Comprehensive Report on Hospitality Operation Management at Hilton

This report provides a comprehensive analysis of hospitality operation management, focusing on the practices of Hilton Hotel. It begins by defining the nature of hospitality services and products, examining factors that influence customer demand, and comparing customer profiles with their expectations. The report then delves into the key stages of product and service development, highlighting factors that shape customer perception and exploring merchandising opportunities. It also examines pricing methods, revenue generation, and profitability factors. Furthermore, it covers performance measurement, appraisal techniques, and approaches to business analysis, evaluation, and planning within the hospitality context. The report offers insights into the challenges and opportunities within the industry, making it a valuable resource for students studying hospitality management.

HOSPITALITY OPERATION
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Nature of hospitality services and product field ...................................................................1
1.2 Types of influences affect pattern of customers demand.......................................................2
1.3 Comparison of customer profile and their differing expectation and requirement as per
Hilton provision...........................................................................................................................2
1.4 Factors affecting average spending power(ASP) in hospitality business............................3
2.1 key stages in development of product and services in Hilton hotel......................................4
2.2 Features contributing towards customer's perception of products and services..................5
2.3 Opportunities and constraints affecting product and service development in hospitality
environment ................................................................................................................................5
2.4 Different merchandising opportunities for hospitality products and services......................6
TASK 2............................................................................................................................................7
3.1 Different pricing methods used by Hilton hotel....................................................................7
3.2 Factors affecting revenue generation and profitability in hospitality organisation.............7
TASK 3............................................................................................................................................8
4.1 Range of performance measure and appraisal techniques.....................................................8
4.2 Benefits and limitation of various qualitative and quantitative appraisal techniques...........8
4.3 Approaches to business analysis , evaluation and planning .................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry is a wide category areas that provide their services such as theme
parks, travelling and accommodation facilities, event planning, in additional area with tourism
sector or organisations. It is a group of business enterprise that serve its facilities to customers.
Hospitality services play their role in making businesses more successful through serving good
facility. Food and beverage, motels, breakfast and bed are the areas to this industry. It works in
many fields like hotels, schools, resorts etc. Hilton resort and hotel is the most popular
organisation in business world, it was an American international hospitality industry that provide
their good products and services to people.
Operation management is very important part in hospitality business because they can
control all over the activity in production of products and services. This report is based on
hospitality operations management that explain the nature of hospitality services and products
areas and also describe the different influence that affect the structure of demand in this industry.
It describes the key stages in service and product developing and also apply business approaches.
TASK 1
1.1 Nature of hospitality services and product field
Hospitality enterprise is essential for Hotel Hilton to make growth in its business. This
sector provide their best services to customers that increase its success in market place. In hotel
business, food and beverages are their products. All the services and goods are very important in
this organisation. The nature of Hotel Hilton hospitality services and products are:
 Perishable: perishable food need to be store in cool place. Hilton Hotel is a broad
organisation that has connected with many customers. In its restaurant people demand
fresh foods and beverages like beans, meat, fish, poultry etc. so for this perishable
process help at the time of client demand. This type of food should be kept in
refrigerator at 4.4 C.
 Tangible and intangible: hotel business has many service qualities that satisfied
customers. In Hilton there are many products which is tangible like its exterior and
interior designs that can be tough by customers. On the other side reliability, assurance,
clients responsiveness etc. are the intangible services. Both of these natures are included
in hospitality sector of organisation.
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 Service areas of Hotel Hilton: in Hilton hotel their hospitality service areas are room
divisions for clients, food and beverage, banqueting system that help customers to set big
dinner or lunch parties, conference hall service to arrange their meetings with business
partners or other staff members etc. all these services in proper way attract people toward
their businesses.
1.2 Types of influences affect pattern of customers demand
In hotel business they do not have the same kind of customers demand in every year or a
day, it gets changed according to client needs and moods. Hotel Hilton hospitality operation
management department will arrange all the facilities according to customers demands in every
seasons. There are some influences factors that affect structure of needs are:
 Seasonality: it highly gets impact on demand patter. Organisation customers
requirements get changes as per as changes in weather environment. It is a short term
process of business activity. In winter or summer clients demand various types of things.
 Healthy living: some customers are very concern about their health. They eat only those
foods that are healthy and fat free.
 Time of day: third pattern is depend upon at the conditions and plans. Customers decide
their trips with families in a week or a day.
1.3 Comparison of customer profile and their differing expectation and requirement as per Hilton
provision
Customer profile refers to identifying potential customers and their needs to provide them
various products and services of organization. Customer profile can be compared with different
expectation and requirement by identified on the basis of following: Spending power :Purchasing power of customers refers to their ability of spending
money on different products and services. Purchasing power of customer is based on
different factors such as price of product , customer ability etc. Customer purchase those
products and services which are affordable by them and also fulfill their requirement.
Hilton hotel is providing its products and services such as accommodation, rooms, food
service etc. at affordable prices . Types of Hospitality businesses : There are different types of hospitality business which
consist of restaurants, travel agencies, hotels , bar and clubs, theme parks etc. Hilton
business is operating in hotel business under hospitality industry and also providing
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restaurant services to customers which assist in fulfilling the requirements of customers
to satisfy their wants. Menu/ Accommodation range : Accommodation services provided by Hilton hotel
consist of rooms facilities which include guest room, deluxe room and family room
which is designed to provide convenience to its customers and satisfy their demands by
providing them facilities according to their requirements (Xu and Gursoy, 2015). Menu
of Hilton hotel consist of wide range of food products which are available at different
price range and are consisted of high quality products to attract more customers towards
the organization.
 Expectations and requirements : Customers expectations and requirements assist the
organization in providing them those products and services which will give them high
level of satisfaction and experience that will helps the organization in increasing the
brand image and profitability (Ahmad, 2016). Hilton hotel provide products and services
according to the expectation and requirements of customers in order to satisfy the wants
and give them better experience.
1.4 Factors affecting average spending power(ASP) in hospitality business
Average spending power refers to purchasing power of customers on the basis of their
capability to pay for the products and services of the organization. There are various factors
which affect the spending power such as : Size of income : The income of customers affect the average spending power of them to
afford the particular product and services of the hospitality business. Size of income
affect the average spending power in Hilton hotel as customers will not be able to afford
the high prices products and services of Hilton if their income level is low. Customers
spending increases when there income level increases which assist in increasing
profitability of Hilton hotel. Social and cultural influences : Social and cultural influences affect the spending power
of consumer due to which profitability of organization is affected (Yang, Wan and Wu,
2015). Social and cultural factors include family, wealth ,religion, beliefs, language,
customs etc. that affect the purchasing power of customer. Hilton hotel is affected by
these factors as it will reduce the profitability of hotel if the customer's belief , trend or
preferences about the hotel is changed.
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 Economic situation : Changes in economic conditions also affect the spending power of
customers due to which their ability to pay for certain products can be increase or
decrease. This include inflation which result in decrease in consumer spending due to
increase in the prices of products and services of Hilton.
2.1 key stages in development of product and services in Hilton hotel.
There are various stages which are being followed by Hilton hotel for the development of
products and services that includes : for instance ,Hilton Hotel is going to launch spa services in
its hotel which will be complementary services for those guests which are staying in deluxe
rooms. Idea generation : The idea for the spa services will increase more customers for deluxe
room as this will attract customers to stay at deluxe room by providing customers with
spa services that will be part of their stay to provide their customer relaxation (King,
2017). This idea is generated by Hilton hotel by identifying the needs of its customers
which stay at hotel to enjoy their holidays. Idea screening : Idea screening refers to identify the profitability of launching this
services to organization. Hilton hotel has done screening of this idea by forecasting the
demand of customers to their hotel due to launching of this services in hotel more
customers will be attracted towards the hotel. Concept development and testing : After screening of the product to identify its
profitability another stage of laughing this services include concept development and
testing in which Hilton hotel take feedback from various customers by providing them
services to all the guest staying at hotel to identify their experiences to know about the
service effectiveness to achieve the business objectives.
 Marketing and Launching the service :After gathering feedback from customer by
providing them this service to identify its effectiveness and customer's experience Hilton
hotel will use various marketing strategies for promotion of this service in the market to
attract more customers towards the hotel (Baker and Magnini, 2016). Promotion of these
services will be done using various promotional tools such as advertisement in
newspaper, television etc. and advertising through use of social media sites such as
Instagram and Facebook to attract customers to hotel. And after that the product is
launched to provide this service to customers staying in deluxe rooms.
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2.2 Features contributing towards customer's perception of products and services.
Customer perception of products and services is based on various features which
includes: Brand image : customer perception depends upon the brand image of the organization. If
the brand image of the firm is good more customers are attracted towards the product and
services of that organization and if the brand image is not good few people have the idea
about that hotel due to which its fewer customers are attracted toward that product and
services. Hilton hotel is having strong brand image in the market due to which customers
from different countries prefer that hotel. Nutrition and dietary requirement : Customers are more attracted towards those
organizations which are providing products and services which are good for the health.
Nowadays , people are becoming health conscious and to meet the requirements of
customers Hilton hotel is providing food services according to the requirement of their
customers. It provides different kinds of food products which include nutrition and
dietary food as well which will satisfy the wants of their customers and will assist in
attracting more customers towards the brand. Style of service : The perception of customer is also based on service style which affect
the demand for product and services of the organization. Hilton hotel provide different
style of service to its customers according to their requirement in order to increase their
customer base and attract more customers towards the brand.
 Standardization and space utilization : It affects the customer's perception on the
products and services offered by the organization (Choo, Ling and Fernando, 2018). The
firm in order to attract customers must set stands for its products in the market and also
provide high quality products and services to customers in order to attract them towards
the products and services of organization. Hilton hotel in order to attract customer and
change the customer perception about the services at hotel is providing high quality
services and have the attractive infrastructure to attract people towards the hotel.
2.3 Opportunities and constraints affecting product and service development in hospitality
environment
Hilton hotel by developing spa service in the hotel for the guest staying in deluxe rooms which
will provide various opportunities and constraint for the hotel which will include
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Opportunities
 Hilton hotel by developing this service in its organization will be able to increase the
brand image of organization in the market by launching this services as it will attract
more customers towards the sanitation.
 Spa service will help be a great opportunity for Hilton hotel to increase their style of
service by providing different style which will help in increasing their customers and also
to satisfy their wants.
 This service will boost the profitability of Hilton hotel and thus will help in providing
competitive advantage to the firm.
 Spa service will require availability of resources such as financial and human resource
which will be required for developing that service.
Constraints
 It service will increase cost for the hotel as it will be provided as complementary service.
 Another constraint for developing this service will be related to the space required for
providing Spa service . This section will require more space and thus hotel will have to
incur cost for providing space for this service.
2.4 Different merchandising opportunities for hospitality products and services
Merchandising is the process through which the product and services of the organization
are promoted to increase their customer base. Merchandising helps in increasing sale of products
and services of organization (Leung, Xue and Bai, 2015). Merchandising helps in increasing
loyalty among customers by providing them high quality products and services top customers.
Merchandising includes designing products, setting prices etc.
There are various merchandising opportunities for Hilton hotel which assist in promoting
their products and services in the market to influence the customers to purchase their products
and services.
Hilton hotel In order to promote its products and services in order use social media sites
such as Instagram and Facebook to aware customers about their different product and services
which include room facilities which are the main product of Hilton hotel. It also uses different
methods such as advertising in television, newspaper to attract more customers to increase their
customer base. Also, merchandising opportunities for Hilton include online booking to attract
more customers through the use of technological tools.
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TASK 2
3.1 Different pricing methods used by Hilton hotel
Price of the product and services is determined by using various pricing strategies which
will helps in determining the price of product and services of the organization. Hilton hotel is
providing its various products and services such as accommodation facility, food products etc. Cost – oriented pricing : the cost of the product by using this pricing strategy is
determined by identifying the cost involved in providing that product and services by
adding a profit margin to the cost of product to determine the final price (Pitt and
et.al.,2016). Hilton hotel can use this method for determining the price of product by
identifying its cost involved in providing that product or service. Market – oriented pricing : This pricing method is based on price of product and
services offered by the competitors. Hilton hotel can use this pricing method by
identifying the price of products and services offered by its competitors and then
determining its products and service price.
 Minimum charge : According to this method price of the product and services are
provided at minimum prices in the market to attract more customer's towards the
organization(How to price your product: 5 common strategies, 2018). Hilton hotel can
use this pricing method to attract more customers by providing them products and
services by charging minimum prices.
Hilton uses cost – based pricing method in order to cover its expenses which are incurred
to provide that products and service to customers.
3.2 Factors affecting revenue generation and profitability in hospitality organisation
There are various factors which affect the revenue generation and profitability of Hilton
hotel which consist of : Labour intensity : it refers to requirement of human resource in the organization to
perform various activities of the organization(Ryan, 2015). Hilton hotel require more
workers to perform various activities such as workers for cleaning, attending guest
providing food etc. and thus if shortage of labor will negatively affect the operations of
Hilton hotel. Elasticity of demand : this factor also affect the profitability of Hilton hotel as demand of
the products and service depend on the price which is being offered for that product and
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service. If price of the products and service of Hilton is high the demand for that product
and services will be low and vice versa.
 Standardization : it also affects the profitability of the business as poor quality of
products and services provided to customers will reduce their customers and thus there
will be reduction in the profitability and revenue generation for Hilton hotel.
TASK 3
4.1 Range of performance measure and appraisal techniques
Performance measure and appraisal techniques are used in order to identify the
performance of the organization in the industry by providing various products and services.
Following are the performance measure and appraisal techniques applied to Hilton hotel :
 Quality management :Hilton hotel apply this performance appraisal and measurement
technique in order to provide customers with high quality products and services(Kang
and et.al., 2016). Hilton provide its customers with high quality room facilities and high
quality food products on the basis of which it measures the performance to identify its
ranking inn the industry.
 Customer service : Hilton hotel provide its guest with high customer service which assist
in measuring the performance of Hilton on the basis of its services provided to customer.
Hilton provide its customers with complementary services to provide better customer
services to its guest.
4.2 Benefits and limitation of various qualitative and quantitative appraisal techniques
Qualitative and quantitative appraisal techniques are used in bench-marking for
measuring the performance of organization.
Benefits
 These techniques help in improving product quality by setting benchmarks for the
performance to achieve those performance goals(Bowie and et.al., 2016). It helps Hilton
hotel in providing high quality products to customers. It helps in increasing profitability of organization. Qualitative and quantitative techniques
helps in increasing profitability of Hilton hotel.
Limitations
 These appraisal techniques are complicated when use practically.
 Qualitative and quantitative appraisal techniques are the time consuming process .
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4.3 Approaches to business analysis , evaluation and planning
Business analysis refers to identifying various problems which the organization is facing
in performing its various operations . Business analysis helps in changing the methods of
performing various operations in order to achieve the business goals. This approach is applied to
Hilton hotel to bring changes in the organization to provide better customer service by providing
high quality services to the customers.
Business evaluation refers to determining the economic value of business which include
all the operation conducted in the business(Van der Wagen and Goonetilleke, 2015). Business
evaluation helps in identifying various changes required by organization to improve its
performance and value(Definition of Business Evaluation, 2017). Hilton hotel perform business
evaluation in order to determine the value of its business in the market to improve various
operation to increase profitability.
Business planning is done b y organization to perform its various operations effectively
and efficiently to achieve the objective of the firm. Planning include formulating strategies etc
for achieving the goals. Hilton hotel in order to achieve the goals of organization formulate
various strategies and planning to attract customers.
CONCLUSION
From the above study it has concluded about Hospitality operation management which
has provided with nature of hospitality services and product field such as perishable, tangible and
intangible etc. Also, it has provided with factors affecting customers demand which has included
seasonality, time of day etc. furthermore, it has included customer profile which has included
spending power, types of hospitality business etc. It has also provided with factors affecting
average spending power that has included income size, social influence. Moreover, it has
included key stages in product and service development which has provided with idea generation
, screening, marketing and launching. It has also provided with different pricing methods such as
cost – oriented pricing, market oriented pricing etc. it has also provided with approaches to
business analysis, evaluation and planning.
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REFERENCES
Books and Journals
Ahmad, U., 2016. Application of multiple criteria decision making techniques in tourism and
hospitality industry: A systematic review. Transformations in Business & Economics.
15(1). pp.37.
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management. 28(8). pp.1510-1534.
Bowie, D. and et.al., 2016. Hospitality marketing. Routledge.
Choo, P.W., Ling, T.C. and Fernando, Y., 2018, May. Managing Knowledge, Service Innovation
and Service Experience in Hospitality Industry: A Proposed Framework. In ICMLG 2018
6th International Conference on Management Leadership and Governance .(p. 78).
Academic Conferences and publishing limited.
Kang, N.and et.al., 2016. A Hierarchical structure of key performance indicators for operation
management and continuous improvement in production systems. International journal of
production research. 54(21). pp.6333-6350.
King, C., 2017. Brand management–standing out from the crowd: A review and research agenda
for hospitality management. International Journal of Contemporary Hospitality
Management. 29(1). pp.115-140.
Leung, X.Y., Xue, L. and Bai, B., 2015. Internet marketing research in hospitality and tourism: a
review and journal preferences. International Journal of Contemporary Hospitality
Management. 27(7). pp.1556-1572.
Pitt, M., and et.al.,2016. Hotel maintenance management in Sanya, China. Journal of Facilities
Management. 14(4). pp.304-314.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management. 27(3). pp.340-361.
Van der Wagen, L. and Goonetilleke, A., 2015. Hospitality Management, Strategy and
Operations. Pearson Higher Education AU.
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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