Analysis of Hospitality Operations and Management at Hotel Hilton

This report provides a comprehensive analysis of hospitality operations and management, using Hotel Hilton as a case study. It begins by examining the nature of hospitality products and services, including perishable, tangible, and intangible elements, along with service areas like room divisions ...Read More

Hospitality Operation And
Management

Table of Contents
INTRODUCTION............................................................................................................3
AC1.1 nature of hospitality product and service areas.....................................................3
AC1.2 Different influence which affect pattern of demand.............................................3
AC1.3 Comparison of customer profile with their expectation and requirements...........4
AC1.4 Factors which affect average spending power in hospitality businesses. ............4
2.1 Key stages in product and service development.........................................................5
AC2.2 features which contribute customer’s perception of product and services............5
AC2.3 Opportunities and constraints affecting product and service development within
Hotel Hilton......................................................................................................................6
AC2.4 merchandising opportunities for hospitality products and services......................7
TASK 2.............................................................................................................................7
AC3.1 Different methods of pricing.................................................................................7
AC3.2 factors which affect revenue generation and profitability of hospitality organisation
...........................................................................................................................................8
TASK 3.............................................................................................................................8
AC4.1 Performance measures and appraisal technique for individual aspect in Hotel
Hilton................................................................................................................................8
AC4.2 various qualitative and quantitative appraisal techniques and their applicability in
organisation. .....................................................................................................................9
AC4.3 Approched to business analysis, evaluation and planning and their applicability in
hotel Hilton.......................................................................................................................9
CONCLUSION...............................................................................................................10
Reference.................................................................................................................................11

INTRODUCTION
Hospitality operation management is the management which is done by
administration of industry to create work which provides highest level of efficiency within an
organisation. In this report chosen organisation is Hotel Hilton. This present report will cover
nature of hospitality product and service areas, different influences affecting pattern of
demand within organisation, factors which affect average spending power in hospitality
business is also discussed in this report. After that in this report it is also analysed product
and service development applied in organisation, features which contribute for customer
perception of products and services is explained and opportunities affecting product and
service development within organisation and merchandising opportunities for products and
services in organisation is also to be analysed.
AC1.1 nature of hospitality product and service areas
In hotel Hilton product and service which cover service areas are perishable, tangible
and intangible elements and service areas. Here is the element which is used by hotel Hilton
is as follows.
Perishable -products of hotel Hilton along with other food and beverages hospitality are not
much durable and perishable in nature.
Tangible and intangible elements- hotel Hilton service quality has two aspects that are
strength and weakness. Tangible elements include interior and exterior design of hotel,
equipments used in hotels and condition regarding cleanliness of hotel is in the eyes of
customers. Intangible elements include services provided to customer, reliability, and other
services which are not visible to customers.(Bowie and et.al., 2016. )
Service areas- in these areas of hotel Hilton include services like room divisions for
customers, food and beverage services and conference hall. These types of services provided
to customer in gaining their satisfaction.
These are the types of products and service areas which are provided to customer in hotel
Hilton to achieve customer loyalty and to maintain best quality in organisation.
AC1.2 Different influence which affect pattern of demand
Business of hotel industries do not have same type of demand in all the seasons, many
factors are there are many factors which affect consumer’s preferences and taste. Major
factors which affect pattern of demand are as follow.
Seasonality- major customers of hotel Hilton are Hikers, climbers and ramblers etc. by which
their seasonal customers are majorly comes in worm season. Therefore, demand of Hotel
Hilton in worm season is high as compared to other seasons.
Time of the week- this includes types of customers which are may be families, couples who
wants to enjoy their time mostly on weekends or it may be some particular vacation in which
they will able to enjoy their days.

Healthy living- This factor affects demand because of the customer who are very much
conscious about their standard of living choose hotels which have high standard level of
sanitation in the organisation.(Wang and et.al., 2016.) In this factor customers are very much
concern about their health which affect their choice of organisation.
Economic factor- this is very crucial factor for hotel industries because if there are any types
of national or regional crises which country face then it will reduce customer in the hotel
because of that crises customers will not be able to spend must on their luxury living.
These are some of the factor which affects customer demand in choosing organisation
and this analysed help Hotel Hilton to manage their funds including these factors in decision-
making process.
AC1.3 Comparison of customer profile with their expectation and requirements
Customer profile may vary because of their different expectation and requirements.
Customer profile of hotel Hilton which is based on the experience of the customer is as
follows.
Types of hospitality business- three types of hospitality business in which they deal are food
and beverages, accommodation and travel and tourism sector. Hotel Hilton mainly based on
accommodation which they provide to customers therefore, customer attract more which
preference has high accommodation facility.(Chen and King-Jang, 2018.)
Price consideration- major types of customer in this hotel are families and couple and their
main focus is to get best flexibility therefore, they may pay higher prices which offered by
organisation and this leads to pay higher price for all the service they pay to customers.
Meal Experience- this factor depends on customer taste. Different customers of different
regions have different taste therefore standard of meal of customer is high in the organisation.
Therefore, hotel Hilton has to maintain standard quality of food before provide them to
customers.
Expectation requirements- In hotel Hilton customers comes from different region therefore
they may expect service from hotel in their accordance for which hotel Hilton is providing
different services to customers which fulfils customer expectations from the organisation.
These are the factors which shows comparison of customer profile in hotel Hilton and
which also provide details regarding their expectations and requirements.
AC1.4 Factors which affect average spending power in hospitality businesses.
In hospitality sectors, customers are offered with many offers and discounts from
services which shows different price level, and to find customer’s overall desire Average
spending power helps to achieve that statistics. Different factors which comes under this are.
Size of income- this factor depends on customer’s overall income level which upgrade
average spending power shows customer decision regarding their income efficiency.

Status- It is another factor on which customer status shows their average monthly spending.
If customer is a social person, he/she will not think on buying standard hotel accommodation
and will not minimize cost. Infect customer invest in higher cost to get effective service from
organisation.(Martínez-Martínez and et.al., 2018.)
Social and cultural influence- this is also one of the factor which affects customer spending
power decision. Sometimes especially in the cultural events or in festival person spends more
than on regular basis.
Economic situations- This is the factor which reduces customer average spending power and
it is above the expectations of customers. Because of this situation customer are forced to cost
less which also maintains their average spending power decision.(Davis and et.al., 2018. )
These are some of the factor which shows customer’s average spending power in
hospitality business and helps organisation to maintain their policies which helps them to
provide services which satisfy customer buying decision.
2.1 Key stages in product and service development
To develop product and services in hotel Hilton their operational managers have to
research about what factor is going to develop in organisation to improve quality of services
in organisation. A point which helps in establishes products and services in organisation are.
Idea evaluation- under these, operational managers of the hotel Hilton has to test products
and services before introduce them in front of customers. New opportunities and idea which
they develop in an organisation has to be tested first then it will be introduced among
customers.(Morgan, 2018.)
Market research- under this, operational manager has to do research regarding what factors
needs to develop in organisation to increase overall growth of performance and what factors
fulfils customer satisfaction point in market.
Market segmentation- In every hotel business, market segmentation plays an important role
to compare price-taking initiative or to cut cost of the organisation. To attract more customer
cost needs to be cut in organisation.
Advertising and awareness- according to this point operational manager has to advertise
their products services through advertisement among customers so that it creates awareness
and improved sales in organisation.
AC2.2 features which contribute customer’s perception of product and services
To attract customers in the Hilton organisation, they have to create marketing
research which helps in establish strong brand image, service quality, effective products and
services etc. by which they will be able to attract more customers in the organisation. Strong
brand image is one of the factor which helps in establish positive perception of the customer
towards an organisation. Arrangements like food menu under which nutritious, delicious and
if healthy products offered to customers then this activity of them helps to establish effective
customer base.(Shukla, 2018.) Points which shows customer’s perception are brand image,

nutrition and dietary requirement, disabled access, availability of resources, style of service,
standardisation and space utilisation.
Brand image- this is the important factor which every organisation has to create for
development of their products and services among customers which helps them to stand in
front of their competitors in the business market.
Nutrition and Dietary requirement- hotel Hilton has maintain food menu in accordance
with customer preferences so that it helps them to establish loyal customer base. As this is
world where people are more concern about what they are eating and ingredients used in that
preparation food therefore organisation has to maintain effective food menu in their
organisation.
Availability of resources- resources like indoor outdoor premises, birthday celebration,
happy hours is some of the elements which attract customers in organisation. This includes
letting customer to use enough space in organisation is another tool to get positive perception
from them.
These are some of the customer perception point which Hotel Hilton product has to
apply in their organisation to get more and more customer in the organisation.
AC2.3 Opportunities and constraints affecting product and service development within Hotel
Hilton
Opportunities is process which helps business to grow in market. These opportunities
help business to increase their sales revenue and also to increase profit of the company.
(Shukla, 2018.) whereas constraints means restriction which organisation face in doing their
business operation. Constraints in company reduce sales revenue and also reduce company’s
profit.
Opportunities-
 Hilton hotel has many opportunities to increase their overall performance to attract
customers in organisation. They are providing much new flexibility to customers
which grasp variety of customer in organisation. These opportunities make one of the
strong firms in business of hospitality sector. Opportunities to create effective indoor
and outdoor management for customer helps organisation to create positive perception
in minds of the customers.
Constraints-
 Constraints here means any failure in providing facilities to customers and other
competitors are providing that facilities to customers and are attracting more customer
in organisation. Hotel Hilton has to face these constraints regarding very small
business opportunities and less business park in surrounding.
These are the constraints and opportunities which affect hotel Hilton’s products and
service to develop them in organisation. Organisation has to make effective policies by

which they will able to use effective outcomes from opportunities and to solve constraints
which create problem in developing those products and services in organisation.
AC2.4 merchandising opportunities for hospitality products and services
Now a day’s hospitality organisations have many lot merchandising opportunities in
developing their overall business growth in the market.(introduction to mechandising,2018.)
In this fast world people have to travel lot for purpose of both business and for personal use,
this makes huge opportunity for hospitality organisation to get growth in market. These
opportunities are-
 Travellers make orders of food according to their purchasing power, whether it is of
high quality or low quality.(Zach and et.al., 2018. ) This created an opportunities for
hospitality organisation by which they can create according to premium cost of the
customers and will able to generate high revenue.
 Another good merchandising event is that if economic conditions of travellers are
good then they will easily create order which is another opportunity for hospitality
organisation in increasing their business growth.
These are some merchandising opportunities which hospitality organisation gets from
travellers and this opportunity helps them to improve overall performance which helps in
generate higher amount of sales and revenue which increases overall profitability of the
company. But to develop that opportunities organisation have to made effective policies and
procedure by which they will able to generate organisation growth in business market.
TASK 2
AC3.1 Different methods of pricing
Different methods of pricing which are used by hotel Hilton in their organisation are:
cost based pricing- under this some percentage of profit margins is added to company's cost
product to obtain final price of the goods and services of the organisation.(Smriti
chand,2018.) Under this two types of methods are include that is cost plus pricing and
markup pricing. Under cost plus pricing, a fixed percentage of the total profit is added to total
cost to set products pricing in organisation and under markup pricing, to get selling price of
the product a fixed percentage of cost is added to get selling price.
Market oriented- this pricing is used by company to provide effective competition to other
compeitiors of the business market. Under this company fixed price of the products by
comapring its price with similar products of the market.(Ondrušová, 2016.)
Cover charge- this pricing strategies used by organisation to charge fee at an entrance of the
organisation. This generally used in hotels which have nighclubs, bars and restaurants.
Organisation charge this fee in the final bill of the person.

Minimum charge- this pricing strategies used by organisation to attract customers in the
organisation. Under this organisation charge minimum price in the invoice of the customers
so that they will able to maintain loyal customer base in the organisation.
These are some of the pricing methods which are used by hospitality organisation to
set or decide prices of their products and service which they charge from the customers in the
organisation.
AC3.2 factors which affect revenue generation and profitability of hospitality organisation
Factor which affect revenue generation and profitability in hospitality organisations
are as follows-
labour intensity- this is one of the factor which affect company's revenue generation and
profitability. Under this company has to provide effective remunerations to labour of the
organisation by which they work with full motivation and perform well to achieve
organisational objectives.(Jenkins and Williamson, 2015.)
Elasticity of demand- to achieve profitability company's revnue must be exceeding its cost.
If company did not able to generate effective revnue in company then they will not able
generate profit and this affect elasticiy of demand of the company.
Price- price is the another factor which affect revenue and profitability. Organisation has to
decide effective fair price for the goods and services by which they will able to attract more
and more customers in the organisation. If price of a product was too much then customer
will get attracted to company who are providing same product with fair price.
Procurement- to increase sales in the organisation managers of the company has to develop
effective communication with the procuement department so that by taking consultaion from
procurement department company will able to decide policies by which company cost will
save and supply chain got increases.
Standardisation- it means to develop effective innovation process in organisation.
Standardisation helps managers of the organisation to develop effective innovation in
product, becausse it provides structure method and data by which they will able to save time
and cost of the hospitality organisation.
These are factor which affect revenue and profitability of the hospitality organisation
because it needs cost and time both to apply these factors on the organisation for effective
profitability and revenue.
TASK 3
AC4.1 Performance measures and appraisal technique for individual aspect in Hotel Hilton
To find performnace measures and performance appraisal of the individuals who are
working organisation managers apply some of these points to find.
Quality management- under this method particulars performance will be measured by their
qulity management. In which company will conider individual performance in serving guest
of the organisation. Their way to provide guest desire and their communication with the guest

of the organisation.(Brinckmann and Kim, 2015.) For individuals to deliver high quality of
service is the main challenge because of this their appraisal in the company will be decided
by the executives.
Customer service- organisation will measure individual performace by observing their
customer service. In this company will measure performance of individual in pleading
customer also their communications skill, their listning skill in receiving order from
customer, their way to provide guide about the hotel menu among customer is all will be
observe by organisation.
Sales performance- this is another factor from individual aspect that if company's have
higher sale and profitability in organisation customers of the business market will
automatically get attracted towrds organisation which helps them to improve overall
profitability and sales volume of the company.
AC4.2 various qualitative and quantitative appraisal techniques and their applicability in
organisation.
Qualitative and quantitative teachniques are used in hospitality organisation to
perform their business growth and measurement.(Brannen, 2017) Certain points which shows
this performance are-
data analysis and evaluation- they are the numerical statistics by which company able to
comapre their profts and products in statistical manner by which effective decisions are
developed by organisation to improve their overall profitability in the business market. This
is the type of qualitative technique which is impliment by company to measure overall
performance of the company.
External comparison- under this comparision of customers in the organisation is created. To
increase overall performance and to measure frowth performance company have to offers
various discounts and offer by which customer of the organisation get attracted and which
leads to increase profitability of the organisation. Company may appliy this technique to
engage customer in organisation.
AC4.3 Approched to business analysis, evaluation and planning and their applicability in
hotel Hilton
Business analysis- it is the procees of determining company's needs and to find solutions of
that needs to apply in the orgaisation. This process is done by analysit to engage customer
and stakeholders in the organisation.(Hartas, 2015)
Business evaluation- to measure owner's interest in business, and economic value of
business organisation this process is applied which also provide fair value of business and
sales of the organisation.
Business planning- it is a written document under which planning is done by managers to
achieve business growth.
Hotel Hilton appliy all these procedure in organisation just to achieve business growth
from its competitors of market. They analyse business to find targeted market and future
goals of organisation. Evaluation is done by managers to find factors which improves overall

economic value of the organisation. Business planning done by organisation to plan strategies
by which company will get to improve overall performance and profitability of the
organisation.
CONCLUSION
From the above study it can be concluded that hospitality management is the factor
which improves performance of the company. Under this report it is dicussed about nature of
hospitality products and service area. After that in this report different influence which affect
pattern of demand is explained. Comparison of customer profile with their expectation and
requirements and Factors which affect average spending power in hospitality businesses is
also explained in this report. Further, in this report key stages in product and service
development and features which contribute customer’s perception of product and services
and opportunities and constraints affecting product and service development within Hotel
Hilton and merchandising opportunities for hospitality products and services is explained in
this report. Further, in this report different methods of pricing and factors which affect
revenue generation and profitability of hospitality organisation is studied in this report. After
that performance measures and appraisal technique for individual aspect in Hotel Hilton and
various qualitative and quantitative appraisal techniques and their applicability in
organisation with approched to business analysis, evaluation and planning and their
applicability in hotel Hilton is disussed in this report.

Reference
Books and Journals
Bowie and et.al., 2016. Hospitality marketing. Routledge.
Chen, S.H. and King-Jang, Y., 2018. Reduce customer variability and improve service
quality-The case of hotel industry. Journal of Marketing and HR. 9. pp.503-516.
Davis and et.al., 2018. Food and beverage management. Routledge.
Martínez-Martínez and et.al., 2018. Improving Environmental Management Systems by ISO
9001 in the Spanish Hospitality Sector. In Sustainability in Innovation and
Entrepreneurship (pp. 87-101). Springer, Cham.
Morgan, K., 2018. An Empirical Study in the US Hotel Industry: How Quality Assurance,
Customer Satisfaction, Brand Signaling, and Guest Loyalty Impact Revenue.
Shukla, Y., 2018. New opportunities in inventory management in the hotel industry. Journal
of Commerce, Economics & Management. 2(1). pp.46-57.
Zach and et.al., 2018. Learning from press releases: implications for hospitality
innovation. International Journal of Contemporary Hospitality Management. 30(1).
pp.95-113.
Bernard, H.R., 2017. Research methods in anthropology: Qualitative and quantitative
approaches. Rowman & Littlefield.
Brannen, J., 2017. Combining qualitative and quantitative approaches: an overview.
In Mixing methods: Qualitative and quantitative research (pp. 3-37). Routledge.
Brinckmann, J. and Kim, S.M., 2015. Why we plan: The impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic
Entrepreneurship Journal. 9(2). pp.153-166.
Hartas, D. ed., 2015. Educational research and inquiry: Qualitative and quantitative
approaches. Bloomsbury Publishing.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis.
Routledge.
Ondrušová, L., 2016. Management decisions in transfer pricing. Strategic
Management. 21(1). pp.3-7.
Wang and et.al., 2016. Factors affecting hotels' adoption of mobile reservation systems: A
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