Hilton Customer Service Case Study
Customer Service in Travel and Tourism
Hilton Hotels Case Study
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The ‘Understanding Travel and Tourism’ case study provides useful background information about Hilton Hotels. The first three sections of this case study are based on two presentations on the theme of ‘Reach Beyond’ given to employees of Hilton Hotels UK and Ireland as part of a major staff training programme.
Benefits of Good Customer Service
Guests tend to leave or defect from Hilton because:
• they become dissatisfied or • a competitor is thought to be better or because • a guest simply doesn’t care (in every market there are people who just don’t care about brand choice) or • the guest has no choice e.g. the location is not right for the traveller or, for business travellers, because company policy is to use another hotel chain.
What satisfies guests?
Every guest is different, however research by Hilton Hotels has identified some ‘drivers’ that influence whether a guest is satisfied with the stay or not.
Drivers of Guest Satisfaction – UK
Relative Impact on Overall Satisfaction
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The Importance of Loyalty
Guest survey research by Hilton suggests that in a typical year only 5% of existing customers remain loyal, however loyal customers tend to spend more and they account for 10% of revenue. Loyalty is important because satisfied and loyal guests:
• will make an effort to do business with Hilton • give 80% or more of their business to Hilton • ignore competitive offers, advertising and discounts • tend to be willing to accept higher pricing structures • remain with Hilton 8-10 times longer than unloyal guests • are worth 100 times more than unloyal guests, in the long term
It is worth noting that the importance of loyal guests is recognised by most travel and tourism organisations, and many often carry out promotions aimed
Hilton Hotels Case Study
[pic]
The ‘Understanding Travel and Tourism’ case study provides useful background information about Hilton Hotels. The first three sections of this case study are based on two presentations on the theme of ‘Reach Beyond’ given to employees of Hilton Hotels UK and Ireland as part of a major staff training programme.
Benefits of Good Customer Service
Guests tend to leave or defect from Hilton because:
• they become dissatisfied or • a competitor is thought to be better or because • a guest simply doesn’t care (in every market there are people who just don’t care about brand choice) or • the guest has no choice e.g. the location is not right for the traveller or, for business travellers, because company policy is to use another hotel chain.
What satisfies guests?
Every guest is different, however research by Hilton Hotels has identified some ‘drivers’ that influence whether a guest is satisfied with the stay or not.
Drivers of Guest Satisfaction – UK
Relative Impact on Overall Satisfaction
[pic]
The Importance of Loyalty
Guest survey research by Hilton suggests that in a typical year only 5% of existing customers remain loyal, however loyal customers tend to spend more and they account for 10% of revenue. Loyalty is important because satisfied and loyal guests:
• will make an effort to do business with Hilton • give 80% or more of their business to Hilton • ignore competitive offers, advertising and discounts • tend to be willing to accept higher pricing structures • remain with Hilton 8-10 times longer than unloyal guests • are worth 100 times more than unloyal guests, in the long term
It is worth noting that the importance of loyal guests is recognised by most travel and tourism organisations, and many often carry out promotions aimed