Hospitality Operation Management Report: Hotel Crowne Plaza Analysis

This report provides a comprehensive analysis of the hospitality operations at Hotel Crowne Plaza. It examines the nature of hospitality products and services, evaluating factors that affect demand patterns, customer profiles, and spending power. The report delves into product and service dev...Read More

HOSPITALITY
OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Examination of nature of hospitality product and service....................................................1
1.2 Evaluation of different elements which affects patterns of demand within hospitality
organisation.................................................................................................................................2
1.3 Comparison in customer profiles and their expectations......................................................2
1.4 Analysis of factors which affects average spending power (ASP).......................................3
2.1 Evaluation of key stages in product and service development.............................................3
2.2 Features which assist in customers’ perception of products and services............................4
2.3 Analysis opportunities affecting product and service development.....................................5
2.4 Evaluation of different merchandising opportunities for hospitality organisation...............5
TASK 2............................................................................................................................................6
3.1 Different methods of pricing.................................................................................................6
3.2 Elements which affects business organisation's profitability................................................6
TASK 3............................................................................................................................................7
4.1 Performance measurement techniques for analysing performance of individual.................7
4.2 Advantage and disadvantage of different performance measurement techniques and their
implementation............................................................................................................................8
4.3 Implementation of approaches for analysis, evaluation and planning business operations
and make its proposal..................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry deals in accommodation, dinning facility, open area for party, bar,
banquet hall, etc. These are the facilities which are crucial in current era because role of travel
and tourism is increasing in current scenario. These days people visit different places which
different reasons such as business purpose, family trip, education tours, business visit, etc. Hence
hospitality organisation has to make changes in their services as per purpose of consumers. There
are many departments which are working in order to provide best services to consumer. This is
relevant for making good brand image in hospitality industry (Anderson and Xie, 2010). In this
report, there is discussion of Hotel Crowne Plaza. This hotel serve in different parts of country as
per demand of consumers, this report covers nature of product and services served by hospitality
organisation, different elements which affects demand of consumer, comparison in consumer
profiles and expectation, factors affecting average spending power, stages to develop new
product and services, contribution towards customer, various merchandising opportunities,
different pricing strategies, factors which affects profits and revenues, methods of performance
measurements and at last its advantages and disadvantages.
TASK 1
1.1 Examination of nature of hospitality product and service
In hospitality organisation, there are many departments which provides different products
and services. Nature of product and services areas in Hotel Crowne Plaza are discussed as under-
Perishable elements- Perishable elements means elements which gets decay soon. These
elements has to be put within specified temperature to use for longer time. There are many food
and beverages which are of perishable nature. Hence such product has to be consumed soon.
Tangible/ intangible elements- tangible elements can be seen and touched, while
intangible elements can not be seen or touched, they can only be felt. Ambience of Hotel Crowne
Plaza, cutlery, etc. are part of tangible elements, while serving style of waiters, courtesy of staff
at Hotel Crowne Plaza are part of intangible asset (Chang, Gong and Shum, 2011).
Inseparable elements- At hotel, there are some services which can be separated. For
instance: ordering food and beverages at Hotel Crowne Plaza and serving of waiter can not be
separated. Secondly booking room means basic facilities such asked, television , bathroom, etc.
can be separated.
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Service areas- In hospitality industry, there are different services such as room services,
house keeping, food and beverages, banquet halls, etc. which are part of services provided by
Hotel Crowne Plaza.
1.2 Evaluation of different elements which affects patterns of demand within hospitality
organisation
In hotel industry, there are different factors which gets affects demand of consumer. It is
responsibility of managers of Hotel Crowne Plaza to analyse these factors and provide product
and services to consumers. Some of the factors are as under-
Seasonality- Season is one of the factor which affects demand of hotels. For instance: in
wedding season, hotels are over crowded. In vacations, family, friends group bookings are more.
Time of day/week- As comparison to week days, in week ends hotels are crowded. There
are more advance bookings of open areas for kitty area. While in week days, there is booking of
conference hall for corporate bookings (Chon and Yu, 2012).
Cultural, regional and ethnic values- Cultural values of consumer for main factor which
affects demand for hotels and related services. Some people believe in healthy food and
beverages, hence these factors affects demand for hospitality services.
Economic factors- Economic factor is most crucial element which affects demand for
hotel services. For instance: person has low income, then they do not visit hotels regularly and
does not want luxurious services.
1.3 Comparison in customer profiles and their expectations
In Hotel Crowne Plaza, there are different parts of consumers which has different
demand. As per their requirement, income status, etc. Some of the factors which creates
difference in profiles and demand of consumers are as under-
Spending power- Spending power of consumer is directly related with income level. For
instance: a reason which has good income they are ready to spend more at Hotel Crowne Plaza
but at same time, they have high expectation.
Types of hospitality business- There are many services which are provided by Hotel
Crowne Plaza such as accommodation, restaurant, space for meeting or party, etc. For instance:
business person demands conference hall within sitting capacity of 100 persons. While at the
same time, friends group want good restaurant services with gaming zone and excellent
ambiance (Fantazy, Kumar and Kumar, 2010).
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Menu/accommodation range- Menu is the card which contains different dishes. There is
difference in demand of consumer, as per change in season, peer members, etc. In Hotel Crowne
Plaza, there are different types of rooms which provide to consumers for accommodation
facilities. For instance: family on trip requires proper services which lavish services, while a
group of friends has expectation room with good music system, WiFi, etc.
Pricing considerations- Pricing is one off the important factor which affects expectation
of consumers. For instance: family on trip has expectation of good services because they pay to
enjoy vacations and ready to pay more. While at the same time, corporate person has expectation
of within the budget services (Gibson, 2012).
1.4 Analysis of factors which affects average spending power (ASP)
In Hospitality industry, there is price charged as per increment in services. In Hotel
Crowne Plaza, there are different types of consumers, having difference in income standard, etc.
this affects spending power of consumers. Some of the factors are discussed as under-
Income- If income of consumer is low, then frequency to visit hotel is also low. While
person with good income visit frequently and want up to date services. Economic status is one of
the crucial factor which affects spending power of consumer. If economic situation is not good,
there is less preference to hotel services.
Status- Status includes living of standard of consumers. There is important role of status
which affects demand for hospitality industry. If individual has good and luxurious standards,
then they are ready to spend on hospitality services. Hence status also affects spending power of
consumers.
Social/cultural influences- Religious, cultural and social values of consumer affects
spending power on hospitality industry in negative manner. If belief, values does not allow
individual to spend more for hospitality, then they does not give spend more on hospitality
industry.
2.1 Evaluation of key stages in product and service development
To make long term existence in industry, managers of Hotel Crowne Plaza must analyse
external market and demand of consumers and renovate their product and services (J. Harrington
and Ottenbacher, 2011). As there is competition in this stage, so new product must be developed.
Following steps are taken by managers of Hotel Crowne Plaza for new product development
process-
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Idea generation- In first idea is generated in mind of managers of Hotel Crowne Plaza to
maintain same brand image.
Idea screening- After generation idea, managers of Hotel Crowne Plaza perform
scruntny to select best option out of it. This step is relevant and crucial because after this step,
actions are done to achieve it.
Concept development and testing- After selecting best idea, workings are done in
relation to it. Different concepts are developed for execution of idea. There are different ideas
through which idea can be implemented . Hence different actions are tested (Kusluvan,
Kusluvan, Ilhan and Buyruk, 2010).
Business analysis- Business analysis is done whether select approach is relevant which is
beneficial from business prospects i.e. revenue earning and new as per market. In this best
approach is selected by managers of Hotel Crowne Plaza so they can shine in industry.
Product development- After analysing option with context to business, then product
development stage happens. This is the stage of execution of all above planning.
Test marketing- After developing product, testing is done. This is done among small
number of people and their reviews are collected by Hotel Crowne Plaza. In case of negative
review corrective actions are taken (Zhang, Joglekar and Verma, 2012).
Commercialisation and launch- AT last stage of commercialisation and launching
happens. In case of positive feedback product is launched in market. There are possibilities of
some improvement in product and services which can be done with getting feedback from
targeted consumers.
2.2 Features which assist in customers’ perception of products and services
Customer is core factor for Hotel Crowne Plaza which helps them to make long term
sustainability in industry. There are some factors which helps to maintain long term relations
with consumers and maintain same brand image (Mok, Sparks and Kadampully, 2013).
Brand image- Brand image of restaurant is one of the important aspect which affects
consumer perception. Brand image of Hotel Crowne Plaza, hence consumer prefer to avail
services from this association.
Disabled access- There are some people who has some disability, hence if there is proper
access for such people, then this makes consumer to visit Hotel Crowne Plaza frequently. In case
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of this organisation there is proper ram area, wheel chair, Brail menu, easy lift access for disable
people, etc. which helps hem to make
Availability of resources- There is requirement of different resources for providing good
quality product and services to consumers. Resources such as swimming pool facility, disc,
terrace pub, etc. which is relevant for providing satisfaction to consumer.
Style of service- In hospitality industry, style of serving and treating consumers make
them satisfied. For instance: managers of Hotel Crowne Plaza treat consumers with respect and
pride, then they prefer to avail services from them (Myung, McClaren and Li, 2012).
Standardisation and space utilisation- In hotel, there are some set benchmarks above it
they ave to perform. For instance: swimming pool is cleaned twice a week, then this makes
services up to the mark. Space must be used properly and in appropriate manner.
2.3 Analysis opportunities affecting product and service development
As there is competition in hospitality industry, so it is relevant to make policies through
which brand image of Hotel Crowne Plaza gets improved. There is some scope of improvement
in services of organisation to maintain long term relations with consumers. Some factors are
discussed as under-
 There is scope for some improvement in services for disable access. Managers of Hotel
Crowne Plaza must improve facilities. This assist in providing equal rights to disable
people and provides satisfaction to consumers.
 There is requirement some low budget rooms so they can satisfy demand of middle class
family. This helps to provide service for every income consumers and hence consumer
base for Hotel Crowne Plaza increases.
 Style of serving used at Hotel Crowne Plaza is old. There is requirement of training to
employees regarding to decency, courtesy, etc. Employees must be trained for analysing
culture of consumers, so familiar environment can be provided.
 There must be proper planning related to employees. As there is difference in skills,
characteristics of employees so they must be placed accordingly. This is relevant and
crucial for providing appropriate services.
2.4 Evaluation of different merchandising opportunities for hospitality organisation
Merchandising means activities which are relevant for promoting sales at retail outlet.
This can be done through special offers, pricing strategies, etc. According to Nickson, 2013
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merchandising is marketing product and services at right place, with right technique, at
appropriate price with specified quantity and quality. In hospitality industry, there is competition,
so it is responsibility of man angers of Hotel Crowne Plaza to improve marketing techniques.
Managers of Hotel Crowne Plaza has to make policies through which they can
merchandise product and services to consumers. This helps to provide information to consumer
and compete with other firms. There are different events which are sponsored by Hotel Crowne
Plaza. Managers of Hotel Crowne Plaza welcome different personalities, so this works as
marketing stunt for organisation. Employees takes part in conference at Hotel Crowne Plaza, so
live screening is done about hotel and its services to acknowledge the about association (Paryani,
Masoudi and Cudney, 2010).
TASK 2
3.1 Different methods of pricing
Price is the charge which is charged by Hotel Crowne Plaza with consumers in lieu of
availing services. There are different strategies i.e. market oriented, minimum charge which are
followed by managers of Hotel Crowne Plaza.
 Market oriented method is used in peak season of consumers. This is the most profitable
time for Hotel Crowne Plaza because there is rush of consumers at organisation. For
instance: at weekends, Christmas, New year, etc. are some time when hotels are book in
advance and hence price which is prevailed in market are charged. This is the price is
higher then normal price.
 Minimum price is charge when there is off season for hotel industry. When there is no
consumers, there are different offers, discounts planned by managers of Hotel Crowne
Plaza in order to at-least recover cost of resources. This cost is beneficial for providing
different benefits to consumers and hence they are satisfied with services of hotel.
3.2 Elements which affects business organisation's profitability
Hotel Crowne Plaza operates in industry in order to provide good services, so they can
earn good profits. This also assist in maintaining good image in industry and long term assistance
can be achieved. There are some factors which affects business growth and development and its
profitability such as elasticity of demand (Pullman and Rodgers, 2010). Such factors are
discussed as under-
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Labour Intensity- Employees in hotel plays crucial role. As in hospitality organisation,
there are different organisations such as food and beverages, house keeping, etc. which are
performed with labour. Hence in case labour turnover is high, then this affects brand image of
Hotel Crowne Plaza in negative manner.
Standardisation- Standardisation is the set benchmark which are relevant for working of
organisation. If working style of Hotel Crowne Plaza is not up to the mark, then this affects
quality of product and services in negative manner. This affects consumers satisfaction
(Rodríguez-Antón and et. al., 2012).
Price- Price is one if the important factor which has to be considered by managers of
Hotel Crowne Plaza because if product and services are overpriced, then customers does not
want to avail services. This affects profits and revenue of organisation adversely.
TASK 3
4.1 Performance measurement techniques for analysing performance of individual
Performance measurement means analysing performance of personnel that it is up to the
mark or not. There are some set benchmarks established by managers of Hotel Crowne Plaza
which has to be achieved by employees. If performance is not up to the the mark then managers
has to take corrective measure. This helps to improve performance of personnel which ultimately
improve organisation's performance. Some of the measures used by Hotel Crowne Plaza are as
under-
Quality Management- This measure is used in quality of eatables. In hotel, there are
different items which are produced by Chef. Hence with measure quality, taste of food it is easy
to analyse performance of individual. In Hotel Crowne Plaza, there are many innovations done in
food items, so this technique is used to make perfect dish.
Speed of Delivery/ Customer Service- In hotel, satisfaction of customer is relevant. If
customers are satisfied, then growth and development of organisation is sure. If employees is
serving with courtesy, patience to consumer, then on the basis of it, performance of employees
can be evaluated.
External comparison- There are many employees working in organisation performing
there best. In order to improve performance of employees, managers of Hotel Crowne Plaza can
compare of one employee with other. Hence this creates competitive environment and workers
tries to give best.
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Sales performance/gross profit/ net profit- This measures can be used for sales personnel
of Hotel Crowne Plaza. If sales managers is able to attain sales target, then performance is up to
the mark and vice versa (Sigala, Christou and Gretzel, U. eds., 2012).
4.2 Advantage and disadvantage of different performance measurement techniques and their
implementation
Qualitative performance measurement techniques means techniques which helps to
analyse performance of employees in terms of quality of services. This method is more relevant
in terms of organisational context because this approach does not give preference to personal
characteristics of employee's.
Quantitative approach means quantity of benefits are analysed. As per this method,
profits earned due to specific department are analysed. This method is less practical because in
this method personal characteristic of employee is also analysed.
Hence managers of Hotel Crowne Plaza must use qualitative method because this method
is relevant for achieving targets and improvement in professional skills is possible and
development of overall organisation is possible. Workforce of Hotel Crowne Plaza is also
satisfied that there skills, knowledge are countable.
4.3 Implementation of approaches for analysis, evaluation and planning business operations and
make its proposal
Business analysis means actions for examination of factors which affects business
operations in negative or positive manner. Business analysis is essential and relevant because it
helps to plan and perform further business operations.
Business evaluation means judge or check resources which are used within organisation.
In Hotel Crowne Plaza, there is requirement of different types of resources such as human,
financial, IT, etc. So with the help of business evaluation, positive actions can be taken.
Business planning is one of the crucial method which helps to plan actions, resources
which are relevant for performing business operations (Xu and Gursoy, 2015). For instance:
there is requirement of sales personnel in organisation, then planning is done related to source of
selection, training of new candidate, etc.
in order to select candidate for sales manager assistant. So analysis is done to know
which type of candidate is requirement within organisation. After analysis evaluation is done
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regarding method through which selection is done. At last planning is done related to induction,
orientation, training, etc.
CONCLUSION
From the above discussion hospitality organisation delivers different types of services
such as perishable good. There are different factors such as seasonality which affects business
and as per change in profile of consumer demands and expectations affects. Apart from this,
income, social and cultural factors affects spending power of consumer on hospitality services.
Customers prefers to avail services from organisation after considering standardisation, brand
image of association. Merchandising opportunities such as special events helps to promotes
services and products of hotel. Market oriented pricing strategy is best for maintain good profits
and brand image. Employee's performance is crucial factor which acts as hype or low for
business. Hence performance measurement can be done with the help of quality of services and
comparison with external factors.
Anderson, C. K. and Xie, X., 2010Chang, S., Gong, Y. and Shum, C., 2011Chon, K. S. and Yu,
L., 2012Fantazy, K. A., Kumar, V. and Kumar, U., 2010Gibson, P., 2012J. Harrington,
R. and C. Ottenbacher, M., 2011Kusluvan, S., Kusluvan, Z., Ilhan, I. and Buyruk, L.,
2010Mok, C., Sparks, B. and Kadampully, J., 2013Myung, E., McClaren, A. and Li, L.,
2012Nickson, D., 2013Paryani, K., Masoudi, A. and Cudney, E. A., 2010.Pullman, M.
and Rodgers, S., 2010Rodríguez-Antón, J. M. and et. al., 2012Sigala, M., Christou, E.
and Gretzel, U. eds., 2012Xu, X. and Gursoy, D., 2015Zhang, J. J., Joglekar, N. and
Verma, R., 2012
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REFERENCES
Books and Journals
Anderson, C. K. and Xie, X., 2010. Improving hospitality industry sales: Twenty-five years of
revenue management.Cornell Hospitality Quarterly. 51(1). pp.53-67.
Chang, S., Gong, Y. and Shum, C., 2011. Promoting innovation in hospitality companies through
human resource management practices. International Journal of Hospitality
Management. 30(4). pp.812-818.
Chon, K. S. and Yu, L., 2012. The international hospitality business: Management and
operations. Routledge.
Fantazy, K. A., Kumar, V. and Kumar, U., 2010. Supply management practices and performance
in the Canadian hospitality industry. International Journal of Hospitality Management.
29(4). pp.685-693.
Gibson, P., 2012. Cruise operations management: Hospitality perspectives. Routledge.
J. Harrington, R. and C. Ottenbacher, M., 2011. Strategic management: An analysis of its
representation and focus in recent hospitality research. International Journal of
Contemporary Hospitality Management. 23(4). pp.439-462.
Kusluvan, S., Kusluvan, Z., Ilhan, I. and Buyruk, L., 2010. The human dimension: A review of
human resources management issues in the tourism and hospitality industry. Cornell
Hospitality Quarterly. 51(2). pp.171-214.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Myung, E., McClaren, A. and Li, L., 2012. Environmentally related research in scholarly
hospitality journals: Current status and future opportunities. International Journal of
Hospitality Management. 31(4). pp.1264-1275.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Paryani, K., Masoudi, A. and Cudney, E. A., 2010. QFD application in the hospitality industry:
A hotel case study. The Quality Management Journal. 17(1). p.7.
Pullman, M. and Rodgers, S., 2010. Capacity management for hospitality and tourism: A review
of current approaches.International Journal of Hospitality Management. 29(1). pp.177-
187.
Rodríguez-Antón, J. M. and et. al., 2012. Use of different sustainability management systems in
the hospitality industry. The case of Spanish hotels. Journal of Cleaner Production.
22(1). pp.76-84.
Sigala, M., Christou, E. and Gretzel, U. eds., 2012. Social media in travel, tourism and
hospitality: Theory, practice and cases. Ashgate Publishing, Ltd..
Xu, X. and Gursoy, D., 2015. A conceptual framework of sustainable hospitality supply chain
management. Journal of Hospitality Marketing & Management. 24(3). pp.229-259.
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Zhang, J. J., Joglekar, N. and Verma, R., 2012. Pushing the frontier of sustainable service
operations management: Evidence from US hospitality industry. Journal of Service
Management. 23(3). pp.377-399.
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