środa, 26 marca 2025

Tourism Product Management and Industry Analysis - Hilton Worldwide

  

Table of Contents

Chapter 1: Introduction

1.1   Aim and Objectives of the Blog Report

1.2   Structure of the Blog Report

Chapter 2: Tourism product and the role of components

2.1 Tourism Products and Their Components, Key Features and Examples

2.2 The Role of the Key Components of the Tourism Sector

Chapter 3: Stakeholder Analysis

3.1 The History of Hilton Worldwide and their development

3.2 The Present State of Hilton Worldwide and their operation

3.3 The Competitors of Hilton Worldwide and their impacts

3.4 The Stakeholders of Hilton Worldwide and their expectations

Chapter 4: Challenges and opportunities

4.1 The SWOT Analysis of Hilton Worldwide

4.2 The Sustainable Strategies of Hilton Worldwide

Chapter 5: Conclusion and Recommendations

References

CHAPTER ONE: INTRODUCTION

1.1 Aims and Objectives of the Blog Report

This blog report aims to clearly explain Hilton World wide’s tourism product management. The report also aims to show how Hilton operates within the tourism industry. An important objective is to study the main stakeholders linked with Hilton Worldwide. The report will highlight Hilton’s history, competitors, and present company operations. Another key objective is to conduct a detailed SWOT analysis for Hilton. Furthermore, the report aims to explore sustainable practices used by Hilton Worldwide. The final objective is to offer valuable recommendations based on this detailed review. These objectives will help readers clearly understand Hilton Worldwide’s tourism products.

1.2 Structure of the Blog Report

The blog report has five clear and simple chapters to guide readers. After this introduction, chapter two clearly defines tourism products and their components. It also analyses the role of these components within the tourism sector. Chapter three provides a stakeholder analysis related directly to Hilton Worldwide. It discusses Hilton’s history, competitors, current status, and key stakeholders' expectations. Chapter four carefully explores Hilton Worldwide’s main challenges and opportunities through SWOT analysis. It also explains Hilton’s strategies for sustainability. Lastly, chapter five clearly summarises the report's main findings and provides helpful recommendations.

 

CHAPTER TWO: UNDERSTANDING TOURISM PRODUCT AND ANALYSING THE ROLE OF COMPONENTS OF THE TOURISM SECTOR WITHIN THE BROADER INDUSTRY

2.1 Tourism Products and Their Components, Key Features and Examples

A tourism product is the full travel experience offered to customers. It includes services, places, and activities enjoyed during a trip (Camilleri, 2018). A tourism product is not a single item like food or drinks. Instead, it is a mix of things that give value to travellers. These things are designed to meet the needs of tourists.

Figure: Tourism

Source: (George, 2021)

The main components of a tourism product include attractions, transport, accommodation, and services. Attractions can be natural, cultural, or man-made places of interest. These include beaches, museums, parks, and famous buildings (Walker, 2021). Transport includes air, road, and sea travel options used by visitors. Accommodation refers to places where guests stay, such as hotels and hostels. Services include food, travel agents, tour guides, and other support (Inkson and Minnaert, 2022).

Each tourism product also has key features that add to its value. One feature is intangibility, meaning customers cannot touch the full experience. Another feature is perishability, as travel services cannot be stored for later. Variability is also a feature, since services can change with each visit (Fletcher et al., 2018). Another key feature is inseparability, as services are given and used at the same time (Holloway and Humphries, 2022).

Examples of tourism products include package holidays, guided city tours, or hotel stays. A guided tour of London is one simple example of a tourism product. A stay at a Hilton hotel with meals and spa access is another. Cruises are also tourism products, offering travel and services in one. A ski holiday in the Alps with lessons and gear is also an example.

Tourism products offer full experiences through services and activities. These products help create value and enjoyment for different kinds of travellers (George, 2021). When these are well-planned, they support tourism growth and repeat visits.

2.2 The Role of the Key Components of the Tourism Sector

The tourism industry is made up of several key components that work together. Each part helps to shape the travel experience for visitors across the world. The main parts include aviation, hospitality, tour operators, and travel agencies (Page and Connell, 2020). These parts link together to form a strong tourism network. They also help the economy and support millions of jobs across many countries.

Figure: Types of Tourism

Source: (Inkson and Minnaert, 2022)

Aviation is important because it connects people to different destinations. Airlines help travellers move quickly and safely across long distances. Planes allow more tourists to visit places in other countries. Without flights, many far places would not be easy to reach. Aviation also supports business travel and global tourism growth (Buhalis, 2022).

The hospitality sector plays a major role in the visitor experience. It includes hotels, resorts, and restaurants that offer rest and comfort. Guests expect clean rooms, good service, and helpful staff during their stay. Hospitality adds value to the tourism product and helps increase tourist satisfaction (Walker, 2021). Large hotel groups like Hilton Worldwide offer many services to meet visitor needs.

Intermediaries like tour operators and travel agencies support both suppliers and customers. They create packages that include travel, stays, and activities (Camilleri, 2018). These packages help customers plan trips more easily and save time. Travel agents also offer advice and help in choosing the right product. This makes the booking process simple and less stressful (Morrison, 2022).

Each sector connects with others to support the wider tourism industry. Flights bring tourists, hotels host them, and travel agents guide the process. When these sectors work well together, the tourism industry grows stronger. Smooth teamwork between all parts leads to better travel experiences (Inkson and Minnaert, 2022). This helps countries improve their tourism image and attract repeat visits.

CHAPTER THREE: STAKEHOLDER ANALYSIS

3.1 The History of Hilton Worldwide and their development

 

Figure: Hilton’s first hotel with cold running water and air- conditioning in the public rooms (Waco Hilton, U.S.A.).

Source: (Hilton, 2024)

Hilton Worldwide is one of the oldest hotel groups in the world. The first Hilton hotel was opened by Conrad Hilton in 1919. It was a small hotel in Texas called the Mobley Hotel (Rutherford, 2021). In the early years, the company grew slowly across the United States. Hilton became the first hotel group to be listed on the New York Stock Exchange in 1946 (Zeng, 2021). Over time, the company gained global attention for its high service standards.

In the 1950s, Hilton became one of the first global hotel chains. The company opened hotels in international cities like Madrid and Istanbul. This helped Hilton grow its brand across new tourism markets (Walker, 2021). By the 1980s, Hilton had built a strong name in business and luxury travel. The company kept growing by opening hotels in Asia, Europe, and Africa. In 2007, Hilton was bought by Blackstone Group, which led to fast expansion (Santos and Lima, 2024).

In 2013, Hilton Worldwide went public again through a large share offering. Over the next years, the group focused more on brand growth and technology. Hilton launched many new brands like Curio Collection and Tru by Hilton (Jia et al., 2022). The company also invested in its loyalty programme, Hilton Honors, to attract more guests. Hilton focused on offering digital keys, mobile check-in, and more smart services (Busulwa et al., 2022).

Today, Hilton owns over 8,400 hotels across 140 countries (Hilton, 2024). The company has more than 1.25 million hotel rooms worldwide. Hilton has also focused on sustainability and travel innovation in recent years. Its strong growth and guest focus helped it become a global leader in hospitality. The long history shows steady growth, change, and strong service values.

3.2 The Present State of Hilton Worldwide and their operation

Figure: Old and New Hilton Properties

Source: (Hilton, 2024)

Hilton Worldwide is now one of the largest hotel groups globally. The company manages, owns, and franchises thousands of hotels and resorts. Hilton operates in over 140 countries and territories across the world (Hilton, 2024). Its portfolio includes more than 8,400 hotels and over 1.25 million rooms. These rooms are spread across 24 well-known global brands, from luxury to budget.

Hilton is currently focused on smart growth and digital service. The company uses new tools to improve guest comfort and experience. Digital key access, contactless check-in, and room selection are now common (Busulwa et al., 2022). These features are used by millions of guests each year. Hilton Honors, the loyalty scheme, supports this digital strategy. More than 210 million members have joined Hilton Honors worldwide (Hilton, 2024).

The company runs its business through two main segments. One segment is for managing and franchising hotel properties. The other includes Hilton-owned and leased hotels (Hilton, 2023). Most income now comes from franchise and management fees. This helps reduce costs and increase long-term income. Hilton continues to grow by signing new hotel deals in key markets.

Recent numbers show Hilton’s strong financial and market position. In 2024, Hilton earned a net income of £1.21 billion (Hilton, 2024). The company also reached an adjusted EBITDA of £2.70 billion in the same year. Hilton opened 98,400 new rooms globally during 2024. The group also approved 34,200 rooms for future hotel development. As a result, Hilton’s pipeline grew to nearly 498,600 rooms (Hilton, 2024).

Hilton also reported a net unit growth of 7.3 percent in 2024. This shows that the company is expanding faster than many competitors. Most new rooms are being added outside the United States. This global growth helps Hilton enter new markets and attract new visitors. Luxury hotels are also being added to meet high-end travel demand (Fachada, 2023).

In terms of guest satisfaction, Hilton has made strong progress. The company was named the number one best workplace in the world (Hilton, 2023). High staff satisfaction helps deliver better service to all hotel guests. This also helps reduce staff turnover and improve service quality (George, 2021). Happy staff and happy guests make strong business success possible.

Sustainability is also a key focus in Hilton’s current plans. The company is working to lower waste and use more clean energy (Legrand et al., 2022). A programme called “Travel with Purpose” supports these actions. Hilton aims to cut carbon emissions and support local communities (Fenech, 2024). More hotels now use LED lighting and clean energy sources to reduce harm.

Hilton is also investing more in safety, hygiene, and new travel ideas. The company is testing smart room controls and better guest apps. Hilton wants to stay ready for new trends in global tourism (Buhalis et al., 2023). This focus on service, staff, growth, and green change keeps Hilton strong. The company is now well placed for future success in hospitality.

3.3 The Competitors of Hilton Worldwide and their impacts

Figure: Major Competitors of Hilton Worldwide

Source: (Santos and Lima, 2024)

Hilton Worldwide faces strong competition from other global hotel groups. Some of the main rivals include Marriott International, Hyatt Hotels, and InterContinental Hotels Group (IHG). These hotel groups also operate in many countries and offer similar services. Each brand has many hotel types, from budget to luxury (Holloway and Humphries, 2022). These companies also grow fast in popular travel markets worldwide.

Marriott International is one of the largest hotel groups today. It has more rooms than Hilton and offers many hotel brands. Marriott also uses strong loyalty programmes and new digital tools (Hayes et al., 2021). Hyatt Hotels is also a big player in the luxury and business market. It competes with Hilton’s top brands like Waldorf Astoria and Conrad. IHG runs Holiday Inn and other brands that target family and mid-range guests (George, 2021).

Online platforms like Airbnb also add new challenges to Hilton. Many tourists now use Airbnb for cheaper or more local stays. These changes in guest habits have pushed Hilton to act fast. Hilton has added more mid-range and lifestyle brands to stay competitive. Brands like Tru, Tapestry, and Motto were created to reach more guests (Zeng, 2021). This helps Hilton offer more choices and attract new market groups.

The strong competition has made Hilton focus more on innovation. The group now uses digital keys, mobile check-in, and smart room tools (Busulwa et al., 2022). Hilton has also worked hard to improve customer loyalty and staff training. The company invests in guest safety, green energy, and service design. These actions help Hilton stay strong in the changing travel market (Santos and Lima, 2024). The need to stand out has helped Hilton improve its value and service.

3.4 The Stakeholders of Hilton Worldwide and their expectations

Figure: Hilton 2021 CEO Light & Warmth Award Winners

Source: (Hilton, 2021)

Employees are one of the most important groups linked with Hilton Worldwide. They expect fair pay, job safety, and a good work culture. Training, career growth, and support are also key staff needs (Walker, 2021). Workers want safe spaces and equal chances for all people. In return, good staff performance helps Hilton deliver better guest service. Happy workers can make hotel guests feel more welcome and valued. Hilton is known for strong support in training and staff well-being. In fact, Hilton was ranked the best workplace in the world (Hilton, 2023). That award shows that staff feel proud and well-treated.

Consumers are also key stakeholders in the hospitality industry. Guests expect clean rooms, fast service, and friendly hotel staff. Most also want smooth booking, digital tools, and full value for money (George, 2021). Some look for budget stays, while others seek luxury options. Modern travellers want safety, green action, and more comfort from hotels. Hilton offers contactless check-in, room control, and smart services (Busulwa et al., 2022). The Hilton Honors scheme also gives loyal guests extra rewards and benefits.

Investors are another important group with clear expectations. They expect strong profits, clear goals, and long-term company growth. Investors also want low risk and good leadership for steady business results (Jia et al., 2022). Hilton gives updates through annual reports and investor calls. The company’s 2024 report showed strong growth and steady returns (Hilton, 2024). That success helps investors stay confident and loyal to the brand.

Each group looks for value, trust, and clear support from Hilton. The company must meet all needs to stay strong in the market. Meeting these expectations helps build success across all areas of the business (Harrison et al., 2022).

CHAPTER 4: ANALYSING THE CHALLENGES AND OPPORTUNITIES ASSOCIATED WITH THE MANAGEMENT OF TOURISM PRODUCTS

4.1 The SWOT Analysis of Hilton Worldwide

A SWOT analysis helps to understand Hilton World wide’s current position. It shows the strengths, weaknesses, opportunities, and threats in the business. Each part is useful for building a strong and smart company plan.

Table: Hilton World wide’s SWOT Analysis

Strengths: Hilton is a trusted brand with over 100 years of history. The group runs more than 8,400 hotels in 140 countries (Hilton, 2024). Its strong global name helps attract guests from all markets. Hilton Honours also gives rewards to over 210 million members. The loyalty scheme helps grow bookings and guest satisfaction (Harrison et al., 2022). Hilton is also known for digital tools and smart services. These tools make check-in, room access, and bookings fast and easy (Busulwa et al., 2022).

Weaknesses: Hilton depends mostly on third-party owners and franchise models. This means service levels may not be the same across all hotels. Guest experience can change depending on the hotel location and owner. Some smaller hotel brands offer lower prices to attract more guests. This can make it hard for Hilton to win budget travellers (George, 2021). Also, large hotel chains often take more time to change quickly.

Opportunities: Hilton has a chance to grow in new global markets. The group is adding more hotels in Asia, Europe, and Africa (Hilton, 2023). There is also more focus on eco-friendly services and green design. Hilton’s “Travel with Purpose” plan supports this growth through clean actions (Fenech, 2024). New technology can also help improve guest service and lower costs. Growing trends like wellness travel and digital stays offer new value (Legrand et al., 2022).

Threats: The hotel industry still faces risk from economic changes and travel rules. Price wars with low-cost hotels can reduce profit margins. Online platforms like Airbnb are also growing fast in many markets (Santos and Lima, 2024). Climate risks and waste rules also create future challenges for hotel chains. Meeting customer needs and laws will need more smart planning.

4.2 The Sustainable Strategies of Hilton Worldwide

Figure: Hilton’s Travel with Purpose

Source: (Hilton, 2023)

Hilton Worldwide has built strong plans to support green tourism goals. The company is working hard to reduce its impact on the planet. Hilton calls this plan “Travel with Purpose” and uses it worldwide (Hilton, 2023). The plan includes clear targets for cutting energy, waste, and water use. These targets follow global climate goals and support the environment.

One key strategy is to lower carbon emissions across all hotel brands. Hilton has set science-based goals to reduce energy and carbon use (Legrand et al., 2022). The company aims to cut carbon by up to 75 percent by 2030. Hilton also works to use clean energy in more of its hotels. In Europe, about 30 percent of its hotels now use green energy (Hilton, 2023). The company is also testing new tech to support future clean energy steps.

Waste control is also part of Hilton’s main green goals. Hotels are working to cut food waste using new tools and training. Many hotels have started food donation projects in their local areas (Fenech, 2024). Hilton has also reduced single-use plastics in guest rooms and kitchens. Bulk bathroom items have now replaced small plastic bottles across most hotels.

Water use is another key part of Hilton’s green plans. The company wants to cut water use by 50 percent by 2030. Smart systems now help hotels track and manage water more effectively (Hilton, 2023). Staff also receive training on how to support water-saving goals.

Hilton also helps local groups through the Hilton Global Foundation. The group gives support to many green and social projects worldwide. All these actions help meet both guest and community needs. Hilton’s work supports the wider push for sustainable tourism worldwide (Molina-Collado et al., 2022). These steps also improve guest trust and support long-term business success.

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS

Hilton Worldwide is one of the leading names in global hospitality. The company has grown through smart planning and brand strength (Zeng, 2021). Its hotel brands offer value to both leisure and business travellers. Hilton also supports guest comfort through clean rooms and quality service. The use of digital tools helps make the guest journey smooth (Busulwa et al., 2022). The loyalty programme also builds strong guest relationships and repeat bookings. Hilton continues to grow in global markets while staying focused on sustainability (Hilton, 2023). Its actions support both planet goals and long-term business success (Legrand et al., 2022). To stay strong in a changing world, more steps are still needed. Hilton should invest more in clean energy for all hotel sites. The use of solar panels and better systems can help reduce waste. More hotels should also offer local food options to support communities. This also meets the new guest demand for green choices (Fenech, 2024). Staff should receive more training on eco plans and guest needs. This can help improve service, safety, and green actions at the same time. Hilton should also grow new hotel brands for young and low-cost travellers. These steps can help the company stay ahead in future tourism markets.

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Busulwa, R., Pickering, M. and Mao, I. (2022) ‘Digital transformation and hospitality management competencies: Toward an integrative framework’, International Journal of Hospitality Management, 102, 103132.

Camilleri, M.A. (2018) ‘The Tourism Industry: An Overview’, in Travel Marketing, Tourism Economics and the Airline Product. Cham: Springer Nature, pp. 3–27.

Fachada, B.C. (2023) Business Adaptive Strategies in Crisis: The case of Hilton Hotels Worldwide. Master’s thesis. Universidade Catolica Portuguesa (Portugal).

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Hayes, D.K., Hayes, J.D. and Hayes, P.A. (2021) Revenue Management for the Hospitality Industry. Hoboken: John Wiley & Sons.

Hilton (2021). Hilton 2021 CEO Light & Warmth Award Winners. [online] Stories From Hilton. Available at: https://stories.hilton.com/releases/hilton-2021-ceo-light-warmth-award-winners.

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Tourism Product Management and Industry Analysis - Hilton Worldwide

    Table of Contents Chapter 1: Introduction 1.1    Aim and Objectives of the Blog Report 1.2    Structure of the Blog Report Chapter 2: ...