Hospitality Operations Management Report Analysis - Rosewood London

This report provides a comprehensive analysis of hospitality operations management, focusing on the case study of Rosewood London. It begins by defining the nature of services in the hospitality industry, emphasizing inseparability, intangibility, and perishability. The report examines factors influencing demand patterns, such as seasonality and economic conditions, and compares customer profiles based on spending power and expectations. It details key stages in product and service development, including idea generation, screening, and commercialization. The report also explores customer perception, merchandising opportunities, pricing methods, revenue generation, and performance measures. The conclusion synthesizes the findings, highlighting the importance of effective operational management in the hospitality sector, with specific reference to the practices and strategies employed by Rosewood London. The report also contains references to support the information provided.

Hospitality Operations
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
AC1.1 The nature of product and services..................................................................................1
AC1.2 Different influences affecting pattern of demand............................................................1
AC1.3 Comparison of customer profiles and their expectation and requirement.......................2
AC1.4 Factor affecting average spending power........................................................................3
AC2.1 The key stage of product and development ....................................................................4
AC2.2 Features that contributes towards the customer perception.............................................5
AC2.3 Different merchandising opportunities. ..........................................................................5
TASK2.............................................................................................................................................6
AC3.1 Different methods of pricing...........................................................................................6
AC3.2 Factors that affect the revenue generation and profitability of hotel...............................6
TASK3.............................................................................................................................................7
AC4.1 Range of performance measures and appraisal techniques to individual aspects of
Hotel............................................................................................................................................7
AC4.2 usefulness and Limitations of different appraisal techniques..........................................8
AC4.3 Approaches or business analysis.....................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality can be define as services industry that includes hotels, restaurants, event
planning, tourism related business and travel providers. Operation management in the hospitality
industry is the administration of business practice that will create the better working of operation
within an organisation. In context, Rosewood London one of the most popular hotel in London
i.e. chosen to understand the importance of management in hospitality (Boella and Goss-Turner,
2013).
In this project report, various activities are analyse to understand the nature of services
area. Different customer profile and their expectation is compared and various factor affecting
average spending power is analyse. Analyses of key features that contribute toward the customer
perception of product and service. Report also shows the Individual research is being done for
the purpose of benchmarking and different question are being asked for the relevant criteria.
TASK 1
AC1.1 The nature of product and services
For growth, every hotel wants to provide better product and services so that more number
of customer are attracted toward particular hotel. The nature of services are inseparability,
intangibility and perish-ability. Hotel has various services area that are developed for the
fulfilment of customer and making them comfortable so that they might visit again. The different
services areas are luxury room, food and beverage, conference and banqueting hall etc. Room
division department make sure that every room must be clean and hygiene and room service will
be provided on time to time so that customer feel comfortable. Conference hall are used by
professional so that they might conduct office meeting or seminar related to their work.
Rosewood London is famous for their delicious food and unique food product that are offered to
visitor. So this is this is the duty of food and beverage department to ensure that quality and
quantity of food must be good otherwise their name of hotel would go down in the market.
AC1.2 Different influences affecting pattern of demand
There are different factors that might effect the pattern of demand of Hospitality
organisation so as Rosewood London such as price fluctuation of room due to seasonality, check
in and check out timing, sociological influence, regional and cultural patterns, food offered and
fashion trends, elasticity of demand and other economic factors. In general, the law of demand is

defines as the quantity demanded move to opposite direction in relation of price and there may
be a downward slope of demand curve. Economical factor have a major impact on the hotel
industry globally and locally especially in UK. It is observed that sudden fluctuation within the
economic factor can affect the level of demand in Rosewood London Hotel. For example, during
the time of recession demand of visitor fell because they are forced to cut down on extra cost that
they were willing to spend to visit hotel (Brown and Bessant, 2013). Similarly, seasonality has
also one of the major factor influencing pattern of demand to the hotels of London. Such as it is
identified by operation manager that there are two peak season, one between June to September
and the other is December because in other part of year there is extreme cold in UK and visitor
rarely visit to the nation.
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AC1.3 Comparison of customer profiles and their expectation and requirement.
Hotel are for everyone but market/customer are classified in the various customer groups
depending upon different set of expectation from product and services which they wants to use in
hotel. It can be said that customer satisfaction shows the expectation and experiences that the
visitor has with a product or services offered by Hotel. Rosewood London is one of the famous 5
star hotel in London that is popular among different customer group. Here is categorised some of
the customer that are segregated on the grounds of their expectations and profile :
Customer profile Spending power Expectation and
requirement
Menu/
accommodation
range.
Upper class. These are individual
especially big business
man, professional actor
and artist, film star etc. that
wants to live luxurious life
and spends money to fulfil
their need and feel
comfort.
The Expectation and
requirement of these
group are so high such
as fully furnished
room with Hi speed
internet, plasma TV,
good quality food etc.
as they have already
paid huge amount for
better services. Their
expectation is to get
best room services,
housekeeping and tasty
food so they might
visit again in future.
Menu range is the list
of food item that is
being offered by
Rosewood London to
its customer. Hotel has
something for
everyone like visitor
for any part of world
may visit and enjoy
delicious food. Menu
range has variety of
food for these upper
class customer like,
Chinese, Italian,
Indian etc.
Middle class. Usually, middle class
family and small
businessman visit to hotel
and spend less amount to
get satisfactory services
Requirement depends
upon willingness to
speed amount as these
group found happing
in small satisfaction
On the other side,
middle class customer
already make a
presumption to eat
only limited item that
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(Evans, 2015). and their exception are
also not so high but
must be satisfactory.
Such as people wants
free Wi-Fi services in
their room or
complementary food
items that satisfy them.
are offered in menu
range.
AC1.4 Factor affecting average spending power.
Average spending power is the value of goods and services that can be bought by
customer offered within hotel with a specific amount of currency. It is the relative measure that
is most applicable when evaluating for change over time. In hotel average spending power of
customer is totally depended upon the level of income they generate during a year, size of
business, status in the economy, economic situation etc. for example if there is inflation in
economical factor so prices rise throughout all hotel in UK, as a result the spending power of
customer is reduce and their current income level would be lower. But in case of deflation the
price drop throughout an economy, so the spending power will theoretically increase and
customer will more likely to visit hotel. Similarly it was identified that people in London with
large size of income would spend more amount to get satisfaction services offered by Rosewood
London. It was also observed that there are certain factor that affect the financial investments and
costing decision by considering the level of operation and standard of the services that are being
offered to the visitor by Hotel. They status of customer influence the spending power of the such
has higher status person.
AC2.1 The key stage of product and development
It is noticed that hospitality operation have been changed in many ways spending upon
different factors such as, customer taste and preferences, introduction of new technology and
various other developed product and services to cater consumer demands (Hoque, 2013). In
Hotel industry the main objective of them is to satisfy their customer need by providing best
services to their visitor so that they might visit again in future. Likewise, Rosewood London an
assistant manager has developed different steps for the development of new services for
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conception to market, the process set out a series of level that new service go through, beginning
with identification of idea and concepts generation etc. that is described below:
Idea generation: This stage is related to brainstorming and coming with new innovative
ideas and determining the unique characteristics that will make hotel stand out in the hospitality
industry.
Idea screening: It is basically the first step in which marketer first research market and
ascertain whether idea will appeal to the targeted audience. It help manager to asses them against
an objective set of criteria. For example in Rosewood, firstly the need of market and visitors are
identified.
Concept development and testing: This phase is related to start making a product or
producing and offering services. Whereas as testing services the testing refer to the checking the
accuracy and satisfaction level of service by offering it to a targeted audience and then targeted
group in being analysed to check services are good or not.
Business analysis: It is related to developing various manner to improve and enhance
product and services that are offered to targeted audience so that proper pricing strategy are
develop for services and they manager must build proper business marketing strategy depending
upon the feedback from test group.
Commercialisation: It is relate to setting a proper price of new services that are being
introduced by hotel and that depends on that impact of that service on whole portfolio, the
competition available in the market, the various selling channels used to for promotion of service
etc.
Launch: A detailed launch program help to ensure smooth introduction of service in
market. For example, assistant manager focus on making a effective plan for launching new
service in market that is recently introduced by Rosewood (Köseoglu, Sehitoglu and Craft,
2015).
AC2.2 Features that contributes towards the customer perception.
In common, customer perception ascertain the how much value of product and services
that are associate with customer. Although a customer perception about product and services is
based on the actual experience with those good. In rosewood, it was ascertained that detected
customer value is a marketing and branding related concepts that points out the success of a
product or services is largely based on whether visitor believe id can satisfy their wants and
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needs. It is defined that when an hotel develops its brand name and market for its product, it will
help visitor to figure out how to interpret and react to marketing messages. There are different
features that contribute towards customer perception for goods and services in Rosewood
London such as, brand image that is usually the first impression which would be best in order to
attract more customer , style of service that is related to the uniqueness manner of providing
services to customer.
AC2.3 Different merchandising opportunities.
In recent time the concepts of merchandising has been developed to a great extent
especially in the hotel industry. Merchandising is defined as the promotion done by company to
sell their product and services to potential customer It is observed by the assistant manager that
now days most of the booking maid by customer are mainly through online mode or customer
would like to buy a discount voucher for a meal at Rosewood from Voucher.com. In Hotel there
are different type of merchandising that are being used by manager to introduce their product to
different customer (What is Merchandising, 2017). Such as product, visual, digital and omni
channel merchandising.
Product and service merchandising: It is related to the various promotional activities
done by management to sell their service to customer, whether message of promotion is being
send online or provided at hotel reception. For example the Rosewood is introducing a new room
in their hotel with various new services so they would display a message to their visiting
customer as well as a message online.
Visual merchandising: It is related to the techniques that is used to display the
appearance and benefits of the product and services being offered by Hotel. It includes various
elements of spacing, lighting and design and simple message that are applied by Hotel in online
merchandising as well as message on mobile etc.
Digital merchandising: It involves all promotional activities that are used to describe the
digital services offered by Rosewood Hotel. It also involves everything from site performance
and digital display message for services or and sending email initiatives.
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TASK2
AC3.1 Different methods of pricing.
A) Pricing is essential decision for hotel success because it ascertain, weather or not the
intended visitor will purchases their services and they will be satisfied with the values of services
offered and the wiling to return (Mok, BPirani and Arafat, 2014). There are different method of
pricing that are being implemented in Hotel that are cost-oriented, market oriented pricing and
other additional pricing consideration like services charge, cover and minimum charge. As an
assistant operation manager of Rosewood London Hotel it was observed that there is market
oriented pricing. A market based pricing strategy is commonly know as a competition based
strategy. It is basically build according to the features, price, advertising and other elements of
marking around the set of consumer that are as the target market. According to this strategies, the
hotel will evaluate the prices of their services similar to services that are being offered by other
hotel in market but it remain mainly to the product that are similar to the product offered by other
one. It is also observed that if the services are more goods and have unique features that the
competition, than hotel may set price higher than the competition pricing and vice versa. For
example, if Rosewood provide an additional feature in their room such as a private hall meeting
that is not offered by any other Hotel in UK. Because of their unique feature hotel could decide
to price for their room that will attract more customer.
AC3.2 Factors that affect the revenue generation and profitability of hotel.
It is noticed that revenue manager always tries to generate revenue in hotel by setting
new strategies and tactics that will benefited for company. But there are number of factor that
effect the profitability and revenue generation in hotel such has, labour intensity, elasticity of
demand, price and procurement etc. that is described below:
Labour intensive: It refers to the industry where larger portion of cost is due to a labour
as compared to other part of business like purchase, maintenance and capital equipment. For
example, in Rosewood London to provide better services there are large number of staff so most
of the profit is distributed to employee as their salary.
Elasticity of demand: It is defined, how sensitive the demand for a good an services
changes in other economy variable, such as price and customer income. It is basically calculated
the percent change in quantity demanded to percent change in another economic variable.
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Price and procurement: Price is termed as a value that will purchase a finite quality,
weight and other measure of good and services. In hotel, customer pay prices for the services
they used for their comfort. Procurement is defined the act of buying good and services mainly
for business purpose (Sisson and Adams, 2013).
Shelf Life: This is a period during which a good and service remain effective and free
from any type of deterioration, impairment therefore it is ready to sale. For example, Hotel
provide different services that are benefited to customer and make them feel comfortable.
Portion control: It is defined as the art of con trolling the size and quantity of food that
is to be served to each of the customer visiting hotel. For example, in Rosewood London it is
responsibility of food and beverage department to check that right quantity of food is being
provided to their customer.
TASK3
AC4.1 Range of performance measures and appraisal techniques to individual aspects of Hotel.
Performance management in an internal part of the workplace as it helps the supervisor
and managers to measure and compare performance of employee and and ascertain that
weather employee are working with full efficiency of not (Tsiotsou and Goldsmith, 2012).
There are different techniques of performance measure and appraisal such as, quality
management, speed of delivery, data analysis and evaluation, external comparison and sales
performance, net profit etc. some of these are described below:
Quality management: it is related to the act of overseeing all activities and operation
that are required by Hotel to maintain a desired level of excellence and better services to
visitors. In Rosewood London, manager prepare quality policy, planning so that there is quality
control and if required improvements can be made.
Data analysis and evaluation: It is basically related to the process of evaluating data
by using analytical and logical reasoning that is further used to examine every component of
the data gathered from various operation of hotel. For example, manager conduct research to
various department of Rosewood London so data can be collected and proper evaluation can be
done to improve the performance.
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AC4.2 usefulness and Limitations of different appraisal techniques.
In is observed by the manager that every performance techniques and appraisal
techniques have various advantage and disadvantages that are described below:
Quality management:
Advantages- It helps in sharpens of the competitive edge of the hotel that result in excellent
customer satisfaction and improvement of performance of worker employed in Rosewood
hotel.
Disadvantages- Many time because of lack of attention there are problem of labour
management relation. The main disadvantages of QM is the it is not easy to improve the
quality at all level as Hotel have wide number of operations (Yang, 2012).
Data analysis and evaluation:
Advantages- It help in displaying advertisement on the online website of Hotel based on
historic data and visitor behaviour on the different services. As a result is help to increase the
revenue and productivity of companies.
Disadvantages- The main disadvantages is to select the right data analytic tool as it require
expertise to analyse the relevant data as per records. This requires lot of time and cost of Hotel.
AC4.3 Approaches or business analysis.
Business analysis is the practice of making modification in an organisational context
with the help of defined demands and recommending solution that deliver valuer to customers.
The business analysis Approaches are the plans that are made by senior or lead manager of
company to analyse the different activities that will be executed.
CONCLUSION
From the above report, it has been concluded that hospitality is act of kindness that is
related to welcoming and looking after the guest to satisfy their needs and requirements, mainly
in relation to food, drink and accommodation. Nature of product and services areas and different
factor affecting patter of demand are discussed such as seasonality, cultural etc. Various method
of pricing that are taken into consideration for Hotel such as market oriented pricing and cost-
oriented pricing. There are different factors that affect the revenue generation and profitability in
hotel such as labour intensity, elasticity of demand, portion control etc.
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REFERENCES
Books and Journals:
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
Brown, S. and Bessant, J., 2013. Strategic operations management. Routledge.
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.
Hoque, K., 2013.Human resource management in the hotel industry: Strategy, innovation and
performance. Routledge.
Köseoglu, M. A., Sehitoglu, Y. and Craft, J., 2015. Academic foundations of hospitality
management research with an emerging country focus: A citation and co-citation
analysis. International Journal of Hospitality Management. 45. pp.130-144.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Pirani, S. I. and Arafat, H. A., 2014. Solid waste management in the hospitality industry: A
review. Journal of environmental management. 146. pp.320-336.
Sisson, L. G. and Adams, A. R., 2013. Essential hospitality management competencies: The
importance of soft skills. Journal of Hospitality & Tourism Education. 25(3). pp.131-
145.
Tsiotsou, R. H. and Goldsmith, R. E., 2012. Strategic marketing in tourism services. Emerald
Group Publishing.
Yang, J. T., 2012. Identifying the attributes of blue ocean strategies in hospitality. International
Journal of Contemporary Hospitality Management. 24(5). pp.701-720.
Online
What is Merchandising. 2017. [Online] Available through:
<https://www.dictionary.com/browse/merchandising>.
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