Hospitality Operations Design

Designing operational processes, managing operations and quality improvement. An introduction into hotel revenue management (yield management) and a course in business statistics.

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  • Semester: fall and spring
  • Amount of ECTS: 12
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1) Service Concepts & Operations

Different hospitality companies care for different needs of their guests. Based on these needs, an offer is made: the service proposition.
Based on these propositions, a service marketing concept is created: a definition of core services to offer, and supplementary services to cater to the needs of specific target groups.

The actual delivery of these services requires careful design of the main processes of the company: operations management. This includes defining the main performance objectives for these processes and the lay out which these processes follow. Once this has been decided, management of the processes can be considered: which consequences does this have for the employees in the process, what are capacity requirements and how can demand for these processes be forecasted.
Once the company has designed its processes, it can continue to develop a quality management system; processes can be monitored and improvements can be made. Various strategies for process improvement and various tools to be used in improving processes will be discussed. Process improvement issues and forecasting will also be discussed.

The block Service Concepts and Operations will be examined by a written report and an individual exercise. PBL is an integrative part of this unit.


2) Revenue Management

A central issue in the management of hospitality organizations is the fact that capacity is usually constrained: a hotel has a fixed number of rooms, restaurants have more or less fixed numbers of tables. However, customer demand shows wide variations over time. The objective of managing hospitality operations is to obtain a maximum of revenue out of this fixed capacity.

The principles for achieving this revenue are covered under the heading revenue management: different guests have different needs, and are usually willing to pay different prices based on these needs. This means that hotels need to assign rooms to these guests, based on their willingness to pay. In high demand days, higher prices can be asked, on low demand days, discounts are acceptable. However, the job of assigning rooms to guests based on their potential worth, is complicated by the fact that different target groups have different booking patterns, and some guests might not show, even though they did reserve. A second complication is that different prices need to be communicated through different marketing channels. A third complication is that the market responds to variations in economic conditions, which in turn affect demand.

The principles of revenue management are taught in a series of lectures and workshops. To help in their understanding of market forces, lectures on basic concepts like markets, demand, supply, elasticity, competition and monopoly are equally provided to the students.

Examination is done by a test about the concepts of revenue management and the basic general economics content.

3) Business Statistics

More and more management decisions are based on data. The increase of the possibilities of ICT creates more opportunities to gather and process data. The main tool to work with these data is statistical analysis.
Statistics starts with describing data: calculating or plotting general patterns. Based on these patterns in the data, usually conclusions are desired about larger populations. The procedure used to draw these conclusions is a hypotheses test, and can be applied in different situations: comparing various groups, judging whether aspects are related and making predictions for future situations.

The quality of the conclusions from these analyses will depend largely on the quality of the data used. It is therefore needed to also consider the methods of data collection. Various methods to collect qualitative and quantitative data will be discussed.

Statistical analysis will be practiced by analyzing a series of small cases. To explore research methods, a research design will be created to help decide a management issue. Workshops and lectures will be offered to support work on the research design and the cases.

A short answer test will be the exam for the statistics part of the unit, research design is included in the module assignment.

Module learning outcome: Upon successful completion of this module, you should be able to analyse and design operational processes based on the service concept to achieve international industry quality standards.

Unit learning outcomes:

Unit 1. Service Concepts &n Operations (6 EC)

Interpret service marketing concepts and translate these into operations design and quality standards

Unit 2: Revenue Management (3 EC)

Understand the basic principles of revenue management and apply these in the room division of a small hotel.

Unit 3: Business Statistics (3 EC)

Apply basic data collection methods and statistical analysis techniques to support operational decisions. 


Module co-ordinator(s)

Phuong Dao, Bram Kleiweg

Number of credits

12 EC

Status of the module

Second Year module of the major program

Module Aims

The module offers future managers a set of concepts, theories and tools which can help them to understand and analyse their operations better.


Problem based learning, workshops , lectures, management game


Assignment, tests



Entry requirements

Good command of English and prior knowledge of the hospitality industry. Can describe the departments in a hotel and knows the idea of standard operating procedures. Basic knowledge of marketing and descriptive statistics