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Hilton
Alex Mutch
- Marketing Management
Brenna Tunnicliff
- Marketing Management
David Hong
- Marketing Management
Edwin Chao
- Marketing Management
Leslie Teater
- Marketing Management
Hilton Worldwide Brands
Introduction Mission Statement Opportunity Statement Sustainable Competitive Adv.
Background and History
Background & History
1919
1927
Conrad
Hilton
bought
first hotel
First hotel
to add
amenities
1946
Hilton
Hotels
Corporation
goes public
Multi-hotel
reservation
system
1948
1957
Marriot
enters
industry
Hyatt
founded
1959
First
airport
hotel
opened
1929 - 1939
Great
Depression
Introduction Background & History Mission Statement Opportunity Statement
Background & History
1962
1964
Hyatt goes
public
Hilton
International
Corporation
splits to go
global
Barron
Hilton
replaces
Conrad
Hilton as
President
1967
1973
Hilton has
customer
service
breakthrough
Introduces
HHonors
loyalty
program
1987 1995
First Hilton
website
launches
Hilton
International
sold
Conrad Hilton
passes away
1979
Introduction Background & History Mission Statement Opportunity Statement
Background & History
1996
2006
Stephen
Bollenbach
is first
non-Hilton
CEO
Hilton
International
reacquired
Blackstone
Group buys
Hilton and
goes private
2007
2008
Airbnb
founded
Lightstay
introduced
2009
2013
Hilton
returns to
NYSE
Christopher
Nassetta
becomes
president
and CEO
Become
Hilton
Worldwide
and changes
HQ
Hilton
launches a
vacation
subsidiary
2002
Introduction Background & History Mission Statement Opportunity Statement
Mission Statement
Mission Statement
“To be the preeminent global hospitality company - the first choice of guests, team
members, and owners alike.”
Background & History Mission Statement Opportunity Statement Sustainable Competitive Adv.
Opportunity Statement
Opportunity Statement
The hospitality industry is highly competitive, filled with pricing and sales
promotions, resulting in price wars. In this industry, Hilton possesses a pristine
brand image that has the ability to be further leveraged in order to differentiate itself
from competitors in the future. With the current influx of consumers in the lodging
industry, Hilton is now presented the opportunity to further utilize its intellectual
capital and create sustainable competitive advantage.
Mission Statement Opportunity Statement Sustainable Competitive Adv. Significance to Leadership
Definition of Sustainable
Competitive Advantage
Sustainable Competitive Advantage
A long-term competitive advantage that is not easily duplicated by other competitors.
This is developed by solidifying a pristine brand image, utilizing intellectual
capital, offering exceptional services, and strengthening customer loyalty.
Opportunity Statement Sustainable Competitive Adv. Significance to Leadership Research Methodology
Significance To Leadership
Significance To Leadership
Hilton is a part of a highly competitive and fast growing industry in hotel service.
As a result, we have uncovered new forms of underleveraged resources within the
company and have developed detailed programmatic recommendations that will
maximize these forms of sustainable competitive advantage.
Sustainable Competitive Adv. Significance To Leadership Research Methodology Expected Outcomes
Research Methodology
Research Methodology
● Secondary research
● Environmental scanning & monitoring
● Trusted, peer-reviewed sources
○ Google Finance
○ Business Insider
○ Forbes
○ Wall Street Journal
● Domestic focus
Significance to Leadership Research Methodology Expected Outcomes Leadership
Expected Outcomes
Expected Outcomes
● Improved customer database
● Differentiated customers
● Increase in customer loyalty
● Increased customer share
● Move to value-based pricing
● Leverage strategic alliances
● Movement away from third-party sources
● Decrease in long-term debt
Research Methodology Expected Outcomes Leadership Corporate Culture
Leadership
Leadership
● Three Presidents; Nine Executive Vice Presidents
● Most have worked with Hilton eight years or less
● High levels of experience in the hospitality industry
Joe Berger Kristin Campbell
Christopher Nassetta
Kevin JacobsIan Carter Jim Holthouser
William
Margaritis
Matt Richardson Martin Rinck Matthew Schuyler Chris Silcock Simon Vincent Mark Wang
Expected Outcomes Leadership Corporate Culture Human Resources Management
Conrad Hilton
● CEO & Founder of Hilton
● Emphasis on innovation and empowerment
● Focus on charity and developing the community
“Success seems to be connected with action. Successful people keep
moving. They make mistakes, but they don't quit.”
“Enthusiasm is a vital element toward the individual success of every man or
woman.”
“The practice of charity will bind us... will bind all men in one great
brotherhood.”
(CEO 1919-1967)
Expected Outcomes Leadership Corporate Culture Human Resources Management
Stephen Bollenbach
● Prior CEO of Hilton
● Worked as Donald Trump’s CFO
● Worked with Disney & Marriott as CFO & Treasurer
● Recruited by Barron Hilton in 1996
● Focused on making profit with every decision
“There are a lot of bargains out there, ... Every acquisition you make is
accretive to earnings. It's a real value creator.”
“We want to continue getting out of the real estate business and more into the
fee business.”
(CEO 1996-2007)
Expected Outcomes Leadership Corporate Culture Human Resources Management
Christopher Nassetta
● Previously worked for Host Hotels and Resorts as COO
○ Later became CEO
● Hired by Jonathan Gray of Blackstone Group as President
and CEO for Hilton in 2007
● Made a worldwide Hilton tour
● Began changes in organizational structure
“People were living in ivory towers. Some in Beverly Hills. We didn’t have
the connectivity. The hotels were saying, ‘Leave us alone. I don’t like you
corporate types.’ We had become siloed.”
(CEO 2007-Present)
Expected Outcomes Leadership Corporate Culture Human Resources Management
Christopher Nassetta
● Implemented a corporate wide CRM system
● Emphasis on leveraging intellectual capital
● Customer focused
“Even the posters listing corporate guidelines differed from hotel to
hotel, driving Nassetta — who puts great stock in business culture —
crazy.”
“There was a lot of what he did that was simply listening to the customer.”
Expected Outcomes Leadership Corporate Culture Human Resources Management
(CEO 2007-Present)
Joe Berger
● Executive Vice President and President of the Americas
● Oversees the operations of over 350 corporately owned Hilton
hotels in the Americas
● Graduated with a masters degree in finance
● Career in the Hotel Industry
○ Prior to Hilton, four years at LXR as Co-President
○ Worked internationally in operations and finance for
Marriott
(VP 2007-Present)
Expected Outcomes Leadership Corporate Culture Human Resources Management
William (Bill) Margaritis
● Oversees corporate branding, internal and external
communications, government relations, issues and crisis
management, and corporate responsibility programs
● Been with the company since August 2015
○ Spent prior fifteen years at FedEx as Senior Vice
President, Global Communications & Investor Relations
■ One of the only Executives without hospitality
experience
● Graduated from Michigan State with a degree in business
(VP 2015-Present)
Expected Outcomes Leadership Corporate Culture Human Resources Management
William (Bill) Margaritis
"As we continue to gain momentum and accelerate our growth around the world, finding
additional ways to reach, engage and connect with our most critical stakeholders becomes even
more important. Bill’s breadth of experience and his broad understanding of global business and
markets will help us build, strengthen and execute an integrated strategy across Hilton that will
enhance our industry leadership position and our ability to differentiate ourselves in the
marketplace.”
- Christopher Nassetta
Background & History Mission Statement Opportunity Statement Significance of LeadershipExpected Outcomes Leadership Corporate Culture Human Resources Management
Chris Silcock
● Leads the company's global commercial team, including sales,
revenue management, regional marketing and eCommerce,
and Hilton reservations and customer care
● Twenty years in Hilton
○ Began his career with Hilton as a catering and banquet
waiter
○ Head of Sales and Revenue Management
○ Head of Online and Regional Marketing
● Degree in Computer Studies from University of Essex
(VP 1995-Present)
Expected Outcomes Leadership Corporate Culture Human Resources Management
Corporate Culture
Values
Hospitality “We're passionate about delivering exceptional guest experiences.”
Integrity “We do the right thing, all the time.”
Leadership “We're leaders in our industry and in our communities.”
Teamwork “We're team players in everything we do.”
Ownership “We're the owners of our actions and decisions.”
Now “We operate with a sense of urgency and discipline.”
Leadership Corporate Culture Human Resources Management Operations
Corporate Culture
Leadership Corporate Culture Human Resources Management Operations
Hilton’s Diversity Statement
“Our priority is to understand and embrace unique global cultures to ensure that our Team
Members are seen, heard, valued and respected. As a result, our senior leadership is committed
to investing in programs that promote diversity such as, inclusion training and celebrations of
international traditions and customs. Globally, we also aim to increase our presence in local
communities through employee volunteerism, partnerships and giving programs.”
“Ultimately, I have a very simple philosophy on diversity: It is what allows us to perform and
deliver for our customers and, frankly, outperform the competition.”
- Christopher Nassetta
Internal Diversity Programs
● Executive Diversity Council
● Team Member Resource Groups
● Diversity Compliance Training
○ Diversity, Inclusion You e-Training course
● Internal Communications
“As a part of our commitment to diversity and inclusion, we created the Executive Diversity Council,
comprised of the company's most senior leaders, and chaired by our President and CEO, Christopher J.
Nassetta. The Executive Diversity Council provides oversight and direction to the overall diversity
strategy related to our culture, talent and marketplace.”
- Christopher Nassetta
Leadership Corporate Culture Human Resources Management Operations
Organizational Structure
Christopher Nassetta
CEO
Jim Holthouser
Kevin Jacobs
Matthew Schuyler Simon VincentMatt Richardson
Kristin Campbell Ian Carter
Martin Rinck
Mark Wang
William Margaritis
EVP Corporate Affairs
Joe Berger
EVP, President, Americas
Chris Silcock
EVP and CMO
Middle Management
Staff Members
Leadership Corporate Culture Human Resources Management Operations
Organizational Structure
Leadership Corporate Culture Human Resources Management Operations
“People were living in ivory towers. Some in Beverly Hills. We didn’t have the
connectivity. The hotels were saying, ‘Leave us alone. I don’t like you corporate types.’
We had become siloed.”
- Christopher Nassetta
Human Resources
Human Resources
Corporate Culture Human Resources Management Operations Finance
“You first have to get the right people on the bus, get the wrong people off the bus, make sure the
right people are in the right seats before you decide where you’re driving the bus’ … that was a
philosophy that I followed.”
- Christopher Nassetta
Human Resources: Recruiting
● Core School Alliances
○ 16 schools where recruiters look for potential interns
● Career page
○ Indeed.com
● Hilton Worldwide University
Corporate Culture Human Resources Management Operations Finance
Human Resources: Hiring
Corporate Culture Human Resources Management Finance Marketing
● Application is online
○ Resume sent to different departments
Corporate Culture Human Resources Management Operations Finance
Human Resources: Training
● Part-Time: 20 hours
● Full-Time: 45 hours
● Hilton Worldwide University
○ Five Different Colleges
Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
Human Resources: Training
Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
Human Resources: Retaining
“Our Team Members are at the heart of our success and we are committed to ensuring Hilton is a
place where they can grow both personally and professionally.”
-Christopher J. Nassetta
Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
Human Resources: Retaining
● Professional development opportunities
● Nassetta’s annual “Catch Me at My Best”
● 30 paid days of holiday/vacation
● Tuition reimbursement of $1200
● GED Assistance Program
● Parental Leave Program
Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
Operations
Operations: Overview
● HQ in McLean, Virginia
○ Previous HQ was in Beverly
Hills, California until 2009
● Total of 157,000 Team Members
around the world
Human Resource Management Operations Finance Marketing
Operations: Statistics
Brand Hotels Total Rooms
Hilton 560 28.1%
Hampton 2,005 27.8%
Doubletree 410 14.1%
Hilton Garden Inn 618 12.0%
Human Resource Management Operations Finance Marketing
Operations: Ownership
Human Resource Management Operations Finance Marketing
Hampton Inn Franchise Ranking by Entrepreneur.com
Finance
Human Resources Management Finance Marketing Conclusion
Financial Introduction
Operations Finance Marketing External Analysis
Human Resources Management Finance Marketing Conclusion
Stock Price (2 Years)
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
IPO: $20; 117,640,624 Shares (NYSE: HLT)
Current: $23.37; 1.232 M Shares
Human Resources Management Finance Marketing Conclusion
Stock Price (2 Years)
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
IPO: $20; 117,640,624 Shares (NYSE: HLT)
Current: $23.37; 1.232 M Shares
Human Resources Management Finance Marketing Conclusion
Stock Price (2 Years)
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
IPO: $20; 117,640,624 Shares (NYSE: HLT)
Current: $23.37; 1.232 M Shares
Human Resources Management Finance Marketing Conclusion
Income Statement - Numbers in Millions
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
Human Resources Management Finance Marketing Conclusion
Balance Sheet - Numbers in Millions
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
Current Ratio
Measures a company’s ability to
pay short-term obligations
Current Assets
Current Liabilities
Human Resources Management Finance Marketing Conclusion
Short-Term Solvency
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
Cash Ratio
Measures the ability to pay off
debt obligation using cash on
hand
Cash and Equivalents
Current Liabilities
Human Resources Management Finance Marketing Conclusion
Short-Term Solvency
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
Total Debt Ratio
A conservative measure of
long-term solvency
Total Liabilities
Total Assets
Human Resources Management Finance Marketing Conclusion
Long-Term Solvency
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
Debt-to-Equity Ratio
A measure of debt leverage
Total Liabilities
Total Stockholder’s Equity
Human Resources Management Finance Marketing External Analysis
Long-Term Solvency
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
Total Asset Turnover
Sales generated per dollar of
assets
Sales
Total Assets
Human Resources Management Finance Marketing External Analysis
Asset Utilization
Operations Finance Marketing External Analysis
Profit Margin
Shows what percentage of every
dollar is kept in earnings
Net Income
Sales
Human Resources Management Finance Marketing External Analysis
Profitability
Operations Finance Marketing External Analysis
Return on Assets
Earnings that are generated from
invested capital
Net Income
Total assets
Human Resources Management Finance Marketing Conclusion
Profitability
Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
Price Earnings Ratio
Amount investors pay for one
dollar of earnings
Market Value per Share
Earnings per Share
Human Resources Management Finance Marketing External Analysis
Market Value
Operations Finance Marketing External Analysis
The percentage of all rental
units (rooms) are occupied or
rented at a given time
Human Resources Management Finance Marketing External Analysis
Occupancy Rate
Operations Finance Marketing External Analysis
Marketing
Products
Finance Marketing ConclusionFinance Marketing External Analysis SWOT
Products
Finance Marketing External Analysis SWOT
Products
Finance Marketing ConclusionFinance Marketing External Analysis SWOT
Products
Finance Marketing External Analysis SWOT
Price: Average Daily Rate (ADR)
$141.52 $150.67$169.89
Finance Marketing External Analysis SWOT
Price: Average Daily Rate (ADR)
$369.00 $357.00$349.00
Finance Marketing External Analysis SWOT
Price: Average Daily Rate (ADR)
$111.21 $103.00$113.00
Finance Marketing External Analysis SWOT
Price: Pricing Strategies
Finance Marketing External Analysis SWOT
● Premium pricing strategy
○ High-level prices
■ Perceived to have excellent
quality and additional
characteristics and features
● Variable pricing
Price
Finance Marketing External Analysis SWOT
● Guaranteed lowest price
● Why book directly with Hilton?
○ Always find the lowest price on our
websites or we'll give you $50.
Place
● Website booking on
hilton.com
● Third-party booking
Finance Marketing External Analysis SWOT
Place
● 4,440 hotels
○ Over 730,000 rooms
● 97 countries and territories
○ All 50 states
Finance Marketing External Analysis SWOT
Place
● Three major factors when a new Hilton location is considered:
○ Where - The Geographical location must be convenient
○ When - Timely response to a customer’s schedule
○ How - Events and meetings tailored to customer’s needs
Finance Marketing External Analysis SWOT
Promotion
Advertising
Finance Marketing External Analysis SWOT
Average: $246 Million per Year
Public Relations
Finance Marketing External Analysis SWOT
● “Nassetta Inducted into Hospitality Industry Hall of
Honor”- 10/21/2015
● “Hilton Hawaiian Village Prepares Thanksgiving Meals for
Hundreds in Need”- 11/25/15
● “Hilton Atlanta Sells for $146 million”- 10/30/15
● “Hilton Hotel Reports POS Data Breach” 11/26/15
● “Hilton Brings Digital Key to Android”- 10/6/15
Sales Promotion
Finance Marketing ConclusionFinance Marketing External Analysis SWOT
Personal Selling
Finance Marketing Conclusion
● “Globally Motivated, Individually
Focused”
● Over 700 sales professionals in 34
regional offices around the world
● Strategic Account Management
team dedicated to negotiating
customizable deals with
customers
● Drives profit and leads to stronger
and more committed relationships
Finance Marketing External Analysis SWOT
Direct Marketing
Finance Marketing Conclusion
● HHonors program and app
○ Various tiers
● Developed customer database
● Strong social media presence and
interaction
Finance Marketing External Analysis SWOT
Direct Marketing
Finance Marketing ConclusionFinance Marketing External Analysis SWOT
Direct Marketing
Finance Marketing ConclusionFinance Marketing External Analysis SWOT
External Analysis
Macroeconomic Factors
● Volatile industry
● Changes in demands for hotel rooms, occupancy levels, and room rates
○ High dependency on the economic cycle
● Changes in the consumer location preference
● Dependent on transportation industry
● Cyclical and seasonal
● Environmental laws
● Government regulation
Marketing External Analysis SWOT Sustainable Competitive Adv.
Macroeconomic Factors
Finance Marketing External Analysis
● War, political conditions or civil unrest
● Decreased corporate or government travel-related budgets and spending
● Statements, actions, or interventions by governmental officials
● Negative media exposure in certain locations (Ebola, Sars, H1N1, Avian flu)
● Cyber-Attacks
● Natural or man-made disasters
Marketing External Analysis SWOT Sustainable Competitive Adv.
Industry Competition: Direct
Finance Marketing Conclusion
● Current Stock Price: 71.11 per share
○ P/E Ratio: 26.45
○ Average Volume of 26.2 M
● Social Involvement
● “We Embrace Change”
○ Innovation has always been part
of the Marriott story
Marketing External Analysis SWOT Sustainable Competitive Adv.
Industry Competition: Direct
Finance Marketing Conclusion
● Current Stock Price: 50.06 per share
○ P/E Ratio: 27.42
○ Average Volume of 440,492
● Environmental Friendly
● “We make a difference in the lives of
those we 'touch' every day.”
Marketing External Analysis SWOT Sustainable Competitive Adv.
Industry Competition: Indirect
Finance Marketing ConclusionMarketing External Analysis SWOT Sustainable Competitive Adv.
Industry Technology
● Apps
● Digital Key
● Website
Marketing External Analysis SWOT Sustainable Competitive Adv.
Industry Consumer
Finance Marketing Conclusion
● According to “Small Business” by Demand Media, “Trend Watching”, and
“Hospitality Technology”, the industry consumer is:
○ Looking for value
○ Typically possesses disposable income
○ Appreciates option of Rewards program
○ Prefer self-service check-ins and online transactions
○ Interested in personal health and wellness
Marketing External Analysis SWOT Sustainable Competitive Adv.
SWOT Analysis
Positive Negative
Internal Strengths Weaknesses
External Opportunities Threats
SWOT Analysis
Strengths
● Corporate leadership
● Corporate culture
● Strong intellectual capital
● Ethnic diversity amongst employees
● Organizational structure
● HRM
● HHonors database & app
● Industry leader in market share
● Premium brand image
Positive Negative
Internal Strengths Weaknesses
External Opportunities Threats
External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
Weaknesses
● Lack of advertising measurability
● High long-term debt
● Decreasing timeshare profitability
● HHonors promotions
● Underleveraged HHonors database
● Underleveraged strategic alliances
● Lack of room standardization
● Research and Development department Positive Negative
Internal Strengths Weaknesses
External Opportunities Threats
External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
Opportunities
● Exclusive booking to Hilton.com
● App & technology development
● Economic recovery
● Increase in consumer disposable income
● Decreased transportation costs
● Growing availability of strategic alliances
● Reduced threat of disease
● Increased credit card security Positive Negative
Internal Strengths Weaknesses
External Opportunities Threats
External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
Threats
● Increase of competition (direct and indirect)
● New forms of travel stay
● Growth of third-party booking sites
● Marriott’s recent acquisition of starwood
● High market volatility
● International civil unrest
● Decrease in international travel
● Industry wide cyber attacks
● Increase in government regulations
Positive Negative
Internal Strengths Weaknesses
External Opportunities Threats
External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
Sustainable Competitive
Advantage
Sustainable Competitive Advantage
A long-term competitive advantage that is not easily duplicated by other competitors.
This is developed by solidifying a pristine brand image, utilizing intellectual
capital, offering exceptional services, and strengthening customer loyalty.
SWOT Sustainable Competitive Adv. Viable Alternatives Minor Recommendations
New Sources of Sustainable
Competitive Advantage
● Develop our database asset
○ Comprehensive loyalty program and application
● Leverage intellectual capital
○ Empower front-line employees
● Promote and enhance positive consumer perception of brand image
SWOT Sustainable Competitive Adv. Viable Alternatives Minor Recommendations
Viable Alternatives
Viable Alternatives
● Implement an on-going immersion program
○ Management develops a stronger connection to employees and customers
○ Expensive and time-consuming
● Initiate a Business Leadership Summit
○ Collaborate with and learn from leaders in other industries
○ Difficult to implement
Sustainable Competitive Adv. Viable Alternatives Minor Recommendations Major Prog. Recommendation
Viable Alternatives
● Standardize, renovate, and modernize all rooms
○ Provides brand continuity
○ Expensive
● Create a new Research & Development department
○ Leverages new opportunities and fosters innovation
○ Costly undertaking
Sustainable Competitive Adv. Viable Alternatives Minor Recommendations Major Prog. Recommendation
Minor Recommendations
Minor Recommendations
● Streamline distribution channels
○ Utilize our leverage in relationships with third party sources
● Strengthen and create strategic alliances
● Establish Matrix structure
○ Develop an Employee Service Representative position
○ Connect with employees
Viable Alternatives Minor Recommendations Major Prog. Recommendation Areas of Future Study
Major Programmatic
Recommendation
Customer Tiers
Blue (0 Points) Silver (1,000) Gold (7,000) Diamond (12,000)
● Room
selection
● Digital key
● Room
customization
● Blue rewards
● iPads
● Premium Wi-fi
● Spa access
● Premium
Spotify & Hulu
access
● Late check-out
● Digital check-in
● Silver Rewards
● Personal
assistant
● Premium Starz
access
● VIP parking
● Exclusive hors
d’oeuvres
● Gold Rewards
● Exclusive
concert access
● Sleep Number
bed
$1 of hotel = 1 Point
$1 of spa = 2 Points
$1 of event space = 2 Points
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
● A continuation of some of the services from HHonors
○ Selecting a specific room
○ Digital room key
● Additional customization options that Hilton can store in database
○ Number of pillows
○ Housekeeping times
○ Temperature of the room
○ Shampoo type
○ Drinks upon arrival
Blue Tier
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
(0 Points)
● Premium Wi-fi
● Exclusive spa access
○ Pool, sauna, and shower access
● Spotify & Hulu access
● Late check-out
● Digital check-in
● iPads
Silver Tier
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
(1,000 Points)
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
● Menu of options
○ Per geographic location
○ Uncovered during research
● Personal assistant per Dwell floors (as needed)
○ Digital access to assistants
● Starz premium access
● VIP parking
● Exclusive hors d’oeuvres upon arrival
Gold Tier
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
(7,000 Points)
● Exclusive event access
○ Meet and greets
○ Concert access
○ Red carpet access
● Sleep Number beds
Diamond Tier
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
(12,000 Points)
Cultural Feasibility
● Corporate philosophy
● Positive attitudes toward change and innovation
● Customer focus
● Eager to improve
“We were complacent. There was no culture of innovation. It was more a culture
of do it at a relatively slow pace and do it the way we’ve always done it... It just
wasn’t organized in the right way.”
- Christopher Nassetta
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
Financial Feasibility
● 44 million HHonors members
○ 50% of guests are HHonors members
○ $720 Million spent in 2014 for HHonors
○ Additional profit loss from redeemed reward nights
● $730 Million of Cash flow in 2014
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
Rollout
● In January 2016:
○ 150 strategic, domestic locations with varying demographics
■ Opt-in for current HHonors members
■ One year of data gathering
■ Survey
● In January 2017:
○ One year to redeem points
■ Six-months of final point accumulation
■ Phase out HHonors program
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
Rollout
● In July 2017:
○ One year to redeem points
■ Six-months of Dwell points
■ Final phase out HHonors program
● In January 2018:
○ Full implementation of Dwell program
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
Expected Outcomes
● Improved customer database
● Differentiated customers
● Increase in customer loyalty
● Increased customer share
● Move to value-based pricing
● Leverage strategic alliances
● Movement away from third-party sources
● Decrease in long-term debt
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
Metrics
● Enrollment Data
○ Carry over from HHonors
○ New Dwell members
○ Changes in tier population
○ Member retention rates
● Member Satisfaction Survey
● Time spent on app and with value-added programs
● Track spa revenue
● Metrics based on geographic location
● Third-party booking changes
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
5 Golden Questions
● As an enrolled Hilton Dwell Member…
○ How did you hear about Dwell?
○ What did you like about the Dwell?
○ What did you dislike about Dwell?
○ Will you be using the Dwell Program more often?
○ Would you like to opt-in for more loyalty member information?
Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
Areas of Future Study
Areas of Future Study
● HRM program
○ Differentiate employees by value
○ Further utilize matrix structure and diversity
● High school and college curriculum
● Brand expansion opportunities
Major Prog. Recommendation Areas of Future Study Would You Invest? Spiritual Implications
Sources
● http://www.businessinsider.com/hilton-ceo-airbnb-competition-2015-10
● http://smallbusiness.chron.com/consumer-segments-hotel-industry-13764.html
● http://www.lawcrossing.com/article/6576/kristin-campbell-hilton-worldwide/
● http://hospitalitytechnology.edgl.com/news/Top-5-Trends-in-Hotels-for-201597582
● http://www.businesswire.com/news/home/20150810005258/en/william-margaritis-joins-hilton-worldwide-executive-vice#.vhqkhbw9bp8
● http://s1.q4cdn.com/246698567/files/annual-reports/2014/hilton_2014_ar.pdf
● http://www.hoteliermagazine.com/hilton-ceo-chris-nassetta-inducted-into-hospitality-industry-hall-of-honor/
● http://www.diversityinc.com/christopher-nassetta/
● http://www.washingtonpost.com/business/capitalbusiness/christopher-nassetta-the-man-who-turned-around-hilton/2014/07/03/43071478-fd5a-11e3-932c-0a55
b81f48ce_story.html
● http://www.inspirationalstories.com/quotes/t/stephen-bollenbach/
● http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGuvnUDVX14E&refer=home
● http://www.woopidoo.com/business_quotes/authors/conrad-hilton/index.htm#QQKAJ5HiZr0QV9FJ.99
● http://jobs.hiltonworldwide.com/en/universities/north-america/
● http://www.glassdoor.com/Reviews/Hilton-Worldwide-Reviews-E330.htm
● http://www.cpp.edu/~career/employer/events/Fall_Career_Fair.shtml
● http://reviews.greatplacetowork.com/hilton-worldwide
● http://jobs.hiltonworldwide.com/why-choose-us/career-development/
● http://www.wsj.com/articles/SB10001424053111903341404576484221378689018
● http://www.hiltonworldwide.com/development/performance-advantage/revenue-management/
● http://news.hiltongardeninn.com/index.cfm/newsroom/detail/28683
● https://www.hiltontohome.com
● http://searchenginewatch.com/sew/news/2401430/hilton-uses-google-hotel-ads-to-entice-new-customers#
● http://www.hiltonworldwideglobalmediacenter.com/index.cfm/newsroom/detail/2117
● https://www.thinkwithgoogle.com/case-studies/hilton-worldwide-drives-higher-roi-with-google-hotel-ads.html
● https://think.storage.googleapis.com/docs/hilton-worldwide-drives-higher-roi-with-google-hotel-ads_case-studies.pdf
● http://www3.hilton.com/en/offers/index.htm?cid=OM,HH,RedesignV1A4,BrandNav
● http://www.wsj.com/articles/airbnb-crimps-hotels-power-on-pricing-1443519181
● http://www.wsj.com/articles/secrets-to-creating-a-better-hotel-room-1443634711
● http://www.mmgyglobal.com/news/news-travelers-intend-to-go-on-more-vacations-in-2015/
● https://s-media-cache-ak0.pinimg.com/736x/71/70/d2/7170d2e6e2b40013d71a224d81a8c3d4.jpg
Would You Invest? Spiritual Implications Conclusion
Sources
● http://www.mmgyglobal.com/news/infographic-why-do-people-travel/
● http://www.wsj.com/articles/a-suite-spot-for-hotel-investors-1442914202
● http://www.wsj.com/articles/hiltons-profit-slides-as-expenses-rise-1438167113
● http://www.businesswire.com/news/home/20151001006091/en/Hilton-Worldwide-Rolls-Industry-Leading-GED-Assistance-Program#.Vg73ILSPD8E
● http://www.businesswire.com/news/home/20151001005872/en/Professionals-Generations-Nations-Agree-Face-to-Face-Meetings-Preferred#.Vg73lrSPD8E
● http://auction.hhonors.com
● http://news.hiltonworldwide.com/index.cfm/news/hilton-worldwide-unveils-industryleading-parental-leave-policies
● http://www.businesswire.com/news/home/20150901005477/en/Hilton-Uber-Partner-Create-Seamless-Travel-Experience#.Vg75g7SPD8E
● http://news.hiltonworldwide.com/index.cfm/news/hilton-introduces-digital-key-further-enhancing-industryleading-hhonors-app-
● http://www.jdpower.com/press-releases/2015-north-america-hotel-guest-satisfaction-index-study
● http://www.usatoday.com/story/travel/2015/02/13/conrad-hotels-hilton-book-rooms-instagram/23311511/
● http://www.usatoday.com/story/travel/hotels/2014/07/28/hilton-smartphone-key-room-selection-digital-check-in/13284595/
● https://www.washingtonpost.com/business/capitalbusiness/marriott-hilton-look-to-younger-travelers-for-new-ideas/2013/06/29/dfb51916-dcfc-11e2-bd83-e99e
43c336ed_story.html
● http://thumbnails.visually.netdna-cdn.com/top-5-trends-in-hospitality-for-2014-infographic_52a6495e72da7.jpg
● http://www.bighospitality.co.uk/var/plain_site/storage/images/media/images/digital-marketing/9014997-1-eng-GB/Digital-marketing.jpg
● http://www.hospitalitynet.org/photo/global/154000973/73012978.html
● http://www.nytimes.com/2013/01/14/business/media/hilton-site-prescribes-vacations-for-workers-ills.html?_r=1
● http://news.hiltonworldwide.com/index.cfm/newsroom/detail/27192
● http://hiltonworldwide.hilton.com/en/ww/ourbestrates/terms.jhtml
● http://www.businessinsider.com/how-hotels-should-adapt-to-growing-threat-airbnb-2015-7
● http://www.pwc.com/us/en/asset-management/hospitality-leisure/publications/assets/pwc-hospitality-directions-us-august-2015.pdf
● http://www.tnooz.com/article/Online-travel-agents-and-Hotels-Are-they-friends-enemies-or-frenemies/
● http://hotelnewsnow.com/article/13323/ota-evolution-demands-more-pricing-discipline
● http://blog.hebsdigital.com/a-call-to-arms-how-to-shift-market-share-from-the-otas-to-the-hotel-website/
● http://skift.com/2015/07/22/hilton-gets-aggressive-telling-travelers-the-lowest-price-is-only-on-hilton-com/
● http://press.fourseasons.com/news-releases/2014/four-seasons-launches-new-vacation-rental-website-showcasing-portfolio-of-exclusive-urban-and-resort-resi
dences-around-the-world/
● http://www.hotelnewsnow.com/Article/13949/Quit-fighting-and-join-Airbnb
● http://www.leadershipsynergies.com/docs/060131_article_HiltonSAMVelocity.pdf
● http://www.pointswithacrew.com/wp-content/uploads/2014/10/hilton-select-your-room.jpg
Would You Invest? Spiritual Implications Conclusion

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STRAT Presentation

  • 1. Hilton Alex Mutch - Marketing Management Brenna Tunnicliff - Marketing Management David Hong - Marketing Management Edwin Chao - Marketing Management Leslie Teater - Marketing Management
  • 2. Hilton Worldwide Brands Introduction Mission Statement Opportunity Statement Sustainable Competitive Adv.
  • 4. Background & History 1919 1927 Conrad Hilton bought first hotel First hotel to add amenities 1946 Hilton Hotels Corporation goes public Multi-hotel reservation system 1948 1957 Marriot enters industry Hyatt founded 1959 First airport hotel opened 1929 - 1939 Great Depression Introduction Background & History Mission Statement Opportunity Statement
  • 5. Background & History 1962 1964 Hyatt goes public Hilton International Corporation splits to go global Barron Hilton replaces Conrad Hilton as President 1967 1973 Hilton has customer service breakthrough Introduces HHonors loyalty program 1987 1995 First Hilton website launches Hilton International sold Conrad Hilton passes away 1979 Introduction Background & History Mission Statement Opportunity Statement
  • 6. Background & History 1996 2006 Stephen Bollenbach is first non-Hilton CEO Hilton International reacquired Blackstone Group buys Hilton and goes private 2007 2008 Airbnb founded Lightstay introduced 2009 2013 Hilton returns to NYSE Christopher Nassetta becomes president and CEO Become Hilton Worldwide and changes HQ Hilton launches a vacation subsidiary 2002 Introduction Background & History Mission Statement Opportunity Statement
  • 8. Mission Statement “To be the preeminent global hospitality company - the first choice of guests, team members, and owners alike.” Background & History Mission Statement Opportunity Statement Sustainable Competitive Adv.
  • 10. Opportunity Statement The hospitality industry is highly competitive, filled with pricing and sales promotions, resulting in price wars. In this industry, Hilton possesses a pristine brand image that has the ability to be further leveraged in order to differentiate itself from competitors in the future. With the current influx of consumers in the lodging industry, Hilton is now presented the opportunity to further utilize its intellectual capital and create sustainable competitive advantage. Mission Statement Opportunity Statement Sustainable Competitive Adv. Significance to Leadership
  • 12. Sustainable Competitive Advantage A long-term competitive advantage that is not easily duplicated by other competitors. This is developed by solidifying a pristine brand image, utilizing intellectual capital, offering exceptional services, and strengthening customer loyalty. Opportunity Statement Sustainable Competitive Adv. Significance to Leadership Research Methodology
  • 14. Significance To Leadership Hilton is a part of a highly competitive and fast growing industry in hotel service. As a result, we have uncovered new forms of underleveraged resources within the company and have developed detailed programmatic recommendations that will maximize these forms of sustainable competitive advantage. Sustainable Competitive Adv. Significance To Leadership Research Methodology Expected Outcomes
  • 16. Research Methodology ● Secondary research ● Environmental scanning & monitoring ● Trusted, peer-reviewed sources ○ Google Finance ○ Business Insider ○ Forbes ○ Wall Street Journal ● Domestic focus Significance to Leadership Research Methodology Expected Outcomes Leadership
  • 18. Expected Outcomes ● Improved customer database ● Differentiated customers ● Increase in customer loyalty ● Increased customer share ● Move to value-based pricing ● Leverage strategic alliances ● Movement away from third-party sources ● Decrease in long-term debt Research Methodology Expected Outcomes Leadership Corporate Culture
  • 20. Leadership ● Three Presidents; Nine Executive Vice Presidents ● Most have worked with Hilton eight years or less ● High levels of experience in the hospitality industry Joe Berger Kristin Campbell Christopher Nassetta Kevin JacobsIan Carter Jim Holthouser William Margaritis Matt Richardson Martin Rinck Matthew Schuyler Chris Silcock Simon Vincent Mark Wang Expected Outcomes Leadership Corporate Culture Human Resources Management
  • 21. Conrad Hilton ● CEO & Founder of Hilton ● Emphasis on innovation and empowerment ● Focus on charity and developing the community “Success seems to be connected with action. Successful people keep moving. They make mistakes, but they don't quit.” “Enthusiasm is a vital element toward the individual success of every man or woman.” “The practice of charity will bind us... will bind all men in one great brotherhood.” (CEO 1919-1967) Expected Outcomes Leadership Corporate Culture Human Resources Management
  • 22. Stephen Bollenbach ● Prior CEO of Hilton ● Worked as Donald Trump’s CFO ● Worked with Disney & Marriott as CFO & Treasurer ● Recruited by Barron Hilton in 1996 ● Focused on making profit with every decision “There are a lot of bargains out there, ... Every acquisition you make is accretive to earnings. It's a real value creator.” “We want to continue getting out of the real estate business and more into the fee business.” (CEO 1996-2007) Expected Outcomes Leadership Corporate Culture Human Resources Management
  • 23. Christopher Nassetta ● Previously worked for Host Hotels and Resorts as COO ○ Later became CEO ● Hired by Jonathan Gray of Blackstone Group as President and CEO for Hilton in 2007 ● Made a worldwide Hilton tour ● Began changes in organizational structure “People were living in ivory towers. Some in Beverly Hills. We didn’t have the connectivity. The hotels were saying, ‘Leave us alone. I don’t like you corporate types.’ We had become siloed.” (CEO 2007-Present) Expected Outcomes Leadership Corporate Culture Human Resources Management
  • 24. Christopher Nassetta ● Implemented a corporate wide CRM system ● Emphasis on leveraging intellectual capital ● Customer focused “Even the posters listing corporate guidelines differed from hotel to hotel, driving Nassetta — who puts great stock in business culture — crazy.” “There was a lot of what he did that was simply listening to the customer.” Expected Outcomes Leadership Corporate Culture Human Resources Management (CEO 2007-Present)
  • 25. Joe Berger ● Executive Vice President and President of the Americas ● Oversees the operations of over 350 corporately owned Hilton hotels in the Americas ● Graduated with a masters degree in finance ● Career in the Hotel Industry ○ Prior to Hilton, four years at LXR as Co-President ○ Worked internationally in operations and finance for Marriott (VP 2007-Present) Expected Outcomes Leadership Corporate Culture Human Resources Management
  • 26. William (Bill) Margaritis ● Oversees corporate branding, internal and external communications, government relations, issues and crisis management, and corporate responsibility programs ● Been with the company since August 2015 ○ Spent prior fifteen years at FedEx as Senior Vice President, Global Communications & Investor Relations ■ One of the only Executives without hospitality experience ● Graduated from Michigan State with a degree in business (VP 2015-Present) Expected Outcomes Leadership Corporate Culture Human Resources Management
  • 27. William (Bill) Margaritis "As we continue to gain momentum and accelerate our growth around the world, finding additional ways to reach, engage and connect with our most critical stakeholders becomes even more important. Bill’s breadth of experience and his broad understanding of global business and markets will help us build, strengthen and execute an integrated strategy across Hilton that will enhance our industry leadership position and our ability to differentiate ourselves in the marketplace.” - Christopher Nassetta Background & History Mission Statement Opportunity Statement Significance of LeadershipExpected Outcomes Leadership Corporate Culture Human Resources Management
  • 28. Chris Silcock ● Leads the company's global commercial team, including sales, revenue management, regional marketing and eCommerce, and Hilton reservations and customer care ● Twenty years in Hilton ○ Began his career with Hilton as a catering and banquet waiter ○ Head of Sales and Revenue Management ○ Head of Online and Regional Marketing ● Degree in Computer Studies from University of Essex (VP 1995-Present) Expected Outcomes Leadership Corporate Culture Human Resources Management
  • 30. Values Hospitality “We're passionate about delivering exceptional guest experiences.” Integrity “We do the right thing, all the time.” Leadership “We're leaders in our industry and in our communities.” Teamwork “We're team players in everything we do.” Ownership “We're the owners of our actions and decisions.” Now “We operate with a sense of urgency and discipline.” Leadership Corporate Culture Human Resources Management Operations
  • 31. Corporate Culture Leadership Corporate Culture Human Resources Management Operations Hilton’s Diversity Statement “Our priority is to understand and embrace unique global cultures to ensure that our Team Members are seen, heard, valued and respected. As a result, our senior leadership is committed to investing in programs that promote diversity such as, inclusion training and celebrations of international traditions and customs. Globally, we also aim to increase our presence in local communities through employee volunteerism, partnerships and giving programs.” “Ultimately, I have a very simple philosophy on diversity: It is what allows us to perform and deliver for our customers and, frankly, outperform the competition.” - Christopher Nassetta
  • 32. Internal Diversity Programs ● Executive Diversity Council ● Team Member Resource Groups ● Diversity Compliance Training ○ Diversity, Inclusion You e-Training course ● Internal Communications “As a part of our commitment to diversity and inclusion, we created the Executive Diversity Council, comprised of the company's most senior leaders, and chaired by our President and CEO, Christopher J. Nassetta. The Executive Diversity Council provides oversight and direction to the overall diversity strategy related to our culture, talent and marketplace.” - Christopher Nassetta Leadership Corporate Culture Human Resources Management Operations
  • 33. Organizational Structure Christopher Nassetta CEO Jim Holthouser Kevin Jacobs Matthew Schuyler Simon VincentMatt Richardson Kristin Campbell Ian Carter Martin Rinck Mark Wang William Margaritis EVP Corporate Affairs Joe Berger EVP, President, Americas Chris Silcock EVP and CMO Middle Management Staff Members Leadership Corporate Culture Human Resources Management Operations
  • 34. Organizational Structure Leadership Corporate Culture Human Resources Management Operations “People were living in ivory towers. Some in Beverly Hills. We didn’t have the connectivity. The hotels were saying, ‘Leave us alone. I don’t like you corporate types.’ We had become siloed.” - Christopher Nassetta
  • 36. Human Resources Corporate Culture Human Resources Management Operations Finance “You first have to get the right people on the bus, get the wrong people off the bus, make sure the right people are in the right seats before you decide where you’re driving the bus’ … that was a philosophy that I followed.” - Christopher Nassetta
  • 37. Human Resources: Recruiting ● Core School Alliances ○ 16 schools where recruiters look for potential interns ● Career page ○ Indeed.com ● Hilton Worldwide University Corporate Culture Human Resources Management Operations Finance
  • 38. Human Resources: Hiring Corporate Culture Human Resources Management Finance Marketing ● Application is online ○ Resume sent to different departments Corporate Culture Human Resources Management Operations Finance
  • 39. Human Resources: Training ● Part-Time: 20 hours ● Full-Time: 45 hours ● Hilton Worldwide University ○ Five Different Colleges Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
  • 40. Human Resources: Training Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
  • 41. Human Resources: Retaining “Our Team Members are at the heart of our success and we are committed to ensuring Hilton is a place where they can grow both personally and professionally.” -Christopher J. Nassetta Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
  • 42. Human Resources: Retaining ● Professional development opportunities ● Nassetta’s annual “Catch Me at My Best” ● 30 paid days of holiday/vacation ● Tuition reimbursement of $1200 ● GED Assistance Program ● Parental Leave Program Corporate Culture Human Resources Management Finance MarketingCorporate Culture Human Resources Management Operations Finance
  • 44. Operations: Overview ● HQ in McLean, Virginia ○ Previous HQ was in Beverly Hills, California until 2009 ● Total of 157,000 Team Members around the world Human Resource Management Operations Finance Marketing
  • 45. Operations: Statistics Brand Hotels Total Rooms Hilton 560 28.1% Hampton 2,005 27.8% Doubletree 410 14.1% Hilton Garden Inn 618 12.0% Human Resource Management Operations Finance Marketing
  • 46. Operations: Ownership Human Resource Management Operations Finance Marketing Hampton Inn Franchise Ranking by Entrepreneur.com
  • 48. Human Resources Management Finance Marketing Conclusion Financial Introduction Operations Finance Marketing External Analysis
  • 49. Human Resources Management Finance Marketing Conclusion Stock Price (2 Years) Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis IPO: $20; 117,640,624 Shares (NYSE: HLT) Current: $23.37; 1.232 M Shares
  • 50. Human Resources Management Finance Marketing Conclusion Stock Price (2 Years) Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis IPO: $20; 117,640,624 Shares (NYSE: HLT) Current: $23.37; 1.232 M Shares
  • 51. Human Resources Management Finance Marketing Conclusion Stock Price (2 Years) Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis IPO: $20; 117,640,624 Shares (NYSE: HLT) Current: $23.37; 1.232 M Shares
  • 52. Human Resources Management Finance Marketing Conclusion Income Statement - Numbers in Millions Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
  • 53. Human Resources Management Finance Marketing Conclusion Balance Sheet - Numbers in Millions Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
  • 54. Current Ratio Measures a company’s ability to pay short-term obligations Current Assets Current Liabilities Human Resources Management Finance Marketing Conclusion Short-Term Solvency Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
  • 55. Cash Ratio Measures the ability to pay off debt obligation using cash on hand Cash and Equivalents Current Liabilities Human Resources Management Finance Marketing Conclusion Short-Term Solvency Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
  • 56. Total Debt Ratio A conservative measure of long-term solvency Total Liabilities Total Assets Human Resources Management Finance Marketing Conclusion Long-Term Solvency Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
  • 57. Debt-to-Equity Ratio A measure of debt leverage Total Liabilities Total Stockholder’s Equity Human Resources Management Finance Marketing External Analysis Long-Term Solvency Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
  • 58. Total Asset Turnover Sales generated per dollar of assets Sales Total Assets Human Resources Management Finance Marketing External Analysis Asset Utilization Operations Finance Marketing External Analysis
  • 59. Profit Margin Shows what percentage of every dollar is kept in earnings Net Income Sales Human Resources Management Finance Marketing External Analysis Profitability Operations Finance Marketing External Analysis
  • 60. Return on Assets Earnings that are generated from invested capital Net Income Total assets Human Resources Management Finance Marketing Conclusion Profitability Human Resources Management Finance Marketing External AnalysisOperations Finance Marketing External Analysis
  • 61. Price Earnings Ratio Amount investors pay for one dollar of earnings Market Value per Share Earnings per Share Human Resources Management Finance Marketing External Analysis Market Value Operations Finance Marketing External Analysis
  • 62. The percentage of all rental units (rooms) are occupied or rented at a given time Human Resources Management Finance Marketing External Analysis Occupancy Rate Operations Finance Marketing External Analysis
  • 64. Products Finance Marketing ConclusionFinance Marketing External Analysis SWOT
  • 66. Products Finance Marketing ConclusionFinance Marketing External Analysis SWOT
  • 68. Price: Average Daily Rate (ADR) $141.52 $150.67$169.89 Finance Marketing External Analysis SWOT
  • 69. Price: Average Daily Rate (ADR) $369.00 $357.00$349.00 Finance Marketing External Analysis SWOT
  • 70. Price: Average Daily Rate (ADR) $111.21 $103.00$113.00 Finance Marketing External Analysis SWOT
  • 71. Price: Pricing Strategies Finance Marketing External Analysis SWOT ● Premium pricing strategy ○ High-level prices ■ Perceived to have excellent quality and additional characteristics and features ● Variable pricing
  • 72. Price Finance Marketing External Analysis SWOT ● Guaranteed lowest price ● Why book directly with Hilton? ○ Always find the lowest price on our websites or we'll give you $50.
  • 73. Place ● Website booking on hilton.com ● Third-party booking Finance Marketing External Analysis SWOT
  • 74. Place ● 4,440 hotels ○ Over 730,000 rooms ● 97 countries and territories ○ All 50 states Finance Marketing External Analysis SWOT
  • 75. Place ● Three major factors when a new Hilton location is considered: ○ Where - The Geographical location must be convenient ○ When - Timely response to a customer’s schedule ○ How - Events and meetings tailored to customer’s needs Finance Marketing External Analysis SWOT
  • 77. Advertising Finance Marketing External Analysis SWOT Average: $246 Million per Year
  • 78. Public Relations Finance Marketing External Analysis SWOT ● “Nassetta Inducted into Hospitality Industry Hall of Honor”- 10/21/2015 ● “Hilton Hawaiian Village Prepares Thanksgiving Meals for Hundreds in Need”- 11/25/15 ● “Hilton Atlanta Sells for $146 million”- 10/30/15 ● “Hilton Hotel Reports POS Data Breach” 11/26/15 ● “Hilton Brings Digital Key to Android”- 10/6/15
  • 79. Sales Promotion Finance Marketing ConclusionFinance Marketing External Analysis SWOT
  • 80. Personal Selling Finance Marketing Conclusion ● “Globally Motivated, Individually Focused” ● Over 700 sales professionals in 34 regional offices around the world ● Strategic Account Management team dedicated to negotiating customizable deals with customers ● Drives profit and leads to stronger and more committed relationships Finance Marketing External Analysis SWOT
  • 81. Direct Marketing Finance Marketing Conclusion ● HHonors program and app ○ Various tiers ● Developed customer database ● Strong social media presence and interaction Finance Marketing External Analysis SWOT
  • 82. Direct Marketing Finance Marketing ConclusionFinance Marketing External Analysis SWOT
  • 83. Direct Marketing Finance Marketing ConclusionFinance Marketing External Analysis SWOT
  • 85. Macroeconomic Factors ● Volatile industry ● Changes in demands for hotel rooms, occupancy levels, and room rates ○ High dependency on the economic cycle ● Changes in the consumer location preference ● Dependent on transportation industry ● Cyclical and seasonal ● Environmental laws ● Government regulation Marketing External Analysis SWOT Sustainable Competitive Adv.
  • 86. Macroeconomic Factors Finance Marketing External Analysis ● War, political conditions or civil unrest ● Decreased corporate or government travel-related budgets and spending ● Statements, actions, or interventions by governmental officials ● Negative media exposure in certain locations (Ebola, Sars, H1N1, Avian flu) ● Cyber-Attacks ● Natural or man-made disasters Marketing External Analysis SWOT Sustainable Competitive Adv.
  • 87. Industry Competition: Direct Finance Marketing Conclusion ● Current Stock Price: 71.11 per share ○ P/E Ratio: 26.45 ○ Average Volume of 26.2 M ● Social Involvement ● “We Embrace Change” ○ Innovation has always been part of the Marriott story Marketing External Analysis SWOT Sustainable Competitive Adv.
  • 88. Industry Competition: Direct Finance Marketing Conclusion ● Current Stock Price: 50.06 per share ○ P/E Ratio: 27.42 ○ Average Volume of 440,492 ● Environmental Friendly ● “We make a difference in the lives of those we 'touch' every day.” Marketing External Analysis SWOT Sustainable Competitive Adv.
  • 89. Industry Competition: Indirect Finance Marketing ConclusionMarketing External Analysis SWOT Sustainable Competitive Adv.
  • 90. Industry Technology ● Apps ● Digital Key ● Website Marketing External Analysis SWOT Sustainable Competitive Adv.
  • 91. Industry Consumer Finance Marketing Conclusion ● According to “Small Business” by Demand Media, “Trend Watching”, and “Hospitality Technology”, the industry consumer is: ○ Looking for value ○ Typically possesses disposable income ○ Appreciates option of Rewards program ○ Prefer self-service check-ins and online transactions ○ Interested in personal health and wellness Marketing External Analysis SWOT Sustainable Competitive Adv.
  • 93. Positive Negative Internal Strengths Weaknesses External Opportunities Threats SWOT Analysis
  • 94. Strengths ● Corporate leadership ● Corporate culture ● Strong intellectual capital ● Ethnic diversity amongst employees ● Organizational structure ● HRM ● HHonors database & app ● Industry leader in market share ● Premium brand image Positive Negative Internal Strengths Weaknesses External Opportunities Threats External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
  • 95. Weaknesses ● Lack of advertising measurability ● High long-term debt ● Decreasing timeshare profitability ● HHonors promotions ● Underleveraged HHonors database ● Underleveraged strategic alliances ● Lack of room standardization ● Research and Development department Positive Negative Internal Strengths Weaknesses External Opportunities Threats External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
  • 96. Opportunities ● Exclusive booking to Hilton.com ● App & technology development ● Economic recovery ● Increase in consumer disposable income ● Decreased transportation costs ● Growing availability of strategic alliances ● Reduced threat of disease ● Increased credit card security Positive Negative Internal Strengths Weaknesses External Opportunities Threats External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
  • 97. Threats ● Increase of competition (direct and indirect) ● New forms of travel stay ● Growth of third-party booking sites ● Marriott’s recent acquisition of starwood ● High market volatility ● International civil unrest ● Decrease in international travel ● Industry wide cyber attacks ● Increase in government regulations Positive Negative Internal Strengths Weaknesses External Opportunities Threats External Analysis SWOT Sustainable Competitive Adv. Viable Alternatives
  • 99. Sustainable Competitive Advantage A long-term competitive advantage that is not easily duplicated by other competitors. This is developed by solidifying a pristine brand image, utilizing intellectual capital, offering exceptional services, and strengthening customer loyalty. SWOT Sustainable Competitive Adv. Viable Alternatives Minor Recommendations
  • 100. New Sources of Sustainable Competitive Advantage ● Develop our database asset ○ Comprehensive loyalty program and application ● Leverage intellectual capital ○ Empower front-line employees ● Promote and enhance positive consumer perception of brand image SWOT Sustainable Competitive Adv. Viable Alternatives Minor Recommendations
  • 102. Viable Alternatives ● Implement an on-going immersion program ○ Management develops a stronger connection to employees and customers ○ Expensive and time-consuming ● Initiate a Business Leadership Summit ○ Collaborate with and learn from leaders in other industries ○ Difficult to implement Sustainable Competitive Adv. Viable Alternatives Minor Recommendations Major Prog. Recommendation
  • 103. Viable Alternatives ● Standardize, renovate, and modernize all rooms ○ Provides brand continuity ○ Expensive ● Create a new Research & Development department ○ Leverages new opportunities and fosters innovation ○ Costly undertaking Sustainable Competitive Adv. Viable Alternatives Minor Recommendations Major Prog. Recommendation
  • 105. Minor Recommendations ● Streamline distribution channels ○ Utilize our leverage in relationships with third party sources ● Strengthen and create strategic alliances ● Establish Matrix structure ○ Develop an Employee Service Representative position ○ Connect with employees Viable Alternatives Minor Recommendations Major Prog. Recommendation Areas of Future Study
  • 107.
  • 108. Customer Tiers Blue (0 Points) Silver (1,000) Gold (7,000) Diamond (12,000) ● Room selection ● Digital key ● Room customization ● Blue rewards ● iPads ● Premium Wi-fi ● Spa access ● Premium Spotify & Hulu access ● Late check-out ● Digital check-in ● Silver Rewards ● Personal assistant ● Premium Starz access ● VIP parking ● Exclusive hors d’oeuvres ● Gold Rewards ● Exclusive concert access ● Sleep Number bed $1 of hotel = 1 Point $1 of spa = 2 Points $1 of event space = 2 Points Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
  • 109. ● A continuation of some of the services from HHonors ○ Selecting a specific room ○ Digital room key ● Additional customization options that Hilton can store in database ○ Number of pillows ○ Housekeeping times ○ Temperature of the room ○ Shampoo type ○ Drinks upon arrival Blue Tier Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest? (0 Points)
  • 110. ● Premium Wi-fi ● Exclusive spa access ○ Pool, sauna, and shower access ● Spotify & Hulu access ● Late check-out ● Digital check-in ● iPads Silver Tier Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest? (1,000 Points)
  • 111. Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
  • 112. ● Menu of options ○ Per geographic location ○ Uncovered during research ● Personal assistant per Dwell floors (as needed) ○ Digital access to assistants ● Starz premium access ● VIP parking ● Exclusive hors d’oeuvres upon arrival Gold Tier Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest? (7,000 Points)
  • 113. ● Exclusive event access ○ Meet and greets ○ Concert access ○ Red carpet access ● Sleep Number beds Diamond Tier Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest? (12,000 Points)
  • 114. Cultural Feasibility ● Corporate philosophy ● Positive attitudes toward change and innovation ● Customer focus ● Eager to improve “We were complacent. There was no culture of innovation. It was more a culture of do it at a relatively slow pace and do it the way we’ve always done it... It just wasn’t organized in the right way.” - Christopher Nassetta Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
  • 115. Financial Feasibility ● 44 million HHonors members ○ 50% of guests are HHonors members ○ $720 Million spent in 2014 for HHonors ○ Additional profit loss from redeemed reward nights ● $730 Million of Cash flow in 2014 Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
  • 116. Rollout ● In January 2016: ○ 150 strategic, domestic locations with varying demographics ■ Opt-in for current HHonors members ■ One year of data gathering ■ Survey ● In January 2017: ○ One year to redeem points ■ Six-months of final point accumulation ■ Phase out HHonors program Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
  • 117. Rollout ● In July 2017: ○ One year to redeem points ■ Six-months of Dwell points ■ Final phase out HHonors program ● In January 2018: ○ Full implementation of Dwell program Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
  • 118. Expected Outcomes ● Improved customer database ● Differentiated customers ● Increase in customer loyalty ● Increased customer share ● Move to value-based pricing ● Leverage strategic alliances ● Movement away from third-party sources ● Decrease in long-term debt Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
  • 119. Metrics ● Enrollment Data ○ Carry over from HHonors ○ New Dwell members ○ Changes in tier population ○ Member retention rates ● Member Satisfaction Survey ● Time spent on app and with value-added programs ● Track spa revenue ● Metrics based on geographic location ● Third-party booking changes Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
  • 120. 5 Golden Questions ● As an enrolled Hilton Dwell Member… ○ How did you hear about Dwell? ○ What did you like about the Dwell? ○ What did you dislike about Dwell? ○ Will you be using the Dwell Program more often? ○ Would you like to opt-in for more loyalty member information? Minor Recommendations Major Prog. Recommendation Areas of Future Study Would You Invest?
  • 121. Areas of Future Study
  • 122. Areas of Future Study ● HRM program ○ Differentiate employees by value ○ Further utilize matrix structure and diversity ● High school and college curriculum ● Brand expansion opportunities Major Prog. Recommendation Areas of Future Study Would You Invest? Spiritual Implications
  • 123. Sources ● http://www.businessinsider.com/hilton-ceo-airbnb-competition-2015-10 ● http://smallbusiness.chron.com/consumer-segments-hotel-industry-13764.html ● http://www.lawcrossing.com/article/6576/kristin-campbell-hilton-worldwide/ ● http://hospitalitytechnology.edgl.com/news/Top-5-Trends-in-Hotels-for-201597582 ● http://www.businesswire.com/news/home/20150810005258/en/william-margaritis-joins-hilton-worldwide-executive-vice#.vhqkhbw9bp8 ● http://s1.q4cdn.com/246698567/files/annual-reports/2014/hilton_2014_ar.pdf ● http://www.hoteliermagazine.com/hilton-ceo-chris-nassetta-inducted-into-hospitality-industry-hall-of-honor/ ● http://www.diversityinc.com/christopher-nassetta/ ● http://www.washingtonpost.com/business/capitalbusiness/christopher-nassetta-the-man-who-turned-around-hilton/2014/07/03/43071478-fd5a-11e3-932c-0a55 b81f48ce_story.html ● http://www.inspirationalstories.com/quotes/t/stephen-bollenbach/ ● http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGuvnUDVX14E&refer=home ● http://www.woopidoo.com/business_quotes/authors/conrad-hilton/index.htm#QQKAJ5HiZr0QV9FJ.99 ● http://jobs.hiltonworldwide.com/en/universities/north-america/ ● http://www.glassdoor.com/Reviews/Hilton-Worldwide-Reviews-E330.htm ● http://www.cpp.edu/~career/employer/events/Fall_Career_Fair.shtml ● http://reviews.greatplacetowork.com/hilton-worldwide ● http://jobs.hiltonworldwide.com/why-choose-us/career-development/ ● http://www.wsj.com/articles/SB10001424053111903341404576484221378689018 ● http://www.hiltonworldwide.com/development/performance-advantage/revenue-management/ ● http://news.hiltongardeninn.com/index.cfm/newsroom/detail/28683 ● https://www.hiltontohome.com ● http://searchenginewatch.com/sew/news/2401430/hilton-uses-google-hotel-ads-to-entice-new-customers# ● http://www.hiltonworldwideglobalmediacenter.com/index.cfm/newsroom/detail/2117 ● https://www.thinkwithgoogle.com/case-studies/hilton-worldwide-drives-higher-roi-with-google-hotel-ads.html ● https://think.storage.googleapis.com/docs/hilton-worldwide-drives-higher-roi-with-google-hotel-ads_case-studies.pdf ● http://www3.hilton.com/en/offers/index.htm?cid=OM,HH,RedesignV1A4,BrandNav ● http://www.wsj.com/articles/airbnb-crimps-hotels-power-on-pricing-1443519181 ● http://www.wsj.com/articles/secrets-to-creating-a-better-hotel-room-1443634711 ● http://www.mmgyglobal.com/news/news-travelers-intend-to-go-on-more-vacations-in-2015/ ● https://s-media-cache-ak0.pinimg.com/736x/71/70/d2/7170d2e6e2b40013d71a224d81a8c3d4.jpg Would You Invest? Spiritual Implications Conclusion
  • 124. Sources ● http://www.mmgyglobal.com/news/infographic-why-do-people-travel/ ● http://www.wsj.com/articles/a-suite-spot-for-hotel-investors-1442914202 ● http://www.wsj.com/articles/hiltons-profit-slides-as-expenses-rise-1438167113 ● http://www.businesswire.com/news/home/20151001006091/en/Hilton-Worldwide-Rolls-Industry-Leading-GED-Assistance-Program#.Vg73ILSPD8E ● http://www.businesswire.com/news/home/20151001005872/en/Professionals-Generations-Nations-Agree-Face-to-Face-Meetings-Preferred#.Vg73lrSPD8E ● http://auction.hhonors.com ● http://news.hiltonworldwide.com/index.cfm/news/hilton-worldwide-unveils-industryleading-parental-leave-policies ● http://www.businesswire.com/news/home/20150901005477/en/Hilton-Uber-Partner-Create-Seamless-Travel-Experience#.Vg75g7SPD8E ● http://news.hiltonworldwide.com/index.cfm/news/hilton-introduces-digital-key-further-enhancing-industryleading-hhonors-app- ● http://www.jdpower.com/press-releases/2015-north-america-hotel-guest-satisfaction-index-study ● http://www.usatoday.com/story/travel/2015/02/13/conrad-hotels-hilton-book-rooms-instagram/23311511/ ● http://www.usatoday.com/story/travel/hotels/2014/07/28/hilton-smartphone-key-room-selection-digital-check-in/13284595/ ● https://www.washingtonpost.com/business/capitalbusiness/marriott-hilton-look-to-younger-travelers-for-new-ideas/2013/06/29/dfb51916-dcfc-11e2-bd83-e99e 43c336ed_story.html ● http://thumbnails.visually.netdna-cdn.com/top-5-trends-in-hospitality-for-2014-infographic_52a6495e72da7.jpg ● http://www.bighospitality.co.uk/var/plain_site/storage/images/media/images/digital-marketing/9014997-1-eng-GB/Digital-marketing.jpg ● http://www.hospitalitynet.org/photo/global/154000973/73012978.html ● http://www.nytimes.com/2013/01/14/business/media/hilton-site-prescribes-vacations-for-workers-ills.html?_r=1 ● http://news.hiltonworldwide.com/index.cfm/newsroom/detail/27192 ● http://hiltonworldwide.hilton.com/en/ww/ourbestrates/terms.jhtml ● http://www.businessinsider.com/how-hotels-should-adapt-to-growing-threat-airbnb-2015-7 ● http://www.pwc.com/us/en/asset-management/hospitality-leisure/publications/assets/pwc-hospitality-directions-us-august-2015.pdf ● http://www.tnooz.com/article/Online-travel-agents-and-Hotels-Are-they-friends-enemies-or-frenemies/ ● http://hotelnewsnow.com/article/13323/ota-evolution-demands-more-pricing-discipline ● http://blog.hebsdigital.com/a-call-to-arms-how-to-shift-market-share-from-the-otas-to-the-hotel-website/ ● http://skift.com/2015/07/22/hilton-gets-aggressive-telling-travelers-the-lowest-price-is-only-on-hilton-com/ ● http://press.fourseasons.com/news-releases/2014/four-seasons-launches-new-vacation-rental-website-showcasing-portfolio-of-exclusive-urban-and-resort-resi dences-around-the-world/ ● http://www.hotelnewsnow.com/Article/13949/Quit-fighting-and-join-Airbnb ● http://www.leadershipsynergies.com/docs/060131_article_HiltonSAMVelocity.pdf ● http://www.pointswithacrew.com/wp-content/uploads/2014/10/hilton-select-your-room.jpg Would You Invest? Spiritual Implications Conclusion