Strategic Planning: Factors, Strategies, and Metrics for Hospitality

This report provides a comprehensive analysis of strategic planning within the hospitality industry, focusing on Hilton Hotels as a case study. It critically examines the key factors influencing strategy implementation, including organizational design, structure, available resources, and organizational culture, further exploring external factors through PESTLE analysis (Political, Economic, Social, Technological, Legal, and Environmental). The report researches creative business strategies, such as marketing, product development, benchmarking, and guest reward programs, to enhance competitiveness. Finally, it analyzes and evaluates performance metrics, including critical success factors, key performance indicators (KPIs), and the balanced scorecard, to measure and improve the Hilton Hotel's performance, increase staff productivity, and attain sales objectives. This document is available on Desklib, a platform offering a wealth of study resources for students.

STRATEGIC PLANNING
FOR THE HOSPITALITY
INDUSTRY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Critically analysing the most appropriate factors for implementing a chosen strategy...........3
2. Researching about creative business strategies and selecting future strategy for Hotel
industry to be competitive in the hospitality industry..................................................................5
3. Analysing and evaluating the different performance metrics (critical success factors, key
performance indicators and the balance scorecard for the hospitality industry).........................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry consumers of various filed which provides variety of services
including food and beverages, planning of various events, theme parks, dinning services, bars,
amusement parks, entertainment, meetings, recreation and other travel and tourisms services.
This industry is important for the consumers as it provides the better experience for travel and
tourism which encourages the customers reviews by providing better satisfying services. The
strategic planning involves the use of various tools which helps building proper strategies after
evaluating the opportunity and challenges faced by the hotel industry. The 'Hilton hotels' and
resorts which is the multinational hospitality industry providing wide services related to travel
and tourism industry. This report will provide details about analysing the appropriate factors for
implementing the strategy in Hilton. Also, researching about the creative business and future
strategies for Hilton which provide competitiveness for this industry. Lastly, analysing ans
evaluating the different performance metrics which are the success factors, key performance
factors and the balance scorecard for the Hilton hotel.
MAIN BODY
1. Critically analysing the most appropriate factors for implementing a chosen strategy
The Hilton hotels is the hospitality company leading globally across various countries.
The company owned with the worldwide chain of luxury premium hotels. The company is
engaged with the various hotel management services ad licencing and franchising its brands in
different countries (Aubry and Lavoie-Tremblay, 2018). The largest hotel Hilton brand is mainly
known for providing the leisure services at various locations mainly at city centres, nearby
airports and at the major popular destination around the world. The appropriate factors which
will impact the implementation of strategies in the Hilton industry includes:
The organizational design: The design of the Hilton hotel will affect the implementation
of various futuristic and effective strategies as the organizational design will impact the
strategies planning. As the design of the organization is regarded as the systematic approach
which integrate the various elements, personnels, procedures for meeting the objectives of
business. (D’Souza, Apaolaza, Hartmann and Brouwer, 2021). The following factors will be
considered as it affect the strategies are boundaries, division, flow of information from

department to another as well as the demand generated by forecasting the customers for the
travel and tourism industry will also affect the implementation of strategy in the Hilton company.
Structure of organization: the structure the Hilton company will affect the
implementation process. As the structure helps in flowing the information from one to other
department processing. It Also allocates various resources to operational department by
assigning roles and duties (Friesl, Stensaker and Colman, 2021). The company following
divisional structure operating with different departments will arise the compartmentalise,
sometimes increases the cost, inefficiencies and strategic focus for the company.
Available Resources: The internal resources in Hilton hotel consisting of the human
resources, financial resources and technological resources will have significant influence of
implementing various strategies in the hotel industry. Mainly the resources includes financial pay
for the strategic planning, including existing cash balances for improving the internal systems
retaing to the services provided in the Hilton hotel.
Organizational Culture: organizational Culture will reflect the staff personnel working
in the hospitality organization. As it helps in setting the objectives, managing the resource and
the performance of various tasks of the hospitality industry. The hotel culture will affect the
goals, objectives the shares values and beliefs staffs personnels working in the Hilton hotels. The
strong culture environment will provide the better working surroundings in the Hilton company
(Kakarougkas and Stavrinoudis, 2021). As by working with the better culture will align the goals
for improving the productivity for achieving the mission being set for the Hilton company. As
the company being adopting the diverse culture for increasing the presence of the brand in the
local communities with various programs will affect the strategy implementation process
internally for the Hilton hotel.
Furthermore, there are more factors which will be affecting the strategy implementation
in the hotel industry : as these factors will helps in analysing external environment and provides
the in-depth knowledge about the factors affecting the Hilton hotel (Lubis and Hanum, 2020).
The pestle analysis of the company will help in assessing the potential market for the hotel and
assist in finding out the negative forces which impacts the strategic panning to implementation
process.
Political factors : The political stability is the key for success among various tourism and travel
industries. The political factors will influence both the visitors and the travellers to visit the

particular nation and the hotels. Also, various implication proposed by government will affect
the revenue of the Hilton hotel. Also, the corruption level, civil interest, war, tax policy, trade
control, tariffs and other regulation will impact the process of strategy implementation internally
in Hilton hotel.
Economic factors: The economic factors including the latest trends, various policies relating to
monetary, fiscal price fluctuation for various products of the hotel industry, also the givermnet
has decreased the various travel budgets and spendings, credit availability for production and
interest rates. Also, the Hilton is dependent on transportation industry. These all factors will
affect the Hilton hotel strategies implementation process.
Social factors: various social factors will impact the Hilton industry including the lifestyles of
consumers, attitude towards quality of products, education level, religion, beliefs, growth rate.
These all factors will be analysed by the Hilton hotel before implementing the future competitive
strategy which results in growth.
Technological factors: The various technological factors consisting of the pending on the
research and development department, communicative infrastructures using various tech phones
for communicating with different departments personnels, cyber attacks, internet infrastructure,
negative media exposure are all the factors which must analysed before implementing the new
strategy for the Hilton hotel.
Legal factors: The legal factors including changes in jurisdiction affects the dining services, also
the immigration regulations and the consumer protection laws, health and safety food hygienic
laws will impact the Hilton hotel in direct and indirect ways in implementing internal strategy.
Environmental factors: These factors will impact the dinning services facilities as the law
relating to pollution will create the pollution also disturbs the sustainability related to
environment. Furthermore, generating carbon emissions, using recyclable products, air and water
pollution, and attitude supporting renewable energy. So the company will review these factor for
implementing new strategy in Hilton hotel.
2. Researching about creative business strategies and selecting future strategy for Hotel industry
to be competitive in the hospitality industry
Business strategies is being defined as the plans and procedures, also the actions being
adopted by hotel industry for reaching goals of the company. The creative business strategies

consist of steps which helps the business in attaining the long term goals and grows enterprises to
great extent. There are various levels of strategies consisting of the corporate strategies, business
unit strategy and operational level strategy. The business strategies must be designed with
keeping in mind the mission, vision, goals and objectives of the Hilton company.
The mission statement of the Hilton company is to be prominent international hospitality
company -the first choice of the guests, owners and team members. The vision statement of
Hilton hotel is to fill the earth with the warmth and bet hospitality by delivering the exceptional
and experiences every hotel, guest, anytime, every-time. Goals and objectives of company is to
make the profit by offering different services of travelling, tourism and expanding business for
maximizing sales and guests. For growing the business successfully.The creative business
strategies may include :
Marketing strategy and product development strategy The Hilton hotel must develop the
new product strategy by assessing the latest market demands and trends which will help in
implementing new market strategies as well as benchmarking strategies.
Benchmarking strategies : The company must develop the new benchmarking strategies which
helps in comparing the products line, marketing strategies. For developing this strategy the
company needs to carry out the research for establishing this concept and evaluate the other
competitive strategy which is being used by the rival companies (Kusyeni and et.al., 2021). After
researching the new strategies will e implemented in the best ways possible an integration of the
strategies will be done with the other different processes. These strategies will help in
overcoming the gap between the company and the other popular brands.
Creative sales strategy: The destination marketing strategies and the cross promotional strategy
must be adopted by the company which will helps in promoting the brand through various
marketing campaigns, also the cross promotional strategy will help in creating better concert
events, conferences and many more in the Hilton hotel.
Guest reward strategies: The guest staying strategy must be developed by the hotel which
provides the reward to the guest which are frequently staying in the hotel and purchasing and
referring to the various relatives and friends and family members which will helps in generating
the repetitive bookings in the hotel industry and increases the profit for the company.
Product differentiation strategy : The management of the hotel must develop the
differentiation strategy which will helps in distinguish the services and products from the rivals

and competitors. By adopting these the company aims for establishing as the oe of the top brands
which will offer the luxury services (Meliarini, Sudiarta and Darlina, 2021). These will help in
improving the knowledge for the customers about the product.
Various communication strategies: The management of the company must adopt the open,
inclusive and the multinational communication strategies. As with the open communication
enables the staff to communicated free which helps in giving better feedbacks and provides the
surrounding of building trust. Also, the multichannel communication will help in delivering the
engages in multiple times and ways which helps the brand in taking feedbacks form various
operations of the hotel company which is established worldwide.
By adopting these all strategies will help in creating competitive advantage and boost better sales
in the future by adopting these all strategies.
3. Analysing and evaluating the different performance metrics (critical success factors, key
performance indicators and the balance scorecard for the hospitality industry).
The performance metrics are the data which provide the figures, ability and actions of the
organization. This system is being used to track various processes within the organization. These
metrics are used for evaluating the performance of the hotel industry and helps in establishing
and assessing in the goals which increases staff productivity and attains sales objectives of the
Hilton organization. These metrics allows the owner for tracking the business performance
which helps in strengthening customer service, increase sales services and profitability of Hilton
hotel (Zahid and Vagif, 2020). The main metrics being used by the Hilton hotel is Kpi, ADR,
and RevPAR. For measuring the performance of the hotel industry.
The critical success factors are the elements which helps the company in achieving the
desired objectives by maintaining the current and future performance of Hilton hotel. the critical
success factors helps the company achieving the success in the hospitality industry. These factors
include the Hilton hotel must prefer the price packages for the guest and provides discounted
package facilities to the customers, as it will encourage the guest for visiting frequently at Hilton
hotel. Also, the hotel must provide the quality and hygienic services for instance by focusing on
the standardized services with proper care (Tawse and Tabesh, 2021). Further more the Hilton
hotel must install the latest technological infrastructure which will helps in adopting various new
and latest way of promotion and captures the emerging market of the hospitality industry. The
company also must address the financial, safety and security programs requirements for

maintaining the safer side of guests. Which will help the Hilton hotel to be in the most successful
and profitable earning hotel globally. Furthermore, it is also essential for the business for being
competitive and specific with the cost. The Hilton hotel must explore the new and latest market
trends for positioning the better services and placing the better position of the hotel around the
world. The Hilton hotel must concentrate on the various opportunities for developing the
business which will help them in retaining better customers which will increase the profit and
sales.
Key performance indicators are those which helps industries in strategic planning, financial
obligations and operational achievements for the business. These indicators help the company in
measuring the success by setting targets, objectives. By using the Kpi the Hilton manger ensures
in accomplishing the objectives, as the employees and staff of Hilton hotel generally receives
feedback every week and the employees and staff are given recognition for the impact and the
accomplishments. The positive and the reinforcement helps in meeting the goals of the company.
The main Key performance indicators used by the Hilton hotel are the ADR, REVPAR,
and the occupancy rate of the hotel , The ADR (average daily rate) helps the hotel in measuring
the average rate per occupied room. Where it helps the company in examining the average
amount of revenue which is being collected for all the rooms on daily basis. This metric will
exclude the unoccupied rooms in the Hilton hotel. This key performance will help in measuring
the financial performance of the hotel (Critical success factors and industry strategy for Hilton
Hotel, 2021). It also helps in forecasting and monitoring the prices and the promotional
marketing strategies which assist the management for planning and working with the flexible
prices which helps in attracting customers and guests according to the different seasons.
The Rev-par (revenue available per room) is being used y the Hilton hotel which
describes the revenue available per room. This is generally assists in the operations of the
management which defines the ability to fill the available rooms at average rate. This helps in
determining the revenue generated per room. High rev-par indicates the high occupied rooms and
the low rev-par shows the low occupancy of the rooms. This generally aids in measuring the
overall performance by determining the occupancy rooms (Essential hotel sales strategies to
increase occupancy and revenue, 2022). So for the future, goal of the Hilton company is to
enable the users and the communities to manage the property and the guests by tracking and

discovering the standardize the reports. This helps in driving the strategic decision-making for
the company.
The balance score card helps in implementing and managing various strategies at all the
level of the enterprise. Further more the scorecard used by the Hilton hotel has helped in
achieving the high profit margin operations for the hotel comparatively of the competitors which
has increase the market share of the industries. The hotel internal customer loyalty and the brand
measuring performance has been improved after using the balance score card in the industry.
CONCLUSION
From the above report it can be concluded that the Hilton hotel which is leading its
business operation multinationally in the hospitality industry globally. The management of hotel
is committed for improving the business operations by offering the various quality services and
improving its market positions for leading success. The company will introduce various effective
business strategies for leading business to the competitive and profitability which helps in
achieving success. The benchmarking strategy, various new reward strategies must be adopted
for motivating the staff personnels to adapt the changes occurring in the organization. For the
marketing and promotion strategies the brand management strategies can be implemented for
increasing the company product awareness and services in the competitive market. Also, the
human resource department of the hotel must involve the staff personnels in the planning an
implementation of the proposed strategies.

REFERENCES
Books and Journals
Aubry, M. and Lavoie-Tremblay, M., 2018. Rethinking organizational design for managing
multiple projects. International Journal of Project Management.36(1). pp.12-26.
D’Souza, C., Apaolaza, V., Hartmann, P. and Brouwer, A. R., 2021. Marketing for
sustainability: Travellers’ intentions to stay in green hotels. Journal of Vacation
Marketing.27(2). pp.187-202.
Friesl, M., Stensaker, I. and Colman, H.L., 2021. Strategy implementation: Taking stock and
moving forward. Long Range Planning.54(4). p.102064.
Kakarougkas, C. and Stavrinoudis, T., 2021. Examining the Interrelationships Among Reward
Systems, Organizational Climate, and Cultural Changes in the Hospitality
Industry. Tourism Review International.25(1). pp.31-46.
Kusyeni, R and et.al., 2021. Business Strategies and Utilization of Tax Insentive Policies During
the Covid-19 Pandemic and Implementation of Restrictions for Community Activities
(PPKM). Budapest International Research and Critics Institute (BIRCI-Journal):
Humanities and Social Sciences.4(3). pp.6309-6316.
Lubis, F. R. and Hanum, F., 2020, December. Organizational culture. In 2nd Yogyakarta
international conference on educational management/administration and pedagogy
(YICEMAP 2019). Atlantis Press.(pp. 88-91).
Meliarini, P. R., Sudiarta, M. and Darlina, L., 2021. Implementation of upselling as a strategy in
increasing room sales by guest relation host at Alila Seminyak Hotel. Journal of Applied
Sciences in Travel and Hospitality.4(1). pp.9-17.
Tawse, A. and Tabesh, P., 2021. Strategy implementation: A review and an introductory
framework. European Management Journal.39(1). pp.22-33.
Zahid, N. A. and Vagif, L. M., 2020. ROLE OF MANAGEMENT ACCOUNTING IN THE
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Online
Critical success factors and industry strategy for Hilton Hotel. 2021. [Online]. Available
through:<https://www.edudorm.com/our-services/15-samples/giveaways/marketing/
349-critical-success-factors-and-industry-strategy-for-hilton-hotel>
Essential hotel sales strategies to increase occupancy and revenue. 2022.[Online]. Available
through:<https://www.siteminder.com/r/hotel-distribution/hotel-revenue-management/
strategies-increase-hotel-room-sales/>