Hilton Hotels Location strategy Layout strategy Supply chain management Quality management Hospitality business

1. Hilton Hotels’ operations management
presented by:
Margaux- Jade
26.11.13

2. Hilton Hotel
• Established in 1919 by Conrad N. Hilton
• Started with 40 rooms
• 10 brands with 4000 hotels in 91 countries
• Leader in hospitality industry
• Operating under 24 time zones
• “Fill the earth with light and warmth of
hospitality”

3. DESIGN
• Luxury hotel standard
• Luxurious and confortable-like-home
decoration
• Package of Sweet DreamsA® as characteristic

4. QUALITY MANAGEMENT
• ISO 9001 and ISO 14001
• Customer services concerns
• LightStay system applying

5. PROCESS DESIGN
• Create Hhnors Points Program
• Booking based on category and customer’s
interest
• Organize online recruitment
• Support with online training course

6. LOCATION STRATEGY
• Central of major cities
• Airport and vacation destinations nearby
• Target to business and leisure purpose
travelers

7. LAYOUT STRATEGY
• Including lobby, guest rooms and convention
• Lobby:
Setting space for information checking
Laptop plug in set up with WiFi
Café and tea served areas

8. HUMAN RESOURCE
• The Hilton WorldWide University
• High skill improvement
• Ability to work individually required
• Create diversified workplace

9. SUPPLY CHAIN MANAGEMENT
• Devoted for long-term relationship with
suppliers
• Create Supplier Diversity Program
• Provide education course for suppliers

10. INVENTORY MANAGEMENT
• Right product-right time- right price
• Right place – right temperature

11. SCHEDULING
• Add 10,000+ hotel rooms
• Offer 50,000+ jobs for 4 years (2008-2011)
• Establish long lasting partnership with supplier

12. MAINTENANCE
• Sustainability
• Reducing waste and carbon
• Decrease using of electric, water, etc.

13. Operations strategy
RESPONSE STRATEGY – ORDER WINNER IN FLEXIBILITY & QUALITY
Suppliers’ goal They are able to adapt themselves, their productions and deliveries to what Hilton’s need and
order. It is a daily communication the key tool to quickly respond to requirements. In such a way,
stock outs are minimized.
Process characteristics HHonors invest in excess capacity and flexible processes. That is why they want to forecast
tomorrow’s trends: they already invest in lobbies’ restructuring and staffing.
Moreover, these investments do not cost directly to Hilton but to hotels’ owners (due to franchises’
management systems).
Inventory Management As said before, the brand uses two ways of stock, to ensure supply.
Revenue management It is the process of making forecasting and computerizing the gross margin profit. In detail, yield
management seems to be an identification of what the demand trends are. Hilton has a team with
talents in forecast validation and demand generation.
All of team members are trained carefully in selling rooms and dealing with guest at the optimal
rate. This yiels also includes guests’ history and thus loyalty. We also can notice that this revenue
policy is possible because of the HHonors’ group’s structure. The more brands the company has,
the likeliest it is to match offer & demand, optimize rates and catch tourists or businessmen.

14. Performance in services’ design
http://www.youtube.com/watch?feature=player
_embedded&v=5XpnX50B4Ao
• Lobby restructuring
• Technology use

16. Performance in quality control
Being a synonym of “Hotels” & “Vacations”
Quality control passes through a weak employees’ turnover
That is why, HHonors developed high HR strategy/job design
Rewards Loyal Program, named HHonors Points.
“Hilton Worldwide,
• Best Company for Hourly Workers, Working Mother Magazine
• Ranked First in the Top 50 Happiest Companies, Career Bliss
• Top 100 Companies to Work For, Savoy Magazine
• International Organization for Standardizations (ISO) 9001 Certification for Quality Management Systems”

17. Recommendations to maintain this reputation
• Locations
• Staffing
• Services’ design
• Quality control
• Maintenance

18. THANKS