OPERATIONAL

MANAGEMENT IN TOURISM
AND HOSPITALITY INDUSTRY
ADRIAN G. MALIKSI
• Operational management in the tourism and hospitality industry
refers to the process of planning, organizing, and overseeing the
day-to-day activities and functions within hotels, restaurants,
travel agencies, resorts, and other businesses related to travel,
lodging, and entertainment.
• This discipline focuses on ensuring that the operational
aspects of a tourism and hospitality establishment run
efficiently and effectively to meet the needs and
expectations of guests or customers while maintaining
profitability.
KEY TERMINOLOGIES AND CONCEPTS

• Occupancy Rate: The percentage of available rooms or units that are

currently occupied by guests. It is a crucial metric for revenue
management.

• Average Daily Rate (ADR): The average price paid for a room or
accommodation unit in a given day. ADR is a key indicator of pricing
strategy.
• Revenue per Available Room (RevPAR): A performance metric that
calculates the revenue generated per available room. It's used to evaluate
the overall financial performance of a lodging establishment.

• Check-in and Check-out: The process of registering guests when they

arrive and confirming their departure when they leave. These are critical
operational processes.
• Front Office: The area of a hotel responsible for guest services, including
check-in, check-out, reservations, and concierge services.

• Back Office: The administrative and operational support functions of a

hotel, such as accounting, human resources, and purchasing.
• Housekeeping: The department responsible for cleaning and maintaining
guest rooms, public areas, and the overall cleanliness of the establishment.

• F&B (Food and Beverage): The department responsible for managing all
food and beverage services, including restaurants, bars, and room service.
• Concierge Services: Assistance provided to guests with various requests,
such as arranging transportation, booking tours, and providing local
information.

• Room Types: The different categories of accommodations available, such

as standard rooms, suites, and specialty rooms, each with its own price
point and amenities.
• Inventory Management: The process of controlling and optimizing the
availability and pricing of rooms and other resources to maximize revenue.

• Supply Chain Management: Managing the procurement and distribution

of goods and services needed for the operation, including food, linens, and
amenities.
• Yield Management: The practice of adjusting prices and availability to
maximize revenue, often used in the hospitality industry to respond to
changing demand.

• Overbooking: Accepting more reservations than the available capacity,

assuming that some guests will cancel or not show up. Managed carefully
to minimize the risk of overbooking.
• On-property Services: Services offered within the establishment, such as
spa services, fitness centers, and recreational activities.

• Point of Sale (POS) System: A computerized system used in restaurants

and bars to record sales and manage inventory.
• Hospitality Management Software: Technology tools and software used
for reservations, guest services, and property management.

• Guest Profile: A database containing information about individual guests,

their preferences, and history with the establishment. Used for
personalizing guest experiences.
• Upselling: The practice of encouraging guests to purchase additional
services or upgrades to enhance their experience and increase revenue.

• Guest Satisfaction: Measuring and ensuring that guests are content with
their experience, often through surveys and feedback mechanisms.