International Resort Spa Management Essay Example

International Resort Spa Management Essay Example International Resort Spa Management Essay International Resort Spa Management Essay 1.0 Introduction The Hilton hotel is a worldwide international hotel, the hotel chain markets in the luxury segment with over 3,800 resorts and hotels around the world. (HiltonHotelWorldwide, 2012) In 1925 Conrad N. Hilton opened the first Hilton hotel, following on from his guidance, commitment and motivation today, the Hilton Brand is one of the appreciated names today continuing on from 1927 Conrad had already expanded the Hilton brand to Waco, Dallas and Abilene at the time Texas finest hotels (HiltonHotelWorldwide, 2012). Around the 1940s Hilton began to spread to New York with the purchase of the Roosevelt and Plaza Hotel the success lead to Hilton to become one of the first coast to coast hotel groups in the United States. The successes of Conrad Hilton lead him to appear on the cover of Time magazine and he was also the first hotelier to achieve acknowledgment and in the 1960s appeared on Cover again (HiltonHotelWorldwide, 2012) after the death of Conrad the brand awareness of Hilton Hotels continued to grow and introduce a number of programs for its loyal customers, the program was called Hilton HHonors, this program allowed customers to gain member points and air miles points. In 1995 Hilton Hotel launched its first website giving the access to customer to make hotel bookings and access special offers. In today’s society the Hilton Hotel has become a global success expanding to countries around the world. This report will critically analyse how the Hilton uses its value chain to build up its customer loyalty. 2.0 Market Segmentation The process of Market Segmentation is defined by Kotler (2005) â€Å"Diving a market into distinct groups of buyers with different needs, characteristics or behaviour, who might require separate products or marketing mixes† It’s important that the Hilton divided their chosen segments into different groups of buyers, since the Hilton is a worldwide there will be a number of buyers who require unique wants and needs. The majority of the Hilton market is luxury segments meaning that they will require and except a high level of service. 2.1 Demographic Segmentation The Demographic market segment is based on the different factors in relation to family size, age, sex, family life cycle and income, this particular segment relates with the popular bases of customers wants and needs relating to personality and behaviour (Kotler, 2005) the Hilton hotel segment realise in the luxury segment offering customer luxury goods and services. 2.1.1 Income Segmentation The process of this segment divides groups into income segments in order to relate with products and service benefit the specific income group. The Hilton Hotel benefit from a range of hotel brands to benefit particular customer wants and needs. Hilton Hotels provide 10 different hotel brands such as Conrad Hotels and Resorts, Hilton Hotel and Resorts, Hilton Garden Inn and Hilton Grand Vacations; they range from Luxury to standard hospitality with the range of different brands and services, Hilton are able to offer customers to choose particular services which benefits their wants and needs. In able for Hilton to range their customer’s income to a particular hotel they will need to follow the socio-economic groups. 2.1.2 Socio-economic group The method allows to divided up markets in order to range in different status groups, this method will benefit a role on which product and service can be sold to which specific customer. The groups are spilt into 6 sections based on occupation then represented with the following letters A, B, C1, C2, D and E. The Socio-Economic group defined by Monk (1978) cited by (Wedel and Antonio, 1999) A- Upper Middle Class (High Professional) B- Middle Class (Middle Professional) C1-Lower Middle Class (Supervisor) C2-Skilled Working Class- (Junior) D- Semiskilled and Unskilled Working Class E-Person at the lowest level of subsistence- (Pensioner, Widows) The Hilton currently attracts customer from status group A, B and C1 the Hilton offers more of a range of high quality products and services to customers with a high income and are willing to spend money on luxury goods. The Hilton hotel brand doesn’t attract and market the C2, D and E status groups a much higher income is need to stay in Hilton Hotels and to get the full experience of the products and services. 3.0 Customer Loyalty Loyalty schemes as known as Loyalty programs are defined as a way for rewarding customer behaviour or customer loyalty and a way to continue customer loyalty is encouraging repeat business. (Lawson-Body Limayem, 2004) There are a number of methods used to describe loyalty schemes including reward programmes, loyalty cards and point cards. It’s vital that hospitality firms keep the balance between their loyal and repeated customers. In order to keep a record of loyal customers many firms introduce loyalty schemes. Loyalty schemes are issued to customers based as a program to seek the relationship between the buyer and the brand. Lawson-Body Limayem (2004) evaluate customer loyalty â€Å"The development of loyalty involves building and sustaining a relationship with a customer, which leads to the repeated purchase of products and services over a given period of time† 3.1 Hilton HHonors Hilton HHonors is a loyalty scheme that offers customers exclusive membership benefits and services. Hilton HHonors allows customers to receive hotel points and airline points; customers will be able to stay in over 3,750 hotels in 84 different countries also benefits customers to receive hotel points from the other Hilton brands (HHonors1Hilton, 2012).Hilton HHonors offers their members more exclusive products and services than regular customer service benefits. Hilton HHonors benefits customers to access exclusive services in order for customers to have a pleasant and efficient stay Hilton HHonors allows customers to have the services they may require without the hassle of communicating with a member of staff. Hilton HHonors have the benefits of Expedited Check-In. This service benefits customers efficient checking by providing their HHonors account number this allows customers to have their credit card and room preferences on file allowing customers to check in quicker than previo us measures(HHonors1Hilton, 2012). Therefore the benefits for exclusive services can change the behaviour of the customer knowing the service they are receiving is benefiting their wants and needs its more likely to value from repeat business. 3.1.1 Membership Levels The loyalty from Hilton HHonors can lead to membership levels is particularly values customer benefits who regularly stay with Hilton more than a number of times, increases the chance of a higher membership status. This service is known as an Earn Elite, these statuses increase varying the number of stays, point’s value to the customer, a reasonable number of points can value to higher membership levels with much higher service opportunities including free wireless, room upgrades and health club privileges (HHonors1.Hilton, 2012) Membership levels range from blue being the lowest and diamond being the highest. The blue membership offers customers express late check-out, expedited check-in and HHonors Guest Manager, which is a service that allows customers to make special requirements during their stay. This blue membership benefits customers who want extra requirements based on their wants and needs. The diamond membership is focuses on customers who are willing to spend more for higher quality of services and products such as extra rewards points, complimentary high-speed internet access and executive lounge access among other Hilton brands (HHonors1.Hilton, 2012) 4.0 Hilton Hotel’s Policies and Strategies Hospitality firms such as the Hilton aim to improve their communication with customers at the highest possible standard in order to keep their returning customers and making sure that they are able to communicate with the message Hilton is offering. By following vital policies and strategies the Hilton Hotel can deliver to their customers offering outstanding products, services and experiences to customers. 4.1 Staff Training The Hilton Hotel have establish a range employment training programs to ensure the best and high quality customer service enabling that staff will offer to their customers. The Hilton Hotel is a luxury firm and wants to give their customers a luxury experience when staying at the Hilton, it’s important that hospitality firms need the right customer expectations to exceed the highest level of customer service. Esprit training is an employment development program which is proven to build up better and satisfied training for Hilton employees (HumanResourceManagementInternationalDigest,2004). The Esprit training allows employees to evaluate their experience and effectiveness of their training, then their employee is process on to an separate training record with includes assessments, records their technical and behavioural skills, once their 12 weeks is up employees will process onto their Esprit workshop which values the understanding of the Hilton core morals (HumanResourceManag ementInternationalDigest,2004).. Once their workshop is successfully finished, the employees become a member of the Esprit Club. Esprit shows that employees can successfully become more motivated and higher employee fulfilment benefiting to gain higher quality of customers service rather than benefiting from regularly employment training, leading to higher revenue and profits within the firm. 4.2 Hilton Hotel Global Policies The Hilton hotel follows understandable policies in order to improve the communication and procedures of customer satisfaction. The Hilton hotel provides a worldwide global policy in order to protect in improve their importance and safety of personal information. The Hilton hotel uses a wide source of communication techniques, 4.2.1 Internet sources The internet is one of the well-known methods for communicating with customers, especially regarding personal information. The use of online resources is used for collecting information from online bookings, surveys and collecting personal data. The Hilton use electronic delivery to send emails, promoting special offers and newsletters its aims to improve the use of information that can be communicated to customer efficiently and rapidly. Online methods are also used for delivering their products and services they offer online for customers to experience before they visit one of the Hilton Hotels. The Hilton website provides a variety of information that customers wish to access, therefore allows customers to gathering particular parts of information required for their wants and needs. The product and service offered on their Hilton may have influence customers to even attempt booking. 5.0 Hilton Hotel’s Value Chain The value chain benefits for the customers, employees, owners and shareholders (Duboff Huckestein,1999). Customers at the Hilton are very important. Since customer priorities and needs are forever changing customer satisfaction should be consider and observed at all time, Hilton ensure that feedback is provided at all time. This method allows monitoring and processing the improvements to requiring that customer’ expectations are met in order to service high quality service and delivering the highest possible standard for service. The Hilton should benefit from giving customers more importance than they anticipated, therefore increasing the benefits of loyalty customers and repeat business. Consider valuing new customers more the first time can increase the chances of word of mouth and repeat business as new customers mainly don’t receive high level of service the first time. With the encouragement of motivation and value to employees, employees are more likely to benef it to give customers a much higher level of customer service in order to increase the value. The value of the owners and shareholder value the Hilton by creating higher revenue and enhancing the property and value shares towards Hilton. 6.0 Conclusion In conclusion, the Hilton Hotel is able to provide and serve customers with the highest possible quality of service and the Hilton has shown that by being the number hospitality firm in the world. Customer loyalty is the number deliverance Hilton is providing to customers. HHonors enables to allow customers to stay at Hilton and ensuring that all requirements are met at its highest possible standard at all time. The Hilton is in a position where they are currently marketing to the Luxury market, as the luxury segment is known to be able to spend the considerable amount of expenditure to receive the highest amount of exceptional quality service, although offering a more standard quality of service however to enabling to serve high quality service. The Hilton to should offer value for money rooms for those customers who are looking for a benefit of high quality service at a lower value, therefore the Hilton will be targeting customers with all different requirements.