Management of Hospitality Operations - Essay Example

Management of Hospitality Operations Contents Contents 2 Introduction 3 Discussion 4 Conclusion 12 References 14 Introduction Hospitality comprises of offering lodging, food and beverage. It can even be defined as a medium offering basic needs to individuals who are far away from their home. This approach is able to satisfy varied needs of human beings. Hospitality is a production method whereby proposed guest’s needs are satisfied to the maximum extent. This is basically done through delivery of products and services in desirable quality and quantity of guests. It is important to set a proper price to the service or goods that appears to be worth being paid for by customers. Service industry is highly complicated as in this sector immaterialist elements of products are considered along with materialistic factors. On a broader context, hospitality can be stated as a harmonious mixture of beverage, shelter, food, physical environment, and behaviour or attitude of individuals. This concept encompasses wide range of activities, experience and facilities to customers. Hospitality approach in many scenarios is witnessed to overlap with tourism in terms of three core services like food, accommodation and drink. On the contrary there are certain factors which are unique to hospitality segment such as public houses, restaurants, etc. In this particular study commercial hospitality will be greatly highlighted. There would be comparison drawn between delivery and service design of standardized commercial hospitality with a customized version of the same segment. On the basis of this study different service design structures can be closely analyzed. Customized services require greater extent flexibility within its system but standardized services outline a well structured format for service delivery to end customers. Commercial hospitality cannot be stated as a separate sector in hospitality industry. Since this refers to respecting guests, treating them as equals, delivering desirable service, and is connotation of personal care. Hotels, resorts, restaurants, etc., all are part of commercial hospitality either offering standardized or customized services. Discussion Service design is construction and specification of networked social practices based on technology. It is a framework that delivers valuable action capacities to end customers. Services can be termed as network intelligence. This design can be intangible or tangible and includes artefacts, communication, behaviours and environment. There is a major difference between products and services. Like products come into existence before being used or purchased but service exist at the moment when they are used or provided. It is an activity that suggests scripts or behavioural patterns to actors in service interaction. The essential elements of design character and service are in the essence of understanding interweaving patterns. Service design provides a systematic and charismatic approach to meet needs of service organization, meeting rising expectations of customers, making effective use of technology for achieving desirable targets, answering social, economic and environmental challenges, fostering innovative models and sharing large base of knowledge (Ball, Jones, Kirk and Lockwood, 2003, pp. 90-97). This kind of design varies from one industry to another but has a great deal of significance in the hospitality sector. Hospitality industry is an act of kindness in looking after and welcoming strangers or customer’s mainly in context of accommodation, food and drink. In comparison to other industrial sectors, hospitality industry is unique in nature in terms of being service-oriented and human exchange in process of service delivery. Firstly in hospitality industry there is a mix of product and service (Dittmer, 2002, p. 134). For instance, tangible features comprise of steak, wine, well trained staff, etc., and intangible elements consist of friendly behaviour of staff and comfortable dinning atmosphere. Two-way communication is an essential factor in excellent service delivery. This eventually requires active participation of both service staff and customers in the delivery process. Through such interactions, expectations and needs of customers can be identified by service staff in order to take immediate actions (Bitner, 1992, pp. 76-77). Success and growth of hospitality industry is dependent on survival of repeated customers. Long term relationship development with customers facilitates enhanced brand reputations, positive word of mouth, and high revenue margins for the company (Cooper, Fletcher, Gilbert and Wanhill, 1999, pp. 103-104). Cultural diversity is a common factor in tourism or hospitality industry. Customers as well as staff in this industry belong to different culture and its impact is observed in service delivery process. Beliefs and attitudes of customers’ changes across varied cultural set (Bowie and Buttle, 2004, pp. 90-92). This factor is taken into consideration in customized services offered by commercial hospitality segment. Labour intensive is another characteristic of this sector and it states huge labour supply is required for creating memorable experience of every guest. It is an important characteristic specifically for those firms operating in commercial hospitality sector, who target high end customers. As a service provider there are numerous elements which need to be taken into consideration. Since service represents an intangible object it is often faced with a lot of challenges. In many cases, customers cannot be satisfied by service providers since it is difficult to analyze needs and expectations of customers in terms of service delivery. On the other hand, in a service design there are different touchpoints. These touchpoints have specific characteristics and it is suitable in certain conditions (Brotherton, 2000, pp. 112-113). Touchpoints are also regarded as customer contact points in the form of online payment, communicating with customers through online platform, customer feedback, etc. These touchpoints differ in standardized services in comparison to customized services. Like in customized services, transaction, personal interaction with customers, offering customized services, are some touchpoints. On the contrary in standardized services, a set of rules and norms followed by executives, formal atmosphere, and specific menu items with set prices are other touchpoints. Hence it can be stated that there is a slight difference between service delivery of customized services of hospitality industry and standardized services. In standardized services there is a specific blueprint which is followed for any guests (Cooper, Fletcher, Fyall, Gilbert and Wanhill, 2005, pp. 70-72). This service delivery blueprint comprises of decorum to be maintained within a hotel, resort, etc., speech of executives from entrance of guests to their exit, food items to be offered and category of accommodations that can be availed by guests. However this blueprint is flexible enough to incorporate changes in case of customized services. Customers put across their opinions or demand and service provider structure their blueprint accordingly. For instance, food items are added as per customer’s choice, guests are given opportunity to select food ingredients, and extra facilities are provided on special request of customers (Hassanien, Dale and Clarke, 2010, pp. 120-122). Touchpoints are the basis for designing services such as in standardized services more emphasis is given on the flow of service. On the other hand, in customized services, service provider is more concerned with analyzing well customer needs and deliver service accordingly. However majority companies operating in the service industry feel that they are offering exceptional services to customers but there exists a gap between exceptional service and meeting customer needs (Hoffman, Bateson, Wood and Kenyon, 2009, pp. 110-111). Social science and advanced technology needs to be combined together in order to meet desired levels of service. Service design is majorly based on needs of customers. Its purpose is to develop environmental friendly atmosphere and profitable services. Collaborative and strategic process existing between different actors is essential for effective service design (Holloway, 2002, pp. 96-97). Daily experiences which are witnessed by customers in the form of services greatly influence the decision making procedure. Customers in current scenario have more requirements and needs than in earlier days. Target group of hospitality industry do not hesitate while stating services they liked and those they disliked. Technological advancement has made customers more informed connected and empowered (Boxhall and Purcell, 2003, pp. 82-83). They indeed have active presence in wide array of social networks that speeds up recommendation and communication about services and products. Word of mouth takes up a positive role in this context and it affects reputation of companies. This has even facilitated change in the service design so as to incorporate fluctuating demand of consumers. In earlier times hospitality industry delivered high quality standardized services but due to diverse set of cultures and varying needs of guests, customized services gained its importance (Knowles, 1996, pp. 125-126). The service design is now more of a collaborative approach rather than participatory process. For instance, in customized services butlers take respective orders from guests and then effectively coordinated with chef to deliver required services. Whereas in standardized services there are some specific routine to be followed by butlers, chefs, and other executives, so as to ensure that customers receive desirable quality service and products. This is the area in service design where both services differ from each other. In present scenario the focus is more on creating real experiences of individuals and catering hidden needs. All the participants in service design are brought together in order to redesign the process and collaboratively create from a common view point (Lashley, 1997, pp.110-115). This discipline considers service as a system, and redesign connections amongst products, processes, people and policies. Seek differentiators are solely responsible for building unique experiences and give competitive proposals. It comes into existence when the service starts and lasts even after customer interaction. The resources available in companies are required to be incorporated in all levels and areas. Intangible as well tangible elements are taken into consideration for delivering pleasant and controlled experienced to customers. The characteristics of service design in case of standardized and customized services can be well determined by external analysis of hospitality industry. Customization can be defined as production of custom-tailored or personalized products and services. This procedure is used to meet changing or diverse needs of customers. Standardization can be defined as the process of implementing and developing technical standards. This approach helps to maximize quality, compatibility, safety, interoperability and repeatability. PESTEL analysis is usually conducted in order to identify macro environmental factors influencing an industry. For instance, in this study commercial hospitality industry in UK market needs to be evaluated. Political factor has a great deal of influence on a particular industry. It basically includes legal issues and government regulations under which a firm operates. Political environment in UK is quite stable in comparison to other regions across the globe. This in turn makes it convenient for companies belonging to hospitality industry to operate in this region. Economic factors resemble the purchasing power of target group as it directly affects company’s offerings. UK economy tends to benefit from its low inflation rate and in this country unemployment is relatively low. Buying power of customers is high and this positively affects hospitality industry. Luxury hotels and resorts are able to offer superior quality services to customers as they feel it worth being paying for such high end services. Social and cultural factors in UK market are greatly aligned with the operations of hospitality industry. Consumer market of UK is not price conscious but they demand more for quality service. Customized services of commercial hospitality industry evolved due to cultural trend of UK. Since customers often demand for unique food items and unique memorable experiences. Technological factors has caused a positive impact on this industry as UK market offers the best technical support for smooth functioning of business operations. Availability of advanced technological applications is an added advantage for hospitality industry as guests often demand for high tech services. Legal factors are concerned with regulations and norms that need to be followed by companies performing in a specific market. UK government has certain strict regulation and laws in terms of employment conditions, trading, maintaining ethical standards, etc. Environmental factor also needs to be taken into consideration simply because downfall of an organization is dependent on its failure to maintain environmental policies and standards (Mudie and Pirrie, 2006, pp. 201-202). Hospitality industry is hold responsible for degrading environmental conditions in context of waste disposal, water pollution and excessive usage of natural resources. However in present scenario green technology concept is adopted by majority firms operating in this industry so as to safeguard environment from any kind of damage. The servuction system highlights the wide range of elements which needs to be focused as service providers. This system varies to a certain extent in relation to standardized and customized services. There are certain elements to be managed appropriately such as customers, service environment, staff and service delivery system. There are two parts in service design phase – visible and invisible component. The organizational system or internal business operations are regarded as invisible element (Jones, 2002, p. 143). On the contrary, visible component represents contact person or the service provider, and servicescape. Customers usually receive bundled services as all the actors work in collaboration to deliver required service level. Service promises are a common factor both for standardized and customized services. They basically represent formal statements given by service provider through various media channels, first impression created by contact person or appearance of restaurant, and word of mouth communication that takes place before guest’s visit. In a service design there is an integration of many factors like operations, HRM and marketing. Service operation changes in customized services in comparison to standardized services (Mullins, 1998, pp. 56-57). Marketing and manufacturing bias components are applicable in different kinds of service. For instance, customized service is greatly observed in luxurious hotels and this result into higher prices as well as higher costs. This resembles marketing bias nature in which effectiveness of service operations is through setting higher prices. Manufacturing bias nature is observed in budget hotels where standardized products are delivered to end users. This can be associated with low prices and much lower costs. Service operations in both types of services can be contrasted in context of low contact personnel and high contact personnel. For instance in customized services there is a high contact end technical core principle cannot be isolated from service delivery. On the contrary, in standardized services, low contact end is visible as more importance is given to manufacturing operations (Swarbrooke, 2002, pp. 75-76). In order to align operation, worker and customer it is essential to deliver a well structured script to all individuals involved in service operation. The service process matrix is another approach that outlines degree of customization involved in service delivery process. Service operations are usually measured in context of two factors such as labour intensity degree, and degree of customization and degree (Knowles, 1998, p. 97). The level of interaction denotes whether a service is customized or standardized. This in turn requires butlers, staff, executives, etc., to be well trained so as to understand specific requirements of customers and deliver service accordingly. In standardized service delivery the target is mass market and hence high degree of labour intensity is required (Cousins, Foskett and Gillespie, 2002, pp. 167-168). More number of staff is required for commercial hospital sector delivering standardized services. On the contrary, high level of skills and expertise is required within individuals who are involved customized service delivery. In standardized services, service provider decides firstly on the products to be delivered and then plans the entire delivery process. For instance, McDonalds belongs to this commercial hospitality industry and has a structured menu comprising of company’s offerings to end customers. They even maintain a standard format in all their outlets where customers are attended by some executives, they select food items, place order, transaction takes place and order is delivered to respective customers (Wearne and Morrison, 1996, pp. 177-178). Self-service concept is implemented by this organization in order to attend more number of guests and reduce time consumed in delivery process. There are varied service design options and it is associated with type of service being delivered. For instance sequential standardized approach is incorporated by those companies offering standard services. In this design customers are the main players and the entire operations are dependent on their effective role play. Whereas in reciprocal service there is a high involvement of all the actors including customers in order to deliver required service quality (Kinton, Ceserani and Foskett, 2003, pp. 192-193). It can be stated that in this form of service two actors are involved front end executives and customers.. The process is similar for any company offering standardized services. There are four elements in the procedure such as physical evidence, customer, contact person and support processes (Lashley and Morrison, 2000, p. 84). Physical evidence mainly resembles parking, desk, cart for bags, elevators, room amenities, menu, delivery tray, bill desk and food taste. Customers usually arrive at the hotel, are escorted by bell person, enters into room, takes shower, calls customer service, receives food, eat, and then finally checkout. It is a standard process which is followed by every customer encountering standardized services in hotels, resorts, etc. Contact person holds some significance in such kind of service delivery. They are actively involved in welcoming guests, processing registration, delivering food and bags, and lastly processing guest checkout. However in this service design, support system encompasses food department and registration system (Johnson and Scholes, 2002, pp. 133-134). This model is slightly modified when it comes to delivering customized services to end customers. Like physical evidence is changed upon customer request and contact person is well trained to identify appropriate needs of guests. Front end executives work in full coordination with back end staff to effectively deliver this service type. On a broader context, it can be stated that there are changes incorporated in back end system mainly in operational system and food system when it comes to customized services of hospitality industry. Conclusion As per this study, hospitality industry is the most attractive industry for many companies. In UK market specifically, external environmental conditions are stable enough to support this industry. The stable political conditions and desirable purchasing power of customers have enabled future growth and success for the industry. However commercial hospitality has certain elements which need to be taken into consideration. This comprise of front end and back end actors, service delivery platform, customer involvement, and structured flow of operations. There are two kinds of services offered by commercial hospitality sector such as standardized services and customized services. Standardized services are commonly observed in budget hotels whereas customized services are generally offered in luxury hotels and resorts. It can be stated that fluctuating consumer demand has resulted into customized services. These services add on to uniqueness of service delivery procedure. Service design is a blueprint for any kind of service delivery encompassing strategic framework for collaborative working style of all service actors. In certain cases front end and back end actors need to synchronize for service delivery and in some situation customers need to effectively coordinate with front end executives. 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