Hospitality Operations Management Report - Analysis of Marriott

This report provides a comprehensive analysis of Marriott's hospitality operations management. It begins with an introduction to the hospitality industry, highlighting the nature of products and services, including their perishable, intangible, and inseparable characteristics. The report then delves into factors influencing customer demand, such as seasonality, weekends, health considerations, and economic conditions. It examines customer profiles, expectations, and the factors affecting average spending power, including income, status, and economic factors. The core of the report explores Marriott's product and service development, outlining key stages, features influencing customer perception, and opportunities and restrictions impacting new product development. Furthermore, it discusses various pricing strategies and factors affecting revenue generation and profitability. Finally, the report assesses performance measurement and appraisal techniques, including quantitative and qualitative methods, and appropriate approaches for business analysis and new product development planning.

HOSPITALITY
OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1.1 Nature of products and services in hospitality industry......................................................1
P 1.2 Factors That Affects The Demand Of The Customers.......................................................2
P 1.3 Customer Profile And Different Expectations....................................................................3
P 1.4 Factors that affects average spending power(ASP)............................................................3
TASK 2............................................................................................................................................4
P 2.1 Key stages in product and service development and features that contribute towards the
customer perception.....................................................................................................................4
P 2.2 Various Possibility And Restriction That Impact the New Product And Service
Development ...............................................................................................................................5
P 2.3 Various merchandising opportunities.................................................................................5
TASK 3............................................................................................................................................6
P 3.1 Different methods of pricing..............................................................................................6
P 3.2 Factors that impact the revenue generation and profitability.............................................6
TASK 4............................................................................................................................................7
P 4.1 Various Performance Measure And Appraisal Techniques................................................7
P 4.2 Effectiveness Of Quantitative And Qualitative Appraisal techniques...............................8
P 4.3 Approaches That Are Appropriate For Business Analyses And Planning Of New Product
And Development........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marriott is an international hotel company hardhearted in Washington D.C. that handles and
provide various services and products like lodging services, recreational, and travel and tourism
services etc. However, this report will highlight the nature of products and services of hospitality
industry which is inclusive of perishability, intangible, inseparability etc. Further, the project will
outline the factors that impact the demand pattern of the customers like seasonal factor,
weekends, healthy surroundings and economic factor (Hiassat, Diabat and Rahwan, 2017).
Moreover, the report will frame about the customer requirement and profile which is inclusive of
food and beverages, pricing and different services. On the other hand, the assignment will
comment on the factors that affect average spending power of the customers like size o income,
status, economic factor etc. Further, the report will highlight about the key stages of new product
development undertaken by the Marriott hotel and along with that it will highlight the features
that will influence the customer perception towards the products and services. Moreover, the
assignment will frame about the various opportunities and restrictions that will affect the new
product and development of the company. On the other side of the report, it highlights the
various pricing strategies that are followed by the company to increase its revenue and sales.
Eventually the project will highlight the various appraisal and performance techniques for new
products and services.
TASK 1
P 1.1 Nature of products and services in hospitality industry
The hospitality industry is an area that put focus on customer requirements at the same time
offering luxuriousness services and products referring to lodging, food and beverage offerings,
and tourism and tour (Riemer and Johnston,2017). However, there many services that are
provided by the hospitality industry which encompasses of housekeeping services, restaurant
services, event planners of hotels, waiter or waitress services, chef and bartender, cleaning
services, proper management services etc.
Moreover, Marriott is an international hospitality company that provide diversified
services and products to its customers which includes in accommodation section hotel provide
various types of services like deluxe rooms for luxurious customers, business rooms for
businessman, premium suit for high class clients etc. Further, the hotel also provides ATM
facilities within their hotel area and also provides swimming pool services for different aged
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individuals like for children they have separate swimming pool and for elders they have different
separate pools. Moreover, the hotel provide the cafe services like crossroads cafe, Marriott cafe,
pastry shops etc. and along with they provide fitness and retreat spa services to its customers.
However, the services and the products are of different nature like some are perishable,
intangible, inseparability etc.
Perishable: The meals of the hotel and beverages at pubs and cafes of the hotel are
perishable in nature which means they cannot be consumed or stored for the next day as they are
not durable for longer period.
Tangible and Intangible: Services of the hotel industry are industry in nature like foods
and beverages that are consumed by the customer are cannot by touched and smell after they
have consumed it as they provide them satisfaction and it also includes behaviour of staff
towards the customer like empathy, flexibility etc. On the other hand, there are various tangible
services within the hotels like hotel interior and exterior design, hotel ambience, various tools of
hotels etc (Sun and Lin,2019).
Inseparability: The products and services of the hotel industry are inseparable that means
production and consumption of hotel services are inseparable i.e. the consumer experience the
services' of hotel then and there only, they cannot consume the food or experience the service by
taking it at their homes. Thus, they can just take good memories and experience with them.
P 1.2 Factors That Affects The Demand Of The Customers
The demand in the hospitality industry does not remain same all over the month or year, thus it
changes due to many factors like seasonal or vacations.
Seasonal :Moreover, the demand pattern of customer for Marriott hotel changes
according the facilities offered by the hotel like they provide separate swimming pools for
children and elders, thus, the families with their children visit the hotel during vacations etc.
However, the Marriott hotel retreat spa services for customers which increase its demand in
summer holidays where people want to get relax from their work and they visit the hotel.
Weekends:Further, the hotel provide various accommodation facilities on weekends for
the couple as most of the families and couples spend their weekends at hotel for relaxing, thus,
due to such accommodation facilities the demand pattern of customers toward the hotel
increases.
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Healthy surroundings and food: However, today people have become more hygienic
towards their health, thus they select the hotel which provide the best healthy food and
surrounding which are good for the customers (Schumpeter, 2017). As an example, the Marriott
hotel have cafes and dinning sections where they provide different types of foods which are
healthy, thus, this factor influences the demand factor of visitors.
Economic factor: This is major factor that affects the demand of the customer like if the
economy of country is declining which means less income are earned by the people then they
reduce their spending which in turn affects the revenue of the hotel and its demand declines as in
such condition customer prefer to visit the hotels which are less expensive.
P 1.3 Customer Profile And Different Expectations
There are different expectations and wants of customers and according those requirements'
customer profiles are prepared by the hotels.
Different services:The Marriott hotel provides various types of accommodation services
like premium rooms, deluxe rooms for couples, business rooms for meetings etc. thus, according
to the requirements customers visit the hotel. For an example, the families who visit the hotel on
weekends will prefer the Marriott hotel as they provide premium suits for high class families etc.
Pricing: The Marriott hotel is most luxurious hotel of the world, thus, people visit their
with the expectations of the best services and products without considering the price factor.
Thus, the hotel make the customer profile keeping in mind the services that are required by the
customers instead of cost factor (Nyangwe and Buhalis,2018).
Foods and beverages: As the Marriott hotel provides healthy food and they have different
food sections like dinning halls, cafes, pastry shops etc. which provide healthy and different
types of foods and beverage according to the desires of the customers, thus, the customers who
are foody will visit Marriott hotel as they provide different types of meals.
P 1.4 Factors that affects average spending power(ASP)
Average spending power evaluates the customer desires and motive towards the products and
services. Thus, there are various factors through which the Average spending power of
customers can be analyzed:
Size of income: hotel evaluate the average income of guests by analyzing about the
income level of the customers. Thus, the customers with higher earning power willing to spend
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more on the products and services whereas the customer lower income will spend less on the
services of hotels.
Status: This is another essential factor that determine the average spending power of the
guests. However, the customer who live luxurious life then they expect better services and
products from the hotel without considering the price factor (Dhir,2019).
Cultural factors: Various cultural and social factors influences the average spending
power of the customer. For instance, during the festivals or main events the families spend more
during that phase as opposed to other occasions.
Economic factor: If the economic condition of the country is declining then the earning
power of the guests will also be reduced, thus they spend less than their average earning power.
TASK 2
P 2.1 Key stages in product and service development and features that contribute towards the
customer perception
The operation manager of Marriott hotel will undertake four major stages to develop its new
product and services.
Idea generation: During this stage the hotel will analyze the viability of new ides through
which they earn higher income and increase its customer base.
Market research: In this stage the operation manager of the hotel will determine the
requirements of customer by conducting survey and taking suggestions from the customers.
Market segmentation: At this stage the hotel will target those customers who are willing
to pay more price for improved services and products (Thomson,2010).
Marketing: Within this factor the marketing department of the Marriott hotel will
undertake various marketing strategies and platform to promote its products like creating
awareness among their existing customers and promoting products through various social media
platforms like Facebook, Instagram, Twitter etc. which in turn will increase the sales and
revenue of the hotel.
Features that contribute towards customer perceptions
Good reputation of the hotel can positively influence the perception of the customers
regarding products and services of the hotels.
The food and beverages menu of the hotel are captivating which includes nourishing,
toothsome, and manifestly dietetic which influences the perceptions of customers.
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Further, special services and products for the disabled customers attracts the customers to
visit the hotel.
Moreover, different styles of providing services of hotel affect desire of the customers.
For an example if the services for female, males and couples are different with different service
providers then the customers will be attracted to visit the hotel.
P 2.2 Various Possibility And Restriction That Impact the New Product And Service
Development
Marriott hotels have various opportunities and restrictions which will affect its new production
and development, thus, the opportunities will enhance the development of the hotel and increases
its sales whereas, the constraints will reduce the operations of the company which in turn
declines the profits of the hotel. However, there are various opportunities and restrictions which
are available for the hotel.
Since the Marriott is an international hotel and cover huge customer base, thus, the
company have an opportunity to increase its new products and services in the markets of Europe.
The hotel can increase its market share by adopting attracting marketing strategies like
promoting products and services by making aware the existing customer regarding their new
products through chat-bots, emails, Instagram, Facebook etc.
The Marriott hotel can face competition as more and more hotel are being established
with enhanced products and services which restricts the development of new products and
services of Marriott hotel (Arnett, Sandvik and Sandvik,2018).
Another constraints that hotel may face is declining economy of the country which
reduces the spending power of the customers which in turn reduces the sales and revenue of the
company.
P 2.3 Various merchandising opportunities
Merchandising is the activity and system of displaying and promoting products and services to
the to clients whether through digital platform or in place promotion, service provider use
merchandising to steer customer needs and reach their income desires. However, establishing the
proper merchandising method can rely on a diffusion of factors, such as area, product features
etc.
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However, the customers expects improved products and services from the hotels like
better housekeeping services, improved lodging services etc. thus the hotels can charge higher
prices for the services which increases the merchandising advantage for the company.
Moreover, if the economic conditions of the country improve then the customer will
willing to visit the hotel which offer enhanced services and products without considering the cost
of the services, thus, it will increase the merchandising advantage of the company.
TASK 3
P 3.1 Different methods of pricing
For hotel industry, maximizing sales and profits are the major goals for which companies adopt
different pricing strategies in order to achieve high revenue and enhanced brand image.
However, Marriott hotel uses different pricing strategies like cost based, demand based,
competitor based etc. through which they increase their revenue and sales of the company.
Cost based pricing strategy: Under this method the hotel add up all the operating cost in
the products and services which are offered to customers like janitorial cost, security costs,
accommodation taxes, marketing cost etc. according to profit level they want to earn. Further,
this method is most viable among all methods as it help the company to charge the
accommodation cost from customers for earning profits. However, this method avoids the
customer preferences regarding the price which eventually impacts the demand pattern of the
customers (Bowie, D and et.al., 2016).
Demand based pricing: In this strategy Marriott hotel sets the price of the product
according to demand of accommodation, for example, during vacations time or festive season the
demand of product and services increase thus the hotel charges higher prices for its rooms, cafes
and other services like swimming pool, fitness, business meetings etc.
Competition based pricing: In this strategy the Marriott decide the price of its products
and services considering the price of its competitors and the facilities they provide to their
customer, thus, with the help of such method company can attract different customers towards
their products and services by deciding unique pricing strategy.
P 3.2 Factors that impact the revenue generation and profitability
In hospitality industry there are various factors that impacts the revenue generation and
profitability of the company like labor intensive, demand, standardization, shelf life etc.
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However, the factors that effect the revenue of the Marriott hotel are competitors, elasticity of
demand, labor cost etc.
Elasticity of demand : the demand of products and services of the Marriott hotel
decreases due to the seasonal factors like in vacations or festive seasons the more guests visit the
hotel which increases the demand for hotel which in turn increases the sales and income of the
hotel. Whereas, the demand for hotel services decreases when there are no vacations or no
special events, thus, less number of people visit the hotel which in turn declines the revenue of
the hotel.
Labor oriented: The Marriott hotel uses more of labor that mean they require staff for
every department of their hotel like housekeeping, janitorial services, maintenance service,
marketing of products and services etc. Thus, these factors increases the labor cost of the hotel
which will reduce the revenue generation and profitability of the company.
Standardization: The Marriott hotel provide highly nutrient and delicious menu which
attract the customer to visit the hotel often and moreover, the hotel provide pleasant surrounding
and standard services which influences the customer perception to visit the hotel and thus it will
enhance their revenue and profits (Bernard, 2017).
TASK 4
P 4.1 Various Performance Measure And Appraisal Techniques
The Marriott hotel uses various techniques that measure the performance and appraisal of the
company which is inclusive of quality management, speed of delivery, data analysis, sales
performance etc.
Quality management: With the help of this tool, the Marriott hotel determine the quality
of their services and products by taking feedback and also evaluate the ways through which they
can improve their quality of services.
Speed of respond: In the factor the company analyze how quickly the orders and queries
of customers are being responded and accordingly their improve their management process to
respond quickly to the customers.
Data analyses: In this factor the hotel will compare their actual performance with the
predecided objectives and if they find any deviation then they determine the ways through which
they can achieve the predecided goals and objectives.
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External competition: In this factor the Marriott compare their pricing strategies and
services with other competitors and accordingly decide the price of their services like pricing of
rooms, cafe, fitness etc.
Sales performance: In this factor the Marriott hotel analyze the sales performance by
evaluating their sales revenue and according to which they will improve their products and
services in order to enhance their sales and overall net profit of the company.
P 4.2 Effectiveness Of Quantitative And Qualitative Appraisal techniques
In hotel industry the appraisal techniques are used on the basis of sample statistics which are not
accurate thus, the company collects the quantitative data of the quality of services provided by
the company, performance of the employees, attitude of the staff towards the customer queries,
and customer sanctification level etc. However, the Marriott Hotel make use of different
qualitative techniques in order to get the quantitative data like they conduct survey from
customers regarding the attitude of the employees and take interviews from the guests regarding
the suggestions for improvement in the services and products inclusive of infrastructure
(Brannen, 2017). Thus, the qualitative and quantitative techniques are effective as through which
the company will be able to analyze the performance and evaluate the methods to enhance the
services.
P 4.3 Approaches That Are Appropriate For Business Analyses And Planning Of New Product
And Development.
There are various approaches which are applied by the hospitality industry to develop and
enhance their products and services like in preceding year the hotel industries provide enhanced
accommodation facilities but today they have adopted more products and services to attract the
customers like fitness services, cafes etc. Moreover, the Marriott hotel adopted product life cycle
method where they evaluate the growth of products and forecast the future demand of products
and services accordingly improve their offering (Product Life Cycle 2018). Further, the Marriott
hotel decide to provide three basic services to its customers like providing lodging services to
non-residents, businessman, and local guests which will increase the revenue of the company and
enhance their brand image worldwide. Further, the hotel will try to improve the services and
products which they have analyzed through conducting surveys and taking feedback from the
customer.
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CONCLUSION
The report will briefly summarize about the nature of different products and services of Marriott
hotel and along with that it have highlighted about the factors that influences the demand pattern
of the customer towards the products and services. Moreover, the project have outlined the key
stages that are adopted by company for new product and development. On the flip side, the
project have framed about the various factors that will affect the revenue generation of the hotel
like demand, labor sensitive etc. Further, the report have highlighted about the various qualitative
and quantitative approach like survey, interview etc. through which they will develop their new
products and services. Eventually the project have framed about the approaches of business
analysis adopted by the company for new product and development.
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REFERENCES
Books and Journals
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inventory-routing problem with perishable products. Journal of manufacturing
systems.42.pp.93-103.
Riemer, K. and Johnston, R.B., 2017. CLARIFYING ONTOLOGICAL INSEPARABILITY
WITH HEIDEGGER’S ANALYSIS OF EQUIPMENT. MIS Quarterly.41(4).
Sun, Y.Y. and Lin, P.C., 2019. How far will we travel? A global distance pattern of international
travel from both demand and supply perspectives. Tourism Economics,
p.1354816618825216.
Schumpeter, J.A., 2017. Theory of economic development. Routledge.
Nyangwe, S. and Buhalis, D., 2018. Branding transformation through social media and co-
creation: lessons from marriott international. In Information and Communication
Technologies in Tourism 2018 (pp. 257-269). Springer, Cham.
Dhir, S., 2019. Marriott Hotels. In Cases in Strategic Management (pp. 147-162). Springer,
Singapore.
Thomson, H.N., 2010. Virtual Experiential Marketing at Marriott International, Inc: An
Examination of Effects on Consumer Purchase Intentions (Doctoral dissertation,
University of North Carolina Wilmington).
Arnett, D.B., Sandvik, I.L. and Sandvik, K., 2018. Two paths to organizational effectiveness–
Product advantage and life-cycle flexibility. Journal of Business Research.84.pp.285-292.
Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Routledge.
Bernard, H.R., 2017. Research methods in anthropology: Qualitative and quantitative
approaches. Rowman & Littlefield.
Brannen, J., 2017. Combining qualitative and quantitative approaches: an overview. In Mixing
methods: Qualitative and quantitative research (pp. 3-37). Routledge.
Prifti, E. and et.al., 2019. How much is too much: Does the size of income support transfers
affect labor supply?. Journal of Policy Modeling.41(1).pp.179-196.
Online
Product Life Cycle 2018. [Online].Available through :
<https://www.tutor2u.net/business/reference/product-life-cycle>
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