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How to improve the hotel's facilities and services in order to attract more of this kind of

customers
Written by .5/1/2015
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Introduction
Understanding what motivates people to take action is the underlying force that allows
the best hotel management companies to increase demand for their guest rooms. Selling your
hotel to the traveling public is a very complex process. Attention must be paid to every detail. If
you can provide more of what a guest wants at a better price than the competition, word will get
around and your occupancy rate will soar.
Market segment -- whether it's luxury, economy, or something in between -- largely determines
what customers want most in a hotel stay. Though customers in all segments value price,
reputation, room quality, and location when choosing a hotel, these basics merely cover the cost
of entry in today's competitive hospitality industry, and they offer no guarantees for winning
repeat business.
To achieve sustainable, long-term growth, hoteliers must develop a deep understanding of the
type of customers they want to attract, then offer an experience that is tailored to that specific
group. By becoming more attuned to the preferences of current and potential guests in their
segment, hospitality companies can more accurately target and build meaningful, lasting
relationships with them.
Hotel Analysis
Hilton was founded by Conrad Hilton in year 1919 and Hilton hotels and resorts can be
identified as a global leader of the hospitality industry. So over than 94 years of the experience

within the industry, Hilton has continued to be the best service provider through their innovative
approaches with the products and services as well as the amenities. Basically their innovative
concept of the restaurants has led to establish full service hotel brand consisting with more than
4000 hotels & more than 480000 rooms over the 90 countries among the 6 continents in the
world.
According to the Forbes Magazine, the Hilton can be identified as the most successful
series of hotel as well as the 38th of money generating company in globe.So The Hilton owns, a
largehotel portfolio consisting highly regarded hospitality brands worldwide, including Hilton,
Conrad Hotels & Resorts, Doubletree, Embassy Suites Hotels, Hampton Inn, Hampton
Inn & Suites, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton and
The Waldorf Astoria Collection And also the hotel ensures their uniqueness of the service
through their special service called as Request upon Arrival service which totally depends on
the customer specifications which has done in the moment of the check in. Not only that but also
the team members are very friendly and offering the individualized service for the guests while
satisfying their all needs through the range of services provided through the on-site fitness
centers as well as the spas etc. according the company values, the hospitality or the delivering an
exceptional guest experience can be identified as the core value and the core purpose of the
entire business and today, it has become a global citizen while earning both LEED & the
certifications of Green Seal environmental as being the wining pioneer of those certifications in
the worldwide hospitality industry.

Gallup's 2014 Hospitality Industry study analyzed six distinct segments of the hotel market -luxury, upper upscale, upscale, upper midscale, midscale, and economy -- to discover what
guests really want from hotels. The findings illuminate what guests look for in a first booking as
well as what engages them and drives their repeat business.
Engaged customers are less price-sensitive

Every hotel should make engaging customers its primary goal, becausefully engaged guests -those who are emotionally attached to a brand -- provide a financial premium, regardless of
market segment. Customers who are fully engaged are less sensitive to price because their
emotional connection with the brand moderates their concerns about cost. This holds true for
every segment in this study and for every industry Gallup has studied.
Overall, about one in every five hotel guests is fully engaged. But Gallup analysis shows that this
percentage differs vastly by segment.

Customers of higher-priced hotel chains tend to be more engaged than those of lowerpriced brands. One-third of luxury guests are fully engaged -- the highest percentage for
any segment -- and this segment is also the most lucrative. Luxury customers spent an
average of $910 at the hotel they visited most frequently over the past 12 months.

Economy guests are the least likely to be fully engaged (12%) and spent $176 on average
at the hotel they visited most frequently in the past 12 months.

Appealing to new customers

The journey toward creating a "customer for life" begins with a guest's first stay. Beyond
the factors guests require from all hotels -- quality, convenience, price, and brand
reputation -- hoteliers must carefully examine their target segment for cues on how to
entice new customers. Gallup found that when luxury and upper upscale guests select a
hotel for the first time, creating the right environment is vital to winning them over. These
customers value the look and feel of the property, and they trust their own judgment and
observations when choosing a hotel for the first time.

Customers in the remaining segments, on the other hand, are heavily influenced by others
when deciding to book a hotel for the first time. Upscale customers rely on
recommendations from friends, while upper midscale guests defer to the preference of
family members and friends. Midscale guests depend on information on the hotel's

website when initially deciding to book a room. The exception is economy customers,
who rely on a hotel's brand reputation when booking an initial stay.

Encouraging repeat customers

Price, location, and quality remain top considerations for all customer segments in repeat
booking. However, a hotel's brand reputation becomes less crucial at this stage, as
customers focus less on the hotel's image and more on their personal relationship with the
brand. To encourage guests to return often, hotel staff must provide them with reliable
service, solve their problems, and respond enthusiastically to their needs from the very
first visit. When employees help guests solve problems, those customers can become
more engaged than guests who didn't experience a problem during their stay.

For luxury guests, price is not a top factor in repeat booking. The look and feel of the
hotel continues to be a crucial consideration, but responsive employees and their ability
to solve problems become more important. Service reliability is important to upper
upscale and upscale guests, while responsive employees appeal to upper midscale and
midscale guests. Economy customers also value employees who are responsive and can
solve problems, but they still put price first when rebooking, as do midscale customers.
Even the most price-sensitive midscale and economy guests who are fully engaged spend
more than their actively disengaged counterparts.

The amenities that matter most


Hotels can be prone to "gold plating," or adding services and products that increase cost but don't
necessarily boost market share. To avoid this trap, hoteliers must understand which products and
services are meaningful to the customers they want to attract so they can offer amenities that will
entice customers without increasing price to a level that will drive guests away.
Gallup's analysis shows that overall, customers strongly agree with eliminating specific services
-- such as the hotel retail shop, the hotel bar, concierge services, in-room dining, the fitness
facility, and luggage services -- to pay less for their stay. Customers in every segment strongly

agree with doing away with the hotel retail shop. Luxury and upper upscale guests strongly agree
with jettisoning luggage services, while upscale and upper midscale guests would give up inroom dining.
Guests overall strongly agree that they would be willing to pay much more for significantly
improved services such as Internet connectivity, comfortable beds, and responsive employees.
Luxury guests strongly agree with keeping and improving comfortable beds, in-room dining, and
responsive employees, while customers in all other segments strongly agree with keeping and
improving Internet connectivity, comfortable beds, and responsive employees.
When asked which hotel products customers would give up to lower costs, more than half of
guests strongly agree they could do without the in-room bar, robes, and valet parking. Customers
across all segments strongly agree with eliminating the in-room bar, robes, guest room radios,
and valet parking.
About half of guests overall strongly agree that they would be willing to pay more for
significantly improved in-room television, bathroom soap, and complimentary Internet. Luxury
customers strongly agree that they would pay more to improve bathroom soap products; upper
upscale and upscale customers would improve free Internet; and upper midscale, midscale, and
economy customers would like a nicer television -- and would be willing to pay for one.
Creating customers for life
Certain elements -- such as price and location -- are understandably important in bringing firsttime customers through the door. If employees can create an emotional connection with guests
during their initial stay, they'll be more likely to return the next time they need a hotel, even if
another brand is offering a better price or a more desirable location.
The first visit is a crucial opportunity for hotel staff to create a customized, differentiated
experience that will encourage guests to keep coming back. Winning repeat business comes
down to understanding what is important to customers of your hotel and its market segment,

offering products and services that matter most to guests, and ensuring that your staff members
understand and can deliver on guests' preferences.
Hotel staff members who can handle problems with ease, provide reliable service, and be
responsive to customers' needs represent an enormous competitive advantage. Gallup analysis
suggests that hotels would be far better off if they cut amenities that customers don't value and
invested those savings in selecting and developing employees with the right talents and problemsolving skills to engage guests with world-class service. By engaging customers, hotels are more
likely to reap significantly higher share of wallet from their "customers for life."
Recommendations
Here are some recommendations for hoteliers to consider as they work to engage customers in
their hotel's segment:

In the economy segment, which makes up 19% of the hospitality market, about one in
four customers are actively disengaged. So brands that turn these customers around can
potentially attract a substantial share of this market. Hoteliers should not assume that
economy guests are driven solely by location, quality, and price point when booking
repeat visits. Once these criteria are met, economy guests look for hotels with responsive
employees who can solve problems. These hotels typically operate with just a few
employees, so their performance is particularly crucial in creating engaged customers.
Selecting and developing the right employees will help economy hotels create guests who
are fully engaged with the brand.

Luxury and upper upscale customers consider the look and feel of the hotel as one of the
most important factors for first and repeat visits. They tend to rely on their own
observations about a hotel, rather than others' recommendations, when booking a stay.
Previous Gallup analysis showed that guests who perceive a hotel lobby as energized and
enthusiastic are more likely to stay at that hotel more often than guests who feel a lobby

is orderly and business-like or chaotic and disorderly. So luxury and upper upscale brands
should hire and train staff who can set the right tone.

Astute hoteliers should challenge industry norms, such as the current standard of having a
bar in every luxury hotel -- or excluding a hotel bar from an economy hotel. Though
hoteliers should evaluate decisions like these with profitability, hotel positioning, and inhouse and local market demand in mind, a hotel bar could address an unmet need and be
a draw for economy guests.

Not all guests prefer viewing streaming content on their personal devices over watching
television. Guests across all segments strongly agree that they would pay more
for improved televisions and cable channels in their rooms. Hotel guests might want to
watch movies on a personal device, but they also want to view programs such as sports
events or news programs on their guest room television.

Though Gallup's analysis suggests that brand reputation is a top factor when customers
select a hotel for the first time, guests prefer responsive employees when booking a
repeat visit -- and this is true across all segments. Similar findings have emerged in other
service industries, indicating that responsive employees are crucial to building brand
engagement. All hotel segments can benefit from selecting talented employees, creating
an engaging work environment, and training employees how to resolve guest problems.

Training & Development at Hilton


Here the Hilton is basically using some techniques and the programs of T&D of their employees
such as On the job training, instruction training, apprenticeship Training, internship programs,
Hiltons fast track development program, Hilton University and graduate management
development programs, HR talent @ Hilton, web based solutions, top gear development
programs etc(Hesketh, Fleetwood, 2006)

The main purpose of the Hiltons training and development programs as described earlier
is to attract, retain and develop their talents while delivering proactive HR service in cost
effective manner and business driven manner in order to contribute to the overall profitability of
the company ultimately. So through this main purpose of the employee training, it can be seen
that the T&D is basically aimed to accomplish the organizational goals and objectives
successfully. Here the Hilton believes that the talent employees are capable of enhancing their
overall service quality and thereby the overall productivity of the organization. Within the
Hiltons training and development programs like web based solutions, the organization enables to
see where the people are in now on their talent curve and if they ready to step up into the cluster
or regional position. (Fleetwood, Hesketh, 2008)
So here the Hilton aimed to enhance the overall productivity of the employees while
updating their existing knowledge, competencies as well as the skills in order to be match with
the modern contemporary business world and thereby enhance their overall strategic competitive
advantages of having such pool of talents within the organization in order to accomplish the
overall goals and objectives like enhancing the profitability, market share, reputation, customer
satisfaction, total quality of the products and services, to be the market leader etc ultimately.
(Hesketh, Fleetwood, 2006)According to their core values of Hilton, the team works (we are the
team players in everything we do) are the most important factor of managing the employees
efficiently and effectively.

Hilton is basically using some techniques and the programs of T&D of their employees such as
On the job training, instruction training, apprenticeship Training, internship programs, Hiltons
fast track development program, Hilton University and graduate management development
programs, HR talent @ Hilton, web based solutions, Top Gear Development programs etc. while
aiming to attract, retain and develop their talents to deliver proactive HR service in order to
contribute to the overall profitability of the organization ultimately.

Advantages of T&D at Hilton

The company is capable of attracting, retaining and developing their talents in order to

get their maximum contribution to the organization


The company can enhance their employee productivity and thereby the overall

organizational productivity
Hilton can enhance their profitability with the sustainable competitive advantage of

having pool of talents with them


The employees are capable of identifying their future career development path in order to

improve their existing knowledge, skills and the attitudes.


The employees enable to get the update knowledge and competencies within the

contemporary business world while enhancing their personal value as well


The company can adapt with the changes in the world while successfully overcoming
from the resistance to change.

Disadvantages of T&D at Hilton


However there are some advantages to the company through their existing T&D programs and
techniques, there are some disadvantages too. So the main effect is the cost of training is
becoming very high and it lead to enhance the overall administration cost of the company.
Ultimately it leads to reduce the profitability as well. And also there are some issues related with
the time consuming of the top level managers as well as the middle level managers to identify
the employee training needs. Not only that but also it will lead to make some disturbances to the
overall productivity of the organization when it is using the on- the- job training method.
Likewise T&D is having some adverse effects to the Hilton and the organization should have to
mange those barriers successfully. (Fleetwood, Hesketh, 2008)
Marketing
According to Bennett (1995), "The process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchanges that satisfy
individual and organisational goals.
According to handouts The American Marketing Association defines marketing as, "The process
of planning and executing the conception, pricing, promotion, and distribution of ideas, goods
and services to create exchanges that satisfy individual and organisational goals."

Facets of Marketing: Marketing has two sides first is philosophy, an attitude, a perspective or a
management orientation that stress customer satisfaction. Second marketing is a set of emotions
used to implement this philosophy. This is the marketing process.
In hospitality marketing, the product is the experience of the guests. This experience has both a
goods component (like food) and an interactive component, which we call service. In practice,
hospitality employees become part of the product (experience). Another way every employee is
part of the guests' experience, because the typical hospitality organisation is highly personal and
interactive.
APPROACHES TO MARKETING
Product orientation: Product orientation means focuses on the internal capabilities of the hotel
rather than on the desires and needs of the marketplace. The benefits offered by a product or
service can include:
Convenience and accessibility.
Good after-sales technical support and advice.
Comfort and ease of use.
Accountability- the knowledge that if things go wrong, the manufacturer will put them right.
Courtesy and helpfulness of staff.
Attractive, appropriate and efficient design and packaging.
Peace of mind- the knowledge that you can trust the hotel, that your needs are understood and the
good or service you have purchased will not let you down.
Sales orientation: A sales orientation is based on the ideas that people buy more goods and
services. In marketing a product is important to establish a unique selling proposition which sets
business, brand or product ahead of the competition. Creating a unique selling proposition is
particularly important in providing services. Unique selling propositions are usually set out in

advertising. Therefore, the focus of a sales orientation is still the product, or what an operation
has to offer.

Marketing orientation: Marketing is based on the ideas how the product comes out in the market.
The right place is profitable for the product. It focuses on customer wants and needs and
integrating all the organisation's activities, including production, to satisfy these wants.
Achieving long-term goals for the organisation by satisfying customer wants and needs legally
and responsibly.
Societal Marketing Orientation: The Societal Marketing Orientation is the newest marketing
concept. This concept holds that the organisation should determine the needs, wants and interests
of target markets and deliver the desired satisfaction more effectively and efficiently that
competitors in a way that maintains or improves the consumer's and society's well being, whether
the marketing concept is adequate in the age of environmental problems, resources shortage,
rapid population growth, worldwide inflation and neglected social services. The pure marketing
concept ignores possible conflicts between short run consumer wants and long run societal
needs. Like a Hotel, Hotel chains have established no-smoking floors and no smoking sections in
their restaurants. Fast-food restaurants that practice the societal marketing concept pursues more
environmentally sound packaging and produce foods with more nutritional value. Resort
developers must consider the impact on the environment not only of their initial construction but
also of the disposal of waste products and their use of water.
MARKETING PLAN
Marketing plan is designed to implement the strategies chosen at the corporate and strategic
business unit levels. Writing a marketing plan of the hotel allows you to examine the hotel
environment in conjunction with the inner working of the business. The marketing plan allows
the marketing manager to enter the market place with an awareness of possibilities and problems.
SWOT Analysis

HHC, like all major hotel corporations, is continuing to recover from the events of Sep.11th. This
tragic human event also delivered a financially devastating blow to the travel industry as a whole
and to the hotel industry in particular. In order to fully recover and thrive in the coming years,
HHC must assess its overall all strengths and weaknesses as it moves forward through the new
millennium. The following SWOT Analysis sheds some light on some of the pitfalls and
opportunities that await the Hilton Hotels Corporation.

Strengths
Strengths are the positive aspects and distinctive attributes; It provides a significant market
advantage. Strength is essential part and power of the hotel.
Brand Recognition: Hilton has a good reputation and their name is well known. Hilton is a leader
in the hotel industry. It's good to make their product, their packaging and their tangibles look
different to those of their competitors, it is essential to make them support their brand values.
Demand-Supply gap: Hotel remains proper gap in demand and supply products. It gives good
results to the hotel and get promotion.
Diversification of products: Hilton is more than hotels. They also generate revenue from gaming
and entertainment. By being involved more than one industry. Hilton has a benefit of drawing
from one part of its business if another part becomes less lucrative. Gaming and entertainment
(as well as hotels) serve different customer's needs. While this diversity does not automatically
insure success, it does help the company to balance out its profits across three areas of the
business.
Hilton Hotel Corporation (HHC) is a well established organization and industry leader in the
hotel, hospitality and gaming industry
HHC is well diversified across the industry with hotels in the high end, business and mid-priced
classes in their product mix

Brand recognition
HHC also possesses solid integration features such as owning the companies that manufacture its
furniture and has invested in online reservation travel enterprises
Hotel facilities: 'Hilton Hotel' has a full service spa, a health club, an outdoor-pool, a steam
room, a sauna, wireless and wired high speed internet access is available in public areas. The
luxury properly features two restaurants for surcharge, guest receive, transportation including an
airport shuttle and an area shuttle. Guest parking is complimentary. Event facilities consist of a
ball room and conference/meeting rooms. The staff can arrange concierge services, wedding
services, event catering. Guest Rooms features coffee/ tea makers and complimentary bottle
water. Bathroom offers separate bathtubs and showers with handheld showerheads, phones,
scales. All guest rooms are non-smoking. There are no room charges for children 12 years old
and younger who occupy the same room as their parents or guardians, using existing bedding.
The following fees and deposits are charge by property at time service, check -in check-out. In
last, laundry facility, massage-spa treatment room and wheelchair are also available.
Hilton Hotels are known for a high level of comfort and prestige. The Port of San Diego and
Hilton are planning to develop a 1200-room hotel on the waterfront adjacent to the San Diego
Convention Canter. The prestigious Hilton Malta promises the best in accommodation and a high
standard of service for which Hilton hotels are renowned. For business or pleasure the
Homewood suites by Hilton hotels are designed with all the comforts of home in mind. The
Hotels are the "Official Hotel Group of UK Athletics and the Great Britain and Northern Ireland
Athletics Team." Hilton Hotels are now building computer files on customer preferences using a
system called On Q, pronounced "on cue". The Hotels are known across the globe and offer a
choice of 2700 quality hotels in the UK, Europe, Asia, America, Africa and Australia.
Hotel chain: Hilton Hotel develops many countries. This is the deluxe hotel in the Newyork city.
Hotel chain is vital part of the strengths of the hotel. Hilton hotel is worldwide.
Customer Satisfaction: Customer satisfaction with a purchase depends upon the product's
performance relative to a buyer's expectations. A customer might experience various degrees of
satisfaction. If the product's performance falls short of expectations, the customer is dissatisfied.

If performance matches expectations, the customer is satisfied. If performance exceeds


expectations, the customer is highly satisfied or delighted.
Expectations are based on customer's past buying experiences. Hotel strengths with customer
satisfaction as table setting, better offers, easy switch suppliers, location and good management
team etc.
Weaknesses
HHC may be two narrowly focused making it vulnerable to a downturn in the global economy
and other world-wide catastrophes that could limit global travel such as the bird-flu and a
significant terrorist strike
HHC may be vulnerable to workers' strikes and crack down on undocumented workers in the
U.S. Most of its holdings are in the U.S.
Opportunities
HHC should offer an array of distinctive and specialized services to the high end guests and high
rollers such as
Wedding planning & hosting
Spas that specialize in personal services
Personal trainers
HHC should look to expand into or acquire a cruise line
A cruise ship is little more than a hotel that floats this would essentially match what it currently
does with its leased properties
Gaming activities would escape regulation, etc.
Take advantage of emerging markets, especially with business class and mid-priced markets

Threats
HHC must be careful not overextend its efforts to mix entertainment and gaming
Also the extension of credit and other side effects of gaming can slowly but surely nibble away
profits
September 11th was a major blow to the hotel industry. A similar event could result in another
down turn.
The hotel has many competitors like the Oberai Towers, the Marine Plaza, The Orchid, Le
Meridian etc.
Relationship Marketing: Relationship Marketing involves using methods and tactics to develop
long term relationship with customers in order to retain them. An organisation must exceed
customer satisfaction to develop a healthy relationship with customers. Traditional transactional
marketing involved the organisation focusing all of its marketing efforts on attracting the
customer for one off sales.
Company must put into place tactics to attract customers. To attract customers promoting the
product and brand, offering good quality products, services and competitive prices. Attracted
customers to be retained with organisation. Methods used to retain customers include Loyalty
cards, a good customer service, product variety and quality.

Conclusion

Ultimately it can be concluded that the current situation of the HRM function in Hilton hotels
and resorts are in favorable condition and while engaging with the key HR activities in a holistic
manner. There it could be able to see that the overall organization is trying to accomplish their
ultimate goals and objectives through the development of their talents and enhancing the overall
productivity of them. And also there the company should have to concern about the legal

framework which affects to the HRM in taking their main decisions related to the permanent and
temporary employees. And also Hilton is using a systematic approach of recruiting and selecting
their employees to fill the labour demand. Finally there can be identified both good and adverse
effects of the T&D within the organization to accomplish the ultimate goals and objectives
successfully. (Fleetwood, Hesketh, 2008)

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