Comprehensive Analysis of Hospitality Operations at Marriott Hotels

This report provides a comprehensive analysis of hospitality operations management, using the Marriott Hotel as a case study. It begins with an introduction to hospitality services, including product and service nature, demand influences, customer profiles, and spending patterns. Task 1 examines the nature of hospitality products and services, demand influences, customer profiles, and average spending power. Task 2 delves into product and service development, customer perception, opportunities, constraints, and merchandising. Task 3 covers pricing methods and factors affecting revenue and profitability. Task 4 addresses performance measures and appraisal techniques. The report explores Marriott's strategies for service delivery, customer satisfaction, and revenue generation, including pricing strategies and market analysis, and the impact of economic conditions on customer behavior. The report highlights key stages in product and service development, customer perception, opportunities, constraints, and merchandising. It also examines various pricing methods, including cost-oriented and market-oriented pricing, and factors influencing revenue and profitability. Finally, it discusses performance measures and appraisal techniques applied within hospitality operations.

Hospitality Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Nature of different hospitality product and services area.....................................................3
1.2 Different influences affecting patterns of demand within hospitality operations ............4
1.3 Customer profile with different expectation and requirements.............................................4
1.4 Average spending power in hospitality business..................................................................5
TASK 2 ...........................................................................................................................................5
2.1 Key stages in product and service development applied within a hospitality operation ......5
2.2 features which contribute towards the customers’ perception of products and services......6
2.3 Opportunities and constraints affecting product and service development..........................6
2.4 Merchandising opportunities for hospitality products and services......................................6
TASK 3............................................................................................................................................7
3.1 different methods of pricing taking into account additional pricing considerations.............7
3.2 Factors affect revenue generation and profitability in hospitality operations.......................7
TASK 4............................................................................................................................................8
4.1 Different performance measures and appraisal techniques to individual aspects of
hospitality operations..................................................................................................................8
4.2 Effectiveness of different quantitative and qualitative appraisal techniques and their
application to hospitality operations...........................................................................................9
4.3 Application of approaches appropriate for operations in hospitality industry....................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
....................................................................................................................................................12

INTRODUCTION
Hospitality firms offer entertainment of guest or visitors which relate with travel and
services, food and accommodation. Major motive of hospitality is to provide various services to
their customers such as resort and casino, restaurants etc. It involve relationship between client
and hotel. In today era there are large of people travel to different places for exploring new areas
and to experience leisure time which determine that from several past years tourism industry is
growing in whole world (Bramwell, and Lane 2012). This present assignment contain the
information about Marriott which is multinational hotel that provide hospitality services to its
customers. This report covers several products and services that relate with hospitality sector.
Along with this customer expectation that are relate with journey and requirements that are
needed by hotel industry to satisfy the need or demand of customer is mention.
TASK 1
1.1 Nature of different hospitality product and services area.
In hospitality sector customer buy service rather than to purchase products every
stakeholder that relate with this sector provide specific service to their guest. Nature of product
and service is mention as follow:
Intangibility- Services that provide by hotel are mostly intangible such as
accommodation and lodging, travel and tourism etc. this are only experienced by guest. In case
of Marriott London they provide this services with inferior quality it help customer to consume
and experience this service comfortably (Bramwell, 2013).
Inconsistency- Services are not same every time they are differ so it cannot be
standardise even if service supplier is same, there is change in taste or delivery time that provide
different experience to its customer.
Inseparability- In hospitality sector the service provider contain unique characteristic to
deliver their service to its customers. So it cannot be separated from the service provider which
provide inseparable nature to its customers. Like Marriott they provide similar services to its
guest in all its chained hotels such as positive environment.

Nominal time to deliver food- It is essential for each hotel that they provide healthy food
to its customers with in minimum time period without comprising with quality. For this cooking
team of Marriott keep their kitchen environment hygiene so they provide better food to guest.
1.2 Different influences affecting patterns of demand within hospitality operations
Some factor that affect demand of hotel to manage their operation are differ from each
other. It include specific day of week, peak time and fashion etc. some points for this sector are
mention as below:
Negative demand- It is essential for service sector to create awareness about their
product. It help to create positive response for their existing customers and to attract new
potential buyers. In case of Marriott hotel it is necessary for them to formulate strategy that
create positive demand for their guest (Bryman, 2017).
No demand- In service sector if people are unaware about product then company has to
face loss for and management find difficulty to manage its operations. So in this case marketing
teams of Marriott promote campaign and develop communication channel which help to interact
with guest and to understand their needs quickly.
Latent demand- It is not possible that singular product or service satisfy all needs of
customer. To overcome from this problem management of Marriott hotel analysis the gap
between what resources are available inside company and what are desirable by their customers.
1.3 Customer profile with different expectation and requirements
Each and every customer has some different expectation and requirement that depend on
their behaviour. This task cover some expectation of guest which are mention as follow:
Types of business- In hospitality sector there are mainly three type of business which
include travel and tourism, food and beverage and accommodation. In this Marriott hotel is best
as they provide better accommodation services to its customer as it work strength for company
(Duval, and Smith, 2013).
Pricing consideration- Most of the customer that visited in hotel are youth and families.
For big hotel such as Marriott it is essential that they provide best services to its customers
as they are not price conscious but they are concerned for service.
Meal experience – In big hotel it is necessary that customer get good food as it beneficial
for satisfying their needs. Like in this case celebrities and sport person came to stay in hotels so
it is essential for management to include light and healthy food which satisfy need of customers.

1.4 Average spending power in hospitality business
ASP as in circumstance of hospitality business are the services that are offer to customers
with nominal price. Some factors that vary on hospitality business regarding ASP is as follow: Size of income- The income of customer is the major factor that relate with its average
sending power as they prefer to consume those services which are in budget. For this
Marriott hotel divide its services as per customer segment.
 Economic situation- The economic condition of country decide customer purchasing
power. In developed countries customer consume luxury services while in developing
countries customers are price conscious to spend income on luxury needs.
TASK 2
2.1 Key stages in product and service development applied within a hospitality operation
In context of Marriott hotel there are various factors which are used to research and
examine the plan of hotel this is mention as follow it is executed whenever management thought
to develop plan:
Idea evaluation- Lots of new ideas are present in company to develop new service or
product but all this ideas are evaluated and among them best idea is chosen which is more viable.
Along with this strength and weakness of this ideas are also analysed. It help to fulfil demand of
customer in dynamic environment.
Market research- It is the effective tool that help management to find opportunity in the
market. Moreover with this market research demand for new products and customer preference is
analysed as it help to company to launch product that generate profits for company (Hunter,
2012).
Market segmentation- With proper market segmentation management of Marriott hotel is
able to satisfy large numbers of consumers with singular product. Like cheap rates attract more
number of customers and cover all segments by which goodwill of hotel is increased. As more
numbers of customer start to stay in hotel.
Advertising- The last essential element for the development of new product or service is
advertising. It help to create awareness in market about new product, in case of Marriott hotel it
is essential to aware customer about their desire as it help customer to spend income on luxury.

2.2 features which contribute towards the customers’ perception of products and services
As Marriott hotel is operating their business all over the world so it is necessary for them
to attract more customer because it cover the cost of business activities (Hwang and Stewart,
2012). For this management formulate strategy by which they develop good perception of among
customer for their product or service. Strong brand image of service or product help to build
positive perception about hotel. In hospitality industry food & beverage sector plays an important
role to attract more customers like nutrition and delicious menu attract customer to spend their
income on food. For this it is necessary for hotel to ensure that they have all essential resource
are present in company to fulfil needs of customers. At last to create positive environment among
all hotel so customer has enough space as it help to build positive perception and advertise their
new services and product.
2.3 Opportunities and constraints affecting product and service development
Opportunities refer to those factor that are necessary to expand and boost the business. It
help to increase revenue by increasing sale of its products. While constraint work as barrier for
business it decrease sale of company and block way to achieve goal of company.
In circumstance of Marriott hotel, management has more opportunities to compete with
competitors as they are present among all world. Another is they plan different activities for
guest like for single person it relate with game, while for families it relate with food. Different
activities fulfil need of customers individually which create strong customer base for hotel.
The other is constraint that include limited accommodation, slow service and less
facilities. Basically attractive services with wide range are provided by hospitality companies so
that customers attracted towards the. Another is Marriott hotel placed their infrastructure beside
the city which create distance between guest and hotel and its environment will be surrounded
by village which create barrier among customers.
2.4 Merchandising opportunities for hospitality products and services
Today whole world is globalised as people start to visit other countries or cities for travel
and business purpose (Kapiki, 2012). It start to expands hospitality sector in overall world.
Some aspect that relate with hospitality industry is as follow:
1. In service sector customer want different services that are necessary to complete their
project. Like for hospitality sector travellers expectation depend on their purchasing

power. So hotel management charge high price to provide premium service to its
customers.
2. The economic condition of both whether it is traveller or country in which guest want to
travel create opportunity for business as it increase value of their service and give
competitive advantage for hospitality business (LiL. and Law, 2012).
TASK 3
3.1 different methods of pricing taking into account additional pricing considerations
In the operation management of hospitality industry there are different methods which
help to determine the price of different products and services. By this management of hotel
develop profits for their business some methods that are relate with pricing consideration of
hospitality business is as follow:
Cost oriented pricing- This is the easiest way of pricing as price is regulate with the
production cost. In this some percentage of profit is already included in the cost of product or
service before selling it into the market.
Market oriented pricing- To conduct market oriented pricing marketing research is
conducted it help to understand competitors price and market demand and based on this the price
for Marriott hotel decide price for their products or services.
Price penetration- Under the price penetration method management enter into market
with low price and slowly it increase their price for their product or service. In this management
of hotel implement this strategy when they are entering into new place which create smooth
entry to enter into new market (O'Driscoll, 2012).
In this case three price model are discussed which are useful to expand business of
Marriott hotel. For this service charges are imposed on customer to consume their meal which
determine that some extra charge are pay by customer to consumer good food.
3.2 Factors affect revenue generation and profitability in hospitality operations
Their are different factors that impact on the revenue and profits of hospitality business.
Different types of revenue are the factors which are consider to analysis profitability factors such
that impact on revenue generation are mention as follow:

Labour intensity- In the hospitality industry the utilization of capital is very low as
compare with labour. Therefore this industry is known as labour intensive market. Moreover
huge amount of capital is used to build the infrastructure of company.
Shelf life- For this case first the new plan is formulated for development of product or
service. It help organisation or hotel to sustain them in market for longer period (Okumus,
2013). It also affected by the brand name as more goodwill help management to charge high
price fr its products.
Degree of customer satisfaction- The present environment of Hotel impact high on
customer as it necessary that satisfaction level of customer is increased which signifies long term
profit for the company. For this some positive initiative developed by management which help to
predict out needs of customers.
Elasticity of demand- The demand of products depend upon their price, as in Marriott
hotel price elasticity for demand and supply of product is inelastic. This states that if there is
change of price of product or service it does impact on the number of customer or guest because
of price.
Standardization- For different customers there is different need and demand like the
food menu change with the culture. Like for royal customers food is served to them with proper
hygiene and it include favourite dishes which determine management of hotel fulfil need of
customer easily.
TASK 4
4.1 Different performance measures and appraisal techniques to individual aspects of hospitality
operations
The most usable methodologies is performance appraisal which is best to measure the
performance of an organisation (Price, AND et. al., 2015). It also evaluate the performance of
employees that are working in the organisation. For the manager of Marriott hotel it is necessary
to consider service cost and manufacturing cost of products which signify benefits of
performance appraisal. For the operation of Marriott hotel some methods for performance
appraisal is as follow:

Quality management- The process of quality management need to consider service
quality of hospitality products but it also help to explorer the ways by which they improve their
performance. As it determine overall growth of organisation including employees.
Speed of delivery- The delivery time of products or to satisfy need of customer it is
necessary for hospitality business to response them quickly. As it focus that customers are
accomplished by organisation.
Developing quantitative and qualitative data- For measure of overall performance of
operation management it is necessary to collect all types of data. In the context of hospitality
business in include service quality, customer satisfaction and reliability and with in quantitative
data organisation consider product pricing, loyal customers etc. which help to conduct goals of
company (Ryan, 2015).
Data analysis and evaluation- After collection of whole data it is important that they
evaluate this data as it is essential to analysis company actual performance with its expected
performance.
External performance- After finding of all internal data the management of hotel
overview external data so it is compare with others hotels. For this they also decide maintain
some standards for their business.
4.2 Effectiveness of different quantitative and qualitative appraisal techniques and their
application to hospitality operations
In most of the cases appraisal technique are run on base of sample data. While sometimes
it is complex to measure performance on this standards. Like the quality of service or product
depend on the attitude and performance of employees. While to measure the quality of
employees performance appraisal method is implemented. To address this factor several type of
questionnaire and interview are conducted but it is took as sample which signify that they are not
effective if they are execute for large number of population. As in this case Marriott hotel has
large chain of hotels (Saufi, Brien and Wilkins, 2014). So in this they required to maintain all
activities form central place. For example- The food and beverage that is provided by
management of Marriott is considered best in all segment of customers it determine that
customers are always paid equal as per price charged by them for service or product.

4.3 Application of approaches appropriate for operations in hospitality industry
To execute or implement different approach in hospitality business, it is very complex to
believe that this approach effectively manage all operations of hospitality business. The service
that are offered require enough amount of resources and facilities so that they satisfy demand of
customer easily. For example- In initial stage of hospitality industry hotel provide only lodging
facility to guest. Slowly to increase more value in products large hotel such as Marriott, IHG
started to provide more services such as safari, pick up and drop facility. It help to predict more
opportunity that are present in market which focus on the expansion of business (Upjohn and et.
al., 2013). Moreover in today era hotels are entered in catering market it help them to fulfil
different demand of customers which include institutional, transit and recreational. This help to
generate faith among and increase brand image of Hotel. At last this all services with proper
execution of approach help to Marriott to expand further their business in overall world.
CONCLUSION
From the above report it is concluded that hospitality operation management help
business to grow with the potential to earn large amount of profits. It help to create employment
opportunity in the countries. With proper implementation of operations in context of tourism
sector it help an organisation to grow in sustainable way for longer period. In context of Marriott
hotel it is larger chain of hotel which operates its Hotel in Asia, Europe, US, South Africa etc.
that build strong brand image of its name. This reason help attract management to grow their
business in other continents which are in developing stage for this company need good planning
tool run its operations effectively.

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