Hospitality Operations Management

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Hospitality Operations Management

Operations management concerns with managing of resources that directly produce the organization’s service or product. These resources are brought together by a series of processes so that they are utilized to deliver the primary service or product of the organization. Thus, operations is concerned with managing resources through transformation processes to deliver service or products. (Rowbotham, Galloway and Azhashemi, 2007) Since the mid-1980s, the rate of growth of major service sector categories as hospitality services, has been approximately double that of other industries (Daley et al., 1998). Due to the unique characteristics of service operations, such as heterogeneity, inseparability,
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Information Technology such as Property Management System (PMS) can assist operations managers in collecting guest information in regards to the daily occupancy and number of rooms that have breakfast inclusive. This will benefit forecast the capacity in an effective and efficient way. There is no doubt that better capacity decisions can be made if the demand can be forecast accurately (Betts et al., 2000). Operations managers can better organize staff and equipment, which will enhance the service operations. However, there are still limitations in using the occupancy forecast in predicting the demand in breakfast time of Ava Restaurant, as operations managers are unable to accurately predict the demand of breakfast from walk-in customers.

In order to solve the problem of unexpected demand in the breakfast period, the adoption of advance booking is recommended. The hotel can encourage customers to make reservations prior to breakfast time in order to enjoy discounts. Harrison (1993, p. 130)

states, “Demand may be managed through the encouragement of non-peak purchasing through pricing and promotional activity”. As a result, operations managers have a better forecast in anticipation for the actual service operation. A balance of supply and demand can be managed effectively; consequently high service quality and efficient operation can still be maintained, even during the peak
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