Importance of Crisis Management in Hospitality Sector - Desklib

This report discusses the importance of crisis management in the hospitality sector, with a focus on Hilton Hotel. It includes a literature review, methodology, and data analysis. The report highlights the crisis management strategies used by Hilton Hotel and their effectiveness in managing uncertainty. The report also discusses the importance of crisis management for the growth of the business.

Project report
(The importance of managing crisis in
the hospitality sector)
1

ABSTRACT
The main purpose to conduct the investigation is to gain knowledge on the subject crisis
management. This investigation helps the researcher to attain their objective that is importance of
crisis management practices in attating the growth as well as to gain success. To conduct
investigation quantitative research method is used which helps in gathering and analysing
numerical data and then maintain the validity of the overall investigation. The data for the
current investigation is acquired with the help of primary source and in that instrument which
will be used is questionnaire.
2

Table of Contents
ABSTRACT.....................................................................................................................................2
ACKNOWLEDGEMENT...............................................................................................................5
CHAPTER ONE: INTRODUCTION..............................................................................................6
1.1 Research Rationale................................................................................................................6
1.2 Research Questions ...............................................................................................................6
1.3 Research Aims & Objective..................................................................................................6
1.4 Significance of the Research.................................................................................................7
CHAPTER TWO: LITERATURE REVIEW..................................................................................8
2.1 Introduction to Literature Review..........................................................................................8
What is the concept of crisis management in relation to UK hospitality sector?........................8
What are the crisis management strategies used in Hilton Hotel for managing the crisis?.........8
What is the importance of crisis management for the growth of their business?........................8
2.3 Conclusion of Literature Review..........................................................................................9
CHAPTER THREE: METHODOLOGY......................................................................................10
3.1 Research Approach..............................................................................................................10
3.2 Research Methods and Methodologies................................................................................10
3.3 Research Instrument/Tools..................................................................................................10
3.4 Sampling..............................................................................................................................10
3.4.1 Identifying Population and Research Site...............................................................11
3.4.2 Sampling Strategy...................................................................................................11
3.5 Ethical Implications.............................................................................................................11
CHAPTER FOUR: FINDINGS (DATA ANALYSIS AND PRESENTATION).........................12
Frequency distribution table .....................................................................................................12
Data presentation ......................................................................................................................12
CHAPTER FIVE: DISCUSSION (DATA INTERPRETATION) ...............................................17
CHAPTER SIX: CONCLUSION, RECOMMENDATIONS AND IMPLICATIONS FOR
FURTHER RESEARCH ..............................................................................................................19
Conclusion ................................................................................................................................19
3

Recommendation.......................................................................................................................19
Further implication for research................................................................................................19
REFERENCES .............................................................................................................................20
APPENDICES ..............................................................................................................................22
Questionnaire.............................................................................................................................22
4

ACKNOWLEDGEMENT
Firstly, I would like to express my gratitude to my professor for providing me such a
wonderful opportunity to carry out investigation on importance of crisis management. I sincerely
thank them to provide all the necessary guidance so that research can be conduct in sound full
manner.
Secondly, I would like to thanks my parents and friends to motivate me for completing the
research as per the given time duration.
5

CHAPTER ONE: INTRODUCTION
Crisis management is a business application which is developed by the organisation as per
their comfort so that they can deal with the uncertainty. The hospitality industry is the one where
the negative event or sudden changes occurs very frequently and to deal with this they need to
develop the strategy of crisis management. The unpredictable or unforeseen event damage the
business in large manner and act as a biggest threat for the company (Le and Phi, 2021). It is
very important for the organisation to adopt the strategy of crisis management in their business
so that they can grow and gain success from their rivalry. At the time of Covid 19 many
hospitality industry has acquired crisis management strategy in order to mitigate the challenges
which were faced. Various hotel shifts their focus to design those strategies which will helps
them in effective manner (Hu and et. al, 2021). Various strategies are being designed by the hotel
so that they can gain benefit and can run their operation in normal manner. Crisis management
helps the company to analyses the uncertainty in earlier manner so that earlier warning practices
can be adopted to deal with in efficient manner. Thus, for every hotel it is vital to acquire the
practice of crisis management in their business model.
1.1 Research Rationale
The major rational for the above investigation is to carry out the investigation in deeper
manner about the topic crisis management. This research will help in gaining more knowledge so
that research can be done accurate manner. the current investigation also facilities in attaining
two objective which are personal and professional (Ashton, 2018). With the respect to the
personal the current investigation will help in identifying the various method and tool which are
used to complete the research in scientific way. Apart from this, with the respect to the
professional objective this investigation helps in understanding the crisis management strategies
which can be used by the company to manage their crisis in accurate manner.
1.2 Research Questions
 What is the concept of crisis management in relation to UK hospitality sector?
 What are the crisis management strategies used in Hilton Hotel for managing the crisis?
 What is the importance of crisis management for the growth of their business?
1.3 Research Aims & Objective
Research Aim
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The aim of this project is to analyse how important for an organisation to manage crisis for their
growth in context of UK hospitality sector. “A study on Hilton Hotel”
Research Objectives
 To understand the concept of crisis management in relation to UK hospitality sector.
 To identify crisis management strategies used in Hilton Hotel for managing crisis.
 To analyse importance of crisis management for the growth of their business.
1.4 Significance of the Research
The major significance of the above investigation is that it will be important for various
stakeholders such as organisation, researcher and manger. In respect to the, researcher the main
importance is that they will get the basic understanding about the topic and this will assist in
carrying out future research in valuable manner (González-Torres, Rodríguez-Sánchez and
Pelechano-Barahona, 2021). with respect to the manger they would get to know about the
various crisis management strategies which they can use in their company. In last, for
organisation this research is beneficially as they will get to know the importance of effective
crisis management practices and how this could help them to mitigate damages.
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CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction to Literature Review
Literature review contain the past data about the topic which is gathered by various scholar
when they are conducting the investigation on the same topic. In this section secondary
information about the topic is used so that research question can be addressed in significant
manner.
What is the concept of crisis management in relation to UK hospitality sector?
According to Tara and Jong (2020), the term crisis management is explained as the
management which is used to develop the organization deals with sudden and unexpected
situations. It is known to help in making the strategies that aids in future planning in order to deal
with the future crisis (Nizamidou and Vouzas, 2020). Also, in context of the hospitality industry
crisis management is that type of management that assists in order to handle the overall situation
of crisis within the industry. As in the hospitality sector crisis can take place from various events
that is the natural disasters, environment, employees related or customers related too.
What are the crisis management strategies used in Hilton Hotel for managing the crisis?
As stated by the Adiyukh, Muzaffer and George Jong (2020), crises can take place at any
time as the hospitality industry has to face the various issues during the time of Covid-19. That is
why there are various strategies used by the chosen hotel which allows the hotel to manage the
issues related to the crisis and many other events. Such strategies are considered main for the
company and its goals with the main aim to keep the employees motivated to deal with the crisis.
Such strategies are used with the aim to estimate the level of risk so that the teams and groups
will be formed to handle the crisis and issues. They are also focused to pre-plan about the crisis
that may take place in the future. As the chosen hotel has made use of crisis committee which
main work is to manage the short term impacts during a main event. Also, it has made use of
doing proper communication with the employees so that the best decision can be taken in
relation to the crisis management (Domala and et.al.,2020).
What is the importance of crisis management for the growth of their business?
In the view of SergioLuna, Michael and Pennock Jong (2020), crisis management
comprises of various importance in relation to the chosen hotel which aids in growth to the
business performance. Crisis management is known to help in order to analyse and the prevent
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damage in the hotel. That can be done by creating the strategies which will in facing the adverse
impact of the crisis. Along with it, crisis management also benefits to regulate the difficulties and
matters for future which is aids in future growth of the hotel in the market (Narjabadifam and
et.al., 2021). Due to which the chosen company will be able to attain the goals with success.
Further, it will help the company and its management to control the overall system causes which
is by crisis and solve it with effectiveness. Due to the pandemic, the whole world got affected
and in which the crisis management can be implemented in the operations of the company so that
the adverse impact can be revolved.
2.3 Conclusion of Literature Review
From the above literature review it is concluded that crisis management is considered as an
important concept that helps to manage and control the sudden issues within the organizations by
providing strategic solutions.
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CHAPTER THREE: METHODOLOGY
3.1 Research Approach
Research approach can be defined as structured plan that helps the researcher in gaining
detailed appropriate knowledge about the selected research topic. Deductive and inductive are
two different types of research approaches that helps in completing the research in an effective
manner (Basias and Pollalis, 2018). In the current research, the researcher has used deductive
approach as it is the most effective approach. The reason for selecting this type of approach in
the current research is that it helps in gathering and analysing information in a detailed manner
so that aims and objectives can be retained properly.
3.2 Research Methods and Methodologies
Research methodology can be defined as an important strategy that helps in achieving
relevant and reliable information in an systematic manner. The research methodology is
considered as the most necessary section that helps in achieving the research aims ad objectives
in a more effective and successful manner (Rinjit, 2020). There are several methods that helps in
deriving quantitative data like deductive along with quantitative and survey approach that results
in carrying out the research in a more detailed manner.
3.3 Research Instrument/Tools
Data collection is considered as the method of the research that helps in gathering and
interpreting data in an efficient manner. The researcher has used both the data collection methods
such as primary and secondary data in the current conducted research for collecting data from
different sources on the selected research study or topic (Younus and Zaidan, 2022). For carrying
out the investigation in an effective the researcher has selected questionnaire so that accurate and
fair information can be collected from the selected respondents from the large set of data.
3.4 Sampling
Sampling can be defined as an approach by which the researcher has gained information
from the human participants which often give true and right data about the selected topic. The
investigator has selected probability sampling method to conduct the present investigation. The
sample size selected by the researcher is 20 employees of Hilton hotel.
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3.4.1 Identifying Population and Research Site
The chosen population is chosen from the hotel of UK and the sample size selected is 20
employees of Hilton.
3.4.2 Sampling Strategy
The selected sampling strategy in the present investigation is probability sampling
method and under this random sampling method is used for interpreting fair and correct data
(Fryer, Donthu and Gustafsson, 2020).
3.5 Ethical Implications
While carrying out the current investigation, ethics play a very important role in
enhancing the variability and reliability of the research. It is the responsibility of the researcher
in check that while conducting this research no person sentiments are hurt and harmed and the
research is carried in a successful manner (Niknejad, Hussin and Amiri, 2019).
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CHAPTER FOUR: FINDINGS (DATA ANALYSIS AND PRESENTATION)
Frequency distribution table
Q1) Do you think that you possess the basic understanding about the
concept of crisis management?
Frequency
a) Yes 15
b) No 2
c) Maybe 3
Q2) As per your perspective, it is very important for the Hilton hotel to
adopt the strategy of crisis management within their organisation?
Frequency
a) Yes 16
b) No 3
c) Maybe 1
Q3) As per your knowledge, what are the crisis management strategies or
practices which are designed by the Hilton hotel for managing the crisis?
Frequency
a) Developing a strong crisis team 8
b) Building strong relation with the outsiders 2
c) Communicate the crisis to stakeholders 5
d) Developing the crisis management plan 4
e) Accumulating sustain funds 1
Q4) As per your perspective, all the crisis management practices effective
for the Hilton to manage their uncertainty in sound manner as well as to
mitigate the challenges which would be faced if crisis occur?
Frequency
a) Strongly effective 5
b) Effective 4
c) Neutral 7
d) Ineffective 3
e) Strongly ineffective 1
Q5) According to your experiences, what is the importance of crisis
management strategy for Hilton hotel for growing their business and
attaining success?
Frequency
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a) For building resource in sound manner 6
b) For creating environment of communication 4
c) For mitigating the threats 7
d) For pinpoint the risk in earlier manner 3
Data presentation
Q1) Do you think that you possess the basic understanding about the
concept of crisis management?
Frequency
a) Yes 15
b) No 2
c) Maybe 3
Figure 1: Basic understanding about the concept of crisis management
Q2) As per your perspective, it is very important for the Hilton hotel to
adopt the strategy of crisis management within their organisation?
Frequency
a) Yes 16
b) No 3
c) Maybe 1
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Figure 2: Important for the Hilton hotel to adopt the strategy of crisis management
Q3) As per your knowledge, what are the crisis management strategies or
practices which are designed by the Hilton hotel for managing the crisis?
Frequency
a) Developing a strong crisis team 8
b) Building strong relation with the outsiders 2
c) Communicate the crisis to stakeholders 5
d) Developing the crisis management plan 4
e) Accumulating sustain funds 1
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Figure 3: Crisis management strategies
Q4) As per your perspective, all the crisis management practices effective
for the Hilton to manage their uncertainty in sound manner as well as to
mitigate the challenges which would be faced if crisis occur?
Frequency
a) Strongly effective 7
b) Effective 5
c) Neutral 4
d) Ineffective 3
e) Strongly ineffective 1
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Figure 4: Crisis management practices effective for the Hilton to manage their uncertainty
Q5) According to your experiences, what is the importance of crisis
management strategy for Hilton hotel for growing their business and
attaining success?
Frequency
a) For building resource in sound manner 6
b) For creating environment of communication 4
c) For mitigating the threats 7
d) For pinpoint the risk in earlier manner 3
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Figure 5: Importance of crisis management strategy for Hilton hotelBasias, N. and Pollalis, Y.,
2018Rinjit, K., 2020Younus, A.M. and Zaidan, M.N., 2022
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CHAPTER FIVE: DISCUSSION (DATA INTERPRETATION)
Theme 1: Basic understanding about the concept of crisis management
Interpretation: From the above table it is interpreted that out of 20 employees of Hilton
15 has the basic understanding about the concept of crisis management. This says that crisis
management is the business model which hotel acquire to deal with the damages. 2 says that they
do not the concept of crisis management and rest 3 is of the view that they might know but not in
deeper manner.
Theme 2: Important for the Hilton hotel to adopt the strategy of crisis management
Interpretation: With the gathered data it is being analysed that 16 employee feels that it
is very important for the Hilton hotel to acquire crisis management strategy in their business.
This helps them to mitigate all the threats and risk which helps in improving the business
performance. 3 answer no that it is not at all important for the Hilton to change their business
model and adopt crisis management. Remaining 1 says it may be important for the hotel but they
do not know.
Theme 3: Crisis management strategies
Interpretation: With the assemble piece of data it is analysed that majority of the
respondent out of 20, 8 answer that developing crisis team is one of the effective practice that is
develop by the Hilton which heled them to manage their crisis in effective way. Some other
employee voted for building strong relation with outsiders, communicating the crisis, using
retained funds and many other.
Theme 4: Crisis management practices effective for the Hilton to manage their uncertainty
Interpretation: From the collected data using primary source it is analysed that 7
respondent says the crisis management practices which Hilton adopted is strongly effective from
them to grow. 5 answer it is effective, 4 is neutral in their view. Rest voted for ineffective as they
think different crisis created different challenges which can be mitigate by designing the practice
as per the challenges.
Theme 5: Importance of crisis management strategy for Hilton hotel
Interpretation: From the gathered information it is concluded that out of 20 employee of the
Hilton hotel 7 is of the view that crisis management is important for the company as it helps in
mitigating the threat by taking correct action as per the problem. 6 says that it helps them to build
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resources in sound manner so that they can be put in action in effective and sound manner. 4
answer for creating environment for communication. Rest 3 is o the view it is important for
pinpointing the risk earlier to the happening.
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CHAPTER SIX: CONCLUSION, RECOMMENDATIONS AND
IMPLICATIONS FOR FURTHER RESEARCH
Conclusion
From the gathered data it is concluded that crisis management is one of the important
practice for the organisation. It is an application which helps the organisation to deal with the
damage in sound manner so that they can grow their business in effective way. It is also
concluded that crisis management is important for the hospitality industry as it helps them to
pinpoint the threats and then taking corrective measures. Crisis management is important so that
challenges which were faced by the hotel can be mitigate and they can operate their operation in
that manner were they can grow and attain success.
Recommendation
With the accumulated piece of information, it is suggested to the organisation to shift their
focus on the concept of crisis management. This is because through this they can grow their
business and operated their business in normal manner. There are some of the strategies which
can be recommended to the hospitality sector to manage their crisis that are;
Building crisis management team: This is the most important practice as it helps them to
analyse the crisis and then inspect out the challenges in sound full manner.
Developing crisis management plan: Another strategy which need to acquire is building
the blueprint for their crisis challenges so that action can be taken in that direction.
Further implication for research
In the current research investigator has used quantitative research method to carry out their
investigation. To collect information primary source of data is used which is collected using
questionnaire. The alternative research which can be used by the investigator for this particular
topic is qualitative research method. This method helps them to gain more insight about the topic
so that deeper investigation can be made. For gathering and analysing qualitative information
interview can be conducted so that noon numerical data can be collected.
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REFERENCES
Books and Journals
Ashton, A.S., 2018. How human resources management best practice influence employee
satisfaction and job retention in the Thai hotel industry. Journal of Human Resources in
Hospitality & Tourism. 17(2). pp.175-199.
Basias, N. and Pollalis, Y., 2018. Quantitative and qualitative research in business & technology:
Justifying a suitable research methodology. Review of Integrative Business and Economics
Research, 7, pp.91-105.
Domala, J., Dogra, M., Masrani, V., Fernandes, D., D'souza, K., Fernandes, D. and Carvalho, T.,
2020, July. Automated Identification of Disaster News for Crisis Management using
Machine Learning and Natural Language Processing. In 2020 International Conference on
Electronics and Sustainable Communication Systems (ICESC) (pp. 503-508). IEEE.
Fryer, L.K., Donthu, N. and Gustafsson, A., 2020. Effects of COVID-19 on business and
research. Journal of business research, 117, pp.284-289.Larson-Hall, J. and Stewart, J.,
2018. Quantitative methodology. In The Palgrave handbook of applied linguistics research
methodology (pp. 55-77). Palgrave Macmillan, London.
González-Torres, T., Rodríguez-Sánchez, J.L. and Pelechano-Barahona, E., 2021. Managing
relationships in the Tourism Supply Chain to overcome epidemic outbreaks: The case of
COVID-19 and the hospitality industry in Spain. International journal of hospitality
management. 92. p.102733.
Hu, X., and et. al, 2021. Creating a safe haven during the crisis: How organizations can achieve
deep compliance with COVID-19 safety measures in the hospitality industry. International
Journal of Hospitality Management. 92. p.102662.
Le, D. and Phi, G., 2021. Strategic responses of the hotel sector to COVID-19: Toward a refined
pandemic crisis management framework. International Journal of Hospitality
Management, 94, p.102808.
Narjabadifam, P., Hoseinpour, R., Noori, M. and Altabey, W., 2021. Practical seismic resilience
evaluation and crisis management planning through GIS-based vulnerability assessment of
buildings. Earthquake engineering and engineering vibration, 20(1), pp.25-37.
Niknejad, N., Hussin, A.R.C. and Amiri, I.S., 2019. Quantitative Research Methodology for
Service-Oriented Architecture (SOA) Adoption in Organizations. In The Impact of Service
Oriented Architecture Adoption on Organizations (pp. 43-51). Springer, Cham.
Nizamidou, C. and Vouzas, F., 2020. The contribution of preoccupation with failure to TQM,
crisis management and HR aiming to overcome crises. The TQM Journal, 32(6), pp.1077-
1098.
Rinjit, K., 2020. Research methodology.
Younus, A.M. and Zaidan, M.N., 2022. THE INFLUENCE OF QUANTITATIVE RESEARCH
IN BUSINESS & INFORMATION TECHNOLOGY: AN APPROPRIATE RESEARCH
METHODOLOGY PHILOSOPHICAL REFLECTION. American Journal of
Interdisciplinary Research and Development, 4, pp.61-79.
Online
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Crisis management in times of COVID-19: Game, set or match? [Online] 2020 Available at: <
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at :https://www.sciencedirect.com/science/article/abs/pii/S221242091830030X
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APPENDICES
Questionnaire
Q1) Do you think that you possess the basic understanding about the concept of crisis
management?
a) Yes
b) No
c) Maybe
Q2) As per your perspective, it is very important for the Hilton hotel to adopt the strategy of
crisis management within their organisation?
a) Yes
b) No
c) Maybe
Q3) As per your knowledge, what are the crisis management strategies or practices which are
designed by the Hilton hotel for managing the crisis?
a) Developing a strong crisis team
b) Building strong relation with the outsiders
c) Communicate the crisis to stakeholders
d) Developing the crisis management plan
e) Accumulating sustain funds
Q4) As per your perspective, all the crisis management practices effective for the Hilton to
manage their uncertainty in sound manner as well as to mitigate the challenges which would be
faced if crisis occur?
a) Strongly effective
b) Effective
c) Neutral
d) Ineffective
e) Strongly ineffective
Q5) According to your experiences, what is the importance of crisis management strategy for
Hilton hotel for growing their business and attaining success?
a) For building resource in sound manner
23

b) For creating environment of communication
c) For mitigating the threats
d) For pinpoint the risk in earlier manner
24