Value Chain Analysis of Hilton Hotel

Hilton Worldwide Holding is a hotel chain and hospitality American multinational company. Conrad Hilton started the chain hotel company in 1919. Today, we’ll discuss the value chain analysis of Hilton Hotel supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers and Vendors of Hilton Hotel

• Home 2
• Homewood Suites
• Tru
• Hampton
• Hilton Garden Inn
• Motto
• Tempo
• Embassy Suites
• Tapestry Collection
• Double Tree
• Curio

The Value chain analysis of Hilton Hotel supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of Hilton Hotel value chain analysis company example as follows;

Value Chain Analysis of Hilton Hotel

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Hilton Hotel supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Hilton Hotel

Some of the five main primary activities in the value chain analysis of Hilton Hotel supply chain analysis are as follows;

Inbound Logistics of Hilton Hotel

I-Diverse Supplier Network

Hilton Hotel has established a very large and diverse range of suppliers network comprising 2400 suppliers and 288 partners in the hospitality industry worldwide. The objective of a diverse suppliers network is to promote indigenous small businesses. The hotel brand has made a strong commitment to the supplier diversity program; the annual revenue of 22 shows the following facts and figures;

• Invested 334 million USD in supplier diversity
• 288 new suppliers
• Over 2400 diverse businesses
• Doubling the sourcing suppliers
• Network of 14000 properties
• 1086 Women-Owned Supplier Businesses
• 153 Veteran Owned Supplier Businesses
• Minority-Owned Businesses 1141
• LGBTQ 13
• A person with Disability 44
• 2169 small businesses

II-Awards & Recognition

Hilton Hotel has earned global recognition for building and maintaining supplier diversity programs. Some of the main supplier diversity awards that the hospitality brand has received over the years are as follows;

• Bronze 2022 Stevie Winner
• American Best in Business
• Top 100 Procurement Companies
• Excellence in Procurement Award
• Top Employer for Diversity Inclusion
• NBIC Best of the Best 2022

III-Suppliers Regulations & Standards

Hilton Hotel is operating its business in the hospitality industry and serving guests. The company can’t afford the lags in quality and disruption in supplies. In order to ensure the quality and time delivery of supplies; the chain brand has set up clear regulations and a supplier code of conduct. In case of non-compliance; the hospitality brand would immediately terminate the contract with suppliers.

Outbound Logistics of Hilton Hotel

I-Chain Hotel Network

Hilton Hotel has established a worldwide network of chain hotels of approximately 7530 hotels. They’re running their hospitality business and serving customers under 22 different brands. However, the global network of hotels and restaurants helps the company distribute its hospitality services to guests, travelers, and visitors in various locations worldwide.

II-Transportation Service

Hilton Hotel has partnered up with various 3rd party transportation service providers and individual drivers. They provide pickup and drop services to the hotel’s guests and visitors on their behalf and request. It further amplifies the type of services that the company provides to the customers and guests.

Operations of Hilton Hotel

I-Multiple Operations

Hilton Hotel engages in multiple operations of managing the worldwide network of over 7500 properties; thousands of rooms; guest service staff, and other supply chain operations. Along with serving customers, the hotel brand needs to perform repair and maintenance of its properties and rooms. It allows the company to maintain the customer satisfaction level.

II-Operation System

Hilton Hotel employs an OnQ operation management system to manage its staff, properties, rooms, check-in, and check-out of visitors and guests. It is customized operation management software relevant to the unique needs and requirements of the chain hotel brand.

Marketing & Sales of Hilton Hotel

I-Partnership with Airlines

Hilton Hotel partners with airlines, traveling agents, and tourism service-providing companies. They refer guests, travelers, and visitors to the chain hotel brand and earn their commission. Along with partnership; Hilton Hotel runs its marketing and promotional advertisement in specific locations like airports, guest waiting areas, and billboards on roads.

II-Relationship With Guests

Hilton Hotel focuses on building long-term relationships with its customers and guests. It allows the company to make them repeat visitors. In order to promote brand loyalty, the chain hotel offers discounts, access to the room selection, and other exclusive services to the hotel brand.

Services of Hilton Hotel

Hilton Hotel offers a wide range of hospitality services to travelers, visitors, and guests in order to build a long-term relationship with them. Some of them are as follows;

• Loyalty programs
• Food and dining
• Boarding
• Restaurants
• Lodging and stay

Supporting Activities of Hilton Hotel

Some of the main supporting activities in the value chain analysis of Hilton Hotel supply chain analysis are as follows;

Infrastructure of Hilton Hotel

Hilton Hotel has established a large infrastructure of properties, hotels, well-furnished rooms, guest-serving staff, suppliers network, and partnerships with 3rd service providers. Well-established infrastructure helps the company to smoothly perform its worldwide operations and keep serving customers.

HRM of Hilton Hotel

Hilton Hotel has employed over 178000 employees to manage its global operations. The human resource management department plays a key role in conducting training programs for employees; building a healthy and professional workplace environment; offering equal employment opportunities for all.

Technological Development of Hilton Hotel

Hilton Hotels invests a significant amount of capital resources in installing the latest technological tools, equipment, and appliances in its hotels and restaurants. It allows the chain hotel brand to achieve efficiency and provide a great lodging experience to the guests and visitors.

Procurement of Hilton Hotel

Hilton Hotel is highly careful and cautious about ethical sourcing and procurement of supplies and materials. In fact, the company has set clear regulations and a code of conduct for suppliers to make sure that they engage in ethical and sustaining practices and comply with human rights standards.

Conclusion: Hilton Hotel Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of Hilton Hotel; we have realized that Hilton Hotel is the world’s leading chain hotel brand. If you are learning about the Hilton Hotel value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.