Preview

How Hilton Hotels Builds a Relationship with Its Customers

Powerful Essays
Open Document
Open Document
1936 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
How Hilton Hotels Builds a Relationship with Its Customers
Introduction
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

Inbound Logistics
Hilton Hotels have several suppliers in each country in order to have sufficient supplies as part of a good quality service for

You May Also Find These Documents Helpful

  • Good Essays

    “Wyndham” Case Study

    • 941 Words
    • 4 Pages

    In order to deal with ways to sustain Wyndham’s competitive advantage built by the ByRequest initiative, we first need to get acquainted with its business values; Wyndham’s ByRequest program created a comfortable and memorable upscale guest experience and shaped recognition in the industry from a customer service standpoint. Being still a relatively new program, the company was limiting its focus on analysis and thus conducted limited historical study and no collection of a typical demographic data like age, income etc. But while its impact on revenues was still small, it was a success in defining Wyndham’s brand. In order to keep and even extend this current competitive advantage over time, the company needs to leverage its growing membership base and better utilize customer service. The hotel guest of the future will be far savvier and discerning; with the world at his feet and a world of information at his fingertips, the challenge for hotels to sustain connections with guests will only increase. Wyndham is an example to a company where IT is tightly intertwined with business operations and strategy. The adoption of the ByRequest program proved recognition for the dual role of IT in creating operating efficiencies while also driving business insight, innovation, and proprietary advantage. But, the way to achieve and also sustain the business value mentioned above will be based on a combination of management capabilities, assets, expertise and technology. Technology itself usually cannot provide the required competitive advantage over time given the fact it can be replicated easily. Using even the simplest and cheapest form of Customer Relationship Management (CRM) software mechanisms will help in attracting and keeping customers. Many of these CRM packages have facilities that help to acquire, retain and grow profitable customers and also maintain healthy, measurable business success. They help to monitor real-time results of marketing campaigns and track…

    • 941 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Managing the Value Chain

    • 1038 Words
    • 4 Pages

    Successful companies are successful because of their ability manage the intrinsic concept which develops and evolves their value chain and competitive advantage. The purpose of this paper is to provide the reader with a compelling argument as to why an effective value chain creates competitive advantage. The author will also discuss and provide an analysis of the following: three critical concepts when thinking about how a value chain creates competitive advantage in relation to the value chain, competitive advantage, and customer delight. The author will also discuss the inter-relationship of these three concepts, provide examples of successful companies, and finally, provide examples of unsuccessful companies.…

    • 1038 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    The Hilton HHonors Worldwide reward programme can be compared with several other loyalty or recognition programs offered by leading hotel chains of the world. Similar programs are being offered by many airlines, department stores, car rentals, video and book retailing, credit cards, movie theaters and several other international entities in the service industry.…

    • 1987 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    In 1999, The Starwood Hotels and Resorts Worldwide raised their cost by announcing their new aggressive frequent-guest program that was accompanied by a fifty million dollar advertising campaign. The head of Hilton HHonors program, Jeff Diskin, recognized their competition and realized Hilton would have to raise their costs to keep up with demand. Two entirely unrelated corporations controlled Hilton brand: Hilton Hotels Corporation (HHC) and Hilton International (HIC). At this point in time, Hilton was very well recognized, but was limited because of a varying product from property. In return, this challenged customer expectations due to such a variety of product offerings. Hilton’s customers needed a standard of what to expect no matter which division of Hilton properties they visited. Starwood represented more than 550 participating properties worldwide, and they were adding program features that might be too expensive for Hilton to match. Such as no blackout dates (no matter what day or season, reward points were always able to be redeemed), no capacity control (all unreserved rooms were available), paperless rewards (properties able to accept points for a stay) , and hotel reimbursement (since more dates were available with no blackouts, Starwood charged hotels 20%-100% more than competition.…

    • 930 Words
    • 4 Pages
    Good Essays
  • Best Essays

    As an approach for analysing competitive advantage, the value chain concept describes the operations of a firm in a particular industry as a linkage of activities that are performed to add value to a product (Porter, 1985). Based on this model, a distinction between a supply chain and a demand chain can be drawn. While the demand chain comprises the sequence of market-orientated activities that drive and sustain the end-customers’ needs for a certain product, the supply chain primarily focuses on the opposite part of the value chain: It represents a system of interrelated organizations that are involved in the production processes of a good, beginning with the procurement and processing of raw…

    • 1341 Words
    • 6 Pages
    Best Essays
  • Better Essays

    Tesco Value Chain

    • 1024 Words
    • 5 Pages

    The notion of the ‘value chain’ was first created by Michael Porter. The concept of having a value chain in any business is for it to develop a sustainable competitive advantage in the industry that it operates in. All organizations entail various activities that link together to create the value of the company, and together these activities form the organisation’s value chain. The Value chain of any industry always begins with the production of raw materials and ends when the final product is delivered to the consumer. The primary aim of the value chain framework is maximize value creation while minimizing the costs involved.…

    • 1024 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Hilton Case Study

    • 1453 Words
    • 6 Pages

    The problem identified is that Hilton HHonors need to decide how to approach a different positioning stand and focus on differentiating its loyalty program from the recently announced Starwood Preferred Guest and other competitors rather than to match their program with Preferred Guest. It is recognized that other competitors such as Hyatt and Marriot who are part of the big players in the hotel industry have not respond to Starwood’s announcement. Thus, Hilton will need to decide how to differentiate HHonors from other competitors.…

    • 1453 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    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 world's 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).…

    • 2215 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Effective value chain as a competitive advantage can contribute significantly to the prosperity of a firm in the competitive arena, but it can cause dire situations if not operated properly (Guy, 2011). However, there are conflicts among companies as to how stakeholders think they gain competitive advantage. Porter (1996) suggests: A company can outperform rivals only if it can establish a difference that it can preserve. It must deliver greater value to customers or create comparable value at lower cost or do both. The arithmetic of superior profitability then follows: delivering greater value allows a company to charge higher average unit prices; greater efficiency results in lower average costs (Walters & Rainbird, 2007, p.25).…

    • 1287 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Radisson’s president, Brian Stage and executive vice president, Maureen O’Hanlon realized the detrimental effects this strategy had, not only on their hotel quality but on their brand image as well and decided to take several initiatives in 1997 and 1998 (Schroeder, 2008). These initiatives were to be more customer-focused and earn Radisson Hotels Worldwide the reputation of a “customer-driven learning organization.” The model was to change from “growth at any cost” to “champion of the guests.” To make this change, the 100% guest satisfaction guarantee program was devised. It was the responsibility of Sue Geurs, recently appointed Director of this program, to improve Radisson’s overall service quality through analysis of all the factors that affected operations, e.g. financial justification, marketing with technology. To support this new strategy, a fully integrated guest information system was developed that included the three “pillars” of information technology as described by Schroeder (2008); the Curtis-C system worldwide distribution (reservation) system, the customer database (Customer-KARE Systems), and the Harmony property management system.…

    • 1485 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Case

    • 251 Words
    • 2 Pages

    1. How does Hilton HHonors program deliver value to its two parents, Hilton Hotels and Hilton International?…

    • 251 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    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 world 's 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. In an attempt to become even more aggressive, the Hilton 's decided to change its direction by venturing into the gaming industry.…

    • 1181 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Andrews, S., (2013) Hotel Front Office: A Training Manual. New Delhi : Tata McGraw-Hill Education.…

    • 5509 Words
    • 23 Pages
    Powerful Essays
  • Better Essays

    Conducting business in more than one place - Hilton Hotels has establishments in Las Vegas, Lake Tahoe(Nevada) and across the…

    • 2709 Words
    • 11 Pages
    Better Essays
  • Good Essays

    Group Case Pegasus

    • 931 Words
    • 3 Pages

    Understanding what buyers value within a given offering, creating value for them, and then managing it over time have long been recognized as essential elements of every market oriented firm’s core business strategy. Pegasus Airlines demonstrated what “aim of marketing” really is for its customer, which is “to create value to customer and capture value in return”. Specifically the case mentioned three theoretical concepts, Truly Customer Focused, More than Amenities and Love your Customers, which would clearly explains a Customer Value Company.…

    • 931 Words
    • 3 Pages
    Good Essays

Related Topics