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    Hospitality Operation and Management in Hilton Hotel

    Question :

    This respective assignment is based on three parts in which following questions are being asked which are given below:

    • Write the report about the understanding of nature of hospitality operations in the organisation.
    • Answer the following questionnaire to show the understanding of the relevant assessment criteria.
    • Conduct the individual research in any relevant organisation for benchmarking purposes.
    Answer :


    Hospitality management is that study of developing relationship between guest and manager the hospitality industry has different parts in the service industry that includes lodging, restaurant, event planning and other sector in this industry. The report is based on Hilton hotel which is global brand of full services provider hotels and resorts to the guests (Alexakis, 2011). The main purpose of this assignment is to analyse the nature of hospitality products and services. There are various types of customer profile and their expectation which are analysed as per their average spending services in the hospitality sector. Along with this, there are different opportunities for hospitality products and services that are evaluated in this report.

    TASK 1

    1.1 Analyse the nature of hospitality product and service areas

    In hotel business, the products and goods can be food and beverages. All such products are very much perishable in nature. Thus, it is based on different criteria, the nature of Hilton hotel's hospitality products ad service areas are described as under:

    Perishable – The perishable refers to that services which can not be stored sale in the future. In Hilton hotel, they are serve various food items to their customers that can be stored for future selling.

    Intangibility – It is refers as that services which can not be touched or seen. They are used for evaluated or measured by customer satisfaction. As Hilton hotel provide the spa services or facilities to their customers that is intangible in nature.

    Inseparability – These are such services which can not be separated from an individual who is providing it. The goods and services produced in the hotel have to be consume at hotel only as one can not take such facilities at home for later consumption (Bartram and Dowling, 2013).

    The Hilton Hotel provides different services or facilities to their customers which are described as under:

    Room divisions – The rooms are prominent part of hotel. As the department of rooms should be according to their customer requirements. In Hilton hotel, the room division are fully based on occupancy such as single and double occupancy, couple friendly room, sea side room, balcony view rooms are exist for the customers.

    Food and beverage – These are essential part of hotel which develop the reputation. Hilton hotel has provide best quality based food items and also serve such things to their guest. Along with this, the hotel offer timely food to their guests living in the hotel. Such type of quality facilities are develop in the hotel a brand (Bharwani and Butt, 2012).

    Conferences and Banqueting – It is created for the corporate meetings and banquet area is for family function. Hilton hotel has huge space for conference hall and banquet area for their customers. This area provide customers to arrange big feast such as lunch and dinner.

    1.2 Evaluate the different influences affecting patterns of demand within hospitality operations

    Hotel business does not same type of demand in all over the years and even all days in the week. There are various factors through which demand of customers varies. Along with this, there are four major influential factors which are described as under:

    Seasonality – It is one of the major factor which directly impact on industries in given time period. In given time period, the demand of specific industry products and services are on peak level. The hospitality operation are highly affected by seasons. At the time of Christmas and new year, demand of Hilton hotel enhancing due to ample number of visitors.

    Time of Day/week – The specific time of day/week affects the demand of Hilton hotel goods and services. At the time of weekend, demand will goes towards increase of Hilton hotel as people comes for get together and enjoy the weekends.

    Healthy living – This is quote “Health is Wealth” people are very health conscious. As demand of hotel goods are going to increase so this will directly affected by their healthy environment that is provided by hotel. Health;y living includes fresh air and water, clean and neat areas for living and healthy food. Hilton hotel demand is also affects such elements (Causin and Ayoun, 2011).

    Cultural – It is the set value and ideologies of specific community. Culture is divided into location, age and social status and so more. The demand of hotel can directly affected by such elements. If hotel is located at prime location then demand will be automatically enhanced in positive manner.

    Regional – The temperature is the major regional factor which can vary of demand pattern of customers for the specific type of hotel. For instance, if Hilton hotel is based on the region where temperature is not stable so the demand of hotel business are automatically decreases.

    Ethnic influences – It is basically an inherited status which is based on society and community in which person lives. It can enhancing the demand of specific hotel if they are providing quality based food items that are associated with their ethnicity.

    Economic factor – These are such factors which are related to growth of an economy of nation. When customers are spending more power, then they will spent more on luxurious and it will enchaining the demand for luxury hotel such as Hilton hotel (Crawford, 2013).

    1.3 Compare customer profiles and their differing expectations and requirements in respect of hospitality provision

    Basis for comparison

    Upper class

    Middle class

    Spending power

    It is determined as rich class area of society and community. As the upper class includes sportsperson, celebrity and business tycoon who has highest spending power in the society. They are determined as the hotel which provide five star facility to their customers. They have spending power and as per this they are selecting hotel to stay.

    Middle class is basically normal individual of society with average spending power. This area of community usually concentrate on saving rather than spending on luxury. They are expect quality goods services at reasonable rate. They can choose hotel as per their requirement and need rather than focus on luxury services.

    Meal experience

    The upper class people require best meal experience so they always want quality based food items (Ferdinand and Kitchin, 2012). They spend more money on their diet and healthy products.

    The middle class mainly concentrate on good quality of food items that will satisfying their hunger. They does not spend more capital on food products because they are focus on satisfying their hunger.

    Expectation and Requirement

    This segment of customers expect the luxury facilities and services such as personal parking service, personal refrigerator and so more from the hotels and also they can spend capital as per the experience (Kimes, 2011).

    In this segment, they are consuming best quality based services and facilities at affordable rate. They have spending average spending so that they are unable to meet with their expectations. There are such requirement which should be satisfied all needs and demand such as good food and clean room.

    Price Consideration

    It is the segment which does not determine and consider price while choose hotel because they have enough power to spending money. They are selecting luxury hotel such as Hilton hotel that will satisfying all guests needs and requirements.

    The middle class segment considered as price sensitive. They are select hotel which offer reasonable price to their customers along with better services.

    1.4 Analyse factors affecting average spending power (ASP) in hospitality businesses

    In the context of Hilton hotel, the customers are offer wide range of services with different level of price level that carry out regarding average spending power (ASP). The average spending power (ASP) reveals the customers whole expected demand and need in better manner. There are various factors which vary average spending power that are described as under:

    Income size – The income is considered as earning of a person. It is the common that individual spending is highly affected by their income (Lashley, 2012). If size of income is less then individual will select average spending hotel where they require to pay affordable money. If an individual earning is more so they will choose hotel such as Hilton hotel.

    Status – The status is image of the society that directly affects on average spending of customers. As status is developed out of money, if a person have enough money so they are determined as high status and vice versa. This will help in maintain that status which spend more capital.

    Economic situations – Lastly, economic situations of nation has directly affects on average spending power of customers (Sigala, 2013). If interest rate is low then customers will spend more money for buying goods and if they will have more capital so they are spending more in different products. Hilton hotel contribute their capital in increasing economic condition in better manner.

    2.1 Evaluate the key stages in product and service development applied within a hospitality operation

    There are various key stages in product and service development applied in the hospitality industry that are described as under:

    Idea generation – The new product development procedure begin with idea generation. It is the systematic search for new goods and services ideas and thoughts. It can be established that internal and external factors. In this, internal means research and development while contributing with employees. On the other hand, external refers to the customers and competitors. Hilton hotel has generating ideas of suit room from their guest feedbacks and response.

    Idea screening – This is the next step in this procedure. In this screening refers to filtering different ideas. The firm select such ideas that can be turn into getting high income and profitability for the business.

    Concept of development and testing – This concept is developed by Hotel Hilton which is super room services that includes different services or facilities such as high class interior, personal swimming pool and personal refrigerator. It is that concept which required to be tested with groups of target customers and also ask them questions regarding specific services (Sunder, 2013).

    Business analysis – This is the process which includes review of sales, cost and value of projections for developing new services and goods. In this, if they are meet with set organisational objectives then it will move towards further stage of development in proper manner.

    Product/Service development – This is that stage where products are developed and manufactured effectively. The research and development will formulate and test the physical version of production concept.

    Test marketing – Lastly, this is the stage where products are commercialised. In this stage, the proposed marketing programme are tested in realistic market place for attracting large number of customers (Tsang, 2011).

    Launch – The test marketing has provide management information which make final decisions regarding introduction of new products or services. Before launching, hotel should focus on their launch timing. For example, economy is decreases then it provide better to wait for some time and than launch.

    2.2 Analyse the features which contribute towards the customers’ perception of products and services

    There are certain factors that directly influences customer perception towards products and services which are described as follows:

    Brand image – It is one of the most considerable factor for customers that will develop perception regarding specific goods and services of Hilton hotel. Along with this, Hilton hotel have good brand image then customers point of view would be positive in nature.

    Availability of Resources – The main asset or resources for hotel is availability of required rooms in the hotel. If customers is not able to get room so this will change the customer perceptions towards hotel. It is very essential to have enough resources for reaching with requirement and needs of guests.

    Style of service – The customers want complete services and facilities of price paid by them. It is very essential to understand that what type of services and style providing to their customers. In hotel, there are variety of food which are offered so basically mos of the hotel are use buffet style services for guests in the context of catering facilities (Vlachos and Bogdanovic, 2013).

    Standardisation – It is the main strategy which allow Hilton hotel in giving high quality based services in different locations. The main aim of standardisation is to transform the old values and advantages into new excellence of services.

    Space utilisation – The space is the area or location in which hotel manager are operating their business operations and functions. It is essential for hotel such as Hilton hotel which provide proper utilisation of space. Due to this, if hotel is not using its space in proper manner so this will change the perception of customers.

    2.3 Assess the opportunities and constraints affecting product and/or service development within a hospitality environment




    Brand Image

    Hilton hotel provides services of super room to their customers in effective way so this will create good brand image of the hotel.

    In this, the constraint is if Hilton hotel is manage and maintain their services so they have to bear cost by losing brand image in the market place.

    Accommodation facility

    This is the main opportunities for hotel is to offer best services of accommodation to their customers.

    If firm is not offer enough accommodation to their customers so this will might lose their customers.

    2.4: Evaluate different merchandising opportunities for hospitality products and services

    Merchandising is the procedure of advertisement of products and services which are available for sale. There are various types of merchandising opportunities for hotel that are described as under:

    Visual merchandising – This is the display method that can be used for addressing the benefit of specific goods and services which are being sold. As Hilton hotel can display the TV at reception which show regarding hotel goods (Vlachos and Bogdanovic, 2013).

    Digital merchandising – This is refer as e-commerce or online merchandising which includes everything from site performance and digital goods display to digital marketing and email marketing initiatives.

    TASK 2

    3.1 Evaluate different methods of pricing taking into account additional pricing considerations

    Pricing is the procedure of organization which help in setting up the business goods and services in better manner. There are different pricing method which can be used by Hilton hotel that are described as under:

    Cost oriented pricing – In this, the manufacturer calculate the cost of production and add certain amount of income in selling prices. The profit percentage is calculated on total cost that is fixed and variable cost. For instance, the super room cost is 400 GBP and markup is around 20% on cost. Then selling price will be - 400+400*.20 = 300 GBP.

    Market Oriented pricing – In this method or technique, the benchmark for setting price is price set by organization. If competitors alter the prices then as per this company can make proper change in price (Vlachos and Bogdanovic, 2013).

    Service Charge – The service charge is prices which changed by organization for their services or facilities. Hilton hotel charge high price for their services due to this they are offering quality based goods to their customers. At the time of selecting prices for their services hotel should consider the service quality.

    3.2: Assess the factors which affect revenue generation and profitability in hospitality operations

    The profitability is earning within any organization and there are various factors that directly affect on profitability of business operations are described as under:

    Elasticity of demand – The elasticity of demand define as the demand for goods which is change in other economic variable that includes price and income of customers. This is directly affects on profitability as if the demand of hotel is increasing and vice versa.

    Procurement – It is determined as storing and monitoring products for the future purpose. This can enhancing the warehousing cost and value for an organization and also increasing cost which can lead towards lower income.

    TASK 3

    4.1 Apply a range of performance measures and appraisal techniques to individual aspects of hospitality operations

    This is the procedure which measure the individual performance and overall organization terms of productivity in regards of setting goals and objectives. There are various methods and techniques that can be used by Hilton hotel are described as under:

    Quality management – It is important element which measure the performance in hospitality operations and functions, this includes quality of services that are offer by hotel to their guest in better manner.

    Data analysis and evaluation – It is the method which is used by Hilton hotel for examining overall performance. For taking data of financial statement into consideration, the evaluation has been done.

    4.2 Determine the usefulness and limitations of the various quantitative and qualitative appraisal techniques

    Qualitative – It is the method which is related to performance appraisal technique that includes qualitative information such as customer satisfaction, attitude and behaviour of customers towards hotel services (Vlachos and Bogdanovic, 2013).

    Quantitative – The quantitative method provide data and information regarding sales performance of the company.





    It is demonstrated as real experience of customers because this is mainly focus on narrative from respondents.

    They are not able to provide accurate statistical data analysis.


    This will show the correct data and information from financial statement about performance of hotel.

    This does not capable to capture the real time experience of customers.

    4.3 Apply approaches to business analysis, evaluation and planning appropriate to hospitality operations, making proposals for action

    Business planning – The planning is evidence which entails the strategy of business owners to smoothly run of business operations. It provide road-map in which owner need to take over the business. Hilton hotel has the plan of super room facilities to grow their business (Vlachos and Bogdanovic, 2013).

    Evaluation – This is an approach which can be used to review overall business as whole. As evaluate the statement of business as a whole and also take corrective action which are required. This will assist hotel in set their goals as per the financial availability of business.

    Analysis – It refers as the analyzing the services which are currently offered by hotel and it can be proposed to expand their facilities.

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    According to the above described report, it can be analyzed that sustainable tourism is effective approach which help in generating employment. There are various tangible and intangible products and services which are offer by Hilton hotel. The hotel has used procedure of new products of service development and as a result they are planned to launch the super room services in hotel. Apart from this, hospitality operation are used different pricing method which decide the prices of specific goods and services.

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