...A COMPREHENSIVE ANALYSIS OF HYATT HOTELS CORPORATION AND HOW IT RELATES TO COMPETITION WITHIN THE HOTEL INDUSTRY Table of Contents EXECUTIVE SUMMARY 1 EXTERNAL ENVIRONMENT ANALYSIS 3 General Environment 3 Demographic Segment 3 Technology Segment 7 Economic Segment 11 Political / Legal Segment 14 Socio-cultural Segment 16 Nature Segment 18 Global Segment 19 Industry Environment 21 Intensity of rivalry 21 Supplier power 22 Buyer Power 22 Threat of substitutes 22 Threat of new entrants 23 Competitor Environment 23 Introduction 24 Future objective 25 Current strategy 26 Capability 28 Assumption 30 Driving Forces 31 Economic growth 31 Globalization 31 Technology 32 Room Service Remodeling 33 Go green 33 Key Success Factors 34 Multiskilled and flexible workforce 34 Franchising 34 Quickly adopt new technology 35 Strategic Group Map 35 INTERNAL ENVIRONMENT ANALYSIS 39 Resources 39 Tangible resources 39 Intangible resources 41 Capabilities 44 Core Competencies 45 Brand Development: 45 Golden Passport Membership 47 Making Meeting Easy 47 Distinctive Competencies / Four Criteria Test 48 Supply Chain 50 Inbound Logistics 50 Operations 52 Outbound Logistics 54 Marketing and Sales 56 After-Sales Service 58 Weighted Competitive Strength Assessment 59 Financial Report 63 Profitability Ratios 64 Liquidity Ratios 67 Leverage ratios 69 Efficiency Ratios 71 Revenue Per Available...
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...Improvements of Hilton Hotels Stephen Hammond MGT 1304-01 Fall 2013 11/11/13 Winston Salem State University Abstract In this paper it reveals the history of the Hilton Hotels over the years and how it has expanded into this international corporation that is well known as of today. Also, this includes the downfall that the company has faced in trying to become successful. Then some financial issues that had taken place over the years. Strengths and weakness about the company , so it can become better. Hilton is a global hospitality company that is owned by the Blackstone group that is a private equity firm. As of 2010 Hilton brand encompass over 3600 hotels with 600,000 rooms in 82 countries in the United States. Hilton owns a wide array of brand hotels (Hanna, 2013). In 1919 the first Hilton hotels was opened by Conrad Hilton. When the first hotel was invented it didn’t have any air conditioning because it was not evented yet. As years go on, they started expanding with more hotels that had air conditioning and cold water. Then a crisis came when people was traveling less and caused the business to decline. After 3 years it was required for the owner to sell his hotel because the stock market had crashed completely for hotel businesses (Hanna, 2006). Years later the Hilton hotels owner started facing more crisis by the moody family of Galveston, Texas, who had loaned Conrad money. The agreement was for Conrad Hilton to help out with their hotel. Suddenly a struck...
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...PICCOLI CHEKITAN DEV op yo Hilton Hotels: Brand Differentiation through Customer Relationship Management In early 2008, Hilton Hotels Corporation was poised for tremendous global growth—with an aggressive goal of opening 1,000 hotels in North America in five years and 1,000 hotels in the rest of the world in ten years. The company had just been taken private by the Blackstone Group1 for a reported $26 billion, a 32% premium over the $32.05 share price the day prior to the announcement. The takeover announcement by Blackstone clearly framed the road ahead: “Blackstone intends to invest in the Hilton properties and brands globally to enhance and grow the business for the benefit of owners, franchisees, and customers... This transaction is about building the premier global hospitality business.” tC But growth would not be easy in the highly competitive global lodging business. Challenges in this market historically included access to capital, high levels of employee turnover, and difficulty achieving standardization typical of service delivery operations. Improving service delivery and consistency across the family of Hilton brands had been the major focus of the Customers Really Matter (CRM) strategy that the firm launched in 2002. With five years invested in CRM, the Blackstone acquisition provided the opportunity to evaluate the results to date and to devise an action plan going forward. Hilton Hotels’ Background Do No Hilton was perhaps...
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...RETURN FOR MORE 2014 ANNUAL REPORT Selected 2014 property openings include (from top to bottom, and left to right): Hampton by Hilton Istanbul Kayasehir; DoubleTree by Hilton Hotel and Residences Dubai – Al Barsha; Embassy Suites by Hilton Santo Domingo; Homewood Suites by Hilton New York Midtown Manhattan Times Square – South, NY; Hokulani Waikiki by Hilton Grand Vacations Club; Diplomat Resort & Spa Hollywood, Curio Collection by Hilton; Hilton Garden Inn Astana; Waldorf Astoria Amsterdam; Home2 Suites by Hilton Sioux Falls/Sanford Medical Center, SD; Conrad London St. James; Hilton Al Hamra Beach & Golf Resort. Cover photo: theWit – A DoubleTree by Hilton AT-A-GLANCE As the world’s largest and fastest-growing global hospitality company, Hilton Worldwide builds on a century of excellence as the strength of our brands and the power of our innovation continue to drive guest satisfaction, increase loyalty and support one of the foremost unit growth stories in the industry. We strive to spread the light and warmth of hospitality that keeps guests, team members, owners and stockholders returning for more. UP 7.1% (1) 1 Ranked Margin growth – Adjusted EBITDA margin increase 190BPS to 36.8% (2) Net unit growth System size, pipeline & rooms under construction 715,000 Rooms UP 6% or 36,000 ROOMS (3) $2,000 (4) # UP 13.5% $2,500 Award-winning brands Hilton HHonors members Bottom line – Adjusted EBITDA ...
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...and Social Environment Hilton hotel Prepared By Raize Hassam(CB004338) Module Code & Title Cohort FF1221 Date of Submission 15/09/2011 Instructor Ms. Sankapali Gunawardena Word Count 2000 Acknowledgement The authors would like to first of all thank her managing business lecturers Mrs.Shumara and Ms. Sankapali Gunawardena for all the support and guide he gave her to finish this assignment successfully. The authors would also like to thank her parents and friends for all their commitments and encouragement. Last but not the least the authors would like to thank the administration for all the facilities they have provided which made it easy to complete this assignment on time. Abstract As assigned by the lecturers Ms.Shurmara Fernando and Ms.Sankapali Gunawardena for the module Organizational and Social Environment, the authors were required to investigate research and observe an area of Internal and External Business Environment in any local business organization. Therefore the authors selected “Colombo Hilton Hotel” to do their research according to the assignment. So to do this research the authors visited Hilton Hotel in order to gather information...
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...SUBJECT: Case Study: Hilton Hotels – Brand Differentiation Through Customer Relationship Management List of Key Issues or Problems in the Case * Hilton’s strategy to maintain its leadership position in the US as well as in the international lodging market * Hilton’s focus on profitability and Return on Investment * Personalized customer service and development of Customers Really Matter initiative (CRM) * Implementation of a new enterprise system OnQ and the associated costs * Maintaining competition with other hotel brands Discussion questions 1. What is Hilton’s core business? The case presented in the book describes the evolution of Hilton Hotels Corporation, nowadays known as Hilton Worldwide. It is a public company founded in 1919 by Conrad Hilton. Hilton is one of the leading hospitality companies comprised of over four thousand hotels in ninety-one countries. Hilton’s web site states the following: “Ten brands, more than 4,100 hotels, and more than 300,000 Team Members across corporate offices and owned, managed and franchised properties make us the world’s leading hospitality company.” Hilton’s core business is to provide outstanding customer care of their guests, ensure their one of a kind experience while staying at the hotel. The acquisition of Promus Hotel Corporation in the year of 2000 added additional 1700 hotels to Hilton Worldwide. The company also invests heavily in the new hotel development, franchising and affiliating with real...
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...and promotion. However, for service organisations, the extended marketing mix (7 Ps) are used including additional three elements; process, people and physical evidence. These elements are the basic, tactical components of a marketing plan that marketing managers can control. Examine the marketing mix of an organisation of your choice. Answer 1. Introduction Hampton inn and suites is a hotel chain which is a part of Hilton Hotels. Most Hampton hotels are independently owned and operated by franchisees, though a few are owned and/or managed by the Hilton Hotels Corporation. This hotel chain is a proud owner of more than 1700 hotels in the US, UK, Canada and Mexico. It is a part of a Hilton honours loyalty programme and caters to different customer segments such as business travellers, school teams, leisure travellers etc. The extended marketing mix of Hampton Inn is examined below: 2. Marketing mix Product Hampton offers accommodation facilities. It provides a variety of complimentary services such as hot breakfast, Wi-Fi facilities, free parking at some hotels, bathroom amenities, free local calls, free in-room movie channels and other...
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...Coughlin V Tailhook LAW/531 COUGHLIN v TAILHOOK 112 F.3d 1052 (1997) United States Court of Appeals, Ninth Circuit Facts: During a convention at the Las Vegas Hilton in September 1991, Navy Lieutenant Paula Coughlin was attacked by a group of men in a hotel hallway. The resulting post-traumatic stress disorder and other problems related to the attack eventually hampered her ability to perform her duties. Ultimately, she resigned from the US Navy. Coughlin brought action against the Hilton Hotels Corporation (HCC), the Las Vegas Hilton Corporation (LVHC) and the Tailhook Association for negligence seeking both compensatory and punitive damages. “Her complaint alleged that LVHC and HHC had acted with conscious disregard for known safety standards and measures.” (Retrieved from www.ca9.uscourts.gov on December 5, 2007) The Tailhook Association settled out of court for a sum of $400,000.00.The jury found LVHC and HHC negligent and awarded Coughlin $1.7 million in compensatory damages, punitive damages of $2.62 million against LVHC, and $2.3 million against HHC. HCC and LVHC appeal. Issue: What showing of malice is sufficient to uphold a punitive damage award under Nevada Statute? What constitutes “malice in fact, expressly or implied”? Holding: The verdict and judgment in Coughlin’s favor is affirmed. Summary of the Court’s Reasoning: Under Nevada State Law, punitive damages may be awarded in addition to compensatory damages for the sake of example and...
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...Aimee Davis BMGT 364 9/7/2014 Professor Bethany Torres A hotel is an establishment that provides lodging paid for on a short-term basis. Facilities provided for people range anywhere from a bed to other luxurious facilities like swimming pools, or childcare. The Marriot and Hilton are both established businesses offering accommodations, meals, and other services for travelers and tourists, but being competitors there are similarities and differences between the two. Hilton Hotels mission statement is “To be the preeminent global hospitality company - the first choice of guests, team members, and owners alike” (Hilton worldwide). While on the other hand the Marriot has a mission and vision statement “to be the #1 hospitality company in the world”(investor shareholder). The Marriot has combined both their mission and vision statement into one, where as the Hilton has both a mission and vision statement. The mission statement of the Hilton is clear and is interested in its stakeholders, where as the Marriot is straight to the point and states it just wants to be number one. Both companies are committed to serving their customers in a professional way. Hiltons mission statement “To be the preeminent global hospitality company - the first choice of guests, team members, and owners alike” is effective and articulates the company’s purpose. It states how it aims to serve its customers, employees, and owners alike, or stakeholders. The goal of a mission and vision statement is...
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...countries and territories around the world, over 697,000 rooms under 16 brands including Courtyard, Renaissance and Ritz-Carlton; more than 800 new Marriott-operated properties are in the works worldwide. Founded by J. Willard Marriott, the company is now led by President and Chief Executive Officer Arne Sorenson and J. Willard Marriott's son, J. W. Marriott, Jr. is the Executive Chairman. 19 1111119 Hilton International began around 1919, when Conrad Hilton bought The Mobley, a hotel in Cisco, Texas. Mr. Hilton had greater ambitions, over the next few years; he added other Texas hotels in his assets. In 1943, with the purchase of the Roosevelt and Plaza hotels in New York City, Hilton became the first coast-to-coast hotel group in the United States (Worlwide, 2014). Hilton International operated as a separate company, with Conrad Hilton as president. Two years later, Conrad Hilton's son Barron succeeds him as president of the domestic Hilton Hotels Corporation. In 1954, Conrad N. Hilton bought Statler Hotel for $111 million dollars, which at that time was the...
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...1-The strengths of Hilton HHonors program from the standpoint of Hilton Hotels Corp and Hilton Internationals are that it builds brand loyalty and this is seen as the industry’s most important marketing tool. It builds partnerships and collaboration, accesses new markets, and also creates a greater recognition of the Hilton brand. Weaknesses would include Hilton not being the industry leader, competitive information is shared freely in the industry and there is less standardization of operations. Strengths for Members Properties (franchised hotels) are that their reputation could increase because they are with a renowned brand. There is support for the franchise from the franchisors. With expansions that means more visibility and possibly new customers for the franchises. Weaknesses would be that there are more restrictions in operations because the franchisors are now dominant, new agreement would increase the ongoing payment of fees from the franchise to the franchisor. You will also not be guaranteed success for the franchise. Strengths from the standpoints of guests would be easy to use loyalty rewards program, the more you stay the more service value you will obtain, the loyalty program extends worldwide. Weaknesses would include a variation in room price, there is a limited access for redemption during peak periods and the one-time customers are not given preference. Strengths from the corporate travel departments are personal incentives for individuals and help...
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...brand in the lodging industry? Hilton Hotels Corporation is a global hospitality company. Perhaps it is the most recognizable name in the lodging industry. Hilton offered significant recognition and customer traffic with their advertisements, programs and electronic distribution systems. The company is responsible for delivering the guest experience on property and abiding by the brand standards. Brand values have a lot to do in lodging industry. For instance two companies selling similar product at a same price. Yet people tend to buy one product more. If the question is why the answer is brand value of the product. There are various aspects that determine a brand value. This can be quality, premium price, higher market share or even a positive image. In the case of lodging industry, once the customer have a bitter experience with the service they are never going to come back to stay at the same place anymore. The brand value in this industry is more over attained through word of mouth. If a customer gets a quality service obviously he will recommend the place for his known one’s too. That’s how a strong brand image is built in lodging industry. The brand should create values in customers mind by helping to assure them of a uniform level of quality. Then the customer becomes loyal to the brand. 2. Evaluate the performance of the Customers Really Matter initiative to date. The nervous system of Hilton Hotels Corporation was a comprehensive and integrated infrastructure...
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...History Hilton hotels began in the year 1919 after founder Conrad Hilton purchased his first hotel, the Mobley hotel, in Cisco Texas. Soon after, Conrad Hilton bought a high-rise hotel in Dallas and attached the Hilton name to it. Throughout the next couple decades, Hilton purchased hotels and resorts throughout multiple countries and rebranded them with the family name. Hilton started to shape a competitive hospitality industry by offering amenities no other hotels had to offer, such as the first hotel to offer TVs in guest rooms. In 1954 Hilton purchased the Statler hotel chain, making Hilton Hotels the largest hospitality chain in the world, during the time. Today, with over 4500 properties in over 90 different countries, Hilton Hotels and Resorts is the second largest hotel chain and has one of the most well know brand names to the general public. Brands and Service The company’s hotel brands include Hilton, Hilton Garden Inn, Doubletree, Embassy Suites, Hampton, Homewood Suites by Hilton, Conrad, Waldorf Astoria Hotel & Resorts, and several others. Hilton Hotel's properties consist of full service, which means you can expect room service, newspaper delivery, security guards, wakeup calls, at least one restaurant lounge, shuttle transportation and several other amenities. Locations Each Brand of Hilton Hotels and Resorts and their subsidiaries can almost be found in over 79 countries worldwide. Some well known locations include New York City, Toronto...
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...of Nevada WIGGINS, Circuit Judge: During a convention at the Las Vegas Hilton, Navy Lieutenant Paula Coughlin was attacked by a group of men in a hotel hallway outside several convention-related hospitality suites. She sued several defendants, including the hotel and the organization which hosted the convention. A jury awarded her several million dollars in compensatory and punitive damages against the Las Vegas Hilton Corporation ("LVHC") and Hilton Hotels Corporation ("HHC"). LVHC and HHC (collectively,"Hilton") appeal. BACKGROUND The infamous 1991 Tailhook Convention served as the stage for the despicable event that led to this lawsuit. Hosted by the Tailhook Association ("Association"), the Tailhook Convention was an annual symposium and convention primarily directed at military aviators and held at the Las Vegas Hilton in Las Vegas, Nevada. Navy Lieutenant Paula A. Coughlin, a decorated helicopter pilot, attended the 1991 Tailhook Convention in her capacity as an aide to Rear Admiral John Snyder. After attending a banquet at the Las Vegas Hilton on the evening of Saturday, September 7, 1991, Coughlin returned to her nearby hotel to change out of her military uniform. She then returned to the Las Vegas Hilton to socialize with friends at one of the many convention-related social events at the hotel. Looking for her friends, she entered a third-floor area where several hospitality suites hosted by various Navy squadrons were located. As she started to walk...
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...Hilton Case Executive Summary As the most recognized brand name in the lodging industry, Hilton is a diversified cooperation for its strong presence in all segments of hotels, casinos and vacation ownership. In terms of organizational strategy, Hilton Hotels Corporation relies on its scale, gaining members through its loyalty program and continuously expanding its hotel network. Beginning with acquisition of Promus Hotel Corporation, It now owns, manages, or franchises a portfolio of brands which includes Waldorf-Astoria Collection, Conrad International, Hilton Hotels, etc. With the focus of Customer Really Matter strategy, Hilton Hotel Corporation has invested much in CRM since 2002 aiming to build a broad customer base and the premier global hospitality business. Hilton Hotels Corporation considers customer as the most important component of their business, so they developed objectives to build a close long-term relationship with their customers. To provide consistent and outstanding service to its customers, the CRM initiative was primarily focus on its four categories of Best Guests: members of Hilton Honor program, 4+, Fast Rez members and local VIPs. Hilton achieves this tight relationship through recognition, personalization, service recovery, and customer analysis. Refer to the endnotes ix and x, the net revenue per call is a measure of efficiency of call center and that the conversion ratio measures how many calls were “closed” turning callers into bookers...
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