There is increased level of competition within Hotel industry and this has made the cost of operation an important aspect in management. Sales and marketing department needs to register and identify market development programs and various demands from customers. There are issues surrounding dynamic pricing which assist in luring business travelers hence increase in customer loyalty. Various Hotels within the industry such as Sheraton has adopted optimal pricing as one of the key elements required for key operation of their businesses.
Most of the issues surround loyalty-marketing programs that applicable as core channels of attracting and retaining best customers. There is also an issue concerning standardization of operations within hotel chains and the size of market within which Hilton competed. The effort to deliver to individuals, groups and organizations is possible through secure and knowledgeable workforce capable of identifying and satisfying consumer needs within different segments.
Hilton has invested in a consumer behaviour research that has enabled the organization to obtain extensive data on consumer spending patterns. Consequently, they have improved on their responses and decision-making processes for the purposes of ensuring relevance within hotel and hospitality industry. SWOT Analysis Strength The brand name Hilton controlled by two corporations, Hilton Hotels Corporation (HHC) and strong positioning within the upper and medium scale hotel range identify Hilton International (HIC).
The Essay on Hotel and Hospitality Industry
Hospitality management, in hotel and restaurant management, is a very interesting and challenging program, which has become a popular career choice for most of the young generation in this century. This is a diploma program, which provides students the opportunity to become an excellent manager in the hospitality industry. The program is divided into four semesters. The first two semesters focus ...
The brand’s presence in all the continents is recognizable through Hilton HHonors program. Well-developed and established network with four tiers of membership (Blue, Silver, Gold, and Diamond) within the program utilized for purposes of attracting and retaining customers is an added strength (Deighton and Shoemaker 4).
Weaknesses Some of their weaknesses include consumer discrimination where on those on loyalty programs are granted priority in hotel bookings. Opportunities Opportunities lie in the fact that the company can utilize their customer handling service through online booking.
There is enough evidence to prove that unlike most other major competitors there is room for building and promoting current credentials and reputation based on high quality services amongst high-end consumers. In addition, various reports indicate that hotel industry sector is very saturated market within Europe, with most hotels having established chains reaching higher percentage of the population. Threats Threats within Hotel industry include rising costs on labour and marketing programs within global markets.
There is also stiff competition from potential high-class hotels within the industry. Analyzing the case data Hilton initiated various programs such as Hilton HHonors, designed for purposes of building loyalty to Hilton brand within the global market. The program has a brand name, Hilton HHonors Worldwide (HHW), with focus on providing high standard services to both HHC and HIC. The program involved registered members earning redeemable points per stay at HHC or HIC hotels. In the Hotel industry, increased market share translates to increased revenue that usually converts to higher profit margin.
However, instead of an increase, there are experiences of low profitability levels since pricing is no longer a key to differentiating factor in this industry given that most hotels operate on decreased costs. For instance, Starwood Hotels and Resorts raised the costs through implementation of an aggressive frequent-guest program. Such program raised the costs of loyalty programs and operations costs. This means that Hilton Hotels have to strategize on cost effectiveness and ways of differentiating themselves from competitors such as Starwood Hotels for the purposes of profitability.
The Business plan on Hilton Group
... the cost for switching to other alternatives. Powerful few customers can dominate a business. Hilton Hotel provides a wide range of services and ... managers within five to eight years of starting the program. Traditionally, hospitality companies are not very successful at graduate ... with other companies and charity organizations. The short-breaks market could target the ageing UK population as well as ...
One of the main benefits of cutting costs is increased market share. This is because customers are always inclined towards spending less money than much money. This has made Hilton Hotels to cut their costs thus bringing the average service prices little lower. The strategy of cutting costs may lead to increased profitability that is one of the major benefits to the hotel. Once hotels begin reducing their expenditure, the ultimate result would be revenue-exceeding expenses by a bigger margin hence increased profits. Such affordable charges lead to increased market share due to massive customer base.
However, one of the risks of cutting costs is that quality of services delivered will have to suffer since Hilton still has to break even and/or make profits. At the same time, reducing costs may also lead to downsizing within the company hence making majority lose their jobs. Generating alternatives Possible solutions involve forming partnership with other highly rated hotels for the purposes of maximizing on costs and reinforcing brand image. This is possible through incorporation of modern ways of product modification for the purposes of satisfying current consumer needs and tastes.
At the same time, Hilton requires professionals with the ability of predicting and analyzing market trends, especially in yield management plan. The company should consider the use of internet in advertising since majority clients use internet and social sites for communication based on purchases and deliveries. There is a profound need to work out on Hilton’s business models with change of strategy within recommended market segments. Such strategy would ensure returns amidst expected market uncertainties.
There is a need for extensive training of marketing professionals within the international market. Diversification on their services portfolio should be considered since consumers prefer affordable valuable services that save on time and money. Pricing techniques used by the company requires change since they deal with both domestic and international clients; such pricing as geographical pricing techniques is applicable in this case. Quality services, pricing and marketing strategies should vary depending on the demands within the industry.
In this case, service marketing seems vital since it plays a vital role in building prospects within hotel industry. Excellent services tend to play a vital role and therefore satisfaction, value and quality are essential for a successful marketing service venture. Concerning Hotel management, individual Hotel units using yield management should control pricing as well as allocation of strategies based on their inventories. Devolving activities enables easy adjustment on individual systems based on the needs and requirements of various customers.
The Term Paper on Hotel Management System 2
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including ensuite bathrooms and air-conditioning or climate control. The cost and quality of hotels are usually indicative of the ...
However, revenue management should involve interlinking individual systems with Hilton group CRS system. This ensures easy monitoring of various updates. Hilton management should integrate the hotel’s CRS into e-business component for purposes of easy management of operations. This provides an instant update within CRS system whenever individual hotels allocate and price their inventories. Such system would ensure upgrade of loyalty program since customers would utilize e booking which ultimately contributes to increase in the number of bookings.
According to the case, there is a need to simplify financial system through application of CRS system within hotels and group level. At the same time, development of third party websites can assist in reservation processes hence making it easier for travel agents. Consequently, utilization of such wide range of installations, assist in an optimization of available hotel capacity globally; hence individual hotels benefit from international booking irrespective of location. Expert-run system is applicable for the purposes of managing information inflow and out-flows.
Such remissions are possible through centralization of various activities within the headquarters. This system provides a central approach in handling various discrepancies within Franchisees. This is since all units under Hilton umbrella share information on their various challenges and solutions hence providing easy task when it comes to decision making within various subsidiaries. Information shared through such system is recognizable by other hotels based on reliability and management scrutinizes integrity since it before other constituent hotels can access.
The Business plan on Information Systems And Management: Decision Making In Business Organizations
Introduction:Barletta’s Fine Foods (BFF) Ltd operates from King’s Norton in south Birmingham and supply food products to various retail outlets and restaurants. The company has performed well in the past and has ambitious growth plans for the near future, however there are problems in various functional departments of the company that have hindered its growth. Top management is ...
At the same time, Hilton should utilize the use of document sharing for the purposes of ensuring that some aspects within the group require maintenance at standard levels. These include such aspects as organizations principle objectives, mission and vision and code of ethics. All these information is possible across the company’s network system. Internet search engines such as Google Docs utilization for the purposes of enabling corporate coordination of organization’s branches as well as employees.
This enables easy and effective retrieval, re-creation, and use of confidential information within operations. Selecting decision criteria From the case study, pricing is not applicable as the key differentiating factor. However, it still matters in consumers’ decision-making processes hence making it a factor worthy of consideration. There are key issues surrounding maintenance of open communication lines with customers, for purposes of conforming to the ever-changing consumer demands as well as identifying lucrative areas within their chain of activities.
At the same time, Hilton’s success within the industry is dependent on their broad assessment of consumer needs and preferences within the target market. Decisions are considerable on segmentation criterion that presents vast opportunities to the company, since it makes possible the process of identifying specific customer needs hence implementation of appropriate measures. Successful implementation of electronic revenue management system enables consolidation of all hotel operations within common network.
There is total improvement in management of various Hilton Franchisees within the entire market that is recognizable through overall market performance hence possibility of making necessary adjustments within trends and development programs. Renovations within the revenue management system and CRS booking system would contribute towards development of forecast system capable of optimizing sales and pricing strategies. Such development reduces stress within management hence yield managers have the ability of making necessary adjustments based on informed decisions.
The Review on Hotel Management System 3
... gathering. Here we gather information about basic hotel management system functionalities. Joint Application Development (JAD) will be used as fact- ... electronic means. The system will assist management in its day-to-day business activities, make decisions. 1.2 Subject and ... about their reservation status is also time wasting. Also management of these hotels finds it difficult manually keeping records ...
Technological developments boost efficiency in revenue management. There is significant savings on commissions for travel agents owing to direct bookings involved. There is easy tracing of financial transactions and systems leading to saving on time and cost. Extensive research provides data on effective marketing campaigns and associated growths. This begs the question on how some specific companies usually perform so well in a recession, when so many companies tarry.
However, this could be explained based on the discovery of some information about specific five-star hotels and their rise in the number of customers and takeover of branches. Despite all these, experience within such industry reveals that it is rather expensive in beach hotels compared to other similar hotels. For this reason, management should identify existing gap in knowledge regarding hotels within other lucrative markets, and their success during difficult times.
