hilton customer experience case study

Case Study: How Hilton uses social listening to win customers

• Brand monitoring
• Social Media Monitoring

In this social listening case study, we explore how Hilton uses social listening to provide a perfect customer experience, make killer marketing campaigns and build relationships.

Hilton Case Study

Social customer support, social marketing insights.

Hilton is one of the most famous hospitality brands in the world. Hilton Worldwide owns twelve portfolio brands that include over 4,100 hotels and over 680,000 rooms in 91 countries. With that many customers scattered around the world, Hilton is challenged with providing the most convenient channels of communication.

In this social media case study, I wanted to explore how Hilton uses social listening. Unsurprisingly, more and more Hilton guests are heading to social media to voice their concerns, require customer support, ask for recommendations, or give a praise to the staff. Hilton had to find a way to follow their customers and decided to build a social listening strategy to always be on alert and respond whenever, wherever to whomever.

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On average, Hilton Hotels receives about 1.5 thousand Twitter mentions every day. Most of them are related to special offers promoted by tourist companies, advertising, news, and guests sharing pictures and tagging the location. As you see, most of these mentions do not require an immediate response.

The Positive Sentiment appears to be more common among social media users than Negative when talking about Hilton, which is good news for them!

And the most popular platform of discussion for them is, unsurprisingly, Twitter.

So let’s see if Hilton takes these insights into account when building its social media strategy.

Oftentimes people post about their positive experience in Hilton: they show their cosy room or a beautiful view, they thank the staff for their services publically or simply say how happy they are with their trip. This kind of mentions doesn’t require a response per se, but acknowledging positive experiences of your customers makes a brand seem more humane, genuine, and caring. Moreover, if your customer has some kind of social media following, chances are your response won’t go unnoticed. That’s why it’s a good idea to acknowledge your customers’ positive mentions. And Hilton does it perfectly!

But it’s not all roses and peaches: as with any big brand, there are occasional complaints. And in hospitality, complaints from clients are extremely important. You can deal with a broken toaster later, but if your living space is not in a satisfactory state, it becomes your top priority. That’s why time is extremely important here.

Messages like this one are not just a customer service issue — they can potentially damage the reputation of the brand. That’s why it’s extremely important to respond to them as soon as possible. The disappointed guests need an immediate answer — and if they don’t get one, they will be even harsher with their critique. The average response time for a brand to reply on social media is 10 hours, while the average user will only wait 4 hours.

On average, Hilton Hotels answers 3.3 tweets in one hour, and the average time between a tweet and a response equals 37.3 minutes (after analyzing 872 tweets during one month).

That’s the power of social listening. It enables Hilton’s social media team to react and engage in real time, depending only on manpower. Hilton made a decision to combine their social customer support with call centre and in-app support through Expion tool to make their customer service experience perfect.  

“We took a different approach than a lot of companies. We want to help our guests no matter how they come to us. No matter how they want help — in the app, at the front desk, or on Twitter. We are there where they want us,” Vanessa Sain-Dieguez, ‎Social Business Lead & Strategist for Hilton Worldwide notes.

Hilton’s guest service center is housed within their call center. Their social team monitors all Twitter mentions around the clock and aims to engage with guests within 30 minutes of a tweet being sent.

Hilton monitors all its brands and hotel level Twitter accounts and looks for what is being said and when to engage. Even if a guest tweets about Hilton, but doesn’t identify them by their handle, Hilton will pick up on the tweet and respond. Monitoring untagged mentions is extremely important. For example, here’s a comparison of the number of tagged and untagged mentions.

“We want to be available to the customer wherever they are. It just comes down to customer preference, whether they want to tweet our main account or one of our hotels, or don’t @ us at all — and monitoring it all,” remarks Sain-Dieguez.

From the very first response, Hilton aims to resolve all issues within 12 hours, which is an incredibly robust resolution timeframe given that Hilton’s customer service has to communicate with hotels around the globe.

“We recently had a guest who arrived in her hotel room and tweeted a picture of her closet that was not a standard size. Her dress was pooling on the ground, and she wanted it to remain wrinkle free for her meeting the following day. We saw that tweet come through, and within an hour had her in a new room with a full size closet,” Sain-Dieguez explains.

But it’s not just about one time reaction. Hilton uses social listening across different platforms to gather valuable insights for their overall brand strategy. They ensure that guest experience gets turned into actionable insight. All guest comments become part of their reporting. That feedback is then bubbled up to the brands who use it in their strategic planning.

The feedback Hilton gets from social media not only informs their managing strategy, but also enhances their marketing campaigns. For example, while I was working on this article, Hilton launched a new marketing campaign titled Expect Better which gathered a lot of buzz for the brand. But the mentions of the campaign don’t always include the official hashtag #ExpectBetter or Hilton’s twitter handle. By monitoring words associated with the campaign, for example, such combination as Hilton + Kendrick, their social media marketing team is able to observe and analyze conversations around the campaign and evaluate its success.

Hilton Suggests

Hilton Suggest is one of the favourite subjects for a social listening case study among marketers. Why? Because it's a unique ideas that successfully uses social listening in a creative way.

For Hilton, social listening is not just a helping hand to inform their marketing strategy, it is the core and essence of the social media marketing strategy. Thanks to social listening, they were able to create @HiltonSuggests.

Hilton Suggest campaign goes beyond reacting to someone else’s social posts and takes initiative. The main idea behind the campaign is to aid people without any ulterior motives to make a sale. Many marketing specialists say that brands today find themselves in the age of sincerity and authenticity. Millennials and generation Z who grew up with the Internet are no longer convinced by straightforward in-your-face advertising, they want to engage and build relationships. That’s exactly what Hilton Suggests does. But what is it exactly?

Hilton Suggests is a helpful concierge, available for everyone travelling to or around more than 115 cities worldwide. Launched in 2009, the Hilton Worldwide initiative is a collection of Hilton employees who volunteer their best local advice with the aim of surprising and delighting travelers on Twitter.

The unique service isn’t based on customers tweeting to @HiltonSuggests and asking for recommendations. Instead, the inquiries are found strictly through social listening for anyone who’s planning a trip to one of the participating cities, and not just Hilton guests. Based on thorough research powered by social listening, the team created specific listening rules to find and reach travelers who might never expect to hear from Hilton.

Sabrina Callahan, director of social media planning and integration at Hilton says that after years of social listening, Hilton developed a “travel excitement” layer of keywords in early 2017 based on past tweets and team member feedback. With that research, Hilton compiled “a rather lengthy list of words and phrases that people use while sharing excitement and anticipation for an upcoming trip.”

The unique quality behind Hilton Suggest is that the people writing recommendations are not a specially formed social media team — they are regular Hilton employees (who passed extensive training, of course) who are excited to share their love for the local attractions with others. And that adds to the authenticity of the program - you don’t simply google “top places to see” in Vienna, you get a personal touch and recommendations tailored to your interests.

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By making the first step and reaching out, Hilton is able to promote their brand to people who weren’t aware of it before. Callahan says, “Sometimes travelers will take photos and tag us to say thanks for the great recommendation, and that is a huge win.” Maybe next time a person will remember the hotel that helped them to experience their destination in the best way possible and will choose to stay there.

Hilton proves that social listening can help us to improve our routine activities but also create something new, which would never happen without the power of social media monitoring. What can be learned from this social listening case study?

Don’t ignore your customers. If you see that they are choosing social media as a channel for communication ( and they are ), you should give them the way to reach you.

Let social data help you. Social listening isn’t a one-time deal - the insights you get from social media can affect your company's strategy and marketing decisions.

Use social listening creatively. Remember, that the whole point of social media is engagement, and social listening can give you opportunities to engage. Don’t neglect them.

What about you? What did you learn from this social listening case study? Let’s discuss it in the comments!

Content Marketer at Awario 

When I'm not wasting my time on social media, I'm writing about them. My topics of interest are the effects of social media on our communication and the benefit it brings to marketing specialists. My motto is that you can never stop learning about social media marketing just as there can never be too many puppy gifs in a blog post.

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Hilton Hotel Marketing Strategy 2024: A Case Study

In today’s competitive hotel industry, effective marketing strategies are crucial for brands to stand out and attract customers. Hilton Hotels, a globally recognized and innovative hotel chain, understands the importance of a well-crafted marketing strategy to maintain its position as a leading brand. In this case study, we will explore Hilton’s marketing strategy and how it utilizes various tactics to enhance brand visibility, attract new customers, and evaluate its performance in the dynamic hospitality market.

Key Takeaways:

• Hilton Hotels employs a comprehensive marketing strategy to boost brand visibility and attract new customers in the competitive hotel industry.
• Digital marketing plays a crucial role in Hilton’s overall marketing efforts , allowing the brand to leverage online platforms and reach a wider audience.
• The segmentation of the hotel market allows Hilton to tailor its marketing initiatives to specific customer segments and deliver personalized experiences.
• Hilton’s marketing campaigns and promotions are designed to create excitement and engage customers, helping to drive bookings and revenue.
• Evaluating the performance of its marketing strategy allows Hilton to identify areas for improvement and ensure continuous growth in the industry.

Hilton Hotels Overview

Hilton Hotels is a multinational hospitality firm known for its wide range of hotel brands and exceptional customer experience. With over 4,400 hotels worldwide, Hilton is a leading name in the industry, offering hotels, resorts, timeshares, and cruises. Some of the prominent hotel brands under the Hilton umbrella include Hilton Hotels & Resorts and Waldorf Astoria Hotels & Resorts.

Recognizing the importance of environmental sustainability, Hilton has implemented several initiatives to minimize its environmental impact. One such initiative is the Travel with Purpose program, which focuses on reducing waste, conserving resources, and investing in local communities. Hilton leverages digital marketing tools and technology to enhance customer interactions and create engaging experiences for its guests. The company also offers the Hilton Honors loyalty program, rewarding guests and fostering brand loyalty.

Key Highlights:

• Operates over 4,400 hotels worldwide
• Offers a diverse range of hotel brands
• Committed to environmental sustainability with the Travel with Purpose program
• Utilizes digital marketing tools and technology for enhanced customer experiences
• Hilton Honors loyalty program rewards guests and strengthens brand recognition

Hilton Hotel Connection to Business Plan

Hilton Hotels is driven by a mission to deliver a satisfying experience to each guest and team member, while fostering a culture of hospitality. The company places great emphasis on creating a welcoming environment that ensures guests feel valued and appreciated throughout their stay. Hilton Hotels strives to offer top-notch facilities, ensuring that they are well-maintained to provide optimal comfort and convenience for all guests.

In addition to prioritizing guest satisfaction, Hilton Hotels also places a strong emphasis on employee satisfaction. The company recognizes that happy and motivated employees are essential in delivering exceptional hospitality experiences. Hilton Hotels strives to provide ample opportunities for growth and development, fostering a work environment that encourages employee engagement and satisfaction.

Another key focus area for Hilton Hotels is sustainability. The company acknowledges its responsibility to minimize its environmental impact and is committed to implementing sustainable practices. Hilton Hotels aims to reduce energy consumption, optimize water usage, and minimize waste generation. By prioritizing sustainability, Hilton Hotels aligns its business strategy with global efforts to combat climate change and promote responsible environmental stewardship.

Overall, Hilton Hotels’ business strategy revolves around providing world-class hospitality services while upholding its mission, optimizing the guest experience, fostering employee satisfaction, and prioritizing sustainability. By integrating these core elements, Hilton Hotels aims to maintain its position as a leading brand in the hospitality industry.

Macro-level Analysis of Hilton Hotels

Hilton Hotels operates within a macro-environment where it is influenced by various economic, political, technological, and social factors. Understanding these factors is crucial for developing effective strategies and staying ahead in the competitive hospitality industry.

Economic Dynamics: The demand for hotel rooms is closely tied to the overall state of the economy. During periods of economic growth, travel and tourism flourish, leading to increased demand for accommodations. Conversely, economic downturns can result in decreased travel and lower hotel occupancy rates. Hilton must closely monitor economic trends and adapt its pricing and marketing strategies accordingly.

Political Developments: Political decisions and policies can have a significant impact on the hospitality industry. Regulatory changes, taxation policies, and international relations can influence travel patterns, tourism, and hotel operations. Hilton must stay informed about political developments at local, national, and international levels to remain agile and respond effectively to potential challenges.

Technological Advancements: Technology plays a vital role in shaping the hotel industry. The rise of online reservations, mobile apps, and contactless check-ins has transformed the way guests interact with hotels. Hilton must stay at the forefront of technological advancements and invest in innovations that enhance the guest experience, streamline operations, and drive customer loyalty.

Social Trends: Social trends, such as a growing focus on sustainability and changing traveler behavior, have a profound impact on the hospitality industry. Guests are increasingly seeking eco-friendly accommodations and personalized experiences. Hilton can capitalize on these trends by incorporating sustainable practices, offering unique experiences, and engaging with customers through social platforms.

Competitive Environment: Hilton operates in a highly competitive environment, with rivals like Marriott and Hyatt vying for market share. It is crucial for Hilton to analyze the strengths and weaknesses of its competitors, understand their marketing strategies, and identify opportunities for differentiation. By consistently monitoring the competitive landscape, Hilton can position itself as a leader in the market.

Competitive Analysis of Hilton Hotels

Hilton Hotels operates in a competitive market with notable rivals such as Marriott, Starwood Hotels, and Hyatt Hotels. Each of these brands has its own unique offerings and features, making them significant players in the industry.

Marriott: Marriott is a prominent competitor for Hilton Hotels, particularly in the business travel segment. The brand has an extensive global presence and a wide range of services and facilities tailored to meet the needs of business travelers.

Starwood Hotels: Starwood Hotels is known for its luxurious suites and villas, catering to customers looking for a more upscale experience. The brand offers a variety of premium amenities and personalized services to enhance the guest experience.

Hyatt Hotels: Hyatt Hotels focuses on providing upmarket facilities and services to its guests. The brand has a strong online presence and offers a wide range of amenities, ensuring that customers have a comfortable and enjoyable stay.

Despite the strong competition, Hilton Hotels can differentiate itself from its rivals through effective marketing strategies. By offering unique and innovative experiences to its guests while maintaining the brand’s core values, Hilton can strengthen its position in the market and attract a loyal customer base.

Hilton’s Use of Social Listening in Marketing

Hilton Hotels understands the importance of social listening in today’s digital age. Through the use of advanced technology and data analysis, Hilton leverages social media platforms to provide excellent customer support, monitor brand mentions, and engage with customers in real-time.

On a daily basis, Hilton receives thousands of Twitter mentions, demonstrating the significant impact of social media in shaping brand perception. These mentions cover a wide range of topics, including special offers, promotions, and positive experiences shared by satisfied guests.

Hilton recognizes the power of positive sentiment and actively responds to these mentions, reinforcing its reputation and enhancing brand image. By acknowledging and appreciating positive feedback, Hilton builds stronger relationships with customers, fostering loyalty and advocacy.

However, Hilton also understands that negative sentiment can arise from time to time. In these instances, Hilton’s social media team responds promptly to complaints and negative feedback, demonstrating its commitment to resolving issues and protecting the brand’s reputation.

With social listening, Hilton aims to maintain a rapid response time of within 30 minutes for customer inquiries or concerns voiced on social media platforms. This quick response allows Hilton to address customer needs promptly, ensuring a positive customer experience.

The social media team at Hilton strives to resolve any issues within 12 hours, showcasing their dedication to customer satisfaction. By efficiently handling customer concerns, Hilton upholds its commitment to delivering exceptional service and establishing itself as a customer-centric brand.

Through social listening, Hilton gains valuable insights into customer preferences, interests, and expectations. This data drives the development of more targeted and impactful marketing campaigns, connecting with customers on a deeper level.

Benefits of Hilton’s Social Listening Strategy

The use of social listening provides Hilton with numerous advantages:

• Enhanced Customer Support: Hilton can promptly respond to customer inquiries and concerns, creating a positive customer experience.
• Brand Reputation Management: Hilton protects its brand image by addressing and resolving negative sentiment in a timely manner.
• Insights for Marketing Campaigns: Social listening data enables Hilton to understand customer preferences and create targeted marketing campaigns that resonate with their target audience.
• Competitive Advantage: By actively engaging with customers on social media, Hilton differentiates itself from competitors in the hospitality industry.

Traditional Marketing Communication Strategies of Hilton Hotels

Hilton Hotels employs a range of traditional marketing communication strategies to effectively reach its target audience and establish strong brand recognition. By utilizing print advertisement in renowned publications such as The Wall Street Journal and Forbes, Hilton Hotels ensures its message reaches a wide and influential readership. Television channels are another valuable platform for Hilton to engage with potential customers through broadcast marketing. Furthermore, the brand actively employs sales promotion techniques, including the distribution of discount vouchers and the implementation of loyalty programs, to incentivize and attract customers.

Recognizing the importance of a comprehensive media mix, Hilton Hotels employs a combination of magazines, newspapers, and television as part of its marketing communication strategy. While print media allows for targeted campaigns and granular reach, television enables the brand to communicate its message effectively to a vast audience. Hilton’s media mix also extends to its website, which primarily serves as an information dissemination channel to provide potential customers with essential details about the hotel chain.

In addition to the aforementioned channels, Hilton Hotels produces a hotel magazine that showcases the brand’s services and offers. This magazine serves as an effective marketing collateral, allowing Hilton to engage with its target audience in a visually appealing and informative manner. While traditional marketing communication strategies have been successful for Hilton, the brand also recognizes the evolving landscape and is beginning to explore new avenues such as social campaigns on its website.

Digital Transformation and Potential for Hilton Hotels

While Hilton Hotels has traditionally relied on traditional marketing communication strategies, there is tremendous potential for digital transformation in the luxury industry. Many luxury brands across various industries have successfully leveraged digital platforms, including social media, websites, and online videos, to effectively communicate with customers and enhance their brand image.

Hilton Hotels has the opportunity to explore the realm of digital marketing to engage with customers and tap into the growing digital market. By embracing social media campaigns, digital advertising, and establishing a stronger online presence, Hilton can effectively engage with a wider audience and strengthen its brand positioning in the luxury industry.

Adapting to the digital landscape can provide Hilton with numerous benefits, including:

• Increased brand visibility
• Enhanced customer engagement
• Targeted marketing strategies
• Improved customer insights
• Better ROI on marketing efforts

The luxury industry has evolved, and customers are increasingly turning to digital platforms for their shopping and lifestyle needs. Hilton Hotels can seize this opportunity to establish a strong online presence, connect with customers, and deliver personalized experiences that cater to their preferences and expectations.

Utilizing Social Media Platforms

Hilton Hotels can leverage various social media platforms, such as Facebook, Instagram, Twitter, and LinkedIn, to connect with its target audience. These platforms offer a wealth of opportunities to engage with customers, share compelling content, and create a sense of community around the Hilton brand.

By regularly posting high-quality and engaging content, Hilton can promote its hotels, showcase its unique offerings, and inspire travelers to choose Hilton for their next luxury experience. Social media platforms also provide valuable analytics and insights that can help Hilton understand customer preferences, track online reputation, and refine marketing strategies.

Building a Strong Online Presence

An effective digital marketing strategy for Hilton Hotels involves building a strong online presence through a well-designed and user-friendly website. The website should highlight the unique features of Hilton’s hotels, provide easy access to booking and reservation systems, and offer relevant information to potential guests.

In addition to the website, Hilton Hotels can benefit from partnering with online travel agencies and leveraging online review platforms to gather customer feedback and improve its services. By actively monitoring and responding to customer reviews and inquiries, Hilton can demonstrate its commitment to customer satisfaction and build trust with potential guests.

Enhancing Customer Engagement

One of the biggest advantages of digital marketing is the ability to engage with customers in real time. Hilton Hotels can leverage digital platforms to interact with customers, respond to inquiries, and provide personalized recommendations. This level of engagement helps create a memorable and positive experience for customers, leading to increased loyalty and advocacy.

Through digital channels, Hilton Hotels can also offer exclusive promotions, rewards, and loyalty programs to enhance customer retention and drive repeat bookings. By leveraging customer data and insights, Hilton can tailor its marketing communications to individual preferences, delivering targeted offers and experiences that resonate with its audience.

A strong digital marketing strategy can help Hilton Hotels stay ahead of the competition in a rapidly evolving luxury industry. By embracing digital transformation and exploring the potential of digital marketing, Hilton can attract a wider audience, engage with customers in meaningful ways, and position itself as a leading luxury brand in the hospitality industry.

Leveraging Social Media and Building Relationships: The Hilton Suggests Campaign

Hilton Hotels recognizes the importance of social media in enhancing its marketing communication and building strong customer relationships. To achieve this, the company has implemented the Hilton Suggests campaign, a Twitter-based initiative that allows Hilton employees to offer personalized recommendations to travelers in participating cities. This campaign exemplifies Hilton’s commitment to customer engagement, authenticity, and personalized service.

The Hilton Suggests campaign leverages social listening, a process through which Hilton monitors social media platforms for mentions and engages with customers in real-time. By actively listening to social media conversations, Hilton can identify opportunities to assist travelers and provide valuable recommendations. This not only enhances the customer experience but also showcases Hilton’s dedication to authentic and genuine interactions.

With the Hilton Suggests campaign, Hilton employees act as friendly local guides who go above and beyond to offer personalized recommendations to travelers, ensuring they have the best possible experience during their stay. This personalized approach allows Hilton to establish a deeper connection with its customers, fostering trust, loyalty, and a sense of community.

The Hilton Suggests campaign has been well-received by travelers, with numerous positive mentions on social media platforms. By promptly acknowledging and responding to these mentions, Hilton can enhance its brand image and strengthen its reputation for exceptional customer service.

Social media has become a powerful tool for customer engagement in the digital age. By utilizing social listening and building relationships through initiatives like the Hilton Suggests campaign, Hilton Hotels can create stronger connections with its customers and increase brand loyalty. This personalized and authentic approach sets Hilton apart from its competitors, showcasing the company’s commitment to delivering exceptional service and tailored recommendations.

Marketing Communication in the Luxury Hospitality Industry

The luxury hospitality industry, including Hilton Hotels, has witnessed significant advancements in marketing communication strategies. This can be attributed to the advent of digital technologies and the evolving behavior of luxury consumers. Luxury brands in various sectors, such as the luxury motor industry, have embraced digital platforms to effectively communicate with customers and establish a strong digital presence.

By leveraging innovative digital strategies , luxury brands can engage with their target audience, showcase new products and services, and build lasting relationships. Digital platforms offer unique opportunities for luxury brands to create personalized customer experiences and enhance brand perception.

Hilton Hotels can learn valuable lessons from other luxury brands that have successfully implemented digital strategies. By adopting and incorporating these strategies into its marketing communication efforts, Hilton Hotels can effectively communicate the essence of luxury to its discerning audience.

To stay ahead in the highly competitive luxury hospitality industry, it is imperative for Hilton Hotels to embrace the digital revolution and capitalize on the changing customer behavior. By harnessing the power of digital platforms, Hilton Hotels can create a compelling digital presence, attract and retain customers, and strengthen its position as a leading luxury brand.

To further understand the impact of digital strategies in marketing communication within the luxury hospitality industry, let’s explore examples of luxury brands that have successfully integrated digital platforms into their marketing campaigns:

Ralph Lauren’s Digital Strategy

Ralph Lauren, a renowned luxury fashion brand, has effectively utilized digital platforms to engage with its audience and showcase its products. The brand has leveraged social media platforms, such as Instagram and Twitter, to create visually appealing content and interact with its customers. Through strategic partnerships with influencers and celebrities, Ralph Lauren has successfully reached a broader audience and increased brand visibility.

Bentley’s Digital Campaigns

Bentley, a luxury automobile manufacturer, has embraced digital strategies to enhance its marketing communication efforts. The brand has leveraged online platforms, such as YouTube and Facebook, to showcase its luxurious cars and engage with its target audience. Bentley’s digital campaigns have effectively highlighted the brand’s craftsmanship and attention to detail, resonating with luxury consumers worldwide.

By adopting similar digital strategies, Hilton Hotels can elevate its marketing communication initiatives, connect with its audience, and establish itself as a prominent player in the luxury hospitality industry.

Hilton Hotels, a leading brand in the luxury hospitality industry, must develop a comprehensive marketing strategy to enhance brand visibility and attract new customers. By incorporating segmentation, pricing, and service tactics, Hilton can effectively position itself in the competitive market. Furthermore, leveraging digital platforms and social media will play a vital role in reaching and engaging with the target audience.

Monitoring performance through customer loyalty and revenue growth evaluation will enable Hilton to assess the effectiveness of its marketing strategy. By adapting to the changing landscape of marketing communication and exploring new avenues for customer engagement, Hilton Hotels can maintain its position as a top luxury brand.

With a well-defined marketing strategy, Hilton Hotels can ensure its brand remains visible to customers, effectively attracting and retaining their attention in the competitive luxury hospitality industry. Continuous evaluation of performance and a willingness to adapt to emerging trends will be crucial in sustaining Hilton’s success as a leading brand in the industry.

What is Hilton Hotels’ mission?

Hilton’s mission is to provide each guest and team member with a satisfying experience and create a culture of hospitality.

How does Hilton Hotels prioritize sustainability?

Hilton Hotels prioritizes sustainability by focusing on reducing energy, water use, waste, and carbon impact.

Who are Hilton Hotels’ main competitors?

Hilton Hotels’ main competitors include Marriott, Starwood Hotels, and Hyatt Hotels.

How does Hilton Hotels engage with customers on social media?

Hilton Hotels engages with customers on social media by utilizing social listening, responding to mentions, and resolving issues promptly.

What traditional marketing strategies does Hilton Hotels use?

Hilton Hotels uses traditional marketing strategies such as print advertisements, television channels, and sales promotions.

How can Hilton Hotels enhance its marketing communication digitally?

Hilton Hotels can enhance its marketing communication digitally by exploring social media campaigns, digital advertising, and stronger online presence.

What is the Hilton Suggests campaign?

The Hilton Suggests campaign is a Twitter-based program where Hilton employees provide personalized recommendations to travelers in participating cities.

How can Hilton Hotels adapt to the changing marketing communication landscape?

Hilton Hotels can adapt to the changing marketing communication landscape by exploring new avenues for customer engagement and tapping into the growing digital market.

How can Hilton Hotels maintain its position as a leading luxury brand?

Hilton Hotels can maintain its position as a leading luxury brand by developing a comprehensive marketing strategy, leveraging digital platforms and social media, and monitoring performance through customer loyalty and revenue growth evaluation.

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Hilton Worldwide, the 2014 Gold Winner of the Gartner and 1:1 Media CRM Excellence Award in Customer Analytics, leads the hospitality industry with its customer experience and insights program.

How did Hilton win? The whole company, from the C-suite to the frontline, is engaged!

Over 54,000 employees regularly engage with real-time customer feedback. Hilton focuses on continuously turning insights into action to better serve its guests.

Join our upcoming webinar to learn how Hilton uses Medallia to:

• Empower over 54,000 active Medallia users, across 4,000+ properties in 90 countries, with real-time guest feedback and actionable insights
• Link guest loyalty to revenue: one Hilton brand found that promoters return more than three times more frequently and spend over 58% more than detractors
• Test innovative practices and offerings to determine where to make investments

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Social Spotlight: Hilton’s pandemic strategy proves the business value of social

Written by by Michelle Grano

Published on  April 22, 2021

Reading time  6 minutes

For more than a century, Hilton has built its reputation on raising the standards of the guest experience. In fact, many of the staple offerings in the hospitality industry today—room service, the minibar, central reservations systems—were once Hilton innovations.

And even though it’s been four decades since minibars made their glorious debut, Hilton continues to innovate. Several years ago, they introduced their Hilton Honors app and Digital Key technology to provide guests with a contactless check in/check out experience. Their Five Feet to Fitness™ offering includes 11 different fitness equipment and accessory options so guests can work out in the privacy of their room. And their recent CleanStay program promises guests more rigorous cleaning and inspection protocols in the wake of the pandemic.

As an industry pioneer, many brands look to Hilton as a shining example of how to address the evolving needs of today’s traveler, and rise to the challenge of reinventing the hospitality experience .

While the effects of the pandemic have been devastating across the board, one of the hardest hit industries was Travel and Hospitality. Like most hotels, resorts and other travel destinations, the initial challenge for Hilton was managing the fallout from cancellations.

But as time went on, the challenge became (and still remains) the general sentiment toward travel. In addition to the everyday challenge of standing out among other hotel choices, Hilton also needed to overcome new hesitations and objections about travel during a pandemic. Their business depended on it. So, what did they do? In short, they listened.

Hilton’s strategy to inspire renewed trust and confidence in both travel and their brand appears to include three insight-driven pillars: product innovation, marketing creative and customer connection. Let’s unpack each pillar and discover how your brand can use social insights to drive similar business strategies.

Product innovation

During a pandemic, travelers’ priorities change. When they’re searching for a hotel, they care less about amenities and service, and more about cleanliness and protection. In order to compete with the comfort and safety of people’s own homes, Hilton created a program that would ensure the same diligence and care in cleaning their hotel rooms. In partnership with trusted household cleaning brand, Lysol, the brand launched Hilton CleanStay in select hotels.

When you’re ready to travel again, we’ll be ready to welcome you with an all new standard for hotel cleanliness and disinfection across our 18 brands. Today, we’re announcing Hilton CleanStay, developed with RB, maker of @Lysol and Dettol. https://t.co/8rM7mi0PUt pic.twitter.com/lEmzaYVIBr — Hilton (@Hilton) April 27, 2020

Most notably, the program featured the Hilton CleanStay seal, a product innovation that let guests know their room was professionally deep cleaned since the last guest—and that no one had entered their room since that cleaning.

To promote the program, Hilton shared the announcement on its social channels, as well as a video showing the cleaning protocols in action. Judging by some of the comments, this program had a direct affect on loyalty and revenue.

it looks like I'll be making @Hilton properties my choice of hotels from now on! — Chef Dennis | Ask Chef Dennis®️ (@AskChefDennis) June 15, 2020

Using social to drive product innovation: 

Insights gleaned from social can tell a brand a lot about what their audience is thinking, feeling, wanting, needing, using, doing, etc. Although a desire for clean rooms may have been a no-brainer in the context of the pandemic, the knowledge of which cleaning brands Hilton’s audience trusted most and the desire for a visual cue could have come from social listening.

By listening to social conversations that included keywords like cleaning, hotels, virus protection, etc, Hilton may have discovered the insights that folks trust Lysol, and don’t always trust someone’s word that something’s been cleaned—leading to their choice in brand partnership and the innovation of the physical seal.

With a sophisticated listening tool, your team can set up queries to monitor specific topics and keywords, as well as sentiments toward your brand and others. These insights might just reveal a gap in the market or new opportunity to create something new for your customers.

Marketing creative

In October of 2020, Hilton announced its global marketing campaign, “To New Memories.” The initiative was driven by a customer survey revealing that nearly nine in 10 travelers say travel memories are some of the happiest of their lives, 95% of those who travel are missing it and 90% believe we are currently experiencing a travel memory deficit.

The campaign was created to reignite people’s passion for travel by reminding them of what vacations, adventures and getaways feel like. It appealed to Hilton’s audience’s emotions at a time when they were missing travel and the memories it created the most. Long story short: They used FOMO to inspire desire and action.

Ready to reconnect and hit the open road? We’ll have a comfy bed waiting for your arrival. https://t.co/sbzBVr2kJh #HiltonMemories pic.twitter.com/wBt6KHIrwq — Hilton (@Hilton) September 28, 2020

Using social to drive marketing creative:

For folks who aren’t as motivated by the promise of a clean room, Hilton went a layer deeper with this campaign by appealing to the emotions of their audience. In order to do that, they first had to find out how their audience was feeling.

While Hilton used an actual customer survey to glean insights around travel sentiment, not every brand has similar resources. That’s the beauty of social listening . You don’t need a lot of time or money to discover what your audience is feeling at any given time. People are telling us everything we need to know on a daily basis through their social activity. We just need to make sure we’re listening.

And when it comes to marketing campaigns, that emotional insight and connection is what will lead to messaging and creative that resonates deeply enough to inspire your audience to take action. It’s the difference between selling them on what you’re offering—and why you’re offering it. The “why” is always more impactful.

Customer connection

With so many folks working from home during the pandemic, Hilton identified an opportunity to provide their guests with a distraction-free environment for more productive remote working. The initiative is called Workspaces and offers day-use rooms that include a spacious desk, ergonomic chair and enhanced WiFi.

To promote Workspaces on social, Hilton asked their followers to send them a photo of themselves in their everyday workspace using #UpgradeYourView, and in return they’d upgrade it to reflect the “travel background of their dreams.”

Hello, sunshine! We think this view from @BocaResort is the perfect upgrade.😎 https://t.co/kFkVioer8n pic.twitter.com/YZRvxBRmGb — Hilton (@Hilton) October 29, 2020

Even though it was only a day-long initiative, the images created were highly-shareable, and gave the brand the opportunity to engage with their audience, promote their new program and stay top of mind during a decline in travel.

Specific Hilton hotel chains and locations have also mastered the art of genuine customer connection. When power outages in Texas displaced an elderly man from his home, his granddaughter checked him into a local hotel, which the family jokingly nicknamed “Waldorf Astoria.” When a real Waldorf Astoria property—one of Hilton’s most prestigious and luxurious chains—learned of his story, they reached out with a personal invitation to stay with them once travel restrictions lightened up.

Knowing that might be a while, the hotel decided to bring their signature luxury experience directly to him by sending him a Waldorf Astoria “care package,” including a bathrobe, slippers, luggage tag and more to use while he plans his trip.

Grandpa got a care package from The Waldorf!! Good thing we have plenty of time to work on his Italian… 🇮🇹 😉 @RomeCavalieri pic.twitter.com/VLdGu6b5h7 — Alex Holley (@AlexHolleyFOX29) March 2, 2021

These surprise and delight moments create lasting connections not only with the guests directly involved, but also with everyone who happens to hear about it. In this case, the story made it onto the local Texas news, giving the hotel some free, brand-building publicity. And of course, the story then makes for great content to share across their own channels.

Using social to drive customer connection:

It would be difficult to stumble upon these moments without a sophisticated social listening solution . People don’t always use your brand’s handle when mentioning you in their social conversations. By monitoring certain relevant keywords, the Rome Waldorf Astoria location was able to bless this man beyond anything he ever expected, and positively impact their brand perception in the process.

Travel and hospitality brands aren’t the only ones who can benefit from surprise and delight opportunities. Any time your team can add value to or solve a problem for members of your audience, you are building your brand and directly impacting your business through customer connection.

And there’s just no better way to do it than with social listening.

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Inside Hilton’s CRM Strategy

by Gary Leff on August 11, 2004

The system is geared towards meeting customers’ preferences, speeding their checkin process, and in the future may allow Hilton to sell additional value-added products like theatre tickets based on show availability and guest interests. It can also tell the hotel chain when not to invest in a customer.

The system will help manage who gets walked in an oversell situation.

They’re rolling out checkin kiosks that will also double as airline checkin machines, and plan to introduce web checkin.

And finally, private eyes may be a-watchin’ you:

More From View from the Wing

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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CRM Strategies for Hilton Hotel: A Comprehensive Guide

Introduction.

Welcome to our comprehensive guide on CRM strategies for Hilton Hotel. In this article, we will explore the key aspects of Hilton’s customer relationship management strategies and how they have helped the hotel chain to achieve success in the industry. With increasing competition in the hospitality sector, it is essential to have a robust CRM strategy to attract and retain customers.

In this guide, we will provide an overview of Hilton Hotel’s history and mission statement. We will also explore the various digital tools and analytics that the hotel chain uses to manage customer relationships. Additionally, we will take a closer look at Hilton’s loyalty program and how it has contributed to the success of the hotel chain. Finally, we will provide some recommendations on how other hotel chains can emulate Hilton’s CRM strategies to achieve similar success.

Hilton Hotel: History and Mission Statement

Founded in 1919, Hilton Hotel is one of the largest hotel chains in the world. The hotel chain operates more than 6,000 properties in 119 countries, making it one of the most recognizable names in the hospitality industry. Hilton’s mission statement is to be the most hospitable company in the world by creating memorable experiences for their guests, team members, and stakeholders. To achieve this mission, the hotel chain has implemented several customer-centric strategies.

The Importance of Customer Relationship Management

Customer relationship management (CRM) is a strategic approach to managing interactions with customers, with the goal of driving customer loyalty and retention. For a hotel chain such as Hilton, CRM is crucial to their success. Hilton’s CRM strategy aims to maintain a positive relationship with their customers by providing personalized experiences and addressing their needs and concerns efficiently. Hilton’s success in customer relationship management can be attributed to its effective use of digital tools and analytics.

Digital Tools and Analytics

Digital tools and analytics have revolutionized the hospitality industry, allowing hotels such as Hilton to collect valuable data on their customers’ preferences and behaviors. Hilton has used this data to personalize customer experiences and stay ahead of the competition. Below are some of the digital tools and analytics that Hilton uses to manage customer relationships.

Customer Analytics

Customer analytics is the process of collecting and analyzing customer data to gain insights into their behavior, preferences, and needs. Hilton uses customer analytics to gain a better understanding of their customers’ preferences and pain points. This data enables Hilton to offer customized experiences that meet the unique needs of each customer.

Social Media Listening Tools

Social media listening tools allow hotel chains to monitor social media platforms such as Twitter, Facebook, and Instagram for mentions of their brand. Hilton uses social media listening tools to track conversations about their hotel chain and to identify areas where improvements can be made. This approach has enabled Hilton to respond to customer complaints and suggestions quickly, leading to improved customer satisfaction.

Marketing Automation

Marketing automation is the use of software to automate repetitive marketing tasks, such as sending emails and social media posts. Hilton uses marketing automation to send personalized messages to customers based on their preferences and behavior. This approach has helped Hilton to increase customer engagement and loyalty.

Hilton Honors: Loyalty Program

Hilton Honors is Hilton’s loyalty program that rewards customers for their loyalty. The program has over 100 million members worldwide and offers exclusive benefits such as free Wi-Fi, room upgrades, and late checkout. Hilton Honors is a key part of Hilton’s CRM strategy, as it helps to drive customer loyalty and retention.

Personalization

Hilton Honors members receive personalized experiences based on their preferences and behavior. For example, if a member prefers a particular room type or location, Hilton will make every effort to accommodate their request. This personalization has helped Hilton to build stronger relationships with its customers.

Increased Engagement

Hilton Honors members are more engaged with the hotel chain, leading to increased spending and loyalty. The program’s rewards and benefits incentivize members to book directly with Hilton, leading to increased revenue for the hotel chain.

Recommendations for Other Hotel Chains

Other hotel chains can learn from Hilton’s CRM strategies and apply them to their own businesses. Below are some recommendations for other hotel chains looking to improve their customer relationship management strategies.

Invest in Digital Tools and Analytics

Digital tools and analytics are essential to effective CRM strategies. By investing in customer analytics, social media listening tools, and marketing automation, hotels can gain insights into their customers’ preferences and behaviors and offer personalized experiences.

Create a Loyalty Program

A loyalty program can drive customer engagement and loyalty. By offering exclusive benefits and rewards, hotels can incentivize customers to book directly with them and increase revenue.

Respond to Feedback Quickly

Social media listening tools can help hotels to identify areas where improvements can be made. By responding to customer complaints and suggestions quickly, hotels can improve customer satisfaction and loyalty.

CRM Strategies for Hilton Hotel: Summary

Hilton Hotel is one of the most recognizable names in the hospitality industry, thanks in part to its effective CRM strategies. By using digital tools and analytics, Hilton has been able to personalize customer experiences and stay ahead of the competition. Hilton Honors, the hotel chain’s loyalty program, has contributed to its success by driving customer engagement and loyalty.

Frequently Asked Questions

In conclusion, Hilton Hotel’s success can be attributed in large part to its effective CRM strategies. By investing in digital tools and analytics, creating a loyalty program, and focusing on personalization and customer engagement, Hilton has been able to maintain a positive relationship with its customers and drive loyalty and retention. Other hotel chains can learn from Hilton’s CRM strategies and apply them to their own businesses. By doing so, they can stay ahead of the competition and achieve similar success.

Take Action Now

If you are in the hospitality industry, consider implementing some of Hilton’s CRM strategies to improve your customer relationships. By investing in digital tools and analytics, creating a loyalty program, and responding to feedback quickly, you can drive customer engagement and loyalty and stay ahead of the competition.

Thank you for reading our comprehensive guide on CRM strategies for Hilton Hotel. We appreciate your time and hope that the insights and recommendations provided in this guide will help you to improve your own CRM strategies. Please feel free to reach out to us if you have any questions or comments.

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Hilton Hotels: Brand Differentiation through Customer Relationship Management

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Hilton hotels: brand differentiation through customer relationship management description.

This case analyzes the Hilton Hotels Corporation's CRM strategy at a key juncture in its history, immediately after the firm has been taken private by Blackstone. The case provides students with a comprehensive history of the evolution and IT enablers of Hilton's CRM Initiative, as well as the proprietary OnQ enterprise system. The case thus offers a rare opportunity to engage in a longitudinal evaluation of the firm's CRM initiative, and to enable students to propose the future evolution of the initiative based on their analysis.

Case Description Hilton Hotels: Brand Differentiation through Customer Relationship Management

Strategic managment tools used in case study analysis of hilton hotels: brand differentiation through customer relationship management, step 1. problem identification in hilton hotels: brand differentiation through customer relationship management case study, step 2. external environment analysis - pestel / pest / step analysis of hilton hotels: brand differentiation through customer relationship management case study, step 3. industry specific / porter five forces analysis of hilton hotels: brand differentiation through customer relationship management case study, step 4. evaluating alternatives / swot analysis of hilton hotels: brand differentiation through customer relationship management case study, step 5. porter value chain analysis / vrio / vrin analysis hilton hotels: brand differentiation through customer relationship management case study, step 6. recommendations hilton hotels: brand differentiation through customer relationship management case study, step 7. basis of recommendations for hilton hotels: brand differentiation through customer relationship management case study, quality & on time delivery.

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Case Analysis of Hilton Hotels: Brand Differentiation through Customer Relationship Management

Hilton Hotels: Brand Differentiation through Customer Relationship Management is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Hilton Hotels: Brand Differentiation through Customer Relationship Management is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Hilton Hotels: Brand Differentiation through Customer Relationship Management case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Hilton Hotels: Brand Differentiation through Customer Relationship Management will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Hilton Hotels: Brand Differentiation through Customer Relationship Management case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Hilton Hotels: Brand Differentiation through Customer Relationship Management, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Hilton Hotels: Brand Differentiation through Customer Relationship Management case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Hilton Hotels: Brand Differentiation through Customer Relationship Management case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Hilton Hotels: Brand Differentiation through Customer Relationship Management

Step 1 – Problem Identification of Hilton Hotels: Brand Differentiation through Customer Relationship Management - Harvard Business School Case Study

The first step to solve HBR Hilton Hotels: Brand Differentiation through Customer Relationship Management case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Crm Hilton is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Crm Hilton, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Hilton Hotels: Brand Differentiation through Customer Relationship Management. The external environment analysis of Hilton Hotels: Brand Differentiation through Customer Relationship Management will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Hilton Hotels: Brand Differentiation through Customer Relationship Management case study. PESTEL analysis of " Hilton Hotels: Brand Differentiation through Customer Relationship Management" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Hilton Hotels: Brand Differentiation through Customer Relationship Management macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Hilton Hotels: Brand Differentiation through Customer Relationship Management

To do comprehensive PESTEL analysis of case study – Hilton Hotels: Brand Differentiation through Customer Relationship Management , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Hilton Hotels: Brand Differentiation through Customer Relationship Management

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Hilton Hotels: Brand Differentiation through Customer Relationship Management ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Crm Hilton is operating, firms are required to store customer data within the premises of the country. Crm Hilton needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Hilton Hotels: Brand Differentiation through Customer Relationship Management has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Crm Hilton in case study Hilton Hotels: Brand Differentiation through Customer Relationship Management" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Crm Hilton in case study “ Hilton Hotels: Brand Differentiation through Customer Relationship Management ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Crm Hilton in case study “ Hilton Hotels: Brand Differentiation through Customer Relationship Management ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Hilton Hotels: Brand Differentiation through Customer Relationship Management ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Crm Hilton can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Hilton Hotels: Brand Differentiation through Customer Relationship Management case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Crm Hilton needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Hilton Hotels: Brand Differentiation through Customer Relationship Management

Social factors that impact hilton hotels: brand differentiation through customer relationship management, technological factors that impact hilton hotels: brand differentiation through customer relationship management, environmental factors that impact hilton hotels: brand differentiation through customer relationship management, legal factors that impact hilton hotels: brand differentiation through customer relationship management, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: hilton hotels: brand differentiation through customer relationship management case study solution.

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Hilton Hotel Worldwide: A Case Study Exploring Corporate Social Responsibility and Stakeholder Management

• By: Antonia Noonan & Caddie Putnam Rankin
• Publisher: International CHRIE
• Publication year: 2017
• Online pub date: January 15, 2020
• Discipline: Business Ethics (general) , Corporate Social Responsibility , Hospitality, Travel & Tourism Management
• DOI: https:// doi. org/10.4135/9781529715828
• Contains: Content Partners | Teaching Notes Length: 7,078 words Region: Global Originally Published In: Noonan , A. , & Rankin , C. P. ( 2017 ). Hilton Hotel Worldwide: A case study exploring corporate social responsibility and stakeholder management . Journal of Hospitality & Tourism Cases , 5 (4) , 15 – 27 . Industry: Accommodation and food service activities Type: Indirect case info Organization: Hilton Hotel Worldwide Organization Size: Large info Online ISBN: 9781529715828 Copyright: © 2017 International Council on Hotel, Restaurant, and Institutional Education (ICHRIE). All rights reserved. More information Less information

Teaching Notes

How to be socially responsible is a growing concern for the hospitality industry. This case study provides examples of how Hilton Hotel Worldwide (HHW) fulfils its responsibility to stakeholders and stockholders by reviewing a myriad of fiduciary, legal, ethical, community, and global concerns. From an industry perspective, HHWs’ approach to internal and external stakeholder concerns has promoted positive industry-wide change. In addition, this case study allows the reader to conceptualize the concept of Corporate Social Responsibility (CSR) in the context of the hospitality sector by reviewing the policies and practices carried out by Hilton Hotel Worldwide. Reflecting on the HHW’S CSR engagement and CSR theory, the reader is asked to comment an upcoming shareholder referendum that would tie executive compensation to CSR performance.

Introduction

Case dilemma.

As a hospitality student, your interest in the industry led you to purchase Hilton Hotel Worldwide (HHW) stock. You are a proud HHW shareholder. In the time you have been a shareholder, you have been pleased with the investment. In an upcoming HHW shareholders meeting, a proxy ballot will be introduced to vote on a proposal to include Corporate Social Responsibility (CSR) performance among the factors considered in awarding executive pay.

The clause states:

The shareholders of Hilton Hotel Worldwide request the Board’s Compensation Committee to include corporate social action as one of the performance measures for senior executive’s compensation under the Company’s incentive plans. Corporate social action is defined as how environmental and social concerns are addressed, monitored and integrated into corporate strategy over the long term. 1

From your hospitality courses, you are aware of the efforts the industry has made addressing CSR issues, however, you are not specifically familiar with HHW history of addressing CSR concerns and the company’s ongoing level of commitment. You decide to conduct research in order to make an informed decision on the shareholder resolution. You start with a review of the CSR theories introduced in your Eco-Tourism class. Then you conduct additional research on the history of CSR in the hospitality industry, HHW reaction and resolution to CSR conflicts and finally, consider if an additional CSR focus will provide HHW with a competitive advantage. Once you review your research, you will make your decision.

Corporate Social Responsibility Theoretical Perspective

Corporate Social Responsibility (CSR) is focused on business’ obligations and behavior towards society. Some narrow the scope to business stakeholders such as employees and customers while others more broadly include the environment and sustainability. However, most agree, CSR is a difficult concept to define. It overlaps with “other concepts such as corporate citizenship, sustainable business, environmental responsibility, the triple bottom line; social and environmental accountability; business ethics and corporate accountability” (Broomhill, 2007, p. 6). Carroll’s (1979) widely used definition of CSR claims that “CSR involves the conduct of a business so that it is economically profitable, law abiding, ethical and socially supportive…The CSR firm should strive to make a profit, obey the law, be ethical, and be a good corporate citizen” (Carroll, 1999, p. 286). Porter and Kramer (2002, 2011) suggest that by incorporating CSR into business practice, organizations can achieve a competitive advantage over their industry rivals (see Figure 1 ).

Adam Smiths’ “invisible hand” allegory contends that it is each person’s responsibility to “render the annual revenue of society as great as he can” and by pursuing and acting in one’s self-interest is the best interest for society. In pursuit of self-interests, it is understood that an individual will be acting in a moral and just fashion in and thereby, in a socially responsible way. However, Smith points out, no matter how noble or righteous the cause, executives (corporations) do not have the right to be generous with others money (Smith, 1994).

Similarly, Milton Friedman’s (1970) shareholder theory asserts that shareholders are the owners of a company, and the firm’s sole obligation is to increase profits for the owners; the firm’s objective and fiduciary obligation is to maximize shareholder wealth. If CSR initiatives increase profits then shareholders should implement such initiatives.

In contrast, stakeholder theory argues that there are other parties concerns that should be considered, including governmental, associations, communities, suppliers, employees, and customers (Freeman, 1984). From the viewpoint of the stakeholder theory, the HHW board of directors, operators and hotel managers are morally obligated to balance the interests of shareholders (owners) and other stakeholders because as operators, they have a fiduciary and ethical responsibility toward all stakeholders

Carroll’s (1991) Pyramid of Social Responsibility describes four kinds of social responsibility that build upon each other and can be depicted in a pyramid. At the top of the pyramid is philanthropic responsibilities (Corporate Social Performance – managerial discretion), which is described as being a being a good corporate citizen, promoting behaviors that encourage goodwill and human welfare. Carroll (1979) believed philanthropic responsibilities were not expectations like economic, legal and ethical responsibilities located in the base of the pyramid (Velasquez, 2014). From a philanthropic responsibility viewpoint (the top of the pyramid), an organization contributes resources to the community/society in an effort to improve quality of life.

All the texts in the framework chart are written inside rectangular boxes. On the left, the first point is “Corporate Social Responsibility” which is written vertically. This is connected to four points to its right, written one below the other, namely, “Fiduciary,” “Legal,” “Ethical,” and “Global & Community.” There is a rightward arrowhead from those points that points to “COMPETITIVE ADVANTAGE?”

Figure 1: CSR Analysis Competitive Advantage Framework

Corporate Social Responsibility in the Hospitality Industry

It is commonplace to have CSR topics introduced during the orientation of new employees and presented as a topic in management training. For example, corporate management companies may have the resources to provide extensive CSR training and development while smaller companies and single ownership hotels may not be able address CSR topics beyond employee orientation. Such inconsistencies stem from fragmented nature of the hospitality industry and make the development of a universally accepted, industry wide training programs difficult. Kazim (2009) affirms that one of the biggest challenges and barriers to the implementation CSR in the hospitality industry is the lack of managerial awareness and training at the property level. Another reason for the limited understanding of CSR is due to the current trend of touting environmental sustainability efforts by communicating CSR actions as sustainable hospitality (Levy & Park, 2011).

Lee and Tsang (2013) and Knani (2013) assert that while CSR is a growing challenge in the hospitality industry, “the understanding of ethical perception and moral position of all stakeholders should be accentuated” (Lee et al., 2013, p. 239) in the business culture from the individual property unit to the boardroom. By the nature of its business, the hospitality industry has always been susceptible to unethical practices, as employees are frequently confronted with morally and ethically ambiguous situations. These dilemmas are not, however, limited to the property level. The larger hotel brands are publically held corporations that own, manage or franchise hotels. Public sector scrutiny from a myriad of stakeholders makes hospitality boards of directors, corporate executives, operators, owners and employees susceptible to lack of and/or questionable CSR, namely CSR motivation and questionable methodologies of ranking CSR engagement against competition. Other negative outcomes have been brought to the public’s attention and have provided a framework for organizational change and improved best practices for the industry.

A single hotel’s success in their market can be impacted by positive and negative reactions to the corporate brand. For example, negative brand publicity in responsibilities may create opportunities for the competition to exploit a perceived weakness. HHW suffered from such public scrutiny from sex trafficking accusations in 1998, corporate espionage scandal in 2009 and more recently in 2015 amidst concerns whether HHW officers and directors breached their fiduciary duties and caused damage to the company and its shareholders 2 . However, in the wake of turmoil, controversy and public dissidence, HHW successfully integrated a robust corporate code of conduct, introduced a proprietary environmental reporting program, and integrated a company-wide Corporate Social Responsibility (CSR) communication platform. These initiatives created opportunities and provoked changes in basic practices to overcome public grievances and elevate HHW to a CSR leader in the hospitality industry.

Fiduciary, legal, ethical, and global/community responsibilities can provide the hospitality industry with a competitive advantage over their rivals. In an effort to evaluate hospitality CSR and the prospect that CSR actions can provide one hotel or brand a competitive advantage over their rivals, this case study focuses on HHW CSR engagement in the area of fiduciary, legal, ethical, and global/community responsibilities.

Fiduciary Responsibilities

The primary responsibility of any organization is to survive. Survival is, more often than not, based on an organization’s ability to remain fiscally responsible. In recent years, management of hotels has moved from an owned and managed model to a model where the owner hires a management company to oversee the operation of the asset. Similarly, HHW has also moved to this model to reduced capital and increase shareholder worth by focusing on high value added activities like managing hotels without owning the asset. As a management company, the operator is an “agent” and therefore assumes fiduciary obligation to maximize profits and to inform ownership of how profits are achieved. In addition, central to the owner-management relationship is management’s duty to side with ownership priorities – to choose the principal’s (owner’s) interest over their own interests (Friedman, 1970).

Moving from an owner-management to a franchiser-management model, more than ever before, the customer is the primary asset to build shareholder wealth. An example of HHW commitment to focus on the customer and build customer loyalty to gain a competitive advantage was the creation of Hilton’s proprietary customer information system called OnQ 3 . Introduced in 2004, OnQ provided state of the art guest recognition, offered guest convenience and efficiency through web based check in as well as offering the option of using time saving kiosks for hotel check in and check out.

Despite these strengths in building their fiduciary responsibilities, some weakness can be noted. As a publically traded company, and similar to the owner-management relationship, the HHW Board of Directors has a fiduciary responsibility to its shareholders and to maximize, where possible, their profits. The directors and shareholders both shared in the benefits of the leveraged buy-out sale of HHW to Blackstone in 2007. Shareholders overwhelming approved the transaction, receiving $47.50 per share, which was 40 percent higher than the stock price the day before the acquisition was announced (Clausing, 2007). Despite the shareholder goodwill gained from the sale, and a self-imposed code of conduct 4 , HHW’s Board has gained unfavorable attention and is under scrutiny for unethical business practices. In March, 2015, the Shareholders Foundation announced an investigation on behalf of current long-term investors over potential breaches of fiduciary duties by HHW officers and directors causing damage to the company and its shareholders. While little public information is available regarding the details and status of investigation, the insinuation of misconduct has had little effect as HHW stock. In fact in mid-April 2015, HHW reached an all-time high—reflecting an increase of 16.9% year-to-date 5 .

Legal Responsibilities

In common law, the innkeeper was required to provide food, lodging and safety for its guests. Today, hotels are still liable as innkeepers adding the additional provision that the innkeeper must also provide the service of food and lodging in a non-discriminatory manner. While innkeepers are not insurers for the safely of their guests, innkeepers laws impose a duty to provide reasonable care in promoting their safety. These elementary innkeeper’s laws have been tested by disgruntled guests in a plethora of cases of claims ranging from injuries caused by defects in guest rooms to emotional distress caused by not having a room available upon check in. In such cases, courts generally uphold that an innkeeper owes a guest the duty of maintaining the premises of the hotel in reasonably safe conditions, taking care not to expose them to danger. Other legal responsibilities include anti-trust issues, franchise agreements, meeting and sleeping room contracts and labor disputes.

The Corporate Governance section of HHW 2013–2014 Annual Corporate Responsibility Report specifies that Hilton views legal compliance as an “opportunity to strengthen the communities where we live, work and travel” 6 . To further illustrate the company’s commitment, the report details companywide standards that create a safe and healthy environment for team members and guests, specific legalese regarding majority owner representation, board compliance, and majority board voting provisions. Furthermore, the Corporate Responsibility Report describes “reporting and investigation procedures to promote legal compliance and ethical behavior globally” that is verified by an independent audit committee to ensure legal compliance is authentic. According to researchers Font, Walmsley, Cogotti, McCombes, and Häusler (2012), HHW is the only hotel chain that permits an external audit of its CSR reporting.

To ensure all levels of associates are informed about pertinent legal matters, the HHW Corporate Responsibility Report identifies specific training topics that were highlighted the previous year that addressed various legal concerns. For example, in 2013 and 2014, anticorruption training was provided to all global associates at the corporate director title and above. A legal and compliance training program was launched globally that focused on “communicating critical policies on anti-corruption, confidential information and trade secrets, and trade sanctions, among others. Each of the core compliance topics relates to laws created in various countries in order to protect society” 6 . Overall, HHW efforts to engage employees and inform stakeholders of the company’s legal compliance are commendable.

Understandably, there is little published information regarding legal issues in the HHW sponsored information. Evaluating the placement of information in the Corporate Responsibility Report, legal and business ethics topics are consistently combined in the same category throughout HHW website and literature. This makes sense because an unlawful act is usually unethical. Within the context of the report however, self-regulation and the corporate code of conduct sometimes reveal discrepancies. Jameson (2011) emphasizes “a consistent ethical stance is a goal companies must strive for if they are to persuade employees – and the public – that codes of business conduct and ethics are not mere window dressing” ( p. 296). An example of the discrepancy between corporate policy and actual behavior can be studied in the Starwood v. Hilton espionage scandal.

Ethical Responsibilities

Hospitality employees are susceptible to unethical situations and behaviors. As a result, hotel companies attempt to stay vigilant by incorporating an ethics-dimension to their company culture. A study conducted by Bonitto and Noriega (2012) explored whether individuals in service industry leadership positions thought unethical behavior existed among their peers. Overwhelmingly, respondents felt that unethical practices exist and reported concern that dishonorable behavior is on the rise. Respondents identified that the majority of unethical decisions stemmed from greed, moral perceptions, job protection and the desire to perform to organizational pressure (including to enhance personal income or retain position). Beyond instituting an ethics based corporate code of conduct, efforts to increase employee awareness of business ethics and CSR must be supplemented with on-the-job-training, education and tools for employees to use to help identify, vet and respond to ambiguous ethical situations. An ethical corporate culture will encourage an appreciation of ethics and promote the idea that one’s actions have an effect on peers, departments, individual hotels, and the company.

Like most large companies today, HHW has developed an internal code of conduct intended to provide ethical and moral guidance. The tenets of the code are imbedded in the Corporate Responsibility Report, supplemented by a 20-page document highlighting the importance of ethical behavior in the company’s CSR initiative. The code includes a standard of conduct for collective team members and addresses 25 ethics sub categories (see Table 1 ). The 2013–2014 Corporate Responsibility Report also provides 2013 employee engagement statistics. For example, the report notes that more than 45,000 employees completed the online Code of Conduct training module and employees at an additional 554 properties received offline training. Also stated in the report and Code of Conduct is the following statement regarding HHW commitment to ensure employees engage in annual training through a certification process (see Table 2 ).

Bohdansowicz and Zientara’s (2009) article focusing on social reporting in the hospitality industry found HHW and AccorHotels exceeded all other brands in relation to their CSR reporting. However, formulating a detailed written statement of ethics or code of conduct with specific documented policies does not provide fail-safe methods for preventing unethical behavior. Greenwashing, writing fake on-line travel reviews, truth in advertising and add-on pricing disclosures are just a few areas in which managers engage in ambiguous unethical behavior that may go undetected.

In 2009, however, unethical behavior at HHW was publically noticed. In a highly visible, dramatic and at times contentious lawsuit, Starwood Hotels and Resorts Worldwide charged HHW with industrial espionage and theft of trade secrets – specifically focused on research and development blueprints to create a new lifestyle brand similar to Starwood’s successful W Hotel Brand. The espionage came to light when Hilton hired two former senior executives from Starwood in 2008 who, prior to leaving the company, took over 100,000 electronic Starwood files containing confidential corporate information and company trade secrets. The stolen information saved HHW millions of dollars of research and thousands of hours of development time. Starwood’s suit claimed misappropriation of trade secrets, breach of contract on Starwood’s non-solicitation, confidentiality and intellectual property agreements, fraud, unfair competition, conversion, breach of fiduciary duty, unjust enrichment, and the violation of the computer fraud act among others (Clausing, 2010). In December 2010, Hilton settled the lawsuit for a reported $150 million and severe restrictions on Hilton’s future business, including a ban on introducing a new lifestyle brand for two years. “Although Hilton admitted no guilt, the massive settlement suggested the company feared it would lose more if it went to trial” (Jameson, 2009, p. 292).

Jameson (2009) points out that at the time of the lawsuit, Sheratons’ and HHW’s business ethic code, confidentiality agreements and code of conduct statements focused solely on its own self-interests and self-protection. This incident clearly identifies the need for hospitality companies to include statements that specifically speak to prohibiting giving information and using improperly obtained information about a competitor. Consequently, a review of HHW 2007 CSR and Annual Reports (2008, 2009 not available) reveals that a corporate code of ethics is not included in the document, however the 2013–2014 Corporate Social Responsibility Report includes a section dedicated to explicit instructions regarding the distribution of HHW proprietary documents as well as receiving such information from the competition (see Table 3 ). During this period, the lawsuit settlement, residual bad press and the economic downturn resulted in HHW revenue decline of 20 percent and a cash flow decrease of 30 percent. Blackstone, HHW ownership, was in danger of losing its investment of $5.6 billion (Cohan, 2014).

Evaluating HHW CSR focus on ethical responsibilities is best illustrated by examining the inclusion of business ethics in communication prior and post the 2009 Starwood lawsuit. Prior the scandal, HHW CSR reporting was viewed as superior to the competition however, CSR did not include a corporate code of ethics or provide significant attention to training and mandatory annual certification compared to what is required of HHW executives, managers and hourly employees today. In this respect, and perhaps because of the espionage case, HHW has made great strides in formalizing an inclusive CSR program. In fact, 2014 HHW was ranked the #2 Most Admired Company by Fortune Magazine in the Hotel, Casino and Resorts division 7 . This ranking alone is impressive however the industry especially took note of the accomplishment since HHW was not even in top 10 in 2013.

Global and Community Responsibilities

According to the 2014 United Nations World Tourism Organization (UNWTO) annual report, today’s global tourism is an economic force with a significant combined direct and indirect impact on the global economy (see Figure 2 ). HHW along with other global hospitality companies are investing in new destinations providing an important driver of economic progress through the creation of jobs and infrastructure development 8 . Hoteliers entering into new markets are challenged with achieving financial success while respecting the values and culture of the community and environment. In 2011, HHW introduced “Travel with a Purpose 9 ” (see Table 4 ) as their global corporate responsibility commitment that focuses on “creating shared value and provides a cohesive, yet flexible framework to guide the activities of (our) business across regions, brands and properties”. Informing stakeholders and committing resources to address growing global and community challenges heightens awareness however, the industry’s main challenge is preserving a consistent global approach and implementing good global human relations, sustainability/environmental programs, training-development programs and service related standards in a fractured industry with limited mandating control inherent in the franchise-management operating model.

For the past 25 years, the main CSR focus in the lodging industry has largely been on environmental concerns and the efficient use of energy. Research in 2007 by Holcomb, Upchurch & Okumus (2007) included a content analysis of hospitality company web sites, annual reports and (online) CSR reports to measure hotels’ CSR commitment. Of all the companies observed, “Hilton Corporation provided the most detailed information regarding their CSR activities” (p. 465). Their annual Corporate Responsibility Report and code of conduct outlined policies beyond environmental and conservationist activities to include efforts on equal opportunity and diversity, human rights, health, safety, as well as environment sustainability.

As part of their comprehensive CSR program HHW pioneered an environmental benchmarking tool called Hilton Environmental Reporting (HER). In 2010, HER was replaced by LightStay, a proprietary monitoring system developed to calculate and analyze environmental impact. In the first year of testing, results showed that the 1,300 Hilton Hotels using the system “conserved enough energy to power 5,700 homes for a year, saved enough water to fill more than 650 Olympic size pools and reduced carbon output equivalent to taking 34,865 cars off the road. Reductions in water and energy use also translated into dollars-saved for hotel owners, with estimated savings of more than $29 million in utility costs in 2009 10 “ To confirm the timely implementation and validity of the program, HHW hired KEMA-Registered Quality, Inc.—a Management Systems design company—to perform a series of third-party audits of LightStay.

When HHW publically introduced LightStay in an April 2010 press release, aggressive objectives and goals where put forth that mandated the use of Light stay in all HHW hotels by the end of 2011. Conservation and sustainability was to be a brand standard (like service) and when achieved, HHW would be the first major multi-brand company in the hospitality industry to require property-level measurement of sustainability. By the end of 2011, Hilton met this goal 11 .

HHW continues to broaden its sustainability strategy. In 2015 the CSR team introduced “Meet with Purpose 12 ,” a concept designed to assist meeting planners reduce waste and incorporate health and wellness into meetings and events. The concept focuses on two areas: Mindful Eating, which is designed to minimize food waste and encourage healthy choices; and Mindful Meeting, which outlines meeting practices that are less resource-intensive.

In addition to these efforts, HHW extends global and community CSR activities beyond environmental conservation and sustainability. The HHW CSR and Public Relations Department frequently communicates through their Travel with a Purpose campaign that highlights current CSR activities, through social media (encourage to Tweet) and press releases. Travel with a Purpose initiatives support a wide range of organizations, ranging from funding a filmmaking grant at the Sundance Film Festival (for eco-centric films), to efforts to support woman owned and minority suppliers, repurposed waste objectives, animal protection interventions and local efforts to support community food banks 13 . A sample list of 2013–2014 initiatives can be found in Table 4 .

Overall, HHW global and community responsibilities are commendable. However, prior to the roll out of its corporate code of conduct in 2010, HHW attracted negative press from reports concerning child trafficking and prostitution in several Hilton Hotels. Chinese police found a brothel operating in a Hilton Hotel in southern China and, earlier in the year, a similar incident was reported in Ireland. To make matters worse, activists sent thousands of letters in protest of HHW’s delay in addressing the issue and for not signing the End Child Prostitution, Child Pornography and the Trafficking of Children for Sexual Purposes 14 (ECPAT) code of conduct. HHW declined to join other hoteliers in their support of the ECPAT code because they felt their newly created corporate code of conduct would suffice (Bhandari, 2010). Although the intention was to illustrate HHW independent commitment to the stop sex trafficking, failing to sign the EPCAT code of conduct – uniting with other hoteliers – had proven to be a public relations oversight that caused negative publicity and tarnished Hilton’s public perception.

HHW CSR Assessment and Competitive Advantage

The hospitality industry has embraced CSR and most major hospitality companies are actively participating in socially responsible activities. In the past, lodging companies tended to communicate CSR as sustainable efforts, however major brands have moved toward a more balanced approach, incorporating philanthropy, community service, and special interest groups that extend beyond conservation and environmental sustainability. As pointed out by researchers (Bohdanowicz, 2007; DeGrosbois, 2012), HHW is as a leader in CSR reporting and transparency and deploys considerable resources to engage internal and external stakeholders its CSR efforts. These efforts have provoked changes in the company. For example, years after the 1998 sex trafficking allegations, HHW and Carlson Hotels Worldwide are today’s global hospitality leaders against sex trafficking – matching stakeholder donations, assisting activist efforts and building awareness. Similarly, after the alleged espionage scandal in 2009, HHW instituted unprecedented CSR transparency via the internet and shareholder engagement. In addition, to face the espionage scandal head on, HHW rolled out a corporate code of conduct and robust training and certification program centered on integrity, business ethics and global citizenship.

Gaining and sustaining competitive advantage has been recognized as the single most important goal of an organization (Porter, 1980) and is created through strategies that add value when the competition fails to do so. Over the past 25 years, CSR – and, in particular, “green” sustainability – has become a baseline requirement for all hotels. De Gosbois (2012) conducted data analysis research on CSR reporting in the hotel industry and found 109 out 150 of the largest hotel companies reported some information on CSR activities. The researchers further identified that of the 109 hotels communicating their actions, only half (54 hotels) discussed a commitment to specific goals. Even fewer hotels that actually list the actions directed at achieving the goal or report if the any of their CSR goals had been met.

One of the strengths that gives legitimacy and authenticity to HHW’s CSR efforts is its reporting strategies and third party independent audit/verification process. The lagging reporting efforts by competitors and the industry in general, however, poses challenges for stakeholders that are interested in a hotels CSR activities and commitment. It is difficult to tell if a company is reaching goals or if it is truly committed to CSR when outcomes are not measured, reported or verified. Companies that engage with third party audit (like HHW), given assurances that goals and performances are accurately reported. Due to the lack of verification, the general acceptance and universal commitment to CSR behaviors, the industry is susceptible to greenwashing. For example, often hotels portray towel reuse programs as environmental stewardship yet fail to make improvements in the area of greater environmental impact.

There are five different colored rectangular boxes inside which there are illustrations and text. A leftward arrow connects each box to the one next to it. There are different silhouettes above each box. Above the first box, there is a silhouette of a woman holding a trolley in her hand. In the box, the text says “9% GDP,” and below it is the illustration of a globe. On the box to its right, there is a silhouette of a man above the box, holding a briefcase in his hand. In the box, there are eleven pictograms representing men, out of which one man has his right hand raised with a briefcase in his left hand. The text in the box reads “1/11 JOBS.” In the third box next to this one, there is a silhouette of a man with a tripod stand with a camera on it. In the box, the text reads “US$ 1.5 TRILLION IN EXPORTS.” Below the text, there is an illustration of a stack of dollars. In the box next to this, there is again a silhouette of a woman pulling a trolley. In the box, the text reads “6% OF WORLD’S EXPORTS.” Below this, there is an illustration of an airplane. On the last box, next to this one, there is a silhouette of a man pulling a trolley. In the box, the text reads “30% OF SERVICES EXPORTS.” There is an illustration of a shopping cart below the text. Below the five boxes, there are two upward arrows and the text between the two arrows reads, “WHY TOURISM MATTERS.”

Figure 2: 2014 Global Impact of the Tourism Industry

In order to create competitive advantage, CSR actions should be valuable, rare, unique and non-substitutable. Given the universal acceptance of CSR in the hospitality industry and the lack of an industry-wide reporting structure, CSR engagement may not provide a competitive advantage for any hotel however, CSR outcomes may create competitive advantage opportunities indirectly. For example, CSR efforts have shown to result in cost reduction, brand legitimacy and positive reputation are influential in gaining competitive advantage 15 . CSR can also influence turnover 16 , increased the company’s attractiveness to employees 17 and improve guest experiences 18 .

Yah or Nay – Casting a Balanced Vote

The shareholders of Hilton Hotel Worldwide request the Board’s Compensation Committee to include corporate social action as one of the performance measures for senior executive’s compensation under the Company’s incentive plans. Corporate social action is defined as how environmental and social concerns are addressed, monitored and integrated into corporate strategy over the long term.

Your research revealed valuable information to guide you to your decision. How will you vote on the shareholder resolution?

Further Reading

Corporate social responsibility (introduction), corporate social responsibility theories.

1. This is a fictitious proxy vote used as an example for the case study.

2. From “Hilton Worldwide Holdings Inc. (NYSE:HLT) investor investigation concerning potential wrongdoing announced,” 2015, March 23, retrieved http://shareholdersfoundation.com/caseinvestigation/hilton-worldwide-holdings-inc-nysehlt-investor-investigation-concerning-potential-wronding-announced

3. From “Hilton’s Customer-information System, Called OnQ, Rolling out across 8 hotel brands,” Hotel Online, 2004, retrieved from http://www.hotel-online.com/News/PR2004_3rd/Aug04_OnQ.html

4. From “Hilton Hotels Corporation code of business conduct and ethics,” n.d., retrieved http://media.corporate-ir.net/media_files/irol/88/88577/corpgov/codeofethics_013004.pdf and “Corporate governance guidelines,” 2015, August 6, retrieved http://ir.hiltonworldwide.com/files/doc_downloads/GovernanceDocuments/2015/Corporate-Governance-Guidelines-2015.pdf

5. From “Hilton and Wyndham bulls are checking into the hoteliers,” by Yamamoto, M., 2015, April 14, retrieved http://www.thestreet.com/story/13106557/1/hilton-and-wyndham-bulls-are-checking-into-the-hoteliers.html

6. From “Travel with a purpose 2013–2014 corporate responsibility report: Corporate governance,” 2013, retrieved from http://cr.hiltonworldwide.com/approach/governance.php

7. Fortune Magazine The Most Admired list a report card on corporate reputations. The Hay Adams Group selects the 15 largest international industry and the 10 largest U.S. industry, surveying a total of 668 companies from 29 countries. To create the 55 industry lists, Hay asked executives, directors and analysts to rate companies in their own industry on nine criteria, from investment value to social responsibility. A company’s score must rank in the top half of its industry survey to be listed. From http://fortune.com/worlds-most-admired-companies/

8. From “UNWTO Tourism highlights 2015 edition,” 2014, retrieved from www.e-un-wto.org/doi/pdf/10.18111/9789284416899

9. From “Travel with a purpose, corporate responsibility report 2012–2013,” 2013, retrieved from http://cr.hiltonworldwide.com/2012/_pdf/Hilton_2012CRR_PDF_v22.0.pdf

10. From “Hilton Worldwide Unveils “LightStay” Sustainability Measurement System,” 2010, retrieved from http://news.hilton.com/index.cfm/news/hilton-worldwide-unveils-lightstay-sustainability-measurement-system?tl=it

11. From “Hilton Worldwide announces 2011 LightStay sustainability results,” 2012, retrieved from http://news.hiltonworldwide.com/index.cfm/news/hilton-worldwide-announces-2011-lightstay-sustainability-results

12. From “Hilton introduces ‘Meet with purpose’ to inspire sustainable, healthy choices for events,” 2015, retrieved from http://news.hiltonworldwide.com/index.cfm/news/hilton-introduces-meet-with-purpose-to-inspire-sustainable-healthy-choices-for-events

13. Retrieved from Hilton Worldwide News http://news.hiltonworldwide.com/

14. ECPAT International is a global network of organizations working together for the elimination of child prostitution, child pornography and the trafficking of children for sexual purposes. It seeks to ensure that children everywhere enjoy their fundamental rights free and secure from all forms of commercial sexual exploitation. Retrieved from http://www.ecpat.net/

15. From “The Business Case for Corporate Social Responsibility: A review of concepts, research and practice,” by Carroll, A., & Shabana, K., 2010, International Journal of Management Reviews, 12 (1), 85–105.

16. From “Corporate social responsibility and labor turnover,” by Vitaliano, D., 2010, Corporate Governance, 10(5), 563–573.

17. From “Toward a better understanding of the link between ethical climate and job satisfaction: A multilevel analysis,” Wang, Y. & Hsieh, H., 2012), Journal of Business Ethics, 105, 535–545.

18. From “Strategic corporate social responsibility management for competitive advantage,” by Filho, J.M., Wanderley, L.S., Gomez, C.P., & Farache, F., 2010, BAR – Brazilian Administration Review, 7(3), 394–309.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Customer Case Study: Visma Spcs Improves Customer Experience with Semantic Kernel

Sophia Lagerkrans-Pandey

Jimmy Stridh

March 25th, 2024 0 1

Today we will dive into a customer case study. Thanks to the Visma team on their amazing partnership!

Visma Spcs, is a leading software company providing modern services to simplify accounting, HR, payroll, and more, and they’ve successfully integrated AI and Semantic Kernel to revolutionize their customer experience. With hundreds of thousands of customers across the Nordic region, Visma Spcs recognized the need to empower entrepreneurs and support accountants in achieving their goals.

“Improving customer experience is key,” affirms Roger Andersson, Head of Technology. “AI, powered by Semantic Kernel, helps us address these challenges.”

Understanding Customer Needs

“ We at Visma Spcs empower entrepreneurs to pursue their dreams and enable accountants to support their clients in their pursuit of achieving their goals. For us, it boils down to building the right things in the right way, and thereby creating value for our users. This is where AI enters the equation ” , says Product Experience Manager Johan Björnegård.

After conducting customer research, we have identified the following common needs among our customers:

• Finding the right information quickly and easily
• Asking questions and getting accurate answers
• Locating references to the correct documents and information

Addressing Customer Needs with AI

We at Visma Spcs wanted to improve the customer experience on the above points, says developer Jimmy Stridh. What we have done so far is to integrate AI and Semantic Kernel in using Retrieval Augmented Generation (RAG) to provide insightful answers over our existing product documentation. For this we’ve also utilized Azure OpenAI with GPT-4, and Azure AI Search. This gives us powerful tools to build on the existing RAG solution, as well as a clear path forward to where we’d like to take the user experience.

On Semantic Kernel

We chose Semantic Kernel as a solution as we are an organization that primarily uses .NET in our tech stack, and this provides smooth adoption throughout the company. We especially appreciated the following features:

• The extensive support and development around orchestration, agents and automation. We are deeply integrating our generative AI solutions in our products which means this is a vital area where we also see Microsoft and Semantic Kernel leading the way for developers.
• Abstraction and flexibility over AI model. As the landscape develops and specialized models appear along with new better foundation models, we have the option to select the correct model for every use-case.
• The proven track-record of Microsoft in developing copilots show their dependability as a partner in the ongoing evolution of this field.

Additionally, we appreciate the efforts being made on the framework, and the development of the agents moving forward – something that has become increasingly important as we have started new projects in the area.

Delivering in Real-Time Customer Interactions

To date, the AI-improved solution, called the AI Assistant , has been rolled out to hundreds of thousands of customers and the feedback and metrics has so far been very positive.

We’ve measured the following metrics to assess the performance of the AI solution:

• Usage rate: Several percent of daily active users interact with the chat daily, and we see a lot of recurring users.
• Correctness: Close to 90% of chat requests are resulting in a good response for the end-user, and trending upwards. Like many, we have seen the importance of having well-documented product information as a prerequisite for good performance.
• Latency to answer: Steady at a couple of seconds to first response. We observe that the ebb and flow of latency throughout the day, heavily depends on worldwide API usage more than anything.

The above metrics made us confident that we were on the right track and that the solution was working as expected.

What does the Customer Say

The feedback from customers has been overwhelmingly positive. They appreciate the convenience of receiving support outside of regular office hours, with around 40% of messages coming in when human support is unavailable. This 24/7 availability has been a significant benefit, allowing customers to get assistance whenever they need it most.

Furthermore, the AI Assistant has proven to be a valuable resource for the customer success team, particularly for new team members. When faced with customer inquiries in areas they are still learning about, the AI Assistant provides guidance and support, helping them navigate these challenges more effectively.

Semantic Kernel Team and their thoughts on the solution from Visma Spcs

“I was very impressed with the solution that Visma has implemented. It’s great to see how they have been able to use Semantic Kernel to improve the customer experience. It’s positive to see they’ve leveraged Semantic Kernel and the power of AI in their AI Assistant with hundreds of thousands of customers with 90% accuracy” says Matthew Bolanos.

What’s Next

After the initial success and rollout, we’re looking to improve the solution even further. We’re looking to do the following in the next phase:

• Create tight integrations into our applications, utilizing plugins and agents to enable action-taking from the AI Assistant.
• Employ the planner and agents concepts of Semantic Kernel to give a new dimension of the AI Assistant giving our services a new interface for the customer to interact with.
• Rollout to our full product suite containing dozens of products.

Choosing Semantic Kernel to enhance our customer experience has proven to be a great decision, providing significant benefits such as abstraction over large language models (LLMs), which allows us to select the most appropriate model for the task at hand. Additionally, its powerful orchestration capabilities have just begun to unveil their potential, suggesting that their importance will only grow as we continue to explore and utilize these features more extensively.

We’ve also appreciated being able to share our solution and experiences with PM Matthew Bolanos and the Semantic Kernel team as the rapid progress in the development of Semantic Kernel continues.

• Learn more about Visma Spcs and their offers here:  Visma Spcs 
• Learn more about Semantic Kernel: GitHub Microsoft Semantic Kernel, Semantic Kernel documentation | Microsoft Learn

Please reach out if you have any questions or feedback through our Semantic Kernel GitHub Discussion Channel . We look forward to hearing from you! We would also love your support, if you’ve enjoyed using Semantic Kernel, give us a star on GitHub .

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