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Hospitality operations management is a process of developing business skills to work in an organisation within various areas in hospitality industry. In relation to hotel industry, it includes areas like management of human resources, front desk operations, food and beverages and housekeeping (Alexakis, 2011). The present assignment is based on Grosvenor House hotel which is a part of JW Marriott chain, located in Mayfair are of London, England. It is a luxury hotel opened in 1929 providing flawless service. In this report, we have discussed about nature of services offered by hotel and the factors that influence their demand. Also, it links various customer profiles and their expectations to the services offered. The report includes the key stages involved and opportunities and constraints during provision of services. Along with that, the pricing and planning strategies adopted by the organisation are covered.
Hospitality industry is an essential element of part of the service industry. It emphasizes upon satisfaction of customers and meeting the preferences and desires of customers (Kimes, 2011). In hotel industry, it includes services like accommodation, room service, food and beverages, conference and banqueting, entertainment etc. The manager of Grosvenor House also focus upon such areas which are described below:-
The operations of a hospitality organisation are influenced by various factors as it is the most essential element of service industry.In relation to hotel industry, these factors may include preferences of customers, trends in market, seasonality and economic conditions of the country. Some of the factors considered by the management of Grosvenor House are:-
The amount of money a particular person can spent is based upon the income group which he belongs. There are three type of income group in moderate, high, elite. It is the set of particular population which is divided with respect to the level of income (Sunder, 2013).
The person or an individual comes in the moderate income group can stay over the places where he can get the basic facilities and the rooms which have standard lifestyle,there expectations regarding the meal and price are only that which can satisfy there essential needs like food water and electricity. They only need a comfortable location, healthy and friendly environment.
While the person who belongs the high income group needs all the basic facility, plus some additional luxury of food items and the location which they prefer are more close to the nature and peaceful places. The Grosvenor hotel also provides the facilities of separate bathrooms and swimming pools in their area separately and they are ready to pay any amount which gives value to their money (Tsang, 2011).
The person who comes in the elite income group they do not worry about spending the money. They just need those facilities which are only for the elite class of people in The Grosvenor hotel gives premium bathroom, separate gym area, special beverage section, 24 hours dining facility, private chef and butler services. The expectations of this type of customer always new at different places and they are able to pay any price for the specific services of the hotel.
There are various factors which affect the average spending power of customers which are explained below:-
Size of income- Income of people is high then there spending power are also good, those people are able to spend larger amount of money in the accommodation and able to take benefit of luxury facilities. While those people have low income can also spent money but at the decent rate which could be afforded by them (Vlachos and Bogdanovic, 2013).
Social and cultural influences- Low income group generally follows the culture of saving money, while the high income group follows the culture of spending more and more money so, Grosvenor hotel offers and address cultural diversity among the different by knowing the preference and choices of customer. As part of the current trends of hotel industry, it provide all basic plus some premium facility to high income group, while discount on the room is provided by company to lower income group. Also, for higher income group extra facilities are also available as their spending power are much higher.
Economic situation- The economic background of an individual also make influence on the average spending power of a person. The individuals whose economic background is sound, their spending power for luxurious accommodation is also effective. If the inflation and interest rates are higher then it would not allow person to spend more (Alexakis, 2011).
In context of Grosvenor House, for the development of new product and services in the hospitality sector, there are various stages which has been followed for the purpose of analysis and evaluation. These are as follow:
Idea generation- This stage involves the generation of new product and services idea's with the set strategic objectives and addition in the current portfolio of products or services of the hospitality sector.
Idea screening- It is a quick analysis and evaluation of an idea which is made against any set criteria and take care of the objectives with the development of new product or services.
Concept development and testing- This stage tells about the initial requirement of setting an idea of new product and services development and analysis it in accordance with the forwarding it to research and development department.
Business analysis- This stage tells about the brief analysis of the idea generated and know how it will benefit to the organisation. It also disclose how this idea is good for locate or situate into the market and its suitability in context with customer.
Product development- This stage actually belongs to the part of the R&D department. The personnel their gives it the shape of actual product and add new key features and characteristic such as colour, shape, size and design etc (Bartram and Dowling, 2013).
Test marketing- It involves the commercial testing of a product to judge the actual potential and abilities of a new product after the production stage to the qualified customers.
Commercialisation- This phase comes before the launch stage of the product. It decides the strategy of when, where, how and by whom new product and services will be launched and initially at what price and targeting which market of the customer's.
Launch- This is the final and last stage of this whole process. It includes commercial launch of the product in the potential market. It is an kind of event where the physical launch of any products or specific as such in the hospitality sector services take place.
There are various features in relation to the perception of customers regarding the services in hotel industry that are considered by the top management explained below:-
There are a number of factors that impact the growth and development of any business or industry with respect to market scenario. With reference to Grosvenor House, being a part of JW Marriott, it offers lavish services and comfortable lifestyle for the guests so as to maintain its brand image in market. They provide a memorable experience to customers by offering flawless service and premium services. The staff of the hotel is courteous, jovial and passionate to deliver high quality services to visitors (Crawford, 2013). The management of hotel aims at satisfaction of customers by delivering amenities that are beyond the guests’ expectations. Exceptionally distinguishing lavish environment with variety of cuisines keeping in consideration the health conscious people makes this hotel one amongst the best in the UK. Detailed attention to every facility offered by the hotel and handling of queries of guests as and when they arise, has given a competitive advantage to the business.
It is well known that various responsibilities are associated with luxury hotels. These responsibilities if not handled well can act as constraints for the business. Some of the constraints in hotels are change in inflation rates, customer preferences, technological advancements. These factors if not tackled by the management of Grosvenor House can hamper their revenues and brand image.
Merchandising refers to display of products in such a manner that it arouses the interest of customers and entices them to purchase that good (Ferdinand and Kitchin, 2012). This includes ascertaining the quantities, deciding the prices of goods and services, using attracting display designs and techniques, developing promotional strategies and analysing the need of discounts and rebates. In hotel industry, the process refers to understanding the preferences of customers and then delivering services in a way that influence visitors to raise demand for hotel. In context of Grosvenor House, there are various opportunities available for the top management to increase its brand name and stake in market.
Nowadays, with various new trends in technology, hotel has given the chance to buyers to book the rooms via internet through hotel site, mobile applications while they are in their homes, there is no need to visit the property. Also, by establishing healthy communication with visitors while they are in property, they can influence the behaviour of guests in such a way that targets at customer loyalty for the hotel in future. Also, hotel can offer special discounts or rebates if the visitors book directly instead of through a third party service provider. Thus, the organisation builds an understanding of the needs of customers, ensures their ease in booking of rooms and delivers lavish services while the guests are in property. By this, top management of Grosvenor House aims at improvising their brand image in hotel industry and also open routes for acceptance by customers at the time of expansion of hotel across different locations (Kimes, 2011).
There are various methods of pricing available to managers in hotel industry. Grosvenor House also recognises the importance of these methods and thus follow some methods which are explained below:-
Grosvenor House provides elite class services and thus for ensuring its long term existence in market, it is necessary that management ensures that the sale made is able to meet cost of provision of service. There are various factors that are considered by them to make sure that revenue is being generated for business with an element of profit. These factors are explained below:-
Performance measurement is the process of determining how well an individual or organisation is operating to achieve the desired gaols.This includes quantification of inputs, outputs, processes, services and performance to assess whether the pre-decided targets are met or not (Causin and Ayoun, 2011). Appraisal techniques are the methods adopted by an organisation to evaluate the performance of an employee.Management of Grosvenor Hotel also use various such techniques to evaluate the performance of staff against the standards which are described below:-
Grosvenor House use various quantitative and qualitative techniques to track productivity of their staff. These can be used to reward employees and work units and to give promotions. Also, these can aid managers in termination or discipline of poorly performing workers. But these techniques have some adverse effects also like sense of insecurity among those who don't get promotions or salary raises. Also, it makes them feel alienated from the group of personnels (Bharwani and Butt, 2012).
Business analysis is the process of ascertaining business needs and developing solutions to business problems (Bartram and Dowling, 2013). Business evaluation means evaluating performance of operations of an entity. Business planning refers to the process of determining business goals and making plans that aims at accomplishment of those goals. In context of Grosvenor House, management develops processes and methods for delivery of excellent quality of services. Also, it makes plans in accordance with the hindrances that may arise in their future operations. Training of staff is done to ensure that the queries of guests are handled as soon as they arise. This results in accomplishment of organisational goals of revenue generation and profit making.
From the above report, it is concluded that the provision of services in a hospitality industry need to be well planned. It is also analysed that pricing strategy in hospitality organisation should be adopted after considering the internal and external factors of an enterprise. Also, it has been observed that there are various stages involved in effective delivery of services which should be planned well in advance so that any hindrance that may arise during the process can be properly handled. Along with that, it is important for managers to train the staff effectively to ensure delivery of high quality services to visitors.
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