LEARNING MODULE

OPERATIONS MANAGEMENT IN TOURISM AND

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Authored by:

SHANE P. FORNIS, MSBA

HOW TO USE THIS MODULE:

Operations Management in Tourism and Hospitality Industry in one of the Major core subjects under the Program:
Bachelor of Science in Hospitality Management major in Cruise Ship Services offered by John B. Lacson Colleges Foundation
– Bacolod this academic year 2020-21. Furthermore this subject is designed to make students understand the foundation
and fundamentals of operations management in Tourism and Hospitality Industry
This module is a self-contained and self-sufficient unit of instruction for a learner to achieve the set of systematically
organized learning opportunities and well defined objectives per unit. There are units with compact detailed information
and some where the learner has to conduct further research through guided assessments to further his insights on the
given topics.
After completion of this module, students will be able t apply and understand the basic concepts and principles of
Production and Operations Management and to demonstrate the ability to apply learned knowledge. The students should
be able to demonstrate the understanding in Strategic Production and Operation Management in the Tourism and
Hospitality Industry.
 Outputs shall be submitted to the instructor/facilitator for checking, evaluation and recording. Outputs shall serve
as the learner’s proof for grading. You should always review the information sheets and be ready for duly scheduled unit
quizzes and periodic examinations
Should you need further assistance, do not hesitate to communicate your concerns to the class instructor.

To get the most from this module, you need to do the following:
• Begin by reading and understanding the Learning Outcomes and Performance standards. These will tell you what
you need to know and be able to do at the end of this module.
• Find out what you already know by taking the Pre-test then check your answer against the Answer key.
• Do the required learning activities
• Demonstrate what you learned by doing what the Activity/exercise directs you to do.
• You must be able to apply what you have learned in another activity or in real life situation
• Accomplish the scoring rubrics for you to know how well you have performed
• Submit your outputs to your instructor for checking, evaluation and recording, your outputs shall serve as the basis
for your grades.
• Each lessons are provided with references, definition of terms and url/links to videos and websites for additional
reference.

COURSE CODE AND TITLE:

BME 1- Operations Management in Tourism and Hospitality Industry

At the end of the course, students should be able to:

1. define Production Operation Management;

2. identify the 3 functional areas of organizations and describe how they interrelate;
3. identify similarities and differences between production and service operations;
4. describe the operations function and nature of the operation’s manager’s job.
5. learn the basic concept of designing goods and services;
6. discuss product life cycles and formulating strategies;
7. determining the immediate and ultimate marketing objectives of the product after thorough scrutiny;
8. discuss human resource management;
9. differentiate between marketing and operations management; and
10. understand the importance of information and communication technology management.
 Operations Management is the core of any successful business entities,
covering almost every other service industry that one can imagine. It is the basis of
good and proper management of People, Machines, and Funds in order for a
business to reach its full potential.

Tourism and Hospitality Industry is no exception to proper management,

Tourism and Hospitality business and related businesses should be managed well
considering the number of strong competitions within the industry, thus equipping
students and future managers with the basic knowledge and skills of proper
operations management is a must for every college and university offering
Hospitality Management courses.

The coverage of this module will mold, develop and improve your critical
thinking abilities, skills and understanding, on how to strategized, and run Tourism
and Hospitality businesses in the future. Without losing track the real essence of
running a business, which is to achieve organizational goals and objectives, having
a strong and competent manpower, and generating income.

COURSE OUTLINE: PRELIMS (MODULE 1)

UNIT 1: INTRODUCTION TO STRATEGIC PRODUCTION AND OPERTIONS

MANAGEMENT
TOPIC 1: Production Operation Management
TOPIC 2: 3 Functional areas of Organization
TOPIC 3: Production Operations vs Service Operations
TOPIC 4: The Operation’s Manager’s job.

UNIT 2: OPERATIONS STRATEGY IN THE GLOBAL ARENA

TOPIC 1: Aspects of Process Management
TOPIC 2: Key Aspects of Operations Management decision making
TOPIC 3: Historical Evolution of Process Management
TOPIC 4: Current Trends in Business Operations Management
 INTRODUCTION TO STRATEGIC
OPERATIONS AND PRODUCTION

LEARNING OUTCOMES:

At the end of this unit, you should be able to;

1. define the term Production Operation Management;
2. identify the three functional areas of organizations and describe how they interrelate;
3. identify similarities and differences between production and service operations; and
4. describe the operations function and the nature of the operations manager’s job

Production and Operations Management

Additional online discussion visit
https://youtu.be/_VJkKZFuRvE

• Is defined as the process which transforms the inputs/resources of an organization into final goods (or services)
through a set of defined, controlled and repeatable policies. The very essence of any business is to cater needs of
customer by providing services and goods, and in process create value for customers and solve their problems.
• Production and operations management talks about applying business organization and management concepts in
creation of goods and services.
• The term production denotes the process of converting or transforming resource materials, machines, employees and
time – into goods and services. Ex. Health care, financial transactions, food stuffs, hotel services, sales, etc.
• Operation on the other hand broadly describe the set of all activities associated with the production of goods and
services.

4 Areas of Production:
• Transportation – refers to the location of something or someone has changed
• Supply – means the ownership or possession of goods is changed
• Service – refers to the principal characteristics of which is the treatment or accommodation of those activities
of something or someone. Ex. Pizza Hut – basic tasks of cooking, preparing, and packaging are essentially -
PRODUCTION FUNCTION. Delivering pizzas involves transportation, supply and service, providing food for pick
up and dine in involves both supply and service.
• Production System is characterized by:
a. Material transformation process
b. Degree of repetitiveness
c. Information system superimposed on the physical system
d. Material process flow

Operations Management in Tourism and Hospitality Industry

• Refers to the work done in the different fields of hotel industry. Jobs in the hospitality industry, such as hotels,
restaurants, catering, resorts and casinos as well as other hospitality positions that deal with tourists generally, refers
to hospitality.
• Hospitality involves the relationship process between the hotel and a guest and the act of being hospitable, such as
guest reception and entertainment with friendliness, goodwill and liberality. Tourists who travel for recreation or
leisure purposes is related to tourist management. In recent years, tourism has become a popular global leisure
activity among worldwide customers.

Functional Areas of Organizations:

A. Finance: responsible for securing financial resources at favorable prices and allocating those resources throughout the
organization, as well as budgeting, analyzing investment proposals, and providing funds for operations.

Scope of Financial Management:

• Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current
assets are also a part of investment decisions called as working capital decisions.
• Financial decisions - They relate to the raising of finance from various resources which will depend upon decision
on type of source, period of financing, cost of financing and the returns thereby.
• Dividend decision - The finance manager has to take decision with regards to the net profit distribution. Net
profits are generally divided into two:
– Dividend for shareholders
- Dividend and the rate of it has to be decided.
– Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and
diversification plans of the enterprise.

Functions of Financial Management:

• Estimation of capital requirements: A finance manager has to make estimation with regards to capital
requirements of the company. This will depend upon expected costs and profits and future program and policies
of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise.

• Determination of capital composition: Once the estimation have been made, the capital structure have to be
decided. This involves short- term and long- term debt equity analysis. This will depend upon the proportion of
equity capital a company is possessing and additional funds which have to be raised from outside parties.

• Choice of sources of funds: For additional funds to be procured, a company has many choices like-
– Issue of shares and debentures
– Loans to be taken from banks and financial institutions
– Public deposits to be drawn like in form of bonds

• Investment of funds: The finance manager has to decide to allocate funds into profitable ventures so that there
is safety on investment and regular returns is possible

• Management of cash: Finance manager has to make decisions with regards to cash management. Cash is required
for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to
creditors, meeting current liabilities, maintainance of enough stock, purchase of raw materials, etc.
• Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to
exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting,
cost and profit control, etc.

B. Marketing: responsible for assessing consumer wants and needs, and selling and promoting the organizations goods
and services.
• In any business, a solid marketing strategy is critical to building a brand, attracting new customers and maintaining
loyalty. The hospitality industry is no different. Because customer loyalty is key, marketing managers and
executives devote a lot of time and resources to building brand awareness and creating ongoing, interconnected
campaigns

• These marketing efforts usually include both print and digital collateral that target former guests while also
attracting new clientele
 Strategies for Success in Tourism and Hospitality Marketing:

Research
• Customers choose hotels and other hospitality services for a variety of reasons. From location to facilities and
perks, companies have to be sure that they’re providing what buyers are looking for. The role of marketers is to
identify what factors make customers choose a particular hospitality service, and this requires extensive research.
By speaking to current and former guests, monitoring customer reviews on websites, reviewing industry data and
more, marketing professionals learn what makes a hospitality service stand out, as well as how it can be improved.

Awareness
• If potential customers don’t know about a service, they can’t purchase it. That’s where brand awareness comes
in. Marketers make sure information on hotels, resorts and restaurants is easy to find and up-to-date. They can
do this by buying ad space on relevant travel sites, creating an engaging website and collaborating with other,
noncompeting hospitality services in the same market.

• Promotion
Another smart strategy for attracting customers is to run promotions during certain times of the year, usually
when business is slower. Introducing incentives and offering incentives are just some of the ways that marketing
professionals achieve this. Have you purchased a Groupon for a spa weekend? That’s promotion at work.

• Relationships
To ensure high levels of repeat business, good customer relationships are vital. Not only do repeat customers
usually promote a service through word-of-mouth and social media, but they also create a stable revenue base.
One way to build relationships is through customer loyalty programs, which reward customers who regularly use
a particular hospitality service.

C. Operations: management of systems or processes that create goods and/or provide services.
• Operations management in tourism and hospitality businesses includes things like numerous pursuits, many of
which usually are center to the experience of guests and visitors’ impression. Inside traveling, vacation and food,
the word operations administration will be certainly not broadly utilized, while using the personal preference
getting intended for useful administration accountabilities within the name, considering that many companies
within the market run numerous solution and support operation

• The goal of operations management is to support and fulfill the strategic goals of the business while using the
least number of resources available without sacrificing efficiency or quality. By maximizing the efficiency of their
processes, Joey's company uses the least number of resources to complete a process and meets the needs of
customers and other external parties.

PRODUCTION OPERATIONS VS SERVICE OPERATIONS

WHAT IS PRODUCTION OPERATION:
• Managing the resources needed to produce goods and services is called Production/Operation Management
(P/OM) or simply Operations Management
• Production operations refer to the processes and activities involved in the production and delivery of goods and
services. It involves managing the entire production cycle, from raw material procurement to the delivery of
finished products to customers. Production operations include various functions such as planning, sourcing,
manufacturing, quality control, logistics, and customer service.
• The goal of production operations is to ensure that the production process is efficient, cost-effective, and meets
the quality and quantity standards set by the organization. This involves coordinating different departments and
stakeholders to ensure that the production process runs smoothly and meets the demand for the products or
services.
• Production operations management involves identifying the resources required for production, optimizing the use
of these resources, and minimizing waste and inefficiencies. It also involves managing the supply chain, ensuring
 that all components and materials are available when needed, and ensuring that products are delivered to
customers in a timely and efficient manner.
• Overall, production operations play a critical role in the success of any organization that produces goods or
services, as they are responsible for managing the entire production process and ensuring that products are
delivered to customers on time and to the desired quality standards.

WHAT IS SERVICE OPERATIONS:

• Service Operation refers to the delivery and management of services to internal and external customers. It
involves the day-to-day activities and processes that are necessary to provide high-quality services that meet the
needs and expectations of customers.
• The overall goal of Service Operation in business organizations is to ensure the delivery of high-quality services
that meet customer needs and expectations, while also maintaining the IT infrastructure and minimizing
disruptions to business operations. This helps to improve customer satisfaction, increase the availability and
reliability of services, and support the achievement of business objectives.

Frederick Taylor
• Father of scientific management – said the management is knowing exactly what you want men to do and them
seeing to it that they do it the best and cheapest way.
• Management is the accomplishment of desired objectives by establishing an environment favorable to
performance by people operating in organized groups

Functions of Management:
1. Planning and establishing goals and objectives – the process of establishing guidelines and actions should be
pursued and when they should be completed in order to meet the goals of the organization.
2. Organizing input resources and staffing – the process of bringing together all the resources necessary to complete
a task
3. Directing or motivating people to perform to attain those goals – the process of turning plans into realities.
4. Controlling the performance or comparing actual progress with planned performances – the process of monitoring
and evaluating performances and correcting any problems.

Production Operations Management:

• Production and operations management activities are not confined to the manufacturing of products.
• Production and operations management deals with supply side of the work of organizations, and marketing deals
with the demand side.

SERVICE OPERATIONS MANAGEMENT:

• Services operations management is related with delivering service to the customers, It involves understanding the
service needs of the target customers, managing the processes that deliver the services, ensuring objectives are
met, while also paying attention to the constant improvement of the services

Key Objective of Service Management:

• To synchronize and perform the activities and processes required to deliver and manage services at agreed levels
to business users and customers.
• Service operation is also responsible for on-going management of the technology that is used to deliver and
support services.

Other objectives of Service Management:

• Approachable stable services
• Robust end to end operational practices
• Business as usual - day to day
• Implementation of processes and services
• Responsive and operational validation
• Realising value
• Accomplishing service excellence

5 Types of Service Operation Process:

1. Request fulfilment:

• Request fulfilment is the process to deal with service requests via the Service Desk, using a process similar but
separate to that of incident management.
 • Request fulfilment records/tables are linked, where necessary, to the incident or problem records that initiated
the need for the request.
• Major aims of the request fulfilment process to provide a channel for users to request and receive standard
services for which a predefined approval qualification process exists, to give information to users and customers
about the availability of services and the procedure for obtaining them, to source and deliver the components of
requested standard services and help with general information, complaints or comments.
• It effectively decreases the bureaucracy involved in requesting and receiving access to existing or new services,
thereby reducing the cost of providing these services.

2. Incident management:

• Incident management is highly noticeable to companies and it is easier to demonstrate its value than in most
areas of service operation.
• Incident management is often one of the first processes to be implemented in service management projects.
• The major benefit of doing this is that incident management can be used to high spot other areas that need
attention, thus providing a reason for implementing processes. The purpose of incident management is to
reinstate normal service operation as quickly as possible and diminish the adverse impact of the Incident on
business operations, thus ensuring that the best possible levels of service quality and availability are maintained.

3. Problem management:

• This is vital for companies. Problem management comprises of the activities required to identify the root cause
of incidents and to determine the resolution to the problems.
• It is also responsible for ensuring that the resolution is implemented through the appropriate control
procedures.
• Effective problem management stops the recurrence of incidents and has benefits to the individual and the
organization as it improves availability and user productivity.
• Major aim of this service process is to lessen the adverse impact of incidents and problems on the business that
are caused by errors within the information technology infrastructure, and to prevent recurrence of incidents
related to these errors.

4. Access management:

• Access management is the procedure to grant authorized users the right to use a service, while preventing
access to non-authorised users. It is, therefore, the execution of policies and actions are defined in information
security and availability management.
• The objectives of access management are Protecting Confidentiality, Integrity and Availability (CIA), sometimes
knowing as Rights Management or Identity, Management, Security incidents and problems related to access
management is discreetly recorded.
• Access management ensures that users are given the right to use a service, but it does not ensure that this
access is available at all agreed times. This is provided by availability management.

5. Event management:

• In this process, effective service operation is dependent on knowing the status of the infrastructure and detecting
any deviation from normal or expected operation.
• The objectives of event management to provide the entry point for the execution of many service operation
processes and activities. Additionally,
• it provides a way of comparing actual performance and behaviour against design standards and Service Level
Agreements.
• Other aims include the ability to detect, interpret and initiate appropriate action for events, basis for operational
monitoring and control and the entry point for many service operation activities, offer operational information as
well as warnings and exceptions to aid automation and supports continual service improvement activities of
service assurance and reporting.
• Event management can be applied to any aspect of service management that needs to be controlled and which
can be automated such as configuration Items, environmental conditions, software licence monitoring for usage
to ensure optimum/legal licence utilisation and allocation, security and normal activity.
The Operations Manager’s Job:
Online Discussion: https://youtu.be/w8nSI9WEqPM

Production Manager

• Responsible for creating the end product in the market in the right quantity, of right quality, at the right time,
economically. To achieve this objective he must in4olve himself in product planning, process planning, production
planning and quality control.
• The scope of the job depends on the nature of the production system. Many companies are involved in several
types of production, adding to the complexity of the role. It's likely that you will be responsible for both human
and material resources.
• Also referred to as Operations Manager.

Basic Responsibilities of a Production Manager:

• plan and draw up a production schedule
• decide on and order the resources that are required and ensure stock levels remain adequate
• select equipment and take responsibility for its maintenance
• set the quality standards
• ensure that the production will be cost effective by estimating costs and negotiating and agreeing budgets with
both clients and managers
• monitor the production processes and adjust schedules as needed
• monitor productivity rates and product standards and implement quality control programmes
• organise the repair of any damaged equipment
• liaise with different departments, teams and companies, e.g. suppliers, managers, clients
• ensure that health and safety guidelines are followed at all times
• ensure customer orders are completed on time and to budget and that quality standards and targets are met
• work with managers to implement the company's policies and goals
• collate and analyse data, putting together production reports for both factory managers and customers
• supervise and motivate a team of workers
• review worker performance and identify training needs.

Other Responsibilities of Operations Manager:

• Human resource management – the people employed by an organisation either work directly to create a good or
service or provide support to those who do. People and the way they are managed are a key resource of all
organisations.
• Asset management – an organisation's buildings, facilities, equipment and stock are directly involved in or support
the operations function.
• Cost management – most of the costs of producing goods or services are directly related to the costs of acquiring
resources, transforming them or delivering them to customers. For many organisations in the private sector,
driving down costs through efficient operations management gives them a critical competitive edge. For
organisations in the not-for-profit sector, the ability to manage costs is no less important.

FOR ADDITIONAL ONLINE DISCUSSION, PLEASE CLICK THE LINK BELOW:

https://youtu.be/_VJkKZFuRvE (presentation, Introduction to Operations Management)

https://youtu.be/CFdkjseJHCs (presentation, Hospitality Operations Management prt 1)
https://youtu.be/JPpD4fLoTqA (presentation, Hospitality Operations Management prt 2)
https://youtu.be/K65GranKDeM (presentation, Hospitality Operations Management prt 3)
https://youtu.be/6ICgCOXfjrY (presentation, Hospitality Operations Management prt 4)
 OPERATIONS STRATEGY IN GLOBAL ARENA
LEARNING OBJECTIVES:

At the end of this unit, you should be able to;

1. Summarize the major aspects of process management in the global arena
2. Explain the key aspects of operations management decision-making
3. Describe the historical evolution of operations management

ASPECTS OF PROCESS MANAGEMENT

Additional Online discussion, visit
https://youtu.be/qpqQtJ7GW8k
Operations Strategy in the Global Arena:

There are many reasons why a domestic business operation will decide to change to some form of international
operation. These can be viewed as a continuum ranging from tangible reasons to intangible reasons.

Why Globalize:
A. Tangible Reasons:
- Reduce costs (labor, taxes, tariffs, etc)
- Improve supply chain
- Provide better goods and services
- Understand market
B. Intangible Reasons:
- Learn to improve operations
- Attract and retain global talent
- Cultural and ethical issues
Advantages for shifting-low skilled jobs to another country:
• Firm can reduce its costs
• Moving slower skilled jobs to a lower cost location frees higher cost workers form more valuable tasks
• Reducing wage costs allows savings to be invested in improved products and facilities at the home location.

Process Management:

• Process Management refers to aligning processes with an organization's strategic goals, designing and
implementing process architectures, establishing process measurement systems that align with organizational
goals, and educating and organizing managers so that they will manage processes effectively

4 Functions of Process Management:

1. Planning and Decision Making – – Determining Courses of Action,
2. Organizing – Coordinating Activities and Resources,
3. Leading – Managing, Motivating and Directing People,
4. Controlling – Monitoring and Evaluating activities.
KEY ASPECTS OF OPERATIONS MANAGEMENT

Operations Management:

• The term operations management encompasses planning, implementing, and supervising the production of
goods or services.
• The adjustments in the everyday operations have to support the company’s strategic goals, so they are
preceded by deep analysis and measurement of the current processes.
• Sometimes called production management, the field is cross-functional, tying in with other departments such as
sales, marketing, and finance. It’s involved in product or service creation, development, production, and
distribution. In effect, it connects dots along the value chain.

Aspects of Operations Management:

• Planning: Operations managers must constantly forecast, plan, and adjust to optimize processes based on
conditions.
• Process: Production of goods or services requires having strong, repeatable processes.
• Efficiency: Managers must troubleshoot bottlenecks, inadequate resources, and downtimes to create optimal
efficiency.
• Cost Control: Production is typically a major part of a company’s cost structure, and you must manage it wisely.
• Quality: Good quality control is necessary to maintain customer satisfaction and the company’s reputation.
Companies can greatly suffer without it.
• Continuous Improvement: To remain competitive, companies need to have processes in place to consistently
seek better ways of doing things.
• Technology: Underlying all of these foundations is technology. Well-used technology keeps a company ahead of
the curve.
• Profitability: Executed properly, all of the above foundations lead to a strong bottom line.

Importance of Operations Management:

• Operations management serves as the engine room of the organization, planning and driving manufacturing or
services.
• To compete in an ever-changing market, operations managers must maximize efficiency, productivity, and
profit, which have always been vital to a company’s survival.

Function and Roles in Operations Management:

• The field of operations management includes a diverse set of functions and roles, which can differ among
industries and different-sized companies
 • To carry out these tasks well, operations managers need to be organized, analytical, creative, resourceful,
versatile, and skilled in leading people. Now more than ever, they also need to be tech savvy in a rapidly
changing market.

Relationship of Operations Management to other Departments:

• This depends on the company’s size and industry. At startups or small companies, the operations person or
people will work hand in hand with sales, marketing, finance, IT, and other people.
• However, operations teams at large companies also need to work closely with other departments to be
effective.
- The work of operations, from planning to production to distribution, touches the work of most other
departments
- A company’s product or service is its lifeblood, and that’s what operations provides. Everything else in other
departments should, in a sense, support that.

Principles of Operations Management:

• Reality: There is no universal solution to the problems in your business.
• Organization: You must organize all aspects of production into a coherent whole.
• Fundamentals: Adhere to fundamentals, such as accurate inventory records.
• Accountability: People try harder when they’re held accountable.
• Variance: Variance is part of every process.
• Causality: Problems are often symptoms. Get to the root cause.
• Managed Passion: People with a passion for their jobs will drive your company.
• Humility: You don’t have to know everything.
• Success: Define success, and change with the market.
• Change: Every manufacturing solution is temporary.
• Team up with customers. Know what they buy and use.
• Engage in continual, rapid improvement.
• Maintain a unified purpose. Involve employees in strategy.
• Know the competition.
• Focus.
• Organize resources.
• Invest in HR.
• Maintain equipment.
• Use the simplest, best equipment.
• Minimize human error.
• Cut times. Shorten the product path to the customer.
• Cut setup.
• Pull the system. Improve the workflow and cut the waste by producing on demand.

HISTORICAL EVOLUTION OF OPERATIONS MANAGEMENT

• We can trace the origins of production management back to 5000 B.C. with the Sumerians, who tracked
inventories, transactions, and taxes. Later, the Romans used early operations management methods to plan and
build projects, such as the pyramids. Here are other historical highlights
• The Industrial Revolution (1760s to early 1800s) ushered in the foundations of division of labor and
interchangeable parts, keys to efficient production. Eli Whitney, inventor of the cotton gin, also manufactured
10,000 muskets by using the concept of interchangeable parts.
• In 1883, Frederick Winslow Taylor used the stopwatch method to time tasks for complex jobs. This became key
for studying efficiency and productivity.
• In about 1912, Frank and Lillian Gilbreth laid the foundation for predetermined motion time systems (PMTS),
which predict the time it takes to complete tasks.
• In 1913, Henry Ford’s first moving assembly line started rolling, cutting production time for a car from 12 hours
to less than three.
• In post-World War II Japan, Toyota developed just-in-time production (JIT), later called the Toyota Production
System. The company designed it to eliminate waste and increase productivity and quality.
• In 1971, FedEx started overnight package deliveries. Nowadays, Amazon even offers same-day delivery on
orders.
Current Trends in Operations Management:

Some of these have been around a while, but they remain popular trends in operations management:
1. Business process reengineering, or BPR, which helps companies revamp their organizations from the ground up
• With Business Process Reengineering, you can foster innovation and improve any selected measures
dramatically. If you want to do it well, focus on how you can add more value to the customer.
• It’s a radical approach to designing core processes: take everything that you used before, discard it, and then
start again from scratch.
2. Lean manufacturing, Six Sigma, and Agile are disciplines focused on efficient, adaptable production and continue
to be mainstay approaches
• Six Sigma approach uses a five-step method called DMAIC, an acronym of define, measure, analyze, improve
and control.
• It’s still among the trends of impact because it is a quality-improvement and cost-reducing method that focuses
on customer satisfaction
3. Reconfigurable manufacturing systems, designed for flexibility with sudden market changes
• Another possible method for reacting to quick changes in the market is RMS, a production system that can be
used with different functionalities within a product family. With an RMS, you can make adjustments in
production cost-effectively.
4. Behavioral operations management, which focuses on human behavior as it relates to operations management
• This trending research area studies the impact of human behavior, especially non-rational decision-making, on
the discipline. Because of its complexity, operations management is a field prone to frequent deviances in
problem-solving.
• There is a solid interest to understand the most important factors that influence manager’s decisions, as well as
to make efficient problem-solving methods more widely available.
5. Sustainability, or maintaining ecologically minded practices, under changing laws.
• Due to the ever constraining environmental regulations, businesses must operate under pressure to reduce their
harmful impact while still being able to grow.

Hospitality and Tourism Business Trends:

1. Local Experience
• Another trend that those in the hospitality industry are getting to grips with is the desire for tourists or
travellers to enjoy local experiences. Many people do not simply want to experience a life similar to their own,
but in a different location. Instead, they want to experience the authentic way of life in the location they visit.
• Hotels might provide local products, while other options like Airbnb and farmhouse accommodation can offer a
more authentic guest experience

2. Healthy and Organic Food & Drinks

• In the past, a substantial section of the hospitality industry was made up of fast food restaurants and bars selling
sugary alcoholic drinks. However, there has been something of a cultural shift, with people becoming more
aware of the things they are putting in their bodies, leading to a healthy food and drinks trend.
• For restaurants, this has meant re-vamping menus with healthier options, including gluten free, dairy free, low
fat, vegetarian, vegan and organic options
• However, the trend for healthy food and drinks extends to hotels, catering services and even holiday as well,
with healthier room service options, as well as healthier drinks sold behind bars.

3. Sustainability
See link: (https://youtu.be/eJ89At9Xxws)
• Increasingly, customers are concerned with environmental issues and want to know that the businesses they
deal with are behaving ethically. For this reason, sustainability has been one of the most noticeable hospitality
trends of recent times, with a growing number of hospitality businesses promoting their eco-friendliness.
• Examples of this range from restaurants promoting their vegetarian and vegan options, through to hotels that
make use of smart light bulbs and smart heating to save energy.
 • Within the accommodation sector, there are also decisions to be made about using more sustainable materials
for things like towels and bed sheets.

4. Personalisation
• Across almost all industries, the need for personalisation is a major trend, and the hospitality industry is no
different. This is primarily driven by the rise of big data. Meanwhile, a growing number of hotel guests want to
be treated as individuals, rather than just another anonymous customer.
• Personalisation can be deployed in a variety of ways. Within hotels, for instance, returning customers can be
automatically provided with similar services to last time they stayed, while they can also be personally greeted
by a member of staff upon arrival, using GPS technology and booking data. Furthermore, with the rise of smart
devices, hotel guests can also be enabled to use their own devices and accounts on entertainment platforms.

5. Smart Hotels
See link: https://youtu.be/-u-TYo2QKu0
• In simple terms, a smart hotel is a hotel that makes use of internet-enabled devices, which are capable of
sending data to one another. Smart hotel designs are tied in with the idea of the ‘Internet of Things’ and have
emerged as a more popular concept since smart speakers and smart hubs became popular consumer products.
• A smart hotel might, for example, allow guests to control the heating or air conditioning from their phone, or
turn on the TV by giving a voice command to a smart speaker.
• In many cases, smart rooms also automatically adjust things like the brightness of light bulbs, or the
temperature of a radiator, in order to maintain optimal conditions.

6. Artificial Intelligence
See link: https://youtu.be/Y84M_7AiJto
• Artificial intelligence plays a number of different roles within the hospitality industry, but the main one is to
improve customer service. One example of this is AI-powered chatbots, which can be used for online customer
interactions, removing lengthy waiting times and providing swift, intelligent responses to questions.
• However, there are additional uses for artificial intelligence technology too. For instance, some hotels have
introduced AI and voice controlled customer service or tourist information hubs within their hotels.
• Meanwhile, AI can also be used to sort through data, automatically make adjustments to processes, and so on.
7. Robots
See link: https://youtu.be/uKqUCe0TbcI
• One of the most exciting hospitality trends is the emergence of robots, which are defined as machines built to
carry out complex tasks, either autonomously or semi-autonomously.
• They are often equipped with artificial intelligence, and can help those operating in hospitality management by
generating speed, cost and accuracy improvements.
• Hilton, for example, introduced a robot concierge recently, which is able to respond to human speech and
answer questions. Some travel agencies have experimented with robots to pre-qualify customers as they wait to
speak to agent, while the Henn-na Hotel in Nagasaki, Japan is entirely robot-staffed.

8. Bleisure Travel by Millennials

• ‘Bleisure’ is the name given to trips which combine business travel with leisure activities, and it is increasingly
popular, especially among the millennial generation. As an example, a traveller may initially visit a location to
attend a business meeting or conference, but then extend their stay to turn it into a holiday.
• This is one of the most interesting hospitality trends for those in the industry to respond to,
as ‘Bleisure’ travellers are likely to want spontaneous services, excellent access to information and fast
communication. Mobile apps are one way to achieve this, while hotels need to try to remove as many barriers to
booking as possible.

9. Virtual Reality
See link: https://youtu.be/CLKvfaqTLEQ
• Over the past few years, virtual reality headsets have become mainstream consumer products, bringing virtual
reality technology into the mainstream.
• This is one of the most potentially game-changing hospitality trends, because VR technology has the capacity to
digitally alter a person’s entire surroundings.
• This can be applied in a number of interesting ways by those in the hospitality industry. Hotels might use VR
technology as part of their booking processes, allowing users to experience a highly realistic digital version of
their hotel rooms before booking. Meanwhile, travel agents can use virtual tours/ 360 videos of tourist
attractions to sell holidays.

10. Augmented Reality

See link: https://youtu.be/H_VxlcdP0Kk
• Finally, augmented reality technology is similar to virtual reality technology in many ways, but rather than
creating a new digital environment for users, it is concerned with enhancing real-world environments through
graphical or informational overlays.
• Unlike VR technology, it also usually requires nothing other than a smartphone and an app.
• Augmented reality apps can be designed so that users can point their phone at a restaurant and see reviews, or
opening times.
• Hotels and other accommodation types can also use augmented reality to provide interactive tourist
information maps within their properties, or to create fun opportunities to create user generated content