Background

Hilton hotel began its service operation in the year 1919 by opening a small hotel in Cisco, Texas under the ownership of Conrad Hilton. In the year 1946 Hilton hotel announcedin going public under the name of Hilton Corporation as it had around 15 properties in 11 different states. After going public, Conrad Hilton decided to diversify its hotel by opening new casinos and small vacations lounges.

Around the year 2000, Hilton Hotels started setting up their hotels internationally by the name of Hilton International, as it had around 400 properties all around the state. In the year 2006, Hilton launched its 1000^th hotel in North America while having around total 3000 properties in 78 countries and having a workforce around 100,000. Due to theestablishment of so many new hotels, Hilton had become the largest lodging company in the world.

Hilton defined itself in the market as being an excellent service provider and taking great care of their customer as well. To capture the market share, its strategy was to franchising and aligning with the real estates for the growth in the capitalinvesting lodging industry.
Hilton Hotel Harvard Case Solution & Analysis

Introduction

For any hotel to run its business and also to provide excellent services, it is important for a hotel to have a proper customer relationship management system. The customer relationship management system is based on a technological tool providing a complete data and information regarding its customer. Hilton success mainly lies due to its CRM software by the name of Hilton OnQ which helps them in understanding and taking proactive decisions on its existing customers.

Hilton software OnQ basically functioned by gathering the data and information regarding its new customers. Whenever a new customer would stay in the hotel, the OnQ would generally gather all its information such as its needs, room location (Top / down floor), foods and its overall stay. When the customer would visit again, the management could take aproactive decision by ensuring that the rooms are prepared according to the customer preference and its likings. The software OnQ also helps in updating the changes of preference in its customers.

To measure the performance of the CRM software OnQ, a survey was conducted to its customers by the name of Satisfaction and Loyalty Tracking (SALT). It basically monitored the rating of its customers such as its overall experience, recommendations and its likeliness to return.

While having a professional staff of 700 professionals and 300 contractors in the information technology sector, the total overall budget would be around $240 million annually in order to fund the IS functions and also to pay for the brand program fees.

Hilton had some competition in the lodging industry such as its biggest rival was Marriot International on which these two companies dominate in the U.S lodging market and among few others such as Intercontinental Hospitality Group (IHG) and Accor. In gaining the competitive advantage among its competitors, Hilton has used the strategy in maintaining Customer Relationship Management by the use of Information Technology by changing and reinforcing its Hilton OnQ software..................

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