Hotel Industry and its Operational Challenges

Posted in Operations & IT Articles, Total Reads: 492 , Published on 08 June 2016

With growing competition in the hotel Industry, it is very important for Hotels to differentiate themselves in terms of service or facilities that they are providing to the customers. In current scenarios hotels are taking help of ecommerce to publish themselves in famous service provider like OYO, makemytrip. These ecommerce players not only help to increase customer base, but help them to grow their business.

Below are the few operational challenges in the Hotel industry that may decrease customer satisfaction, as customer satisfaction play very important role in the hotel industry.

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First operational challenge is Inventory management. These inventory consist of food items, stationary items etc. Restaurant business under hotel industry consists of not only seasonal items but also some of the off season variety which adds to the overall flavor and charm of the food being served. The major competitors in the hotel industry usually offer dining in two particular departments: Buffet and Ala carte. While the planning for buffet are generally well prepared in advance and is usually handled with calmness throughout, it is ala carte which usually imposes a lot of questions on planning. Ala carte order consist of Pizza, Burger or special dishes etc. Let’s us understand the pizza making process to help understand this issue on the pizza making process for an ala carte order. The order once it came into the kitchen through a kitchen ticket order needed a lot of resources as it was something which came impromptu and hence the preplanning was a bare minimum. The process starts with the making of dough (a special dough for pizza) and it involves in two resources at every point of time. The dough once prepared came under the supervision of head chef and under him all the subsequent steps were performed starting from preparation of raw vegetables, toppings etc. All these steps were performed sequentially and it shared equipment with the preparation of other pizza (part of buffet). Once all the preparation is done it went into the baking stove and garnishing and further presentation took some more time. All these steps added to the service time and due to sharing of resource and sequential steps it required a lot of time.



The second most challenges in the hotel industry is service time to serve to the customer. Lesser the service time greater will be the customer satisfaction and greater the service time lesser will be the customer satisfaction. Other reason which adds up to the service time was the state of the equipment and technology used in the hotel industry. Due to obsolete equipment and technology, it takes more time than usual to perform the required activity at an accepted level of hygiene and taste. Also obsoleteness requires frequent manual intervention and hence a lot of wastage in set up times. The starting work in progress for these kind of orders plays a crucial role in determining the overall service time and many a time these were intuitive based on the past experiences of the manager and chefs



Third challenge in the hotel industry is seasonality in the hotel industry. Seasonality in the hotel industry depends on many things like festivals, weather condition, holidays, tourist season etc. Sometime forecasting demand in the hotel industry is difficult and challenges arises in delivering food and room services to the customers. So, to meet up the excess demand, excess inventory is increased by the hotel industry. Which ends up in wastage and loss of resources and money.



Fourth important challenges in the hotel industry is retaining employees and workers in the hotel. Due to unsatisfaction in the work and less salary demotivates the employee to leave the work. Also, hotel industry runs on credibility on employees and workers. Satisfied employee and workers are able to server customer better. Working condition in the hotel industry plays a major role. In this environment, the physical or emotional conditions affect the development of product or service. The working conditions include proper space, noise, illumination, temperature and humidity and how employee work in the hotel.



Fifth challenges in the hotel industry is to implement technology to decrease throughput time. With the help of technology, quality of services can be improved and customer satisfaction could be increased. Usage of technology in the industry include cleaning service in the room, generate automatically kitchen ticket to order food and transfer it to the chef, automatic check-in and checkout system. Lot of manual work, sometime lead to error in the work and decrease process time and further decrease customer satisfaction. Also, most of the lower workers are not aware of the technology used in the hotel industry. So, to implement the technology proper training of the worker is required and proper environments should be created to server the customer better.


This article has been authored by Sharad Prakash from IIM Kashipur


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