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1. HILTON WORLDWIDE

    1.1 COMPANY DESCRIPTION ………………………………………………….. 1

    1.2 COMPANY GOALS …………………………………………………………... 3




2. BALI, INDONESIA

    2.1 DESCRIPTION OF COUNTRY/REGION ………………………………….. 4

    2.2 CURRENT STATUS AS A TOURIST-RECEIVING DESTINATION ……. 9




3. POTENTIAL MARKET

    3.1 SOCIO-CULTURAL IMPACTS …..……….………….……………………. 10

    3.2 STRATEGIES TAKEN ……………………………………………………… 12




WORKS CITED ………………………………………………………………………. 14




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                                  1. HILTON WORLDWIDE

1.1 COMPANY DESCRIPTION

        As one of the most recognized names in the hotel industry, the Hilton company prides

itself on being a global leader in the hospitality industry as well as in their sustainability efforts.

With 10 brands they operate in 88 countries on 6 continents (North America, Latin America,

Europe, Africa, Asia and Australia). After more than 90 years in business, Hilton Worldwide

boasts a portfolio of more than 3,800 hotels around the globe.

        Due to their wide range of hotel brands and types, Hilton offers all levels of

accommodations from superior luxury hotel suites to affordable hotel room and everything in

between. Waldorf Astoria Hotels & Resorts and the Conrad Hotels & Resorts are their luxury

brands offer personalized service and one-of-a-kind experiences reflecting the culture and

history of their destinations. Their full-service hotels, Hilton Resorts & Hotels which is their most

popular brand, DoubleTree by Hilton and Embassy Suites Hotels, provide exceptional service

and appeal to both business and leisure travelers. While Hilton Resorts & Hotels and

DoubleTree have properties all over the world Embassy Suites Hotels only operate in North

America. The Hilton Garden Inn hotels are upscale yet affordable and the Hampton is their

moderately priced brand, throughout North America. Homewood Suites by Hilton and Home 2

Suites by Hilton are their extended stay brands in North America. Hilton Grand Vacations is a

members only club which offers luxury vacation ownership at more than 50 properties across

the United States.




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       Although their variety of hotel classes and star-ratings appeal to most markets, Hilton

Worldwide mostly targets those in the middle to upper class, by recognizing rising expectations

and demands.

       Hilton’s innovative approach has led to such industry standards as televisions in guest

rooms and environmental certifications for hotels. Other industry firsts accredited to Hilton are

the multi-hotel reservation system, the concept of franchising hotels and the popularity of airport

hotels. They also pride themselves on being the “first global hospitality brand to enter many

developing and emerging market economies.” (Hilton Worldwide)

       The Hilton Mission “To be the preeminent global hospitality company – the first choice

for guests, team members and owners alike” (Hilton Worldwide) as well as their Values -

Hospitality, Integrity, Leadership, Teamwork, Ownership, Now (Hilton Worldwide) demonstrate

their commitment to service and their desire to be thought of as an industry leader by

customers, employees and owners.




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1.2 COMPANY GOALS

        Currently, Hilton Worldwide has hundreds of projects in development around the world,

mainly in Asia. They manage natural resource use and maximize economic value by utilizing

both global and local experts for each of their hotels.

        The revenue management consolidated centre (RMCC) uses technology developed

specifically for Hilton Worldwide to set price and inventory strategies by analyzing past, current

and future trends.




         RMCC delivered market share growth for all participating hotels combined in each of the last 5
years, '06 to '10. Through Q3 2011 a sample of 100 hotels has achieved over 13% market share growth
since entering the RMCC. (Hilton Worldwide)

        Hilton’s goals in respect to Sustainability highlight their commitment to “fostering

economic growth and community involvement where we live and work around the world.” (Hilton

Worldwide) and their Sustainability Policy covers such items as complying with local, national

and international legislation, influence land use in harmony with nature and construction,

supporting initiatives within the local community and focusing on energy efficiency, C02

reduction, water efficiency, waste reduction and renewable energy.


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       Hilton worldwide believes in promoting cultural exchange and encouraging learning

about local history, traditions and way of life by guests, employees and the general public. Each

of their properties is built to reflect local heritage and culture and emphasizes native cuisine

using locally sourced ingredients. Heritage Tours, aimed at educating travelers about local

history and traditions, are offered at some of their properties around the world.

                                    2. BALI, INDONESIA

2.1 DESCRIPTION OF COUNTRY REGION

       Indonesia is a Southeast Asian country comprised of over 17,000 islands that are

divided up into 33 provinces. The islands that make up Indonesia border on each side with a

number of countries including: Papua New Guinea, East Timor, Singapore, Philippines, and

Australia.

       For the purpose of this assignment, we will be focusing on the ‘Island of the Gods’,

otherwise known as Bali. It is located in the region of the lesser Sunda province of Indonesia.

As of 2010 the population of Bali was 3.9 million with 93% of the population practicing the

Balinese Hinduism religion. The most widely spoken languages in Bali are Balinese and

Indonesian.

       The climate of Bali is very humid, with frequent rain showers mostly lasting from

November to April. The peak season for tourism in Bali runs from July to September, when the

weather is most likely to be on the dryer side.

       Bali is rather small, covering an area of only 5,632 sq. kilometers. It measures just 90km

along the north-south, and less than about 140km from East to West (Bali Guide). This makes it

a perfect destination to explore on day tours, and also contributes to the reason for the regions

average length of stay being short. According to the consulate general of the republic of

Indonesia, the foreign tourist’s average length of stay at star-rated hotels was 2.96 days, and

the domestic tourists 3.48 days. The range of accommodation that both types of visitors are


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staying at range from 1 to 5 star, with a majority of them choosing 4 star accommodation. There

are an abundance of hotels opening and already standing for travelers to choose from, which

could pose a threat to future occupancy rates, however presently it seems to be keeping up with

the international market.




       Bali is comprised of a few different regions, each offering unique geographical sites and

attractions making it an ideal destination for sustainable tourism development.

       Located in the center of the island is the region of Badung, famous for the ‘Nusa Dua’,

where Bali’s luxury hotels mainly are found.

       Next is Bangli, which has no beaches and is mostly made up of mountains, lakes and

rice fields. Ancient temples are also found in this region. This makes it an ideal location for

sustainable tourism development. The country could feature small grouped excursions into the

central regions of Bali to experience the authentic cultures and traditions of Balinese peoples.




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        Along the North runs Buleleng, a region containing a chain of volcanoes that extends

across the island for about 150 km.

        Gianyar, a central region south of Bangli holds some of South East Asia’s most ancient

artifacts and temples. Many goldsmiths and silversmiths are located in this region, and

contribute to the art market found here which exports its crafts and jewelries worldwide. These

attractions are beneficial for Bali, because they provide exciting things for visitors to enjoy when

visiting the region.




        Jembrana is known for being Bali’s “wild west” because of its rocky attributes and low

population. It is considered a vital area for agricultural development, and also the home to many

endangered species. Tourists enjoy diving and snorkeling in this area, and also hot springs.

(Bali Info)




        While Bali is rich with culture and historical attractions, the island offers much for visitors

to see and experience while spending time there. The unique aspect of this region is that there

are such a broad range of activities that Bali’s target market is a rather large demographic. It

ranges from a backpacking student to a luxury tourist to the business traveler. Bali has recently

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been an emerging destination for curious travelers and observed to be gaining more exposure

and recognition over the past few years. Its breathtaking beaches, volcanic mountains, lush

tropics and serene rice fields makes it easy to understand why it is recognized as the most

famous island in Indonesia.

       The prime attraction to the island of Bali is the picturesque beaches, which have become

quite populated with different ranges of accommodations. Most of these properties offer water

sports such as banana boating, parasailing, jet skiing, and surfing which draw quite a bit of

tourist attraction, however it is these regions where one can quite likely begin to observe the

harmful effects tourism has on the delicate aquatic life.




       Other recreational activities include white water rafting, cycling in the region of Ubud

(made famous by Elizabeth Gilbert and written about in her novel Eat, Prey, Love) and mountain

climbing to visit temples.




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       The country offers diverse Eco tours as well to their various national parks, some of

which play an essential role in the sustainability image Bali tries to represent. The Bali Barat

National Park in western Bali, for example, was founded in 1941 with the mission to protect the

Bali Starling and the last of the wild banten, from which most of the Balnese cattle descend.

(Wonderful Bali)

       Health and wellness has become an essential part of modern day life, and spa going has

become a key industry in Tourism and Travel. Those looking for therapeutic practices will often

travel far and spend top dollars to find services and facilities which are only offered in select

locations. Because of its rich culture and ancient traditions, Bali has become one of the most

visited places for spa-goers in South East Asia today. There are an abundance of luxury hotels

that feature unique services and facilities for guest pampering and rejuvenation. (Indo Travel)

With the rise in popularity of this industry in North America, it has allowed Bali to attract the

high-class traveler, looking for a unique cultural experience that cannot be found elesewhere.




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2.2 CURRENT STATUS AS A TOURIST-RECEIVING DESTINATION

       Travel and Leisure Magazine awarded Bali the Best Island award in 2010 and in 2011 it

ranked it 2nd behind Santorini, Greece. Foreign tourists prefer the safety of Bali to the larger

Muslim dominated islands of Indonesia. (Bali Statistics and fact)

       A boom in tourism to Bali can be largely credited to the success of the 2006 best-selling

memoir book by Elizabeth Gilbert - Eat, Pray, Love, and the 2010 theatre release of the film

starring Julia Roberts based on the book, part of which takes place at Ubud and Padang-

Padang Beach in Bali. Tour companies and resorts launched packages based on the book and

movie, offering luxurious pampering, yoga classes and self-discovery.

       In 2010, Bali exceeded their target of 2.3 million visitors. According to the Oxford

Business Group, the Australian tourist numbers to Bali increased by 50% for the first seven

months of 2010, which is significant given the importance of the Australian market to the regions

tourism industry.

       Most tourists to Bali come from Australia and Asia. Since 2011, Australia tops the list of

tourists to Bali, while China is the second-largest supplier with Japan in third place. Global hotel

Performance Results for January of 2011 read that for the Southeast Asian regions, three

markets achieved RevPAR increases of more than 20%. Bali rang in at the highest increase

with +27.1 percent. Not only that, but Bali experienced the only double-digit occupancy increase

rising 10.1 percent to 73.9 percent. And for Average Daily Rate Bali also showed an increase,

rising +15.4 percent. (Hotel Marketing) - These numbers show that tourism to Bali continues to

climb into 2012, and according to another blog, a total of 253,286 foreign tourists visited Bali in

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January of this year. This shows an increase of 21% from the same period last year. This

creates amazing opportunities for Indonesia’s economy, however it poses a serious threat on

the nature and delicate wildlife that makes the island so unique.




                                 3. POTENTIAL MARKET

3.1 SOCIO-CULTURAL IMPACTS OF TOURISM DEVELOPMENT

       Hilton Worldwide operates one resort hotel on the Southern Coast of Bali under their

Conrad luxury brand – The Conrad Bali.




       A second Conrad property – The Conrad Ubud Resort and Spa, an 80-villa luxury resort,

is due to open in late 2013.

       Some of the key impacts that the Hilton Worldwide global development will have on the

region of Bali are as follows:

              Believing that each of their hotels should reflect the local heritage and culture,

               and by focusing on preserving the cultural heritage of the communities where

               they operate, Hilton Worldwide has infused the unique culture of Indonesia into

               the look and feel of their accommodations.

              By teaching their guests, team members and the general public about local

               history, traditions and way of life, Hilton Worldwide is contributing to inter-cultural

               understanding and tolerance.


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   Hilton Worldwide serves local communities by volunteering time and resources to

    address local community needs not only by providing charitable contributions of

    food, clothing and shelter, but by also providing educational programs and

    knowledge to better prepare communities for disaster, and thus ensuring the

    preservation of natural resources and attractions.

   By employing local people and sourcing locally, Hilton Worldwide is not only

    providing economic benefits but also hopes to strengthen the community and

    enhance local tourism.

   Along with global cuisine, Balinese and Indonesian cuisine and produce offered

    at the resort further introduce guests to the local culture and traditions.

   Child trafficking and the sexual exploitation of children is a growing concern for

    the travel industry around the world, including in Indonesia. In 2011, Hilton

    Worldwide joined other travel industry members worldwide by signing ECPAT-

    USA’s Code of Conduct for the Protection of Children from Sexual Exploitation in

    the Travel and Tourism Industries. Although almost 1,000 travel industry

    members worldwide have signed the Code, Hilton Worldwide was only the fourth

    U.S. company to do so, behind Carlson Companies, Global Exchange’s Realty

    Tours and Delta Air. (Hilton Worldwide)




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3.2 STRATEGIES TAKEN

       There are a number of strategies being undertaken to ensure the sustainable

development of the tourism market in Bali. The government makes a noticeable effort to

minimize negative impacts made by tourism on the environment by monitoring the socio-cultural

impact on the region. In order for Bali to successfully develop these strategies, niche markets

must be developed and highlighted in order to create effective sustainable tourism. Bali is

already well on its way of doing so considering that they have many opportunities for these

markets, some of which include: spa tourism, adventure tourism, recreational tourism, eco

tourism and religious pilgrimages.

       Such efforts include eco-tours put together by various hotels, which are then offered to

guests in an attempt to influence the way they behave on their vacation in relation to preserving

the nature and culture of Bali. An example of a popular eco-tour can be found at Bali’s

Mangrove Information Centre, which was opened in 2003, with the main purpose being to study

and preserve the island’s costal mangrove trees. The nursery covers 200 hectares, and is

equipped with wooden boardwalk trails and private huts for mediation. Although these efforts

seem small in comparison to the rate at which hotels are being built, there is still hope that Bali

continues to make changes to preserve their unique culture and land.

       According to the United Nations Case Study of the Bali Declaration on Sustainable

Tourism Development, the government of Indonesia has an implemented plan of action for this

development. Although the plan is highlighted with strong ideas for moving forward in a positive



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direction, the plan’s ‘phase II’ has only been implemented for the years of 2006 to 2012, but

does not address anything beyond these dates.




       The Plan implemented by the Indonesian government for Bali highlights five areas:

           a) enhancing the role of tourism in socio-economic development and poverty

               reduction

           b) facilitation of travel and development of transport and other tourism-related

               infrastructure

           c) the socio-cultural and environmental management of tourism

           d) crisis and risk management in tourism

           e) human resources development in the tourism sector (“Bali Declaration on

               Sustainable Tourism Development”)

       The government of Indonesia recognizes that although tourism can be an extremely

useful tool for generating income to the region, if not managed and monitored properly it can

have a reverse effect and be rather damaging to the cultural heritage of Bali. For this reason,

the government is expecting to implement programs which will do things like generate local

employment, encourage community involvement, promote native pride and also allow tourism to

flourish while still respecting the integrity of the Bali culture and character. An important way for

the Bali Tourism Board to do is to attempt to control the volume of traffic into the country by

influencing travelers’ behaviour using effective marketing campaigns.

       If Indonesia follows through with these implementations properly and with determination,

it will allow future generations to still enjoy not only the environment of Bali but also the delicate

ancient culture.

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                                          Works Cited



“Bali Declaration on Sustainable Tourism Development”. Asia. Sustaining Tourism, 2002 - 2012.

       Web. 11 Apr. 2012.

Bali Guide. INM Internet Marketing Agency, 1997-2009. Web. 11 Apr. 2012.

Bali Info. Bali.com Ltd., 1996-2012. Web. 11 Apr. 2012.

“Bali Statistics and fact”. Bali. BaliAsk.com, 3 Jun. 2011. Web. 12 Apr. 2012.

Hilton Hotels & Resorts. Hilton Worldwide, 2012. Web. 12 Apr. 2012.

Hilton Worldwide. Hilton Worldwide, 2011. Web. 12 Apr. 2012.

Hotel Marketing. Hotel Marketing. Web. 11 Apr. 2012.

Indo Consulate. Consulate General of the Republic of Indonesia, 2012. Web. 11 Apr. 2012.

Sustainable Tourism. Sustainable Tourism, 2008. Web. 10 Apr. 2012.

Travel + Leisure. American Express Publishing Corporation, 1997 – 2012. Web. 12 Apr. 2012.

Wonderful Bali. Wonderful Bali, 1999-2008. Web. 11 Apr. 2012.

Wonderful Indonesia. Ministry of Tourism and Creative Economy, Republic of Indonesia, 2008.

       Web. 11 Apr. 2012.




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