Hospitality Operations Management Report: Marriott Hotels

This report provides a comprehensive analysis of hospitality operations management, using Marriott International as a case study. It explores the nature of hospitality products and services, identifies factors influencing demand patterns, and compares customer profiles with their expectations and requirements. The report further examines the factors affecting average spending power and evaluates the key stages of product and service development, including idea generation, concept testing, and business analysis. It also delves into the features that contribute to customer perception, identifies opportunities and constraints in product and service development, and discusses different merchandising opportunities. The report analyzes various pricing methods and revenue generation factors, concluding with an assessment of performance measures and business analysis approaches within the hospitality industry.

Hospitality Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Identify nature of hospitality product and services areas......................................................1
1.2 Different influences affecting patterns of demand ...............................................................1
1.3 Compare customers profiles and their differing expectation and requirement.....................2
1.4 Factors affecting average spending power ...........................................................................2
2.1 Key stages in product and services development .................................................................3
2.2 Features contributes towards customers perception .............................................................4
2.3 Opportunities and constraints affecting product and services development ........................4
2.4 Different merchandising opportunities ................................................................................5
TASK 2 ...........................................................................................................................................6
3.1 Different methods of pricing and additional pricing consideration .....................................6
3.2 Factors affecting revenues' generation and profitability ......................................................6
TASK 3 ...........................................................................................................................................7
4.1 Performance measures and appraisal techniques .................................................................7
4.2 Usefulness and limitation of qualitative and quantitative techniques ..................................7
4.3 Approaches to business analysis of hospitality operation ....................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES ...............................................................................................................................9

INTRODUCTION
The role of operation management is balanced between demand patterns, resources
scheduling and achieving satisfaction. Operational capacity is one of the most difficult task
facing hospitality managers. The unique role of operation management is transformation of an
organization's input to finished goods and services (Chen and Chen, 2014.). In the hotel, the
process of transformation includes multiple layers of different procedures including front office,
food and beverages operation etc. This study is based on Marriott i.e. international flagship
hotels and resorts. This assignment will explain nature of hospitality products and services. It
will evaluate different factors influencing patterns of demand within hospitality operations. It
will compare customer's profiles and their differing expectation and requirement in respect of
hospitality provision. It will analyse factors affecting average spending power in hospitality
business. Furthermore, report will evaluate key stage of product and services development and
also analysis features that contributes towards customers' perception of products and services. It
will analysis different methods of pricing and additional pricing consideration in hospitality
organization.
TASK 1
1.1 Identify nature of hospitality product and services areas
Hospitality industry is an active industry with infinite categorises but customers services
is the unifying factor shared by all segments of the industry. It is wholly based on concept of
customer's needs and wants, requirement of both individual and group of families. Marriott Hotel
is International flagship brand of full services hotels and resorts, globally spread over wider area
and centre of attraction for most of the families as well as travellers that allows Marriott
generates a high revenue (Davis and et. al., 2018).
Hospitality products: Hospitality products are part of hotel design that involves different
elements such as sightseeing, accommodation, food and beverages.
Hospitality services: Whereas room services, club, resorts, breakfast, lunch services are
involves in hospitality services and providing all wants of customers. Intangible services refers to
online booking of hotel rooms. With the help of it, customers are easily booking hotels rooms
and other services. On other hand, tangible services refers to food and beverages, resorts,
conferences, banqueting etc. of Marriott. The main objectives of hospitality industry is to provide
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services to their consumers for gaining many customers to company in terms of generating high
revenue and spread their organization in the worldwide. Marriott focus on providing services like
food and beverages according customers taste and preferences.
1.2 Different influences affecting patterns of demand
There are various factors such as seasonality, healthy living, culture, regional and ethnic,
economic elements that are affecting pattern of demand of product and services of hospitality
industry. Changes in customers taste and preferences also affects on demand pattern of products
and services in Marriott Hotel. These factors as follows:
Seasonality: Every customers' taste and preferences is different. For example during
summers season, most of the families and tourists are coming in Marriott resorts that company
providing pool facility to their guests (Hertzman, Moreo and Wiener, 2015). Due to seasonal
demand by consumers, management of Marriott Hotel has to add different dishes in menu
planning that are acceptable by the customers during the different season. This factor effect on
pattern of demand of product and services of hotel. Therefore, Marriott Hotel make sure that
providing services for customers needs and wants.
Healthy living: Management of Marriott Hotel is focused on providing healthy food and
beverages, because of nowadays, peoples are getting very conscious for their health. Therefore,
hotel management make sure that hiring talent food staff for making meal lunch or dinner they
are serving has all types of nutrients and balanced diet within it in order to satisfy the customers'
requirement. This kind of factor effects pattern of demand of product and services of hotel
(Lopes, 2016).
There are numerous factors as well that influence the demand of consumer such as
healthy livings, ethics, religion and culture of organisation as well as individual, the booking
time etc. that vitally affect trends and service user's demand.
1.3 Compare customers profiles and their differing expectation and requirement
Customer needs and wants depends upon their financial conditions in order to customers
profile. For example If customer profile is low so that they are not fulfilling their needs and
wants. But if their financial condition is good customers are fulfilling their requirements. There
are various characteristics such as follows:
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Customers profiles Customer expectation
High customer profile If customer profile is high, so that their
expectation also high.
Lower customers profile If customer profile is low, so that they are
fulfilling their basic needs.
Spending power: Spending power refers to financial conditions of customers. If
customers' financial conditions is good that they prefer high quality products. But low financial
conditions of consumers that they prefer low quality product (Mooney, Harris and Ryan, 2016).
Pricing consideration: The pricing of product and services also affects customers
expectation and their profiles. Therefore, Marriott Hotel make sure that providing products and
services on affordable pricing to customers satisfaction. For example: if customer's has high
income so that they purchase high pricing product and services. On other hand, consumers has
low income so that they buy low pricing services of Marriott Hotel. Therefore, hotel is
considered low and high bot pricing services in their business (Pereira-Moliner and et. al., 2016).
1.4 Factors affecting average spending power
Spending power refers to purchasing power of customers. There are many factors that
are affecting on spending power. These factors are such as follows:
Size of income: If size of income is low so that they are spending average on hotel
products and services. But if customer's income is high, thus, they are purchasing more luxury
services of Marriott.
Price: If pricing of products is high, so that customers are spending limited on buying of
services. But, if pricing is low so that consumers are spending more for purchasing of goods and
services. Therefore, pricing are muse affected on purchasing power of customers (Van der
Wagen and Goonetilleke, 2015). Therefore, manager of Marriott make sure that services are
provided on affordable pricing to the customers.
Family structure: If consumer's family structure is big, so that they are spending limited
on buying of products and services. But customers family size is small, so that they are spending
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more on purchasing of goods as well as services. Therefore, spending power is affected by this
factor as well as organization.
2.1 Key stages in product and services development
Marriott is international flagship brand of hotels resorts in UK. Therefore, operation
manager has to provide better quality product and services to customers. In order to that, they are
developed all existing and new goods and facilities in the market according customers' demand
and requirement (Wood, 2015). In this context, there are various key stages of product and
services development within hospitality operation such as mobile room keys, Wi-Fi services.
Such as follows:
Idea generation : The operation manager of Marriott Hotel generates different thoughts
for developing various product and services in their business. Hotel products refers to food and
beverages, accommodation etc. whereas housekeeping services, resorts, room involves in hotel
services (Sheehan, Grant and Garavan, 2018). With the help of this stage, manager is creating
innovative ideas according customers demand, feedback for developing these products and
services in their hotel.
Idea screening: Operation manager is screening ideas after generating thoughts for
development of product and services of Marriott Hotel. In this stage, manager identify firm's
strength, weakness, customers needs, current and future trends etc. With the help of it, company
develops products and services in their business (Kandampully, Zhang and Jaakkola, 2018).
Concept development and testing: This stage is essential in developing products and
services of Marriott Hotel. Operation manager make sure that proper use of resources, effective
quality, affordable price, experience, values etc. On other hand, manager adopt test concept that
involves requiring changes, costs and features of product.
Business analysis: It is very essential step in product and services development. A
detailed business analysis is done to analyse different factors are identifying by operation
manager such as cost of products, demand, competitors, total sales, advertising, sales promotion
expenses etc.
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Product development: In this stage, organization has decided to introduce products in
market. It is important to take all steps to produce and distributes products. After this stage,
company is done test marketing (Lugosi and Jameson, 2017).
Test marketing: It means to introduce products on very small scale in very small market.
If products is successfully introduced in small market then they are introduced in large scale.
Test marketing decreases risk large scale marketing. It is safety device. It is very time
consuming.
Commercialisation: After test marketing, company is utilised marketing mix in this
stage. This stage involves briefing different departments about duties and targets.
Therefore, adopting these stages, operation manager is developing their products and
services.
2.2 Features contributes towards customers perception
There are different features that contributes in customers' perception. These are also
affecting on products and services of organization.
Brand image: Brand image affects on consumers' perception, particularly at the point of
purchase. Brand image covers all elements that involves quality, attractiveness of products. This
kind of factor affecting customers' perception. Therefore, Marriott Hotel make sure that increases
their brand image for customers satisfaction (Masa’deh and et. al., 2017).
Availability of resources: It is also important feature that contributes towards customers
perception. Therefore, operation manager of Marriott Hotel make sure that regular checking
resources are available or not. This kind of factor affects on customers' perception. If company
has effective availability of resources, so that they are providing effective services to customers.
This affects reputation and image of organization.
2.3 Opportunities and constraints affecting product and services development
There are various opportunities that affecting product and services development within
hospitality environment. Such as follows:
Standardisation: If operation manager of Marriott has to provide high standardised
services to customers, so that it is increasing customers satisfaction ultimately it creates
opportunity for developing products and services. This affects positively on hospitality
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environment (Fan and et. al., 2017). Therefore, manager make sure that providing better quality
and high standardised services to customers.
Brand image: The brand image of Marriott products is also an opportunity for
development of products and services. This also affect positively on the hospitality environment
of organisation. Strong brand image affects customers perception and satisfaction. Therefore,
organization increase their brand image in hospitality industry.
Accommodation facilities: Effective accommodation facilities are given by company
that is opportunities for developing products and services. Therefore, Marriott is giving the best
accommodation facilities to their customers (Ramanathan and et.al., 2017).
Constraints of product development:
There are many constraints that are affecting on developing product and services of
Marriott hotel. Such as customers demand, pricing, budget etc.
Pricing of product: In this context, pricing of product if very high, so that customers
demand is decreased that affects negatively on product development (Factors affecting product
development, 2015). If pricing of product is low, so that customers demand is increased that
affects positively on developing of product of Marriott.
2.4 Different merchandising opportunities
Merchandising: It is activity of promoting selling of goods and services to potential
customers. Effective marketing strategies are important for increasing brand, attracting
consumers and maintaining loyalty. Marketing manager make efforts on developing brand
awareness and organizing various drives for raising consumers' loyalty.
Merchandising Opportunities: There are various opportunities for merchandising of
products and services of Marriott Hotel in hospitality industry. Such as follows:
Global tourism systems: If Marriott Hotel collaborate with different tourism business so
that it is effective opportunity for customers attraction for their products and services. With the
help of this , hotel has large number of customers ( Bharwani and Talib, 2017).
Human capital development: Operation manager of Marriott Hotel make sure that
effective development of human capital that involves staff training, effective communication,
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motivation, employee supervision etc. These factors helps in product and services development
of Marriott Hotel.
Digital marketing: It is also important opportunity of digital marketing of products and
services of Marriott Hotel. Therefore, operation manager make sure that utilizing digital
merchandising in terms of online booking, connecting Wi-Fi in hotel etc. for raising customers'
attraction, increasing profits and revenue of business.
Customers experiences: Effective customers experiences essential opportunities of
merchandising of products and services. With the help of it, Marriott develops products and
services.
TASK 2
3.1 Different methods of pricing and additional pricing consideration
Pricing of products and services are essential terms affecting sales, buying behaviour of
customers, profits and revenues in business. There are different methods of pricing that utilizes
by manager. Such as:
Costs oriented pricing: It is pricing method that define certain percentage of total cost of
production i.e. added cost of product to determine its selling price in Marriott Hotel. There are
two kinds of pricing such as cost plus and markup pricing (Ramanathan and et.al., 2017).
Market-oriented pricing: In this method, there are different pricing involves like going
rate, differentiate rate etc. Going rate pricing defines a set of price according to prevail price
trends in market.
Services Charges: It is the type of fee that customers are additional pay for purchasing
products or services. There are many hotels and restaurants who charge services fee that is
percentage of total bill. Charging fee for ordering room services, large group dining at restaurant.
Competition based pricing: Many of hospitality companies are setting up their prices
according their competitors pricing. It is organizational decision that price may be low, high or
equal as compared to their competitors.
Minimum charges: It is kind of collection of minimum pay for services from customers
who are purchasing products and services of Marriott Hotel.
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(a) In order to that, Marriott adopt premium pricing method. This method includes in going
pricing as per market oriented pricing methods. Because it offers value based prices and services
to satisfy customers needs and wants. Marriott is applied this method, because they are providing
higher price of product and services have some additional features as compared to their
competitors.
(b) Marriott is not applied another method from above. Because, they are adopting market
oriented pricing method.
3.2 Factors affecting revenues' generation and profitability
High revenue and profitability of hotel is essential part of hospitality industry. But, there
are many factors that are affecting revenue and profitability of business. Such as follows:
Labour intensity: During seasonality, company is hiring more labour for working
speedy. By this way, costs of organization is incurred. Through this, generating average revenue
of company. This effects negatively impact on revenue generation and profitability of Marriott.
Standardisation: If the company is giving high standard services to customers, so that
consumers are coming many times in their hotels (Bharwani and Talib, 2017). This factor affects
revenue and profitability of Marriott Hotel.
Elasticity of demand: If price is increased ultimately products demand is decreased, so
that it decreases profits and low generating revenues of Marriott.
Price: If price of Marriott Hotel provides low pricing of products and services,
customers are more purchasing their services of hotel. This increasing profitability and
generating more revenue of organization.
TASK 3
4.1 Performance measures and appraisal techniques
Measuring performance is essential part of any organization so that employees work
effectively in workplace. Appraisal techniques are used for improving and measuring of
performance of workers of Marriott Hotel.
External comparison: With the help of rating method, company measures and give
appraisal for performance of employees of Marriott Hotel. In this method, manager rank to each
of workers with another employees.
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Sales performance: If sales performance of employees is weak, manger follow rating
scale method for measuring performance of individual in the workplace (Ramanathan and et.al.,
2017). Different criteria involves in this method such as output, initiative, attitude, attendance
etc.
Quality management: Manager of Marriott Hotel measures performance of employees
on the basis of quality management. If the employees are better working in terms of providing
better quality services to customer, manager gives appropriate appraisal to staff (Kandampully,
Zhang and Jaakkola, 2018).
Customers services: Manager of Marriott compare each employees with another in form
of pair by following paired comparison method. This helps in improving performance of
employees according customers' feedback, improvement in satisfaction, resolves issues actively
etc.
4.2 Usefulness and limitation of qualitative and quantitative techniques
Quantitative techniques of appraisal:
It is systematic analysis by using numbers for interpreting data that are important by
accent numbers, measurement and statistical analysis. Therefore, manager of Marriott apply this
method for collecting data in numerical term for appraisal of employee performance.
Advantages:
 Easy to analysis performance.
 Data reliable that are collected.
 Well designed selection process.
Disadvantages:
 Lack of resources for data collection.
 Time consuming and expensive.
 Difficulty in data analysis.
Qualitative techniques' appraisal:
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This technique focus that involves interpretive, naturalistic approach to its subject matter.
It is the detailed description of situations, events, people and interaction from people. Therefore,
manager of Marriott apply this method for identify human behaviour and give appraisal to their
employees.
Advantages:
 Identifies customers taste and preferences.
 Identifies behaviour of human(Kandampully, Zhang and Jaakkola, 2018).
 Open-ended process.
4.3 Approaches to business analysis of hospitality operation
Business analysis approach is the plan that senior or lead business analyst on project that
create describing way that all execution of business analysis activities. It is study discipline of
identifying business needs and determining solutions to business problems. It comprises
marketing mix that consists of four P's stand for product, place, promotion and price.
Products: Marriott Hotel is broad and diversified portfolio of resorts and hotels in
hospitality sectors. Hotel owns and has operations with nearly 30 hotels brands belonging to
various hotels. They offer personalised and premium services to its esteemed guests (Van der
Wagen and Goonetilleke, 2015). Hotels services are involved conference rooms equipped with
the latest technology, medical facilities and other services.
Place: Marriott Hotel has global presence that has spread to 110 countries with nearly
5700 properties. Company is located at prime locations to maintain its distinctive quality and
involve strategic places like highways, near airports and in central and vital parts of cities. It has
capable and trained workforces that assists in direct dealings with its customers (Fleisher and
Bensoussan, 2015).
Price: Marriott Hotel is international hotels that has targeted upper class, corporate,
families as well as travellers as its target customers. Company believes in good food, services at
fair prices and has adopted premium pricing strategy because its offers value based prices and
services.
Promotions: Marriott Hotel works positions of market leader in global arena because of
its high brand recall. It offers innovative to its customers in order to maintain and rewards
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