Hilton Hotel Service Management

HiltonHotel Service Management

ExecutiveSummary

Theservice industry is gaining a lot of popular in the world. Variousservice providers have interests in then international markets, andthey institute measures to the best service delivery process. TheHilton hotel stands out from the rest for its excellent servicemanagement practices. Since its inception, the hotel aims atdelivering the best services to people in different settings and ithas sections in 90 countries. The service management f the hotels area reflection of a favorable pricing strategy that takes care of thecustomers’ needs as well as generating revenue for the venture. Italso consists of excellent customer management mechanisms like havingan efficient system of booking and giving feedback. The customerhonor program has also been instrumental in improving the customerservices where customers earn redeemable points whenever they spendmoney on the services offered by the hotel. The management alsorecognizes the need to have motivated staff. The employees receivegood perks as well as rewards on reduced cost of the products offeredby the hotels. However, the management needs to settle the variouschallenges facing the service management like having full control ofpremises instead of using third parties. They should also do a lot ofresearch prior to establishing a hotel in a new setting. The growthpattern of the hotel with the current expansions underway is apositive image to the shareholders.

Theservice industry is growing fast in the world. Globalizationcontinues to instigate people to travel from one place to another.The competition that is growing in the market also instigates peopleto seek the institutions that offer the best services (Hudson,2008).The service industry is becoming common in many major touristdestinations in the world. The growth of exotic tourism and serviceseeking by different classes of people calls for the institutionsoffering services to do with dexterity to satisfy their needs. Themarketing of services is different from that of tangible goods(Hoffman &amp Bateson, 2010).Ventures like hotels and resortshave to institute mechanisms that are in line with the growing demandand changes in tastes and preferences. The Hilton hotels and resortis not an exception to this practice. The venture is has a set ofinternal mechanisms that helps it to market its services all over theworld and consequently gain a significant group of loyal customers.The hotels have stood out among others in the world due to theirexcellent customer services and satisfaction.

Sinceits inception in 1919, Hilton Hotels have been on the front line ofquality service delivery. The growing customer base and the need toexpand instigated it to grow to service people in different countries(Garrido, 2011). The core elements that form the mission of theventure have been very instrumental in guiding service delivery andmanagement of its marketing activities. The aim of the firm is tobecome a leader in the global hospitality industry. The differentteams has vigorous schedules to ensure that they give the hotels ahead start in different countries and gain a competitive edge overother hotels in the industry (Hilton Worldwide, 2013). Also, themanagement works towards developing the company’s brand worldwidethrough encouraging investment so that stakeholders can provide thenecessary support in terms of capital and popularity in the differentparts of the world. The main intention of this aim is to earn apremium position in the global industry. These goals have become areality after the institutions of intense service managementmeasures.

Discussion

TheHilton hotels and resorts work under the guidance of various servicemanagement considerations that are very effective in giving it acompetitive edge over other in the same industry. They include

1.Service Pricing

Theprices set by service providers have a direct impact on customerloyalty and retention. Most of the people who seek the services ofvarious hotels consider the value for their money. The prices setmust be consistent and equivalent with the quality of the servicesthat customers receive. The Hilton hotel management understands this,and they have a strategy to include various component of the productmix. The employees provide customized and quality services that meetthe need of different customers. It is in line with the aim of themanagement to improve their brand throughout the world (HiltonWorldwide, 2013).

Thestrategy aims at ensuring that customers enjoy the value of servicesthey get for their money. In doing so, the customer is always in aposition to request for the services provided the hotel is in aposition to offer them. Secondly, the hotels have an intensivecustomer loyalty retention program through the prices they set fortheir services. Most of the customers who enjoy the services becomeloyal to the hotels (Hilton Worldwide, 2013). Lastly, the hotels haveto make a significant level of profit from the services they offer.For this reason, the services rendered in different geographiclocations have favorable returns for the sustainability of thebusiness.

2. Customer Management

Customermanagement is a primary factor in the service delivery industry sinceall the ventures aim at obtaining a wide market share throughincreased customer satisfaction (Hoffman &amp Bateson, 2010). Hiltonapplies two methods of customer management. That is, the ONQ systemand the loyalty honors program

TheONQ program is a 50 million dollars technology-based project thatallows the organization to have a clear image of its customers andtheir specific needs. The information derived from the customersoutline their locations, different needs, and their preferences. Thedata helps the management in planning for the most desirable servicesfor different groups of customers. It is also a platform for theemployees to get information on the customers’ feedbacks andimprove the service delivery (Hilton Worldwide, 2013).

TheONQ integrates the primary functions of the hotels like the frontoffice, housekeeping, accounting and finance, revenue management andthe forecast management. Through the date gathered from thesefunctions, the forecast management observes the trend over a givenperiod and draw conclusions on the level of customer satisfaction andservice quality. Customers also make reservations on the platform,and their data enters the management system. Through the program,customers make over 11 million reservations annually (HiltonWorldwide, 2004). Whenever a customer makes another reservation, theydo not have to provide all their details again since the hotels canaccess their likes and preferences. They can, therefore, makecustomized services available for the customers before he/shearrives. For example, the provision of a smoking room, the preferredtype of bed, the prefer floor level among others (Hilton Worldwide,2004). Through this data, the administrators can distinguish theloyal customers and create a healthy business relationship with them.

About400 active IT technicians who see to the system and keep it updatedall the time. The initiative cost the company a significant amount ofcapital (Hilton Worldwide, 2013). Since its inception, the company’smanagement aimed at achieves a seamless in-house system. Therefore,there was a need for all the employees to embrace and support the newtechnology to make sure that it yielded the desired results. Throughthe hotels’ effective communications strategy, the managementcommunicated this to all the employees. The system is about 70%coded to ensure that its use do not extend beyond the hotels’applications. Technology is yielding measurable benefits in terms ofimproved customer satisfaction and ability of the forecast managementto observe the trends and predict the future (Hilton Worldwide,2013).

Thehotels also use the honors program to manage customers and earn theirloyalty. The program honors loyal customers by giving themprivileges like room upgrading or transferring the earned privilegesto a family member or friend. Whenever customers spend on theservices offered by the hotels, they accumulate points and miles.After attaining a given number of points, they can exchange them forvarious services. The number of points earned is dependent on thelevel of stay and membership. The four available memberships includeblue, silver, gold and diamond. The programs attract new customersand help to retain the loyal ones. Customerstend to spend more to gain extra points. Currently, about 40 millioncustomers are in the honors program, and they access more than 675,000 rooms worldwide. It translates to a possible high number of loyalcustomers, and they are evidence of the satisfying nature of thehotel’s services (Hilton Worldwide, 2013).

3.Employee Management

Currently,the hotels employ 152,000 active employees. The hotels have avigorous human resource management who take care of this large team.There is also an estimated number of individuals working infranchised locations that are not under the direct supervision of thehotels amounting to 162,000 (Hilton Worldwide, 2013). Since itsinception, the hotels subscribes to the importance of having asatisfied team with the mandate of delivering services to thecustomers. The customers’ satisfaction begins with a satisfied anda motivated team of workers. The hotels, therefore, employ competentand experienced human resource managements to manage the big team ofemployees (Hilton Worldwide, 2013).

Thehotels recruit workers from the best hospitality schools in thedifferent regions. The centers include Les Roches InternationalSchool of Hotel Management, University of San Diego, Northern ArizonaUniversity, Washington state university among others (HiltonWorldwide, 2013).

Althoughthe workers have the necessary skills, the human resourcesdepartments take them through a comprehensive in-service trainingprogram to acquaint them with the hotels’ best practices andservice delivery. Examples of the programs include managementdevelopment program and revenue management (Hilton Worldwide, 2013).The resulting workforce is, therefore, competent and motivate towardsachieving the goal of the hotels.

Also,the company has one of the best rewarding schemes for its employeesacross the world. The benefits include a competitive salary thatreflects the current trends in the market. As members of the HiltonWorldwide team, the employees, enjoy reduced room rates all over theworld. They also receive discounts on services and products offeredby the hotels. It is one of the hotels with excellent employee wagesand benefits from the many in the industry. The retention rate isalso very high (Hilton Worldwide, 2013).

4.Communication Strategy

Inservice management, communication is a key element since unlike inthe tangible goods markets, there is a lot of communication betweendifferent parties. There is a lot of communication taking placebetween the clients and the employees (Hoffman &amp Bateson, 2010). Therefore, the management has to come up with a communicationsstrategy that meets the needs of the industry.

Withover 160,000 active employees working in hotels in various countries,Hilton has an effective communication process. An in-housecommunication strategy involving both vertical and horizontalapproaches is in use. The employees communicate with the topmanagement in their different regions by following the laid downchannel. Most of the times, they use the communication ladder toreach to the top management that acts on their grievances. When themanagement wants to pass a message to the junior employees, they usethe same ladder. A good example was when the hotels were implementingthe ONQ system. There was need to mobilize all the employees tosupport it so that it could give its intended benefits. Thecommunication involved the transfer of the required information fromthe top management through the communication ladder and finally tothe junior employees. The strategy is fast and effective (HiltonWorldwide, 2013).

Also,the customers make different requests from the employees as part ofthe services they require. The communication between the employeesand the implementers of various changes in service delivery is fastand efficient. The communication strategy goes to the extent ofavailing speed dials in rooms in the various hotels around theworlds. Customers use the channels to make requests without having toappear physically before the reception desks. It has embraced theuse of technology whereby customers can make online reservations bycommunicating with the attendants. They can also give their feedbackthrough the same system, and this enables the employees to learn anymistake committed and institute remedies.

5.Maintaining a Concrete Physical Evidence

Mostof the times, customers will look for services in places where theyhave confidence and trust. A firm’s physical appearance and thesetting that it operates are important in creating an image that isdesirable to the consumers (Hoffman &amp Bateson, 2010). Managementof Hilton Hotels understands this, and they try as much as possibleto find locations for their premises. It would not be objective tohave the hotel located in dirty alleys and expect to have goodreturns. The class of people that the hotels aim to serve will mostlyprefer high-end settings with a complete provision of auxiliaryservices like banks, communication, and entertainment among others.All the Hilton establishments stand amongst other business offeringthese auxiliary services.

Dueto the inability of customers to take something tangible with themfrom the money they use in hotels it is difficult to evaluate thevalue of the services they receive (Hoffman &amp Bateson, 2010). Forthis reason, the value and worth other services given to customersdepend on the visible evidence the customers experience in thesurrounding. The Hilton hotels have excellent finishing in the diningrooms and the rooms. The furnishing and the exquisite nature of therooms create a sense of satisfaction in the customers. The number ofrooms across the world isabout 678, 630 built in 4,115 properties (Hilton Worldwide, 2011).The services in the rooms vary with the different grades. That is,blue, silver, gold and diamond. Currently,the hotel is constructing 195,000 guest rooms and it is the biggestroom’s project in the world (Hilton Worldwide, 2013).

Also,as part of managing its physical evidence in the world, theinformation placed on the website has a critical role in formingcustomer’s perceptions. Images of flawless interior furnishing inthe hotels accompanied by well-dressed staff create a conceivableperception that the Hilton is world class venture. Giving thecustomers a brief overview of the expected experience creates a senseof expectation. By the click of a button, the customers can find theHilton hotel near them. The websites present the nearby hotels by theuse of brief of the interior and exterior appearance that is alwaysattractive to the eye. The physical evidence contributes greatly tothe success of the hotels and resorts in the world.

Conclusion

TheHilton hotel stands out from the rest of the competitors in theindustry. Its excellent service management practices make it possibleto retain a big share of customers seeking services from the hotels.The use of a favorable pricing strategy and a world-class customermanagement services helps it to live its mission of being a leader inthe global market. The employees of the company receive hefty perksand rewards, and they are, therefore, motivate to achieve theobjectives set y the management. Finally, the company’s image inthe market is of unique advantage since it creates a desirableperception in the customers. The location of the hotels in businessdistricts where there is a wide array of other services makes them adestination for many people. The ongoing addition of guest rooms isevidence of the protective growth of the hotels. The managementcontinues to customize measures to ensure the continued bagging ofawards from and marinating a positive public image.

Recommendations

First,service management requires the management to be in control of allthe procedures taking place so as to avoid compromise on the qualityof the services. The reason behind this is that the companies leasingproperty have strict rules that may curtail changing the face oftheir buildings like painting or architectural additions. The companysometimes uses third-party property owners, and it may be difficultchange the appearance of the buildings. The management should,therefore, aim at gaining full control of the premises so as tocustomize them.

Secondly,the hotels undergo the cost of compliance with authorities in newsettings. Some of the costs are unforeseen. Before introducing ahotel in a new region, the management should conduct an intensiveresearch to gain insight on additional costs that may emerge later.Thirdly, the hospitality industry has the highest number of employeesmoving from one company to another, and although Hilton has highretention rates, it also experiences a significant level of employeesleaving. The human resources management should revise the benefitsreceived by the employees occasionally to avoid making the trainingprogram expensive in the long run.

References

Garrido,C. (2011). IHG, Hilton and Marriott dominate U.S. future hotelgrowth.Loyalty Traveller.Retrieved fromhttp://loyaltytraveler.boardingarea.com/2011/08/18/ihg-hilton-and-marriott-dominate-u-s-future-hotel-growth/HiltonWorld Wide.(2013). Annual Report. Retrieved fromhttps://www.google.com/search?q=hilton+world+wide+annual+report+2013&ampie=utf-8&ampoe=utf-8HiltonWorldwide. (2004). Hilton`sCustomer-information System, Called OnQ,&nbspRolling OutAcross 8 Hotel Brands. HotelOnline Special Report. Retrievedfrom http://www.hotel-online.com/News/PR2004_3rd/Aug04_OnQ.htmlHoffman,K., &amp Bateson, J. (2010).Servicesmarketing: concepts, strategies, &amp cases.Cengage Learning.Hudson,S. (2008). Tourismand hospitality marketing: a global perspective.Sage: New York.

Appendices

Garrido,C. (2011). Retrieved fromhttp://loyaltytraveler.boardingarea.com/2011/08/18/ihg-hilton-and-marriott-dominate-u-s-future-hotel-growth/

HiltonWorldwide. (2013). Retrieved fromhttp://www.sec.gov/Archives/edgar/data/1585689/000119312513364703/d593452ds1.htm