Hospitality Operations Management Report: Rosewood Hotel Case Study

This report delves into the intricacies of hospitality operations management, using Rosewood Hotels as a central case study. It outlines the key stages in product and service development, including idea generation, market research, concept testing, and product launch. The report analyzes the features that influence customer perception, such as brand image, accommodation facilities, service quality, and pricing strategies. It also assesses the opportunities and constraints affecting product and service development, considering factors like market orientation, technology, management, funding, and competition. Furthermore, the report evaluates various merchandising opportunities, including digital, visual, and retail merchandising, and explores different pricing methods, such as cost-based, demand-based, and value pricing. Finally, it assesses the factors impacting revenue generation and profitability, such as market selection, average spending power, and labor intensity, providing a comprehensive overview of the operational aspects critical to success in the hospitality industry.

HOSPITALITY
OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION................................................................................................................................3
2.1 Key stages in product and service development applied within a hospitality operation with an
example of rose wood hotel.............................................................................................................3
2.2 Analysing The Features Which Contribute Towards The Customers' Perception Of Product
And Services....................................................................................................................................4
2.3 Assess The Opportunities And Constraints Affecting Product And Service Development
Within A Hospitality Environment Regarding Rosewood Hotels...................................................4
2.4 Evaluate Different Merchandising Opportunities For Rosewood Hotel Products And
Services............................................................................................................................................5
3.1 Evaluate Different Methods Of Pricing Taking Into Account Additional Pricing
Considerations.................................................................................................................................5
CONCLUSION....................................................................................................................................6
REFERENCES.....................................................................................................................................7

INTRODUCTION
Hospitality operation management is a program which provide skills to work in a hotel or to
run a hotel with wide range of are within in that industry such as housekeeping operations or food
and beverages management etc (Lashley, 2018). This report highlights key stages in product and
service development applier within a hospitality operation with reference to Rosewood hotels
example, analysed features which contributes towards customers' perception of product and
services, opportunities and constraints affecting product development, different merchandising
opportunities, different methods of taking pricing into account and factors which will affect the
revenue generation and profitability in hospitality.
2.1 Key stages in product and service development applied within a hospitality operation with an
example of rose wood hotel
Idea Generation and market research: For any development of a product we need an idea
to start with. Then it will go through a series of process which will ensure the success of it. For
example, first we can do SWOT analysis to analyse Rosewood Hotel's current position and weather
its in line with their business strategy. For correct idea generation Rosewood hotels should do a
market research on its competitors success and failure.
Idea Screening: It is important to ensure that weather the chosen idea is suitable or
unsuitable and if it is unsuitable then it should be rejected for the success of any product or service.
Concept development and testing:If Rosewood hotels have an idea then it is needed to test
that thought. Rosewood hotels can ask their customers also. Using a group of their true customers, it
can be tested and their reaction can be recorded. After passing through all these trails, it should be a
concept now with enough in-depth knowledge. (Llach and et.al., 2016).
Business Analysis for service: This is done in case of services to ensure weather it will be a
success which will be used by the customers or a failure i.e. how much it will be liked and used
frequently by the customer.
Product development: If Rosewood hotels have a new product or service then it need to
pass market and technical development stage.
Market testing and launch: Market testing is required to validate full concept. And after all
these stages'
product or service is launched.

2.2 Analysing The Features Which Contribute Towards The Customers' Perception Of Product And
Services.
In a hotel business customers' perception is really important, it determines that how a
customer can link with the product. There are many factors that affect customers' perception such
as:
Brand Image: First and the foremost factor is brand image or reputation. If Rosewood
hotels reputation and image is good then they need to it will affect customers' perception. Product's
brand, reputation or whole chain of hotels have a contribution towards customers' perception
(Factors affecting revenue generation, 2013).
Accommodation facilities: It is also a very important feature of Rosewood hotels that
contribute to customers' perception. If facilities provide by the hotel a good or excellent for
accommodation then it will affect customers' perception.
Service quality and restaurant access: Service quality of Rosewood hotels should be good,
effective and fast. If service quality is good then it can overshadow all the other negative things.
Then access to restaurant should be available and open to all customers, Quality of food should be
good, service for food should be fast.
Price: Price is also an important factor which affect customers' perception. Price of
Rosewood hotel's service product or its accommodation should be according to the quality of food,
quality of room, service quality, its brand image or reputation and also decided after comparing
competitors price. All these factor affect customers' perception.
2.3 Assess The Opportunities And Constraints Affecting Product And Service Development Within
A Hospitality Environment Regarding Rosewood Hotels.
Opportunities affecting product and service development within Rosewood hotels are:
Market orientation: Rosewood hotels need to focus on meeting and discovering customers
need and desires like what are there expectation regarding food, accommodation, service etc.
Technology: Technology used in creating the product also affect product and service
development. Rosewood hotels should accept the rapid changes in the technologies for development
of a product (Ryan, 2015).
Top management: Management of Rosewood hotel should be excellent as it will affect the
development of its product and services, weather its related to accommodation or restaurant service
etc.
There are many constraints which affect product or service development such as: shortage of

funds, changes in food or drinks, getting approvals or license by the government, not updated with
change in market or technology, not able to complete customers need and desire, negative publicity
of rosewood hotels can affect its business, hospitality environment also affect the business of a
hotel, location of Rosewood hotels also affect product or service development in Rosewood
hotels,price changes in accommodation or restaurant food or services or government tax system
which affect the price has a great effect on customers' preference and development of product and
service etc.
2.4 Evaluate Different Merchandising Opportunities For Rosewood Hotel Products And Services
Merchandising is basically a process or practice of selling or displaying products of a
business to customers. Nowadays merchandising concept is developing in a great extent specially
for hotel business (Llach and et.al., 2016). There are various different merchandising opportunities
for rosewood hotel such as:
Digital merchandising: It is basically promoting our business online. In this Rosewood
hotels can promote their hotel on all social networking sites or they can start online booking for
their hotel or they can provide online vouchers or discount for their hotel room or food they
provide.
Visual merchandising: Through visual merchandising Rosewood hotels can display
pictures, videos of the product and services they are providing online or on their hotel sites for
customers. They should target right things at right place with right message (Chan and Hsu, 2016).
Because according to a survey content sensitive customer spend more than content insensitive
customers.
Retail merchandising: Rosewood hotels can promote their hotels through flyers, vouchers,
advertisement or through social media. It will help them to gain more customers as more and more
people will come to know about their hotel, services it provides or quality of food, rooms and
facilities they provide to the customers.
3.1 Evaluate Different Methods Of Pricing Taking Into Account Additional Pricing Considerations
There are different methods of pricing such as:
Cost-based pricing: Cost based pricing is a method in which small amount of desired profit
is added in the final price. In other words it can be said that cost based pricing is in which
production cost and product cost are added to finalize its selling price. This pricing technique is

sometimes beneficial as it needs the least information, calculation is simple.
Demand based pricing: It is a type of pricing technique in which product cost is finalized
based on demand of the product. It completely depends upon the demand of the product. If product
demand is high then high price is set of the product and if demand of the product is less than lower
price of the product is set to attract the customers.
Competition based pricing: It is a method in which competitors price is considered to set
its own product price. Hotels may set higher, lower or equal price as compared to competitors
according to the demand of the product.
Value pricing: In this hotel businesses try to set lower cost by giving high quality to achieve
customers loyalty i.e. organization tries to become low cost producers of that product without
compromising its quality.
Other pricing methods: Sometimes other pricing factors are to be considered such as
service charges, maintainability charges or according to the tax or the service or values is to be
offered to the customers.
3.2 Assess The Factors Which Affect Revenue Generation And Profitability In Hospitality
Operations
Factors affecting revenue generation and profitability are:
Choosing market: Most important factor to be considered is to choose where the hotel is
based or the market where it will do its business. For example if the market in which the hotel is
based consist of many top hotels then in those condition revenue of the hotel will be affected
(Evans, 2015).
Average spending power: If the amount spend on the maintenance and buying is more than
it will affect the revenue generation of the product.
Labour or workers intensity: If the amount spend on the labour or workers working in a
hotel is much more than it will affect the revenue and profitability of the hotel (Chan and Hsu,
2016).
CONCLUSION
From the above report few things has been summarised like demand based pricing methods

had been taken into account, main factor which would affect the revenue generation and
profitability in hospitality is choosing market, digital merchandising would be used to evaluate
merchandising opportunities for Rosewood hotels and also different key stages in product and
service development applier within a hospitality operation with reference to Rosewood hotels
example had been explained above.

REFERENCES
Books and Journals
Lashley, C., 2018. Education for Hospitality Management. In Innovation in Hospitality
Education (pp. 33-48). Springer.Cham.
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.
Llach, J. and et.al., 2016. Effects of quality management on hospitality performance in different
contexts. Industrial Management & Data Systems. 116(5).pp.1005-1023.
Van der Wagen, L. and Goonetilleke, A., 2015. Hospitality Management, Strategy and Operations.
Pearson Higher Education AU.
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.
Online
Factors affecting revenue generation. 2013. [ONLINE] Available through:
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