Operations Management in the Hospitality Industry

1 Operations Management in the Hospitality IndustryThis page intentionally left blankOperations Management in the Hospitality IndustryEDITED BYPETER SZENDEO xford Brookes University, UKALEC N. DALTONH ospitality Leadership Academy, USAAndMICHELLE (MYONGJEE) YOOC alifornia State Polytechnic University Pomona, USAU nited Kingdom North America Japan India Malaysia ChinaEmerald Publishing LimitedHoward House, Wagon Lane, Bingley BD16 1WA, UKFirst edition 2021 Copyright 2021 Emerald Publishing LimitedReprints and permissions serviceContact: part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center.

2 Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters suitability and application and disclaims any warranties, express or implied, to their Library Cataloguing in Publication DataA catalogue record for this book is available from the British LibraryISBN: 978-1-83867-542-4 (Print)ISBN: 978-1-83867-541-7 (Online)ISBN: 978-1-83867-543-1 (Epub)ContentsList of Tables and Figures xiAbout the Editors xvAbout the Authors xviiPreface xxi1 Understanding Service Operations Strategy by Alec N.

3 Dalton and Michelle (Myongjee) Yoo 11. What Is Service ? Definition of Service Dimensions of Services The Service Package 72. Hospitality Decisions and Processes Service Concepting Service-profit Chain 93. The Strategic Service Vision Elements of the Strategic Service Vision 114. Operations Strategy for Hospitality Services Competitive Dimensions of Operations Strategies 152 Designing Service Experiences by Peter Szende and Alec N.

4 Dalton 231. Components of Guest Experiences Product Process People Physical Evidence Place Promotion Price 32vi Contents2. Designing Guest Experiences Analyzing the Experiential World of the Customer Building the Experiential Platform Designing the Brand Experience Structuring the Customer Interface Engaging in Continuous Innovation 353. Modeling and Visualizing Guest Experiences 353 Designing Service Environments by Vanja Bogicevic and Hyeyoon Choi 451.

5 Location Decisions Selecting a Location Site Selection Criteria 482. Data Requirements for Layout Decisions Capacity Planning 513. Facility Layout Space Allocation Strategies Process Flow Analysis 554. Additional Workflow Considerations Customer and Delivery Routes Americans with Disabilities Act and Ergonomics Planning for Expansion 605. Ambience Design Colors and Finishes Lighting Furniture, Fixtures, and Equipment 624 Forecasting Demand by Michelle (Myongjee) Yoo and Sybil Yang 711.

6 Hospitality Demand and Supply Characteristics of Hospitality Demand and Supply Managing Demand Managing Supply 742. Forecasting What Is Forecasting? Forecasting Factors Forecasting Methods Sample Business Analytics Tools for Forecasting 833. Yield Management What is Yield Management Basic Yield Management Math Yield Management Benefits Yield Management Applications 87 Contents vii5.

7 Inventory Control by Miguel Bendrao Baltazar and Yuan Li 951. Inventory Control and Space Optimization 962. Inventory Management and Planning Allocating Capacity Among Different Customer Groups Main Products and Ancillary (or Complementary) Products and Services Overbooking 1003. Management and Principles of Space Inventory Inventory-based Restrictions Strategic Pricing Strategic Capacity Inventory with Displacement Analysis Principles of Distribution Channels Management 1066 Managing Supply Chains by John Bancroft and Di Li 1171.

8 Hospitality Supply Chain Management overview of Hospitality Supply Chain Management Supply Chain Risk and Disruption 1192. Sourcing What Is Procurement and Sourcing Selecting Suppliers Managing Suppliers 1243. Managing Inventory The Role and Scope of Inventory Management Optimizing Inventory Management Alternative Methods for Managing Inventory 1337 Organizing Staff by Suzanne Markham Bagnera and Peter Szende 1431.

9 Labor Productivity Understanding Productivity Payroll Expenses Labor Hours 1462. Standards Service Standards Productivity and Economic Standards Labor Standards and Staffing Models Attrition 1493. Labor Strategies Lodging Labor Strategies Food and Beverage Labor Strategies 152viii Contents4. Effective Planning of Labor Scheduling The Fair Labor Standards Act (FLSA) Scheduling Flexible Schedule Techniques Lateral Service Managing Scheduling Challenges and Real-time Decision Making Labor investment 1568 Managing Capacity and Waits by Alec N.

10 Dalton and Andrew M. Daw 1671. Capacity and Constraints 1682. Queueing Fundamentals of Queueing Theory Common Mathematical Models for Queueing 1733. Psychology of Waiting 1774. Managing Queues Moderating Capacity Moderating Demand 1819 Measuring Quality by Michelle (Myongjee) Yoo and Alec N.