Comprehensive Analysis of Hospitality Product and Service Management

This report examines various aspects of hospitality management, focusing on the Hilton Hotel. It begins by defining the nature of hospitality products and services, covering both tangible and intangible elements, and then evaluates the influences affecting demand, such as time of day, health trends, and economic factors. The report also explores customer profiles, differing expectations, and the factors influencing average spending power. Key stages in product and service development, including idea evaluation and market research, are assessed, along with features that contribute to customer perception. The opportunities and constraints affecting product and service development within a hospitality environment are also analyzed. Furthermore, the report evaluates different pricing methods and factors impacting revenue generation and profitability. Finally, it discusses performance measures, appraisal techniques, and approaches to business evaluation and planning within the hospitality context.

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Define analyse the nature of hospitality product and service areas. ....................................1
1.2 Description on the evaluation of influences of that affects the demand within hospitality
operations. ..................................................................................................................................2
1.3 Explain customer profiles and differ expectation and requirements in terms to hospitality
provisions. ..................................................................................................................................3
1.4 Define the factors affecting average spending power within enterprise. .............................3
2.1 Evaluation on key stages in product and service development applied within a hospitality
operation......................................................................................................................................4
2.2 Description on the features that contributes towards the customer perception of product
and services. ...............................................................................................................................4
2.3 Access the opportunities and constraints affecting product and service development within
hospital environment. .................................................................................................................5
2.4 Description on the evaluation on merchandising opportunity for hospitality product and
service.........................................................................................................................................5
TASK 2............................................................................................................................................6
3.1 Evaluation of the different methods of pricing and additional pricing consideration within
the hospitality organisations. ......................................................................................................6
3.2 Description on access of factors that affects the revenue generation and profitability in
hospitality operations. ................................................................................................................6
TASK 3............................................................................................................................................7
4.1 Description on the range of performance measure and appraisal techniques to individual
aspects of the hospitality operations. .........................................................................................7
4.2 Determine the usefulness and limitation of various quantitative and qualitative appraisal
techniques and their application to the hospitality operations. ..................................................8
4.3 Description on the approaches to the business evaluation, planning appropriate to the
hospitality operations. ................................................................................................................8
CONCLUSION................................................................................................................................9

REFERENCES..............................................................................................................................10
Online........................................................................................................................................10

INTRODUCTION
The term hotel operation management refers as to wide area that will be inclusive of the
wide range of the skills (Hospitality industry, 2016.). This, it can be considered as multifaceted
industry so that they can able to undertake the operational function in the systematic manner.
There are number of the areas as are desk management, housekeeping, food services,
accommodation services, customer care assistance. This all things are related to human resource
planning (Radosavljević, Jevtić and Klimenta, 2016).
On the other hand operational function also play the essential role in order to manage the
each activities in the organized manner. Thus, present report is based on the business activities of
the Hotel Hilton. In addition to this, report will cover the various things as are Role of the hotel
product and it services and the differed influence that can work as to affecting the hospitality
business in the appropriate manner. In addition to this, the main aim object is to make effective
comparison between the consumer profiles and their requirements as per the expectations.
TASK 1
1.1 Define analyse the nature of hospitality product and service areas.
The main aim of the hospitality industry is to provide effective and efficient services to
the customer after analysing their need and wants. In addition to this, nature of hospitality
product and services can be defined in the following manner as are-
Tangible and intangible elements- In this, it is essential to maintain the effective services
within the hospitality management. The one of the foremost thing is to manage the quality
parameters of the hospitality firm. In addition to this, tangible and intangible services can be
relates to the interior and exterior design of the hotel enterprise and it must be in the well
condition so that it will be helpful in order to attracting the visitors (Randhawa and et.al., 2016).
Perishable- The items as food and beverage cannot be perishable as compare to the other
products of the hospitality industry. Thus, this kind of the products can get spoiled soon.
Room division- The room uses to be allotted the person as per the need and wants of the
customers. It is the responsibility of the hotel manager to provide the better accommodation
services so that it can attract the visitor and be satisfy with the services of the enterprise (Van der
Wagen and Goonetilleke, 2015). In addition to this, there is one generic term that is used by the
hospitality industry to unite the coordinated efforts of the front office.
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Food and beverage- This is also the one of the essential department that help to carry forward the
organisational facilities in the attractive manner. Hence, this kind of the services can be broadly
defined as the preparing, presenting and serving the food and beverage to the customer in the
effective manner.
Conference- This is also the part of the hospitality organisation and it is helpful in terms conduct
the formal meeting of the person (Bowie and et.al., 2016). Thus, the professional meetings and
all other things can be done and it will be helpful in order to develop the working in the better
manner.
Banquet- It is the place that comes with the various kind of the feature as to hold the meeting,
arrange the parties,. It is the area in which there can be possibilities of organising the food store
as per the need and demand of the customers.
1.2 Description on the evaluation of influences of that affects the demand within hospitality
operations.
There are the number of the factor that can affect the demand within the hospitality
industry. Thus, there are influencing factors and it has been defined in the following context as
are-
Time of the day/weak- The hospitality department must be legal with the rules and regulation so
that they are able to conduct the business activities effectively. The demand of the hotel get
enhanced at the time of the weekends because family comes with purpose to spend leisure
moments (Lopes, 2016 ). There are the essential customer groups that links with families and
couple (Chan and Hsu, 2016).
Healthy living- In this, the customer who are very much concerned about the health and prefer
will lead to provide the healthy working life.
Cultural- The culture of the hotel must be attractive in terms to meet the demand of the
customer's. With help of tarting the employee with the honesty and loyalty the brand image of
the hospitality can be enhanced.
Economic factors- There are number of the factors that is national or regional crisis in the
economy or the income for the major types of the customer falls.
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1.3 Explain customer profiles and differ expectation and requirements in terms to hospitality
provisions.
The differ expectation of the customer must be analysing in order to provide the service
in the efficient manner. There are number of factors with help of it, differ expectation and
provisions must be defined in the following manner as are-
Hospitality business- There are main three kind of the business enterprise. Under it, Food and
beverage, accommodation and travel and tourism. In this, hotel Hilton mainly based on the
accommodation of the customers. The customer comes to meet their expectations.
Pricing consideration- There are types of customer of the hotel are families and couple. In order
to this kind customers are for their service than cost consideration (Robinson and et.al ., 2016).
The customers must have effective services in the affordable price. It leads to prepare effective
services so that good things can be conducted effectively.
Meal experience- The standardised of the meal is highly considered. Besides this, there have
different customers who have differed expectations. Thus, sportsman likely to have light foods.
This will help to bring systematic working.
1.4 Define the factors affecting average spending power within enterprise.
The customers are offered with the wide range of services with the differ price levels that
will help to average spending power. There are number of the factors in terms to average
spending power.
 Size of income- The overall income of the customers is relating with the average
spending power of the customers. If the income level is higher then there spending is also
high, if the income is low then there spending level will also be degrade. The factor of the
income plays the crucial role in terms to enhance the brand image of the enterprise as
well it also allows to bring the competitive advantage to the firm by providing greater
services to the customers (Amirudin and et.al., 2017).
 Status- In this, status is also one of the other factors that is also based on the purchasing
level of the customers. The person uses to select the hotel on the basis of their spending
so that they can enjoy the luxury. The level of the person and spending plasy the greater
role in order to purchase the commodities from the market. This will be helpful in terms
to bring systematic working in the enterprise.
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 Social and culture influences- There are number of social culture factors that also works
as to influence the average spending power of the customers. It can be explained with the
example that on the occasion of the festival customers always eager to pend the more.
 Economic situation- Finally, It is the above the customers expectations, this kind of the
situation also impact over the working of the person in the huge context. The economical
factors also impact over the working of the enterprise in the huge context.
2.1 Evaluation on key stages in product and service development applied within a hospitality
operation.
The plan of the hotel should be evaluated in the better and proficient manner so that each
thing can be done in the effective mode. Thus, it is defined in the following manner as are-
Idea evaluation- At this level, the idea of the product development must be tasted. The new
opportunities and other things are needed to be analysed. The effective idea of the product and
services will lead to enhance the satisfaction among the person and it allows to run each thing in
the better manner.
Market research- in the market research the demand of the new products must be know so it is
possible to full fill the expectation of the all customers so that all things can be done in the better
manner ( Hospitality industry, 2016). The research on the products and services are must be done
in the effectively mode so that it can attract the customers.
Market segmentation- The process of market segmentation is very popular. If this wants to
customers then there must be reduction in the cost. This kind of the things will be helpful in
order to develop the things in the better manner.
Advertising and awareness- In this, another essential factor is upholding the special feature of
the products to the services. In the advertising, the focus must be given on the terms as are
market desire, awareness and the creation. The advertising of the product must be taken so that it
helsp to grab the attention of the customer in the market.
2.2 Description on the features that contributes towards the customer perception of product and
services.
The hotel Hilton wants to attract the more customers there must be the position in the
market in respect of brand image, service quality etc so it will help to make better perception of
towards the products and services. In addition to this, strong brand image about the product and
services will help to draw the positive perceptions. The good accommodation will always help to
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attract the customers and this also create the brand image in eyes of the customers. Hence, it can
be said that the some advanced arrangement for the disabled employees can make the popularity
of the hotel very high. If the service for female, male, families and couple can make separate
with the services holders then the customers becomes willing for the hotel. To attract the
customers, standard level food menu with reasonable prices much desirable.
2.3 Access the opportunities and constraints affecting product and service development within
hospital environment.
The term opportunities are those that help to boost up the business activities and it also
effects in enhancement in the sales revenue and profitability of the Hilton. On the other hand,
constraint can be termed out as that works as to impact the business operation and leads to
decrease the sales revenue and profits. Thus. It is defines in the below presents manner as are-
Opportunities- The hotel Hilton is the one of the competitive firm and it compete with its
competitors. It is provides the effective and larger kind of the services to the customers. This
firm is planning to grasp the variety of the customer ranging from the single person, couple and
families to provide support in terms to best facilities of accommodation.
Constraints- The one of the major constraints was limited accommodation facilities and
cannot able to provide the effective services to the customers. In this term, the competitors
provides the extra services that attracts the wide range if customers. In this way, it is not possible
to gain the competitive advantage.
2.4 Description on the evaluation on merchandising opportunity for hospitality product and
service.
The globalisation allows to people to travel much for the business and recreation purpose.
It leads to impact the operational functions of the hospitality industry. In this term, there is
evaluation on the merchandising opportunity of the hospitality product and services can be
defined in the following context as are-
 There are number of the cases in which travellers expect the more and less quality of the
services based on the respective purchasing powers. This type of the organisation will
have the opportunity to create more value with the premium charge.
 The economical conditions of the travellers country can be improved and it is also helpful
in terms to provide the good image to hospitality merchandising advantage.
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TASK 2
3.1 Evaluation of the different methods of pricing and additional pricing consideration within the
hospitality organisations.
There are various kind of pricing methods and it is also depends over the cost plays pricing and
market orientation pricing. In this two methods are discussed in the following context as are-
 Cost oriented pricing- This is the pricing in which cost is depends on the service and it is
also based on the production cost (Lopes, 2016). Under it, percentage of profit is added to
the production cost to determined the selling price.
 Market oriented pricing- This is also the best process of establishing pricing for the
product and services based on existing market conditions. It is one of the effective
agreement between the buyer and seller that is used in equity, bond and commodity
exchange.
 Demand based pricing method- This is process in which price of commodities changes as
per demand in market. It is method that generally uses in hospitality industry. In this, if
the demand get enhanced then the price also enhanced.
 Competition based pricing- In this, price of the commodity gets fluctuate on the basis of
price of competitors in market.
3.2 Description on access of factors that affects the revenue generation and profitability in
hospitality operations.
There are number of the factors that can affect revenue of the hospitality business and so the
profitability of the business cannot get affected. This factors are discussed in the below context
manner as are-
Appraisal of revenue generation and
profitability
Name of the hospitality business- Hotel Hilton
Elements are need to be
considered
Observations
1. Labour intensity 1. Amount if labour used
2. Amount of capital used
In the hospitality sector the use
of the capital is much lesser
then the use of the labour.
In this term, industry can be
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termed out as the labour
intensive.
Shelf life Number of the customers
Value of the brand
Degree of customers
satisfaction
Level of positive initiatives
taken by the management
With the help fo undertaking
the new product develop plan
the entity cab able to sustain in
market for the longer period.
Elasticity of demand Demand of the products
Price of demand
In the Hotel Hilton the price
elasticity of the demand is
inelastic, It can be defined
change in demand of the
customer change in the price
of the commodities.
Hence, it can be stated that there are number of factors that affects the revenue of the
hospitality industry and there are various profitability factor as shelf life, portion control,
standardisation and elasticity of demand affects the hospitality industry. With the help of
focussing over data integration, quality and operational working of sales and marketing affects
the overall operations.
TASK 3
4.1 Description on the range of performance measure and appraisal techniques to individual
aspects of the hospitality operations.
There are differ techniques in terms to understand the pros and cons of the operational
system of the enterprise. These are discussed in the following context as are-
 Quality management- In the process as quality management, there is need to analyse the
overall service of the quality in terms to hospitality products but also essential steps are
needed to be taken in order to bring improvement in it.
 Speed of delivery- The customer should provide the services in the timely manner so this
factor will help to attract them (Amirudin and et.al., 2017). This is very much helpful to
the hospitality industry.
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 Developing qualitative and quantitative data- In terms to measure the overall operations
the performance of the hospitality business can be determined. This will be helpful in
terms to accommodate the each things in the expertise mode.
 Data analysis and evaluation- In this term, this is need to be analysed that differ
qualitative and quantitative will be gathered and its gonna be compare with the expected
performance. In this term the performance of the hotel should be evaluated.
 External comparison- All this above things are the internal comparison to the business.
To make this effective external comparison must be required. The pricing, services
quality all other thing impacts the working of the enterprise in the huge context
(Robinson and et.al ., 2016).
 Sales performance- Under it, the one of the other essential technique is to measure the
sales performance and to enhance the sales profitability. This effect will leads to enhance
the gross and net profit of the hotel Hilton. This kind of the operation will be helpful in
terms to do the services in the effective and efficient manner.
4.2 Determine the usefulness and limitation of various quantitative and qualitative appraisal
techniques and their application to the hospitality operations.
The appraisal techniques are based on the sample data. This will be helpful in terms to
measure the performance. In this the quality of the product and services. There are number of the
things as are quality of the commodities, attitude of the employees and the working quality of the
employees (Wood, 2015). This all are needed to be considered as the quantitative appraisal
method. This all are the factors must be assessed by the differ questionnaire or the interviews
even through the group meetings. This will be helpful factors in terns to conduct the each thing
in the better and efficient manner. This term means that all customer are on the same level and it
helps to conduct the working of the enterprise in the effective and efficient manner. In addition
to it, this can be said that the one main criticize of the qualitative approach is that there is result
coming from the analysis may be applied for the wider number of population. It can be
understood with the help of example as the commodities of the hotel Hilton seem to be delicious
to average customers. The quality of the services and all other factors affects the working of the
operation in the large manner.
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4.3 Description on the approaches to the business evaluation, planning appropriate to the
hospitality operations.
There are number of the approaches to the hospitality business so it may not be considered
for the operations of the hospitality business. There are number of the services as facilities are to
be offered and catering as well as accommodation marketing and also demand the things in terms
to generating the source (Ryan, 2015). To make the services effective it is essential to put the
major consideration over the market of the catering. There are three major categories and it can
be defined in the following manner as are house guest, non-residents and number of the
organised groups. In addition to this, it can be said that there are differed kind of sources to the
demand in the hospitality enterprises. These as are like the institutional, transits, recreational
services etc. All this are having greater source to attract the visitors of the enterprise. This will
leads to enhance and building the better demand of the product and services so that all things can
be done in the effective and better manner.
The hospitality industry is cut-throat and extremely competitive. Thus, hospitality
industry must take initiative in order to utilise and applies the information technologies so that
there can be improvement in the decision making and there can be enhancement in the
satisfaction of guest. Moreover, technical advancement will help in terms to have reduction in
cost and enhance operational efficiency and it is also helpful to improvise services and the
experience of customers. There is also need to put major focus over quality so that operational
function of the enterprise can be done in better mode.
CONCLUSION
From the above report it can be concluded that sustainable tourism is one of the major
element that attract the working of the enterprise in the huge context. This is one of the effective
factor in order to generate long term profitability. In order to this, it can be said that hospitality of
operation management plays the greater role in terms to bring long term sustainability so that
each thing can be conducted in the better and efficient mode. In this report, the following things
are covered as nature of hospitality product and services, evaluation of differ patterns affecting
patterns of demand and analysis of the factors that helps to change the perception of the
customers towards the services of the firm. Lastly, the number of the methods of the pricing
consideration and factor that affects the revenue generation and profitability has highlighted.
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REFERENCES
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Randhawa, P. and et.al., 2016. Hospitality service innovations in private clubs. Cornell
Hospitality Quarterly. 57(1). pp.93-110.
Van der Wagen, L. and Goonetilleke, A., 2015. Hospitality Management, Strategy and
Operations. Pearson Higher Education AU.
Bowie, D. and et.al., 2016. Hospitality marketing. Routledge.
Chan, E.S. and Hsu, C.H., 2016. Environmental management research in
hospitality. International Journal of Contemporary Hospitality Management. 28(5).
pp.886-923.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management. 27(3). pp.340-361.
Wood, R.C. ed., 2015. Hospitality management: A brief introduction. Sage.
Amirudin, N.R. and et.al., 2017. Risk Management Practices in Tourism Industry-A Case Study
of Resort Management. Management & Accounting Review. 16(1).
Robinson, P. and et.al ., 2016. Operations management in the travel industry. CABI.
Lopes, M., 2016. The hospitality industry (Doctoral dissertation).
Online
Hospitality industry. 2016. [Online] Available through: <
https://en.wikipedia.org/wiki/Hospitality_industry>
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