Operations Management in Tourism and Hospitality

Assignment Brief

Operations Management in Tourism and Hospitality (OTHM/05/04-L5DTHM)

Qualification Number:  601/5661/2 

Credit Value: 20

Unit Reference Number : D/507/0026

Unit Aims :

This unit provides learners with an understanding of operations management within the tourism and hospitality industry and specifically the systems, processes, project and quality management skills associated with this function. Learners will develop the ability to apply operations management knowledge to the tourism and hospitality industries and an appreciation of the value of the operations function.

Learning Outcomes

Outline the origins of operations management from manufacturing to the service sector.

Assessment Criteria

Explain the development of operations and the ways in which effective operations management can benefit tourism and hospitality businesses.

• Outline the origins of operations management from manufacturing to the service sector.
• Explain how operations has become a managerial function in the tourism and hospitality industry
• Analyse the ways in which operations management can be used to create customer value and competitive advantage.

Explain the processes, systems and planning methods used in operations management

• Explain systems design and process design and relate this to tourism and hospitality.
• Evaluate the importance of ‘process’ and ‘product’ innovation as it applies to tourism and hospitality organisations
• Describe the role and processes of logistics and the supply chain in the context of tourism and hospitality

Discuss the principles of visitor and attractions management in the tourism industry

• Explain the concept of visitor management
• Discuss the role of visitor attractions in the tourism industry
• Analyse how effective systems of management and control can lead to competitive advantage for visitor attractions

Apply operations management methods to a range of organisations working within the tourism and hospitality industry.

• Explain the importance of the external environment in the context of operations management.
• Compare and contrast the operational activities of a range of organisations in the tourism and hospitality industry.
• Evaluate the existing and potential impacts of the virtual marketplace on the pattern of tourism and hospitality operational activities.

Study contents 

• The development of the operations management concept
• The evolution of the services sector
• Operations Management as a function of tourism and hospitality businesses
• The relationship between operations management and competitive advantage
• Principles of systems and process design
• Process and product innovation in the tourism and hospitality industries
• Logistics and supply chain management in tourism and hospitality
• The role of visitor attractions in the tourism industry
• Understanding the visitor experience
• The principles of visitor management
• Online operations management
• Operations Management and customer service
• Technology and operations management
• Regulations and Legislation affecting operations management in the tourism and hospitality industries
• Disaster planning and service recovery

Indicative Reading List

• Fyall, A., Garrod, B., Leask, A. & Wanhill, S. (eds.) (2008) Managing Visitor Attractions, Oxford: Butterworth-Heinemann
• Hudson, S & Hudson, L. (2012). Customer Services in Tourism and Hospitality, London: Goodfellow
• Mill, C. (2012) Resorts: Management and Operations, Oxford: John Wiley & Sons
• O’Fallon, M and Rutherford, D (2009) Hotel Management and Operations Oxford : John Wiley and Sons
• Roday, S, Biwal A and Vanada, J (2009) Tourism Operations and Management Oxford: OUP
• Outline the origins of operations management from manufacturing to the service sector.
• Operations Management in Tourism and Hospitality (OTHM/05/04-L5DTHM)

Sample Answer

Origins of Operations Management from Manufacturing to the Service Sector

Introduction

Operations management refers to the strategic planning, coordination, and oversight of processes that transform inputs such as labour, materials, and technology into outputs that meet customer requirements. Its historical roots lie firmly in manufacturing, where efficiency, productivity, and cost control were central concerns. Over the decades, these principles evolved and were adapted to the service sector, including tourism and hospitality, where customer experience, service quality, and flexibility have become equally important.

Origins in Manufacturing

The origins of operations management can be traced back to the Industrial Revolution in the late eighteenth and early nineteenth centuries. This period marked a shift from small-scale craft production to factory-based manufacturing, where large numbers of goods could be produced using mechanised systems. Managers began to develop systematic approaches to improve efficiency and productivity. In the early twentieth century, Frederick Taylor’s concept of Scientific Management introduced the use of time-and-motion studies, standardisation, and the division of labour to enhance operational efficiency.

The development of mass production, most famously implemented by Henry Ford through the moving assembly line, revolutionised manufacturing by enabling high-volume, low-cost production. In the mid-twentieth century, quality management emerged as a central aspect of operations, driven by figures such as W. Edwards Deming and Joseph Juran, who promoted quality control and continuous improvement to ensure that products consistently met customer expectations. These manufacturing advancements laid the foundation for the key principles of modern operations management.

Transition to the Service Sector

During the latter half of the twentieth century, many developed economies experienced a significant shift from manufacturing-led growth to a greater emphasis on the service sector. In tourism and hospitality, operations management adapted from the production of tangible goods to the delivery of intangible experiences. This transition required a reorientation from purely efficiency-driven processes to a model that also prioritised customer satisfaction and service quality.

While the efficiency-focused mindset of manufacturing remained relevant, service-based industries demanded new approaches to managing variability, personalisation, and direct customer interaction. Operations managers in hospitality began to adopt principles such as workflow optimisation and supply chain coordination, but tailored these to functions such as hotel housekeeping schedules, restaurant reservations, and guided tour operations. Unlike manufactured goods, services could not be stored for later use, and their quality could vary based on the individual providing them. This meant that staff training, customer service standards, and continuous feedback systems became central to operational success.

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