This study aims to apply the application of value chain to a selected organisation in a service industry. This study aims to use Hilton Hotels as the focus of this paper. The main purpose of this study is to examine how Hilton Hotels builds a relationship with its customers, how it improves the added value to retain customers and what should be improved under the context of value chain to improve the better services in order to effectively deliver customer satisfaction and exceed their expectation. The paper will start from providing brief information about Hilton Hotels and then move on to analyse and discuss the key issues.
About Hilton Hotel
Hilton Hotels is one of the leading international premium hotels in the world. The company was founded by Conrad Hilton (Hilton Hotels, n.d.). It offers full-services hotels and resorts to customers in many major cities around the world. Through different kinds of customer service programmes, it attempts to develop a good relationship with the targeted market. It also attempts to use the ‘Hilton Honors’ which is customer loyalty programme to retain existing customers (Hilton Hotels, n.d.). The programme does not only enable Hilton Hotels to assess quality premium services from the hotel and its affiliated firms, but also helps them to experience the feeling of privilege. How effective are the organisation’s resources in delivering its service offering? Based on the concept of value chain, it can be assumed that Hilton Hotels attempts to add value to its offerings with the use of effective support value chain activities. Hilton Hotels uses different support value chain activities to sustain the effectiveness of primary activities to exceed customer satisfaction and expectation. These can be explained below.
Primary Value Chain Activities of Hilton Hotel
Hilton Hotels have several suppliers in each country in order to have sufficient supplies as part of a good quality service for customers. There are three most important areas that Hilton Hotels pays a lot of attention on because they influence people to pay more for premium services. These include food and drink, pick-up and other motor service and interior design. For example, Hilton Hotels decides to use different suppliers for fresh meat and vegetables to get the best products from suppliers with specialised offers. Once the goods are delivered, food and catering department of Hilton Hotels will store them in the right temperature until they are required. Before they are put in the stockroom, catering staff will put different colour stickers on the package. For example, fresh meat will have the maximum lifetime of five days. If it arrives on Monday, the blue sticker with the word ‘FRI’ should be put on the package to inform the chef and other kitchen staff that it should be used by Friday or otherwise, it should be binned to avoid food poisoning. The same practice is also true for car courtesy service and interior design. For example, Hilton Hotels has a contract with Mercedes Benz and other luxurious car brands to support its car courtesy services, while its interior design is done by a professional firm which will be in charge for all events held at the hotel.
As previously explained, this stage involved with transforming the goods into the finished offerings for end users. At Hilton Hotels, there are many goods that need to get through the operations process before being delivered to the end users. For example, all rooms will be cleaned once the customers check-out to ensure that that they are ready to serve the next guest.
This is about delivering the finished goods to final users. For Hilton Hotels, this is about the presentation of both tangible and intangible products to customers. For example, the room must be spotless and equipped with facilities as promised and advertised. Also, the food should be cooked in the right manner, such as if...