Hospitality and Tourism Strategy in the Global Marketplace Report

This report provides a strategic analysis of Hilton Worldwide's approach to the global hospitality and tourism industry. It begins with an introduction highlighting the industry's growth and Hilton's global presence, followed by an environmental and competitive analysis using PESTLE and Porter's Five Forces models to assess external factors and competitive dynamics. The report then identifies potential strategic trajectories for Hilton to expand into new market opportunities, focusing on situational analysis to assess strengths, weaknesses, opportunities, and threats. Further, it emphasizes the importance of innovation and creativity in achieving strategic performance, and concludes with a critical evaluation of the research findings and the lessons learned throughout the assignment. The report underscores the significance of environmental factors, competitive analysis, and strategic planning for success in the global hospitality market, emphasizing the need for adaptability and innovation. The report explores key aspects of the industry, including political, economic, social, technological, legal, and environmental factors. Finally, the report concludes with the importance of strategic thinking for sustainable advantage in the hospitality sector.

Hospitality and Tourism Strategy
In The
Global Marketplace

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Environmental and competitive analysis of organisation and success of strategic sustainability
................................................................................................................................................1
TASK 2............................................................................................................................................6
Identifying possible strategic trajectories in order to open new market opportunities...........6
TASK 3..........................................................................................................................................10
Innovation and creativity are critical component of strategic performance.........................10
TASK 4..........................................................................................................................................12
Critically evaluating the research findings and the lesson which I have learned during this
assignment............................................................................................................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
The industry of hospitality and tourism is growing rapidly and largely with contributing
in world's GDP. In recent years, hospitality industry has gained huge importance in energetic
process of expansion. Accordingly, the hospitality and tourism industry is expanding its business
globally and supporting its growth and success in multicultural environment. Global oriented
hospitality and tourism companies compete with both local and international competitors.
Hospitality and tourism industry are the big support for economy of country as well (Brotherton,
2012). By the large number of indicators, it has been identified that economic growth of country
is expected by the international monetary funds. However, this economic growth is unevenly
distributed in developing and in advanced countries. Thereby, the hospitality and tourism
organizations develop strategies to get successful in the global markets. This report is based on a
case scenario of Hilton Worldwide which is a global hospitality organization that is based in
United States (Lucas, 2004). Hilton includes 4,112 hotels in 91 countries and expanding its
hospitality and tourism business more in the global markets. This report will showcase the
strategic mechanical phenomenon that is followed by Hilton and competencies which are
developed with time to be successful in international markets with the application of relevant
models to assess the external and competitive analysis to identify the drivers of change and
competency gaps along with the core capabilities and culture of firm by developing the relevant
strategic models. Hospitality and tourism industry is beneficial in the economic growth of the
country. Even in some scenario, hospitality also increase the opportunities for providing
employment to people. The hospitality industry can be divided into two categories. First is clubs,
restaurant, bars, and catering and second is food outlets, hospitals, airlines etc. However, tourism
industry and hospitality industry are the important part for the growth of country's economy
(Som and Al-Kassem, 2013).
TASK 1
Environmental and competitive analysis of organisation and success of strategic sustainability
Environmental analysis of Hilton Worldwide: The environmental analysis of Hilton
Worldwide is a strategic tool to identify all the internal and external factors that affect the
organizational performance in global markets (Buhalis and Crotts, 2013). This environmental
analysis will help in assessing the level of opportunities and threats that are available for
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business in international markets. The environmental analysis of business will be carried out
through PESTLE analysis. This tool includes various factors that have a huge impact on
businesses. These internal and external factors are as follows:
 Political factors: Political factors include the current political situations of the country.
These political factors also depict the global political conditions and its effects on
business. Thereby, Hilton hotel should analyse all the government policies, taxes, tariffs,
stability of government and rules and regulations for international business entries of the
global country in which the firm is expanding its hospitality and tourism business (Yu,
2012). It is very important for the cited organization to develop the strategies for global
markets after assessing the political factors of country. Economic factors: The economic factors of country consist of the determinants of
economy of country or state. As per the economic factors of country, Hilton hotel should
analyse the inflation rate, interest rate, disposable income of buyers, credit accessibility,
unemployment rates, monetary and fiscal policies and foreign exchange rate of the
country (Buhalis and Crotts, 2013). By analysing these factors, firm can effectively
develop the hospitality and tourism strategies for global markets.
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Illustration 1: PASTLE Analysis
Source: MARKETING THEORIES – PESTEL
ANALYSIS,2015.

 Social factors: All the global countries are different from each other because of its
cultural effect and distinctive mindset. These diversities highly impact the businesses. As
per the social factors of global market, Hilton should analyse the cultural implications,
lifestyle of people, education level and distribution of wealth, etc (Backer, 2012).
Without analysing the social factors of global market, it would be difficult for the firm to
achieve its goals and objectives. Technological factors: In today's competitive environment, almost all the countries are
technologically developed. The technological advancement of country helps the business
to grow. The technological factors of nation help the businesses for communication and
efficient functioning of business (Aggett and Busby, 2011). Thus, in these technological
factors, Hilton hotel should analyse new technological discoveries which will help the
organization in effective service providing and rate of technological advances. Legal Factors: Furthermore, legal changes in country highly affect the businesses. For
instance, if a regulatory body of country develop a regulation for hospitality and tourism
industry then it is necessary for the organisations to follow those rules and regulations
(Hecht and Martin, 2006). As per these legal factors, Hilton hotel can develop strategies
for global market after considering all the laws and legislations of country such as service
legislations, employment legislations, competitive legislations, health and safety
legislations, etc.
 Environmental factors: In hospitality and tourism industry, location makes a huge
impact on business practices. Changes in weather have high impact on tourism. The
positive weather attracts the customers and helps tourism and hospitality industry to grow
(Torres and Kline, 2006). However, negative changes in environment such as earth
quakes and heavy rains lower down the business. Moreover, there are some other
environmental factors as well that affect the hospitality and tourism business such as
geographical location, waste disposable laws, energy consumption laws, etc. which
Hilton hotel needs to consider while developing the strategies for global markets.
After environmental analysis, the competitive analysis of Hilton hotel will be carried out
by Porter's five forces of competitive position model which will provide the perspective for
analysing the competitive strength and position of Hilton worldwide.
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 Existing competitive rivalry: As per the competitive analysis, Hilton hotel should analyse
the existing competitors of business. These competitive rivalries are the leading
determinant of competitiveness of hospitality and tourism industry and will help Hilton to
develop the strategies for international markets. Accordingly, hotel can analyse the
potential factors of existing competitors (Chang, 2011). The potential factors are
sustainable competitive advantage through innovation, type of competition, level of
advertising and promotion, level of transparency, etc. Threat of new market entrants: The threat of entry of new competitors into global
market affects the business and creates barriers for the successful growth of business. The
threat of new market entry will be high at the time of less capital for starting the business,
weak economy of the place, low switching cost of consumers and variations in products,
etc. Bargaining power of buyers: Bargaining power of buyers in Hilton hotel depicts the
organisational control upon buyers to drive the service price (Hecht and Martin, 2006).
The buyers of Hilton hotel will be more powerful at the time of bulk purchases,
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Illustration 2: Porter's Five Forces Competitive Analysis Model
Source: Porter’s Five Forces Model, 2009.

customers are price sensitive and services are not differentiated. However, Hilton hotel
can lower down the bargaining power of buyers by offering differentiated services and at
the time when there is not any substitute of those services. Power of suppliers: Moreover, in competitive analysis, bargaining power of suppliers
depicts the strong position of suppliers and how much it can increase costs for product
supplies in Hilton (Catherine Murphy and Kielgast, 2008). Suppliers are strong when
they are the only one who supply a particular product and they are concentrated and well
organized as well.
 Threat of substitute Services: Threat of substitute services is meant by the way in which
a customer of Hilton hotel can switch on competitor’s services. Threat of substitute
services is strong when the firm is unable to provide effective and efficient services to its
customers or if the firm is costing high prices for the services.
Furthermore, by observing the global markets through environmental analysis and
competitive analysis Hilton can develop the strategies effectively to sustain the competitive
advantage in global markets. These analyses will help the organization to attain the competitive
advantage in global markets (Willie, Jayawardena and Laver, 2008). With the help of
environmental analysis Hilton can collect the information about political, economical,
technological, legal and environmental factors of international markets. By considering all these
factors at the time of development of strategies cited firm can create sustainable strategies for
global markets (Christensen Hughes and Rog, 2008). In current scenario, the economy of
countries is not stable it is fluctuating very fast. This fluctuating economy of global country
make huge impact on hospitality and tourism industry. With regards to this, Hilton should
develop hospitality and tourism strategies according to foreign exchange rates, fiscal policies,
tariffs and tax rates of the global country. Since, Hilton is global hospitality and tourism
organization it is important for the firm to consider these environmental analysis factors
effectively (Harkison, Poulston and Kim, 2011). Moreover, competitive analysis will help the
Hilton to identify its strengths and weaknesses of business in global markets. By analysing these
strengths and weaknesses, Hilton can effectively develop the sustainable strategies for expanding
hospitality and tourism business in global markets. The competitive analysis will help Hilton to
identify the market gaps and accordingly the strategies can be developed for expanding business
in global market. A competitor analysis is a strategic planning tool that supports the organization
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in terms of identifying that in which global market organization can achieve success. Moreover,
the competitive analysis helps the Hilton to analyse its competitors strengths and effectiveness of
hospitality services (O'Leary and Deegan, 2005). This will be beneficial for Hilton to develop in
the area of its strengths and in turning its threats into strengths. Thus, environmental and
competitive analysis is essential for developing sustainable strategies for expanding business in
global markets.
TASK 2
Identifying possible strategic trajectories in order to open new market opportunities
The possible strategic trajectories or paths that Hilton is applying in order to break away
from its current industry and open up in new market opportunity is as follows, Situational analysis: To open up new market opportunities for expanding global business
in providing tour package to the customers of Hilton at all the branches around the world,
the situational analysis can be carried out by Hilton. Situational analysis is a foundation
for preparing a marketing plan. Situational analysis of business involves the examination
of internal and external factors that affects a business (Jauhari, 2009). This will provide
the firm market research and will define the potential customers, competitors and
projected growth of tour package business. Situational analysis for new business
opportunity involves aiming on specific objective of new business and identifying the
factors that supports these objectives of Hilton (*Willie, Jayawardena and Laver, 2008).
As per this assessment, Hilton can do identify its strengths, weaknesses, opportunities
and threats of the new business. For instance, Hilton is already has successful presence in
hospitality industry all over the world. Thereby, it will be easy for the firm to expand its
business in tourism industry by offering tour packages to customers. The global presence
of the Hilton in hospitality is the biggest strength of Hilton and at the same time it has lot
of opportunity to expand the business in tourism industry (Ingram and Grieve, 2013).
However, the weakness of Hilton can be analysed as lack of knowledge of tour packages.
The strength and weaknesses of Hilton will present the organizational structure,
operational efficiency and capabilities it possesses in order to break away from its current
industry and to open up new market opportunities. Furthermore, in external analysis
Hilton can identify the opportunities and threats for the tourism business. For instance,
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Hilton can analyse other hospitality organisations which is providing tour packages along
with hospitality services and competitors of the business in global markets. These
competitors are determinant of success in tourism industry in global markets (Butcher,
2005). Moreover, Hilton can also conduct environmental analysis for identifying all the
political, economical, technological, legal and environmental factors of the business
environment (Catherine Murphy and Kielgast, 2008). According to these political factors
Hilton can analyse the political influence on the tour packages business. For instance,
government policies for tour packages business which is essential for firms to consider.
Analysing economic factors depicts the economic stability of the global country.
Because, these economic factors will help in determining that the tour package business
will be beneficial for Hilton or not (He, Li and Keung Lai, 2011). For instance, if any
country have high taxes and low exchange rates than it will be a disadvantage for
business. Thereby, it is very important for Hilton to analyse all the environment factors at
the time of opening up in new market opportunities. Identifying the options: In order to break away from current industry and opening up
new market opportunities in spite of its current success in hospitality industry, Hilton will
have to identify the potential businesses which it can carry out along the hospitality
industry (Connolly and McGing, 2006). Hospitality industry is one of the most critical
service provider in global markets and for tourism industry. It consists all the business
which is required for travellers and tourist at the time of travelling to various destinations.
Thereby, hospitality industry and tourism industry is interrelated with each other.
Whether it is for luxury of life or for business, people often spend significant amount at
hotels and travelling around the world (Connolly and McGing, 2006). Thereby, Hilton
have identified its business opportunity in tour packages and business travels. The
hospitality industry plays significant role in offering packaged tour to the people. Since,
Hilton is a luxury hotel and expanded at 4202 locations around the world, it will be able
to provide luxury tour packages to the clients. Thus, packaged tour can be a suitable
option for Hilton in order to open new market opportunity. Furthermore, Hilton can also
find the business opportunities in providing business travel facility to customers.
Business people particularly prefer the hotels which is equipped with all the facilities to
work comfortably and to organize the business meetings successfully. However, Hilton
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have opportunities in offering business travel to the customers in various countries as
well (Hecht and Martin, 2006). The business persons mostly search the accommodations
that will provide them Wi-Fi, internet access, meeting rooms and conference areas, along
with other services such as, dry cleaning and laundry as well. Hilton worldwide have all
these facilities to offer to business person. Thereby, Hilton has opportunity to expand in
business travel as well. Selecting a suitable option: In the global environment tourism industry is expanding
largely around the world with lot of opportunities for hotels and hospitality. In order to
achieve success in new market opportunities Hilton worldwide can select the best suitable
opportunity in offering tour packages to its customers. Hilton have its hotels in multiple
countries (Torres and Kline, 2006). Thus, it can effectively offer packaged tour to its
customers. Hilton can offer luxury accommodation in these packaged tours. For instance,
if some customer is opting for a tour package than Hilton can offer them hotel
accommodation in the particular city with all the facilities breakfast, lunch and dinner etc.
the travel agents assigned by Hilton ensures that customers are having pleasing time in
these packaged tour(Aggett and Busby, 2011). By selecting packaged tour option Hilton
can offer its customers several types of tour packages. Since, Hilton possesses effective
good will and brand recognition it can attract various customers for its tour packages and
Hilton will be able to be successful in tourism industry also along with hospitality
industry. In recent times travel and tourism industries are growing rapidly. All the travel
agencies are connecting with various hotels and airlines. By establish collaboration with
them hotels can offer best tour packages to its customers (Hecht and Martin, 2006).
Getting these tour packages is currently in fashion trends of people because it depicts
their status as well. Thus, Hilton can attain huge success by selecting this option as a new
market opportunity.
 Implementing the chosen opportunity: Tour packages includes everything from
travelling expense to lodging, food and return ticket. Thereby, Hilton can make separate
arrangements for these tour packages along with hospitality. Hilton can offer the
customers effective services in which they do not have to worry about airline bookings,
train tickets, hotels, taxis and food etc. everything will be arranged by Hilton. Cited firm
can avail easy booking options for their customers for tour packages and make these tour
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packages available throughout the year (Christensen Hughes and Rog, 2008). The
customers can plan their holiday in any convenient time. Hilton can provide these tour
packages with packages by offering them easy booking option and discount in off peak
travel times. Moreover, Hilton can also implement various strategies to promote the tour
packages business along with hospitality department. With regards to technological
growth, Hilton can implement online booking option for these tour packages in which it
can mention tour details in full description like, tour days, services included in package,
and total cost of particular tour package (Aggett and Busby, 2011). Moreover, the online
booking option should be easy and simple to use for customers with convenient payment
options. By including all such facilities in tour packages Hilton will be able to attract the
more number of customers. For effective implementation of tour package service in the
Hilton, It has to provide training to its workforce about the tour packages and how they
can covert customers for tour packages. Moreover, Hilton can collaborate with all
economic and luxury hotels as well to make tour packages available for all type of
consumers. For instance, if some customer requires budget tour package than Hilton can
provide them accommodation in economic priced hotels. Similarly, the customers who
needs luxury tour packages than Hilton can provide them services in their own hotel
(Chang, 2011). Since, Hilton is financially strong and have strong presence worldwide it
will be beneficial for the firm to break away from its current business and explore new
market opportunity. Along with collaborating with hotels in various countries the firm
can also tie up with travels agencies and airline companies. The collaboration with hotels
and airline companies Hilton can provide customized tour packages to its customers. As
per these customized services Hilton can provide them tour packages as per their
convenience and requirement. Further, cited firm can also include the sightseeing option
for their customers, in which Hilton can make arrangements for their customers for local
sightseeing. In current lifestyle of people tours and travels has become status symbol of
people (Som and Al-Kassem, 2013). This creates lot of new opportunities for hospitality
industry as well. For people, buying a tour package broadly delivers good value and
convenient form of travel. This new business opportunity will be proved beneficial for
Hilton, because Hilton is well known for its effective and efficient customer services
worldwide. To expand the business in tour packages and make people aware about the
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new tour package services by Hilton, it can operate many promotional activities. For
instance, workforce of Hilton can do cross selling with its regular customers and offer
them customized tour packages as per their requirement. Further, it can conduct various
promotional activities as well, such as advertisement in local television channel,
advertisement in newspapers, Brochures, customer references etc. The more effective
benefit for Hilton to break away from its current industry and exploring the opportunities
in tour packages is its diversified workforce (Tesone, 2005). Since, Hilton is located
worldwide, it has effective and diversified workforce . This diversified workforce of
Hilton can provide effective services to customers as per local cultural preference and
make the travel and tour experience memorable for the customers. Thereby, Hilton can
achieve the success in new market opportunities of packaged tours.
TASK 3
Innovation and creativity are critical component of strategic performance
Innovation can be referred to a practice of developing something new and unique. On the
other hand, creativity can be considered as a practice of doing same thing in new and novelty
manner so that it becomes a matter of attraction. Since, present era combines huge competition in
the economy, it is required to incorporate innovation and creativity in products and services so
that it can more of customers can be attracted towards it. Also, it aids in meeting with the needs
and wants of the customers through which loyalty is attained. Further, in order to get competitive
advantage, it is being required by the firm that it must behave in a strategic manner. This is
because, through this type of activity only firm will be able to carry out its efforts with regard to
build distinct image of its brand in the mind of buyers. Thus, this leads to the corporation in
terms of increased profits and sales (Buhalis and Crotts, 2013). However, in order to behave
strategically, a firm needs to be comply with the innovation and creativity type of concepts.
These concepts will help enterprises in terms of building the unique and creative image in the
mind of buyers.
Thus, it is right to said that the innovation and creativity are the critical component of
strategic performance and this concept is being effectively followed by the selected hospitality
company which is named as hotel Hilton. The manager of hotel Hilton took very innovative and
creative steps with an aim to build the tactical image of its brand in the mind of buyers. In this
regard, on the basis of analysis it is identified that the hotel Hilton provides unique and creative
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