...Hilton HHonors World Wide: Loyalty Wars Loyalty programs have been around for a long time, tracing their origins back to the 1990’s. Modern day loyalty programs begin within the airlines, who found themselves struggling after the industry was deregulated in the early 1990’s. The 1990’s also brought about a time of change for the hotel industry: many brands began consolidating and combining resources. Hotel companies soon began combining operations, reservation systems, and marketing programs. Hilton hotel group was one hotel group that did just that. In the mid-1990’s the Hilton brand was own by two companies: The Hilton Hotel Company and Hilton International. In 1997, both companies came together to unify their marketing efforts, around this same time the companies created the HHonors Loyalty rewards program. The program was designed to unite the brand and unify its customer base in the US and abroad. The newly created program HHonors essentially worked for both of these companies and their franchisees, and was tasked with breaking even each year. Loyalty programs reward frequent guest by giving them points for each of their stays; points can then be redeemed for free nights, airline miles, and products from other participating vendors. Starwood Hotels has organized a rewards program that features no blackout dates, no capacity control, paperless rewards, and a higher reimbursement rate to the hotel for the nights given out using points. Marketing executives at Hilton are...
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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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.............................................................................................. 9 PEST Analysis .............................................................................................................. 9 Political Factor .............................................................................................................. 9 Economic Factors....................................................................................................... 11 Social and Cultural Factors ....................................................................................... 12 Technology Factor...................................................................................................... 13 Porter’s 5 Forces Analysis for Hilton Hotel ................................................................. 14 Bargaining power of Customers ................................................................................... 15 Bargaining power of Suppliers ..................................................................................... 15 Threat of New entrants .................................................................................................. 15 Threat of Rivalry...
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...Building a New Hilton Hotel hilton.com © 2007 Hilton Hospitality, Inc. U.S./2007 Index Building a New Hilton Hotel Introduction From Dream to Reality Learning the Language, Navigating the Systems Hilton Communication Channels Online Resources Building Business 2 The Pre-Opening Meeting The Pre-Opening Action Plans Ramping Up & Ongoing Support Hilton Brand Programs Continuous Improvement Process The Customer Really Matters Hilton Serenity Collection™ Hilton Breakfast Hilton Fitness by Precor® Hilton Meetings® Hilton HHonors® 6 8 8 10 Appendix Timeline for Building a New Hilton Hotel At-a-Glance – A Brand New Hilton Hotel Key Department Personnel Glossary and Definitions 12 3 1 Building a New Hilton Hotel Building a New Hilton Hotel We believe in the transformational power of travel. We invite travelers to discover the innovative ways in which we help shape their personal journeys. We are inspiring guests to work, relax and enjoy, 24/7, regardless of their trip occasion. Our contemporary, fresh style encourages our guests to take advantage of the local experiences. When we say, “Travel should take you places,” we want to enhance our guests’ perceptions from their first impressions at booking through their entire experience as our guest. A stay at a Hilton Hotel should be transformative. The groundwork to support this commitment is laid months before the first Hilton guest registers at any Hilton Hotel or Resort. To create a transformative environment...
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...Hilton worldwide Financial analysis: With the initialization of the company in the year 1919, it made a really good start and took out a lot of contemporary competitors during the period of the 20th century. By the end of the year 2013, Hilton worldwide underwent a drastic financial enhancement and there was an increase of 5.2 percent on the overall revenue for each and every room. In addition to that, the overall adjusted EBITDA was increased to a height of 13 percent. This was absolutely a huge financial enhancement for the company as it led to the generation of $2.21 billion as overall net unit growth and the overall unit growth was increased to 4.5% in the segment of management and Franchise. To establish a certain financial position in the commercial market, a company requires certain factors to be accomplished to attain the targeted financial objective. These factors include, setting up a common mission, a specific set of values and lastly proper strategic priorities. It was important for the company to shift into a capital centric model strategy that will allow making progress with less investment in keeping their focus on the global development strategy. The key step that was beneficial for the company was the performance driven work culture. Another important factor in the tourism and hospitality industry is the diversification. In simple terms, the global reach of a company also provides an estimate over the financial condition of it. The more global a company is able...
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...CASE 2 Hilton Hotels Hilton Hotels Corporation owns, manages and/or franchises hotels, casino-hotels and inns; sells furnishings, equipment, and supplies to hotels, motels, and inns; and operates a computerized reservation system for the hotel industry. After two major takeover attempts in the early 1990s, Hilton Hotels decided that it had to change by becoming a more aggressive business operation. The result was the decision to move heavily into gambling. This change of strategic direction represented a significant shift in Hilton’s business focus and marketing objectives. Already the owner of four casinos in Nevada, the Los Angeles hotelier began pushing projects in New Orleans, Chicago, Egypt, Turkey, Uruguay, and Australia. While gaming accounted for about 34 percent of Hilton’s overall sales in the early 1990s, its four casinos contributed nearly two–thirds of Hilton’s operating earnings. Nevertheless, Hilton’s new emphasis on gambling carried a large element of risk. Competition for the gaming dollar is intense, and the degree of investment needed to be successful is high. Hilton has had to put more than $6 million into renovating the Las Vegas Hilton to keep up with such rivals as the Mirage and the Excalibur, and it has also renovated the Flamingo Hilton to keep pace with other new places. To lure high rollers away from other casinos, the Las Vegas Hilton has had to be more generous about extending credit, resulting in bad gaming debts and reductions in operating income...
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...The 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...
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...HILTON WORLDWIDE Hilton Worldwide (Hilton) is a leading global hospitality company which was established in the year 1919 by its founder Conrad Hilton. Since then the company has expanded geographically, produced original hotel and travel concepts, and developed innovative technologies to enhance the guest experience. Their 93-year history as pioneers in the industry makes them the number one venue for travelers, developers, partners, and team members alike. The company was until recently known as Hilton Hotels Corporation. The new Hilton Worldwide is now owned by the private equity firm "The Blackstone Group". The name Hilton Worldwide signifies the company’s global breadth and reach. Hilton Worldwide retains a chain of hotels from luxurious full-service hotels and resorts to extended stay suites and mid-priced hotels. This means that Hilton Worldwide is mainly focused on the lodging sector. One of the world's largest hoteliers is operated by Hilton. This includes a lodging empire of over 3,900 hotels and resorts in almost 91 countries. The company provides services that include lodging rooms, health and fitness facilities, and meeting facilities, dining options, swimming pools, exercise facilities, laundry facilities and spa treatments. Hilton operates and maintains a trusted portfolio of brands such as, Waldorf Astoria, Conrad, Doubletree, Embassy Suites, Hilton Garden Inn, Hampton Inn & Suites, and Homewood Suites etc. Additionally, the company also operates...
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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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...Hilton Hotel Worldwide Review Hilton Hotels and resorts is a large and prominent group of famous hotel chains with branches all over the world. The parent company is called the Hilton Worldwide. Conrad Hilton founded the business in 1919. The first hotel he established was the Mobley in Texas. The chain boasts of several luxurious hotels and resorts. The standing of the corporation as at 2012 was about 3900 hotels having over 642, 000 rooms in total. These hotels are located in 91 countries over six continents in the world. A private firm, Blackstone Group, owns Hilton Worldwide. The headquarters of Hilton Worldwide are in Virginia where they relocated in 2009 from Texas their initial locality. The location of these hotels varies since some are located in major cities while others are vacation resorts set away from the busy city centers This business venture was ranked as one of the largest private organizations in the United States. The business has forged alliances and partnerships with several airline companies and vehicle rental companies. This has been done in order to increase their customer base and the comfort of the customers. The company expanded steadily from its inception to this present day. The main reason for its triumph is the good planning on the part of the management. The quality of service that they offered to their members is another reason for their success in the hospitality industry. A good work environment for their employees is also...
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...Hilton Hotels PESTEL Analysis PESTEL abbreviation is interpreted as political, economic, social, technological, legal, and environmental factors impacting businesses, and PESTEL is an important framework for assessing external factor impacting business practices. POLITICAL FACTORS Political stability is the key to the success of any industries and it is applicable to hotel industry as well and it needs to cope with political situations everywhere in the world. The political approaches can influence the number visitors, both, tourists and business travellers’ visits to a nation. It may a concern for many people those who are visiting Northern Ireland because of the ongoing very delicate political situation. Moreover, Hilton’s performance is directly affected by consumer protection and employment laws in UK, as well as, the nature of competitive regulation, and risks of military invasion in the country. ECONOMIC FACTORS National macroeconomic situation and factors and events impacting the situation are major factors affecting Hilton Hotels & Resorts business in the UK. For example, during the Olympic times in the UK most of the hotels were occupied and booked fully for the whole period. However, the situation was completely different once the Olympic Games were over. Additional economic factors that affect Hilton may include the extent of expected and real economic growth in the UK, national taxation policies, and seasonality and weather problems. SOCIAL FACTORS ...
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...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 the most internationally...
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...Hilton Hotel Corporation The Hilton Hotels Corporation, one of the leading international companies in the hospitality industry started with a humble beginning in 1919, when Conrad Hilton bought the first of what would later become an international chain of hotels and resorts, revered by competition and valued by customers, for the high quality of hospitality and leisure services provided as well as original hotel and travel concepts presented. With an international portfolio of 9 hotel brands that extends to up to 79 different countries worldwide, the Hilton hotel corporation has more than 3,400 hotels spanning the globe and approximately 22 million guests across all nine brands owned by Hilton. The goal Hilton aspires to achieve however is to be the first choice of guests, team members and owners alike, the paramount global hospitality company, which is reflected solidly within the company’s core values which are the drive of the corporation’s team members. H HOSPITALITY I INTEGRITY L LEADERSHIP T TEAMWORK O OWNERSHIP N NOW (Hilton worldwide, 2009) Through creating exceptional guest experiences, Hilton was able to ensure that each customer is made to feel valued. Challenges However, with an increasing number of competitors in an aggressive and quite competitive market, A diverse number of properties in 79 around the world, each with unique cultural norms and traditions and a changing hospitality market, due to the increasing bargaining power customers...
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...Hilton HHonors Worldwide: Loyalty Wars HOS 342 Service Marketing Hilton HHonors Worldwide: Loyalty Wars HOS 342 Service Marketing Anthony Petitte Anthony Petitte Introduction The following case concerns Hilton’s reward program for its guests, the Hilton HHonors, and the possible implications after the introduction of a different reward program introduced by Starwood Hotels and Resorts Worldwide Inc. Many companies in different industries use the loyalty reward program as a form of marketing tool to reward their loyal customers. By doing this, they are able to retain their customers and attract other potential customers. The more attractive the loyalty programs are, the more customers the companies get and retain. Customers are attracted based on how they earn points, and the benefits they get when they redeem the points. Many of the industries offering the loyalty programs have a standardized way of doing so because they are more independent and they have definite control. This is unlike the hotel industry, which has no defined control because of franchises and different management. There may be different people controlling the hotel chain despite the chain using the same brand. This makes it hard for the hotels to standardize their loyalty program. The Hilton reward program was effective in retaining and attracting customers, but the hotel chain faced different challenges, which increased its threat of losing its customers. Challenges facing the Hilton Brand The Hilton...
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...The purpose of this case analysis is to address the key marketing issue for the Hilton Hotels. The marketing strategies Hilton should pursue in the hotel and gaming markets will be discussed and recommendations will be made. In addition, the use and implementation of the SWOT analysis will be incorporated throughout the discussion. Information will be provided from the case study and the use of secondary resources for support of the marketing strategies recommended for the Hilton Hotels. Market Summary Hilton Hotels is one of the market leaders in the hotel and gaming industry in the United States. Hilton is a well-known and distinguished name in fine hotels across the United States and worldwide. In 1999, Hilton expanded aggressively by acquiring the Promus Hotel Corporation, Hampton Inn and Suites, Doubletree Hotels, Embassy Suites Hotels, and Homewood Suites. Hilton Hotels Corporation has grown to become the worlds most recognized and most successful hotel company (Hilton Innovation, 2007). With the 2006 acquisition of Hilton International, Hilton Hotels Corporation became a global force with more than 2,800 hotels in more than 80 countries throughout the world (2007). Market Demographics The demographics for a diverse company such as Hilton offer a wide variety of customers. Hiltons target market includes the everyday business traveler, families on vacation, leisure travelers, and the convention business segment. After the events of September 11, the hotel industry has...
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