Module in Operations Management in Tourism and Hospitality Industry PDF

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####### Lesson 1: What is####### Operations####### Management?(6 Hours) Operations management is defined as the supervision of the procedures that generate or deliver goods and services. Decisions in operations management has a direct impact in the size, shape, quantity, quality, price, profitabilit...

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LEARNING OBJECTIVES: 1. Define operations management and identify its key features 2. Identify characteristics of the

tourism and hospitality sector that impact the management of operations 3. Describe examples of the operational features of the main sectors within tourism and hospitality industry

Lesson 1: What is Operations Management? (6 Hours)

Operations management is defined as the supervision of the procedures that generate or deliver goods and services. Decisions in operations management has a direct impact in the size, shape, quantity, quality, price, profitability, and speed of delivery of the output of tourism and hospitality establishments, regardless of the if it is in the luxury end of the market or a budget product or service. Operations management as a function has significantly changed due to the growing use of new technologies throughout tourism and hospitality industry. Total Quality Management (TQM) concept has also been taken on board as well as the attainment of quality standards for product and service benchmarks such as those of the International Organization for Standardization (ISO).

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OPERATIONS MANAGEMENT IN TOURISM AND HOSPITALITY INDUSTRY Operations management is also “concerned with the design and control of transformation systems to deliver the services, including products, of an organization at the right quality, at the right place and at the right time.” (Southern, 2000) The term right quality in the definition above is clearly intangible, particularly in the case of tourism and hospitality industry. Services which are intangible serves as the primary output that the industry offers to its consumers. Thus, defining quality in the tourism and hospitality industry is not that simple. The function of operations management in the industry of tourism and hospitality includes a wide range of activities. Majority of which are essential to the experience of guests and customers. Examples of Operation Functions in Tourism and Hospitality Industry: 1. Food production under the management of a Head Chef; 2. The dispatch function for an airline; 3. The check-in function at an airport; 4. Fast food restaurant production and service; 5. City bus tours organization for visitors; 6. Organization of guest transport arrangements from airport to accommodation; 7. Guest reception and queuing at the entrance to a theme park or other major attraction; and 8. Handling customer complaints at a major tourist venue.

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R EVIEW! (hospitality.net.org) Major Segments in the Hospitality Industry A. Food and Beverage -

Considered as the largest segment in the hospitality industry

-

Primarily engaged in preparing meals, snacks, and beverages for immediate consumption on and off the premises.

Examples: 1. Restaurants

2. Food Stands

Image Source: https://unsplash.com/photos/4hxEOapTQGU

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3. Cafeteria

Image Source: https://unsplash.com/photos/VZFHWCaVBqw

B. Travel and Tourism -

Offers services that are related to moving people from place to place

-

Encourage people to travel

Examples: 1. Travel Agencies

Image Source: https://www.google.com/search?q=travel+agency+philippines&tbm=isch&hl=en&chips=q:travel+agency+ philippines,g_1:office:uPMBqYeQCsU%3D&bih=589&biw=1163&hl=en&sa=X&ved=2ahUKEwjgzq6J9LrrA hVGw4sBHeQ_AlwQ4lYoAXoECAEQFw#imgrc=lMC9CpnoGMWp5M

2. Tour Operators

Image Source: https://southeastasiabackpacker.com/el-nido-island-hopping/

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3. Tour Guide

Image Source: http://parengtechy.blogspot.com/2013/05/philippines-hidden-paradise-dapitan.html

C. Lodging -

Offers accommodation for a period of time, or a place to stay for one or more nights.

Examples: 1. sssHotel

Image Source: https://www.manila-hotel.com.ph/lobby-lounge/

2. Hostel

Image Source: https://www.thebrokebackpacker.com/best-hostels-in-the-philippines/

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3. Motel

Image Source: https://www.pinterest.ph/pin/572097958908637162/

D. Recreation -

Involves any activity that people do for rest, relaxation, and enjoyment.

-

Provides activities to refresh a person’s body and mind is considered a recreation business.

Examples: 1. Theme Park

Image Source: https://www.dailymail.co.uk/news/peoplesdaily/article-3145973/Hello-Kitty-theme-parkChina-opens-doors-guests-aiming-shake-bad-reviews.html

2. Resorts

Image Source: philippines-049/

https://www.infobohol.com/linaw-beach-resort-panglao-bohol/linaw-resort-bohol-

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4. Casino

Image Source: https://asia.nikkei.com/Business/Macau-s-regional-challengers-up-their-casino-game2

WEEK 1. REVIEW QUESTIONS Name:___________________________

Course & Section: ___________

Answer the following questions. (5 points each) You can cite references; write your answers on the space provided. 1. In your own words, define operations management. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 2. What do you think is the difference between managing operations of a manufacturing company versus those of a company under tourism and hospitality industry? Explain your answer in no less than 5 Sentences. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 3. Aside from the given, write three (3) examples of operation functions in tourism and hospitality industry. a. _____________________________________________________ _______________________________________________ b. _____________________________________________________ _______________________________________________ c. _____________________________________________________ _______________________________________________ 7|Page

CHARACTERISTICS OF THE TOURISM AND HOSPITALITY INDUSTRY

Definition of Terms: Intangible – unable to be touched or grasped; not having physical presence Aggregate – a whole formed by combining several (typically disparate) elements. Heterogeneous - diverse in character or content. Unlike any other business industry, the tourism and hospitality industry offer a wide variety of services and products to its consumers. Therefore, managing its operations is unique and complex on its own. The

tourism

and

hospitality

industry

has

the

following

characteristics that significantly impacts the management of its operations. These are: 1. Intangibility Most likely, the products of businesses under the tourism and hospitality industry are services. As we all know, services are intangible products, even though it still has tangible, concrete elements. Intangibility has its own disadvantage. It cannot be transmitted or tested in advance. Aside from that, consumers will not be sure of what they are buying or what will they get, since most of the services offered are experiences. his is why those who are planning to contract the services of a tourism package will look for information about it in advance in order to reduce uncertainty to the maximum.

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2. Limited Lifespan As stated previously, majority of the products in hospitality industry are intangible, therefore cannot be stored. Thus, unless these products are used as planned, they are considered waste. “This affects hotel industry in such a way that we must choose between selling at the market’s pace and selling in advance (through agents). In fact, overbooking is a consequence of this limited life-span, an inherent feature of tourism services that we must try to counterbalance.” (Characteristics of the Hospitality Industry, 2018)

Overbooking happens when the number of reservations exceeds the number of available rooms for a certain period of time. You might ask, why does overbooking happen? It can easily be avoided by not accepting reservations once the rooms are full. This is because we have what we call “Guaranteed Reservations” the reservations that is already paid in advance, and “Non— guaranteed

Reservations”

which

aren’t

paid

yet.

Thus,

overbooking was usually done by the hotel to cover Nonguaranteed reservations, and that is one of the decisions an operation manager of a hotel is tasked to do.

3. Aggregability “A tourism product can be formed by aggregating various products, and this makes its commercialization and quality control more difficult. Prices can vary by eliminating or adding services to the

existing

pack,

creating

new,

customized,

products.”

(Characteristics of the Hospitality Industry, 2018)

For example, a travel agency can offer a tour package including various services with different prices.

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Illustration: Scenario: Baler Travel and Tours Tour Packages for 2021: Package A. Baler Tour package – Php2,999.00 Inclusions: Good for 2 Pax 3D2N Accommodation (Air Conditioned) Breakfast for Two for 3 Days Trike Tour around Baler Round trip Transportation (VAN) Package B. Baler Tour package – Php1,999.00 Inclusions: Good for 2 Pax 3D2N Accommodation (Air Conditioned) Trike Tour around Baler Round trip Transportation (VAN)

In the scenario, there are two (2) packages offered by the same company. These packages are considered the products of the company. As you can observe, the tour package is an aggregate of services that can be availed by consumer, it is composed of various services. Aside from that, Package A is more expensive than Package B. This is because package A covers more services than that of Package B.

4. Heterogeneity “As mentioned, aggregability implies a difficulty when it is about controlling all phases so that they are at the same level of excellence. A single mistake in any aspect affects the final product. Nevertheless, aggregability allows preparing custom-designed products, no matter how standardized they are initially. In this sense, we can talk about “heterogeneous standardization”. It is not 10 | P a g e

only the product what is being customized but a given trip will be different from

any

other

even

if

they

share

the

same

characteristics.” (Characteristics of the Hospitality Industry, 2018) Example: Accommodation: Two Hotels may have the same 2 (two) star ratings. However, Hotel B offers greater customer experience because it has more competent employees than that of Hotel A. But they do offer the same hotel standard of being a two (2) star hotels. Food and Beverages: A dish may have a standard recipe, but a Chef may have their own twist in making the dish more competitive than others.

5. Simultaneity of production and consumption “While other products are created, stored, purchased and then used, tourism products are purchased first and then produced and consumed simultaneously, at the same place and time. This implies that services cannot be separated from their providers and, therefore, consumers have to travel to the location of the product, not vice versa. For this reason, the human component in the provision of services is extremely important.” (Characteristics of the Hospitality Industry, 2018)

Unlike other tangible products, where outputs are being produced first before consuming. Hospitality products are being produced and consumed simultaneously. Example: A tour package will be produced and consumed at the same time. Client A purchased Baler Tour Package A (in previous illustration) on August 12, 2020. The tour will be on August 30, 2021. Thus, once he arrived at Baler on August 30, 2021, that will be the time wherein the services such as accommodation and trike tour be produced and consumed simultaneously. 11 | P a g e

MUST WATCH! Characteristics of Hospitality Industry https://www.youtube.com/watch?v=nSoImlKTP8o

After watching the video, please accomplish the activity on the next page. Note that you have both online and offline option of doing the activity.

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ACTIVITY Name:___________________________

Course & Section:_________

Based on the video, choose 1 characteristic of Hospitality Industry and make up a scenario that could have happen in any establishment under hospitality industry. You can draw, write a short dialogue or conversation, or even make a video. Be creative. **For videos, you can send it thru facebook, Raiza Kate Ico, or email it at [email protected]**

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WEEK 2. GUIDE QUESTIONS: Name:________________________________

Course & Section:_________

Try to comprehend the major characteristics of tourism and hospitality and answer the following question. Write your answers on the space provided. At least 2 sentences and no more than 5 sentences. 1. What do you think is the impact of each characteristics of Tourism and Hospitality industry to the following: a. Customer Experience b. Employees delivering services c. Operations Managers 1. Intangibility

a. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

b. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

c. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

2. Limited Lifespan

a. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

b. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

c. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

3. Aggregability

a. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

b. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

c. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

4. Heterogeneity

a. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

b. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

c. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

5. Simultaneity of production and consumption

a. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

b. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ______________________...