Case Study Analysis of Hilton-Sydney

This case study analysis provides an overview of Hilton-Sydney, its position in the market, SWOT analysis, and revenue management strategies. It discusses the organization's strengths, weaknesses, opportunities, and threats, as well as two revenue management strategies that could be used to overcome weaknesses or threats. The study also explores the use of online travel agents, global distribution systems, and offline channels for bookings.

Running Head: CASE STUDY ANALYSIS OF HILTON-SYDNEY
Case study analysis of Hilton-Sydney
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Author’s Note

1CASE STUDY ANALYSIS OF HILTON-SYDNEY
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
SWOT analysis of the organization.............................................................................................4
Two Revenue Management strategies that could be used, by the business to overcome one of
the highlighted threats or weaknesses..........................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................9
Bibliography..................................................................................................................................10

2CASE STUDY ANALYSIS OF HILTON-SYDNEY
Introduction
1. A brief overview of the organization and its position in the market.
According to the official website of the Hilton Sydney, it is addressed as a five-star hotel.
The hospitality firm is located in Street, Sydney, 2000, Australia. The basic amenities provided
by the hospitality firm are Paid Wi-Fi, Car parking, Accessible, Swimming, pool, Spa, Hot tub.
Hilton Sydney is located in the heart of the city’s shopping, entertainment, and business district.
The hospitality firm makes use of modern architecture to capture the interest of the consumers.
They even avail the feature to Upgrade to an executive room or suite for access to the Executive
Lounge.
Currently, the hospitality service provides business firm is in the growth phase. There are
no other rival firms that have the potential to dominate the business undertaking of the
hospitality firm. At present, the services provided by the hospitality firm is very much desirable
by the consumers. The business firm has a highest global market share of about ~5%. Within the
region of the US boundary, it has ~9% share. Within the region of the Middle East and Africa, it
has a small proportion of the market share comprising of about ~3%. 1% in Europe, and ~1% in
the Asia Pacific region.

3CASE STUDY ANALYSIS OF HILTON-SYDNEY
Source: (Finance.yahoo.com, 2019)
Leading dominator within the region of the US boundary:
Within the region of the U.S market, Hilton-Sydney is among the top 10 companies in the U.S.
This includes hotel companies that represent ~58% of the market share by the number of rooms.
Hilton (HLT) and Marriott (MAR) have the highest market share of ~10% each. They’re
followed by Wyndham’s (WYN) ~9%, Choice Hotel’s (or CHH) and International Hotels
Group’s (or IHT) ~8% each, and Best Western Company and Starwood’s (HOT) ~3% each. G6
Hospitality, Hyatt (H), and LQ Management LLC each have a ~2% market share. Hilton’s stock
is also part of more than 20 exchange-traded funds (or ETFs). The Power Shares Dynamic
Leisure and Entertainment Portfolio (or PEJ) is an ETF with ~85% invested in the Hotels and
Lodging sector. It holds ~5% in Hilton shares (Finance.yahoo.com, 2019).
Discussion
The name of the current two competitors are as follows:
1- Marriott
2- Hyatt

4CASE STUDY ANALYSIS OF HILTON-SYDNEY
Marriott is an American based multi-national hospitality business firm. It has its
headquarter in Washington D.C. It comprises of about 65,000 properties which are located in the
127 different regions of the country. The property comprises of about 1.2 million rooms. The
founder is addressed as the John-Willard Marriott; it was founded in the era of 1927. It was
inaugurated when he started a root beer stand in the region of the Washington D.C. This business
firm is focused on the introduction of innovation to capture the interest of the customers. The
various marketing research conducted proves that these firm is among the top competitors.
The hospitality firm Hyatt was inaugurated in the era of 1956. It was founded by Jay-
Pritzker. Before it was a hospitality business firm, it was known as Hyatt house motel which was
nearby to Los Angeles. During the first start phase of the hospitality firm, it was recognized as
the Global Hyatt Corporation, which later came to be known as the Hyatt Hotels Corporation.
However, the hospitality firm Hyatt manages a portfolio of about 14 premier brands located
globally. It employs about 36,000 employees. This business firm has a total number of 700
properties which is situated in 50 different countries (Marketing91, 2019).
A SWOT analysis of the organisation.
A SWOT analysis of the hospitality firm Hilton Sydney is as follows:
- Higher brand equity and brand
preference in the eye of the
consumers.
- The firm can penetrate the market
irrespective of the number of rival
firms.

5CASE STUDY ANALYSIS OF HILTON-SYDNEY
STRENGTH
- It has a good employee retention.
- It has penetrated over 78 countries,
comprising of about 540 hotels in
total.
- It has been a business firm for a period
of about 93 years.
- They undertake innovation in the
business undertaking by making use
of the IT service for taking care of
customer services.
WEAKNESS
- The business firm has a limited market
share irrespective of successfully
penetrating within the significant
countries in comparison to the rival
firms.
- Due to frequent changes in the rules
and regulation of the local government
structure the firm has been affected.
- Due to frequent changes in the
economy in terms of economic
depression and recession. The firm has
been facing difficulties continuously.

6CASE STUDY ANALYSIS OF HILTON-SYDNEY
OPPORTUNITIES
- The firm has the potential to grow
further and generate new prospects
and leads.
- Because of the presence of the huge
brand equity of the business firm. The
firm has the potential to penetrate
successfully in the other rival market.
- Since the firm is capable of
undertaking IT implications in the
business preceding, much more
innovation within the business process
can be introduced by making use of
the digitization and better use of
modern technologies.
THREATS
- The growth of the hospitality firm is
stagnated.
- The major competition takes place in
terms of the price factor. There also
exists a threat to terrorism.
- The occurrence of political and
economic turbulence in most of the
region of the countries.

7CASE STUDY ANALYSIS OF HILTON-SYDNEY
- Adverse business changes that are
taking place within the
macroeconomic climate.
Two Revenue Management strategies that could be used, by the business to overcome one
of the highlighted threats or weaknesses.
Revenue Management Strategy is as follows:
 Rack Rate- It is the full price of the hospitality service acquired by an individual prior to any
discounts, or promotions. This is being carried out to secure the full price that will be paid by
the current guests.
 Group Rate- This is a discount price strategy, which is served to a particular party who might
be on the motive to book hospitality services for a longer time period and some services.
 Commercial / Corporate Rate- This pricing strategy is for the individual business individual
who is loyal towards the hospitality firm, and the hospitality firm believes that such business
will be generated again from the business officials.
Apart from the above, there is much more revenue management strategy such as the package
rate, reward rate, Discount pricing strategy, Value-added pricing strategy, Middle market pricing
strategy, and Competitive pricing strategy (Nieves et al., 2015).
Conclusion
The business firm can make use of online travel agents (OTAs), Global distribution
systems, and Offline channels.

8CASE STUDY ANALYSIS OF HILTON-SYDNEY
OTAs are used by millions of tourists to book accommodation. They’re a popular way for
travellers to see many hotel options in the one place, make comparisons, and find the best deals.
Many travel agents and travel companies rely on GDSs for bookings, and for hotels
connecting to GDS can increase their distribution. A GDS occurs somewhere among the online
and offline channel.
The reach these systems provide is expansive, and they can target travellers you have no
way of reaching on your own. Offline channels should not be forgotten. Bookings from this
source might include travellers calling your hotel, people walking in, tour agents and operators,
event coordinators direct email etc.
References
Finance.yahoo.com. (2019). Yahoo is now part of Oath. Retrieved from
https://finance.yahoo.com/news/hilton-market-share-domestic-international-172011000.html
Hiltonsydney.com.au. (2019). Hilton Sydney | Rooms in CBD | Sydney. Retrieved from
https://www.hiltonsydney.com.au/
Ivanova, M., & Ivanov, S. (2015). Affiliation to hotel chains: Hotels' perspective. Tourism
Management Perspectives, 16, 148-162.
Marketing91. (2019). Top 14 Hilton Competitors - Hilton Competitor analysis. Retrieved from
https://www.marketing91.com/top-hilton-competitors-across-the-world/
Mattsson, J., & Orfila‐Sintes, F. (2014). Hotel innovation and its effect on business performance.
International Journal of Tourism Research, 16(4), 388-398.

9CASE STUDY ANALYSIS OF HILTON-SYDNEY
Melián-González, S., & Bulchand-Gidumal, J. (2016). A model that connects information
technology and hotel performance. Tourism Management, 53, 30-37.
Nieves, J., & Segarra-Ciprés, M. (2015). Management innovation in the hotel industry. Tourism
Management, 46, 51-58.
Zaitseva, N. A., Semenova, L. V., Larionova, A. A., Yumatov, K. V., & Hamnaeva, N. I. (2016).
The role of human resource capacity to ensure the competitiveness of the cross-border
cooperation projects in the tourism and hospitality industry. International Electronic
Journal of Mathematics Education, 11(7), 1961-1970.
Bibliography
Ivanova, M., & Ivanov, S. (2015). Affiliation to hotel chains: Hotels' perspective. Tourism
Management Perspectives, 16, 148-162.
Mattsson, J., & Orfila‐Sintes, F. (2014). Hotel innovation and its effect on business performance.
International Journal of Tourism Research, 16(4), 388-398.
Melián-González, S., & Bulchand-Gidumal, J. (2016). A model that connects information
technology and hotel performance. Tourism Management, 53, 30-37.
Zaitseva, N. A., Semenova, L. V., Larionova, A. A., Yumatov, K. V., & Hamnaeva, N. I. (2016).
The role of human resource capacity to ensure the competitiveness of the cross-border
cooperation projects in the tourism and hospitality industry. International Electronic
Journal of Mathematics Education, 11(7), 1961-1970.

10CASE STUDY ANALYSIS OF HILTON-SYDNEY