Unit 12 HOSPITALITY OPERATIONS MANAGEMENT

Unit 12 HOSPITALITY OPERATIONS MANAGEMENT

Hospitality Operations Management H/601/1795


LO1 Understand the operational and economic characteristics of hospitality operations


Understand the operational and economic characteristics of hospitality operations Nature of hospitality products and services: product and service areas eg food and beverages, rooms division, conference and banqueting; tangible and intangible elements; perishability; marketing and sales; plant; equipment; supplies and commodities Patterns of demand: patterns eg opening hours, seasonality, time of day/week, sociological influences, healthy eating and drinking patterns, food and fashion trends, accommodation trends, cultural, regional and ethnic influences, pricing and economic factors, elasticity of demand Customer profile: characteristics eg spending power, types of hospitality business, menu/accommodation range, pricing considerations, expectations and requirements, the meal experience Management issues: issues eg integrated planning and resourcing, business and operational plans, staffing, finance, decision-making (gathering information and data, analysing and evaluating data, reaching decisions, forecasting), operating procedures and systems, control systems, technical and procedural standards, service standards, quality systems, team working and team leading, scheduling, training


1.1 analyse the nature of different hospitality product and service areas

 1.2 evaluate the different influences affecting patterns of demand within hospitality operations

 1.3 compare customer profiles and their differing expectations and requirements in respect of hospitality provision


1.4 analyse factors affecting average spending power in hospitality businesses





LO2 Understand product development within hospitality environments



Understand product development within hospitality environments Stages in product development: stages to include market research, market segmentation, idea evaluation, concept development, product development, advertising objectives eg persuade, create desire, create awareness, sell, increase market share, develop brand loyalty, customer awareness Opportunities and constraints: types eg brand image, nutrition and dietary requirements, disabled access and provision – accommodation facilities, restaurant access; availability of resources (human, financial, physical), standardisation, style of service, space utilisation Hospitality advertising: businesses eg pubs, restaurants, hotels, conference centres; products, types of media Merchandising objectives: objectives eg promote consumer/brand awareness, encourage consumer/brand loyalty, develop product image; support materials eg brochures, websites, posters, floor stands, tent cards, wall displays, table displays, menus, flyers, vouchers, promotions, clothing (tee-shirts, sweatshirts, baseball caps), free samples


2.1 evaluate the key stages in product and service development applied within a hospitality operation

 2.2 analyse the features which contribute towards the customers’ perception of products and services

2.3 assess the opportunities and constraints affecting product and service development within a hospitality environment

2.4 evaluate different merchandising opportunities for hospitality products and services




LO3 Understand pricing and profitability concepts within hospitality operations


Understand pricing and profitability concepts within hospitality operations Methods of pricing: methods eg cost-oriented, market-oriented; additional pricing considerations eg service charge, cover charge, minimum charge Factors affecting revenue generation: factors eg sales mix, customer turnover, average spending power (ASP) Factors affecting profitability: factors eg labour intensity, shelf-life, elasticity of demand, standardisation, portion-control



3.1 evaluate different methods of pricing taking into account additional pricing considerations

 3.2 assess the factors which affect revenue generation and profitability in hospitality operations 


LO4 Be able to use appraisal techniques to analyse and improve operational performance



Be able to use appraisal techniques to analyse and improve operational performance Approaches to appraisal: techniques eg fundamentals of appraisal, basis for effective operational appraisal, use of budgets, industry norms, information analysis, developing qualitative and quantitative data, analysing and evaluating data Appraising revenue, costs and profits: measures eg financial measurement techniques, price and volume data, interpreting calculations, price changes and inflation, comparing like-withlike and over time, identifying and measuring costs, apportioning costs, sales mix analysis, menu engineering, profitability measures, gross profit and gross profit percentages, net profit and operating profit, stakeholder interests Appraising the operation: measures eg appraising the product, appraising operational performance measurement techniques, levels of consideration, when and how, quantitative, qualitative evaluation, external comparisons, quality management Proposal for action: proposals eg forecasting future business requirements, levels of strategy, assessing organisational capability, strategic analysis and planning, implementation and managing change



4.1 apply different performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation

 4.2 determine the effectiveness of different quantitative and qualitative appraisal techniques and their application to hospitality operations

 4.3 apply approaches to business analysis, evaluation and planning appropriate to hospitality operations, making proposals for action

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