Seymour Hotel is a four-star hotel that is located in the South West of England. The current issue that the hotel faces is having a lot of customer traffic after 9 am. This leads to stressful situation and a lot of consumer complaints about the services rendered by the hotel. Currently the hotel charges £12.50 and it has been proposed that the lunch to be served at an extra surcharge of £5. The management feels that the customers could get up slightly later and have lunch instead. They are planning to ask the customers about their preference.
Purpose of this analysis is to determine if there will be any operational issues from the capacity management
Capacity management of the hotel industry refers to the ability of the hotel to balance the demand of the consumers with the service delivery system. The capacity of service organizations becomes difficult to management as most of factors of the service deliverable are dependent on the intangible factor, perishability and the consumer participation (Hoque, 2013). There should be the balance between supply and demand in the hotel industry. In this case the hotel is planning to shift some of the customers to use the Lunch option instead of the Breakfast option. In this situation the number of people will increase for the lunch menu and there should be a capacity management plan in place to ensure that the hotel can handle the extra foot traffic for lunch. For addressing the capacity issues of the company the company should be able to improve the quality of services that it rendered. The operational issue that is expected to arise from this situation is the quality performance for the consumers. This needs to be addressed.