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Globalization in the tourism and hospitality industry
Hilton Hotels & Resorts Classical Management Theories
Globalization in the tourism and hospitality industry
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• The hospitality sector is highly susceptible to external conditions over which it has no control. Hence, the Oberoi group, as part of a strategy, has always followed the practice of owning properties. In crunch situations, they can sell the property keeping the management with them as proprietor, and therefore overcome the funds crunch.
• Rebranding Strategy - Internationally, Hilton hotels are acknowledged by the mid to senior company executives, and are also well-known among global tour operators. They exported management expertise to Australia, Egypt and Singapore, where The Oberoi Group took control of the running of existing luxury hotels They entered into a strategic arrangement with Hilton for the international marketing and management of reservations of the "Trident" hotels in 2004 as part of their globalization strategy. Under this arrangement, all the "Trident" hotels were re-branded as "Trident Hilton". At the same time, the Oberoi Towers in Mumbai was re-branded as the Hilton Towers. As of April 2008, this alliance has ended and the "Trident" Hilton hotels and the Hilt...
-the company became known for its ability to enhance a property’s value by creating unique, one of a kind properties with a small ultra-luxury residential style that differentiated it from other chain-like luxury competitors. Competitors include 2 groups of luxury hotels: corporate branded (Ritz-Carlton and Four Season) and “collections” of individually branded unique hotels (Orient-Express).
In order to keep consistent, Marriott has a strategy for all their brands and properties. This strategy consists of six parts, which is shown in the picture 1.
Problem situation: Rosewood brand was muted, not very well known but it was not clear what is the best corporate branding strategy without destroying the value of each individually branded hotel and loosing a customer. A new branding strategy proposing an increased customer profitability and lifetime value is needed.
History of Hilton hotel has been very interesting as it started as Mobley Hotel in year 1919 a small building. Because, when the company started it had no plans or ideas of expanding, the sole purpose was to serve as a place for the travelers to stay where they can comfortably enjoy a night or few and carry on towards their journey. After twenty-seven years of business and hard work, this small hotel went nationally in eleven states within United States, known as Hilton. Currently they have four thousand worldwide properties, either directly owned or franchised (including third party), in seventy-eight countries. Hilton even though allows franchises but there policies remain the same and direct Hilton officials do all the upper level management. The company name Hilton understands for Hosp...
Founded in 1919, Hilton Worldwide has remained a beacon of innovation, quality, and success. What Hilton Worldwide calls their mission statement imposes its worldwide high status: “We will be the preeminent global hospitality company - the first choice of guests, team members and owners alike.” Fierce competition, however, does currently exist among hotel corporations within the market. Marriott International, Hilton’s main competitor, currently stands as the third-ranked world leader within the industry (according to hospitalitynet.org), coming in after Hilton. Other competition faced by Hilton comes from Wyndham Worldwide, Starwood Hotels and Resorts, and Best Western, to name a few. Affiliated with ten different hotel brands, Hilton Worldwide provides its guests with the advantage of choosing from any one of their 4,000 operating hotels located throughout 90 different countries. This has evidently contributed to Hilton Worldwide becoming one of the top leaders (ranked second to be exact) in the hospitality industry, despite their competition. The vision of Hilton Worldwide is “to fill the earth with the light and warmth of hospitality.” As the modern luxury hotel, Hilton has created a prestigious heritage with a modern attitude. The values of Hilton Hotels are stated uniquely, giving one value to each letter that constitutes the word for the hotel brand. “H” stands for Hospitality– “We are passionate about delivering exceptional guest experiences”; “I” stands for Integrity– “We do the right thing, all the time”; “L” stands for Leadership– “We are leaders in our industry and in our communities”; “T” stands for Teamwork– “We are team players in everything we do”; “O” stands for Ownership– “We are the owners of our actions and dec...
Marriott is one of the most renowned hotels in the world with more than 3,800 properties across 72 countries and territories. However, the chain of hotels did not just appear overnight. What started off as a root-beer stand by J.W. Marriott, evolved into a chain of restaurants. Later on, Bill Marriott, son of J.W. Marriott, managed to expand the family’s business from a chain of restaurants to a chain of hotels in a period of over 50 years. Bill Marriott has achieved great success by expanding the Marriott portfolio which now comprises of 16 different hotel brands which include Ritz Carlton, Renaissance, Springhill Suites, Gaylord Hotels and many more (Jr, 2013).
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. The company focuses primarily on the management and franchise segment which consist of 3,918 hotels with 610,413 rooms. Managing the properties, rather than owning them, allows the company t...
The most prestigious name in the industry, Hilton Hotels & Resorts stands as the stylish, enthusiastic and global leader of hospitality. With over 92 years of experience, Hilton continues to be synonymous with hotel because of innovative approach to products, facilities and service. They help make traveling easier with smart design, innovative restaurant concepts, authentic hospitality and assurance to the global community.
To wrap up, Kimpton Hotels is a major leader in the boutique hotels industry. They have adopted a culture of empowerment and support for their employees that has strengthened their bran. They offer unique experiences for each hotel an individual chooses to visit.
Sea Goddess Cruises, Limited (SGC) is obviously not accomplishing what it needs to financially to obtain a fair share of the market. There are a number of current strategies that will be reconsidered and rejected.
The hotel’s value of the company is to maintain family and friendly environment, which is become a culture. The downside of
Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still expanding.
The hotel industry is one of the fastest growing industries in India. The total market size of Indian tourism and hospitality sector stood at US$ 117.7 billion and is expected to touch US$ 418.9 billion by 2022. The foreign direct investment (FDI) inflows in hotel and tourism sector during April 2000 to July 2013
There are two types of tactical risks impacts upon the Group. One is the risk of losing franchise and management agreements. This is an inherent risk for hotel industry and the Group’s light-asset business model. The intensive competition within the hotel industry may reduce the number of suitable business opportunities offered to the Group and may increase the bargaining position of property owners seeking to become a franchisee or manager.
This company provides accommodation facilities with hospitality for people who come from other areas but this is not a hotel service. This is called first unhotel hospitality product which enable guest to live like locally by experiencing luxury facilities. This concept has gone beyond the hotel service and it is called as vacation home. This great business concept was created in 2009 on the mind of Grey Marsh who is the CEO of this company. They are keeping their relationships with two parties to be success in their business and to make high profit in the market place. In here, they provide their service to typical high market home owners by giving the opportunity to let them out their home for people while the home is