Hospitality Operations Management Analysis and Evaluation Report

This report provides a comprehensive analysis of hospitality operations management, examining various aspects crucial to the industry's success. It begins with an overview of hospitality products and services, exploring their nature and characteristics. The report then delves into the factors influenc...Read More

Hospitality Operations Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Analyze the nature of hospitality product and service areas..................................................3
1.2 Evaluate the different influences affecting patterns of demand within hospitality operations
......................................................................................................................................................4
1.3 Compare customer profiles and their differing expectations and requirements in respect of
hospitality provisions. .................................................................................................................5
1.4 Analyze factors affecting average spending power in hospitality businesses........................5
2.1 Evaluating the key stages in product and services development applied within a hospitality
operation.......................................................................................................................................6
2.2 Analyzing the features which contributes towards the customers' perception of product and
services.........................................................................................................................................7
2.3 Accessing the opportunities and constraints affecting product or service development.......7
2.4 Evaluating different merchandising opportunities for hospitably products and services .....7
TASK 2............................................................................................................................................8
3.1 Evaluating the different methods of pricing...........................................................................8
3.2 Accessing the factors which affect revenue generation and profitability in hospitality
operations.....................................................................................................................................9
TASK 3 .........................................................................................................................................10
4.1 Applying the new range of performance measures and appraisal technique.......................10
4.2 Determining the effectiveness and limitations of the various quantitative and qualitative
appraisal techniques...................................................................................................................11
4.3 Applying approaches to business analysis and evaluation and planning for action............11
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Hospitality industry are most fast growing sector as compare to with others. This sector is
always known for giving best services to their clients in order to meet out the goals and objective
performance making task. Overall, it also helps to bring some new challenging material growth
services for the clients. Present study will be based on hospitality sector which will be going to
explain some new materialistic task to perform the best activities and growth. Study explaining
to express some customer profiles and factors that influence demand of hotel industry. The
average spending power of the customer need to be high so that the hotel moreover, it helps to
bring new services and growth. Present study based on Rosewood Hotel which is situated in
London.
TASK 1
1.1 Analyze the nature of hospitality product and service areas
Hospitality industry involves the welcome and taking care of requirements of the
customers who are most important for the hospitality industry. Hospitality customers are always
looking for the best prices of products and services in order to meet out the best possible results
and growth. Hospitality products and services belongs to the best quality of products which
belongs to the best service source (Bowie, Buttle and Mariussen, 2016). All the services
provided by the hospitality sector are recreational and entertainment facilities and organizing
transport for its customers. On the other sides, this industrial sector is also most required to keep
mainating the proper channel growth into the best form of areas of performing task. Hospitality
sector facing huge market competition due to variety of services or brands. Moreover, innovative
ideas and creativity helps to taking care of all the customers in to the best ideological task full
manner. More apart, it is also very necessary to keep the all task helpful in order to meet out the
customer needs and wants.
Perishable: Hospitality industry known as service industry, for example reception,
entertainment for the guests, visitors or strangers with liberality. These are the services in hotel
industry (Davis and et.al., 2018). These services are always kept changing in continuous manner.

Tangible Intangible : This is the another type of product or services out of which some
of them are tangible or some of them are intangible in nature. Intangible products in hotel
industry unlike physical products, services cannot be seen, tasted, felt, tasted, heard before they
are purchased.
Inseparable elements of hospitality products or services: inseparable product or
services called which already consumed and from the provider of the service. In hotel industry
both buyer and service provider be present for the transaction to occur. For example: Hairstyle-er
etc.
1.2 Evaluate the different influences affecting patterns of demand within hospitality operations
The demand for a product or services always depends on their market value which is
influenced by economic, social, cultural factors (Dursun and Caber, 2016). It helps to taking care
of better goods and services in order to meet out the goals. There are some factors which
influence demand of hospitality industry.
Seasonality : This is the main factor through which demands get up and down in order to
earn more profit. Hotel industry characterized by seasonal demands which plays most vital role
in determining customer behavior. This demand based on low, green, high/peak which connected
with different needs and wants.
Elasticity of demand: This is the another influencing factor which occurred when
demand is not met by the supply hence it is important that if there is a requirement for a luxury
hotel it is met by sufficient supply. Such as cultural factors, social and economic factors which
influenced elasticity of demand.
Pricing factors: Pricing is the another factor which influence demand of hotel industry.
If prices are too high customer will find the same services hotel with cheaper prices. It will go
cheaper and cheaper in order to meet out the demands and goals (Eid, 2015).
Economic factor - This is one of the highly influenced factor to demand. It depends how
much would person capable to invest on the luxury services. More apart, customer always book
hotels on the basis of their income level. Upper class customers are always looking for the high
luxurious services as per their ability to invest (El Haddad, 2015). On the other hand, middle or
lower class people booked hotels as per the low prices.

1.3 Compare customer profiles and their differing expectations and requirements in respect of
hospitality provisions.
Customer profile of a hospitality industry are segmented by different manner. Customer
profile depends on their investment level. In hospitality sector there are different profile of
customers are available in the industry.
Leisure travelers
Leisure travelers are always looking for the best services or hotels in which they can
enjoy their holidays (Fraj, Matute and Melero, 2015). Those customers who come to hotel to
pursue leisure activities such as relaxation, visiting and family or attending a participial cultural
event in the city.
Corporate travelers
Some customers visit hotels for their business purposes to conduct some business
activities. According to them, they required some conference rooms, also local and international
newspaper along with some proper business level.
Spending power
These types of customers depends on their number of investment goals in order to meet
out the goals and objectives to fulfill the task performance. Overall, money residing guest earns
determines their average spending power I s also higher (Horner and Swarbrooke, 2016).
1.4 Analyze factors affecting average spending power in hospitality businesses.
There are several factors which affect the average spending power in hospitality
businesses. In hotel industry, at different prices which bring out the average spending power of
the customer. Spending power of customer depends people response towards the services.
Level of income: Level of income decides the buyer spending power. This factor
determine the power of guest for example rich people spending rate is much higher
comparatively with low income level of customers.
Status : Guest spend money as per their living status. Customers who belongs to high
level of status preferred to have high status power (Jauhari and Bharwani, 2017). Some clients of
higher status spend more on gym, spa, on other activities to attract customer attraction.

Sociology Cultural influence: People get influenced from culture and social factors.
Those customers who really believes in living an up market lifestyle than those customers have
always prefers to take the best outcome resources.
Economic situation: Economic situation will be more helpful to create some new
managing activities and target areas of development (Konu, 2015). Economic factors influence
spending power for example: if person income level is low they booked hotels in cold weather in
which they can easily avail of the hotel services at a discounted rates.
2.1 Evaluating the key stages in product and services development applied within a hospitality
operation.
Idea generation: It always depends on the nature of growth in order to develop the next
process to implement into more appropriate manner. It is very necessary for the hotel industry to
keep update about the best possible action plan in order to meet out the best goals and services.
Apart from that, it discovers the new opportunity or goals to keep all things according to
customer wants. Rosewood needs to develop new service for the customers on the basis of
market research (Liu and Park, 2015). Such as hotel needs to expand their room facilities to get
the booking of more customers.
Screening process: Next process after generating an idea, hotel needs to screen the idea
and collect all necessary information regarding customers and their clients. For ensuring the
exiting new idea, manager needs to measure its own strategy with other competitors.
Evaluation of Idea: Next process is to evaluate the idea on the basis of profit, cost,
revenue involved in that idea (Pan, 2015). All these factors should need to be evaluate in order to
meet out the best resourceful goals and idea formation.
Product development: This step has last produced the new product or starts the process
of getting success.
Commercialization process : in this process when hotels needs to commercialism their
product or services in front of their customers and launching it's into the market. This must be a
best process to buy or sell the product and services at better efficient manner.

2.2 Analyzing the features which contributes towards the customers' perception of product and
services.
Consumer preferences get influenced by different factors such as customer service,
pricing layout, or designs. Client looking for the best services growth in order to keep all things
perfect and according to customer needs and wants. Customer always needs to satisfied with the
client services in order to meet out the goals and objectives of company profit goals.
In hospitality industry guests needs to be satisfied or influenced to come again
(Promsivapallop, Jones and Roper, 2015). Company needs to focused on the overall
development and keep take customer feedback to ensure their satisfaction level. For example,
some customers are highly conscious about his health for which they always preferred to take
light food or healthy food. Some clients like to have more spice food for them restaurant needs to
make accordingly. So this is the different perception of clients which may differ from each other
for which hotel needs to change accordingly.
2.3 Accessing the opportunities and constraints affecting product or service development.
Both opportunities and constraints affect the development of the product are the
availability of resources such as human, financial and physical resources. In order to produce any
product or services to be in the market there must be required to have in a proper manner so that
company can easily tap is brand awareness and growth as well. For example, current need in the
market has been running is organic food (Xiang, Du, Ma and Fan, 2017). For restaurant
businesses this is the opportunity to adopt that trend into their own businesses to get the high
customer rate or profit. More apart, it is also very necessary to keep take the new challenging
source apart from the sources and effective goals services. Apart for accommodation, hotel can
adopt the new room approach in which they provide swimming pool or bar services as well to
get the new opportunity for the new revenue growth. In order to meet out the goal purposes and
better growth full sources.
2.4 Evaluating different merchandising opportunities for hospitably products and services
Merchandising Opportunities
Merchandising is the opportunity where company has opportunity to grab the customer
attraction in more appropriate manner.

There are Several opportunities available for hotel industry in order to increase the
market share for the customers. Company or hotel industry needs to make sure its own
performance in the market and always looking for innovation which helps to keep brand loyalty
alive and refreshing. Hospitably industry can also get influenced by so many functions such as
best target results and new approachable service growth (Xiang, Du, Ma and Fan, 2017).
Rosewood Hotel needs to enhance new development target and also needs to make new
approachable effect to get the best results. Due to the high demand in hospitality sector, customer
are looking for new services such as new restaurant outlets, accommodation outlets,
infrastructure etc. all these are the merchandising opportunities that can be adopted by the
Rosewood Hote.
TASK 2
3.1 Evaluating the different methods of pricing
Cost Oriented Pricing: Cost based pricing strategy refers that how much cost has been
occurred to form a particular service or products. This pricing set by the company to cover the
cost of the product or services. In other words, this pricing strategy involves the profit margin
price to determine the new managing source (Zervas, Proserpio and Byers, 2017).
Market Oriented pricing
Market oriented pricing strategies are pricing strategies framed on the basis of target
market customers. In this process Rosewood Hotel prices as per their customer preferences.
Apart from that, another reason is to build up the matching price to market environment. In order
to set the prices, hotel industry needs to be focused on the new capabilities and growth.
Pricing at Premium
Some hotels or restaurants set prices on premium high prices. Such as big luxurious hotel
always set prices at high range as per their premium class customers.
Answered (a) : Rosewood Hotel needs to adopt Market oriented pricing strategies as per the
want of the customer or market preference (Jauhari and Bharwani, 2017).

3.2 Accessing the factors which affect revenue generation and profitability in hospitality
operations.
Pricing of the goods and services has always been affect the revenue generation and
profitability hence the manager should ensure that the pricing is not too high or not too low. If
the price of the product is too high, it will definitely affect the customers choices. This affect the
overall, profit of the company their target focused market (Dursun and Caber, 2016). It is very
necessary to keep all task effective and challenging in order to fulfill the long term growth. Apart
from that, it also helps to contained the long term process and implementing resourceful goals.
Sales Mix
Selling is the wide concept of product or services which directly affect the revenue
generation. Sales refers to the activity mix and then determine the pricing of combo services. For
example, Booking of a hotel and a spa package can be done to get together and can offer rate
package to the customers (Dursun and Caber, 2016). This gives better impact on the overall
developing growth of the hotels.
Customer revenue
Hotel revenue reflect the number of potential customers of the company. Customer
satisfaction might get affect the company revenue and profitability ratio. For example, if clients
are not get satisfied with the services then it affects the overall sales of Rosewood Hotel and if
customers are happy they more interested to get new bookings with the same hotel.
Average spending power
Spending power can also be the factor which affect the profitability and revenue of the
hotel. If Rosewood Hotel target premium class clients, they earned good amount of revenue
return. On the same side, if Hotel targeting low middle class customer whose spending power is
low comparatively to premium class clients than it would be impacting on the outcomes of
Rosewood Hotel.
Cost of raw material
Any increase in the cost of raw and new materialistic growth (Fraj, Matute and Melero,
2015). Cost of raw material also depends on the cost of raw material such as food, beverages,

cleaning products, bath products etc. hotel needs to keep maintained their limited cost on raw
material.
TASK 3
4.1 Applying the new range of performance measures and appraisal technique
In order to keep talented employees retained in the management it is very necessary for
the Rosewood Hotel to arrange some appraisal levels and training and development task in order
to meet the employees' satisfaction needs (Horner and Swarbrooke, 2016). Apart from that, it
will help to disclose the better advancement growth in order to meet out the best possible action
plan and better resourceful gnome. In order to measure some of the performance measurement
techniques company should needs to adopt techniques given below:
Quality management
Quality management technique is one of the most effective technique to measure the
actual performance of the company (Jauhari and Bharwani, 2017). Overall, Manager check the
quality of services or products they provide to their customers. How many customers are
satisfied with the services shows the rate of customer satisfaction.
Speed of Delivery /customer service
It is the next technique to evaluate the rate of services, this technique measures the
satisfaction level of customer services and then check the range of performance. Apart from that,
it helps to evaluate the most effective and most prominent level of task which helps to sustained
the long term growth in the market (Jauhari and Bharwani, 2017). Rosewood Hotel can measure
their speed of delivery rate and measure the own performance.
External Comparison
External comparison has been done with the help of comparing competitors positioning
level. Rosewood needs to compare its product or services with other top hotels to evaluate the
actual position of itself in the market.

4.2 Determining the effectiveness and limitations of the various quantitative and qualitative
appraisal techniques
Quantitative and qualitative techniques are very much effective to measure the wider
group of population which can be assessed using the primary and secondary analysis data. Such
as quantitative method is useful to evaluate large part population growth which used primary to
secondary data. Besides, qualitative data is used by interviewing or by focused on group of
people but its limitation is that, it is usually more expensive and at the same time this approach is
not suitable for large population of size.
For example, 360 degree technique of evaluation helps in two way communications
between the employees and the employer (Liu and Park, 2015). This technique evaluates
performance technique with all over manner. This technique is very common to take feedback
which is quite adopted by all hotels.
4.3 Applying approaches to business analysis and evaluation and planning for action.
For busies analysis purposes this must be according to needs and wants according to the
best possible action plan. For analyzing the business Rosewood can adopt models to analysis
internal or external environment such as Pestle and SWOT. SWOT stands for strength,
weaknesses, Opportunity and Threats. Besides, it also helps to contained the most appropriate
manner of evaluating market positions. These kinds of approaches help Rosewood Hotel to take
further action plan to get over from its threats and weaknesses.
Planning should include some recommendation process to measure the things and
planning growth (Promsivapallop, Jones and Roper, 2015). Planning process should include in
order to meet out the best possible action plan. Apart from that, it will help to determine the best
possible action plan that affect the more effective plan (Xiang, Du, Ma and Fan, 2017). Action
plan, should be executed like the addition of a nutritious menu for the people who signs up for
hotel gym.
CONCLUSION
On the basis of above section, it has been concluded that, hospitality industry and its
operation is very much necessary to hold new operation and service task. Further study explained
about the operation management of Rosewood hotel which is situated in London. Study

explained about some revenue, cost and profit appraisal techniques or method. However, report
explained some essential terms of hospitality industry that helps better in a way.

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