Report on Hospitality Operations Management at JW Marriott Hotel

This report provides a comprehensive analysis of hospitality operations management, using JW Marriott Hotel as a case study. It delves into the nature of hospitality service areas, examining divisions like rooms, food, and beverages, and their impact on customer experiences. The report explores factors affecting demand patterns, including cultural, economic, and seasonal influences, and compares customer profiles and their differing expectations. It also analyzes the average spending power within the hospitality sector and investigates the stages of product and service development, including idea generation, screening, concept development, product development, marketing, commercialization, and launch. Furthermore, the report examines customer perceptions of products and services, different merchandising opportunities, pricing methods, factors influencing revenue generation and profitability, performance measures, appraisal techniques, and approaches to business analysis, evaluation, and planning. Overall, the report offers valuable insights into the operational strategies and challenges faced by hotels in the competitive hospitality industry.

HOSPITALITY OPERATIONS
MANAGEMENT
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Nature of hospitality service areas.........................................................................................4
1.2 Factors affecting patterns of demand ....................................................................................5
1.3 Compare customer profiles and their differing expectations and requirements....................5
1.4 Average Spending Power in hospitality businesses...............................................................6
AC2.1 Stages in product and service development ....................................................................6
AC2.2 Customers’ perception of products and services..............................................................7
AC2.3 Product and service development ....................................................................................8
AC2.4 Different merchandising opportunities ............................................................................8
TASK 2............................................................................................................................................9
AC3.1 Different methods of pricing ...........................................................................................9
AC3.2 Factors affecting revenue generation and profitability ....................................................9
TASK 3..........................................................................................................................................10
AC4.1 Performance measures and appraisal techniques ..........................................................10
AC4.2 Usefulness and limitations of various quantitative and qualitative appraisal techniques
....................................................................................................................................................11
AC4.3 Approaches to business analysis, evaluation and planning ...........................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Operations management is defined as that branch of management which is considered as
the pillars of the hotel industry. It mainly deals with designing, implementing and monitoring of
the operational activities for providing goods and services (Operation Management, 2018).
Furthermore, it puts insights on the entire planning, executing, guiding of the organization’s
conversion of staff’s effort to transform the raw materials into presentable edible product or
service. This assignment is going to portray about different factors that has an effect on the
services including varied stages of the product development and customers’ profiles. It will in
this context, JW Marriott Hotel will be considered to recognize a range of operations and its
related tasks allocation such as division of rooms, foods and beverages and many more.
Moreover, it will also include about the overall assessment of the hospitality environment of JW
Marriott Hotel to accomplish earnings and revenues generation in efficient as well as effective
manner.
TASK 1
1.1 Nature of hospitality service areas
The hospitality sector has many service areas and in specific reference to Marriottt Hotel,
division of rooms, foods and beverages etc that have been taken to understand the vital
operations and tasks allocation among their staff for effective working environment. Moreover,
this nature can be categorised on basis of three most important divisions. Firstly, the most
generic component is tangible or intangible element of hotel Marriottt. Rooms division have a
concrete presence and visibility to its clients’ that can be sensed using the senses of humans in
appropriate manner. Along with this, the intangible traits include architecture, setup and overall
look which cannot be described without use (Hitt, Xu and Carnes, 2016). Next is the perishable
element that definitely comes under all service areas perishable and are easily consumable by the
consumers to target the desired set of people. Example, accessories, furniture etc Lastly, the
inseparable element shed light on the quality component and involves a human connect to gain
the empathy and a reliable validation that help in generating profits for this hotel. Along with
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these, the service areas in regard to division of rooms are meant to give comfort, ease with
proper security to their visitors to stay in amiable surroundings with home like feeling.
1.2 Factors affecting patterns of demand
Hotel Marriottt has been into business for years now and now molds their operations
management that influences its overall productivity and profit making. However, there is an
extensive range in terms of factors that support in the complete acceleration of their services to
flourish. This involves Cultural Factor, Healthy Living Factor, Economic Factor, Ethnic
Influences Factor, Seasonality Factor and more. Culture infers the architecture and background
in the interiors of rooms and lobbies with reception areas. The focus is comfortability factor in
the room allocation and outlining that is either based on any theme, or related to historic event so
that their customers’ can feel connected and understand the significance. Moreover, healthy
living emphasis on the working pattern of people and their hygiene and sanitary schedule on all
days, including visit after each visit (Kato and et.al., 2015). For instance, during holidays or
festivals, people plan to go out and visit and need proper environment to enjoy without getting
disruptions. Along with, Economy is the driving force to make any plan in festivals, vacations or
attending any event to enjoy the hotel services in lavish order. This economic factor is
somewhere related to work ethics as it can affect hotel business, thus this hotel’s gives utmost
attention to make the good first impression leading to profits. Lastly, hotel business depends on
the seasons and the particular demand that directly has an influence on the hotel’s business and
services areas.
1.3 Compare customer profiles and their differing expectations and requirements
JW Marriott Hotel has huge expectations from their customers’ outlook as they are
known for their services. The spending power is outstanding as it provides a wide array of guest
services and on-site facilities with an arrangement in all types of accommodation in terms of
entertainment, restaurants etc. on fulltime basis (Gomez-Mejia and Balkin, 2011). Furthermore,
it has gained a name for its grandeur set up in all the rooms with profound detailing that has
impressed its guests and they are ready to spend. It includes all types of customers and their
preferences in choosing their accommodation and involves all types of customers from high end
clients, families, for conducting meetings, seminars and many more services. Along with, this
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hotel is known for its impeccable taste worldwide and has established in almost all the major
locations of the world.
1.4 Average Spending Power in hospitality businesses
Average Spending Power, popularly known as ASP can be defined as the ability of the
customers and their purchasing value to enjoy services at the highest level without any
compromises. There are many factors that can emphasis on this ASP and its relevance in the
working practices of Hotel Marriottt. These are as follows:
Economic condition depends on the complete capability of guests and client’s earnings to enjoy
the services and products provided by JW Marriott Hotel. Henceforth, they offer variable costing
strategies to satisfy all their expectations with respect to costing of their services.
Status- It depends on the personal situation of the customer in the eyes of the hotel staff who
treat them. When a celebrity attends any event, they get treated differently as compared to the
common man or business man. This is mainly in context of the economic status and the ability to
spend money to enjoy services provided by Marriott’s management.
Social/Cultural Influences- It is directly connected with the influential power of customers in
their social circle which promotes celebration of any occasion/festival/event on large scale and
making them use the hotel’s services.
Income Size - This factor is proportional to the spending power of the customers to inherit the
services given by Marriottt Hotel including foods and beverages, spa, other entertainment
facilities etc.
AC2.1 Stages in product and service development
Hotel Marriottt undergoes consistent renovations and brings radical changes in their
product and service development. Here, designing of new kitchen area has been under the
considerations. Moreover, this is an on-going method that consists of a plan including
components such as identification, implementation and analysis of all the important stages
required for the achievement in correct approach (Walker and et.al., 2014).
Idea Generation: It is the foundation step that puts any development procedure in such a
manner in order to meet expectations of Marriottt’s at the global level and as per the location
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where they are expanding or initiating a project. Here, development of new kitchen area must be
drawn.
Idea Screening: It is that step in which the designing team conducts research for
separating various components on the basis of the budget, scheduling, requirements of materials,
labor etc. For the same, it needs minimum of three months with an estimation of 250 euros with
environmental friendly raw materials as it must be fire proof and must carry the burden in the
most sustainable manner.
Concept Development and Testing: This includes specifications in context to
development of a product or service by testing it on the basis of its reliability and quality aspects.
This step describes the complete execution part while constructing the kitchen area so that the
entire process can be checked in proper duration to give proper results with an authentication that
it has been tried and tested.
Product Development: This is indeed a long process that takes time and need proper
analysis to attain the objectives in the best possible manner so that the foundation structure must
withstand with any natural calamity etc.
Marketing: This is another sector which is used by the hotel to make its product popular
and known among their customers and also helps them to gain a higher positioning in the global
competitive marketplaces. A new kitchen area would assist in reaping customer's attention
effectuually.
Commercialization: This puts insights on the analysis and segmentation of market on the
factors related to the entire designing of a kitchen area. It also involves customers’ preferences
that are depended on profitability with enhanced productivity.
Launch: It is the last step and this launch must be done dynamically to make its presence
valuable in the eyes of their customers using promotional tools to lure the potential audience and
sustain their existing clients effortlessly.
AC2.2 Customers’ perception of products and services
JW Marriott Hotel has provided sparkling features due to its persistence and good
employees’ engagement. They have acquired many hotel chains and have expanded gloriously in
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the labor market. Their Brand Image has provided loyal customer bases that revisit their
services. Additionally, Services style involves formal set-up with professional outlook
including greeting of customers with proper etiquette to access their services appropriately.
This would be beneficial in attracting their clients by special attention and also they can include
special disabled access for specially challenged people Furthermore, the management
emphasis on proper nutrition chart with dietary specifications that enhances Marriott’s image
amongst its customers’ and competitors as well. Standardization and Space Utilization comes
under JW Marriott Hotel’s supplementary services which are also well established, especially
in the rooms' division with proper accommodation facilities. Moreover, this hotel is popular for
its rich architecture and amiable hospitality that has attracted potential clients’ invariably.
AC2.3 Product and service development
Product and service development is among the key opportunities for bringing the services
styles to the consumer world through employing diversified integrated frameworks (Gunasekaran
and Ngai, 2012). This is successfully done by tapping all the permutation and combination seen
in the given opportunities by removing the problems in viable order. Consequently, this hotel
faced challenges in the affordability in context of their services that lead to formulation of
limited options in choosing room divisions for upper middle class population. Moreover, they
need wide spaces and thus are mostly situated in the extreme points affecting the locals to visit
and enjoy their services. Moreover, JW Marriott Hotel has a brand name which does not need
any marketing or any promotional channel during the launch of product or service. Along with, it
attracts investors easily thus leading in gaining the competitive advantages and to stay in the
leading position.
AC2.4 Different merchandising opportunities
Merchandising can be understood by those activities which are needed when selling of
products or services through retailing methodologies in the market. Both merchandising and
distribution management move hand in hand to influence the operations of JW Marriott Hotel’s
that ranges diverse restaurant merchandising options Additionally, with advent of information
technological tools, it has also accelerated an upsurge rise in the sales volume and revenues
through the use of internet to make its restaurant services properly (Brotherton, 2012). Also, the
consumers’ PPP (Purchasing Power Parity) has added another dimension on the basis of
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spending patterns that would assist in purchasing and selling of Marriott’s customized products
to promote the merchandising businesses of the restaurant as without food, there will be no
business. This has resulted in spiraling effects and has become one of the effective techniques. It
has been used by JW Marriott Hotel’s marketing department to incorporate their retailing aspects
effcientely which has impacted its revenues and profits in leaps and bounds.
TASK 2
AC3.1 Different methods of pricing
JW Marriott Hotel has been in this hospitality sector and uses two types of pricing
strategies such as cost oriented pricing and marketing oriented pricing.
Here, the cost oriented is the simplest type where the price is determined by the
production cost. Whereas on the other hand, the marketing oriented pricing is implemented on
the basis of competitor’s pricing. Along with this, they have put concentration on their pricing
strategies as it paved the path in gaining the momentum over their competitors.
Moreover, the marketing team along with sales department has employed the skimming
tactic also, especially when there is an upsurge in the seasonal demands and they operate at more
than the normal prices. This has direct effects on their profits.
While during off seasons, they reduced their prices by applying various offers and
discounts to attract people in clever bidding. However, the seasonal demand also affects their
operations handling. It results in unemployment during low season and more hiring during
organizing of event, conference, seminar etc. (Kessman and McCauley, 2011).
In this same regard, a sometimes the administration gives special pricing to their regular
customers’ while on the other hand, the new ones also get special treatment through discounted
offers to lure their customers for revisit to use their hotel’s services.
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AC3.2 Factors affecting revenue generation and profitability
The following are those factors that influence the operations of JW Marriott Hotel. This
Hotel has been known for its royal look and flawless maintenance of rooms division, planning of
lobby or conducting seminars, conferences etc. with special emphasis on the food department.
Firstly, Standardization infers on the reputation of this hotel in the labor market which
has affected sanitary and hygiene components to be of top-notch for meeting the guests and
client’s expectations, needs and specifications at the highest level. This has been done by using a
clear, concise and coherent channel that assisted in bridging the misunderstanding and provide a
home like feeling with ease (Moutinho, 2011). In addition to this, it has given insights on an
evaluation of planning through incorporating local arts and crafts with international taste when
designing the rooms to set their standards among their counterparts.
Moreover, another important component is Labor Intensity which is based on the capital,
number of laborers and more. Here, it has been evident that JW Marriott Hotel has spent more on
consistent investments, renovations and additional services for expanding and attracting their
consumers’ in major locations of their hotel chains worldwide. Lastly, Shelf Life is that
element that has an impact on the global brand image including the total number of customers
with their satisfaction level. Also, the most supplementary parameter to be discussed is the
Elasticity of Demand in the labor market. It totally relies on customers’ viewpoint and the
seasonal demand pattern that comprises costing in terms of their services in rooms division,
foods and beverages, recreational activities and more.
TASK 3
AC4.1 Performance measures and appraisal techniques
Performance Appraisal is defined as the methodology for laying an understanding for
employees' responsibilities with complete implementation and assessment of their contribution
at the workplace of any organization. This measurement tool has emphasis on the employees’
engagement for enhanced performance management to maintain the productivity and profit
generation (Brown and et.al., 2013). Furthermore, it includes rewards system and appraisal to
encourage and provide motivation for forming an amiable business environment.
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JW Marriott Hotel uses the following elements as follows:
Net profit- It determines the general augmentation in employees hike.
Developing Qualitative and Quantitative data- This puts light on the operational
performance of hotel that is based on pricing of products, number of high end customers,
understanding the validation from the perceptions of their existing customers etc.
Quality Management- This involves the expansion of parameters related to quality with the
help of subsequent techniques, methods etc. in proper manner.
Speed of Delivery/ Customer Service- This is related to the timings of delivery for providing
services to the customers effectively to impress their customers’.
AC4.2 Usefulness and limitations of various quantitative and qualitative appraisal techniques
Limitations: Marriott Hotel has loopholes as they follow a hierarchical organizational structure
by giving more powers to their upper management. Accordingly, this leads towards an ambience
of biased behavioral approaches with relation to 360 degrees approach, feedback etc (Bromiley
and Rau, 2016). This has affected the environment in a very discouraging manner in context of
working practices. In addition to this, customers’ misuse their privileges and try to abuse the
hotel’s employees that leads to unproductiveness.
Usefulness: Effective feedback, regular informal meetings etc. can provide a podium to task-
force that has an impact on the working ethics with a sense of cooperation and team bond. Along
with this, there are many qualitative and quantitative techniques like feedback, form filling, 360
degrees approach that can shape the entire evolution that accelerated with high earnings and low
conflicts and challenges at workplace (Childe, 2011). Moreover, these techniques aid in inspiring
their employees to do their jobs in better and suitable mode. Overall, the efficiency at workplace
in amplified with a sense of accountability and achievement to execute the objectives and goals
of JW Marriott Hotel in professional outlook.
AC4.3 Approaches to business analysis, evaluation and planning
Business analysis is defined as the practice of considerations in terms of the specifications and
requirements to advocate the business owners concerning the business analytics and logistics for
smooth running of operations.
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Business evaluation is referred as the set of rules and regulations to measure the financial
progressions in context to a company’s working practices. It is that estimated value of the market
where the customers are ready to pay or get in return of selling a product or service.
Business planning is that component in which a step by step channel for documentation, report
writing of a dealing with factors that focuses on parameters such as goals, techniques and more
in order to achieve the mission and goals of the organization. Therefore, it assisted invariably in
the most positive direction.
With context of JW Marriott Hotel, it can be clearly understandable that above mentioned
three components have facilitated in providing assistance their businesses by incorporating the
strategic planning with adopted marketing procedures to optimize their resources allocation and
enhanced productivity to gain profits and increased generation of revenues (Gunasekaran and
Irani, 2014).
CONCLUSION
It has been summarized that JW Marriott Hotel has carved a name in this sector by
providing their customers’ with the best services through proficient management of its
production and operations. It has given a tough competition by reinventing and innovating new
product development and existing products as well by maximizing the allocated sources through
application of performance management among employees It not only provided comforting
services to their clients and guests so that they visit them again and again. However, it has given
podium that assists their staff and employees with the best facilities who works by putting their
best foot forward. Lastly, it summed up that each division in the hotel industry is significant in
laying a foundation for their formation of loyal customer base but also let them stay in the
competition at both the local and global levels.
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REFERENCES
Books and Journals
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management. 41. pp.95-106.
Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Brown, S. and et.al., 2013. Operations management: policy, practice and performance
improvement. Routledge.
Childe, S.J., 2011. Case studies in operations management.
Gomez-Mejia, L.R. and Balkin, D., 2011. Management. Pearson Higher Ed.
Gunasekaran, A. and Irani, Z., 2014. Sustainable Operations Management: design, modeling and
analysis.
Gunasekaran, A. and Ngai, E.W., 2012. The future of operations management: an outlook and
analysis. International Journal of Production Economics. 135(2). pp.687-701.
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management
research. Journal of Operations Management. 41. pp.77-94.
Kato, T. and et.al., Hitachi Ltd, 2015. Operations management methods and devices thereof in
information-processing systems. U.S. Patent 9,128,704.
Kessman, M.D. and McCauley, S.P., AMERANTH Inc, 2011. Products and processes for
operations management of casino, leisure and hospitality industry. U.S. Patent
7,878,909.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Walker, P.H. and et.al., 2014. Sustainable operations management: recent trends and future
directions. International Journal of Operations & Production Management. 34(5).
Online
Operation Mangement, 2018. [Online]. Available through:<
https://www.investopedia.com/terms/o/operations-management.asp>.
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