Prelims
Operations Management in the Hospitality Industry
ISBN: 978-1-83867-542-4, eISBN: 978-1-83867-541-7
Publication date: 10 June 2021
Citation
(2021), "Prelims", Szende, P., Dalton, A.N. and Yoo, M.(M). (Ed.) Operations Management in the Hospitality Industry, Emerald Publishing Limited, Leeds, pp. i-xxii. https://doi.org/10.1108/978-1-83867-541-720211013
Publisher
:Emerald Publishing Limited
Copyright © 2021 Emerald Publishing Limited
Half Title Page
Operations Management in the Hospitality Industry
Title Page
Operations Management in the Hospitality Industry
EDITED BY
PETER SZENDE
Oxford Brookes University, UK
ALEC N. DALTON
Hospitality Leadership Academy, USA
And
MICHELLE (MYONGJEE) YOO
California State Polytechnic University Pomona, USA
United Kingdom – North America – Japan – India – Malaysia – China
Copyright Page
Emerald Publishing Limited
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First edition 2021
Copyright © 2021 Emerald Publishing Limited
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ISBN: 978-1-83867-542-4 (Print)
ISBN: 978-1-83867-541-7 (Online)
ISBN: 978-1-83867-543-1 (Epub)
Contents
List of Tables and Figures | xi | |||
About the Editors | xv | |||
About the Authors | xvii | |||
Preface | xxi | |||
1 | Understanding Service Operations Strategy by Alec N. Dalton and Michelle (Myongjee) Yoo | 1 | ||
1. | What Is “Service”? | 3 | ||
1.1. | Definition of Service | 3 | ||
1.2. | Dimensions of Services | 3 | ||
1.3. | The Service Package | 7 | ||
2. | Hospitality Decisions and Processes | 8 | ||
2.1. | Service Concepting | 8 | ||
2.2. | Service-profit Chain | 9 | ||
3. | The Strategic Service Vision | 11 | ||
3.1. | Elements of the Strategic Service Vision | 11 | ||
4. | Operations Strategy for Hospitality Services | 13 | ||
4.1. | Competitive Dimensions of Operations Strategies | 15 | ||
2 | Designing Service Experiences by Peter Szende and Alec N. Dalton | 23 | ||
1. | Components of Guest Experiences | 24 | ||
1.1. | Product | 25 | ||
1.2. | Process | 27 | ||
1.3. | People | 29 | ||
1.4. | Physical Evidence | 30 | ||
1.5. | Place | 31 | ||
1.6. | Promotion | 32 | ||
1.7. | Price | 32 | ||
2. | Designing Guest Experiences | 33 | ||
2.1. | Analyzing the Experiential World of the Customer | 34 | ||
2.2. | Building the Experiential Platform | 34 | ||
2.3. | Designing the Brand Experience | 34 | ||
2.4. | Structuring the Customer Interface | 35 | ||
2.5. | Engaging in Continuous Innovation | 35 | ||
3. | Modeling and Visualizing Guest Experiences | 35 | ||
3 | Designing Service Environments by Vanja Bogicevic and Hyeyoon Choi | 45 | ||
1. | Location Decisions | 47 | ||
1.1. | Selecting a Location | 47 | ||
1.2. | Site Selection Criteria | 48 | ||
2. | Data Requirements for Layout Decisions | 50 | ||
2.1. | Capacity Planning | 51 | ||
3. | Facility Layout | 53 | ||
3.1. | Space Allocation Strategies | 53 | ||
3.2. | Process Flow Analysis | 55 | ||
4. | Additional Workflow Considerations | 58 | ||
4.1. | Customer and Delivery Routes | 58 | ||
4.2. | Americans with Disabilities Act and Ergonomics | 59 | ||
4.3. | Planning for Expansion | 60 | ||
5. | Ambience Design | 61 | ||
5.1. | Colors and Finishes | 61 | ||
5.2. | Lighting | 61 | ||
5.3. | Furniture, Fixtures, and Equipment | 62 | ||
4 | Forecasting Demand by Michelle (Myongjee) Yoo and Sybil Yang | 71 | ||
1. | Hospitality Demand and Supply | 73 | ||
1.1. | Characteristics of Hospitality Demand and Supply | 73 | ||
1.2. | Managing Demand | 74 | ||
1.3. | Managing Supply | 74 | ||
2. | Forecasting | 75 | ||
2.1. | What Is Forecasting? | 75 | ||
2.2. | Forecasting Factors | 76 | ||
2.3. | Forecasting Methods | 76 | ||
2.4. | Sample Business Analytics Tools for Forecasting | 83 | ||
3. | Yield Management | 85 | ||
3.1. | What is Yield Management | 85 | ||
3.2. | Basic Yield Management Math | 86 | ||
3.3. | Yield Management Benefits | 87 | ||
3.4. | Yield Management Applications | 87 | ||
5. | Inventory Control by Miguel Bendrao Baltazar and Yuan Li | 95 | ||
1. | Inventory Control and Space Optimization | 96 | ||
2. | Inventory Management and Planning | 98 | ||
2.1. | Allocating Capacity Among Different Customer Groups | 99 | ||
2.2. | Main Products and Ancillary (or Complementary) Products and Services | 99 | ||
2.3. | Overbooking | 100 | ||
3. | Management and Principles of Space Inventory | 102 | ||
3.1. | Inventory-based Restrictions | 102 | ||
3.2. | Strategic Pricing | 103 | ||
3.3. | Strategic Capacity Inventory with Displacement Analysis | 104 | ||
3.4. | Principles of Distribution Channels Management | 106 | ||
6 | Managing Supply Chains by John Bancroft and Di Li | 117 | ||
1. | Hospitality Supply Chain Management | 118 | ||
1.1. | Overview of Hospitality Supply Chain Management | 118 | ||
1.2. | Supply Chain Risk and Disruption | 119 | ||
2. | Sourcing | 120 | ||
2.1. | What Is Procurement and Sourcing | 120 | ||
2.2. | Selecting Suppliers | 122 | ||
2.3. | Managing Suppliers | 124 | ||
3. | Managing Inventory | 125 | ||
3.1. | The Role and Scope of Inventory Management | 125 | ||
3.2. | Optimizing Inventory Management | 127 | ||
3.3. | Alternative Methods for Managing Inventory | 133 | ||
7 | Organizing Staff by Suzanne Markham Bagnera and Peter Szende | 143 | ||
1. | Labor Productivity | 144 | ||
1.1. | Understanding Productivity | 144 | ||
1.2. | Payroll Expenses | 145 | ||
1.3. | Labor Hours | 146 | ||
2. | Standards | 146 | ||
2.1. | Service Standards | 146 | ||
2.2. | Productivity and Economic Standards | 147 | ||
2.3. | Labor Standards and Staffing Models | 148 | ||
2.4. | Attrition | 149 | ||
3. | Labor Strategies | 151 | ||
3.1. | Lodging Labor Strategies | 151 | ||
3.2. | Food and Beverage Labor Strategies | 152 | ||
4. | Effective Planning of Labor Scheduling | 153 | ||
4.1. | The Fair Labor Standards Act (FLSA) | 153 | ||
4.2. | Scheduling | 153 | ||
4.3. | Flexible Schedule Techniques | 154 | ||
4.4. | Lateral Service | 155 | ||
4.5. | Managing Scheduling Challenges and Real-time Decision Making | 156 | ||
4.6. | Labor investment | 156 | ||
8 | Managing Capacity and Waits by Alec N. Dalton and Andrew M. Daw | 167 | ||
1. | Capacity and Constraints | 168 | ||
2. | Queueing | 170 | ||
2.1. | Fundamentals of Queueing Theory | 170 | ||
2.2. | Common Mathematical Models for Queueing | 173 | ||
3. | Psychology of Waiting | 177 | ||
4. | Managing Queues | 178 | ||
4.1. | Moderating Capacity | 178 | ||
4.2. | Moderating Demand | 181 | ||
9 | Measuring Quality by Michelle (Myongjee) Yoo and Alec N. Dalton | 189 | ||
1. | Understanding Service Quality | 191 | ||
1.1. | Dimensions of Service Quality | 191 | ||
1.2. | Service Quality Gap Model | 191 | ||
2. | Quality Assurance for Measurement | 193 | ||
2.1. | Surveying | 194 | ||
2.2. | SERVQUAL | 194 | ||
2.3. | Customer Engagement | 196 | ||
2.4. | Net Promoter Score | 197 | ||
2.5. | Auditing, Inspecting, and Mystery Shopping | 197 | ||
2.6. | Alternative Tools and Methods | 198 | ||
3. | Quality Assurance for Management | 199 | ||
3.1. | Internal Accountability | 199 | ||
3.2. | External Accountability | 199 | ||
3.3. | Performance Improvement | 200 | ||
3.4. | Ideation and Innovation | 200 | ||
4. | Service Failures and Recovery | 200 | ||
4.1. | Causes of Guest Problems | 200 | ||
4.2. | Consequences of Guest Problems | 201 | ||
4.3. | Resolution of Guest Problems | 202 | ||
10 | Improving Effectiveness and Efficiency by Susan L. Hyde and Paul J. Bagdan | 211 | ||
1. | Total Quality Management | 212 | ||
2. | Lean Six Sigma | 213 | ||
2.1. | Lean | 213 | ||
2.2. | Six Sigma | 218 | ||
2.3. | Blending of Lean and Six Sigma | 220 | ||
2.4. | Statistical Process Control | 220 | ||
2.5. | Implementing Lean Six Sigma | 221 | ||
2.6. | Developing a Lean Six Sigma Toolbox | 222 | ||
2.7. | Applying Lean Six Sigma | 222 | ||
3. | Business Analytics | 230 | ||
4. | Change Theory and Management | 231 | ||
4.1. | Change Is Natural | 231 | ||
4.2. | Motivators and Hindrances of Change | 232 | ||
4.3. | Other Pitfalls to Change | 232 | ||
4.4. | Guidelines to Implement Change Management | 233 | ||
5. | Project Management | 233 | ||
5.1. | Five Processes of Project Management | 233 | ||
5.2. | Unique Aspects of Projects | 234 | ||
5.3. | Project Formation | 234 | ||
Index | 243 |
List of Tables and Figures
Chapter 1. Understanding Service Operations Strategy | ||
Fig. 1. | The Service Process Matrix. Source: Adapted from Schmenner (1986, p. 25). Copyright 1986 by the Sloan Management Review Association. | 4 |
Fig. 2. | The Service Nature Matrix. Source: Adapted from Katzan (2008, p. 19). Copyright 2008 by the Harry Katzan. | 5 |
Fig. 3. | The Service Delivery Matrix. Source: Adapted from Katzan (2008, p. 20). Copyright 2008 by the Harry Katzan. | 5 |
Fig. 4. | The Service Availability Matrix. Source: Adapted from Katzan (2008, p. 21). Copyright 2008 by the Harry Katzan. | 6 |
Fig. 5. | The Service Demand Matrix. Source: Adapted from Katzan (2008, p. 22). Copyright 2008 by the Harry Katzan. | 6 |
Fig. 6. | A Sample Service Concept for Starbucks. | 9 |
Fig. 7. | The Service-Profit Chain. | 10 |
Fig. 8. | The Strategic Service Vision for Starbucks. | 12 |
Chapter 2. Designing Service Experiences | ||
Table 1. | Examples of Moods and Outcomes. | 27 |
Table 2. | Mex-Tex Tortilla Shoppe Service Delivery Exercise. | 38 |
Table 3. | Stages and Common Fail Points of Dining Experiences. | 41 |
Fig. 1. | Forms of Experience Admission. Source: Adapted from Pine and Gilmore (2011, p. 102). | 33 |
Fig. 2. | Sample Service Blueprint for a Fast-Food Restaurant. | 37 |
Chapter 3. Designing Service Environments | ||
Table 1. | Space Allocation per Guestroom for Different Hotel Types. | 54 |
Table 2. | Space Allocation for Hotel Spaces for Different Hotel Types. | 55 |
Table 3. | “Build-Your-Own” Restaurant Process Times. | 56 |
Table 4. | Daily Flow of Resort Guests Between Outdoor Amenities. | 57 |
Table 5. | Guestroom Mix for Different Hotel Types. | 60 |
Table 6. | The Winds hotel breakfast buffet process times. | 63 |
Table 7. | Demand data and brand hotel standards for guestroom mix. | 64 |
Fig. 1. | Balancing Product-Oriented Layout. | 56 |
Fig. 2. | Planning Resort Amenities Using Operations Sequence Analysis. | 58 |
Fig. 3. | ADA Space Clearance. Source: Adapted from US Department of Justice (2010, September 15). | 59 |
Fig. 4. | Floor Plan of the Riviera’s Lobby. | 65 |
Chapter 4. Forecasting Demand | ||
Table 1. | Internal and External Factors for Forecasting. | 76 |
Table 2. | A Summary of Forecasting Models. | 77 |
Table 3. | Multiple Regression Result Example. | 78 |
Table 4. | Naive Approach Forecast Example. | 79 |
Table 5. | N-Period Moving Average Forecast Example. | 80 |
Table 6. | Weighted Moving Average Forecast Example. | 81 |
Table 7. | Exponential Smoothing Forecast Example. | 82 |
Table 8. | Hotel A Weighted Moving Average Forecast. | 88 |
Table 9. | Max Hotel Exponential Smoothing Forecast. | 89 |
Table 10. | Kensington Hotel Monthly Data. | 89 |
Table 11. | Kensington Hotel Regression. | 91 |
Fig. 1. | Demand Relative to Supply. | 73 |
Fig. 2. | Comparison of Time Series Forecasting Methods. | 82 |
Chapter 5. Inventory Control | ||
Table 1. | RevPATI Measures for Various Hospitality Industries. | 98 |
Table 2. | Ancillary Products and Services in Some Revenue Management Industries. | 100 |
Table 3. | Rate Fence Examples in the Hospitality Industry. | 104 |
Table 4. | Overall Booking for a 500-Room Hotel. | 109 |
Table 5. | Rooms Left to Sell for a 200-Room Hotel. | 109 |
Table 6. | Rooms Left to Sell for a 200-Room Hotel With Room-Type Overbooking. | 110 |
Fig. 1. | “Pickup,” Pace Report or Reservations Booking Cycle. | 97 |
Chapter 6. Managing Supply Chains | ||
Table 1. | Sample Evaluation Scoring and Weighting Model Using a Decision Matrix. | 123 |
Table 2. | Food Shop Inventories Information. | 132 |
Table 3. | Wine Selling Price and Sale Volume. | 135 |
Table 4. | Supplier Selection Tool. | 136 |
Table 5. | Information on Welcome Boxes. | 137 |
Fig. 1. | Fresh Produce Supply Chain. | 119 |
Fig. 2. | Pure Products Versus Pure Services. Source: Adapted from Slack, Brandon-Jones, and Johnston (2016). | 121 |
Fig. 3. | Inventory Profile. Source: Adapted from Slack and Brandon-Jones (2019). | 127 |
Fig. 4. | Comparison of Order Plans. Source: Adapted from Slack and Brandon-Jones (2019). | 128 |
Fig. 5. | Plot of EOQ. | 129 |
Fig. 6. | ABC Analysis Curve. | 131 |
Fig. 7. | ABC Analysis Curves Comparison. | 132 |
Fig. 8. | Development of ERP System. | 134 |
Chapter 7. Organizing Staff | ||
Table 1. | MPR Calculation Example. | 152 |
Table 2. | Room-Type Detail. | 158 |
Table 3. | Revenue Forecast. | 160 |
Table 4. | Four-Phase Reopening Plan Per Day. | 163 |
Fig. 1. | Sample Brand Hotel Productivity Standards for Rooms Division. | 147 |
Fig. 2. | Sample Brand Hotel Productivity Standards for Food and Beverage Division. | 148 |
Fig. 3. | Staffing Model at the Bistro. | 150 |
Fig. 4. | Partial Housekeeping Schedule for Bayles Royal Hotel. | 159 |
Fig. 5. | Hotel Labor Standard Sample. | 162 |
Chapter 8. Managing Capacity and Waits | ||
Fig. 1. | The Relationship Between Design, Effective, and Actual Capacity Levels. Source: Adapted from Greasley (2006, p. 239). | 169 |
Fig. 2. | Comparing Strategies for Capacity Management. | 180 |
Chapter 9. Measuring Quality | ||
Table 1. | SERVQUAL Questionnaire Items. | 195 |
Table 2. | CE11 Questionnaire Items. | 196 |
Table 3. | SERVQUAL Questionnaire Mean Scores. | 204 |
Table 4. | Different Types of Costs for a Casual Dining Restaurant. | 205 |
Fig. 1. | The Service Quality Gap Model. Source: Adapted from Parasuraman, Zeithaml, and Berry (1985, p. 44). | 192 |
Fig. 2. | Common Types of Service Failures. Source: Adapted from Chase and Stewart (1994, pp. 35–44, cited in Bordoloi, Fitzsimmons, & Fitzsimmons, 2018). | 201 |
Chapter 10. Improving Effectiveness and Efficiency | ||
Table 1. | The Seven Original Wastes of Lean. | 214 |
Fig. 1. | The 5S. Adapted from Hirano (1995). | 215 |
Fig. 2. | Sample Process Flowchart With Swim Lanes, Showing the Seating of Guests in a Restaurant. | 215 |
Fig. 3. | Sample Five Whys Analysis for Housekeeping Inventory Issues. | 216 |
Fig. 4. | Sample Cause-and-Effect Diagram Showing Causes of a Linen Shortage. | 217 |
Fig. 5. | The DMAIC Process. | 219 |
Fig. 6. | A SIPOC Example Involving Hotel Laundry Operations. | 219 |
Fig. 7. | Baseline Data of Housekeeping Scores From a Guest Satisfaction Survey. | 220 |
Fig. 8. | Decision Matrix Used to Determine an Optimal Choice Among Options. | 223 |
Fig. 9. | Typical Lean Six Sigma Project Types. Source: Adapted from five Lean Six Sigma project types (2018, March 23). Retrieved from https://goleansixsigma.com/5-lean-six-sigma-project-types/ | 223 |
Fig. 10. | A SIPOC Diagram Summarizing the Housekeeping Operation in the Case Study. | 224 |
Fig. 11. | Housekeeping Satisfaction Scores (From Guest Surveys), Averaged per Month per Room Attendant. | 225 |
Fig. 12. | Sorted Housekeeping Satisfaction Scores (From Guest Surveys), Averaged per Month per Room Attendant. | 225 |
Fig. 13. | Illustration of In-Control and Out-of-Control Guestroom Floors Based on Housekeeping Satisfaction Scores From a Guest Satisfaction Survey. | 226 |
Fig. 14. | An Ishikawa Diagram Depicting Issues Identified Within the Housekeeping Case. | 227 |
Fig. 15. | Initial Brainstorming Ideas Sourced for the Housekeeping Case. | 229 |
Fig. 16. | A Sample Prioritization Matrix, Which Can Help Sort Brainstorm Ideas. | 229 |
Fig. 17. | Revised Brainstorming Ideas Related to the Housekeeping Case. | 230 |
Fig. 18. | Basic Objectives of Business Analytics in the Hospitality Industry. | 231 |
Fig. 19. | A Graphical Overview of Business Analytics in Hospitality, With Examples of Possible Data Sources and Decision Applications. Source: Adapted from Kothari and Kothari (2017). | 232 |
Fig. 20. | Organizational Outcomes When Attempting Change With and Without Key Elements. Source: Adapted from Knoster (1991). | 234 |
Fig. 21. | The Plan, Do, Check, Act (PDCA) Cycle. | 235 |
About the Editors
Dr. Peter Szende has over 25 years of management experience in the hospitality industry. His European experience includes a variety of organizations such as Mövenpick, Hilton International, the InterContinental Group, and an independent Château hotel. For more than eight years, he was employed by Four Seasons Hotels & Resorts in North America.
He is currently a Programme Lead in Hospitality Management at Oxford Brookes Business School. He was formerly a Professor of the Practice in the School of Hospitality Administration at Boston University, where he also served as the Associate Dean for Academic Affairs. He has been awarded a Fulbright Scholar grant in 2014.
Alec N. Dalton, CRDE, CHIA, inspires operational excellence through service science. After operating five luxury hotels with companies including The Ritz-Carlton Hotel Company and Walt Disney Parks & Resorts, he now leads quality management programs for Marriott International’s global portfolio of nearly 7,500 hotels. He is also Co-Founder and Principal of the Hospitality Leadership Academy, a consultancy offering service-oriented management consulting. In addition to this textbook, he co-authored the first two international best sellers in the series Customer Experience. In 2018, Hotel Management Magazine named him to the “30 Under 30” list of rising hospitality executives. He graduated from Boston University with dual bachelor’s degrees from the Questrom School of Business and the School of Hospitality Administration.
Michelle (Myongjee) Yoo, PhD, is an Associate Professor at The Collins College of Hospitality Management in California State Polytechnic University Pomona (Cal Poly Pomona). Her area of specialty is Hospitality Marketing and teaches Hospitality Marketing Management, Hotel/Resorts Sales, Advertising, and Promotions, Social Media Marketing, and Revenue Management. Prior to her academic career, she worked in various marketing departments, such as Strategic Marketing, Direct Marketing, Database Marketing, and Loyalty Marketing as a marketing analyst at companies including The Ritz Carlton and The Venetian Resort Las Vegas. She received her PhD, MSc of Hospitality Management from UNLV.
About the Authors
Paul J. Bagdan, PhD, is a Full Professor at the College of Hospitality Management at Johnson & Wales University in Providence, RI. He has taught both undergraduate and graduate courses in strategy, operations, guest service, technology, and contemporary issues for over 20 years. He also teaches courses in the College of Business and in the College of Online Education, where he combines hospitality industry experience with higher education, research, and publication. He has authored numerous chapters, texts, and articles in the areas of hospitality management. He also consults and presents on these topics nationally and internationally.
Suzanne Markham Bagnera, PhD, is a Clinical Assistant Professor in the School of Hospitality at Boston University. Her doctorate is from Iowa State University and her MBA, BS, and AS from Johnson & Wales University. She is the co-author of the textbook, Human Resource Management in Hospitality Cases. Additionally, she has authored seven chapters in the new edition of the Hospitality and Tourism Management Program textbook by the American Hotel & Lodging Educational Institute. She is also the principal and managing director of Hospitality Leadership Academy, a consulting firm specializing in customer service and leadership training.
Miguel Bendrao Baltazar holds a master’s degree in management in hospitality from Cornell University School of Hotel Administration (USA). He brings 14 years of international hospitality management work experience, including general management positions. After his master’s, he became fully dedicated to hospitality higher education in Portugal, Switzerland, Spain, and Puerto Rico. He has 16 years of teaching, administrating, and advising experience in public and private prestigious international hospitality management schools. For 10 years, he has been a Lecturer at James Madison University Hart School of Hospitality, Sport, and Recreation Management Harrisonburg, where he teaches Revenue Management and Overview of the Hospitality Industry.
John Bancroft is a Senior Lecturer in Operations Management at Oxford Brookes University. He has previously held positions in WMG, University of Warwick as Senior Teaching Fellow in Supply Chain, and at Coventry University as a Lecturer. He teaches predominately in the fields of Supply Chain Management and Operations Management across both undergraduate and postgraduate levels. His research interests are in the fields of health-care operations management and sustainable supply chain management.
Vanja Bogicevic is a Clinical Assistant Professor of Hospitality Marketing at the NYUSPS Jonathan M. Tisch Center of Hospitality. She earned a PhD in Consumer Sciences from the Ohio State University, an MS in Hospitality Administration Management from the College of Hospitality & Tourism Leadership, University of South Florida, and an MArch in Architecture and Urban Planning from the University of Novi Sad, Serbia. Her research explores the role of design, service technologies, and virtual reality on consumer behavior in the hospitality, tourism, and travel industries. Her professional practice is in interior design, architectural visualization, and design consultancy.
Hyeyoon Choi, PhD, is an Associate Professor in the Restaurant, Hotel, and Tourism program at Ohio University. She received her doctoral degree in Hospitality Management from The Ohio State University. Her research has a customer-behavior orientation in the hospitality industry, including operations management and hospitality and tourism marketing. She has presented at numerous national and international conferences and received two best paper awards – TOSOK International Tourism Conference held in Korea, 2016, and ApacCHRIE Conference held in China, 2018. In addition, she has published in numerous journals, including International Journal of Hospitality Management and Journal of Service Management.
Andrew M. Daw is an Assistant Professor of Data Sciences and Operations in the Marshall School of Business at the University of Southern California. He studies the interactions within operations, and his research interests include service systems, stochastic models, and contagion processes. Prior to joining USC, he completed his PhD in the School of Operations Research and Information Engineering at Cornell University.
Susan L. Hyde is the Director of Quality Assurance and Performance at Crystal Cruises. She is responsible for developing quality processes and project management. Previously, she led a performance improvement team for The Ritz-Carlton and other Marriott International Luxury Brands across the United States: her team facilitated over 100 projects annually at six brands. They used quality sciences to elevate voice of the customer metrics. Prior to The Ritz-Carlton, she worked at Norwegian Cruise Line developing and managing the quality management systems and brand standards and achieving ISO 9001 certification. She earned a bachelor of science degree in hospitality from the University of Nevada Las Vegas and then an MBA from the University of Miami.
Di Li, PhD, is a Senior Teaching Fellow (Senior Lecturer) in International Business at WMG, the University of Warwick. Previously, she is a Lecturer in Supply Chain Management at Birmingham City University, as well as the course leader of MSc in Global Business Operations. She conducts research, teaching, and projects in the fields of supply chain and operations management, and international business. Her interested research dimensions include global supply network design (reshoring and offshoring, manufacturing locations), supply chain in industry 4.0, sustainability, supply chain resilience, reversed FDI, international operations strategy, decision making and optimization, etc.
Yuan Li is an Assistant Professor in Hospitality Management at the Hart School of Hospitality, Sport, and Recreation Management of James Madison University. She has a PhD degree in Business Administration from Virginia Tech and a master’s degree in Hospitality and Tourism Management from Purdue University. She has published research papers in several hospitality and tourism journals such as Tourism Management, International Journal of Hospitality Management, and Journal of Hospitality and Tourism Research. Her industry experience includes a front office manager and an assistant revenue manager role at a hotel and various other roles in the restaurant and golf industries.
Sybil Yang, PhD, is an Associate Professor and Director of the Innovation & Entrepreneurship Program for the Lam Family College of Business at San Francisco State University. She has served as an operations and revenue management consultant to organizations including Gaylord Hotels (now a part of Marriott International), Disneyland, and Harrah’s Resorts. Prior to her career in academia, she was an investment banker with Salomon Smith Barney, and a venture capital analyst for the firm Skipstone Ventures, LLC. She received her PhD, MBA, and Master of Hospitality Management from Cornell University and her bachelor’s in finance and accounting from the Haas School of Business at the University of California at Berkeley.
Preface
Welcome to the first edition of Operations Management in the Hospitality Industry. This introductory textbook provides students with fundamental techniques and tools for analyzing and improving operational capabilities within any hospitality organization.
Understanding hospitality operations is not easy. Services are intangible, highly variable, not transportable, and perishable. In addition, hotels, restaurants, and similar experiences involve more customer touchpoints and are significantly less productive than manufacturing sectors – and even other service industries like retail and professional services. As a result, hospitality operations often require specialized analytical frameworks and tools.
Traditionally, hospitality management programs have offered hotel and restaurant operations courses. These courses focus on industry-specific techniques for managing the service operations of a facility (i.e., how a hotel is organized, how to use a restaurant point-of-sale information systems, etc.) instead of incorporating concepts and tools for general operations management (i.e., how to assess and improve quality, how to procure supplies, etc.).
Intense competition in a fast-paced global hospitality scene requires organizations to determine the best, most efficient ways to improve services in terms of cost, quality, and innovation. As the COVID-19 crisis unfolded globally, hospitality organizations across the world additionally proved that risk and crisis readiness are necessary for business continuity and managerial success.
To address these challenges, we perceive that hospitality operations courses are gradually transitioning into – or being supplemented with – more traditional operations management courses, with embedded applications spanning hotels, restaurants, cruise lines, casinos, and other experiential services. We foresee that these courses will become increasingly critical in the curricula of academic hospitality management programs, as well as in operations management education programs that want to offer exploratory courses specific to this exciting industry.
Our book introduces some critical decision areas in which hospitality managers are involved, in chapters written by an assemblage of leading scholars and seasoned professionals – industry experts alike. Fundamental quantitative analytical tools are highlighted to support decision making, as are key theories and frameworks for managerial success. The wide range of pedagogical features will accommodate a variety of teaching and learning styles. Our streamlined approach focuses on key concepts in order to leave room for additional content, such as case studies, simulations, or other class activities. Further, each chapter of this textbook offers a self-contained view of a specific aspect of hospitality operations management, providing the greatest instructional flexibility.
We present this book and wish the reader – students, instructors, and industry practitioners alike – success with operations management in the hospitality industry.
Dr. Peter Szende
Alec N. Dalton, CRDE, CHIA
Dr. Michelle (Myongjee) Yoo
- Prelims
- 1. Understanding Service Operations Strategy
- 2. Designing Service Experiences
- 3. Designing Service Environments
- 4. Forecasting Demand
- 5. Inventory Control
- 6. Managing Supply Chains
- 7. Organizing Staff
- 8. Managing Capacity and Waits
- 9. Measuring Quality
- 10. Improving Effectiveness and Efficiency
- Index