Operational Management Practices In Hotel Homework Answer

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Question :

Task 1: Research Paper (1000 words)

Your Task

You will choose three (3) best practices in operations strategy and practices from the global hotel industry and/or hospitality industry. Next, you should research recent industry and academic sources (within the last 5 years [) to locate evidence and examples of each best practice to then provide discussion of the implications for hotel sector.

While the scope is reflected by topics 1-3, you are expected to use journal articles (minimum of 6) to [PW3]  [KD4] support your statements.

Other information about this assessment

Your assignment will be a 1000 words document (referenced in text). This does not include appendix in word count. The submission will be structured as follows:

  1. Introduction (50 words) – Introduce the identified three best practices in operations and practices from the global hotel industry and/or hospitality industry and
  2. why you selected them. Best Practices (900 words) – should describe and explain the three best practices using a sub-heading for each issue clearly identifying relevance of that best practice to hotel industry and topics that cover week 1-3.
  3. Conclusion (50 words) – a brief conclusion to summarise contract between best practices for global hotel industry into the future.
  4. Reference List – a list of references – minimum 6 – (industry and academic).

Marking Criteria would be based on A1Structured Development of research paper (20%) Depth of research/ critical reflection (35%) Understanding of key ideas and concepts (35%) Evidence of support (10%).

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Answer :



The paper will discuss the operational strategies and their practices in the hotel industry. The selected practices for the hotel industry are Risk Management Principles, Contract Management, and Setting up PMO. Hence, to analyze the risks the identification of the risks, the principles of risk management, efficient models on risk management will be provided in the selected paper.

Risk Management Principles

The action that influences the strategy of an organization, the future planning, or the set of functions in both positive and negative ways, are considered as ‘Risk’. The principles of managing the risks are associated with the identification of occurrence and its frequency. The frequency of the occurrences gets recorded and analyzed the impact of the occurrences (Novia et al. 2020). The programs of Global Internal Audit and that of the Major risk Review are usually processed to address the risks associated with the operations of the hotels. The management of the factors including brand name and reputation, maintenance of business model are considered as important principles of risk management. On the other hand, ensuring the strategy development, meeting commercial targets, developing plans by the procedural changes are also known as risk management principles. For controlling and reducing the risks of a hotel business, the stages of developing a strategy to deliver proper service and customer satisfaction are of higher requirement so that it can impact the accomplishment of commercial targets and implement change for improvisation. 

Making recognition of the safety, health, and security of the hotels in incorporating risk management principles is highly required. This includes the crisis management process of the hotel and maintaining the standards associated with Global Brand safety. By incorporating a systematic approach in developing plans and implementing measures the reputation of the hotels can be managed skillfully. By incorporating risk management training to the employees, the factors of risks can be reduced (Coleman et al. 2018). The development of the holistic approaches of risk management is also one of the important measures of risk management principles. This gets associated with the assessment of strategic risk, identification, and consideration of measures with tactical risks and operational risk factors. The process of embedding risk management also includes accountability, internal development, strategic consideration related to the operations and goals of the specific organization (Kaul and Joslin, 2018).

Figure 1: Risk management principles

(Source: Choi and Mattila, 2021)

Contract Management

Contract Management is a written contract on agreement of the operation management limit and right, between the owner and that of the operator in complying with the right to manage the operations related to the hotel on behalf of the owner. The contractual bond specifically determines the remuneration of the operator for managing the hotel operations and also clearly shows the legal ownership evidence on the site of the hotel including its capacity regarding the equipment, inventories, and furnishings (Lee-Kelley and Turner, 2017). Based on the contract, the owner is responsible for all sorts of economic risks where the operator is responsible for the daily management of hotel operational factors. 

Hotel operations consist of three distinctive factors, including Owner-operator, Franchising agreement, and Management contract. In terms of the focus on short-term cash flow by operators, focus regarding the contract management lies in maximizing the brand value and attaining the longevity of the management contracts so that security and better contracts can be attained. Raising issues with hotel agencies in context to hotel management contracts have created a long-term issue for the operators (Echcharqy, 2020). Negotiation of a management contract is related to the imperatives of the operational management and ways of handling issues to overcome the situation. This includes the fee structures of the operators too, which are devised in three categories as a base fee, incentive-based fee, and a combination of base and the incentive fee.

The management contract is further associated with the owner-operator goal alignment and certain standards related to performance, which can also be resulted in termination if not met properly. This comprises the minimum performance level of the operators, and also the comprising effects of the economic cycle so that mutual satisfaction can emerge in the contract. The contracts might also be included with the consideration of stand-aside provisions in terms of achieving GOP as a structure of fee incentives.

Figure: Process cycle of Management Contract

(Source: Disemadi, 2019)

Setting up a PMO

The offices to execute more efficiency through better monitoring and efficient management through the establishment of management offices is known as PMO that is Project Management Office. This is a group in dealing with external and internal potentials of the company by setting specific values and ensuring the proper maintenance and standards of the company. These groups act as the keeper of best practices by delivering values and maintaining programs and projects by keeping the interest of the stakeholders (Bochkovskyi, 2020). The manifestation of organizational procedures, keeping a note on the practices, and directing the operation in the right way get ensured by the PMO. The PMO deals with the critical operations of enabling success to the organizations by providing tangible and long-term benefits to the organization. Setting up of PMO stages

Figure 3: Setting up of PMO stages

(Source: Norta et al. 2017)

It follows the agile structure and keeps organizations maintaining high-performance ability with data integration, strategic development supporting the balanced scorecard. The resource sharing, ways of implementing strategic direction, and adoption of appropriate tools get directed by the PMO and appropriate training on the actions are provided by PMO too. The PMO takes the role of monitoring and detecting guidance in different types including A supportive PMO,  a controlling PMO, and a Directive PMO. Based on the requirement of the organizations and activities or operations of the Hotels in specific situations, the strategic-Level PMO takes the role and delivers potential in making strategic directions. This further handles the risk of resource wastage and takes action following that with EPMO. 


To conclude the paper, the different operational practices of hotel operations including PMO, Risk management principles, and Contract management have been developed to show different roles they play in managing risks, developing strategies, and taking strategic actions. The best practices are applied to the hotel operational management process by considering the situational requirement and evaluating the probable impact of it.