Page |1

LET’S SEE WHAT YOU ALREADY KNOW

Before you proceed, let’s find out to what extent you have such knowledge
and skills. Have fun and enjoy this aperitif activity to spice up your module 1.

Activity 1- Crossword Puzzle

Directions: Below are clues for each word missing both across and down. Write
your answer on boxes.
1. 2. 7.

9.

5.

4.

3.

8.

6.

10

Across
1. Average cost per unit of output.
3. Expansion achieved through buying or merging with other businesses.
5. The maximum possible output that can be produced with the given resources.
6. High proportion of labor compared to capital.
8. A measure of how efficiently an organization converts inputs into outputs.
10. Refers to the work done in the different fields of tourism and hotel industry.
Down
2. All the stages in the production process from obtaining raw materials to selling to the
consumer- from point of origin to point of consumption.
4. The joining of two businesses to create a new organization.
7. Inspection of products to check they meet the necessary standards.
9. The method of anticipating future events or performance of a business based on a range of
factors, including product/service demand.

Well, how was it? Do you think you did well? Compare your answers with those in the Answer
Key on page 22.
Awesome! You may still study the module to review what you already know. Who knows, you might
learn more new things as well! You may go now to the next page to begin Lesson 1.
 Page |2

MODULE 1
THE KEY FEATURES OF OPERATIONS
MANAGEMENT IN TOURISM AND
HOSPITALITY BUSINESSES

LESSON I
Definition of Operations Management in
Tourism and Hospitality
INTENDED LEARNING OUTCOMES

After studying this module 1, you are expected to:

 interpret the definition of operations management

 comprehend the definition of operations management
 define operations management through concept mapping.

INTRODUCTION

Operations Management in Tourism and Hospitality Industry is the daily

management of the establishment. It is about the proper use of the attraction's
resources, particularly the staff, natural resources, and physical equipment
such as machinery, to provide a satisfactory service for the customer and an
acceptable rate of return on the use of these resources.

The goal of operations management at attractions is the smooth and

efficient operation of the site. … In a sense it could be said that everyone on
site is involved in operations management as, in a service activity, everyone is
 Page |3

part of the operation. Furthermore, the activities of financial, human resources,

and marketing managers also affect how the site operates (Swarbrooke, 2002).

LET’S TRY THIS

Activity1- Do your Dictionary

Directions: To spice up your excitements below is an aperitif activity called the Do

your Dictionary grid. At home you are doing daily activities from the time you woke up,
prepare your breakfast, do the daily house chores, going to market, prepare dinner
until you sleep. In your understanding what is operations management? You don’t
need to Google it or use Dictionary. Be honest with your answer. Write your answer
on-grid and spaces provided.

Term Definition

Operations Management

Directions: Write a brief answer to each question.

A. Does this definition have a difference if you are going to relate this to tourism
and Hospitality? If yes, How? Give example, If no, Why? Please justify your
answer?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________

B. Do you think the daily house chores are considered as operations

management? Why? Support your answer.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________

Well, how was it? Do you think you did well? Compare your answers with those in
the Answer Key on page 23.
 Page |4

LET’S CONNECT…

Directions: Write a brief answer to each question.

Based on your activity what did you understand about the meaning of operations
management?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

Does the meaning have the same statement or description of nature, scope, or
meaning of operations management in the tourism and hospitality industry?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

Can you translate these definitions into an analysis of the key operational features of
tourism and hospitality businesses? If yes, How? Give example, If no, Why?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

Does the term use to have a difference to other operations management? Write your
answer on your answer sheet.
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
 Page |5

Operations management in tourism and hospitality refers to the work done in

the different fields of tourism and the hotel industry. Hospitality involves the
harmonious relationship process between the establishment and a guest and the act
of being hospitable, such as guest reception and entertainment with friendliness,
goodwill, and liberality. It also involves creating various strategic and tactical decisions.
Below are some important operations management decisions and related significant
terminology:

Operations management (OM) is the business function that refers to the

transformation process of converting raw materials into finished goods and services;
OM used to be called production and operations management (P&OM) or just
production. As the field evolved from being primarily tactical (e.g., making inventory
and scheduling decisions on the manufacturing floor) to being strategic (today there
are many CEOs from the OM field), the term moved to focus on the broad notion of
operations rather than mere production.

REMEMBER:

Operations management as a function has changed significantly in recent years

as a result of the increasing use of new technologies throughout tourism and
hospitality. It has also taken on board new management concepts such as Total
Quality Management (TQM) and the attainment of quality standards for product and
service benchmarks such as those of the International Organisation for
Standardisation (ISO).
 Page |6

LET’S SEE WHAT YOU HAVE LEARNED

Manager’s time

Application-Concept Map Definition

Directions: Let’s define Operations Management in Tourism and Hospitality Industry
as a whole, make your Concept Definition Map. Below is an example of the Concept
Map Definition model. Write your answer on your answer sheet.

What is it? What is it like?

Well, how was it? Do you think you did well? Compare your answers with those in
the Answer Key on page 24.
 Page |7

MODULE 1
THE KEY FEATURES OF OPERATIONS
MANAGEMENT IN TOURISM AND
HOSPITALITY BUSINESSES

LESSON II
Characteristics of the Tourism and Hospitality
Sector that Impact on the Management of
Operations

INTENDED LEARNING OUTCOMES

After studying this module 1, you are expected to:

 identify the characteristics and various categories within the tourism and
 compare the differences of characteristics of the tourism and hospitality
sectors.
 explain the importance of various categories within the tourism and hospitality
industry.
 describe the impact/s of these characteristics to the different sectors of
operations management
 discuss the benefits of these characteristics of the Tourism and Hospitality
industry.

INTRODUCTION

Operations management functions in tourism and hospitality include a wide range of activities,
many of which are core to the experience of guests and visitors. In tourism and hospitality, the term
operations management is not widely employed, with the preference being for functional management
responsibilities in the title, given that most businesses in the sector operate a wide range of product and
service operations.
 Page |8

Examples of operations functions in tourism and hospitality include:

 Food production under the management of a Head Chef;

 The dispatch function for an airline;
 The check-in function at an airport;
 Fast food restaurant production and service;
 City bus tours organization for visitors;
 The organization of guest transport arrangements from the airport to
accommodation;
 Guest reception and queuing at the entrance to a theme park or other major
attraction, and
 Handling customer complaints at a major tourist venue.

LET’S TRY THIS

Activity I- Level I Picture Quiz

The activity is called Picture Quiz it is the same with your Logo quiz game the
pictures below is your hint to identify the correct word/s that summarizes the various
category within the Tourism and Hospitality industry. All you need to do is first,
recognize the pictures from your left side and write your answer on your answer sheet.

1. ________________________________

The category where Hotels & Motels,

Resorts, Campgrounds/Cabins, AirBnB/
Home Away and Timeshare belongs.

2. ________________________________

The category where Gaming, Theme

Parks, Adventure and Outdoor Recreation
belongs.
 Page |9

3. _________________________________

The category where Travel Agents,

Airlines, Cruise Ships, Rail/Bus, Car
belongs.

4. _________________________________

The category where Ecotourism,

Restaurants, and Catering belongs.

5. _________________________________

The category where Meetings,

Expositions, Social, and Special Events
belongs.

6. _________________________________

The category where Private Country

Clubs belong.
 P a g e | 10

Activity I- Level II Picture Quiz Two Pics, Two situations One-word Quiz

The activity is called Two Pics, Two situations One-word Quiz it is the same
with your Logo quiz game, the pictures and statements shown is your hint to identify
the correct word/s that describes the characteristics of tourism and hospitality. All you
need to do is first, recognize the pictures and statements given and write your answer
on your answer sheet.

This refers to not

being able to
forward inventory to
the next day.
A 100 room hotel that sells only
60 rooms on a particular night
cannot do the inventory and
sell the 140 rooms the following
1.
night.

Products of the tourism industry

always differ. Even the same hotel
room in the same week with the
same weather can be perceived
differently due to the mode of the
chef.

A fried chicken commercial

on television is so juicy and
big, however, after your
2.
order and delivered to your
house it is too dry and small.
 P a g e | 11

Services cannot be
seen, tasted, felt,
heard, or smelled
before they are
purchased

A night in a hotel, a day

in a ski-resort, the calm
flight with the nice
attendant, and the
smiling tour-guide taking
you to the peak of an
alpine mountain – all this
3.
cannot be touched.

Service cannot be
separated from the
service providers.

You cannot take the

hotel room home –
only the small bottles
of shampoo and
4.
toothpaste.

Well, how was it? Do you think you did well? Compare your answers with those in
the Answer Key on page 25.
 P a g e | 12

LET’S CONNECT…

In your previous activities, you recognize the key operational

features of the main sub-sectors in tourism and hospitality across a
range of sub-sectors including hotels, restaurants, retail outlets, airlines,
travel agents, tour operators, and theme parks and their characteristics.
Compare the eight (8) characteristics of the Tourism industry and Hospitality industry
which make it necessary and exciting for companies when planning a marketing/social
media strategy. Give their similarity/differences using the Grid below?

Tourism Similarity/Differences Hospitality Similarity/Differences

Characteristics Characteristics

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.
 P a g e | 13

6. 6.

7. 7.

8. 8.

It is important to understand the various groups and constituencies involved in

this movement. Of course, it includes the tourist, but also the vast array of businesses
providing goods and services for the tourist, the government and political structure of
a destination, and the residents of the destination community itself. Each of these
components is necessary parts of a successful tourism destination and operates within
private and public sectors, the built environment, and the natural environment. All
these come together to create the processes, activities, and outcomes of tourism.
The characteristics of the tourism and hospitality sector that impact on the
management of operations. In any other fast-moving industry, the setting in Hospitality
and Tourism is always changing thus this affects operations management.
Sustainability is increasingly seen as a prominent factor in hospitality and tourism
decision making. The main operating systems in tourism and hospitality systems
contribute to the effectiveness, efficiency, and profitability of businesses. These
systems play in managing the customer service experience (through queuing etc.) and
delivering service to customers.
 P a g e | 14

The key operational features of the main sub-sectors in travel, tourism, and
hospitality across a range of sub-sectors including hotels, restaurants, retail outlets,
airlines, travel agents, tour operators, and theme parks. While the main operating
systems in travel, tourism, and hospitality systems contribute to the effectiveness,
efficiency, and profitability of businesses. The role that these systems play in
managing the customer is service experience (through queuing etc.) and delivering
service to customers. On the other hand, the evolution of operating systems in travel,
tourism, and hospitality and their changing impact on businesses, consumers, and
employees and, in particular, be able to articulate the key role of evolving technologies,
in particular ICT, in the development of operational systems in travel, tourism, and
hospitality.

REMEMBER:

The Characteristics of the Tourism and Hospitality Industry have similarities

in terms of Perishability, Inconsistency, Inseparability, and Intangibility. They
may vary in some characteristics as mentioned. The operating systems in
tourism and hospitality systems contribute to the effectiveness, efficiency, and
profitability of businesses. These systems play in managing the customer
service experience (through queuing etc.) and delivering service to
customers.

LET’S SEE WHAT YOU HAVE LEARNED

Manager’s point of view (12 points each)

Directions: Write a brief answer to each question.

1. Why do you think it is important to understand the various groups and

constituencies involved?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
 P a g e | 15

2. Describe the impact/s of these characteristics to the different sectors of

operations management.
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
3. Discuss the benefits of these characteristics of the Tourism and Hospitality
sector to operations management.
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
 P a g e | 16

MODULE 1
THE KEY FEATURES OF OPERATIONS
MANAGEMENT IN TOURISM AND
HOSPITALITY BUSINESSES

LESSON III
The Operational Features of the Main Sectors
within Tourism and Hospitality

INTENDED LEARNING OUTCOMES

After studying this module 1, you are expected to:

 identify the operational features of the main sectors within tourism

and hospitality.
 describe examples of operational features of the main sectors
within tourism and hospitality.
 explain the structural features of the Tourism and Hospitality sector
have important implications for operations management.
 recommend ideas to the sustainability of operational systems in
remote areas.
 discuss the importance of micro-businesses to the sustainability of
the tourism and hospitality industry

INTRODUCTION

The main structural features of Tourism and Hospitality have important

implications for the operations management in the sector, as these so-called structural
factors also influence the nature of operation in tourism and hospitality. The impact of
seasonality on demand for tourism and hospitality is very important. Several activities
 P a g e | 17

invite tourists however has a major part of leisure consumption at a local level is
extremely seasonal in terms of when it is likely and enjoyable to engross in them.
Surfing, for example in Siargao Island, Philippines, plays a role in both local tourism
and leisure which in demand during summer.

LET’S TRY THIS

Activity I. Modified True or False

Directions: Write the Word True if the statement is correct, False if the statement is
incorrect, and change the underlined word/s with the right answer if the statement is
wrong.

_______1. The key structural features of travel, tourism, and hospitality don’t
have significant implications for the management of operations in the sector.
_______2. What might be called structural factors also influence the nature
of operations in travel, tourism, and hospitality?
_______3. One of the most significant of these structural considerations
relates to the impact of seasonality on demand for Automobile.
_______4. Many activities that are attractive to tourists but also play a
significant role in leisure consumption at a local level are highly seasonal in
terms of when it is feasible and enjoyable to engage in them.
_______5. Skiing, for example, plays a role in both tourism and leisure but is
an activity confined to summer months in most localities, and operations
relating to the provision of facilities and services are, therefore, time-
constrained.
_______6. Indoor activities dependent on warm weather (water sports, for
example) are limited to summer months in all but tropical and sub-tropical
locations.
_______7. In many cases ‘the operational season’ can be exceedingly short
in what might be called ‘extreme’ tourism destinations, lasting little more than
six weeks to two months, during which time suppliers of tourism services seek
to generate sufficient income to cover the full year.
_______8. A further consideration that can be included as a structural
consideration is that of business ownership within the sector.
_______9. The balance between small, independent operators and large,
chain-owned multiples within each of the travel, tourism, and hospitality sectors
shapes the way that the sector operates and how they organize their
business.
_______10. In many parts of the developed world, there is a tendency towards
decreasing multiple ownership and operation, either through a direct model
or through various forms of management or franchising.
 P a g e | 18

Well, how was it? Do you think you did well? Compare your answers with those in
the Answer Key on page 25.

LET’S CONNECT…

Directions: Write a brief answer to each question.

1. What are the important implications of the operations management in the

structural features of the Tourism and Hospitality sector?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
2. Why do you think the structural features of the Tourism and Hospitality sector
have important implications for operations management?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
3. Here in the Philippines, what are the activities that invite tourists that have a
major part in leisure consumption at a local level and are extremely seasonal in
terms of when it is likely and enjoyable to engross in them?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
4. Why do you think seasonality on demand for tourism and hospitality is very
important? How can this affect operations management?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
 P a g e | 19

________________________________________________________________
________________________________________________________________

Peripheral locations suffer from poor communications and access, for example,
and may face a competitive disadvantage concerning destinations offering similar
facilities and opportunities but located closer to major urban areas or transport nodes.
Island locations, for example, have been the subject of extensive study because of the
particular influence that insularity has on the nature and performance of the tourism
sector. Maintaining operational systems in remote areas can present a challenge in
tourism and hospitality.

An additional consideration that can be included as a structural consideration

is that of business ownership within the sector. The balance between small,
independent operators and large, chain-owned multiples within each of the tourism
and hospitality sectors forms the way that the sector operates and how they organize
their business. In many parts of the developed world, there is a tendency towards
increasing multiple ownership and operation, either through a direct model or through
various forms of management or franchising. This imposes specific standards and
requirements on the operational standards adopted in these businesses.

In newer destinations, particularly in the developing world, tourism and

hospitality operations exhibit extreme contrast between large multi-national operations
and the micro-operations of local entrepreneurs in the souvenir, food, or activities
markets. Some countries in the developing world, having driven the early stages of
growth in tourism and hospitality on the back of multinational investment (Foreign
Direct Investment (FDI)), now recognize the importance of micro-businesses to the
future sustainability of their industry. Wong (2004), in the case of Malaysia, outlines
the importance of FDI to the early growth of the sector but recent government initiatives
have stressed the need to raise operational standards in the micro-business sector,
particularly in food service and accommodation.
 P a g e | 20

LET’S SEE WHAT YOU HAVE LEARNED

Manager’s point of view (12 points each)

Directions: Write a brief answer to each question.

1. Cite one major insight that you have acquired from the lesson. Explain how this
new learning contributes to the sustained ability of operational systems in
remote areas?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

2. What do you think is the importance of micro-businesses to the sustainability of

the tourism and hospitality industry?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
 P a g e | 21

The Case Format This should be written in

a clear, concise
statement of exactly
what needs to be
addressed

I. STATEMENT OF THE PROBLEM

This should provide
II. BACKGROUND OF THE STUDY high-level, strategic
This should be ideas to solve the
the synopsis of problem and should be
III. OBJECTIVE/S: written Specific,
the relevant
Measurable, Attainable,
information from IV. AREAS OF CONSIDERATION/S Realistic, and Time-
the case analysis
bounded.
tool short form

V. ALTERNATIVE COURSES OF ACTION (ACA)

ACA #1-
Advantage/s:
Have a justification as to what
Disadvantage/s:
Alternative of action must be
State the internal ACA #2-
implemented to resolve the problem.
Advantage/s:
and external Determine and discuss specific
Disadvantage/s:
environment of ACA #3- strategies for accomplishing the
establishment Advantage/s: proposed solution.
through SWOT Disadvantage/s:
analysis.
VI. RECOMMENDATION

I. PLAN OF ACTION
 The Solution should be related
to the problem statement.
 Provide three specific and
This describes the series of actions to be realistic solutions.
undertaken to operationalize the adopted  Be consistent with the corporate
ACA to ensure that the analysis is done mission or strategy.
comprehensively.  The 3 ACA’s or solution must be
accompanied with Advantages and
 It would be best to program the plan
Disadvantages to explain why this
according to the basic functional areas and to
solution was chosen.
present the plan by having column headings
for activity, person/unit responsible/time frame,
and budget.
 P a g e | 22

ANSWER KEY
Activity I- CROSSWORD PUZZLE

U N I T C O S T Q
U U
P A
P L F
L I O
Y T R
C A P A C I T Y Y E
M H C C
E X T E R N A G R O W T H O A
R I N S
G N P R O D U C T I V I T Y
E R I
R O N
L G
L A B O R I N T E N S I V E

O P E R A T I O N S M A N A G E M E N T
 P a g e | 23

Module 1- Lesson I

Activity I- Do your Dictionary

Does the meaning for each term have the same statement or description of the
nature, scope, or meaning of something with yours?

Terms Meaning
1. Operations Management Refers to the work or activities done every day at
home.

A. Does this definition have a difference if you are going to relate this to tourism
and Hospitality? If yes, How? Give example, If no, Why? Please justify your
answer?
Answer:
If your answer is YES
Yes, because they vary on the setting, the daily activities in the house
does not operate different departments like travel agency, food and
beverages, hotel rooms, events and most important thing to consider they
do not incorporate customer service unlike the operations management
in tourism and hospitality.

If your answer is NO
No, because operations management in the tourism and hospitality
industry refers to the daily activities or work done in the different
departments of the tourism and hospitality industry.

B. Do you think the daily house chores are considered as operations

management? Why? Support your answer.
Answer: Yes, because it involves daily activities or works in their specific
fields.
 P a g e | 24

Module 1- Lesson I

Application- Concept Map Definition

Below is an example of the Concept Map Definition model.

What is it? What is it like?

Daily management of the

Business and establishment.
Management Education

Smooth and efficient

operation of the site.

Operations Involves the harmonious

Management in relationship process
Tourism and between the establishment
and a guest
Hospitality Industry

Refers to the
transformation process of
converting raw materials
into finished goods and
services.

Food and Rooms Division Travel and Tour

Beverage Service Operations
Management
Operations
 P a g e | 25

Module 1- Lesson II

Activity I- Level 1 Picture Quiz

1. Accommodations and Lodging

2. Recreation and Entertainment
3. Travel Services
4. Food and Beverage Services
5. Conventions and Event Management
6. Clubs

Level II- Two Pics Two situations One-word Quiz

1. Perishability
2. Inconsistency
3. Intangibility
4. Inseparability

Module 1- Lesson III

Activity I- Modified True or False

1. Significant implications
2. True
3. Demand for travel, tourism, and hospitality.
4. True
5. Winter months
6. Outdoor Activities
7. True
8. True
9. True
10. Increasing multiple ownership and operation