Hospitality operation management in Rosewood Hotels

University: Australian College

  • Unit No: 123
  • Level: Undergraduate/College
  • Pages: 7 / Words 1697
  • Paper Type: Assignment
  • Course Code:

  • Downloads: 649
Organization Selected : Rosewood Hotels


Hospitality operation management is a program which provide skills to work in a hotel or to run a hotel with wide range of are within in that industry such as housekeeping operations or food and beverages management etc (Lashley, 2018). This report highlights key stages in product and service development applier within a hospitality operation with reference to Rosewood hotels example, analysed features which contributes towards customers' perception of product and services, opportunities and constraints affecting product development, different merchandising opportunities, different methods of taking pricing into account and factors which will affect the revenue generation and profitability in hospitality.

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Key stages in product and service development applied within a hospitality operation with an example of rose wood hotel

  • Idea Generation and market research: For any development of a product we need an idea to start with. Then it will go through a series of process which will ensure the success of it. For example, first we can do SWOT analysis to analyse Rosewood Hotel's current position and weather its in line with their business strategy. For correct idea generation Rosewood hotels should do a market research on its competitors success and failure.
  • Idea Screening: It is important to ensure that weather the chosen idea is suitable or unsuitable and if it is unsuitable then it should be rejected for the success of any product or service.
  • Concept development and testing: If Rosewood hotels have an idea then it is needed to test that thought. Rosewood hotels can ask their customers also. Using a group of their true customers, it can be tested and their reaction can be recorded. After passing through all these trails, it should be a concept now with enough in-depth knowledge. (Llach and, 2016).
  • Business Analysis for service: This is done in case of services to ensure weather it will be a success which will be used by the customers or a failure i.e. how much it will be liked and used frequently by the customer.
  • Product development: If Rosewood hotels have a new product or service then it need to pass market and technical development stage.
  • Market testing and launch: Market testing is required to validate full concept. And after all these stages' product or service is launched. 

Analysing The Features Which Contribute Towards The Customers' Perception Of Product And Services.

In a hotel business customers' perception is really important, it determines that how a customer can link with the product. There are many factors that affect customers' perception such as:

  • Brand Image: First and the foremost factor is brand image or reputation. If Rosewood hotels reputation and image is good then they need to it will affect customers' perception. Product's brand, reputation or whole chain of hotels have a contribution towards customers' perception (Factors affecting revenue generation, 2013).
  • Accommodation facilities: It is also a very important feature of Rosewood hotels that contribute to customers' perception. If facilities provide by the hotel a good or excellent for accommodation then it will affect customers' perception.
  • Service quality and restaurant access: Service quality of Rosewood hotels should be good, effective and fast. If service quality is good then it can overshadow all the other negative things. Then access to restaurant should be available and open to all customers, Quality of food should be good, service for food should be fast.
  • Price: Price is also an important factor which affect customers' perception. Price of Rosewood hotel's service product or its accommodation should be according to the quality of food, quality of room, service quality, its brand image or reputation and also decided after comparing competitors price. All these factor affect customers' perception.

Assess The Opportunities And Constraints Affecting Product And Service Development Within A Hospitality Environment Regarding Rosewood Hotels.

Opportunities affecting product and service development within Rosewood hotels are:

  • Market orientation: Rosewood hotels need to focus on meeting and discovering customers need and desires like what are there expectation regarding food, accommodation, service etc.
  • Technology: Technology used in creating the product also affect product and service development. Rosewood hotels should accept the rapid changes in the technologies for development of a product (Ryan, 2015).
  • Top management: Management of Rosewood hotel should be excellent as it will affect the development of its product and services, weather its related to accommodation or restaurant service etc.

There are many constraints which affect product or service development such as: shortage of funds, changes in food or drinks, getting approvals or license by the government, not updated with change in market or technology, not able to complete customers need and desire, negative publicity of rosewood hotels can affect its business, hospitality environment also affect the business of a hotel, location of Rosewood hotels also affect product or service development in Rosewood hotels,price changes in accommodation or restaurant food or services or government tax system which affect the price has a great effect on customers' preference and development of product and service etc.

Evaluate Different Merchandising Opportunities For Rosewood Hotel Products And Services

Merchandising is basically a process or practice of selling or displaying products of a business to customers. Nowadays merchandising concept is developing in a great extent specially for hotel business (Llach and, 2016). There are various different merchandising opportunities for rosewood hotel such as:

  • Digital merchandising: It is basically promoting our business online. In this Rosewood hotels can promote their hotel on all social networking sites or they can start online booking for their hotel or they can provide online vouchers or discount for their hotel room or food they provide.
  • Visual merchandising: Through visual merchandising Rosewood hotels can display pictures, videos of the product and services they are providing online or on their hotel sites for customers. They should target right things at right place with right message (Chan and Hsu, 2016). Because according to a survey content sensitive customer spend more than content insensitive customers.
  • Retail merchandising: Rosewood hotels can promote their hotels through flyers, vouchers, advertisement or through social media. It will help them to gain more customers as more and more people will come to know about their hotel, services it provides or quality of food, rooms and facilities they provide to the customers. 

Evaluate Different Methods Of Pricing Taking Into Account Additional Pricing Considerations

There are different methods of pricing such as:

  • Cost-based pricing: Cost based pricing is a method in which small amount of desired profit is added in the final price. In other words it can be said that cost based pricing is in which production cost and product cost are added to finalize its selling price. This pricing technique is sometimes beneficial as it needs the least information, calculation is simple.
  • Demand based pricing: It is a type of pricing technique in which product cost is finalized based on demand of the product. It completely depends upon the demand of the product. If product demand is high then high price is set of the product and if demand of the product is less than lower price of the product is set to attract the customers.
  • Competition based pricing: It is a method in which competitors price is considered to set its own product price. Hotels may set higher, lower or equal price as compared to competitors according to the demand of the product.
  • Value pricing: In this hotel businesses try to set lower cost by giving high quality to achieve customers loyalty i.e. organization tries to become low cost producers of that product without compromising its quality.
  • Other pricing methods: Sometimes other pricing factors are to be considered such as service charges, maintainability charges or according to the tax or the service or values is to be offered to the customers. 

Assess The Factors Which Affect Revenue Generation And Profitability In Hospitality Operations

Factors affecting revenue generation and profitability are:

  • Choosing market: Most important factor to be considered is to choose where the hotel is based or the market where it will do its business. For example if the market in which the hotel is based consist of many top hotels then in those condition revenue of the hotel will be affected (Evans, 2015).
  • Average spending power: If the amount spend on the maintenance and buying is more than it will affect the revenue generation of the product.
  • Labour or workers intensity: If the amount spend on the labour or workers working in a hotel is much more than it will affect the revenue and profitability of the hotel (Chan and Hsu, 2016).

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From the above report few things has been summarised like demand based pricing methods had been taken into account, main factor which would affect the revenue generation and profitability in hospitality is choosing market, digital merchandising would be used to evaluate merchandising opportunities for Rosewood hotels and also different key stages in product and service development applier within a hospitality operation with reference to Rosewood hotels example had been explained above.

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