HOSPITALITY OPERATIONS MANAGEMENT SAMPLE

Introduction

In this report, the issues occurring from the operational management of luxury hotels within the industrial range of hospitality will be discussed thoroughly with the impact of these on sustainability management.

The literature review will give the realisations of general theories concerning the topic of research and the critical evaluations of the factors such as management techniques that are being used. The analytical content will represent the statistical data and information involved with the topic of the report and relevant applications for the mitigation of the issues will be analysed and inferred.

Literature review

Evaluation of operation management in the luxury hotel sector considering as a whole system and role of operation management

The hospitality industry around the globe is delivering products and services along with necessary lodging and fooding to customers around the globe and luxury hotels efficiently execute the day-to-day operation to deliver efficient products and services. The hospitality industry is one of the key elements for a tourism business to prosper with the best quality services to the customer for gaining consumer interest and satisfaction every time a year.

The hospitality sector through the lens of luxury hotels is subjected to delivering high-end services in an authentic and sophisticated manner through managing the operational activity without delay or loss of resources. Petcu et al. (2021) mentioned in the article about performance, quality and social responsibilities is the key to ensuring the sustainable development of the hospitality organisation where quality management in the operational activity seeks frequent follow-ups, continuous learning and development.

The luxury hotel sector is exercising a brief look-up for driving efficiency, effectiveness and efficiency to deliver perceived value, support and satisfaction for better customer satisfaction with the commitment to social responsibilities to meet the stakeholder’s expectations.

Specifically, the operations management in luxury hotels is widely structured for delivering a range of business services which are recognised as the front office, housekeeping, food and beverage service, food production, accounts and credits department.

In addition to that maintenance department, supply chain partners, reservation and marketing, Human Resource (HR) functions and security departments are evident parts of hospitality operation and management. General system theory is a management theory that encompasses all the components in the organisation that is independently and interrelated connected and interacts with each other as subsystems.

The system theory aligned the luxury hotel’s operation management as open and used to receive input from different components to deliver the end services and products to the customer for better satisfaction and increased market transactions. Kim et al. (2022) have discussed the efficient management of hotel spaces for maximising revenue earning where operational efficiency may drive the strategic decision-making of the hotel management. The interconnected and interdependent components have close reliance on each other for executing operational excellence to deliver customer satisfaction.

The luxury hotels worked as a wholly organised sector in delegating performance and productivity to earn marketing efficiency by navigating different operations at the scheduled time and perspectives as per organisational requirements. The organisational system of luxury hotels has the components of the subsystem, holism, system boundary, and synergy along with the closed and open system where the luxury hotels system is made up of an open system in combination with the closed and open subsystems.

Identification of contemporary issues and implications in managing the operations of Luxury hotels in the hospitality industry

The hospitality industry is largely distributed and responsible to deliver a combination of services to satisfy its customer with operational efficiency and quality services and products to earn customer loyalty. The contemporary issues in luxury hotel operation management are the control of cost and revenue, the advent of globalisation and internet-based services, concern for the environment in consumption of energy and other natural resources and waste management.

Chen (2019) pointed out that the global climate concern has been arguably posing risks for driving sustainability through the carbon impact where the high reduction of carbon impact influences the sustainability indeed of luxury hotels. The health and customer support system is also a concern of operation management in luxury hotels where employee and customer health as well as service quality typically define satisfied consumer engagement.

Marinakou and Giousmpasoglou (2019) stated in the article about the talent retention strategy which has great importance for luxury hotels for engaging in employee participation, the scope for development and succession planning. Talent management is also implicated in managing operations of luxury hotels which seek training and development and clear job responsibilities to coordinate the customer leisure hours to spend effectively.

Sourvinou and Filimonau (2018) asserted that the sustainable drive of luxury hotels through environmental management programs is equally reflected in employees’ green behaviour through well-designed and more engaging programs for enabling high job satisfaction and organisational commitment. Other issues in the day-to-day operational activity of luxury hotels are involved capacity planning and development, demand forecasting, balancing demand and supply, scheduling/ overbooking/production, revenue and yield management as well as queuing and simulation.

Gunter (2021) expressed the significance of scheduling operations and responsibilities of staff enabling the demand forecasting, overbooking and the revenue aspect where tourism products and services are perceived as perishable which is sensitive and subjected to external shocks. Therefore accuracy in demand forecasting is the most sought criterion for improved sustainability of luxury hotels in business operation for capacity management and multiplication of revenue return.

Sustainability management in the hospitality industry through excellent operation management

The concern of sustainability is the prime focus for gaining sustainable competitive advantage in managing the operation management in the hospitality industry which is viewed as complex and discrete.

The consumption of energy and resources are subjected to accounting and finance concerning business input and output of the international luxury hotels where the environmental impact as well as practise the CSR activity for the communities. Moreover, this effort enhances the sustainability index by exercising excellent operation management activities in luxury hotels. Yusoff et al. (2021) demonstrated that the hotel industry has a large contribution to environmental degradation where the adoption of green HR management remains a win-win factor for both the organisation and its stakeholder in delivering environmental responsibility.

It may be argued that green recruiting, selection, training and development as well as green compensation positively influence luxury hotels to compensate for its environmental impact and improve the organisational market engagement. Chandran and Bhattacharya (2021) stated for the adoption of green marketing practices for the luxury hotel to cope with the natural beauty and sceneries with minimisation of environmental impact through operational excellence and minute monitoring of waste disposal, usage of materials and cost cutting.

Revenue management, accounting practice, queuing and simulations are some of the key aspects of operation management in hospitality management which help to generate the flocking of tourists in the hotels for getting services for spending quality time in the leisure hours. These activities are highly marketing oriented where the advent of internet services has allowed a prior booking activity for the tourist in the hotels which needs to be accompanied and integrated with the service offering of luxury hotels with the option of customisation and personalisation.

Bastos (2020) reflected that the incorporation of digital transformation in the operation management of luxury hotels has been highly beneficial in saving and managing time, monitoring critical day-to-day activity, and employee engagement. It also enables data-driven decision making which boosts the performance and productivity of the hotel operation and drives towards achieving sustainability through enhancing the profit aspect of operation management.

Identification of the impact driven by productivity and performance on the quality of products and services in the hospitality industry

Productivity and performance are the significant drivers of operation management in every industry and business where the tourism industries in means luxury hotels are readily dependent upon employee production and performance to gain sustainable advantage.

Employee performance and productivity are measured through increased customer satisfaction and driving loyalty for the offered services by luxury hotels. On an alternative note, the delay in services, as well as poor quality food, room design, aroma and signature of luxury hotels, space management for recreations, room delivery, cleaning and hygiene practice, are behind the positive brand image of the luxury hotels. All these activities are human-driven where employee skill development and experience are useful for the company to make an impact on the customer’s perception and support.

The working functionaries of operation management are crucially interdependent where the collective efforts measure the sustainable advantage through calculating demand forecasting for enabling the perceived support and accommodation to the intended customers for a better loyalty drive.

Regular performance reviews and feedback are highly effective for engaging in performance management of the employees in luxury hotels where communication with customer support and delivering necessary products of food and beverages is the primary duty of the employees.

On a different note accounting, scheduling, balancing supply and demand as well as marketing activities need to be well performed and executed to optimise resources in the hotel industry which led to the generation of high profit. The yield management for luxury hotels is dependent on the investor’s relationship, and stakeholders’ interest and availing finance in need is essential for making an impact through increased performance and productivity through investment in infrastructure and skill development.

Abdelhamied (2019) described the hotel industry as a labour-intensive industry where well-trained and well-qualified employees are driving positive quality in the services through efficient performance and productivity to generate high satisfaction among customers. Group and teamwork enable high-performance quality of the workforce with integrated services to the customer and positively influence the customers of the luxury hotels.

Analytical content

Han et al. (2021) have stated that the proper obtainment of mobile technology may mitigate the chances of operational and management issues for luxury hotels and may provide innovative approaches for consumers. The operational management of a luxury hotel may be detonated as the combination of strategic goals and objectives, designation of processes and overall management of the consumers.

It may be argued that the wrong adoption of mobile technology may affect the operational management of luxury hotels and is able to cease the consumer growth of the hotels. Yeng et al. (2018) have shown that total quality management (TQM) is an essential part of operational management and sustainability where the Malaysia Hotel Industry has been taken as an example. On a broader note, the hotel industries are in surging need of operational management for the deficiency of Quality Management aligned with the operational issues.

The competitive advantages of operational issues in the Malaysia hotel industry are namely improvisation in efficiency, consumer attraction and satisfaction preceded by excelled brand images of the hotel. On the contrary, a lack of proper operational management may lead the hotels towards several issues, for example, less optimization of products and services of the hotels. Cingonksi and Petreveska (2018) said that the factor of operational cost is a vital and responsible factor for the operational management issue or challenge of luxury hotels.

Additionally, the reduction in operational costs for a luxury hotel extracts the factor of customer attraction and growth by uplifting the brand image of the hotels. On a contradictory note, the lowering chance of reducing or lessening the operational cost may give birth to one of the operational issues reading fall in customer base and business sustainability.

The factor of operational cost reduction is ranked as mode 4 which is statistically proving the importance of the factor in the mitigation of operational issues obtained by the luxury hotel management. (Cingoski and Petrevska 2018).

Pereira et al. (2021) proposed that the acquisition of proper operational management has been done by the luxury hotels in Arrabida Natural Park located in Portugal resulting in the increment of water consumption from 200-250 L to 1000 L. In addition, there are numerous factors accessed by the luxury hotels such as the providence of high-end and optimised services towards the customers along with the creation of safe and healthy environments of the hotels for the sake of lessening operational costs.

The graphical representation of the Cape Coast Metropolis hotel industry showed that there is an intensive and inevitable surge in capacity issues daily with a percentage ratio of 41% (Refer to Appendix 1).

The cape coast metropolis hotel industry has to focus on the mitigation of the capacity issues and challenges to overcome the operational diversities in the hospitality scenario. Finally, the administrative challenges, employee turnovers and communicative problems among team workers are also massive operational issues or adversities being occurred in the hospitality industry giving impactful challenges towards sustainability.

Application

Luxury hotels are currently involved in the healthy and secure modes of housekeeping through the implementation of operational health, cleaning and sanitization protocols and providing adequate training to the housekeeping staff (Neog 2021).

Production scheduling or planning in the hospitality industry is a plain and sole indicator of profitability that is needed by luxury hotels to eradicate operational issues. On an explanatory note, the mitigation of seasonal demand challenges may be fixed by the proper production scheduling techniques obtained by luxury hotels. A theoretical study has shown that the seasonal imbalance of the tourists in luxury hotels may yield huge operational costs and impact profitability which may be treated as an operational management issue (Zhang et al. 2021).

The technique of simulation is mostly needed by the hospitality industry to lessen the chances of employee turnover and for the improvisation of communications. The application of simulation is tremendously relevant for luxury hotels for the understanding of the scenarios of the hospitality industry based on the Covid-19 situation (Davahli et al. 2020).

The proper application of managing revenues will also be essential for the luxury hotels and hospitality industry for the enhanced interface of sustainability management. Revenue management deals with the procedures of selling products with accuracy and goodness to the consumers for the surplus of desired profitability.

The revenue management of the hospitality industry revolves around the acceptance or adoption of the strategies devoted to the consumers and the managerial interface of room inventories for optimization of profit and sustainability management (Noone et al. 2017). Overbooking is also another form of revenue management that is used by luxury hotels to deal with last-minute cancellations and turnovers.

Sometimes the hotel management and authority intentionally used to initiate overbooking for the increment of revenues for maximum profitability and sustainability management practices. The queuing service is the key concern of the hotels within the hospital industry for the ordered execution of the consumer dealings regarding the bookings of the rooms without any imbalance or chaos. Apart from these, the lion portion of the hospitality industry is inclining towards innovative technologies such as artificial intelligence, automation and machine learning for the sustainability of operational management.

Conclusion

From the above report, it may be concluded that the operational issues regarding the managerial practices of luxury hotels within the hospitality segment are discussed and analysed vividly. The literature review showed the evaluation of the operational management of the hotels along with the concise identifications of the issues regarding the operational management consolidated with sustainability management.

Analytical content has driven the statistical information published on research studies in support of the topic of the report regarding issues of operational management. The report has been terminated with the applications taken by the hotels to achieve sustainability through operational management in the hospitality industry.

References

Abdelhamied, H., 2019. The impact of training activities on quality of service, customer satisfaction and behavioural intention. Journal of Tourism and Hospitality Management, 7(1), pp.135-148.

Chandran, C. and Bhattacharya, P., 2021. Hotel’s best practices as strategic drivers for environmental sustainability and green marketing. In Consumer Behaviour in Hospitality and Tourism (pp. 66-81). Routledge.

Chen, L.F., 2019. Hotel chain affiliation as an environmental performance strategy for luxury hotels. International Journal of Hospitality Management, 77, pp.1-6.

Cingoski, V. and Petrevska, B., 2018. Making hotels more energy efficient: the managerial perception. Economic research-Ekonomska istraživanja, 31(1), pp.87-101.

Davahli, M.R., Karwowski, W., Sonmez, S. and Apostolopoulos, Y., 2020. The hospitality industry in the face of the COVID-19 pandemic: Current topics and research methods. International Journal of Environmental Research and Public Health, 17(20), p.7366.

de Bastos, B.P., 2022. Contribution of hotels’ revenue management for supply chain sustainability. Journal of Revenue and Pricing Management, pp.1-12.

Gunter, U., 2021. Improving Hotel Room Demand Forecasts for Vienna across Hotel Classes and Forecast Horizons: Single Models and Combination Techniques Based on Encompassing Tests. Forecasting, 3(4), pp.884-919.

Han, S.H., Lee, J., Edvardsson, B. and Verma, R., 2021. Mobile technology adoption among hotels: Managerial issues and opportunities. Tourism Management Perspectives, 38, p.100811.

Kim, J., Kim, S.I. and Lee, M., 2022. What to sell and how to sell matters: Focusing on luxury hotel properties’ business performance and efficiency. Cornell Hospitality Quarterly, 63(1), pp.78-95.

Marinakou, E. and Giousmpasoglou, C., 2019. Talent management and retention strategies in luxury hotels: evidence from four countries. International Journal of Contemporary Hospitality Management.

Neog, R., New Hotel Cleaning Procedures After COVID-19-A Study of New Housekeeping

Noone, B.M., Enz, C.A. and Glassmire, J., 2017. Total hotel revenue management: a strategic profit perspective.

Pereira, V., Silva, G.M. and Dias, Á., 2021. Sustainability practices in hospitality: Case study of a luxPractices in Hotels.ury hotel in Arrábida Natural Park. Sustainability, 13(6), p.3164.

Petcu, M.A., Sobolevschi-David, M.I. and Curea, S.C., 2021. Configuration of an integrated quality-social responsibility-performance management system in the hospitality industry. Case studies: Balneary tourism Romania. Sustainability, 13(13), p.7303.

Sourvinou, A. and Filimonau, V., 2018. Planning for an environmental management programme in a luxury hotel and its perceived impact on staff: an exploratory case study. Journal of Sustainable Tourism, 26(4), pp.649-667.

Yeng, S.K., Jusoh, M.S. and Ishak, N.A., 2018. The impact of Total Quality Management (TQM) On competitive advantage: A conceptual mixed method study in the Malaysia Luxury hotel industries. Academy of Strategic Management Journal, 17(2), pp.1-9.

Yusoff, Y.M., Nejati, M., Kee, D.M.H. and Amran, A., 2020. Linking green human resource management practices to environmental performance in hotel industry. Global Business Review, 21(3), pp.663-680.

Zhang, D., Xie, J. and Sikveland, M., 2021. Tourism seasonality and hotel firms’ financial performance: Evidence from Norway. Current Issues in Tourism, 24(21), pp.3021-3039.