demonstrated in this report.
The report brings forth financial contribution of the organisation in developing the rooms
revenue and also the production costs that are associated with the business. This will help to
identify the brief structure of finances that are stipulated in the organisation. The report will also
bring forth the principles of pricing and the products that are evaluated on a potential benefit.
The evaluation methods are that are in regard to optimise profitability are being depicted in this

report. The essence of industry as well as a code of conduct are derived in this report by
identifying the expectations of customers. This is necessary in order to move ahead with quality
management processes.

REFERENCES
Books and journals
Cunill and et.al, 2019. Thirty-fifth anniversary of the International Journal of Hospitality
Management: A bibliometric overview. International Journal of Hospitality Management.
78. pp.89-101.
Lee and et.al, 2019. Who influences college students’ career choices? An empirical study of
hospitality management students. Journal of Hospitality & Tourism Education. 31(2).
pp.74-86.
Lugosi, 2019. Deviance, deviant behaviour and hospitality management: Sources, forms and
drivers. Tourism Management. 74. pp.81-98.
Morgan and Pritchard, 2019. Gender Matters in Hospitality (invited paper for ‘luminaries’
special issue of International Journal of Hospitality Management). International Journal of
Hospitality Management. 76. pp.38-44.
Pizam and Tasci, 2019. Experienscape: expanding the concept of servicescape with a multi-
stakeholder and multi-disciplinary approach (invited paper for ‘luminaries’ special issue of
International Journal of Hospitality Management). International Journal of Hospitality
Management. 76. pp.25-37.
Ulker-Demirel and Ciftci, 2020. A systematic literature review of the theory of planned behavior
in tourism, leisure and hospitality management research. Journal of Hospitality and
Tourism Management. 43. pp.209-219.
Online
Hospitality industry: [Online]. Available through: < IT Impact on Tourism and Hospitality
Industry: Hilton Hotels. | Ivory Research >
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