Hilton Hotels

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Answer Key: Case Study Executive Summary In there efforts to become one of the world’s premier hospitality firms, Hilton Hotels identified some key problems within the firm that need to be solved. One problem the firm identified was that Hilton Hotels lacked outstanding technological innovations. They also saw a problem with the lack of IT infrastructure in the firm, and that the organization had no way of maintaining its relationship with its valued customers. Another problem that the firm saw was that there was a need for man-power in order to properly build and maintain these strong relationships with customers. The causes of these problems were due to forces in the industry, both from competitors and consumers. Hilton Hotels conjured up some great solutions for there different problems, and the solutions were all found in technology. Solutions for the problems included, Hilton OnQ, CRM, Using Call Centers to optimize the CRM concept, Best Guest Arrival Reports, and The Satisfaction and Loyalty Tracking (SALT). In hopes that Hilton Hotels would continue in their growth via

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Page 1: Hilton Hotels

Answer Key: Case StudyExecutive Summary In there efforts to become one of the world’s premier hospitality firms, Hilton

Hotels identified some key problems within the firm that need to be solved. One problem the firm identified was that Hilton Hotels lacked outstanding technological innovations. They also saw a problem with the lack of IT infrastructure in the firm, and that the organization had no way of maintaining its relationship with its valued customers. Another problem that the firm saw was that there was a need for man-power in order to properly build and maintain these strong relationships with customers. The causes of these problems were due to forces in the industry, both from competitors and consumers. Hilton Hotels conjured up some great solutions for there different problems, and the solutions were all found in technology. Solutions for the problems included, Hilton OnQ, CRM, Using Call Centers to optimize the CRM concept, Best Guest Arrival Reports, and The Satisfaction and Loyalty Tracking (SALT). In hopes that Hilton Hotels would continue in their growth via the use of technology, my recommendations were also centered around technology. I recommend the expansion of the OnQ and CRM technologies, as well as the implementation of free internet access for guests at all properties.

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Problems• Hilton Hotels was lacking the technological innovations that

made other firms in the industry really stand out to new customers while, maintaining and building relationships with their valued customers.

• Lack of an IT infrastructure that would enable employees to deliver great customer service.

• Hilton Hotel did not have an innovative way to maintain and strengthen the relationship they had with their valued customers.

• There was a need for man-power along with technology in order to strengthen these relationships.

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Causes of the Problems• The pace of innovation, via technology, in the

hospitality industry was growing tremendously and Hilton Hotels needed to keep up to remain competitive in the industry. The force from their competitors was weighing in on them.

• Hilton also had no way of tracking/monitoring their premier customers, in a way that would build a stronger relationship with each of them. The force from their consumers was a cause In the problems.

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Solutions to Problems• Hilton OnQ – this IT Infrastructure created by the Hilton gave their

firm a nervous system. This allowed customers to have a one-stop shopping of an integrated solution, and also allowed employees to provide excellent customer service on cue. The system was able to support the property-level operations of every Hilton Hotel, regardless of its size or segment. OnQ is a competitive advantage and, it helped Hilton to aggressively expand at a quicker and more consistent pace.

• CRM – CRM was an addition made to the OnQ infrastructure. It utilized technology to give Hilton a solidified relationship with its premier customers. CRM added a holistic view to excellent service, and it allowed Hilton to foster a closer relationship with the Best Guests throughout their life cycle of interactions with the Hilton Family Brands.

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More Solutions to Problem• Using Call Centers to optimize the CRM concept – The Hilton Hotels wanted to

optimize the new CRM portion of the OnQ system, so they utilized the call centers to gather more information about their customers during the reservation process. “OnQ Reservation allows the agents to access callers’ personal dossiers and update their preferences. This information shortens the time on the phone and it enables better cross-selling.”

• Best Guest Arrival Report – This was a useful tool, because it allowed the property to prepare for receiving guests. This report was useful to the property because it listed and ranked all expected guests that had a profile in OnQ and formatted relevant information from their dossier in an easily s canned format. This allowed the property to pre-assign guests to a room that was prepared according to their preferences. This helped the firm to become more efficient in the services they provided to their valued guests.

• The Satisfaction and Loyalty Tracking (SALT) – SALT was a survey that a sample of departing guests were asked to complete. This survey was an important measuring tool because it assessed whether the CRM initiative was truly working and how it could be tweaked.

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Recommendations• I would recommend that Hilton expands their OnQ and CRM

technology to include all of the properties that they own. Meaning, whether a customer stays at an Hilton Hotel, a Homewood Suites, or a Waldorf-Astoria, their preferences would still be available at the various properties.

• With the growing need for technology for most consumers even when they are away from their homes and offices. Therefore, it would be beneficial to Hilton Hotels to be the first hospitality firm to offer FREE unlimited internet service to all hotel guests. It can be up to the firm to decide whether the free internet should be wireless or via Ethernet. By adding this feature to all of their hotels, Hilton Hotels will attract many new customers that will become faithful customers due to the free access to the internet.

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part 2Hilton OnQ

• What is OnQ?– The nervous system of the Hilton Hotels Corporation– a comprehensive, integrated infrastructure– an ambitious custom-built enterprise system designed to support the

property-level operations of each hotel in the Hilton family, regardless of size and segment, and to enable the firm’s Customers Really Matter initiative at each customer touch point• embodying both the onestop Shopping nature of an integrated solution• a readiness to serve customers “on cue.”• Building on the premise that technology was an enabler for employees to

deliver great customer service

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The Future of CRM at the Hilton Corporation

• Measuring the success of the Customers Really Matter initiative was no small feat,

• Even more difficult was the challenge of charting the evolution of CRM

• A relentless focus on measurement, executive championship, employee training, and empowerment was Hilton’s approach to ensure that the principles of CRM became

• The Blackstone acquisition offered the opportunity to decide whether the Customers Really Matter initiative was worth reinvesting in or whether it had been a good program that had run its course