Hilton Information System Case Study Essay

716 Words Mar 21st, 2013 3 Pages
1. What is Hilton's Core Business? Hilton is one of the most internationally recognized names in the lodging industry. It began as a single hotel in Cisco, Texas in 1919 started by Conrad Hilton and over the next almost hundred years developed into a portfolio of nearly 3,000 properties in 78 countries and a workforce of nearly 100,000 people. In order to finance the quick expansion model, Hilton Hotels Corporations morphed into a franchising model. Total real estate investment is measured in billions of dollars and the company simply did not have the means to raise the capital any other way. Hilton Hotels defined itself as a brand management company whose main focus was to take excellent care of its guests who took over …show more content…
Pros - Strengthen customer relationship. - Speed up the reservation process. - Give Hilton a big competitive advantage. - Differentiate Hilton from other hotels. - Give Hilton the ability to open more hotels at faster rate. Cons - High maintenance cost, the estimated maintenance cost is about 1 million dollars per year. - Almost impossible to measure the return on investment of the system. - Consistency of the delivery depends heavily on front desk staffs. - Being lulled into false sense of security by early success. - The room assignment flexibility for front desk staff is decreased a lot because 50% of the guest was already assigned to a room suitable for them by OnQ system.
3. What do you think Hilton leadership should do after the Blackstone acquisition? Should they further invest in CRM or simply maintain the status quo? What aspects of Hilton’s CRM should be strengthened, if any, and how?

It is imperative that Hilton leadership continue to further invest and evolve the CRM. The success of the CRM has caused competitors such as Marriot to acquire and implement similar systems. Hilton, for the time being, enjoys a competitive advantage as being a first mover with this technology. The case study text states that the competitors are years behind with it. Hilton should

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