Hilton Hotels’ operations managementpresented by:

Margaux- Jade26.11.13

Hilton Hotel

• Established in 1919 by Conrad N. Hilton• Started with 40 rooms• 10 brands with 4000 hotels in 91 countries• Leader in hospitality industry• Operating under 24 time zones• “Fill the earth with light and warmth of

hospitality”

DESIGN

• Luxury hotel standard• Luxurious and confortable-like-home

decoration• Package of Sweet DreamsA® as characteristic

QUALITY MANAGEMENT

• ISO 9001 and ISO 14001• Customer services concerns• LightStay system applying

PROCESS DESIGN

• Create Hhnors Points Program

• Booking based on category and customer’s

interest

• Organize online recruitment

• Support with online training course

LOCATION STRATEGY

• Central of major cities• Airport and vacation destinations nearby• Target to business and leisure purpose

travelers

LAYOUT STRATEGY

• Including lobby, guest rooms and convention

• Lobby:

Setting space for information checking

Laptop plug in set up with WiFi

Café and tea served areas

HUMAN RESOURCE

• The Hilton WorldWide University • High skill improvement • Ability to work individually required• Create diversified workplace

SUPPLY CHAIN MANAGEMENT

• Devoted for long-term relationship with

suppliers

• Create Supplier Diversity Program

• Provide education course for suppliers

INVENTORY MANAGEMENT

• Right product-right time- right price

• Right place – right temperature

SCHEDULING

• Add 10,000+ hotel rooms

• Offer 50,000+ jobs for 4 years (2008-2011)

• Establish long lasting partnership with supplier

MAINTENANCE

• Sustainability

• Reducing waste and carbon

• Decrease using of electric, water, etc.

Operations strategy   

RESPONSE STRATEGY – ORDER WINNER IN FLEXIBILITY & QUALITY 

 Suppliers’ goal 

They are able to adapt themselves, their productions and deliveries to what Hilton’s need and order. It is a daily communication the key tool to quickly respond to requirements. In such a way, stock outs are minimized.

 Process characteristics 

HHonors invest in excess capacity and flexible processes. That is why they want to forecast tomorrow’s trends: they already invest in lobbies’ restructuring and staffing.Moreover, these investments do not cost directly to Hilton but to hotels’ owners (due to franchises’ management systems).

 Inventory Management 

As said before, the brand uses two ways of stock, to ensure supply.

 Revenue management

It is the process of making forecasting and computerizing the gross margin profit. In detail, yield management seems to be an identification of what the demand trends are. Hilton has a team with talents in forecast validation and demand generation.All of team members are trained carefully in selling rooms and dealing with guest at the optimal rate. This yiels also includes guests’ history and thus loyalty. We also can notice that this revenue policy is possible because of the HHonors’ group’s structure. The more brands the company has, the likeliest it is to match offer & demand, optimize rates and catch tourists or businessmen.

Performance in services’ design

http://www.youtube.com/watch?feature=player_embedded&v=5XpnX50B4Ao

• Lobby restructuring

• Technology use

Performance in quality control

Being a synonym of “Hotels” & “Vacations”

Quality control passes through a weak employees’ turnover

That is why, HHonors developed high HR strategy/job design

Rewards Loyal Program, named HHonors Points.

“Hilton Worldwide, • Best Company for Hourly Workers, Working Mother Magazine• Ranked First in the Top 50 Happiest Companies, Career Bliss• Top 100 Companies to Work For, Savoy Magazine• International Organization for Standardizations (ISO) 9001 Certification for Quality Management Systems”

Recommendations to maintain this reputation

• Locations

• Staffing

• Services’ design

• Quality control

• Maintenance

THANKS