Hospitality Operations Management: A Detailed Report on Marriott Hotel

This report offers a comprehensive analysis of hospitality operations management, using the Marriott Hotel as a case study. It begins with an introduction to operations management in the hospitality sector, defining key concepts like perishability, tangible and intangible elements, and service areas. The report then explores the factors influencing demand patterns, including seasonal variations, economic factors, and customer profiles. It further delves into product and service development, assessing key stages, features impacting customer perception, and the opportunities and constraints within the hospitality environment. The report also examines pricing strategies, revenue generation, and profitability in the context of the Marriott Hotel. Finally, it evaluates various performance measures and appraisal techniques, concluding with recommendations for action. The report covers topics like product and service development, pricing strategies, customer profiles, and performance appraisal within the Marriott Hotel, offering a detailed overview of operational management within the hospitality industry.

Hospitality
Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Analyse the nature of different hospitality product and service areas..................................3
1.2Evaluate the different influences affecting patterns of demand within hospitality
operations....................................................................................................................................4
1.3Compare customer profiles and their differing expectations and requirements in respect of
hospitality provision....................................................................................................................4
1.4Analyse factors affecting average spending power in hospitality businesses........................5
TASK 2 ...........................................................................................................................................6
2.1Evaluate the key stages in product and service development applied within a hospitality
operation ....................................................................................................................................6
2.2Analyse the features which contribute towards the customers’ perception of products and
services........................................................................................................................................6
2.3Assess the opportunities and constraints affecting product and service development within
a hospitality environment ...........................................................................................................7
2.4 Evaluate different merchandising opportunities for hospitality products and services........8
TASK 3............................................................................................................................................8
3.1Evaluate different methods of pricing taking into account additional pricing considerations
.....................................................................................................................................................8
3.2Assess the factors which affect revenue generation and profitability in hospitality
operations....................................................................................................................................9
TASK 4............................................................................................................................................9
4.1Apply different performance measures and appraisal techniques to individual aspects of
hospitality operations, the product and the whole operation......................................................9

4.2Determine the effectiveness of different quantitative and qualitative appraisal techniques
and their application to hospitality operations..........................................................................10
4.3Apply approaches to business analysis, evaluation and planning appropriate to hospitality
operations, making proposals for action ..................................................................................10
CONCLUSION.............................................................................................................................11
REFERENCES..............................................................................................................................12
INTRODUCTION
Operation management plays important role in hospitality industry. In the hospitality
sector operation management is referred as various activities performed in different fields of
hotel industry (Bowie, 2016). The term hospitality refers to building process of relationship
between hotel and guest by being hospitable which involves goodwill, guest reception, friendly
environment and liberty. Whereas operation management is concerned with administration of
business operations to create and maintain level of highest efficiency in the organisation. In this
following report Marriott hotel is considered as it is world largest hotel chain across the world
which was founded by J. Willard Marriott based at Bethesda, Marryland in Washington, D.C. It
operates in more than 127 countries with around 1.2 million rooms with more than 6500
properties across the world. In this report is has been discussed about characteristics, product
development description, pricing and profitability concepts and performance appraisal
techniques to analyse and improve operational performance of hospitality operations.
TASK 1
1.1 Analyse the nature of different hospitality product and service areas.
Food and beverages are products of hotel business and facilities can be included in
services. These products and services offered are perishable and non-durable. Nevertheless,
nature of hospitality products and service areas of the Marriott hotel are defined below:-
1. Perishable- The food and beverages offered by Marriott hotel to its customers
comprising of other hospitality products are not such durable but they are perishable in
nature.
2. Tangible and Intangible elements-The quality of service in hotel business consist of its
strength and weakness. Intangible service elements of Marriott Hotel involves responses

of customers, reliability, assurance, empathy and many more which are not
visible(Brotherton, 2015). On the other hand elements which are visible to customers of
Hotel Marriott includes hotel equipments, ambience, interior and exterior design of hotel
and so on.
3. Service Areas- The service areas of Marriott Hotel comprises of room facilities,
conference hall for meetings and seminars, food and beverage facilities, and banquet
facility where customers are able to manage lunch or dinner.
1.2Evaluate the different influences affecting patterns of demand within hospitality operations.
Demand of customers keeps on changing with according to needs and preferences. The
demand in the hotel business does not remain same in whole year or all days of week. Some of
major factors influencing demand pattern of customers of Marriott are discussed below:-
Seasonal factors- The main customers of Marriott hotel are climbers, hikers, and people who
spend leisure time in their vacations (Chan, 2016). The demand for Marriott hotel is based on the
seasons for example there are ample number of visitors in winter season as they want to enjoy
snowfalls and activities related to snow so, demand is affected with the changing seasons.
Time of the week- There is highest demand at the end of week as customers including couples,
families and children mainly choose weekends for travelling or spending quality time with each
other from their busy schedule.
Economic factors-If there are any changes in economic policies which affects the income level
of consumers either directly or indirectly so, this leads to decrease in demand of consumers for
Marriott hotel.
Healthy living- Now-a-days customers are very much concern about their health and give
preference to live healthy life that is why customers prefer to choose hotel where they are
provided with effective and hygiene sanitation facilities. So, this factor influence demand for
Hotel Marriott (De Grosbois, 2016).

1.3Compare customer profiles and their differing expectations and requirements in respect of
hospitality provision.
The customer profile of the Marriott hotel varies with different expectations of
consumers and their necessities. So, based on different expectations consumer profiles for hotel
has been described below:-
1. Types of hospitality Business- Hotel businesses mainly comprises of three types
consisting of accommodation, food and beverage, and Travel and tourism. In this case,
Marriott hotel is majorly based on accommodation for the customers. So, customers
prefer to come to this hotel to meet their purpose of accommodation.
2. Meal Experience- The hotel maintains high level of standard of the meal for its
customers. It have different customer base including sportsperson and their team. So,
Marriott hotel offers meal menu according to consumer preferences as they don't
consider heavy foods (Evans, 2015).
3. Pricing Considerations-The customers majorly of Marriott Hotel are couples and
families. They mainly emphasis on service facilities rather than price considerations
which further leads to high prices for all the services rendered.
4. Expectation Requirements- Marriott hotel have different customer base with different
expectations. So, services are rendered according to expectations of them and give them
high satisfaction level.
1.4Analyse factors affecting average spending power in hospitality businesses.
The average spending power refers to joint decision between hotel and consumers for
pricing process. With reference to hospitality business customers are provided with varities of
services with different price levels which shows the average spending power. The factors
affecting the average spending power are discussed below:-
1. Size of Income- The income level of customers is very much related to average spending
power of guests of Marriott Hotel. Their is positive relationship between income level
and average spending power (Kandampully,2015). The rise in income shows increase in
spending power of customers.
2. Economic Situation- The poor economic conditions force consumers of Marriott hotel to
spend less as their spending power decreases because of economic situations.

3. Status- High status consumers have high average spending power. The high class
customer belonging to royal family can't minimize its cost rather they prefer to spend
high cost for availing better services of Hotel Marriott which shows high spending
power.
4. Social and Cultural Influences- Culture and society have major impact on average
spending power of consumers. For instance, in case of festival season spending power for
hotel decrease and increases spending on festivals and occasions.
TASK 2
2.1Evaluate the key stages in product and service development applied within a hospitality
operation
As Marriott Hotel is planning to develop a new product. So, various stages necessary for
evaluation of key stages of new product development are defined below:-
 Idea Evaluation- Every idea related to product development should be tested and
evaluated properly. The manager of Marriott Hotel must analysis the viability of idea
along with new opportunities (Kimes, 2016).
 Market Research- It refers to in-depth study of market including trends, needs and
preferences of consumers. The demand for new products and services and customers
preferences should be analysed properly by the manager of Marriott Hotel.
 Market Segmentation- In context of Hotel Business, segmentation of market is
important stage for product development. If Marriott Hotel wants to attract more and
more customers from a particular segment than hotel must focus on price and
differentiate cost. So, that more sportsperson are attracted rather than families and
couples.
 Advertising and Awareness- This factor is related to how to create awareness and
persuade consumers for the products and services offered which leads to increase in
sales and knowledge about offerings of Marriott Hotel. This assist in upholding special
features of services and products offered to consumers.

2.2Analyse the features which contribute towards the customers’ perception of products and
services
Their are various features contributing in building good customer perception towards
products and services of the hospitality industry (Kotler,2017). To build reputation in market
with respect to brand image and service quality it can be maintained by considering certain
characteristics:-
 Strong Brand Image- A positive image or information related to products and services
offered by Marriott Hotel leads to develop consumers perception in positive manner.
 Service Quality- If consumers are provided with excellent services than it helps to build
trust towards the brand. Managers of Marriott emphasis on providing nutritious,
delicious, and dietary food menu to attract customers and maintains brand loyalty. The
hotel can be highly popularised by making special arrangements for disables persons.
Further this leads to positive perception among customers and market.
 Price- price refers to value charged from consumers in monetary terms for products and
services offered. If Reasonable price is charged from consumers for rent, facilities and
standard level food menu than customers holds good perception towards Marriott Hotel.
Also, hotel staff must ensure ample availability of resources to provide access to all customers
as, this will help in attracting more customers towards Marriott Hotel. The perception of
consumer is also based on ambience, accommodation, facilities, gesture and behaviour of
employees of Marriott Hotel (Ladkin, 2016).
2.3Assess the opportunities and constraints affecting product and service development within a
hospitality environment
Opportunities affect the product and service development as it assist in boosting and
increasing productivity of hotel whereas, constraints has negative impact on development of
service and product because it leads to decrease in sales and profit. Opportunities and
constraints affecting product and service development for Marriott Hotel is described below:-
OPPORTUNITIES
 Shift of consumer behaviour- The consumers now prefer more to stay in luxury hotels
as this is in trend and leads to increase in profitability for Marriott Hotel (Lee, 2015).

 Increase in global travel- Their is rise in number of travellers for both work, and
vacations has increased significantly. To grab this opportunity and gain competitive
advantage Marriott hotel must tie-up with airlines as this leads to creation of business.
WEAKNESSES
 Excessive focus on expansion- Marriott is doing aggressive expansion in hotel industry
by capturing huge market so, it is weakness because it's impossible to maintain service
standards and this leads to diminishing of brand.
 Overemphasis on service standardization- As managers of Marriott Hotel comply with
norms and rules strictly which leads to bringing down the morale of employees.
2.4 Evaluate different merchandising opportunities for hospitality products and services
In this globalised world, now more people travel for both business work and leisure
activities which leads to increase in hospitality business in the whole world. Also, for hospitality
products and services various merchandising opportunities can be availed by managers of
Marriott Hotel. Business travellers prefer high quality services according to their affordability
and purchasing power (Mendieta-Peñalver, 2018). Therefore, there is an opportunity for the
Marriott hotel to increase the awareness of its products and services in market by availing them
with value added services.
Digital technology helps in promoting business at international level with the help of
online platform. This is merchandising opportunity for Marriott hotel as this helps in generating
more business and increasing awareness of its services and products among customers. Also,
economic development leaves positive impact on the hospitality industry.
TASK 3
3.1Evaluate different methods of pricing taking into account additional pricing considerations
The Marriott Hotel is one of the leading organisation in the world. They use to provide
their products and service in hospitality industry, like rooms and food accommodations.
Therefore, it is very important for them to have appropriate pricing strategies which will help
them in defining the prices of products and services offered by them to their customers :-
 Economy pricing strategy : This is a pricing strategy which The Marriott Hotel can use,
as this will help them in providing the products and service offered by them at very low

price. Along with this, using this strategy will lead them in attracting ample number of
customers towards their products and services. Also by this strategy, they can provide
their products and service to middle class peoples also, which are one of the biggest
sector of society. This will help them in increasing their profitability and also customer
base at market place (Mohammed,2015).
 Pricing at a premium : Along with economy pricing strategy, The Marriott can use
premium pricing strategies, as this will help them in making both premium and economy
products and service of them. Also this will help them in attracting royal customers from
market place.
3.2Assess the factors which affect revenue generation and profitability in hospitality operations
The Marriott is one of the leading organisation in the world, which use to provide their
products and services in hospitality industry. There are ample number of factors that have power
to affect their revenue generation and also their profitability. Beneath are some of these :-
1. Cost of products : The Marriott Hotel use to provide products and services which are
said to be luxury and only royal part of society have ability to afford them. Therefore,
this is the which have huge impact on revenue generation and profitability of them. As
this help them in charging by the use of premium costing strategy, so that customers have
to pay huge cost for the products offered by them. This lead them in getting huge amount
as revenue from each and every customer of them. Along with this, it help them in
getting huge amount of profitability (Oskam, 2015).
2. Brand image : Brand image is very important for an organisation, as this help them in
attracting ample number of customers towards the products and services offered by them.
The Marriott Hotel is one of the biggest organisation in the world , and have very good
brand image in market place. As this helps them in attracting ample number of royal
customers towards the products and services offered by them, so that their revenue and
profitability keep increasing.

TASK 4
4.1Apply different performance measures and appraisal techniques to individual aspects of
hospitality operations, the product and the whole operation
Performance appraisal is considered as the method by which employees performance can
be evaluated. With respect to Marriott Hotel production cost, time, and quality of products and
services must be considered for performance evaluation (Rahimi, 2016) . The different appraisal
techniques for measuring overall performance following points can be considered by managers
of Marriott Hotel:-
 Speed of Delivery- For performance evaluation it is very important to monitor the
delivery time of services to consumers of Marriott Hotel.
 Developing Qualitative and Quantitative Data- Qualitative data involves service
quality, relatability of costumer, customer satisfaction and many more. Whereas,
quantitative data comprises of number of customers, prices of products as compared to
competitor, number of loyal customers etc.. both this data is developed for overall
appraisal of performance.
 External Comparison- For performance evaluation Marriott can do external comparison
with its competitors by setting benchmark on the basis of price and service quality.
4.2Determine the effectiveness of different quantitative and qualitative appraisal techniques and
their application to hospitality operations
The appraisal techniques is based on sample data but sometimes cant be taken into
consideration for fair measurements of performance (Rhee,2015). For instance, employee
attitudes, quality of employees, product and service quality are part of quantitative appraisal
methods. These factors can be further assessed with the help of interviews and questionnaires.
The main drawback of this method that outcomes from this method cant be applied to wider
population. In context of Marriott Hotel, the products and services satisfies customers to a great
extent. Whereas quantitative factors can be applied to wide population as these factors can be
evaluated with the help of primary and secondary data. These factors comprises of increment in
revenues, market share and volume of production. With reference to Marriott Hotel, managers
measure the effectiveness by considering financial statements and customer feedbacks.

4.3Apply approaches to business analysis, evaluation and planning appropriate to hospitality
operations, making proposals for action
It is very critical to consider the approaches of operations for the business of Hospitality such as
facilities, accommodation marketing, and demand generating sources. In earlier times, hotels
treated customers only by providing facilities of lodging. But now customers are getting value
added services like safari, sightseeing and many more (Salvioni, 2016). Marriott Hotel should
expect types of customers which can be business users, holiday users and other users. As the
products and services offered by the hotel will emphasises on fulfilling needs of consumers.
The planning process when considered three major types are identified consisting of goal
dependent planning, standing plans and single use plans. Goal dependent panning refers to
objectives, performance standards and budget. Single use plans focuses on accomplishing
temporary goals. Ongoing application is known as standing plans.
Therefore, analysis and implementation of new approaches must be based on
combination of planning methodologies.
CONCLUSION
From the above report it has been analysed that operational management assist hospitality
businesses. It shows the different factors influencing demand patterns of consumers in operations
of hospitality industry (Solnet, 2015). It can also be concluded that pricing methods are taken
into consideration for setting up of prices of products and services. Along with this, factors
affecting revenue generation and profitability in hospitality operations have also been discussed.
Lastly, this report explains about different performance appraisal methods and techniques,
effectiveness and application of qualitative, quantitative techniques of appraisal in hospitality
operations (Zuo,2017). Also, approaches to business analysis, evaluation and planning for
preparation of proposal of action related to hospitality operations.

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