Tourism Strategy Report Hilton

Running head: TOURISM STRATEGY REPORT 1

Tourism Strategy Report

Student’s Name

Institution Affiliation

TOURISM STRATEGY REPORT 2

Tourism Strategy Report Hilton Inc.

Hilton is among top growing hotel and Hospitality organizations in the world; the company is

present in over 104 countries worldwide with over 800,000 rooms in their properties. The company

has invested in more than 4000 properties across the world making it one of the great forces in the

hospitality industry. Hilton is an American multinational company that deals with both franchise

and management of hotels and resorts across the world. The organization was founded in 1919 by

Conrad Hilton, with its headquarters in Virginia. The company was private until December 2013

when it was enlisted in the stock market. The company was among the top 50 largest private

companies according to Forbes (Hilton Hotel US, 2016).

The Hotel has been in business for about a century, it has developed 14 different brands portfolio

in the hospitality industry, the most notable one is the Hilton Hotel and Resorts, but the company

operates other portfolios such as Hilton Grand Vacations and Homewood Suites. The company

has over 60 million customers who have won awards for customer loyalty. The company has had

a history of success dating back; the success can be attributed to the leadership of the company

and the strategies put in place to ensure the company is successful. Hilton strategies including its

diversification strategies have been able to keep the company on top of the hospitality industry for

TOURISM STRATEGY REPORT 3

many years. The corporation has developed strong vision and mission for the company which has

remained as the driving force towards its success for many decades. The vision guides the

organization as a footprint of what the organization wants to achieve in future.

Mission Statement

The vision for Hilton Hotel is “To become the among the most hospitable organization in the world

by creating unique experiences for customers, important opportunities for the employees, creation

of value for the Owners and a positive effect to the society.” The company vision is to a leader in

the hospitality industry by providing the best quality services that meet customer needs. They main

objectives is to maximize the guest experience, make it memorable. They also run a loyalty

program since 1987; it is to ensure that loyal customers are rewarded for their loyalty customer for

the organization brand (Pride & Ferrell, 2012). The company has come with employee training

strategies to ensure that the mission of the company is met by providing quality services to the

customers. The company also has a mission of involving employees in all of the company’s

undertakings; the company mission is to build a company by creating value for its employees.

Besides the mission, the organization has undertaken steps in strengthening strategic alliances in

the hospitality industry that ensure quality services to their customers. Furthermore, the company

has been active in its corporate social responsibility, protection of the environment and the well-

being of the community has always been at the core of Hilton Inc. mission and strategy.

Strategic Purpose

Vision Statement

The vision of the Hotel is “To fill the world with the light and warmth of unique experience –by

delivering unique experiences in all hotel, all guest and at all times.” The company aims at offering

TOURISM STRATEGY REPORT 4

guest with an exceptional experience. The company has mainly focused on unique experience as

their competitive strategy. The company vision is to offer hospitality experience that is not offered

by any other hospitality company in the world. The luxury experience the company offers aims at

helping people realize their potential by offering the best in the industry.

Objectives

Hilton executive and the management team has been very innovative in their objective strategies;

the objective has played a critical role in the company growth and diversification. The core

objective of the organization is continuous growth, the company growth was estimated to third

from 2007 to 2012, and the organization has set an objective to grow at the same rate by the end

of 2017. The growth aim particularly in areas that Hilton have left behind by other industry leaders

such Marriot and Starwood. Brand improvement is key to their objective; the hospitality industry

is very competitive hence the company objective is to improve its brands as a competitive strategy,

in penetrating the hospitality industry worldwide. Having a balanced scorecard is another objective

for Hilton, the company base their performance analysis on the scorecard. The performance of

each portfolio is assessed on the scorecard so that the general performance of the unit is

established. The management has come up with strategies to steer the company forward

particularly on the international market. The human resource department has also put strategies in

place to motivate and increase output from the employees. The elevator program is one of the

strategies put in place by the human resource to ensure that the company recruits highly qualified

individuals to drive the company towards its goals and objectives. The company has also

undertaken measures to be environmentally friendly by reducing carbon emission and other

environmental conscious programs such as water preservation and consumption levels. Hilton has

TOURISM STRATEGY REPORT 5

a top marketing team in the industry; it's particularly set objectives on becoming the industry leader

in marketing.

Strategic Analysis

SWOT Analysis

Strengths

Hilton operates on a large scale hence it has advantages on economies of scale, it the organization

is considered among the biggest players in the hotel and resort industry in the world. The

company’s products are diversified according to their prices and services hence diversifying the

company portfolio and increasing revenues. Diversification enables the company to meet each

customer’s point of need. The company management has been one of the most effective and

efficient management teams in the industry, they have been able to propel the company to the

international market and stamp their position in the industry (UK Hilton hotels, 2015). The

management has particularly focused on a growth strategy on a foreign market that has seen the

company growth over the recent years. The company reward program for loyal customers is one

of the best; it helps increase customer loyalty across the world. The company also has a good

standing in the stock market both in the United States, United Kingdom and other countries where

it is listed in the stock market.

Weaknesses

The company enjoys economies of scale, but nevertheless, the Hilton has some strategic

weaknesses. The company has a poor communication channel, the communication strategy of the

company has flaws, and it has limited the company operation and expansion. The company has a

weak expansion strategy when compared with its competitors, its competitors such as

TOURISM STRATEGY REPORT 6

Intercontinental have employed effective expansion strategies. Private ownership of the

organization has also been a problem in the past, the company, it is a factor that has limited its

growth and expansion in the past decade. It can be attributed to the few number of people making

important organizational decisions that affect the whole enterprise worldwide. The company has

also received numerous setbacks in their expansion strategy because of the increasing price of real

estate properties across the world. Real estate prices have made it difficult for the company to

acquire new properties and most importantly to offer services and products at a competitive price

because of the high real estate properties prices.

Opportunities

There are many emerging markets that the company can utilize, markets, particularly in developing

countries in Africa and Asia, can be harnessed by the company for their growth and expansion.

Tourism has also increased in the recent years, it can be attributed to the recovering of global

economies from the recession in 2008, and the rise signals an opportunity for the company. Hilton

should work on attracting more of this tourist and most importantly create loyalty to their brand

through quality service Providence (Andreu et al., 2016). New technology in the hotel and resort

industry, the availability of new technologies in the industry offers the Hilton an opportunity to

improve their service delivery and customer satisfaction.

Threats

The hospitality industry is very competitive, Hilton faces a threat from the highly competitive

rivals such Marryat. The company needs to put quality assurance strategies in place to ensure they

are always ahead of their competitors. Fluctuations in global economies is also a major threat for

TOURISM STRATEGY REPORT 7

the company, for instance, the global financial crisis in 2008, it impacted the company negatively

regarding revenues and its expansion strategies. During economic down times, few people travel

hence bringing the industry to its knees. A change in customer taste and preference with many

tourists across the United States going for independent hotels. The company also faces uncertain

future with the fluctuations in oil prices which limit tourism travels across the globe. The company

also faces competition from service substitute industry, with restaurants being preferred over hotels

and resorts. Security matters such terrorism events limits the number of people traveling because

of the fear that this event creates in people.

Strategic Choice

The company has adopted to main strategic choices over the years; the first strategic choice is

expansion strategy for both luxury and mid-priced hotels in new emerging markets in China and

other countries that offer good hospitality industry prospects. The company has been keen to

improve and expand their services in luxury offering hotel ('UK hotels, 2014). The hotel has gone

a step ahead to cater for the rising middle class in many countries by expanding their mid-priced

facilities.

The other strategic choice made by the company is the strategic alliances; the company

management has put a lot of effort in making strategic partnership with key players in the

hospitality industry across the world. The company has made alliances with other companies such

as Cornell; the company carries research and education on hospitality industry which is of

particular interest to Hilton Hotel. It has also formed strategic alliances with other Hotel such as

EIH Limited in India.

TOURISM STRATEGY REPORT 8

Strategic Implementation

Hilton implements its strategic choice through the work of corporate teams in Pacific Asia and the

research and marketing teams in the region who help the management to make decisions on

preferred extended stays and mid-priced facilities (McNeil & Chernish, 2013). The research team

in the region is tasked with studying the market and presenting the corporate team with data upon

which decisions are made and implemented.

Hilton has established four global regions through which its operations are cooperated and

implemented. Strategic implementation follows the cooperation between the executive

management committee team of all the four regions. They work in conjunction with the human

resource department and the corporate communication function to in implementing the strategies.

Evaluation

The success of the strategies can be evaluated regarding the success the company has accrued over

the years; the company has been very successful. The company cash flow was over $ 730 million

in the year 2016. The company has expanded its operation to over 100 countries worldwide with

over 800,000 rooms in their properties. The company has invested in more than 4000 properties

across the world making it among the biggest players in the industry. The management strategies

can be termed as good since they have contributed immensely to the success of the company.

Conclusion

The report shows Hilton is among the leaders in the hotel and resort industry in the world; the

organization has grown constantly acquiring many properties across the globe and operating in

over 100 countries. The success can be attributed to the company strategies; its expansion strategy

has particularly been the key to success. Also, the company strategic alliances have also

TOURISM STRATEGY REPORT 9

contributed greatly to its operation as well as in research and study of the hospitality industry. The

company has been very effective in the implementation of its strategies through the cooperation of

its corporate teams and research teams to ensure successful implementation of its strategies.

References:

Pride, W. M., & Ferrell, O. C. 2012. Marketing. Mason, Ohio: South-Western

Cengage Learning.

UK Hilton Hotels in line for £20 million revamp' 2010, Business Traveller (UK/Europe

Edition), p. 8, Business Source Complete, EBSCOhost, viewed 7 September 2013.

'UK hotels star as Hilton profits rise' 2015, Caterer & Hotelkeeper, 193, 4351, p. 12,

Business Source Complete, EBSCOhost, viewed 7 September 2013.

McNeil, S, & Chernish, W (2013). 'Collaborative Approach to Multimedia Courseware

Design and Development', Journal Of Teaching In Travel & Tourism, 1, 2/3, p. 107,

Hospitality & Tourism Complete, EBSCOhost

Andreu, R., Claver, E., & Quer, D. (2016). Firm-specific factors and entry mode choice and

analysis of Chinese hotel chains. Tourism Economics, te-2016.

TOURISM STRATEGY REPORT 10

Place new order. It's free, fast and safe

Paper type

Deadline

Page count

550 words

Total price: $ 15.00

Our customers say

Jeff Curtis

USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Ian McGregor

UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Shannon Williams

Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."