In the financial report of 2016, they said that they want to focus more on management, franchise and timeshare. By the end of 2016, Hilton had been franchising 4,175 hotels with 573,404 rooms. By doing franchising, they can collect the fee from their franchisees which include application fee, royalty fee, monthly program fee and quality assurance program cost which brought them a lot of profits and also helped expanding their brands. Beside franchising, they also focused on hotel and timeshare management, which they also collected a certain fee: a base management fee, incentive and monthly fee. For hotel and timeshare management, Hilton has more benefits since the owners pay for all the other necessary fees and charges which including operation fee and other
Its premier brand portfolio includes the luxury hotel brands, Waldorf Astoria Hotels & Resorts and Conrad Hotels & Resorts, full-service hotel brands, DoubleTree by Hilton and Embassy Suites Hotels, focus-based hotel brands, Hilton Garden Inn, Hampton Inn, Homewood Suites by Hilton and Home2 Suites by Hilton, and the company’s timeshare brand, Hilton Grand Vacations. Hilton operated properties are staffed with more the 314,000 team members focused on providing a complete experience at each location. The company’s award-wining customer program, Hilton Honors, defined rewards programs in the industry and now has over 40 million members (Hilton Worldwide). Hilton Worldwide carries out business through three segments: (1) management and franchise; (2) ownership; and (3) time-share. These business segments enable management to capitalize on strengths like brand recognition and economies of scale.
According to the case study “The Thomas Cook – MyTravel merger in 2007” (Page & Connell, 2009), Thomas Cook was horizontally integrated with MyTravel to form Thomas Cook Group plc. Later on, according to the case study “Thomas Cook pays top dollar” (BusinessLine, 2014), Thomas Cook was vertically integrated with Sterling Holiday Resorts which it is a hotel owned 19 companies. As these two result from the case study above, Thomas Cook had horizontally and vertically integrated with both tour operators and suppliers. Integrated with other companies can gain the most benefits because of owning different components in the chain of distribution and “offer the organization more strategic options in terms of market penetration and market-product development” (Trible, 1997). Horizontally integration can improve the market share by merging with small tour operators.
Who is the hotel’s target market and what services do they use to attract and satisfy this market? The company’s target market appears to cater to every type of person in the luxury sector. This is reflected with its high class amenities, such as the Michelin restaurants and spas. The Mandarin Oriental International Limited Annual Report 2014 outlined that the leisure travellers have had higher demand recently over business travellers, as well as, “…higher spending leisure customers now making up close to 50% of the Group’s room nights” (Photos.mandarinoriental.com, 2014). 2.
The "unity in diversity" tag attracts most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow capped Himalayas and the quiescent lakes are incredible. 2. Demand-supply gap : Indian hotel industry is facing a mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. With the privilege of hosting Commonwealth Games 2010 there is more demand of rooms in five star hotels.
Question 1.1 1 The net customer revenue has been computed to be $735.00 and the net customer profit is $208.60 respectively. Based on the hotel’s profitability objective of $200, they have achieved their objective. The bulk of the hotel’s revenues are generated from “satisfied” customers. The hotel should be aiming to increase customer satisfaction level from “somewhat satisfied” to “satisfied” because there is a huge gap of customer revenue in between and a better margin although at a slightly more retention cost. Also, the hotel needs to increase customer satisfaction level from “satisfied” to “very satisfied” because the this bracket of customers gives the highest amount of revenue with the best profit margin.
A report released by the American Gaming Association stated that “based on direct, indirect, and induced impacts, the commercial casino industry supported approximately $125 billion in spending and nearly 820,000 jobs in the U.S economy in 2010” (Bazelon, et al., 2012) On a larger scale, the global casinos and gaming sector grew by 9.2 percent in 2012 to reach a total value of $456 billion (“Global casinos”, 2013). The modern casino is like an indoor amusement park for adults; the thrill of gambling, entertainment, and staying in a luxurious hotel is an experience desired by many tourists and it brings in billions of dollars in profit every year. A survey conducted in 2009, found that about 65 percent of Americans thought of the casino industry as being a vital and important factor to the overall U.S travel industry (“U.S commercial casino industry”, 2010). As conditions in the marketplace have changed, the gaming and gambling industry has increased its reliance on the lodging industry to bring in more revenue by attracting more gamblers to casinos (Walker, 2013). Even though the gambling and casino operations segmen... ... middle of paper ... ...y has truly impacted the travel and tourism industry as well.
In this industry, the most lucrative segment is leisure which has a market share of 71.1% (MarketLine, 2012). Sunshine Inn (fictional) is a small independent hotel that operates within the leisure segment of the hotel and motel industry in the United States. It is an adventure-themed hotel situated along the California-Nevada border in order to capture the tourist market for Lake Tahoe. Sunshine Inn has 30 bedrooms and 15 suites and offers specialty home-cooked type meals to guests for breakfast, lunch and dinner. It must be emphasized that the hotel and motel industry is one of the most fiercely competitive in the United States, and in fact, in the world (Johanson & Cho, 2009; Kosarkoska, 2010).
Hilton Worldwide is an American global hospitality company. It is owned by the Blackstone Group, a private equity firm. As of August 2012 Hilton brands encompass 3,897 hotels with over 642,000 rooms in 91 countries. Hilton HHonors is Hilton's guest loyalty program in which frequent guests can accumulate points and airline miles by staying with the various Hilton family of brands. The Hilton Honors program is one of the largest programs of its type with over 30 million HHonors members.
This proved to be a major breakthrough in driving the reservations to their website and an increase in CRS/Voic... ... middle of paper ... ...to your hotel without paying the commissions to someone else. Building the loyal guest is a first priority for success of the Hotel to denture gusts going to the OTAs. Having a well-oiled reservation system is also important to not to lose a customer through your reservation center. As most times a guest will call instead of utilizing any website. Retain these loyal, direct-booked customers by making a tailored and highly customized experience is big factor for proper booking success.