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TOU9173M Hospitality Operations Management
Table of Contents
Section 1: Introduction
...............................................................................................................
3
Section 2- Outline intended project plan
....................................................................................
3
Section 3- Challenges in hotel operation
...................................................................................
5
Section 4- Recommendations
.....................................................................................................
8
Section 5-Conclusion
...............................................................................................................
10
References
................................................................................................................................
11
Section 1: Introduction
The Holiday Inn brand is an American hotel chain with its corporate office in Atlanta,
Georgia, owned by IHG Hotels & Resorts. The business was established by Clemmons
Wilson in 1952, and the initial facility was located in Memphis, Tennessee. The chain was a
Bass Brewery branch from 1988 to 2000. He was divided into six continents from 2000 to
2003. Among the hotels the business manages are Holiday Inn, Holiday Inn Express, Holiday
Inn Club Vacations, and Holiday Inn Resorts. More than 1,100 of his Holiday Inn hotels are
still open as of 2018. Holiday Inn has been active in the tourism sector since its inception and
has reaped several rewards from it. The business had a number of important restructurings
during its growth and joined the InterContinental Hotel Group (
Achmad and Yulianah, 2022).
In order to improve the ability of the services it provides and the rooms it gives its customers,
the corporation finally announced in 2007 a drastic revamp of its brand. About 15.2 million
people were worked in the hospitality sector in 2015. Every employee in this kind of
organization, from general managers and financial officers to department heads and
maintenance workers, has a clearly defined position. For day-to-day operations, hotels require
a structured organizational structure. All processes and procedures are influenced by this
framework. The organizational structure at Holiday Inn is hierarchical, with roles and
departments clearly defined. Each employee has a clear understanding of their roles and
assigned duties. The hotel's general manager, who frequently sits at the head of the chain of
command, is in charge of various departments. The blueprint or outline that the hotel
management develops to precisely define the duties and pursuits of each department and
establish order throughout the entire hotel is known as the hotel organizational design (
Aksoy
et al.,
2022). Establishing such a structure successfully boosts productivity and efficiency
since duties are delegated in a way that ensures employees are aware of what to accomplish
and who to contact in the event of a problem. On social media, reviews for Holiday Inn are
given four stars. Section 2- Outline intended project plan
The necessity to increase the hotel network in order to offer high-quality lodging services is a
key factor. Holiday Inn anticipates continued trust and productive cooperation with this organisation, which also plans the efficient administration of hotel amenities for the interested
individuals. Regarding the calibre of lodging services, the corporation in the UK establishes a
calibre of service provided at a 4-star level and works to uphold these calibres (
Ali, 2023). As
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the project's executor, the company works to forge trusting ties with other investors and generate a sizable clientele in order to successfully expand the hotel network. As a result, the business has reclaimed its place in the hospitality and construction sectors and established itself as a reputable and trustworthy hotel management organisation. Achieving a particular level of profit necessary for continued reinvestment and a fair return to stakeholders is one of the project's commercial objectives. In order to improve customer care tactics and ethical standards in supplier relations, the company must implement appropriate and effective promotional techniques. Service
Families, business travellers, and tourists are all catered to by Holiday Inn. Holiday Inn offers
a variety of services to its patrons, such as luxurious hotel rooms with first-rate extras like
restaurants and room service, swimming pools, fitness centres, and inviting lounges. The
special service that Holiday Inn offers is to be "America's Favourite Hotel." To that aim,
Holiday Inn has increased the amenities it offers business travellers, including meeting and
workspaces on-site (
Alonso et al., 2022). Additionally, Holiday Inn has created initiatives like
the Kids Eat and Stay Free programme and KidSuites suites at each of its resorts.
Core customer value
Customers at Holiday Inn can choose from a selection of cosy and functional rooms. Holiday
Inn offers flexible plans that make it simple for visitors to book rooms. Visitors can change or
cancel their reservations without incurring additional fees, and there are no cancellation
penalties. Additionally, Holiday Inn provides lodging that complies with regional health and
safety regulations. Holiday Inn offers twin rooms, standard rooms, deluxe rooms, duplex
suites, and deluxe suites as room types (
Ayachit and Chitta, 2022). These rooms are available
at Holiday Inn, which welcomes groups, families, and business travellers. Actual product
For visitors who make reservations via us, the Holiday Inn has top-notch amenities.
Swimming pools, restaurants, fitness centers, spas, saunas, gardens, tennis courts, golf
courses, room service, lounges, and libraries are just a few of the many amenities offered to
visitors throughout their stay. More guests stay at the hotel due of the amenities offered
because it is convenient to stay in a place with so many amenities. Be sure customers reserve
a hotel with top-notch amenities (
Buhalis et al.,
2022). By providing babysitting services at
its hotels and providing playgrounds, Holiday Inn furthers its commitment to serving families
with young children. The Holiday Inn has conference spaces that may be hired by hotel
guests for business travellers. A ballroom and another ballroom are available at the Holiday
Inn for occasions like weddings. Holiday Inn, which includes Holiday Inn Hotels & Suites,
Holiday Inn Resorts, Holiday Inn Club Vacations, Holiday Inn Garden Court, Holiday Inn
Express, etc., has its own unique qualities. There are numerous distinct brands. These listed
brands are distinct from one another(
Campos et al.,
2022). The Holiday Inn Hotel & Suites,
for instance, has all the features and services of a standard Holiday Inn with the exception
that it has suites and mixed-type rooms. The marketing of Holiday Inn Resorts will then focus
on areas where leisure tourism is popular. Family-friendly and only based in the United
States, Holiday Inn Club Vacations. Holiday Inn Garden Court is only offered in Europe and
South Africa. Accommodations are typically villas and suites that are crafted to match the
local culture.
Augmented product
The marketing for Holiday Inn Resorts will then concentrate on regions with a high demand
for leisure travel. Holiday Inn Club Vacations is a family-friendly company with only
American operations. Only Europe and South Africa offer the Holiday Inn Garden Court.
Villas and suites that are designed to blend in with the local culture are the most common
types of lodging. Section 3- Challenges in hotel operation
High turnover
Inadequate training and a high employee turnover rate affect the quality of the Holiday Inn's
services. One of the main reasons for employee turnover in the hospitality sector is excessive
stress at work. Even the coolest and most
composed personnel can become stressed out by
the onerous working conditions that are common in the hospitality sector (
Chambers and
Cifter, 2022). There is a significant turnover rate because not everyone is fit for such a
setting. Due of their high income and seasonality, hospitality businesses don't necessarily
provide many prospects for expansion. Holiday Inn must figure out a means to produce long-
term, devoted personnel ifHoliday Inn want to attract them. Every job should seem like it is
leading somewhere, according to employees. They desire more accountability rather than
merely a pay increase. The hotel sector has the highest turnover rate of any industry,
according to the Jobs and Turnover Report (JOLTS) from the Bureau of Labour Statistics
(BLS). The hospitality sector will experience a turnover rate of 86.3% in 2021, according to
current data. When turnover is large, it has a negative immediate effect loss of priceless
expertise and experience, morale for those left behind, and faith in the abilities and
effectiveness of the team (
Elkhwesky et al.,
2022). Companies can bear close to 30% of a
new employee's annual wage because to high turnover and the expense of hiring, educating,
and informing new staff. It is getting more and harder to be able to predict and satisfy
changing client expectations. A challenging aspect of providing a unique experience is that
more and more clients are using the Internet to research possibilities and make decisions. For
marketing strategies to be effective, they must be updated and modified. Costly and extremely time consuming
Costs related to facility upkeep and operation are included in hotel operating expenses. Both
fixed costs like rent, property tax, and insurance as well as variable costs like hourly pay,
utilities, and travel agency fees vary in the hotel industry. Similar to CPOR, Cost Per
Available Room (CostPAR) assesses the average cost of maintaining every room in a facility,
not simply the ones that are being used. While the quantity of available rooms can vary from
day to day depending on demand, occupancy levels can (
Horng et al.,
2022). The cost per
available night (CPAR) is derived by dividing the lodging department's overall cost by the
entire number of nights offered during a given period.
The simplest method for reducing labour costs is effective planning. Populations and inflows
and outflows ought to be tightly connected. For instance, you should take into account the
projected daily occupancy and the normal cleaning time for a room when organizing cleaning
crew. Asking staff to leave early or arrive late when the hotel is less busy than anticipated
might help a whole department save money. As flexible people take on work in different
areas, resources must be moved flexibly to where they are most required. For instance, at
some modest hotels, the front desk personnel is instructed in how to seat diners, deliver room
service, and clean rooms. Cross-training fosters teamwork, reduces the number of people
needed in the field, and helps staff members acquire new abilities.
Adaptation of technology's
More disruption is likely to affect the hotel sector than any other sector. The beginning and
continuous development of the digital age necessitate constant brand adaption for significant
hotel businesses (
Hsu and Tseng, 2022). Hotels must create agile, flexible, and agile hotel
organizations as guest demands and expectations continue to change.
Rapid technological advancement has also led to the creation of numerous formerly distinct
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solutions that are now convergent. This can be a challenging issue, and major hotel chains
frequently deal with their own technical difficulties. The majority of contemporary hotel
platforms provide a variety of fascinating features and chances. However, the hotel property
cannot really benefit from the new technology's enhanced capabilities without the ability to
interact with some of the hotel's old software. An advanced property management system is
the foundation of how hotels, especially big hotel chains, operate (
Jawabreh et al.,
2022).
Hoteliers are unable to use data to effectively improve the guest experience without the
ability to seamlessly link various modules and systems into the PMS in real time. Instead of
creating a single, comprehensive customer data holistic picture across all touchpoints, this
results in the construction of data silos (segmented groupings of data from the hotel's CRM,
CRS, POS, social media, etc.). results in This flaw in historical systems is well known, and
hotelier consolidation frequently required expensive or expensive improvements. The sheer
quantity of technology, data, digital marketing silos, and the requirement to collaborate with
several partners on guest acquisition and service initiatives have hoteliers feeling
overwhelmed. A normal hotel works with various providers that frequently don't
communicate with one another and don't even know one another. One for real estate websites,
one for CRM, one for SEO, one for SEM, one for online media, and so on(
Legrand et al.,
2022). IHG stated that it has a response strategy in place and was evaluating the incident's
nature, scope, and impact. The hotel stayed open in spite of the outage, according to the firm,
which has retained outside investigators to look into the event and is already alerting
regulators. In the context of increased geopolitical tensions following the invasion of the
United States, it occurs as suitable defences against cyberattacks, notably against Western
financial institutions, are under close inspection. Management of supply chain and inventory
Given that it touches on numerous aspects of the business process, using logistics in the
hospitality supply chain presents a number of difficulties. The quantity of variables to track
and regulate, inventory levels, the kinds of vendors needed, and revenue that is thought of as
complex variables all affect how complicated logistics and supply chain management
practises are. Orders are occasionally dispatched inconsistently (
Morosan and Bowen, 2022).
For instance, several businesses have used wave planning software where orders are allocated
waves and then picked at the same time in order to simplify order picking and lower shipping
costs. Wave planning solutions have increased picking effectiveness and workflow as a
whole. With an emphasis on how each step in the chain impacts the others, complexity is also
apparent in the relationships between inventory management, picking orders, and
warehousing. The lack of expertise among hospitality professionals in various logistics and
supply chain tasks is another factor contributing to the lack of use of logistics and supply
chain management in the hotel sector. The project, execution, and administration of cross-
functional logistics and supply chain solutions can be done by hotel managers (
Pholphirul et
al.,
2022). This can be done internally or in the areas of supplier relationship customisation,
production customization, and service customization. Supply chain management and logistics
are not used by hotel enterprises. This is because managers neglect important topics like lean
and green supply chain practises in favour of merely using their functional abilities for
inventory and procurement tasks (Fedele, undated). To comprehend the difficulties posed by
everyday issues, managers must work at an operational level and become subject matter
experts. There aren't enough qualified people in the hotel sector who have the managerial
abilities to plan initiatives involving both internal and external partners. Evaluation and
establishment of solutions, as well as the implementation of changes internally and among
supply chain partners, are crucial for hotel managers with experience in this complicated and
competitive industry. This guarantees effective initiative integration (
Shukla et al.,
2022).
Project management, communication, and problem-solving are additional crucial abilities.
The issues of technology selection, execution, and implementation through interactions with
numerous systems, including as purchasing, inventory, and warehousing, are not well
understood by managers since they lack technical aptitude. The fact that supply chain
management and logistics are only used as operational management tools in the hospitality
sector may be another factor contributing to their underutilization. Effective and efficient
supply chain management methods are still essential in sectors like the automobile,
manufacturing, and retail in today's dynamic business climate. However, the service sector
can also use the tactic. To assist hospitality organizations like Hilton and Starwood Hotels
manage and optimize their logistics and supply chains and cut costs, Holiday Inn streamline
logistics and supply chain strategies and operations in the purchasing area(
Wang et al.,
2022).
The logistics and supply chain practices can be expensive and time-consuming in the fast-
paced hospitality business. The dynamic nature of supply chain management and logistics
makes implementation difficult and fraught with issues.
Section 4- Recommendations
Holiday Inn is one of the businesses that could use some business improvement. As one of
the biggest hotel chains in the world, it's crucial to keep things moving in the travel and
hospitality sector. Addressing the issues by constant innovation
Continuous innovation is labor-intensive but worthwhile. The advantages of a continuous
improvement programme should be carefully considered before starting. Everyone involved
in the process will be more motivated to work hard and have a higher chance of finishing the
programme if they are aware of what they can accomplish. Continuous innovation requires
engaged employees, and as employee engagement increases, so does organisational
productivity. Numerous studies have revealed that monetarily, businesses with high employee
engagement outperform their less involved rivals(
Wang et al.,
2022). Employees are more
likely to confront issues head-on and come up with solutions that increase productivity at
work when there is constant innovation. When workers are certain that their efforts will be
welcomed, heard, and appreciated, they quickly transition from being spectators to
contributors.
Right pricing at the right time
By establishing the appropriate pricing at the appropriate moment, Holiday Inn can grow its
hotel business. Because increasing prices is essential for expanding your hotel business.
Holiday Inn, for instance, might set inventory rates to entice more visitors. As a
result,Holiday Inn should keep an eye on what your rivals are doing, what they are
advertising, and what the going rate for hotels is. Due to this, Holiday Inn must develop
adjustable pricing for its inventory based on the time of year, occupancy, and even the
number of guests in each room. Holiday Inn has faith in ability to deliver it.
Expansion of efforts towards sustainability
The Holiday Inn Express Hotel & Suites is dedicated to sustainability and understands the
value of socially conscious initiatives to save lives and save the environment. Because soap
saves lives, we've teamed up with Clean the World to recycle soap and toiletries from guest
rooms and provide them to kids and families all around the world to curb the spread of
preventable diseases (
Zhou et al.,
2022). Holiday Inn is dedicated to assisting others in
taking use of the plentiful resources Holiday Inn take for granted. Being environmentally
conscious is something Holiday Inn strived to do, and Holiday Inn Express Hotel & Suites
acknowledges this by working to make the world a cleaner, healthier place. The advantages
Holiday Inn have identified include IHG's strong brand equity, more than 1200 hotels
worldwide, the opening of new markets across all continents, and great brand recall and
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recognition as a result of excellent marketing. Over 100 million visitors every year show
consumer satisfaction thanks to a parent company that has a variety of hotel options. Holiday
Inn can see that Holiday Inn has the potential to expand its clientele, and Holiday Inn think
that effective planning will enable the hotel to work with additional global hotel brands.
IHG accumulates their promotion campaign Finally, IHG combines advertising strategies that include sponsorships, TV shows, promos,
and advertisements. Researcher could easily understand why Holiday Inn, one of IHG's
brands, continues to rank first in consumer perception based on the aforementioned
information. However, there are ups and downs in every business. As a result, Holiday Inn is
impacted by the COVID-19 pandemic and a shortage of customers. IHG should also think
about making enhancements like adding additional branches to Malaysia, stepping up
advertising, and coming up with sensible pricing plans.
Section 5-Conclusion
Last but not least, IHG employs the aforementioned marketing mix to make sure that its
brands endure in the marketplace. Since launching this service, Holiday Inn have provided a
range of accommodation types at varying price points. In conclusion, Holiday Inn is a hotel
that offers the greatest customer service, and its hotels have numerous appealing advantages
and unique characteristics that may entice more guests to stay there while on vacation.
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