Hilton Hotel Differentiation Essay Example for Free

Hilton Hotel Differentiation EssayHilton Hotels is unitary of the biggest players in the US lodging industry. It contributes to about 9% of the union rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. populate industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as substantially as franchising model with the real estate owners. One of the key features of lodging industry is low shimmy equals for customers. There is very little margin to differentiate from the major competitors in the industry which allow Marriott international, IHG, Accor etc. Key success factor in lodging market is quality of service wizard provides. Hilton Hotels are highly focused about their service level by providing dainty care to the customers.Traditionally, normalisation of service delivery operations has been one of the very difficult tasks in the industry as one has to operate in dif ferent geographies. To resolve this issue and to represent consistent service delivery crossways different hotels they installed an integrated technology infrastructure called OnQ. CRM system built over OnQ helped the firm to provide excellent service to the customers and provide competitive advantage over its competitors. OnQ facilitated the firms CRM (Customer Really Matters) gap at each customer touch point. Reason for successful executing of CRM* The major organizational factor that facilitated the CRM initiative is that the firm had the selfsame(prenominal) technology platform and distribution footprint throughout the brand. * Sharing the risk with the hotel owners and avoiding evidence technology charges encouraged the owners to adopt the CRM system. * Moreover its focus on delivering efficient service to customers likewise placed the foundation among the people for the acceptance of CRM initiative.Issue faced in CRM ImplementationThe major problem during the implement ation of CRM initiative was the delivery of consistent services across each brand event after the CRM systems were in place. This was mainly due to the large number of diversified hotels in the chain across the globeIssues determined by CRM package* With the help of CRM along with recognition of the customer providing personal services was also mathematical. This helps in tailoring the experience according to customer needs and creating a long term relationship. For eg. Rooms shadower be pre-assigned and prepared according to customer preferences. * It was also possible to classify customers along different levels (Gold, rhombus etc.) and providing them with differential services. Tiered system allowed the hotels to prioritize pre-assignment and service delivery by identifying most valuable guests. This results in improving efficiency of service by focusing more on most valuable customers.* To maintain brand name uniform services are to be maintained across the hotel chain. With centralized OnQ infrastructure, it became possible for Hilton Hotels to replicate their services across the various hotels across the globe. * The CRM systems helped the company in differentiating its service as tumesce as optimizing close to of the activities which lead to the reduction in operational costs. For eg. OnQ Reservation used data from the CRM, allows the operator to access callers personal dossier and update their preferences. This helped in reducing the call time as well as promoted the cross selling.Another example is having information prior to arrival of customer helped the firm in maintaining efficiencies curiously during later in the evenings when less staff is easy. * It also helped in service recovery. If a client had some problem during the last visit, identifying the problem helped in responding better next time. * The SALT (Satisfaction and Loyalty Tracking) survey helped in getting essential feedback from the customers. * Monitoring of the various bran ds across the chain for quality assurance also became easy. It also enabled the firm to open new hotels at a faster pace and consistently deliver the same service.Summary of AnalysisCRM system implementation at Hilton hotels provided with various benefits in term of improved services, cost reduction improved efficiency. Maintenance cost of CRM system is low as compared to the overall revenue of the firm. currently Hilton Hostels are able to leverage CRM system better than competitors. They still need to search for further options available in improving service using CRM.