01
Introduction
to Operations
Management
BME-1
BME-1: Operations Management In Tourism and
Hospitality Industry
Definition of Operations Management 02
Characteristics of the Tourism and
OVERVIEW Hospitality Industry
Examples of the operational features of
the main sectors within the Tourism and
Hospitality Industry.
BME-1: Operations Management In
KEY TOPICS Tourism and Hospitality Industry
03
OPERATIONS
MANAGEMENT
WHAT IS OPERATIONS
MANAGEMENT?
Operations Management functions in travel,
tourism and hospitality include a wide range of
activities, many of which are core to the
experience of guests and visitors. BME-1: Operations Management In
Tourism and Hospitality Industry
DEFINITION 04
Operations Management is
about the management of
the processes that produce
or deliver goods and
service.
BME-1: Operations
Management In
Tourism and
Hospitality Industry
05
OPERATIONS
MANAGEMENT
HOW IT AFFECTS THE
BUSINESS
The size, shape, quantity, quality,
price, profitability, and speed of
delivery , whether at the luxury end
of the market or a budget product or
service
BME-1: Operations Management In
Tourism and Hospitality Industry
Operations Management as 07
a function has changed
significantly in recent years
as a result of the increasing
use of new technologies
throughout travel, tourism
and hospitality
It has also taken on board
new management concepts
such as TQM (Total Quality
Management) and the
attainment of quality
standards for product and
service benchmarks such
those of International
Organization for
Standardization (ISO).
BME-1: Operations Management In Tourism and Hospitality Industry
OPERATIONS MANAGEMENT IN
TOURISM AND HOSPITALITY 12
INDUSTRY
Operations management is also “concerned with the design and control of
transformation systems to deliver the services, including products, of an
organization at the right quality, at the right place and at the right time.”
(Southern, 2000)
OPERATIONS MANAGEMENT IN
TOURISM AND HOSPITALITY 12
INDUSTRY
The term right quality in the definition above is clearly intangible,
particularly in the case of tourism and hospitality industry.
Services which are intangible serves as the primary output that the industry
offers to its consumers. Thus, defining quality in the tourism and
hospitality industry is not that simple.
The function of operations management in the industry of
tourism and hospitality includes a wide range of activities. Majority of
which are essential to the experience of guests and customers.
EXAMPLES OF OPERATION
06
FUNCTIONS
IN TOURISM AND HOSPITALITY
• FOOD PRODUCTION • THE CHECK-IN • CITY BUS TOURS
UNDER THE FUNCTION AT AN ORGANIZATION FOR
MANAGEMENT OF A AIRPORT; VISITORS
HEAD CHEF; • ORGANIZATION OF
• FAST FOOD GUEST TRANSPORT
• THE DISPATCH RESTAURANT ARRANGEMENTS
FUNCTION FOR AN PRODUCTION AND FROM AIRPORT TO
ACCOMMODATION;
Pak Design Co. •
AIRLINE; SERVICE;
• GUEST RECEPTION • HANDLING
Jan. 2020
AND QUEUING AT THE CUSTOMER
ENTRANCE TO A COMPLAINTS AT A
THEME PARK OR MAJOR TOURIST
OTHER MAJOR VENUE.
ATTRACTION;
MAJOR SEGMENTS
09
IN THE HOSPITALITY INDUSTRY
Food & Beverage Travel & Tourism Lodging Recreation
15
A. FOOD AND
BEVERAGE
- Considered as the
largest segment in the
hospitality
industry
- Primarily engaged in
preparing meals,
snacks, and
beverages for
immediate consumption
on and off the
premises.
15
B. TRAVEL AND
TOURISM
- Offers services that
are related to moving
people from
place to place
- Encourage people to
travel
15
B. TRAVEL AND
TOURISM
- Offers services that
are related to moving
people from
place to place
- Encourage people to
travel
15
C. LODGING
- Offers accommodation
for a period of time, or a
place to stay for one or
more nights.
15
D. RECREATION
- Involves any activity
that people do for rest,
relaxation,
and enjoyment.
- Provides activities to
refresh a person’s body
and mind
is considered a
recreation business.
25
THANK YOU!
REFERENCES:
HOSPITALITY INDUSTRY
Cachon, G. & Terwiesch, C., (2017) Operations
BME-1: OPERATIONS
Management, Third Edition edn., 2 Penn Plaza, New
York, NY 10121: McGraw-Hill Education.
MANAGEMENT IN
TOURISM AND
Cage, W. (2018) Operations Management in Hospitality
Management Industry, New York, NY 10001, USA:
CHEF JGR. • DEC.
Larsen & Keller.
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