2.HILTON-kind of Consumers
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Transcript of 2.HILTON-kind of Consumers
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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 .5/1/215
!umber of characters ".##"$http%//www.syms.ro/!umarator&de&aractere(
)ntroduction
*nderstandin+ what motivates people to take action is the underlyin+ force that allows
the best hotel mana+ement companies to increase demand for their +uest rooms. ,ellin+ your
hotel to the travelin+ public is a very comple- process. ttention must be paid to every detail. )f
you can provide more of what a +uest wants at a better price than the competition word will +et
around and your occupancy rate will soar.
0arket se+ment && whether it's lu-ury economy or somethin+ in between && lar+ely determines
what customers want most in a hotel stay. hou+h customers in all se+ments value price
reputation room uality and location when choosin+ a hotel these basics merely cover the cost
of entry in today's competitive hospitality industry and they offer no +uarantees for winnin+
repeat business.
o achieve sustainable lon+&term +rowth hoteliers must develop a deep understandin+ of the
type of customers they want to attract then offer an e-perience that is tailored to that specific
+roup. 3y becomin+ more attuned to the preferences of current and potential +uests in their
se+ment hospitality companies can more accurately tar+et and build meanin+ful lastin+
relationships with them.
Hotel nalysis
Hilton was founded by onrad Hilton in year 1414 and Hilton hotels and resorts can be
identified as a +lobal leader of the hospitality industry. ,o over than 4 years of the e-perience
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within the industry Hilton has continued to be the best service provider throu+h their innovative
approaches with the products and services as well as the amenities. 3asically their innovative
concept of the restaurants has led to establish full service hotel brand consistin+ with more than
hotels 6 more than 7 rooms over the 4 countries amon+ the # continents in the
world.
ccordin+ to the 89orbes 0a+a:ine; the Hilton can be identified as the most successful
series of hotel as well as the "7th of money +eneratin+ company in +lobe.,o he Hilton owns a
lar+ehotel portfolio consistin+ hi+hly re+arded hospitality brands worldwide includin+ Hiltonoubletree
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?very hotel should make en+a+in+ customers its primary +oal becausefully en+a+ed +uests&&
those who are emotionally attached to a brand && provide a financial premium re+ardless of
market se+ment. ustomers who are fully en+a+ed are less sensitive to price because their
emotional connection with the brand moderates their concerns about cost. his holds true for
every se+ment in this study and for every industry @allup has studied.
Cverall about one in every five hotel +uests is fully en+a+ed. 3ut @allup analysis shows that this
percenta+e differs vastly by se+ment.
ustomers of hi+her&priced hotel chains tend to be more en+a+ed than those of lower&
priced brands. Cne&third of lu-ury +uests are fully en+a+ed && the hi+hest percenta+e for
any se+ment && and this se+ment is also the most lucrative. Bu-ury customers spent an
avera+e of D41 at the hotel they visited most freuently over the past 12 months.
?conomy +uests are the least likely to be fully en+a+ed $12E( and spent D1F# on avera+e
at the hotel they visited most freuently in the past 12 months.
ppealin+ to new customers
he Gourney toward creatin+ a customer for life be+ins with a +uest's first stay. 3eyond
the factors +uests reuire from all hotels && uality convenience price and brand
reputation && hoteliers must carefully e-amine their tar+et se+ment for cues on how to
entice new customers. @allup found that when lu-ury and upper upscale +uests select a
hotel for the first time creatin+ the ri+ht environment is vital to winnin+ them over. hese
customers value the look and feel of the property and they trust their own Gud+ment and
observations when choosin+ a hotel for the first time.
ustomers in the remainin+ se+ments on the other hand are heavily influenced by others
when decidin+ to book a hotel for the first time. *pscale customers rely on
recommendations from friends while upper midscale +uests defer to the preference of
family members and friends. 0idscale +uests depend on information on the hotel's
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website when initially decidin+ to book a room. he e-ception is economy customers
who rely on a hotel's brand reputation when bookin+ an initial stay.
?ncoura+in+ repeat customers
Irice location and uality remain top considerations for all customer se+ments in repeat
bookin+. However a hotel's brand reputation becomes less crucial at this sta+e as
customers focus less on the hotel's ima+e and more on their personal relationship with the
brand. o encoura+e +uests 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 +uests solve problems those customers can become
more en+a+ed than +uests who didn't e-perience a problem durin+ their stay.
9or lu-ury +uests price is not a top factor in repeat bookin+. he look and feel of the
hotel continues to be a crucial consideration but responsive employees and their ability
to solve problems become more important. ,ervice reliability is important to upper
upscale and upscale +uests while responsive employees appeal to upper midscale and
midscale +uests. ?conomy customers also value employees who are responsive and can
solve problems but they still put price first when rebookin+ as do midscale customers.
?ven the most price&sensitive midscale and economy +uests who are fully en+a+ed spendmore than their actively disen+a+ed counterparts.
he amenities that matter most
Hotels can be prone to +old platin+ or addin+ services and products that increase cost but don't
necessarily boost market share. o avoid this trap hoteliers must understand which products and
services are meanin+ful to the customers they want to attract so they can offer amenities that will
entice customers without increasin+ price to a level that will drive +uests away.
@allup's analysis shows that overall customers stron+ly a+ree with eliminatin+ specific services
&& such as the hotel retail shop the hotel bar concier+e services in&room dinin+ the fitness
facility and lu++a+e services && to pay less for their stay. ustomers in every se+ment stron+ly
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a+ree with doin+ away with the hotel retail shop. Bu-ury and upper upscale +uests stron+ly a+ree
with Gettisonin+ lu++a+e services while upscale and upper midscale +uests would +ive up in&
room dinin+.
@uests overall stron+ly a+ree that they would be willin+ to pay much more for si+nificantly
improved services such as )nternet connectivity comfortable beds and responsive employees.
Bu-ury +uests stron+ly a+ree with keepin+ and improvin+ comfortable beds in&room dinin+ and
responsive employees while customers in all other se+ments stron+ly a+ree with keepin+ and
improvin+ )nternet connectivity comfortable beds and responsive employees.
When asked which hotel products customers would +ive up to lower costs more than half of
+uests stron+ly a+ree they could do without the in&room bar robes and valet parkin+. ustomers
across all se+ments stron+ly a+ree with eliminatin+ the in&room bar robes +uest room radios
and valet parkin+.
bout half of +uests overall stron+ly a+ree that they would be willin+ to pay more for
si+nificantly improved in&room television bathroom soap and complimentary )nternet. Bu-ury
customers stron+ly a+ree that they would pay more to improve bathroom soap productsJ upper
upscale and upscale customers would improve free )nternetJ and upper midscale midscale and
economy customers would like a nicer television && and would be willin+ to pay for one.
reatin+ customers for life
ertain elements && such as price and location && are understandably important in brin+in+ first&
time customers throu+h the door. )f employees can create an emotional connection with +uests
durin+ their initial stay they'll be more likely to return the ne-t time they need a hotel even if
another brand is offerin+ a better price or a more desirable location.
he first visit is a crucial opportunity for hotel staff to create a customi:ed differentiated
e-perience that will encoura+e +uests to keep comin+ back. Winnin+ repeat business comes
down to understandin+ what is important to customers of your hotel and its market se+ment
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offerin+ products and services that matter most to +uests and ensurin+ that your staff members
understand and can deliver on +uests' preferences.
Hotel staff members who can handle problems with ease provide reliable service and be
responsive to customers' needs represent an enormous competitive advanta+e. @allup analysis
su++ests that hotels would be far better off if they cut amenities that customers don't value and
invested those savin+s inselectin+anddevelopin+ employees with the ri+ht talentsand problem&
solvin+ skills to en+a+e +uests with world&class service. 3y en+a+in+ customers hotels are more
likely to reap si+nificantly hi+her share of wallet from their customers for life.
=ecommendations
Here are some recommendations for hoteliers to consider as they work to en+a+e customers in
their hotel's se+ment%
)n the economy se+ment which makes up 14E of the hospitality market about one in
four customers are actively disen+a+ed. ,o brands that turn these customers around can
potentially attract a substantial share of this market. Hoteliers should not assume that
economy +uests are driven solely by location uality and price point when bookin+repeat visits. Cnce these criteria are met economy +uests look for hotels with responsive
employees who can solve problems. hese hotels typically operate with Gust a few
employees so their performance is particularly crucial in creatin+ en+a+ed customers.
,electin+ and developin+ the ri+ht employees will help economy hotels create +uests who
are fully en+a+ed with the brand.
Bu-ury and upper upscale customers consider the look and feel of the hotel as one of the
most important factors for first and repeat visits. hey tend to rely on their own
observations about a hotel rather than others' recommendations when bookin+ a stay.
Irevious @allup analysis showed that +uests who perceive a hotel lobby as ener+i:ed and
enthusiastic are more likely to stay at that hotel more often than +uests who feel a lobby
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is orderly and business&like or chaotic and disorderly. ,o lu-ury and upper upscale brands
should hire and train staff who can set the ri+ht tone.
stute hoteliers should challen+e industry norms such as the current standard of havin+ a
bar in every lu-ury hotel && or e-cludin+ a hotel bar from an economy hotel. hou+h
hoteliers should evaluate decisions like these with profitability hotel positionin+ and in&
house and local market demand in mind a hotel bar could address an unmet need and be
a draw for economy +uests.
!ot all +uests prefer viewin+ streamin+ content on their personal devices over watchin+
television. @uests across all se+ments stron+ly a+ree that they would pay more
for improved televisions and cable channels in their rooms. Hotel +uests mi+ht want to
watch movies on a personal device but they also want to view pro+rams such as sports
events or news pro+rams on their +uest room television.
hou+h @allup's analysis su++ests that brand reputation is a top factor when customers
select a hotel for the first time +uests prefer responsive employees when bookin+ a
repeat visit && and this is true across all se+ments. ,imilar findin+s have emer+ed in other
service industries indicatin+ that responsive employees are crucial to buildin+ brand
en+a+ement. ll hotel se+ments can benefit from selectin+ talented employees creatin+
an en+a+in+ work environment and trainin+ employees how to resolve +uest problems.
rainin+ 6 >evelopment at Hilton
Here the Hilton is basically usin+ some techniues and the pro+rams of 6> of their employees
such as Cn the Gob trainin+ instruction trainin+ apprenticeship rainin+ internship pro+rams
HiltonKs fast track development pro+ram Hilton *niversity and +raduate mana+ement
development pro+rams H= talent L Hilton web based solutions top +ear development
pro+rams etc$Hesketh 9leetwood 2#(
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he main purpose of the HiltonKs trainin+ and development pro+rams as described earlier
is to attract retain and develop their talents while deliverin+ proactive H= service in cost
effective manner and business driven manner in order to contribute to the overall profitability of
the company ultimately. ,o throu+h this main purpose of the employee trainin+ it can be seen
that the 6> is basically aimed to accomplish the or+ani:ational +oals and obGectives
successfully. Here the Hilton believes that the talent employees are capable of enhancin+ their
overall service uality and thereby the overall productivity of the or+ani:ation. Within the
HiltonKs trainin+ and development pro+rams like web based solutions the or+ani:ation enables to
see where the people are in now on their talent curve and if they ready to step up into the cluster
or re+ional position. $9leetwood Hesketh 27(
,o here the Hilton aimed to enhance the overall productivity of the employees whileupdatin+ their e-istin+ knowled+e competencies as well as the skills in order to be match with
the modern contemporary business world and thereby enhance their overall strate+ic competitive
advanta+es of havin+ such pool of talents within the or+ani:ation in order to accomplish the
overall +oals and obGectives like enhancin+ the profitability market share reputation customer
satisfaction total uality of the products and services to be the market leader etc ultimately.
$Hesketh 9leetwood 2#(ccordin+ to their core values of Hilton the team works $8we are the
team players in everythin+ we do;( are the most important factor of mana+in+ the employees
efficiently and effectively.
Hilton is basically usin+ some techniues and the pro+rams of 6> of their employees such as
Cn the Gob trainin+ instruction trainin+ apprenticeship rainin+ internship pro+rams HiltonKs
fast track development pro+ram Hilton *niversity and +raduate mana+ement development
pro+rams H= talent L Hilton web based solutions op @ear >evelopment pro+rams etc. while
aimin+ to attract retain and develop their talents to deliver proactive H= service in order to
contribute to the overall profitability of the or+ani:ation ultimately.
dvanta+es of 6> at Hilton
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he company is capable of attractin+ retainin+ and developin+ their talents in order to
+et their ma-imum contribution to the or+ani:ation
he company can enhance their employee productivity and thereby the overall
or+ani:ational productivity
Hilton can enhance their profitability with the sustainable competitive advanta+e of
havin+ pool of talents with them
he employees are capable of identifyin+ their future career development path in order to
improve their e-istin+ knowled+e skills and the attitudes.
he employees enable to +et the update knowled+e and competencies within the
contemporary business world while enhancin+ their personal value as well
he company can adapt with the chan+es in the world while successfully overcomin+
from the resistance to chan+e.
>isadvanta+es of 6> at Hilton
However there are some advanta+es to the company throu+h their e-istin+ 6> pro+rams and
techniues there are some disadvanta+es too. ,o the main effect is the cost of trainin+ is
becomin+ very hi+h and it lead to enhance the overall administration cost of the company.
*ltimately it leads to reduce the profitability as well. nd also there are some issues related with
the time consumin+ of the top level mana+ers as well as the middle level mana+ers to identify
the employee trainin+ needs. !ot only that but also it will lead to make some disturbances to the
overall productivity of the or+ani:ation when it is usin+ the on& the& Gob trainin+ method.
Bikewise 6> is havin+ some adverse effects to the Hilton and the or+ani:ation should have to
man+e those barriers successfully. $9leetwood Hesketh 27(
0arketin+
ccordin+ to 3ennett $1445( he process of plannin+ and e-ecutin+ the conception pricin+
promotion and distribution of ideas +oods and services to create e-chan+es that satisfy
individual and or+anisational +oals.
ccordin+ to handouts he merican 0arketin+ ssociation defines marketin+ as he process
of plannin+ and e-ecutin+ the conception pricin+ promotion and distribution of ideas +oods
and services to create e-chan+es that satisfy individual and or+anisational +oals.
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9acets of 0arketin+% 0arketin+ has two sides first is philosophy an attitude a perspective or a
mana+ement orientation that stress customer satisfaction. ,econd marketin+ is a set of emotions
used to implement this philosophy. his is the marketin+ process.
)n hospitality marketin+ the product is the e-perience of the +uests. his e-perience has both a
+oods component $like food( and an interactive component which we call service. )n practice
hospitality employees become part of the product $e-perience(. nother way every employee is
part of the +uests' e-perience because the typical hospitality or+anisation is hi+hly personal and
interactive.
APPROACHES TO MARKETING
Iroduct orientation% Iroduct orientation means focuses on the internal capabilities of the hotel
rather than on the desires and needs of the marketplace. he benefits offered by a product or
service can include%
onvenience and accessibility.
@ood after&sales technical support and advice.
omfort and ease of use.
ccountability& the knowled+e that if thin+s +o wron+ the manufacturer will put them ri+ht.
ourtesy and helpfulness of staff.
ttractive appropriate and efficient desi+n and packa+in+.
Ieace of mind& the knowled+e that you can trust the hotel that your needs are understood and the
+ood or service you have purchased will not let you down.
,ales orientation% sales orientation is based on the ideas that people buy more +oods and
services. )n marketin+ a product is important to establish a uniue sellin+ proposition which sets
business brand or product ahead of the competition. reatin+ a uniue sellin+ proposition is
particularly important in providin+ services. *niue sellin+ propositions are usually set out in
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advertisin+. herefore the focus of a sales orientation is still the product or what an operation
has to offer.
0arketin+ orientation% 0arketin+ is based on the ideas how the product comes out in the market.
he ri+ht place is profitable for the product. )t focuses on customer wants and needs and
inte+ratin+ all the or+anisation's activities includin+ production to satisfy these wants.
chievin+ lon+&term +oals for the or+anisation by satisfyin+ customer wants and needs le+ally
and responsibly.
,ocietal 0arketin+ Crientation% he ,ocietal 0arketin+ Crientation is the newest marketin+
concept. his concept holds that the or+anisation should determine the needs wants and interests
of tar+et 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 bein+ whether
the marketin+ concept is adeuate in the a+e of environmental problems resources shorta+e
rapid population +rowth worldwide inflation and ne+lected social services. he pure marketin+
concept i+nores possible conflicts between short run consumer wants and lon+ run societal
needs. Bike a Hotel Hotel chains have established no&smokin+ floors and no smokin+ sections in
their restaurants. 9ast&food restaurants that practice the societal marketin+ concept pursues moreenvironmentally sound packa+in+ and produce foods with more nutritional value. =esort
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
0arketin+ plan is desi+ned to implement the strate+ies chosen at the corporate and strate+ic
business unit levels. Writin+ a marketin+ plan of the hotel allows you to e-amine the hotel
environment in conGunction with the inner workin+ of the business. he marketin+ plan allows
the marketin+ mana+er to enter the market place with an awareness of possibilities and problems.
SWOT Analysis
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HH like all maGor hotel corporations is continuin+ to recover from the events of ,ep.11th. his
tra+ic human event also delivered a financially devastatin+ blow to the travel industry as a whole
and to the hotel industry in particular. )n order to fully recover and thrive in the comin+ years
HH must assess its overall all stren+ths and weaknesses as it moves forward throu+h the new
millennium. he followin+ ,WC nalysis sheds some li+ht on some of the pitfalls and
opportunities that await the Hilton Hotels orporation.
Strengths
,tren+ths are the positive aspects and distinctive attributesJ )t provides a si+nificant market
advanta+e. ,tren+th is essential part and power of the hotel.
3rand =eco+nition% Hilton has a +ood reputation and their name is well known. Hilton is a leader
in the hotel industry. )t's +ood to make their product their packa+in+ and their tan+ibles look
different to those of their competitors it is essential to make them support their brand values.
>emand&,upply +ap% Hotel remains proper +ap in demand and supply products. )t +ives +ood
results to the hotel and +et promotion.
>iversification of products% Hilton is more than hotels. hey also +enerate revenue from +amin+
and entertainment. 3y bein+ involved more than one industry. Hilton has a benefit of drawin+
from one part of its business if another part becomes less lucrative. @amin+ 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 orporation $HH( is a well established or+ani:ation and industry leader in the
hotel hospitality and +amin+ industry
HH is well diversified across the industry with hotels in the hi+h end business and mid&priced
classes in their product mi-
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3rand reco+nition
HH also possesses solid inte+ration features such as ownin+ 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 hi+h speed internet access is available in public areas. he
lu-ury properly features two restaurants for surchar+e +uest receive transportation includin+ an
airport shuttle and an area shuttle. @uest parkin+ is complimentary. ?vent facilities consist of a
ball room and conference/meetin+ rooms. he staff can arran+e concier+e services weddin+
services event caterin+. @uest =ooms features coffee/ tea makers and complimentary bottle
water. 3athroom offers separate bathtubs and showers with handheld showerheads phones
scales. ll +uest rooms are non&smokin+. here are no room char+es for children 12 years old
and youn+er who occupy the same room as their parents or +uardians usin+ e-istin+ beddin+.
he followin+ fees and deposits are char+e by property at time service check &in check&out. )n
last laundry facility massa+e&spa treatment room and wheelchair are also available.
Hilton Hotels are known for a hi+h level of comfort and presti+e. he Iort of ,an >ie+o and
Hilton are plannin+ to develop a 12&room hotel on the waterfront adGacent to the ,an >ie+o
onvention anter. he presti+ious Hilton 0alta promises the best in accommodation and a hi+hstandard of service for which Hilton hotels are renowned. 9or business or pleasure the
Homewood suites by Hilton hotels are desi+ned with all the comforts of home in mind. he
Hotels are the Cfficial Hotel @roup of *M thletics and the @reat 3ritain and !orthern )reland
thletics eam. Hilton Hotels are now buildin+ computer files on customer preferences usin+ a
system called Cn N pronounced on cue. he Hotels are known across the +lobe and offer a
choice of 2F uality hotels in the *M ?urope sia merica frica and ustralia.
Hotel chain% Hilton Hotel develops many countries. his is the delu-e hotel in the !ewyork city.
Hotel chain is vital part of the stren+ths of the hotel. Hilton hotel is worldwide.
ustomer ,atisfaction% ustomer satisfaction with a purchase depends upon the product's
performance relative to a buyer's e-pectations. customer mi+ht e-perience various de+rees of
satisfaction. )f the product's performance falls short of e-pectations the customer is dissatisfied.
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)f performance matches e-pectations the customer is satisfied. )f performance e-ceeds
e-pectations the customer is hi+hly satisfied or deli+hted.
?-pectations are based on customer's past buyin+ e-periences. Hotel stren+ths with customer
satisfaction as table settin+ better offers easy switch suppliers location and +ood mana+ement
team etc.
Weaknesses
HH may be two narrowly focused makin+ it vulnerable to a downturn in the +lobal economy
and other world&wide catastrophes that could limit +lobal travel such as the bird&flu and a
si+nificant terrorist strike
HH may be vulnerable to workers' strikes and crack down on undocumented workers in the
*.,. 0ost of its holdin+s are in the *.,.
Opportnities
HH should offer an array of distinctive and speciali:ed services to the hi+h end +uests and hi+h
rollers such as
Weddin+ plannin+ 6 hostin+
,pas that speciali:e in personal services
Iersonal trainers
HH should look to e-pand into or acuire a cruise line
cruise ship is little more than a hotel that floats this would essentially match what it currentlydoes with its leased properties
@amin+ activities would escape re+ulation etc.
ake advanta+e of emer+in+ markets especially with business class and mid&priced markets
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Threats
HH must be careful not overe-tend its efforts to mi- entertainment and +amin+
lso the e-tension of credit and other side effects of +amin+ can slowly but surely nibble awayprofits
,eptember 11th was a maGor blow to the hotel industry. similar event could result in another
down turn.
he hotel has many competitors like the Cberai owers the 0arine Ila:a he Crchid Be
0eridian etc.
=elationship 0arketin+% =elationship 0arketin+ involves usin+ methods and tactics to develop
lon+ term relationship with customers in order to retain them. n or+anisation must e-ceed
customer satisfaction to develop a healthy relationship with customers. raditional transactional
marketin+ involved the or+anisation focusin+ all of its marketin+ efforts on attractin+ the
customer for one off sales.
ompany must put into place tactics to attract customers. o attract customers promotin+ the
product and brand offerin+ +ood uality products services and competitive prices. ttractedcustomers to be retained with or+anisation. 0ethods used to retain customers include Boyalty
cards a +ood customer service product variety and uality.
onclusion
*ltimately it can be concluded that the current situation of the H=0 function in Hilton hotels
and resorts are in favorable condition and while en+a+in+ with the key H= activities in a holistic
manner. here it could be able to see that the overall or+ani:ation is tryin+ to accomplish their
ultimate +oals and obGectives throu+h the development of their talents and enhancin+ the overall
productivity of them. nd also there the company should have to concern about the le+al
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framework which affects to the H=0 in takin+ their main decisions related to the permanent and
temporary employees. nd also Hilton is usin+ a systematic approach of recruitin+ and selectin+
their employees to fill the labour demand. 9inally there can be identified both +ood and adverse
effects of the 6> within the or+ani:ation to accomplish the ultimate +oals and obGectives
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and leadership effectiveness. The Leadership Quarterly
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Ierformance BinkPersonnel Review
@ilboa ,,hirom 9ried Q Cooper$ C%L $27( metaanalysis of work demand stressors
and Gob performance% ?-aminin+ main andmoderatin+ effectsPersonnel Psychology
,hirom @ilboa ,. 9ried Q Cooper$ C%L $27( @ender a+e and tenure as moderators of
work&related stressors' relationships with Gob performance% meta&analysisHuman Relations
West M%A $212( ?ffective teamwork: practical lessons rom organizational research! "rd
?dition hichester% he 3ritish Isycholo+ical ,ociety/3lackwell
9leetwood , Hesketh A$$24( "nderstanding the Perormance o Human Resources#
ambrid+e% ambrid+e *niversity Iress