Contemporary Approach to Operations Management in Hotels

The existence and development of modern hotels is influenced by a plethora of internal and external factors. The companies need to adapt to the trends in order to elevate the quality of their services, processes, and staff. The processes of operational management in contemporary hotels are determined by the need for eliminating activities that do not add value for the customers, while introducing new concepts and operations for the purpose of establishing a learning-driven organization. Thus, the three modern principles of management theory and practice are being implemented: total quality management, learning organization, and business process reengineering.

The success of a hotel business is based on its overall structure, from the top management positions to the providers of the services, as well as their users. The manager transfers the knowledge, traditions and experience to his assistants and supervisors with the purpose of complete control of the business. The process of organizing, as part of the overall role of the manager, leads to successful division of labor between groups and individuals in the hotel, who coordinate their activities to achieve the objectives of the organization. The operations management departments in hotels are responsible for converting a set of resources into successful services. The inputs include human resources, equipment, technology, buildings, and information.

All management processes in the industry of hospitality are determined by the need to analyze the behavior of the consumers and realize what types of services they prefer during a certain periods of their lives, when and how they would like to use these services, and how they can be turned into loyal clients. There are two main reasons for the methodological approach towards customer behavior: realizing that the clients’ behavior patterns are influenced by economic and rational motives in the process of purchasing services, and meeting the challenges imposed by the dynamic development of the structure and scope of the consumer market.

The foundational principles of hotel businesses are the marketing, financial, and global policies of hospitality. All management operations are aimed at the market, with the purpose to focus on the needs of the guests and meet their requirements, as well as to keep the staff motivated. The profits are realized through proper application of the product, price, distribution, and promotion. The operations management is focused on the core operational activities of the business, which include daily operations and crisis management.

The contemporary approach to hospitality management does not ignore the historical development of the organization. The processes are implemented with the intention to adapt to previous practices and use them as foundation for growth.