Operations Management for the Hospitality Industry
Introduction
Operation management has importance in the overall business activities of the hospitality industry, as it involves using provided resources with the possible efficiency in order to deliver services to consumers and achieve organisational goals (Patiar and Wang, 2020). On the other hand, service quality control is one of the most significant aspects of operational management in the hospitality industry, as the overall business performance and consumer service depends on this aspect (Azis and Che Ahmat, 2022). The current report is focused on investigating operation management issues considering the service quality control, as it is the only way to success. Along with describing hospitality as a system, the role of operation management in service quality control would be evaluated in this study. Along with that, different technical aspects that are related to operations capacity planning and management, balancing supply and demand would also be evaluated critically. Most importantly, the challenges of managing service quality control and major operation management techniques for mitigating them would be discussed in this report.
Hospitality system and the role operations management
Hospitality management is considered as a system that assists employees to identify as well as manage needs of consumers and satisfy them with services to run the overall business activities smoothly in organisations that belong to the hospital industry (Wood, 2015). The of role operation management plays is important in the overall hospitality industry and thus, to evaluate this further, the general system theory has been taken into consideration. The general system theory emphasises systems that constitute functional integrations (Rodríguez et al. 2020). In accordance with the theory, hospitality can be seen as an open system and its practices always emerge through interaction with the environment. In this regard, the research of Egharevba (2021, p.717) indicates that open systems always exchange feedbacks with their external environment. In addition to that, the hospitality industry works considering socio technical systems that comprise the physical infrastructure and human activities that enable its operations to deliver proper services to its consumers (Tuomi and Tussyadiah, 2020).
Operation management in the hospitality sector plays a crucial role in functions such as planning, leading, controlling, and organising different business activities (Patiar and Wang, 2020). Along with that, operation management also takes a great part in dealing with challenges service quality control and taking the initiative to mitigate them for smoothly running business functions (Dwesini, 2019). Operation management in the hospitality industry plays a crucial role in the use of resources for the delivery of adequate service to consumers. Apart from that, operation management in this specific sector also plays the most significant role in achieving business objectives by planning and monitoring different business activities such as booking, sanitisation, delivery of services, quality control of services, consumer satisfaction, and others (Azis and Che Ahmat, 2022). Based on this, it is noted that quality control is significantly linked with overall operation activities, influencing organisational leaders in the hospitality industry to identify and tackle challenges in service quality control to achieve success.
Proper operational management of businesses in the hospitality sector helps them in increasing profitability by improving the overall services (Menicucci, 2018). Specifically, operational management takes a great part in improving the overall services of hotels, which ensures consumer satisfaction. Companies in the hospitality industry can ensure a higher rate of productivity while considering the improvement of service quality by ensuring the improvement of employee performance. Apart from that, operational management also plays a significant role in reducing waste and assisting businesses to be sustainable, which is also effective to the improvement of consumer satisfaction rate (Floričić, 2020). This is because consumers of the hospitality industry nowadays are concerned more about sustainability and want to take services from organisations that are emphasizing sustainability. Service quality assurance in organisations is extremely related to not only the employees but also with the machine and technology. Findings reflect that approximately 78% of global travellers are willing to stay in green accommodation (Lock, 2022). Furthermore, operational management in hotels also takes the responsibility of providing green accommodations, which impacts the quality of services as well as customers satisfaction rate in a positive manner. Therefore, it is noted that in the overall system of hospitality industry operation management plays a crucial role.
Technical aspects
In this current era, the hospitality industry is extremely competitive and businesses in this industry have been focusing on improving their overall service quality to influence consumer experience and foster success. In this regard, different technology such as artificial intelligence, blockchain technology, internet of things (IoT), has been utilised by companies in the hospitality sector. In accordance with a survey by Statista, approximately 24% of hoteliers utilise different technology in order to improve guest experience (Lock, 2021).
Figure 1: Key reasons for hoteliers to utilise technology globally
(Source: Lock, 2021)
In order to improve the overall quality of services it is important for hoteliers to understand the demand of global consumers. In this regard, the use of artificial intelligence and big data analytics has been helping companies to analyse consumer demand globally. With the help of big data, companies in the global hospitality industry improve the journey of guest, marketing, business intelligence, and guest experience, which directly impacts their service quality (Sakas et al. 2022). For example, Marriott International has been utilising artificial intelligence in order to improve its consumer experience (Marriott, 2017).
Figure 2: Use of AI powered chatbots by Marriott
(Source: Marriott, 2017)
Specifically, the organisation has been utilising AI powered chatbots on different platforms such as messenger and Facebook to solve their queries and improve their experience (Marriott, 2017). This kind of initiative of the organisation has been influential in its consumer base and growth rate in a positive manner. As a result of service quality improvement by utilising technology Marriott International came out as leading companies in the global 2000 list of largest organisations worldwide (Lock, 2022).
The improvement of guest experience impacts their satisfaction level and influences them to make repeat purchases, which influences the profitability of hotels. This is indicating the use of technology has been helping businesses in the hospitality sector to ensure profitability and be competitive. For evidence, the use of technology also helps hoteliers to enhance their profitability. For evidence, during the mentioned survey it is revealed that approximately 18% of global hoteliers believe that the use of technology in business helps them to grow profits (Lock, 2021). While, on the other hand, approximately 15% of hoteliers utilise technology in their business operation to gain competitive advantages and be sustainable in the marketplace (Lock, 2021). Apart from that, considering the activities of demand and supply the blockchain technology has been utilised by different companies in this sector. The use of this technology has been helping the global hospitality industry to make transactions efficiently and maintain transparency in the overall supply chain, which also influences the service quality control in a positive manner. Additionally, the integration of blockchain technology in the business of the hospitality industry has been improving its overall operational management (Filimonau and Naumova, 2020).
Service quality control is the only way to success
Service quality controls have a significant importance to global businesses that are operating in the hospitality industry (Jusoh et al. 2018). This is because; the service quality control in the hospitality sector improves the overall services of organisations and satisfies consumers, which is influential to increase their sales as well as revenue growth. In other words, consumer satisfaction can play a significant role in improving profitability and fostering organisational success in which, the quality of services is essential. In this regard, it is noted that leading companies in the hospitality industry such as Marriott International, Hyatt Hotels, Taj Hotels and others have been focusing on the service quality improvement, as it is a way of achieving success in the hospitality sector.
The consequences of service quality control are largely intercepted throughout the hospital industry as an integral part of maintaining superior service. In order to provide real evidence of this aspect, the context of a renowned hospitality service provider Hilton Hotels can be considered. Hilton Hotel has conceptualised Hilton reservations and customer care that has been paying attention to make the overall operations more efficient as well as profit table. In accordance with the USA today’s customer service hall of fame survey, Hilton hotel is recognised for best customer service within the hospitality sector across the US (Hilton, 2022). This aspect reflects the profound focus of the hotel towards service quality control by providing integrated customer care and flexible operations. Along with this, Hilton also provides in-room entertainment by delivering core reservation and property management systems that have been ensuring better guest experience and resulting in enhanced revenues. Hilton also conceptualises high quality and innovation in their supply chain management across their 6000 global properties (Hilton, 2022).
Major operations management techniques related to service quality control
Service control is one of the most crucial factors that enhance the business performance of an organisation. Continuous improvements are one of the major aspects that are involved in service control operations (Ramya et al. 2019). A business should make necessary implementations in a consistent manner in order to improve the quality of the service and product produced. This would not only help businesses in the hospitality sector to improve their business performance but also assist them in building a loyal customer base. This can also be achieved by following total quality management (TQM) approaches for improving the quality of the products and services of an organisation. As an integral part of maintaining their service quality, JW Marriott has been considering action with integrity and honesty besides establishing a workplace where each employee treats others with dignity as well as respect (Marriott, 2022). Apart from this, another example that can be stated is the Taj Hotel that mentions quality as the most implicit part in the business philosophy. According to the latest reports, Taj Hotel has made an impeccable record of consistently maintaining a high level of food quality, food safety along with food hygiene that makes it one of the most trusted and leading companies (Tajsats, 2022).
Besides this, customer relationship management is another factor that serves a major role in providing a service with an improved quality. In the hospitality sector, customer satisfaction and retention are the two most important factors that help in expansion of a business in the market. An example of JW Marriott can be taken into consideration because of the exceptional customer service that they aim at providing. Marriott is known to treat their customers fairly with respect that helps the organisation in establishing a good relationship with their customers, making them one of the leading brands (Marriott, 2022).
Another evidence of operations management technique related to service quality control can be highlighted by referring to the context of the Radisson hotels. The hotel has paid attention to deliver a clean and safe environment through health and safety protocols by ensuring adequate access to medical assistance as well as travel advisory (Radisson Hotels, 2022). This aspect has added a greater value to their service quality with greater control over customer satisfaction.
Impact of service quality control on productivity, performance, and service improvement
In the hospitality industry, the revolution of any hotel or tourism company plays an essential role in determining its successful presence in the market. Effective service quality control in the hospitality industry helps in ensuring a higher level of customer satisfaction, which helps in achieving better revenue and growth in the long run (Nunkoo et al. 2020). Moreover, a hotel’s control over its service quality effectively helps in monitoring the employees and their work. This species in the case of the housekeeping staff in hotels helps managers to identify if they are properly cleaning the rooms before guests arrive. The quality of work demonstrated by the housekeeping staff helps in maximising customer satisfaction, especially after the Covid-19 pandemic where cleanliness and hygiene have become major concerns of tourists and guests.
Apart from that, the performance of the employees is another aspect that can be influenced by employing effective service quality control strategies (Ali et al. 2021). The use of service quality control strategies can help managers to identify specific areas of training that can be offered to the employees working in different hotels. These training sessions can help employees to learn multiple skill sets, which can be applied in different departments of the hotel. Moreover, individuals who have multiple skill sets can contribute and collaborate with different teams, which significantly increase the value of their work from the organisation’s perspective.
Apart from that, service quality control is also responsible for analysing customer feedback and complaints from guests. The quality control department thereby ensures that the complaints and feedback offered by the guests are taken into consideration, which helps in improving the overall services offered by a hotel order tourism company (Al-Ababneh et al. 2018). For instance, if feedback from the customers indicates that the quality of the food has not been up to their expectations then the quality control department can communicate with the food and beverage department and convey the information that an improvement in service is necessary. Therefore, the quality control department is also responsible for improving existing services (Ahmad et al. 2018). Apart from that, in various cases, customers also request the provision of different amenities such as Wi-Fi. If the particular hotel does not have such facilities and if the demand for such amenities is found to be increasing, then the service quality department can hold a meeting with the operational staff and include such facilities.
Apart from that, the goal of any hotel in the hospitality industry is to ensure that guests feel at home during their vacation and with the help of effective service quality control hotels can ensure the same by offering quality services and facilities to the guests (Mahafzah et al. 2020). Doing so effectively allows hotels to achieve a positive repetition from the consumer’s perspective, which also helps in passive marketing by word of mouth where guest tends to suggest the hotel to their friends and family. Therefore, service quality control is also indirectly linked with the hotel’s performance in the market.
Conclusion
The overall report has presented a conclusive understanding regarding the attributes of service quality control followed within the hospitality industry. In this case, operations management is notified to play an important role that has been supportive to effectively plan and monitor overall business activities. The technical aspects have also been largely integrated with service quality control in this industry where productive usage of artificial intelligence, machine learning and others can be highlighted. Different real business evidence is also presented in this report from the global hospitality industry. By referring to the service quality control strategies of Marriott International, Hilton, Radisson and others, a clear picture has been outlined that signifies flexible operation management with the addition of values through extended service quality. However, the maintenance of good service quality control is also noticed to play a supportive role behind the enhancement of productivity as well as performance of the hospitality industrial players that may eventually ensure their future growth opportunities.
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