Hospitality Operations and Management: A Hilton Hotel Analysis Report

This report offers a comprehensive analysis of hospitality operations and management, focusing on the practices of Hilton Hotel and Resorts. The report begins by examining the nature of hospitality products and service areas, including the distinction between tangible and intangible elements and the various service areas offered. It then delves into the factors influencing demand patterns, such as seasonality, economic conditions, and customer profiles. The report further explores key stages in service and product development, emphasizing idea generation, evaluation, and market segmentation. It also discusses features contributing to customer perception, such as service quality and staff interaction. Additionally, the report covers pricing strategies, profit and revenue elements, and various performance measures and appraisal techniques used in the hospitality sector. Finally, the report concludes with an application of business analysis approaches appropriate to hospitality operations, providing a holistic view of the sector's complexities and strategies for success.

Hospitality
Operations
And
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Analyse the nature of hospitality product and service areas.................................................3
1.2 Different influences affecting patterns of demand................................................................4
1.3 Customer profiles and expectations in context with hospitality...........................................4
1.4 Factors affecting spending power in hospitality businesses.................................................5
TASK 2............................................................................................................................................6
2.1 Key stages in service and product development...................................................................6
2.2 Features which contribute towards the customer's perception of services and products......6
2.3 Constraints and opportunities affecting service and product development..........................7
2.4 Various merchandising opportunities for hospitality products and services........................8
TASK 3 ...........................................................................................................................................9
3.1 Different method of pricing by consider additional pricing..................................................9
3.2Assessment of element which affect profits and revenue in hospitality sector......................9
TASK 4..........................................................................................................................................10
4.1 Application of various performance measures and appraisal techniques...........................10
4.2 Effectiveness of qualitative and quantitative techniques of appraisal and their application
to hospitality operations............................................................................................................11
4.3 application of approaches to business analysis appropriate to hospitality operations........12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
It defines the interrelation between a visitor and host furthermore, it is a service in which
facilities are provided to the visitors and guests in this facilities includes food, drink, safety and
security of clients. Whereas, operations management is a maintenance of business activities in a
firm which is done by the managers for getting effectiveness in their work. Hospitality sector is
the fastest growing sector in United Kingdom. Present assignment is based on Hilton hotel and
resorts which has a huge brand image in hospitality sector and it was founded in 1919. Now it
has more than 570 locations across the world which maintains their strong market presence in the
service sector. This report includes demand pattern of customers and various elements which
influences the individuals and stages of developing product. In addition to this, important
features which are essential for making perception of customers. Constraints and opportunities
who affects the product development are discussed in this report.
TASK 1
1.1 Analyse the nature of hospitality product and service areas.
Products are defined as offering of a firm which includes tangible features and provides
to their customers in order to get satisfaction from them. For getting atonement from the
customers and satisfy their needs and demands it is necessary for a firm to make a product with
uniqueness and effective. In the case of hospitality sector, hotels provides the individuality in
food and beverages. All these products are perishable in nature. Nature of products and services
which are provided by Hilton hotel are further explained as under:
Perishable – Food and beverages can't be stored for a long time so, they are not
perishable in compare of other products in hospitality sector (Schniederjans, 2013).
Tangible and intangible elements – Services which are provided to guests in hospitality
industries they are consisting two aspects it includes tangibility and intangibility of a product.
Tangibility in services can be defined as indoor or outdoor designing of hotel, tools which hotel
usage to function its clients, atmosphere of hotel which is visible to the customers. Whereas,
intangible defines the reliability of customers and staff members, customer react, empathy,
sensuality and all those features which is not visible to end users.
Service areas: There are various areas where Hilton hotel has to offer services to its
customers in effective way. It includes food and beverage, room division for various type of

visitors, conference hall for group meeting, banquet services which assists individuals to arrange
huge programmes such as breakfast or lunch.
1.2 Different influences affecting patterns of demand.
In hotel industries there are various expectations of customers which are modified
according to time, Therefore, hotel industry can not provide the same type of services for long
time period. There are various elements which affects the demands of customers in big way so, it
can be better understood by following parts:
Seasonality: it is a major element which gave a huge influence on the pattern of demand
of clients. Major customers of Hilton hotel are hikers or climbers and in most of the cases this
type of customers do come in worm season. Due to which the demand is increases than other
seasons (Chen, 2012).
Time of the week – there are various customers who come in the Hilton at weekends
such as couple and youngsters. So, it also hikes the demands in the Hilton hotel and resorts.
Healthy living- Visitors who are more concerned about their health and their family
member's health. They also choose that hotel where they get all facilities and services of
sanitation. Therefore, this type of perception of individuals affect the demand of the customers
and also affect their choice of hotel.
Economic factors: it is an important factor which gave a huge impact on the demand of
clients. If there are any kind of national and regional crisis happens that influences on the
demand pattern of customers. Furthermore, it also affects the change in income level of
customers.
1.3 Customer profiles and expectations in context with hospitality
Customer's profile of every hospitality industry changes according the expectations and
desires of customers. It is very essential to an organisation to provide the same services which
are expected from the clients. Due to which, firm can retain them in near future time. There are
some expectations profile of customers in Hilton hotel they are as under:
Type of hospitality business: In hospitality sector, there are basically three types of
businesses such as accommodation, food and drink, and tour and travels. In the context of Hilton,
they are providing accommodation to their customers so visitors come here and fulfil their
requirement of accommodation.

Pricing consideration- In Hilton hotel, their main customers are families and youngsters.
These are the individual who enjoy the services which are provided to them they are not
concerned about costs. Due to which, the price of services is increased in the hotel.
Meal experience- Meal which is provided to their customers its standard is high.
Because they have various type of visitors such as business men, sports teams. Therefore, the
menu of hotel is not included any type of heavy food item.
Expectation requirement- there are various type of visitors who are regularly visits in
the Hilton hotel and their expectations are also different. So, it is necessary for the hotel staff to
understand the different requirements of its clients and provide them services according to their
needs. It makes them satisfy and they will regularly came into their hotel. In order to providing
services to more customers management of Hilton hotel firstly analyse the demand of various
customers then provides services according to their requirements (Sarkis, 2011).
1.4 Factors affecting spending power in hospitality businesses
In service sector, there are variety of services and products with different level of price it
brings spending power in the customers. Spending power of customers brings customer's
motivation. There are several factors which modifies the average spending power they are as
under:
Size of Income : average spending power is based on the income level of customers. If
the income level is higher of customers then spending power of them will also increased.
Status- It is an crucial factor which improves the spending power of users. For e.g. if a
customer has a royal status he will not discuss about the cost in any proceedings therefore, he
will pay higher cost for the services which he needed. Due to which, the spending power of users
will improved.
Cultural and social influences: it is an important element which increases the spending
power of customers for e.g. in festive season, there are many customers who wants to spend
more for getting services.
Economic situations: stability in economic conditions increasing the spending power of
customers whereas, instability of economic system decreases the spending power of clients.

TASK 2
2.1 Key stages in service and product development
It is very necessary to innovate a product or modifies the existing services in an
organisation. Due to which, organisation can attract more number of customers. In hospitality
industry, if any industry wants to develop a product it has to go through with different phases of
product development which is further understood by following points:
Source: New Product Development Stages. 2017
Idea generation – In this part, the various decisions are created by the employees but
manager has to chose a suitable idea which can provide lead to organisation in marketplace.
Idea evaluation- Under this, idea which is generated and chose by the management is
evaluated in order to analysing threats and opportunity regarding conception.
Testing the concept- In this part, firm test the concept due to which they can measures
its growth and sustainability.
Market segmentation – it plays very important role in the service industry and it gave
responsibilities to managers for doing this. Hilton Hotel can take a price initiative for taking
competitive advantage in the marketplace. If management of Hilton wants to increase their
number of visitors they have to change their current pricing policies. Which assists the hotel
management in attracting more number of business men and sports teams.
Advertising and awareness – It is the last step in the process of development of product
because it includes the various promotional activities in order to increasing effectiveness of idea.
It assists to management in increasing sales and spreading awareness in the marketplace
(Ramanathan, 2014).
Illustration 1: New Product Development Stages

The main parts which are included in process of development of product they gave
assistance to management of Hilton hotel and resorts to offer varieties of product and services to
their customers.
2.2 Features which contribute towards the customer's perception of services and products
It is a Modern Era of business so there is a huge competition in service sector and
customers are the king of marketplace so, their perception decides the sustainability and growth
of firm. Therefore, it is essential to provide better quality of products and services in the Hotels,
due to which, a brand image will be created in the mind of customers. Hilton hotel has a strong
market presence regarding to their offerings and atmosphere. There are various factors which
build perception of clients they can be further understood by following points:
 Provide better facilities to customers during their stay it will bring positiveness in
perception of visitors.
 For increasing more number of customers staff of hotel have to serve marvellous food
items to their clients.
 Special facilities to handicapped visitors may enhance the strong brand image of hotel.
 If Hotel use effectiveness in services and provide it to customers with uniqueness it will
also attract the many number of visitors toward the services which are provided to them.
 Before providing services to its customers hotel staff have to know about their preference
due to which a healthy relationship will be create between the staff members and visitors.
 For enjoying customer's satisfaction it is very important to provide services with better
quality during their stay at hotel.
 Give an opportunities to their customers by providing them a huge space for living at
their stay time, it will build the strong perception in the mind of customers about hotel
services (Chan, 2013).
It is very important for management of Hilton to provide better kind of services to their
customers due to which a strong perception will be made in the mind of clients and it will gave
growth and sustainability to the firm. There are various elements present in the organisation
which can be used in the order of making perception of customers about offerings from the
organisation. Perception of visitors may be affected from the bad quality of service, therefore it
is essential to hotel staff to maintain the quality in services. In addition to this, if the better
quality will be provided in services to the clients it will assistance in making a positive

perception of customers. These are the factors which can be considered by the management of
Hilton hotel in order to making a good perception of visitors about their goods and services.
2.3 Constraints and opportunities affecting service and product development
Opportunities are the important element which decides the growth and sustainability of a
business firm. Constraints are the factors which gave barrier in the proper execution of business
activities and it may be influence in overall growth of organisation. Therefore, it is very essential
to make proper strategies and plans in order to getting opportunities in the marketplace. If the
Management of Hilton hotel wants to expand their business there are several factors which gave
opportunity and threat in the firm for this, external analysis of opportunities and threats will be
carried out by the manager which is as following:
Opportunities Threats
 Hilton hotel has big number of
opportunities to beat the competition in
marketplace. For this, management of
Hilton has to provide effectiveness in
services than its competitors.
 Staff members of Hilton has to serve
quality in services to their customers
which may be business men, couples,
and sports teams. It will provide an
opportunity to them which brings
Strong Ness in the position at the
marketplace.
 Hilton hotel is providing limited
accommodation services to their
visitors during their stay period which
gave threat to customers. For this, they
have to increase their services so that,
they will get competitive advantage in
the marketplace.
 Unavailability of energetic staff
members gave a big constraint in the
business activities. So that,
management of Hilton have to recruit
knowledgeable and experienced staff
members in order to defeat their
competitors at the market.
2.4 Various merchandising opportunities for hospitality products and services.
Due to globalization, traveller and customers travelling more for both commercial and for
recreational purpose which gave the enhancement in the hospitality industries all over the world.

All these activities gave various opportunities in hospitality sector and other types of sectors in
all over the globe.
 Visitors wants the quality in services which may be high or less which is based on their
spending power. It gave more opportunities to customers with providing value of money
to their customers (Sloan, 2012).
 Good income level of customers provide a huge benefit to hospitality sector and gave
growth in the business. Enhance in income of clients gave opportunities to hotels in terms
of profits.
TASK 3
3.1 Different method of pricing by consider additional pricing
In hospitality industries, every hotel has to make an effective pricing policy for attracting
more number of customers. There are various methods of pricing which can be adopt by hotels
such as cost plus pricing, depends on cost of product etc. it is necessary to Hilton Hotel to adopt
a proper method of pricing which gave value to their customers with providing satisfaction to
them.
Hilton Hotel
Method Method used or not Remarks about how method is used
Cost oriented
pricing
No In this method, the price of goods and service is
determined by the cost of production. A proper margin is
decided then it will added in the production cost which
makes the Maximum Retail price of product.
Market
oriented
pricing
Yes This method is based on the strategy of competitors,
before using this method, Marketer has to understand
about the market trends and rival's pricing policy on the
similar product then the final prices is decided.
3.2Assessment of element which affect profits and revenue in hospitality sector
There are various type of factors which influences the profitability of hospitality industry.
Different type of elements which increases the revenue of the firm such as purchasing power of

customers, income level of clients and sales mix provide benefit to firm (Köseoglu, 2015). There
are various profitability elements which increases the growth of firm such as demand elasticity,
labour intensity and many more which are further understood by following table:
Appraisal of profitability and revenue generation
Factors to be considered Remarks
 Labour intensity  Amount of money
used by organization.
 Amount of labour used.
Hospitality is a sector in
which, workers are used more
than the other elements such as
capital. Due to which, this
sector is considered as a labour
intensive.
 Shelf life  Number of clients
 Worth of brand-image
 Amount of visitor's
satisfaction
 Level of decisions
which are taken by
management
 By making a new
product plan firm get
sustainability in
marketplace.
 Customer satisfaction
is very necessary for
the organisation.
 Elasticity of demand  Price of need.
 Demand of company's
product and service in
market.
In Hilton hotel and resorts,
demand of price elasticity is
inelastic. It defines that
modification in demand of
visitors is less than the change
in the prices of product and
services which are offered to
customers by the company.
 Standardisation  Menu selection
 Issue of sanitation
 Invitation of imperial
customers
It is very necessary to hotel
staff of Hilton hotel that they
have to maintain a standard
menu card in their

organisation, Due to which,
they will attain more number
of royal customers.
TASK 4
4.1 Application of various performance measures and appraisal techniques
There are different type of appraisal techniques which are present in the market and it can
be used by the management of Hilton Hotel in order to evaluating the performance level of their
staff members (Gursoy, 2012). Before selecting an appropriate method it is necessary to analyse
the merits and demerits of each method. There are some methods which can adopt by the
management in analysing the overall performance of business firm these methods are further
explained as following:
 Quality management: in this part, manager have to analyse the quality in services which
are provided by them to their customers. It assists to management in identification of
ways which are needed improvements.
 Speed of delivery- Under this, it is measurement of efficiency in workers with addition
to this, It is an evaluation of delivery time which is taken by the staff members which
serving their customers.
 Developing qualitative and quantitative data: it gave assistance to management in
collecting qualitative and quantitative data due to which overall performance can be
evaluated of the firm. In qualitative data, informations are related with quality in services,
reliability and satisfaction of customers. Whereas, quantitative aspect is related with
market trends, pricing policy of competitors, visitors per week is collected for completing
the appraisal.
 Data analysis and evaluation- In this method, informations are collecting through
several methods which is related with performance and its standard. In this way, manager
can easily analyse the current position of the firm (Rahman, 2012).
 External comparison- In this analysis, Hotel can set an effective pricing policy and
standard of quality in services it can be used for defeating competition in marketplace.

 Sales performance- It is also an effective tool which provides the proper measurement
of performance level of the staff members. In order to get gross and net benefit in Hilton
Hotel.
4.2 Effectiveness of qualitative and quantitative techniques of appraisal and their application to
hospitality operations
There are several cases where techniques of appraisal can be applied to gave assistance in
collecting data but it cannot be used as the final measurement of performance. For example
quantitative methods of appraisal includes various factors such as quality and strengths of staff
members, attitude of employees and final product's quality and services. All the factors can be
assessed by various type of surveys, group meetings and interviews which can be applied in the
place where a wider population is living. Qualitative approach gave the result from the
evaluation can not be applied to the population as a whole.
4.3 application of approaches to business analysis appropriate to hospitality operations.
There are various approaches which can be applied to hospitality sector and it may be
very complex to chose and consider the approach for execute the operations in effective and
systematic way. For example in earlier time, visitors were get limited facility such as
accommodation and lodging. But now hotels have expanded their business so they are providing
more facilities to their guests for getting satisfaction from them. It is essential to focus on
catering market because there are three main part which increases the profit of the hotels such as
banqueting, food and beverages, tour and travels. All these parts assists to management in order
to taking growth and sustainability in marketplace. All these activities can be adopted by the
management of Hilton hotel in future time so that, they will increased their profits (Law, 2012.).
CONCLUSION
It has been analysed from the above report that demands and requirement of customers
are affected in various ways such as services and quality in services which are provided by
Hospitality industry. In service sector, such as Hotel have to use perishable products so that, they
can't store it for a long time of period. It gave responsibilities to management for providing better
services to their customers therefore, organisation get sustainability and growth. Product
development and its various steps are implemented at necessity level so that, they can attract