Managing Demand and Capacity in Hospitality Organizations
Name:
Institution:
Managing Demand and Capacity in Hospitality Organizations
In order to ensure that capacity is consistent with demand, hospitality firms can either increase the former or reduce the latter. As reducing demand goes against the profit optimization objective of any business venture managing capacity becomes the preferred option. It follows that the organization may involve the customer in the process of service delivery by packaging it as part of the experience. Self-service salad bars or vending machines may work as an efficient strategy to reduce the wait for orders. Similarly, automation of the check in and check out process is an alternative. Another effective tactic is cross training employees facilitating fluidity of operations (Crick & Spencer, 2011). An employee has skills for multiple roles hence can cover for colleagues following their absence of due to unforeseen circumstances. However, if the hospitality industry is in its high season or a particular event requiring extra attention, it may warrant hiring part-time employees. The organization can extend its service hours to cope with demand.
Regardless of the techniques
employed an organizations capacity inevitably reaches it limits warranting
employment of demand management strategies. The organization could utilize queuing
strategy. For the above to be effective the wait requires careful handling to
prevent customer dissatisfaction (Ford, Sturman, & Heaton, 2011). Engage
the customers in an activity or entertainment while they wait and ensure the said
wait is fair. The former entails sending employees to talk to customers whereas
the latter demands receptionist desist from taking calls in between clients
making the waiting interval equal. Similarly, giving the customers tags on
entry prevents unfair service owing to clients known to jump queues. In hotels,
overbooking when managed properly can help manage demand. The organization may
accept excess people to neutralize the waste of infrastructure caused by customers
who cancel at last minute. Nonetheless, caution is advised as it may translate
to a loss in reputation.
References
Crick, A. P., & Spencer, A. (2011). Hospitality quality: new directions and new challenges. International Journal of Contemporary Hospitality Management, 23(4), 463-478.
Ford, R., Sturman, M., & Heaton, C. (2011). Managing quality service in hospitality: How organizations achieve excellence in the guest experience. Cengage Learning.