Hilton reign as a leader within the hospitality industry is contributed to its four key success factors which includes providing a level of customer service that enhances the customer experience, competitive marketing, effective cost management and brand differentiation. One of the ways that Hilton has become so successful is due its outstanding customer service. It provides its guests with a hotel experience that is unrivaled. It is known for leaving a lasting impression by the level of service it provides.
In order to deliver the superior service, which is boasted about throughout the world, Hilton enrolls its staff In an extensive training program to ensure they have the knowledge and skills needed to efficiently perform heir Job functions. Having a knowledgeable staff that is courteous coupled with effective problem resolution skills helps to provide the award winning service that is attached to the Hilton brand. Another critical success factor for Hilton Is Its marketing and advertising strategy.
Due to the wide variety of brands It appeals to different types of consumers and the practice of tailoring its advertising to attract guests based on the brand is deemed successful. The offering of different products for leisure travelers and business execs allows Hilton to personalize services based n the type of travelers while providing a wide range of prices and discounts to accommodate the varying budgets of each consumer. Thirdly, Hilton has proven to have a successful cost management plan. Depending on the season and location Hilton offers a variations of prices.
For example, at some of the locations closer to attractions and beaches you will see an Increase of prices during Its peak seasons of spring and summer. Furthermore, Hilltop’s brand dedication to be tailored to “fit every lifestyle and occasion” (Vision, Mission and Values, 2013) it offers luxury amenities to affordable comforts for an additional cost. To acquire repeat business the Hilton Honors guest loyalty program was established to offer lower rates and rewards to past guests. Lastly, the brand differentiation allows them to standout from its competitors.
In an article by the Brad Foss associated press states that brand distinction is important for those in the hospitality industry due to fierce price competition (2004). Offering hotels In mid to upscale categories allows Hilton to fit a variety of consumers’ needs and Interests. Each brand has elements that extinguishes them from one another and their competitors. For example, the Hilton Grand Vacation is a club program is geared towards the avid vacationer with suites that has a home away from home appeal.
In order to help Hilton Worldwide to continually achieve Its critical success factors the use a balanced scorecard Is recommended. For performance evaluation purposes the balanced scorecard will be more useful based on the Hilton being part of the hospitality industry because it will assist Hilton to improve its business performance, reduce expenses, and provide insight on its current performance as it relates to its organizational goals, as well as have a positive increase in its organizational climate and improved employee and customer relations and loyalty.
Thus, the balanced scorecard can serve as an effective tool that creates organizational action program, goals and performance measurements from an organization’s missions and strategy (Doran, Haddam ; Chow, 2002). The hospitality industry is saturated with companies that offer guests a comfy bed but the additional amenities and services along with special promotions ND discounts attracts new guests and keeps past guests returning.
Due to the hospitality industry being highly competitive the use of the balance scorecard will provide Hilton with a way to optimize performance, identify and resolve problems and improve its critical success factors of customer service, competitive marketing, effective cost management and product differentiations within the industry. Due to the balanced scorecards ability to show a correlation between the organizations key performance indicators and the four different perspectives is advantageous to those thin the hospitality industry.