Hilton Hotel's Post-Pandemic Consumer Attraction Strategies Report

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Added on  2023/01/06

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This research project, focusing on Hilton Hotels, investigates strategies for attracting consumers in the aftermath of the COVID-19 pandemic. The study explores the impact of the pandemic on the hospitality industry, highlighting the significant decrease in consumer activity and economic challenges. The research employs qualitative methods to analyze strategies for consumer attraction, including adherence to safety measures, social media marketing, and sales promotion techniques. The findings reveal challenges such as consumer resistance and competition. The report concludes with recommendations for Hilton to improve its position, emphasizing the importance of adapting to changing consumer behaviors and market conditions. The study provides valuable insights for the hospitality sector, offering practical strategies for recovery and growth in a post-pandemic environment. The research also includes an extensive literature review on the impact of COVID-19 and strategies for consumer attraction. The report is designed to assist Hilton in identifying strategies that attract a large number of consumers to their hotels.
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Module Code: TM6106
Module Title: RESEARCH PROJECT
Word count: 7000
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ACKNOWLEDGEMENT
For the completion of the current dissertation, it would not have been possible without help of
many people connected with the study and myself. Firstly, major contribution is of my tutor who
have assisted me at every stage of completion of my dissertation. In addition to this I would also
extent my gratitude towards my family and friend who have assisted me throughout my
dissertation.
Thank you
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ABSTRACT
With reference to the current pandemic the consumer has restricted their outing for
travelling to other places and to go out for leisure time. This has resulted in decrease in sales of
the hospitality sector. On the other side, economic shutdown due to COVID 19 has also affected
working of hospitality sector to a great extent. The present research outlined that use of
qualitative research was assistive in completing the study in successful manner. This was
pertaining to the fact that this helped in developing knowledge relating to various strategies
which was helpful in stimulating consumer to come. Further from the analysis of finding it was
analysed that majorly affected sector due to pandemic is hospitality industry. In addition to this it
as evaluated that there are strategies with help of while Hilton can stimulate or encourage
consumer to come to hotel and stay. For this major strategies identified was adhering to all safety
measures prescribed by government for managing pandemic. In addition to this other strategy
were like social media marketing, sales promotion techniques and others. Further it was also
analysed that there are some challenges which restrict attracting the consumer post pandemic.
These challenges were like resistance of consumer, competition and many others.
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TABLE OF CONTENTS
CHAPTER 1- INTRODUCTION....................................................................................................5
1.1 Background...........................................................................................................................5
Aim and objective.......................................................................................................................5
1.2 Rationale...............................................................................................................................6
CHAPTER 2- LITERATURE REVIEW.........................................................................................7
CHAPTER 3- RESEARCH METHODOLOGY...........................................................................12
CHAPTER 4- FINDINGS AND ANALYSIS...............................................................................14
CHAPTER 5- CONCLUSION AND RECOMMEN DATION....................................................17
5.1 Conclusion..........................................................................................................................17
5.2 Recommendation................................................................................................................18
REFERENCES..............................................................................................................................20
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CHAPTER 1- INTRODUCTION
1.1 Background
For any company the most important thing is to keep its consumer happy and satisfied for
improving profitability of company. In hospitality industry the crucial aspect is to manage
consumer and keep them connected with company. Currently COVID 19 has affected the
hospitality industry to a great extent. Hospitality is the sector which deals with all facilities for
satisfying needs of consumers. This sector provides different services like food, beverages, bars,
accommodation, recreational and entertainment, tourism and travel and others. After effects of
pandemic resulted in heavy loss to the hospitality sector and number of consumer reduced.
Hence, for revival of hospitality sector the most essential thing is to attract consumer
after current pandemic. There are different types of strategies with which the consumer can be
attracted and motivated to use different facilities of hospitality sector. The current research will
outline the impact which COVID 19 created over hospitality sector along with examination of
different strategies which are assistive in attracting consumer. Also, an analysis of different types
of challenges which hospitality sector may face in order to attract consumers.
Aim and objective
“To analyse the strategies for attracting consumers after COVID 19 in order to improve
performance and profitability of company. A study on Hilton.”
Objectives
To understand the impact of COVID 19 over hospitality sector.
To evaluate the various strategies with help of which Hilton can attract consumer after
COVID 19 pandemic.
To examine the different challenges which Hilton might face at time of implementing and
attracting consumers.
To recommend some of the measures which will be assistive for Hilton in attracting
consumers.
Research question
What is the impact of COVID 19 over hospitality industry?
What are the various strategies which will assist Hilton in attracting consumer after COVID
19 pandemic?
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What are the various challenges that Hilton is going to face at time of implementing
strategies for consumer attraction?
What are the major recommendation for the hotel to improve its position among consumer
after effects of pandemic?
1.2 Rationale
In the current environment the competition is at peak and due to pandemic already
consumers are very less. Hence, it is essential for companies in hospitality sector to try to attract
consumer so that profitability of companies increases. Hence, this was the major reason for
selection of topic of strategies for attracting consumers. This is pertaining to the fact that
currently consumers are not going to any hotel or restaurant due to pandemic but hotels need to
attract consumers. Therefore, this was the reason underlying the use of topic of consumer
retention strategies. In addition to this another reason for completion of research is the personal
and academic interest of the researcher.
Scope of research
This research is of utility majorly to the company on which the research is being
conducted that is Hilton. This is of use as this study will assist Hilton in identifying different
strategies that will assist in attracting large number of consumer in hotel. Further this report is
also beneficial to competitors of Hilton as well as they can also implement these strategies in
their operations as well. Furthermore, this research is also beneficial to other researchers who are
also conducting research on same or related topic.
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CHAPTER 2- LITERATURE REVIEW
Theme 1- Impact of COVID 19 over the hospitality industry.
In accordance with Hao, Xiao and Chon (2020) currently pandemic has created harsh
impact over every sector of economy and whole of the world. For particularly hospitality
industry pandemic created huge negative impact and this affected profitability of companies in
hospitality sector to a great extent. The main impact which was created by pandemic was of
heavy losses to companies in hospitality sector.
As per the views of Filimonau (2020) this was pertaining to the fact that due to pandemic
there was lockdown in almost all countries of world. Due to this reason the people were not
allowed to travel anywhere. Hence, this resulted in heavy losses to companies dealing in travel
and tourism. In addition to this as people were not travelling to other places so business of hotels
and restaurant was also shut and this resulted in heavy losses to company.
On the other side Chevtaeva and Guillet (2020) argued that another impact of pandemic
was decrease in number of employees. This was due to the reason that already there was no sales
for hotel due to lockdown and hotels were not in position to bear expenses of salary to
employees. Hence, many of the hotels reduced the number of employees to minimum so that
they can limit the salary expense.
Furthermore, Pai and et.al., (2020) elaborated that decrease in number of consumer was
the major impact of COVID 19 over hospitality industry. The reason underlying this fact was
that due to lockdown no consumer was going anywhere. In addition to this even after lockdown
the consumer had a fear that if they will go out then they will get infected with virus. Hence, this
resulted in decrease in number of consumer and as a result of this there was decrease in profits of
company.
In contrast to this Yu, Seo and Hyun (2021) articulated that increase in cost was also a
great impact on hotels and hospitality industry due to pandemic. This is particularly because of
the reason that due to pandemic consumer was not coming to the place. But then also hotels and
other outlet need to run and for this they have to incur basic expenses like electricity, staff salary,
administration expenses and other related expenses to be paid. In addition to this after the
pandemic as well cost of hotels will increase. This is pertaining to the fact that hotels need to
invest more in sanitisers and other things for protection of consumer coming to place. Moreover,
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hotels need to focus on all the aspect and guidelines being provided by government with respect
to pandemic.
Theme 2- Evaluation of different strategies with help of which company might attract
consumer after current pandemic.
From the opinion of Dobrescu and Mazilu (2020) current pandemic created many
negative impact over the hospitality industry. Hence, it is very essential for them to revive from
devastating impact of COVID 19 and for this implementation of the various strategies to attract
consumers. These strategies will help companies in hospitality industry stimulate and motivate
consumer to come back to the hotels and restaurants.
With reference to work of Kaushal and Srivastava (2021) complying with proper
sanitisation and all the guidelines provided by government relating to current pandemic must be
followed. This is a good strategy and will attract large number of consumers because the people
will like the fact that hotels are complying all safety measures in order to protect customers.
Furthermore, this will build trust of consumer towards the company as they are complying with
all necessary requirements and measures specified by government.
On the other side He and Harris (2020) criticized that major strategy for attracting
consumer is to focus on online working of business. This is particularly because of the reason
that if companies in hospitality will work totally online then there will be less of social
interaction and people will come less in personal contact. Hence, this will increase number of
people coming to place as they will book their stay online and will not have to wait. As they will
arrive at the hotel they will get their booking and in addition to this payment will also be done
with help of online medium only. Along with this, consumer must also be given the option of
placing order from their home. This will assist them in placing order and till the time they will
reach the hotel or restaurant the food will be ready and they can consume it.
In addition to this Filimonau, Derqui and Matute (2020) states that another strategy for
attracting consumer in hospitality industry is the use of social media marketing. This is necessary
for the companies in hospitality sector as use of social media marketing will cover large number
of people and they will get attracted towards coming to th e place. In addition to this companies
must involve all the strategies relating to sanitisation and guidelines relating to COVID 19 in
their social media marketing strategy. This will increase interest of consumers and they will be
stimulated and encouraged to come to the place.
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On the other side Gjerald, Dagsland and Furunes (2021) argued that after pandemic the
hotels and other companies in hospitality industry need to work on improving their online
presence. This can be done by working on the website and try to improve the content of website.
This is necessary as before coming to the place a consumer will check the online website of
hotel. Now if content of website will not be good and attractive then consumer will not go to the
place. Hence, in order to attract consumer after the pandemic it is responsibility of hotel to make
its website simple and attractive. This must also include photos and pictures of their sanitisation
process and all other major requirements in accordance with government guidelines. This will
motivate consumers to come to the hotel and stay there.
Furthermore, Hu and Olivieri (2020) articulated that another major strategy for attracting
consumer after pandemic is to focus more on sales promotion techniques. This is particularly
because of the reason that when hotels will provide different offers and discounts then this will
attract consumer in a large number. These offers can involve different discount schemes, referral
programs, benefits to loyal consumers, various coupons and many other schemes. This will
attract consumers as they are being benefitted by these offers.
In against of this Foroudi, Tabaghdehi and Marvi (2021) criticized that for attracting
consumer hotels must take feedback from them. This is particularly because of the reason that
when the company will take feedback from consumer then they will come to know that where
the company is lacking. This will also outline the views and suggestion of consumer for
improvement within hotel and its strategies. Hence, this will assist hotels in improving their
performance in accordance with requirements of consumer. As a result of this if hotel will make
the changes as per requirement of the consumer then this will increase interest of consumer
within the company.
Theme 3- Various challenges which are being faced by company at time of using strategies to
attract consumers.
Due to pandemic the most suffered industry is the hospitality as there was high consumer
turnover. Even in post pandemic phase the consumers were not ready to go to hotel, restaurant
and other business in hospitality sector. As per the views of Varelas and Apostolopoulos (2020)
major challenge which hotels faced in at time of using consumer attraction strategy is consumer
fearing to go out. The reason underlying this fact is that due to pandemic the consumer has
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developed a fear that if they will go out then they may get infected. Hence, due to this fear they
are not going to any public place and sales of hospitality industry has decreased.
On the other side Hossain and et.al., (2020) argued that not focusing on more online
marketing is the challenge in attracting consumer after pandemic. This is a challenge as when
company is not actively present over internet and different social media platforms then consumer
will not come to know about them. Hence, it is very essential for the hotels to make sure that
they optimally make use of social media and websites. In case if hotel is working over internet
and posting regular post relating to its services after pandemic then it will definitely attract
majority of consumer.
Moreover, in contrast to this Bonfanti, Vigolo and Yfantidou (2021) criticized that fact
that major challenge is the competition present in industry. There are many companies and hotels
which are competition against one another. This also affects in attracting consumers in coming to
hotel as they get confused in which hotel they need to go. All the hotels and other establishment
have faced many losses because of pandemic and they are trying hard to attract consumers. But
as competition is high so this restrict consumer in deciding to which place they need to go.
In addition to this Tiong and et.al., (2021) stated that increase in cost was also a major
challenge which restrict companies in attracting consumer in effective manner. This is pertaining
to the fact that due to COVID 19 cost of hotel has been increased due to investment in
sanitisation and other requirement of health and safety measures. In addition to this cost of
marketing has also been increased for attracting consumers. Now if hotel will use simple
marketing techniques then this will not attract majority of consumers. Thus, more investment
need to be done by hotels in marketing of services among consumers. The major reason
underlying this fact is that if marketing will not be good then it will not grab attention of
consumer and cost of company will not be recovered.
On the contradictory note Pillai and et.al., (2021) articulated that frequent changes in
need and preferences of consumer is also a challenge in attracting consumers. The reason
underlying this fact is that if company is marketing the thing which is not liked by consumer then
this will not stimulate interest of consumers. On the other side if hotel is marketing the thing
which is liked by consumer then this will attract them. Hence, if there will be frequent changes in
need and preferences of consumer and if hotel does not involve it in marketing then this will not
attract consumers.
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Furthermore, Acee-Eke and Ogonu (2020) analysed that another challenges for hotel in
attracting consumer is that all the consumer has different requirements. It is not possible for a
hotel to take into consideration the need and requirement of all type of consumers. Hence, it may
be possible that hotel is taking care of only one type of consumer and is not focusing on other
segments. This may result in resentment in other consumer who are not being focused by hotel.
Thus, they will not be attracted towards the hotel and its services and will not come to the place
again.
Along with this Smart and et.al., (2021) stated that also market is very wide and it is not
possible for hotel to effectively research the whole market. It might be possible that this involve
high efforts and cost in covering market research in effective manner. Furthermore, as the market
is large so there is possibility that some aspect is being left behind and is not researched in proper
and effective manner. Hence, this might not attract consumer to come to the place as it does not
involve all the market areas and need of consumers.
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CHAPTER 3- RESEARCH METHODOLOGY
Research type- Type of research involves the series of steps through which a research can
be completed in successful and effective manner. It is of two types that is qualitative and
quantitative research. Former is type of method which involves conducting research on
basis of data like beliefs, values and non- numeric data (Snyder, 2019). While latter is
related to undertaking facts and figures and numeric information relating to the research
topic. In order to complete research over strategies for attracting consumers after
pandemic use of qualitative research is undertaken. The reason underlying this fact
qualitative method will assist in developing greater insight relating to area of study. It is
important to use qualitative research as this will increase the theoretical knowledge
relating to the strategies of attracting the consumer post COVID 19.
Research approach- Approach of research is defined as various procedure or plan which
are selected in order to complete research in successful manner. Research approach is of
two types that is inductive and deductive. Inductive is the one which is based on
formulation of aims and objectives and complete the research on basis of them only. On
the other side, deductive is the one which involves framing of hypothesis and to test
them. For completing present study scholars has used inductive approach. This is used as
it assists in first framing aim relating to consumer attraction strategies and then
completing the study. This is crucial because of the reason that aim and objective will
provide a clear path for attaining these and make the study successful.
Research philosophy- philosophy is being defined as the beliefs and values which are
underlying the selection of any research method for completion of study. Interpretivism
and positivism are two types of philosophy which are used in completing research in
successful manner. Interpretivism is the one which assist in interpreting elements of study
whereas positivism is the one which is based on factual information. for the successful
completion of research over strategies of attracting consumer interpretivism will be used.
This is particularly because of the reason that this involves integrating human interest
within study and is more suitable with qualitative research (Ørngreen and Levinsen,
2017).
Data collection- for research to be successful the most essential thing is the use of correct
and reliable data. This is pertaining to the fact that is data collected is not good and
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