Crisis Management in Hospitality Industry during Covid-19: A Case Study of Hilton

This research paper analyses the impact of Covid-19 on the hospitality industry, with a focus on Hilton hotels. It reviews the crisis management strategies used by the industry to deal with the pandemic and provides recommendations for Hilton hotels. The paper also discusses the economic, environmental, and social-cultural impacts of Covid-19 on the industry.

Project on Pearson-set theme
of Crisis Management
(Distinction Criteria)

Table of Contents
Chapter 1: Introduction-..................................................................................................................4
1.1 Problem statement.................................................................................................................4
1.2 Organizațional overview........................................................................................................4
1.3 AIM........................................................................................................................................4
1.4 Objectives..............................................................................................................................4
1.5 Research questions.................................................................................................................5
1.6 Research raționale..................................................................................................................5
1.7 Significance of the research...................................................................................................5
Chapter 2: Literature review............................................................................................................5
Introduction..................................................................................................................................5
2.1 Impact of Covid-19 on tourism..............................................................................................6
2.1.1 Environmental impact...............................................................................................6
2.1.2 Economic impact......................................................................................................6
2.1.3 Social cultural impact...............................................................................................6
2.2 Impacts of Covid 19 on hospitality industry..........................................................................7
2.2.1 Reduction in bookings..............................................................................................7
2.2.2 Lock-downs..............................................................................................................7
2.3 Benefits of crisis management...............................................................................................7
2.3.1 Dealing with the negative impact of Covid-19.........................................................7
2.3.2 Managing stability of the business...........................................................................8
2.4 Response by Hospitality industry to Covid 19 pandemic......................................................8
2.4.1 Changes in the business............................................................................................8
2.4.2 Attracting the customers...........................................................................................8
REFERENCES................................................................................................................................1

Topic- A qualitative research study into analysing the impact on the Covid-19 and crisis
management.
Chapter 1: Introduction
1.1 Problem statement
Covid-19 pandemic has created a negative impact on the overall operational capabilities of the
businesses on maximum industries. This has created difficulty for the companies in the internal
market to undertake their business activities properly. This situation has created a situation of
crisis for the hospitality industry which leads is creating difficulty for the businesses to perform
in the business environment (Sanabria-Díaz, Aguiar-Quintana and Araujo-Cabrera, 2021). The
restrictions which have been imposed by several governments created issues and challenges for
the Hilton hotels to operate freely and achieve productive results in the industry. This had a
significant impact on the overall operformance of the business in the business environment.
1.2 Organizațional overview
Hilton hotels and resorts is an international hotel chain which has a wide market share in the
hospitality industry. This organization has gained massive popularity and support by the
customers due to its consistent performances and growth in the market. Various services are
provided by Hilton to their customers which has achieved a positiove response from them having
a positive impact on its success in the industry (Ozdemir and et.al., 2021). The Covid-19
pandemic has increased issues and challenges for the business which had a negative impact on its
operational capabilities in the industry. The pandemic has increased difficulties for the
organization to acquire customers and increase their success in the industry.
1.3 AIM
To analyse the impact on Covid-19 and crisis management practices on the hospitality industry:
A study on Hilton.
1.4 Objectives
 To review the impact of crisis management strategies on tourism industry.
 To evaluate the impact of Covid-19 on Hilton Hotel
 To analyse the crisis management practices which are useful for dealing with Covid-19.
 To make recommendations to Hilton Hotel regarding crisis management strategies for
responding to Covid 19

1.5 Research questions
 What is the impact of crisis management strategies on tourism industry?
 How does Covid-19 influences the Hilton Hotel?
 Which crisis management practices are useful for dealing with Covid-19?
 Recommend crisis management strategies to Hilton Hotel for responding to Covid 19?
1.6 Research raționale
The situation of Covid-19 pandemic has created an atmosphere of fear among audience which
restricted them from making their staying decisions in the hotel. This has lead towards losses for
the company which has a negative impact on the overall performance of Hilton hotel in the
hospitality industry (Davahli and et.al., 2020). The crisis management strategies are considered
as imortant for the business to increase their sustainability in the complex situations and gain
better advantage. With the help of these strategies, Hilton hotel is able to increase their
opportunities to survive in the market and improve their current condition from the crisis.
1.7 Significance of the research
This research is highly significant as it can provide better understanding of impact of Covid-19
pandemic on the hospuitality indusdtry. The situation of Hilton hotel while facing the problems
that have been created due to the Covid-19 pandemic will be identified with the help of this
research which will be crucial for other businesses to prepare better strategies. This will provide
a suitable understanding of the different activities which can be effective for the management to
grow.
Chapter 2: Literature review
Introduction
Literature review is considered as a summary of the different researchers abnd studies which has
been done on a particular topic or subject. Different sources like books, journals and other
relavant literature is researched with the help of different tools. The literature review is
conducted with the help of different themes and sub-themes. The first theme will analyse the
impact of Covid-19 on tourism and second theme explains influence of the pandemic on

hospitality industry. The third theme provides understanding of the crisis management and the
fourth theme will explains relation of hospitality industry and Covid-19 pandemic.
2.1 Impact of Covid-19 on tourism
2.1.1 Environmental impact
According to Hao, Xiao and Chon (2020), Covid-19 pandemic has created a negative impact on
the overall performance of the business in the industry. A large amount of pollution is generated
by the visitors in the tourist places which increases the threats for the outbreak. This increases
the problems and challenges which are faced by the company to manage their daily operations
and grow in the competitive business environment.
Karim and et.al. (2020), soil erosion is increased due to the mobility of the customers which
increases the pollution and chances for Covid-19 pandemic. It has a negative impact on the
overall profitability of the company in the hospitality industry.
2.1.2 Economic impact
As per the view of Aigbedo (2021), Covid-19 pandemic had an adverse impact on the jobs of the
candidates as people in the tourism industry. Due to the situation of lockdowns, the Hilton faced
different issues in managing their economic stability which had a significant impact on the
overall successs of the business in the industry.
According to Kha and et.al. (2021), the income levels of the customers have decreased which
reduces the chances for the hospitality business to acquire more customers. Due to less income
capavacity of the customers, they are unable to spend in liesure activities like staying in hotels
and enjoying their weekends.
2.1.3 Social cultural impact
Rodríguez-Antón and Alonso-Almeida (2020), stated that Covid-19 has created a negative
impact on the psychological stability of the customers which restricts them to commute to
different places for their liesure activities. The pandemic has increased fear among the audience
which restricts them to their homes that has a negative impact on the sales of this business.

According to Yeon and et.al. (2021), the sanitation problems in hotels is a major issue which
increases the neglect of the costumers towards the hotels in the pandemic times. It reduces their
interest in booking stays and enjoying their time in the hotels.
2.2 Impacts of Covid 19 on hospitality industry
2.2.1 Reduction in bookings
Filimonau (2021) explained that Covid-19 pandemic has created a negative impact on the
success of the business in acquiring their customers. The customers do not have trust on the
overall management practices of the Hilton hotel in the pandemic times.
2.2.2 Lock-downs
As per Hemmington and Neill (2022), lockdowns have created issues and challenges for the
hospitality industry to operate in the business environment effectively. There are diferent
ristrictions which were imposed by giovernments in order to reduce the outbreak of the virus
having a negative influence on the management of the business.
2.3 Benefits of crisis management
2.3.1 Dealing with the negative impact of Covid-19
According to Anguera-Torrell, Aznar-Alarcón and Vives-Perez (2021), crisis management
practices have been beneficial for reducing the negative influence of the pandemic on the overall
industry. There are several changes which have been initiated in the business environment of the
companies with the help of these strategies that are useful for increasing the success of the
business.
Tu, Li and Wang (2021)stated that new and advanced technological tools and monitoring
practices are crucial for increasing the effectiveness of the business in teh industry. These aspects
provide better support and convenience for the business to enhance their performance and gain
better advantage in the tough times of Covid-19 pandemic.

2.3.2 Managing stability of the business
As per Yacoub and ElHajjar (2021), crisis management practices are crucial for the management
to stabalise their businesses and increase the chances for gaining better advantage in the industry.
These strategies provides better assistance to the businesses to increase their sustainability in the
business environmnt by dealing with the negative impact of the Covid-19 pandemic. Due to
these activities, the businesses are able to enhance their performances and grow in the highly
competiotivbe business environment.
2.4 Response by Hospitality industry to Covid 19 pandemic
2.4.1 Changes in the business
As per Chadee, Ren and Tang (2021), the best response of hotels to COVID- 19 is workplace
transformation, from employees to work guidelines that they are accountable to follow in
appropriate manner, for purpose of providing or offering satisfactory services to each guest. This
has increased the success of the business to grow and achieve higher quality of output in
increasing the motivation levels of their customers to visit the hotels.
2.4.2 Attracting the customers
According to Corley, Bansal and Yu (2021), In the recent time, pandemic has affected the whole
world, especially individuals’ health, who are older and unable to take better care of themselves.
It may change the buying and decision-making activities of individual customer. Therefore,
organizations take action to reform work area according to changing habit, behaviour and
decision of people that aid to retain them and gain the attention of new. In above stated manner,
firms may respond effectively to crisis management. This has increased the changes by the
business in the industry which is helpful for them to deal with the complex issues which have
been created by the Covid-19 pandemic.

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Aigbedo, H., 2021. Impact of COVID-19 on the hospitality industry: A supply chain resilience
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Anguera-Torrell, O., Aznar-Alarcón, J.P. and Vives-Perez, J., 2021. COVID-19: Hotel industry
response to the pandemic evolution and to the public sector economic measures. Tourism
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Yacoub, L. and ElHajjar, S., 2021. How do hotels in developing countries manage the impact of
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