Hospitality Operations Management: An Analysis of Marriott Hotels

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Hospitality Operations Management
Student’s Name:
University Name:
Author’s Note:

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Executive Summary
The current report outlines the various aspects within hospitality sector. In the first part of the
repost, several operational and economic features within hospitality sector from the
perspective of Marriott hotel are being mentioned. In the next part, the processes required
during product and services development within Marriott are outlines. In this context, a
SWOT analysis has been conducted that outlines opportunities and constraints for product
development in Marriott. Subsequently, different methods for pricing that are undertaken
within Marriott are mentioned. In addition, the factors that determine revenue generation
within Marriott are outlined. In the last section of report, various performance measures and
appraisal techniques implemented within Marriott are outlined.

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Table of Contents
Introduction................................................................................................................................4
LO1: Task 1................................................................................................................................4
A. Analysing the nature of various hospitality products and services areas within Marriott
(P1.1)......................................................................................................................................4
B. Evaluation of influences that affects patterns of demand (P1.2).......................................5
C. Comparing customer profiles and their requirements regarding hospitality services, and
analysing factors that affects spending power in Marriott (P1.3 and P1.4)...........................6
LO2: Task 2................................................................................................................................7
A. Evaluation of main stages during product and services development, and Analysis of
features that contribute to customer’s views on products and services (P2.1).......................7
B. Assessment of opportunities and constraints that affects products and service
development in hospitality sector, and various merchandise opportunities for products and
services in Marriott (P2.2 and P2.3).......................................................................................9
LO3: Task 3..............................................................................................................................11
A. Evaluating various methods of pricing with respect to additional pricing considerations
(P3.1)....................................................................................................................................11
B. Assessment of factors that affect revenue generation and profitability (P3.2)................12
LO4: Task 4..............................................................................................................................13
A. Application of various performance measures and appraisal techniques (P4.1).............13
B. Determining the effectiveness of various qualitative and quantitative appraisal
techniques and their utility in hospitality operations (P4.2).................................................14
C. Applications of approaches for business analysis, evaluation and planning of proper
hospitality operations and proposals for actions (P4.3)........................................................14
Conclusion................................................................................................................................16
References................................................................................................................................17

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Introduction
The hospitality industry is a fast growing business over the last few years of the decade. The
report constructed in this study is based on the Hotel Marriott, in United Kingdom, which is
considered as one of the top quality hotel in the country, and overspreading their business in
several over countries. The hotel is mainly comprises with the luxurious ambient and a proper
accommodation services for different types of customers. The brand image of the hotel and
globalization are helping them in making their business overspread widely. This study
identifies the several factors that are modifying the activity of business in the hotel in the
hospitality sectors.
LO1: Task 1
A. Analysing the nature of various hospitality products and services areas within
Marriott (P1.1)
According to Ramayah et al. (2011), the principle service of a hotel is based on the quality
services provided to their customers. This includes the providing of quality foods, best
services, and proper accommodations and so on. All of these services should be of supreme
quality so that it can retain the maximum satisfaction from their customers. Thus, based on
these following criteria, the different elements of hospitality operations of the Hotel Marriott
are as follows:
Delicate products: The food and beverages served in the hotel are perishable, that retain the
maximum satisfaction of the customers. Besides, this helps in retaining of the fame of the
hotel.
Substantial and insubstantial products: The quality of the service in a hospitality sector
based on the two disciplines, which denotes the strength and weakness of the hotel industry.
In this case, the internal environment of the hotel, the interior and exterior decoration, the
quality of accommodation, are considered as the substantial element of the hotel, as all of
these are visible to the customers. According to Martin et al. (2011), these can be the strength
as well as the weakness of the hotel, as the customer can found it visible and can easily judge
these. On the other hand, the qualities of services, staff awareness, customer satisfaction etc
are not visible to others, and these constitute the insubstantial elements of a hotel.
Service area: In hotel Marriot, the service areas are considered as the quality of
accommodation of the customers. This includes the quality and space of the room, service

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area for food and beverages, place of meeting or seminar, banquette services for the
customers and so on.
However, Martin et al. (2012) commented that the major service area of a hotel industry is
broadly classified in two categories. One is food, beverages, and accommodation, which
includes the quality of rooms, equipments, foods and so on. The other is entertainments,
which includes the places that can be used to provide entertainment to the customers. In
addition, there is another service product in the hospitality sector of the hotel Marriot, which
includes the customer support services. In this discipline, the travelling facilities to the
customers, providing of ample information to them are included.
B. Evaluation of influences that affects patterns of demand (P1.2)
The demand of the hospitality services are not found fixed, as it changes according to the
interference of several factors. In addition, the nature of demand also changes in a seasonal
way. As opined by Andrea (2012), the influences of the social, cultural and physiological
factors are also responsible in this change of demand of services within a hotel. In the
following hotel Marriott, the changes of the demand of the service quality are based on the
three following factors, which are as follows:
Institutional factors: According to Felisitas et al. (2012), the principle reason of rising this
factor is from the commercial enterprises, educational sectors, government and non-
government bodies, which influencing the economic condition of the hospitality industry.
Recreational factors: The attractive features help in the generation of the recreational
factors, which includes the cultural and social interference. The demand pattern, based on
these is considered as the demand originated from the recreational factors.
Transit factors: Small groups, intending for a short break are considered as the source of
raising the transit factor, which changes the demand pattern of the hotel industry.
In addition, Nimako et al. (2013) commented on several other factors, which are used to
change the overall demand pattern of the hotel industry and hospitality management. These
can be as follows:
Social- cultural factors: the statement in living in the luxury hotel and the comfort found
while staying there is the principle actor, which influences the change in the demand pattern
in the hotel industry (Pablo-Romero et al. 2017). In the Hotel Marriott, the main attraction is
found within the brand image of the hotel and the prestigious statement the customer found

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there. However, the quality of services and enjoying the luxurious comfort changes the
demand of the customers.
Economic factor: The economic status of a person is important while selecting a hotel for
their holiday. In the Hotel Marriott, the people of higher income group can only select for
residing and spending their holidays therein. Thus, Robinson et al. (2014) commented that
this hotel has a corporate level business orientation, which determines their demand
accordingly.
Kind of food beverages served in the hotel: The eating style of the customers and their
preferences are another factor, which determines the change in the demand pattern of a hotel.
Moreover, the Hotel Marriott provides various options for the customers, which can retain the
satisfaction of the customers towards their hotel.
Pricing strategy: The pricing strategy of the hotel also determines the choice of the
customers. If the pricing of the hotel is not found suitable to the customers, they can shift
towards a cheaper hotel, instead of considering the brand image of the hotel (Baum et al.
2016). Conversely, the cheaper hotel is also found substandard to the customers. Thus, all of
these can influence the demand pattern of the hotel industry and hospitality sector.
C. Comparing customer profiles and their requirements regarding hospitality services,
and analysing factors that affects spending power in Marriott (P1.3 and P1.4)
The customers influence the service pattern of a hotel, as per their requirements. According to
Negruşa et al. (2015), the different customer’s profiles found within a hotel, change the
hospitality services of a hotel. Different customer’s profile found within the Hotel Marriott,
are as follows:
Corporate travellers: This group of customers comprise the major part of the customer
profile of the hotel. The requirements of these people are mainly the accommodation and
facility o the meeting hall for conducting a conference there.
Conference members: These are the second group of people, who are residing in the hotel.
However, the requirements of this people are similar to that of the corporate travellers (Baum
et al. 2016).
Holidaymaker: These people are also comes to the hotel and the major requirements of these
people from the hotel services are the facility of relaxation and proper entertainment.

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According to Brown et al. (2015), the service quality of the hospitality sector, must provide a
wide range of service patterns at different price level. This constitutes the average spending
power of the customers residing in the hotel. However, there are several factors, which are
influencing the average spending power of the customers, described as follows:
Income: The selection of a hotel for accommodation is directly related to the income
capacity of the individual. This influences the average spending power of the customers and
selection of the hotel (Hlee et al. 2018). The high income increases the average spending
power of the customers, which helps them in becoming upgraded. The people selecting Hotel
Marriott are belong in the group of high income and increased average spending group.
Status: Status plays an important role in determining the average spending power of a
customer residing in a hotel. The customer having a higher status would not compromise the
standard of service, even spending high amount for this. The customers residing in the hotel
Marriott are also belonging in this category, with higher spending power (Baum et al. 2016).
LO2: Task 2
A. Evaluation of main stages during product and services development, and Analysis of
features that contribute to customer’s views on products and services (P2.1)
According to Horng et al. (2016), while going for developing a plan for changing a product
or developing a new one in the hotel industry, the organization must evaluate the following
stages of development of the plan of new product. The main stages of this product
development process are as follows:
Idea evaluation: The idea developed for the development of a product requires to be
analysed before it is implemented. This will identify the effectiveness of the idea and find
weather it is suitable for the hotel industry or it can retain the desired opportunities from the
market (Min et al. 2016).
Market research: After identifying the proper idea for the hotel industry, the management
must perform a market research among the customers, which will identify the potential of the
plan (Hlee et al. 2018). Besides, it will further analyse whether the customer preferring the
services or it fulfils the requirements of the requirements of the customers.
Segmentation of market: The hotel industry must perform the market segmentation prior of
implementing a plan in the activity. In case of Hotel Marriott, the hotel is not focusing for a
large group of customer rather it is planning for only a particular group of them (Li et al.

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2017). Thus, prior of implementing a plan in a market, the management must perform the
market segmentation to identify whether the new plan is suitable to that particular group of
customers.
Promotion: A successful implementation of a plan occurs only when it reaches to the
maximum recipients. Thus, after implementing a new plan in the hotel, one must look for a
proper promotional activity, which will ensures the enriching of maximum number of
customers and obtaining maximum profit.
The Hotel Marriot is a brand image in the hotel industry ruling in the hospitality sector. This
brand image of the hotel helps them in retaining maximum number of customers and making
them inclined over others. According to Horng et al. (2016), the perception of the customers
towards a hotel plays the most important role in a hotel, which is based on the optimum
satisfaction of the customers residing there. These are influenced by the service quality of the
hotel, staff behaviour, ambience of the hotel and others. However, there are several other
factors, which are influencing the brand image of Hotel Marriott in making of the customer’s
perception towards that:
 Strong brand image of the hotel, which attracts the customers and makes positive
responses among them.
 Supreme quality of services and products offered by the hotel makes the brand
superior over others (Horng et al. 2016).
 Foods and beverages provided in the hotel are of supreme quality, which attracts the
customers towards them.
 The availability and accessibility of the resources of the hotel makes the inclination
of the customers towards the hotel over others (Min et al. 2016).
 Service style of the hotel also attracts many customers, as the services provides in the
hotel is of separate style for customers according to their needs.
 A proper management of the services of the hotel retains good perception.
 A reasonable pricing strategy of the hotel attracts the customers (Horng et al. 2016).
 Availability of different services for different types of customers

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B. Assessment of opportunities and constraints that affects products and service
development in hospitality sector, and various merchandise opportunities for products
and services in Marriott (P2.2 and P2.3)
Within the hospitality sector, Marriott hotels form to be an exemplary instance owing to its
high quality of services that are focussed on the needs of the customers. It has been
mentioned by Lugosi and Jameson (2017), that various opportunities within the hospitality
sectors help hotels to increase their revenues and improve the overall reputation across the
globe. However, the role of the managers within Marriott to identify all the opportunities that
is present within the current commercial environment. Various sources of opportunities that
can be utilised by international hotels include diversity of human resources, opening up of
new hotels in exotic locations and relation in taxation legislations within the host country.
On the contrary, there exist certain factors that can be considered as threats or constraints for
proper functioning of the particular hotel. Theses can include increased competitions form the
rival hotel companies, stringent business legislations within host nations and non- availability
of raw materials for products. As outlined by Zaitseva et al. (2016), a SWOT analysis of the
hotels company helps in identification of strengths and opportunities that can be utilised by
the manager in order to improve the net profitability. Simultaneously, SWOT analysis also
helps in outlining the threats and constraints within the hotel that might disrupt the
development of product and services. In this context, a SWOT analysis of Marriott hotel is
represented as below:
Strengths
 Presence of strong
operational norms and
protocols across all the hotels
in world
 Maintenance of high code of
conduct by all the staffs and
managers
 Marriott International is
present in 122 countries and
provides 1.2 million rooms
for accommodation
 Implementation of
Weaknesses
 Increased focus in expansion has led
to dilution of brand image
 Morale of employees are affected
owing to presence of strict rules

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innovation regarding its
product and services
Opportunities
 There is a shift in consumer
behaviours such as increased
demands for luxurious hotels.
 The BRICS and MINT nations prove
to be potential emerging market
where Marriott can open up new
hotels.
 The global tourism rate has
increased by 6.3% across the world.
 Customers are willing to pay
premiums for personalised services
and products by luxury hotels.
Threats
 Marriott faces increased competition
from other hotel brands such as
Hilton and Novotel.
 The increased taxation and import
charges make it difficult to avail raw
materials for products.
 Economic recession compels hotels
to avail their services at decreased
amounts in order to maintain their
functionality
 Star hotels such as Marriot are
vulnerable to terrorist attacks. Such
events deter tourist from visiting and
staying in such hotels.
Table 1: SWOT analysis of Marriott
(Source: Learner)
It is evident from the SWOT analysis that changes in demands of customers forms to be
source of opportunity for provision of services by Marriott hotels. Services can be customised
according to needs of customers such as addition of safari facilities, shopping and visit to
various provinces. In addition, in most cases customers are willing to pay premium for it
(Min et al. 2016). The increase in global tourism also ensures that maximum customers avail
staying options within Marriott hotel. However, increased competition and taxation charges
may force availing services by Marriott at lower prices. Moreover, economic recession and
increased taxation cost may limit innovation in products and services within Marriott.
The globalization has changed and improved the hospitality sectors, which makes a firm
impact on the hotel industry. According to Min et al. (2016), the business of the hospitality,
sectors have increased after the globalization, which provides several opportunities to the

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hotel industries in their business. The opportunities for the business in Marriott are found as
follows:
 The customers are willing to spend ample amount money according to their
purchasing power to purchase high quality services. This provides an opportunity for
the hotel to make premium service pattern with a reasonable budget (Jauhari, 2017).
 The spending of the people in travelling has increased over the last few years with the
economic development, which provides another opportunity to the hotel to serve for a
large number of customers.
LO3: Task 3
A. Evaluating various methods of pricing with respect to additional pricing
considerations (P3.1)
Within hospitality sector, pricing plays an important role, as many of the customers are
attracted based upon pricing of products and services. As per the views of Adhikari (2016),
pricing should be implemented in such a manner that it is feasible to the customers as well as
profits are earned by the hotels. Within Marriott, some of the exquisite services that are
offered to the customers include luxurious rooms with high-end amenities, in room
pampering, elegant dining and even sightseeing facilities to tourists (marriott.com, 2017).
While there, exits several kinds of pricing strategy that are implemented based on vision and
objectives of the hotel. As far as Marriott is concerned, the major forms of pricing strategies
are mentioned as following:
Cost oriented pricing: Marriott offers variety of luxury food and beverages products under
the brand name of Edition (marriott.com, 2017). In this context, the prices are based upon
the production cost and import taxes of the products. Such prices are almost fixed and not
changed until a major change in import taxation takes place. As mentioned by Möhring et al.
(2019), such pricing strategies help in proper maintenance of profit margin as well as attract
customers owing to uniqueness of vibrant food and beverages.
Market oriented pricing: This forms to be most effective costing strategy within the
hospitality sector. As mentioned by Repetti and Roe (2018), the costs of services are
determined only after strict market research such as cost of taxation, cost of materials and
economic condition of the market. As far as Marriott is concerned, the cost of services is
determined after a proper analysis of costs within their competitors. It is important that

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managers within Marriott create a selling price that ensures specific returns on investment
from the perspective of pre-determined specific volume production.
B. Assessment of factors that affect revenue generation and profitability (P3.2)
Pricing strategies play a critical role within the hospitality sector as it affects generation of
revenues and the net profitability earned by the hotels. In this context, it is important that
processes are kept feasible from the viewpoint of customers and prices of products are made
based upon value proposition of customers (Vives et al. 2018). Moreover, pricing also adds
to the competitive advantage for the hotels. The factors upon which generation of revenue
within Marriott depends are outlined as following:
Factors Description
Combination of sales This involves selling of combined products at
lowered prices as compared to their individual
process. For instances, the cost of rooms
accommodation are reduced by 2% in Marriott when
customers book spa and tours facilities
(marriott.com, 2017).
Turnover rate of customers Customers form to be the main source of income for
hotels. More number of customers ensures that
availing of services is improved and subsequently
high returns are made (Jauhari, 2017). On the notary,
if less number of customers turns up within a
particular season, the sales of services and products
are hampered.
Average spending power of
customers
The spending capabilities of the customers within
the targeted market segment are an important factor
for generating revenues (Mohammed et al. 2015). In
this context, Marriott directs its products and
services towards customers that have high spending
capabilities to ensure proper returns.
Cost of labour The increased cost of labour decreases the revenues
generated by the hotel. This includes salaries,
benefits and remuneration paid to staffs that are