Strategic MIS for Hilton: Industry Analysis & Improvement Plan

This report explores the application of Management Information Systems (MIS) within the hotel industry, focusing on Hilton Worldwide. It begins by providing a history and background of the hotel industry, highlighting its strengths and weaknesses, and identifying the target customer base with considerations for evolving needs. A competitive analysis using Porter's Five Forces model assesses the threats of new entrants, the bargaining power of suppliers and buyers, the threat of substitute products, and the rivalry among existing competitors. The report also includes survey data indicating the perceived value of MIS in enhancing information management, decision-making, customer feedback, competitive advantage, and monitoring systems within hotel operations. Ultimately, the report suggests that implementing a robust MIS can provide a significant competitive edge for hotel chains like Hilton Worldwide.

Running head: MANAGEMENT INFORMATION SYSTEM
MANAGEMENT INFORMATION SYSTEM IN HOTEL
Name of the Student
Name of the University
Author Note

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History and background
The idea behind hotel industry is to offer a better of accommodations towards the
visitors. This was started in the 1794 after the city hotel started working at the New York
City. Hotels are developed and furnished with luxurious items. There are different types of
hotels such as motels, inns, resorts, lodges, military guest house and many more. The Hilton
hotel is one of the luxurious hotel that aims at providing better stays (Law & Jogaratnam,
2015). The reason behind implementing MIS into the hotel is to ensure that proper working is
done along with the customer. This will ensure that proper information is stored regarding
each customer. The hotel industry has several features that ensures better working of the
system. The Hilton Worldwide provides a better and effective way of managing their
customers. The system developed within the hotel has the ability to manage the operations
properly. The system in hotel industry offers automated operations for housekeeping, front
desk, and for the purpose of Point of sale system. The major strengths related to the hotel
industry is that it ensures that safe abode is provided towards the visitors who are away from
their home. This also ensures that proper contribution is made towards the local economy. In
addition to this, the hotel industry also adds to the high profit margins. Apart from this the
major weakness related to the hotel industry includes the high rates of the hotels and the
unfavourable tax rates.
Target customer
The targeted customer of Hilton Worldwide are the people staying near the New York
City. They also provide accommodations for the foreigners. The main targets are the foreign
people so that they can give best service of the New York City. This will help in earning huge
profits in the market. This is one of the largest hotel in the New York City and provides 1,311
rooms for accommodation (Laudon & Laudon, 2015). There are total 28 smoke free

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apartments, 24 hour front desk that helps the visitors for any type of query at any time. Every
room is equipped with refrigerator, microwave, and offers free laundry facility. The
customers’ needs to be arranged properly so that they can have better stay at the hotel. The
Hilton worldwide provides the luxurious way of accommodation.
Competition and Five forces model analysis
Hilton worldwide is one of the largest lodging sector in the New York City. Thus
there are several competitors in the market. The major competitors are New York Marriott
Marquis, Grand Hyatt New York, and Hotel Pennsylvania (Christou, 2018). The analysis of
Hilton based on porters five forces includes determining the threats of new entrants.
The new entrant’s offers better lodging facility with innovative idea and this creates
an immense pressure on the organization (Noe et al., 2017). Thus it is important to ensure
better and new products and services. New products will bring more customers and will add
to the profit margins. This ensures better development of the threats towards the new entrants.
This ensures that lower fixed cost per unit.
Secondly the bargaining power of suppliers is another factor. There are different
suppliers for different lodging industry. Thus suppliers becomes dominant and has the
capability of decreasing the margins for Hilton. This has the capability of decreasing the
overall profitability for the organization. Thus it is important to include effective supply chain
with multiple suppliers.
Third comes the bargaining power of buyers. It is important to understand the demand
of buyers and offer them with suitable discount (Sigala, 2016). This will help them to hold on
to the customers. Otherwise, customers will shift to the lodging industry, which are offering
more benefits. Thus, it is important to launch new products with better innovations. The new

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products will help in reducing the defection of existing customers. The products will help in
rapid growth of the system.
The fourth factor is the threat of substitute products. As in the market the number of
lodging industry is increasing thus their always lies a chance that the new product will affect
the working of the Hilton organization (Chaulagai et al., 2015). Thus, it is important for the
organization to be service oriented so that they can eliminate the threats from substitute
products. This is important to determine the needs to customer rather than focusing on the
buying habit of the customers. This also includes proper switching cost of the customers.
The fifth force is the rivalry among existing competitors. Several other hotels offer
similar facility like Hilton. Thus, it becomes important to build a sustainable market for better
differentiation. Hilton Worldwide Holdings Inc. operates in a very competitive Lodging
industry. This competition does take toll on the overall long term profitability of the
organization. Thus collaboration with the competitors for increasing the market size instead
of competing for small market.

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Survey and results
From the above survey, it can be stated that maximum number of people associated
with the hotel thinks that MIS offers a better way of managing the information. Thus, it is
important to implement MIS within the hotel industry. The information thus offers a better
way of organizing the information within the organization.

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From the above chart, it can be stated that MIS offers an effective way of decision-
making. Thus, it will enhance the performance of the hotel.
More than half of the people thinks that it is important to have customer feedback
system as it enhances the working of the system. Around 20% of the total people disagrees
about the need of customer feedback. As maximum person thinks that there is a need of
feedback system within the hotel.
The implementation of management information system allows better way of
organizing the tasks taking place within the hotel. After analysing the data it can be stated

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that the information system will offer a better way of managing the competitors. In addition
to this, it will also provide some competitive advantage towards the organization.
As per the survey, it can be stated that there is a high need of monitoring system.
Around 70% of people thinks that there is a high need for monitoring system. Only 10% of
people disagrees with the concept of monitoring system.

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References
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Sigala, M. (2016). Integrating customer relationship management in hotel operations:
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