Hospitality Operations Management Analysis: Intercontinental Hotel

This report provides a comprehensive analysis of the hospitality operations management within the Intercontinental Hotel (IHG) in the UK. It begins with an introduction to hospitality operations, defining key concepts and the industry's focus on adapting to new trends. The report then delves into the operational and economic characteristics of IHG, including its products and services (food & beverages, tangible and intangible elements, service areas). It examines factors influencing customer demand, such as seasonality, time of the week, health consciousness, and economic factors. The report also analyzes customer profiles, pricing considerations, and average spending power (ASP) influenced by income, status, social influences, and the economic situation. Furthermore, it explores product and service development stages, including idea evaluation, market research, market segmentation, and advertising. It also addresses strategies to attract customers, opportunities and constraints, and merchandising possibilities in a globalized context. Finally, it discusses pricing methods (cost-oriented and market-oriented) and factors affecting revenue and profitability, such as labor intensity, shelf life, and elasticity of demand.

Hospitality
Operations management

INTRODUCTION
Hospitality operation management is the study of hospitality industry. In hospitality
industry can conduct various type of operations that can affect to activities of business. In the
scenario of UK they are focusing on every activities of hospitality industry and apply new trends
quickly. In the hospitality industry provide different types of products and services at different
prices. To understand concept of report selected organisation intercontinental hotel, which is
based on UK and known as multinational company. The headquarter of a company in Denham,
Buckinghamshire, England. In the report consist of the operational and economic characteristics
in reference to hospitality operations. Apart from determine hospitality products and their
requirement as per customer demand and factors to influence of spending power. In addition,
features of contribution and merchandise opportunity. Through this report examine approaches
regarding to business analysis as well as planning.
TASK 1
1.1
In the business industries of hotel, mainly products may be defined food & beverages. All
of goods are perishable on the basis of several ways. The nature of Intercontinental hotel's and
their hospitality products or services areas are mentioned here:
Perishable: Beverages and food with the another type of hospitality product are not so
much durable or really much perishable in the nature (Altin, Koseoglu and Riasi, 2018).
Tangible and intangible elements: All the services choice of hotel business concern has
two feature along with their weakness or capability. In this current scenario, tangible services can
be indoor or outdoor design which affect consumers positively. On the other side intangible
factors are involved in reliability, customer reactivity, empathy or confidence which are not
visual.
Service areas: This is the primary type of services area of IHG hotel their rooms are well
designed, food and beverage services for customers as well as hotel have conference hall for
discussion or meeting also have eating method in order to help the customers to arrange huge
feast like breakfast, dinner or lunch.
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Therefore, these are the different services which are given by the IHG hotel in order to
impress customers as well as provide several healthy and safety tips to them. That's why it is
necessary for any kind of hospitality firm to impress customers in an attractive way.
1.2
Every hotel does not have similar demand all over the time period even all the days in the
week. There are several kind of factors through which customer demand can be rise in an
effective manner. Therefore, there are four types which influence the demand factors, which are
given below:
Seasonality: This is one of the huge customers of IHG hotel which are the hikers,
ramblers, climbers etc. in some cases these kind of customers come in the unpleasant season.
This is because demand mainly increases in this time period as compare to the other season.
Time of the week: This is the different type of customer group like families or couple who
mainly focuses on the weekend or any type of vacation to travel. As per this scenario customers
have highest demand within the week.
Healthy living: In this customer are very much conscious about their health or prefer healthy
diet or life forever the hotel in which they can get high standard level of sanitation. So that it
affects customer positively.
Economic factors: If there are different type of regional or national crisis in the economy and
whereas the major kind of income type of customers falls than automatically customer demand
falls effectively (Buhalis and Leung, 2018).
1.3
This is based on the several expectation of customers and their representative needs, the
customer profile of IHG hotel can be change. Here based on different expectation, customer
profile of IHG are prepared.
Types of hospitality business: There are three type of hotel business. That is food and
beverages, betterment and travel and tourism. That's why customers come here in order to meet
their aim of accommodations.
Pricing consideration: In this type of customer of the hotels are families or couple.
These kind of customers aware for their services rather than their consideration of cost which
leads to the comparatively high value for all type of services.
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Meal experience: The meal standard is very high of every customer. Beyond this, there
are so many several customers such as sports men and their team member as well. In this menu
food meal is light or not heavy foods.
Expectation requirements: As in IHG hotel different kind of customers come with
different demand. Therefore, demand is differentiable and customer can get their exceptions in
an effective manner.
1.4
In regards with IHG hospitality business, customers are substance with huge range of
services with the various level of price which convey about average spending power. According
to the UK ASP reveals customers overall expectations. There are several factor that vary ASP,
given below:
Size of income: The overall financial gain level of customer is mainly related with the
average spending power of the customers. If financial gain level is high than spending power of
client is upgraded.
Status: It is also a good factor that based on which ASP customer is built. Somewhere if
customer is a royal person than no one can reduce the cost by any cases or make high cost with
improved services in an effective manner to improve the spending power.
Social influences: Some times different type of cultures that influence the spending
powers are the customized. For example At the time of celebration or function customer spends
more and more money positively.
Economic situation: In this situation, customer's belief due to the take down status of
economic and they also forced to cost less and average spending power (Chan and Hsu, 2016).
TASK 2
2.1
Every organisation should analyse whole market for better growth and survival of their
organisation in an effective manner by the motive of earning profit. It is necessary for
operational manger of Intercontinental hotel to manage operation of their business and make
effective plan of product development for long term survival of product at competitive
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environment. The various key stages of product and services development are described as
below:-
 Idea Evaluation:- The main motive of operational manger of Intercontinental hotel is
they have to tested new idea of product development at market. This is because it will
help them to grab more opportunities and overcome the threats in an effective way.
 Market Research:- This is to be considered that manager of Intercontinental hotel
should analyse the market by which they determine that what kind of product and
services fulfil customers need or requirement. Along with this, it will also help them to
survey external environment for analysing the demand of new product and customers
preferences accordingly.
 Market Segmentation:- It refers to divide a market on the basis of customers
characteristics and behaviour into groups or segments. In relation to Intercontinental
hotel, they segment their hotel on the basis of geographical units i.e., cities, states and so
on. So that they can helps customers to chose the best hotel in order to maintain its
positive image at market place.
 Advertising and Awareness:- With the help of this, Intercontinental hotel gives
advertisement about their services and product by which they create awareness at market
with a motive of attracting new customers and retaining old customers for long period of
time (Gannon, Rodrigo and Santomà, 2016).
2.2
In every organisation their main motive is to attract large number of customers towards
their product and services by the purpose of enhancing sale and earning profit. In context to
Intercontinental hotel, their aim is to generate awareness about its product and services at market
place for enhancing profitability accordingly. It includes various features by which they can
change customers perception towards their product and services in positive manner that are given
as below:-
 Strong brand image:- It is necessary for an organisation to build strong brand image at
competitive market by which customers can easily moves towards their brand or product.
In reference to, Intercontinental hotel, they should have maintain positive brand image at
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market by the motive of changing consumer decision making process and influence them
to buy their product and services only.
 Good quality of product and services:- This is also an important element for attracting
customers towards their company $ company. In reference to Intercontinental hotel, if
their food menu is different as by providing delicious, nutritious and dietary food then it
will also attract new customers and retain old customers for longer period of time. On the
other hand, their special arrangement or services for disable people create high rate of
popularity and positive image at society.
From the help of above mentioned features help Intercontinental hotel to maintain its
sustainability and growth for long period of time at competitive market by which then enhance
their sale in order to gain more profit.
2.3
Opportunities are those which helps to encouragement in business and effect
maximisation of sales and revenue or profit whereas, several confinement cut back the business
operation that leads to minimize the sales revenue or profits. In regards with IHG hotel company
have lot of opportunities and better services to their customers.
Opportunities: IHG hotel has lot of opportunities in order to compete with other
competitors when they offer largest facilities under their new planning. Another opportunity is
that now hotel is readying to assortment of customers from couple, someone and so on that is
helpful for hotel in order to make better position in the market (Gomezelj, 2016).
Constraints: It was the constricted adjustment adeptness when the challengers offered
extra service and also attract the broad scope of customers in an effective manner. By this hotel
is planning to launch their new service in order to increase their value in the market effectively.
2.4
In the scenario of globalization, now group have to travel much for recreation or business
intent which affects the maximisation of cordial reception business around the world. So that
hospitality business get lot of various marketing possibility all over the type of business. There
are few aspects which are given below:
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 In some cases traveller expects more and advanced quality of employment which is based
on the buying quality. Because this type of business would have the opportunities in
order to prepare or create more value.
 On the other side economic status of traveller is changed, then it it gives the hospitality
business in order to make a good advantage of merchandising.
TASK 3
3.1
In the hospitality business, there are various kind of evaluation methods which are
observed like cost, pricing, competition based pricing and so on. In the context of IHG hotel
have two leading sort of pricing method which are given below:
Cost oriented pricing: It is the easy form of pricing strategy where price is define by the
production cost in order to added profit with the production cost to define selling price.
Market oriented pricing: In this market research is conducted to understood the
competitor's pricing and this is based on the market oriented pricing in an effective manner.
So that it has been concluded there are several factors which affects the revenue cost of
hospitality business in order to increase the profitability of business in an appropriate manner.
According 6to these method Intercontinental hotel can provide better services to their customers
in order to influence them in a very good manner (Guha Thakurta, 2016).
3.2
There are several factors that affects the revenue of hospitality business as well as
portability of business. Few type of revenues develop factors like average spending power and
consumer employee turnover whereas, profitability factors like shelf like, portion control and
elasticity of demand. These all are affected IGH industry in an effective manner.
Revenue development and
profitability in regards with
Intercontinental hotel groups
Elements consideration Observations
Labour intensity Lot of amount of labour used
and capital amount also used
in an effective manner.
In the hospitality hotel industry
capital uses is less than the
labour.
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Shelf life  Lot of numbers of
customers.
 Value of brand name
and level of customer
satisfaction.
After making the well
designed plan an organisation
can easily survive in the
market for long period of time.
Elasticity of demand  Lot of requirement of
the product or services.
 Pricing demand.
In the context of IHG changes
in the demand of customers is
low rather then the price of
product or services.
Standardization  Selection of menu
 coming repudiated
customer
 Sanitary issues
IGH's management is also
sanitary or its also maintain
their menu selection or good
services to their customers in
an effective manner.
TASK 4
4.1
In the context of IGH they make different types of strategy or techniques in order to
understand their customers demand and overall system of an organisation. Wherein, this industry
used several appraisal techniques in order to measure the overall performance, which have been
given below:
Speed of delivery: In the time of serving item in hotel than they observe customer's
response like how fast the customer orders are accomplished is required to measure.
Quality management: In the process of quality management customers need to identify
the overall service quality of the hospitality products but it also required to define the ways that
how to change it in an effective manner (Hwang and Seo, 2016).
Data analysis and evaluation: In this customer need to analyse the expected
performance so that an individual can easily evaluate the present situation of hotel in a
appropriate way.
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Sales performant: This is also a very good technique it is made for the evaluating the
sales performance of an organisation. It maximises the sales revenue or profit of the business
which always influence the net or gross profit of the IGH hospitality management in an effective
manner.
4.2
Almost in all the cases, the assessment techniques are mainly operate on the sample
distribution data, which is not taken as the right presentation evaluation. e.g. the quality of the
goods and services, quality of the staff members, attitude of the workers, these all are to be
advised as the quantitative assessment methods. Now, these elements are to be applied by
developing the set of questions through questionnaire, or by conducting survey or by arranging
the group or business meetings for the huge number of groups. The primary issue for the
qualitative approach is that, the outcomes which are coming by doing the investigation can not
be applied in the huge number of individuals. For e.g. : goods and services offered by IHG seems
to be the best and tasty food is also offered to their customers. But that doesn't mean that all the
customers will like this tasty food or the best services.
4.3
When the firm is applying various approaches to their business of hospitality, then this
can be precise much complicated to view the formulation for the procedure of the hospitality
business such as facilities and services provided by the IHG, accommodation and catering
marketing along with the economic process create source. For example – In the Earlier times, the
customers are to be activated by the installation and services of lodging to them. In th4 previous
time, there were not much facilities available so in ancient time, the customers are not having
much facilities. But now, many services and facilities have been came such as facilities of safari,
private keys, receiving the guests, the facilities and services are increased and many services are
added in today's time. Along with this, focusing on the catering services is also essential. There
are three main group by which the organisation in the hospitality industry can generate more
profits such as non-residents, organized groups and house guests. Along with this, there are also
three main types of sources of demand in the industry of hospitality such as recreational,
institutional and transit. These all will help an have the good reputation in building the strong
market demand. The services which are to be added will help the IHG to expand their business in
the hospitality industry (Kandampully, Zhang and Jaakkola, 2018).
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CONCLUSION
From the above mentioned report, this is to conclude that the sustainable tourism is to be
observed as the important and essential attempts to bring forth occupation for the but that creates
the marginal impinging on the society and the business environs of the state or the region in
which the organisation is operating their business. In the following report, IHG was the
organisation in the hospitality industry which feel very pleasant by emphasizing for the new
improvement in their business. That is the main reason for expanding their business and for
going for the evolution which is very good and best preparation indeed.
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REFERENCES
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