A Comprehensive Report on Hospitality Operation Management at Marriott

This report provides a comprehensive analysis of hospitality operation management, specifically focusing on the Marriott Hotel. It begins with an introduction to operation management and its application in the hospitality sector, highlighting Marriott's global presence. The report then delves into Task 1, analyzing the nature of hospitality products and service areas, including food and beverage, room division, and conference and banqueting, along with the tangible and intangible aspects of these services. It examines the influences on demand patterns, such as seasonality and economic factors, and differentiates customer profiles, considering spending power and expectations. Task 2 explores product and service development stages, from idea generation to commercialization, and evaluates factors influencing customer perceptions, such as brand image and service style. Task 3 discusses pricing considerations and factors affecting revenue generation and profitability. Finally, Task 4 addresses performance measures, appraisal techniques, and business analysis approaches. The report concludes with a summary of key findings and provides a list of references.

Hospitality operation management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
AC1.1: Analyse the nature of hospitality product and service areas..........................................3
AC1.2: Various influences affecting patterns of demand within hospitality operations............4
AC1.3: Differentiate the customer profiles and their differing expectations and need of
customer with respect to the Marriott hotel................................................................................5
AC1.4: Factors affecting average spending power.....................................................................6
AC2.1: Evaluate the key stages in product and service development applied within a
hospitality operation. ..................................................................................................................7
AC2.2 Features that contribute towards the customers’ perception related the product and
service.........................................................................................................................................7
AC2.3 Opportunities and constraints affecting product and/or service development within a
hospitality environment...............................................................................................................8
AC2.4: Several merchandising opportunities for hospitality products and services..................9
TASK 2............................................................................................................................................9
AC3.1 Various methods and approach of pricing considerations..............................................9
AC3.2: Factors affecting revenue generation and profitability in hospitality operations. ......10
TASK 3 .........................................................................................................................................10
AC4.1 Range of performance measures and appraisal techniques to individual ....................10
C4.2 limitations of the different quantitative and qualitative appraisal techniques and their
application.................................................................................................................................11
AC4.3 Approaches for business analysis, evaluation and planning .........................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Operation management is a process which is concerned about designing and controlling
of different process of business. Hospitality operation management is managing the entire
production system of organization. This report discusses the Marriott hotel which is leading
organization to expand their business all over the world in hospitality sector. This report will
analyse the product and their services that are offered to different areas. There are different
factors that are affecting the business operations and functions of hospitality industry.
Furthermore, This report provide the nature of business operation that perform in different
function in the organizations. This assignment will discuss the several stages of development
process.
TASK 1
1.1: Analyse the nature of hospitality product and service areas.
The hospitality industry is the fastest growing sector which is increasing their business
across the world. Marriott provides the best facilities to their customer and it is important for
organization to maintain their product and services in effective manner. Marriott hotel is also
contributing towards the industry by providing the range of service areas:
 Food and Beverage- Marriott hotel is mainly focused on their product services to their
customer. It is important for exploring their business activities. Many customers get
attracted towards their services and products because this hotel provide the better quality
services. Food and beverage is the most crucial part of hotel and Marriott provide many
options to their customer related the food items (Ahmad, Bakar and Ahmad, 2018). Food
and beverage service provided to the organization Being a manager, there are more
responsibilities for managing the product quality and services in marketplace such as
Food management, production etc. Marriott uses different technology intangible
approach which help for managing the business process
 Room division- Room division service is important for people and customer because
many clients travelled from one destination to another that's why, Marriott always
manage the business operations and functions in effective manner. It is providing the
better room services such as lake view rooms, king rooms and premium rooms etc.
proving the better and comfortable for customers. Marriott concern about their room

services and it also divided rooms categorise according to the requirement of customer.
Many people wants different room services at different locations and places.
 Conference and banqueting- Banqueting and conference services can be varied
according to the events and celebrations. These services are divided into different
categories such as dining room table, fast food services, cafeteria etc. Banquet services is
typically based on the number of people and size of guest. Conference room is big space
room that provided the space for customer.
 Nature of services are as follows:
 Tangible - According to tangible, it can assist the such the equipment of
Marriott hotel that used in the organization for providing the best services to
their customers. It is based on physical items such as rooms and food beverage
etc. these physical item uses for Marriott which is based on services that
company provide for their customers (Deif and ElMaraghy, 2017).
 Intangible - According to intangible,Each and every hospitality industry
provide the best quality of product and services to their customer. This
services provide the best quality of staff and manage entire process according
to their skills. Staff member understand the need and requirement of customer
and then providing facility according to the demand.
AC1.2: Various influences affecting patterns of demand within hospitality operations.
There are different patterns of demand that are observed in the hospitality industry due to
the influence of various factors. Some of them are as follows: Seasonality- Seasonality affect the Marriott hotel occupancy so it is important for
customer to aware about the actual price availability and points of hotels. At the peak
time of hospitality industry, it also increases their profit rate and revenue in marketplace
In seasons, the demand has been increased (Hong, Zhang and Shi, 2018). Most probably,
customer spend holiday and weekends in different places and hotel is provided the usual
size occupancy in effective rate. Time of day and week-In weekend, it can increase the demand of customer and people.
Sometimes, many customers coming for hotel and it is difficult for staff and executive to
manage their services in quickly. This is affecting the demand of customer in the
organization.

 Healthy living- Marriott hotel provide the healthy environment to their customer that is
provided the services according to their requirement and demand. Most of the peoples are
health conscious about the hotel and For long stay travellers prefer those hotels which
are actively improving and promoting their health and wellness credentials. Manager
promoting their service and product to the customer . Economic factors- This factor set the specific information that affecting the business
process and their investment values. There are some factors that influence the hospitality
industry such as Economic growth, Interest rates and monetary policies, Taxation,
Inflation rates, Economic attractive of destination for leisure and business purposes,
Government spending, Unemployment policy, Exchange rates.
 Cultural- Organizational culture is playing important part in hospitality industry. They
provide the best quality of services to their client. There are various culture factors such
as social, economical and environment etc. (Hughes and Murray, 2018) Sometimes, this
culture impact on the business operations and functions.
AC1.3: Differentiate the customer profiles and their differing expectations and need of customer
with respect to the Marriott hotel
Customer expectations are experiences reflect according to the past and current product
evaluation and their experience. There are following criteria that determined the actual
expectations towards the Marriott hotel. Spending power- Spending power is a measurable feature that help for identifying the
customer demand and how much money they spend on the particular services or not.
According to their experience. Customer will spend more money because they attract
towards the products and services of Marriott hotel. Types of hospitality businesses-Customer expectations depend on their choice and
demand because they chose different hospitality business. Hotel and Restaurant business
is concern about their rooms or food and beverage services (King, 2017). According to
the customer experience, they are attracted towards their food quality and service. Menu and accommodation range- Menu and accommodation is necessary part of
Marriott hotel and they given many options to their customer. This client attract towards
the menu and accommodation because hospitality industry provide different food items.

This organization will give wide range of menu and accommodation for client so that
customer experience has been changed time to time. Pricing considerations- Pricing consideration is main part of customer because client
attracts this hotel which provided the better quality of product and services in reasonable
rate. Sometimes, Marriott hotel changed more money but they also provide offer at the
time eve and festival. Expectations and requirements- Customer expectations are high with the brand name of
Marriott. This is due to the fact that it charges high prices against the services offered by
same. Those who spend good money on their bookings and stays expect that they will get
full quality services and do not compromise with standards.
1.4: Factors affecting average spending power
There are some factors that affect the average spending power in Marriott hotel among which
the most common are discussed below: Status- Nowadays, Status required for each and every people in the society but some
customers cannot afford the services of Marriott. Social and Culture influences - Social and culture influences affecting the average
spending power because many people are attracted towards the traditional culture and
also demand with the Marriott hotel. In this way, this organization will invest lot of
money for changing their facilities and services according to the demand of customer
(Lugosi and Jameson, 2017).
 Economic situation- The economic downturns and recession affecting the entire process
of business. It also impacts on the customer income and affect the entire business process
economic criticise can harm the entire internal and external factors of hospitality
industry.

AC2.1: Evaluate the key stages in product and service development applied within a hospitality
operation.
There are some important stages of Marriott hotel to provide the best quality of product
and services:
 Idea generation- This is the initial stage for developing innovative ideas that helps for
increasing the productivity and profitability in marketplace. This is important part of
organization to implement new idea for growth and development.
 Idea screening- This is second stage of product and service development for screening new
idea and afterwards, applicable in the development process of Marriott hotel.
 Development and testing-Development and testing is the best stages for developing an
effective quality of product and services for customer. Testing help for removing the
unwanted threats in the development process (Masa’deh and Tarhini et.al.,2017).
 Analyse the business- Business analysation is a process or stage for analyse the entire need
and requirement of enterprises.
 Product development- this is the most important stages that help for developing the product
for consumers. Marriott hotel is maintained their product development process in effective
manner.
 Marketing test- Marketing test is the best technique for determine the market demand by
using marketing strategies and techniques.
 Launch and commercialisation- Marriott after going through the above stages can launch
new products and facility which is required for growth and development process. This is
also important stages that plays important role in development process.
AC2.2 Features that contribute towards the customers’ perception related the product and
service
Every individual has their own criteria of judging a particular product or service. There
are different factors that influence the choice of service users depending upon their priorities
and hence given below are some elements that play a crucial role in customers perceptions:
 Brand image- This is main features of hospitality industry because this organization
always maintain their brand value in marketplace. Many customer set up their own
perception towards hotel due to the brand image in marketplace. Brand image helps for
increasing the productivity and profitability in marketplace.

 Disabled access- Disabled access is especially applicable in hospitality industry and this
firm will provide the facility to the disable customer such as wheel chair friendly rooms
those who cannot able to walk properly(Masa’deh and Tarhini et.al.,2017). Wheel chair
facility will influence the customer to attract towards their hotel and brand.
 Dietary requirement - This is also another features that provided by hospitality industry
because this hotel maintain their dietary food according to demand of consumers. Dietary
services influence the customer to chose their food.
 Availability of resources-Availability of resource are required for managing the business
process of hospitality industry. There are different resources such as human resources,
financial management etc. these are important resources for managing the entire business
process. Availability of resources are required for influence the customer towards the
hotel and fulfilled their need in proper manner.
 Service style- Marriott uses unique service style in front of customer. In this way,
customer also want effective services and this service style generate positive impact
towards the customer.
 Space utilisation and standardisation-being manger, I have responsibility for managing
the process and also utilise the space to provide the games for children. In this way, it can
increase their standardisation in marketplace.
2.3 Opportunities and constraints affecting product and/or service development within a hospitality
environment
Opportunities are important that help for boosting the business operations and functions. It is also
effect for increasing the revenue and sales profit in marketplace. On the other hand, there are various
constraints restricts for business operations and it will decrease the profit and sales. Opportunities: Another great opportunity is that when Marriott planning to provide variety of
services for customers such as couple, single people and families, which help for increasing the
market position. Hospitality industry has to compete their competitors in market because this firm
provide the large and different type of services and facilities with the help of new
planning(Masa’deh and Tarhini et.al.,2017).
 Constraints: The major constraints in hotel is limited accommodation services and facilities
while another competitor provide extra facility and customer attracts towards their service. It is

difficult for organization to increase the competitive advantages. Another constraints is that when
small business parks and local areas etc.
Brand image: Brand image is important for hospitality industry which is required for company to
manage their brand values in marketplace.
Threats:
 It affects the business process and their management system. Low productivity and degraded the services.
Disabled access: Disabled access can applicable in hospitality industry and this firm will provide
the facility to the disable customer such as wheel chair friendly rooms those who cannot able to
walk properly(Masa’deh and Tarhini et.al.,2017). Wheel chair facility will influence the
customer to attract towards their hotel and brand.
threats: Disable access impact on the popularity of organization.
Availability of resources: Availability of resources are required for influence the customer
towards the hotel and fulfilled their need in proper manner.
Threats:
 Low resources decrease the profit and growth(Masa’deh and Tarhini et.al.,2017).
Service style- Marriott uses unique service style in front of customer. In this way, customer also
want effective services and this service style generate positive impact towards the customer. Weak service style made bad impression in front of consumers.
Space utilisation and standardisation
 Less space created the bad impression and affect the brand image.
AC2.4: Several merchandising opportunities for hospitality products and services.
Nowadays, many people have travel from one place another place for the purpose of business
and recreation. There are various type of merchandising opportunities for hospitality business:
 Many customers expect high quality of services which is based on their purchasing power. In
this way, it can be said that this business would help for create the best opportunities and
create more value and premium charges ( heehan, Grant and Garavan, 2018).

 On the other hand, economic condition has been improved due to improve the economic
condition of country. This will give the opportunities to the hospitality business in terms of
merchandising advantages.
TASK 2
AC3.1 Various methods and approach of pricing considerations.
According to the research and experience, it can be determined different pricing method
observed such as Cost oriented pricing, Oriented pricing, Service charge, Cover charge and
Minimum charge etc. Cost oriented pricing- it is the simplest form of pricing that help for determine the actual
price of production cost. There are some percentage profit also added in the selling price
or production cost. Oriented pricing- this pricing is based on the market research and understand the
competitor pricing. Service charge- Service charges are included in the purchasing the product and Marriott
hotel is also imposed on the customer and guest after purchasing the product or having
the meal( ang, Mao and Tang, 2018). Cover charge- Cover charges included when at the time of entering in the Marriott hotel.
 Minimum charge- at the time of having meal, it can charge minimum charges.

AC3.2: Factors affecting revenue generation and profitability in hospitality operations.
There are different revenue generating factors such as sales mix, customer turnover, average and
spending power. Furthermore, Various profitability factors such as Labour Intensity- In the Marriott hotel, it can be used the less capital as compare with
the lobar. In this way, the organization can considered as a lobar intensive. Shelf Life- Marriott hotel is implementing the innovative idea in the product
development for growth and development ( ang, Mao and Tang, 2018). In this way, this
hotel can sustain in the marketplace. Elasticity of Demand- In Marriott hotel, elasticity of demand is based on inelastic when
the customer demand change less than compare to change in the price of service and
products. Standardisation- Marriott hotel is managing their business process in proper manner.
This organization is maintained their higher level of standard in their menu selection and
other facility and service.
 Portion Control- For generating the high revenue, it is required for organization to
control their each part of management system. This is the best to divided according to the
categorise and skill. Each and Every department is managed by operation manager and
they handle entire business process in proper manner.
TASK 3
AC4.1 Range of performance measures and appraisal techniques to individual
Performance and appraisal is the most important methodologies and approaches to
measure the accurate performance of organization and also measure the employee working
behaviour. The operational manager of Marriott hotel, I have assumed that service cost of the
product and their quality of items. I also managing the time of performance according to the
need and requirement. I have used the different type appraisal technique which help for
measuring the performance which discussed below:
 Quality management- this is the best approx or process, I also analysed both overall
service quality and product in the hospitality industry. By using this process, I also
analyse the improve the performance in effective manner.
 Data analysis and evaluation- I have to analysed the various quantitative and
qualitative approaches for gathering the data and also compare with the expected

performance. In this way, it easily determines the present performance of Marriott
hotel.
 Sales performance- this is also another technique for measuring the sales performance,
this approach also recognize the overall sales revenue increase in the business process
that is effect the profit of Marriott.
 Delivery Speed- At the time of delivery, how fast the order of customer accomplished
which is needed to measure their performance and speed in effective manner.
C4.2 limitations of the different quantitative and qualitative appraisal techniques and their
application
At the most level, data are considered as quantitative and other number is considered as
qualitative. Appraisal technique is based on the same data that considered in the business
process. For example- the quality of product and service, employee attitude and employee can be
considered as quantitative appraisal method. The qualitative approach and method is to analyse
the population of customer that attract towards the service and product (ang, Mao and Tang,
2018).
For Example- Marriott hotel is targeting to the best customer that choose the same organization
again and again.
AC4.3 Approaches for business analysis, evaluation and planning
Marriott hotel is applying the various approaches in the hospitality business, it is difficult
for acquired the approach for the business operations such as facilities and services offered to their
customers(ang, Mao and Tang, 2018). This organization provides many facilities such as
catering, rooms accommodation etc. Customer demand continuously according to the change of
trend in marketplace. For Example- In Marriott, the facilities were increased by more value
adding services such as safari. There are different three major categorise that generate profit for
hospitality industry such as house guests, organized groups and non-residents etc.

CONCLUSION
As per discuss, this report analyse the hospitality product and their services in several
areas. There are different factors that affecting the business operations and functions of hospitality
industry. Furthermore, this is also provided the brief nature and operation that performs in the
organizations. There are the several stages for development of product and services in the
company.

REFERENCES
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