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5 Digital Transformation in Hotels Case Studies [2024]
In the rapidly evolving hospitality industry, digital transformation has become a pivotal strategy for hotels striving to enhance guest experiences and optimize operational efficacy. The following five case studies illustrate how diverse hotel chains—from luxury resorts to eco-friendly retreats—have successfully implemented digital technologies to meet the unique demands of their clientele and setting. Each case study thoroughly examines the objectives, challenges, solutions, and outcomes associated with their specific digital initiatives. These examples showcase how hotels use technology to redefine hospitality, improve sustainability, and stay competitive in a digitally-driven market.
Related: Digital Transformation Case Studies
Case Study 1: Digital Transformation at LuxStay Hotels
In an era where digital innovation is supreme, LuxStay Hotels recognized the transformative power of technology to redefine the hospitality landscape. Operating a chain of high-end hotels globally, LuxStay was challenged by evolving consumer expectations and the need for operational agility. Determined to enhance its competitive edge, LuxStay embarked on a strategic digital transformation to revolutionize guest experiences and operational processes.
The primary goal of LuxStay Hotels was to enhance guest experiences by leveraging digital technology to offer more personalized services and streamline guest interactions. Another critical objective was to increase operational efficiency across all hotel operations, reducing costs and improving service delivery through automation. Additionally, LuxStay aimed to utilize better-collected guest data to refine their marketing strategies and service offerings, ensuring each guest felt uniquely valued and satisfied.
- Legacy Systems: Outdated IT infrastructure that was not integrated, leading to inefficiencies and data silos.
- Customer Expectations: Increasing demand for digital services such as mobile check-in/out, room customization via apps, and contactless interactions.
- Staff Adaptability: Resistance from staff accustomed to traditional methods and processes.
Solutions Implemented
- Integrated Property Management System (PMS): LuxStay implemented a new PMS that integrated all hotel functions—front desk, housekeeping, reservations, and billing—into a single platform to streamline operations and improve data flow.
- Mobile Application Development: Developed a comprehensive mobile app that allowed guests to manage their entire stay—from booking to checkout, including room customization options like temperature control, lighting, and entertainment systems.
- Data Analytics Platform: Deployed a data analytics platform to harness customer data for personalized marketing and to enhance guest experiences based on previous preferences and feedback.
- Staff Training Programs: Comprehensive training programs were introduced to help staff adapt to new technologies and to foster a culture of innovation and constant improvement.
- Increased Guest Satisfaction: Guest satisfaction scores increased by 25% due to improved personalization and faster service delivery.
- Operational Efficiency: Reduced manual processes by 40%, leading to cost savings and quicker response times to guest needs.
- Revenue Growth: Saw a 15% increase in revenue through upselling personalized services and promotions based on guest preferences and historical data.
Looking Ahead
As LuxStay looks toward the future, its strategy focuses on harnessing emerging technologies such as AI and the Internet of Things (IoT) to customize guest experiences further and optimize operational efficiency. Plans include deploying AI-driven chatbots for real-time customer service and implementing IoT for intelligent energy management and predictive maintenance within properties. By staying at the forefront of technological adoption, LuxStay aims not only to meet but exceed the evolving expectations of modern travelers, ensuring a seamless and memorable hospitality experience.
Future Directions
In the next phase of its digital transformation, LuxStay is exploring innovative sustainability practices, aiming to integrate renewable energy sources and smart building technologies into its hotels. This initiative is expected to reduce the chain’s carbon footprint and attract eco-conscious guests. Exploring biometric technology for enhanced security and customer convenience is also on the roadmap as LuxStay redefines luxury hospitality through technology.
This case study showcases LuxStay Hotels as a leader in digital innovation within the hospitality industry, setting benchmarks for others to follow in creating a smarter, more connected guest experience.
Case Study 2: Digonetal Overhaul at Coastal Retreat Resorts
Facing a rapidly evolving hospitality sector driven by digital advancements, Coastal Retreat Resorts, a boutique hotel chain located primarily in coastal regions, recognized the need to modernize its operations and guest services to maintain competitiveness. The chain embarked on a digital transformation initiative to harness cutting-edge technologies to revolutionize the guest experience and optimize operational effectiveness.
Coastal Retreat Resorts aimed to fundamentally enhance the guest experience by introducing digital solutions that offer unparalleled convenience and personalization. The chain sought to improve operational efficiency by automating routine tasks and integrating systems across properties to streamline management processes. Additionally, advanced data analytics was targeted to deepen understanding of guest preferences and effectively tailor marketing efforts.
- Scattered Property Management: Coastal properties operated semi-independently with diverse systems, creating inefficiencies and complicating central oversight.
- Seasonal Fluctuations: High variability in guest influx due to the seasonal nature of coastal tourism requires flexible and scalable digital solutions.
- Digital Adoption: The existing workforce was predominantly accustomed to non-digital processes, posing a significant hurdle in adopting new technologies.
- Cloud-Based Management System: Implemented a unified, cloud-based property management system across all locations to centralize data and operations, enhancing real-time decision-making capabilities.
- Dynamic Pricing Tools: Integrated dynamic pricing software that adjusts room rates in real time based on market demand, weather conditions, and local events, maximizing revenue, particularly during peak seasons.
- Guest Engagement Platform: Introduced an interactive platform enabling guests to engage with the hotel’s amenities digitally, from booking spa appointments to ordering room service via their devices.
- Employee Upskilling Initiatives: Launched extensive training programs to upskill employees, focusing on digital literacy and customer service in the digital context.
- Streamlined Operations: Achieved a 30% improvement in operational efficiency through automation and better resource management.
- Enhanced Guest Engagement: Recorded a 50% increase in guest engagement with on-site amenities and services, driven by the ease of digital access.
- Revenue Optimization: Saw a 20% increase in revenue through better room rate management and higher guest spending on amenities.
Coastal Retreat Resorts is now exploring integrating virtual reality (VR) experiences to offer virtual tours of the locality and augmented reality (AR) for immersive in-room entertainment options. This initiative aims to blend physical and digital experiences, enhancing the unique coastal charm with digital innovation.
The next strategic move includes adopting sustainable technologies such as solar-powered systems and smart water management to align with global environmental conservation trends and appeal to eco-friendly tourists. Coastal Retreat Resorts plans to explore partnerships with tech firms to co-develop bespoke hospitality solutions that could set new industry standards for guest-centric technology.
This case study demonstrates Coastal Retreat Resorts’ commitment to embracing digital transformation to deliver superior guest experiences and operational excellence, positioning them as a forward-thinking leader in boutique hospitality.
Case Study 3: Digital Innovation at City Center Business Hotels
City Center Business Hotels, a chain specializing in accommodations for business travelers in major urban areas, faced the challenge of adapting to the digital expectations of its professional clientele. The hotel chain initiated a comprehensive digital transformation focused on smart technology integrations and enhanced business services to stay competitive in a market where efficiency and connectivity are paramount.
The key objective for City Center Business Hotels was to streamline the business travel experience through technological enhancements that offer speed, efficiency, and connectivity. The chain aimed to optimize operational processes to reduce wait times and improve service responsiveness. Another critical goal was to employ data-driven strategies to customize services for business travelers, enhancing guest loyalty and satisfaction.
- High Expectations for Connectivity: Business travelers demand high-speed internet and seamless digital connectivity for meetings and work-related tasks.
- Efficiency in Services: The need for quick and efficient services, from check-in to conference facilities, is higher among business travelers than leisure guests.
- Integration of Business Amenities: Integrating advanced business amenities with traditional hotel services to create a cohesive experience posed a significant challenge.
- High-Speed Connectivity Upgrades: Upgraded the entire network infrastructure to provide high-speed, reliable Wi-Fi access throughout the hotels, including enhanced digital conferencing capabilities in meeting rooms.
- Automated Check-In/Out Kiosks: Installed automated kiosks to expedite the check-in and check-out processes, reducing wait times and allowing guests more control over their stay.
- Smart Room Technology: Implemented smart room technology that enables guests to control room settings such as lighting, temperature, and entertainment systems through a mobile app or voice commands.
- Business Analytics Suite: Deployed a business analytics suite to gather and analyze guest data, enabling personalized service offerings and targeted marketing campaigns to meet the specific needs of business travelers.
- Reduced Service Times: Achieved a 35% reduction in check-in and check-out times, significantly enhancing guest satisfaction.
- Increased Connectivity Satisfaction: Guest feedback on connectivity and business amenities showed a 90% satisfaction rate, highlighting successful upgrades and integrations.
- Personalization Success: Personalized marketing and service adjustments led to a 25% increase in repeat business customers.
City Center Business Hotels is exploring further advancements in AI-driven customer service solutions, including AI concierges and automated problem-resolution systems, to provide even more efficient and personalized services to business travelers.
Looking forward, City Center Business Hotels plans to integrate IoT devices to further enhance the guest experience, such as smart mirrors displaying news and weather updates and IoT-enabled coffee makers that remember guest preferences. The chain is also considering implementing blockchain technology to streamline payment processes and enhance security for business transactions.
This case study highlights City Center Business Hotels’ dedication to leveraging digital technology to meet modern business travelers’ high standards and dynamic needs, ensuring their position as a leader in the business hospitality sector.
Related: Digital Transformation in Finance Case Studies
Case Study 4: Technological Revamp at Heritage Grand Resorts
Heritage Grand Resorts, known for their luxury accommodations in historically significant properties, recognized the need to balance their rich heritage with modern technological demands. To attract a broader demographic and enhance the guest experience while preserving the aesthetic integrity of their properties, Heritage Grand embarked on a digital transformation project.
Heritage Grand Resorts aimed to seamlessly integrate cutting-edge technology without disrupting the historical ambiance of their locations. The objective was to enhance guest convenience and provide modern amenities while maintaining the charm and elegance of their heritage settings. They also focused on utilizing technology to improve operational efficiencies and provide enriched data insights for better guest management.
- Preservation of Aesthetics: Integrating modern technology in a way that does not detract from or damage the historical significance of the properties.
- Technological Integration: Implementing state-of-the-art technology in structures not originally designed to support them.
- Guest Diversity: Catering to tech-savvy guests and those who prefer a more traditional, disconnected experience.
- Invisible Tech Solutions: Installed ‘invisible’ technology such as underfloor heating, Wi-Fi boosters hidden within decor, and noise-canceling panels disguised as artwork to maintain the historical look and feel.
- Augmented Reality Tours: Developed an augmented reality app that guests can use to learn about the history of the resort and its surroundings during their stay, enhancing the educational value of the visit.
- Smart Concierge Services: Introduced AI-powered smart concierge services accessible via smartphones, providing guests with information, reservations, and personalized recommendations without physical interaction.
- Energy Management Systems: Implemented advanced energy management systems to monitor and control energy use in real time, improving sustainability while reducing operational costs.
- Enhanced Guest Experience: Guests reported a 40% increase in satisfaction due to the convenience of modern amenities blended seamlessly with the historical environment.
- Increased Operational Efficiency: Reduced energy costs by 20% and improved staff efficiency by introducing smart systems.
- Educational Engagement: The augmented reality tours led to a 30% increase in guest engagement with the property’s historical aspects.
Heritage Grand Resorts is considering further enhancements, such as biometric access controls for rooms and personalized environment settings that adjust based on guest preferences learned throughout their stay.
Plans include expanding VR (Virtual Reality) to offer potential guests virtual visits before booking and integrating more AI elements into everyday guest interactions. The resort also aims to explore deeper data analytics to predict guest preferences and create even more customized experiences.
This case study demonstrates Heritage Grand Resorts’ commitment to innovation, showing how technology can be harnessed to enhance traditional experiences, ensuring that these historical properties remain relevant and appealing in the modern age.
Case Study 5: Digital Evolution at Eco Escapes Resorts
Eco Escapes Resorts, a chain specializing in eco-friendly accommodations in remote and pristine environments, faced the dual challenge of enhancing guest experiences while adhering to strict environmental conservation standards. To address these challenges, Eco Escapes embarked on a digital transformation to implement sustainable technologies and digital services that align with their commitment to environmental stewardship.
Eco Escapes Resorts aimed to enhance the sustainability of their operations using digital solutions that minimize environmental impact. The key goals included improving energy efficiency, reducing waste, and providing guests with a digital interface that enhances their stay without compromising the natural setting. Additionally, the resort sought to leverage technology to educate guests on sustainability practices and the local ecosystem.
- Environmental Compliance: Implementing technology solutions that meet rigorous environmental standards and cause minimal disruption to natural habitats.
- Remote Location Connectivity: Ensuring reliable digital connectivity and technology deployment in remote areas with limited infrastructure.
- Balancing Tech with Nature: Offering modern conveniences that guests expect while preserving the natural and unspoiled experience that is the hallmark of Eco Escapes.
- Solar-Powered Wi-Fi: Deployed solar-powered Wi-Fi systems across properties to ensure connectivity that does not rely on conventional power sources.
- Digital Educational Platforms: Introduced an interactive digital platform accessible via mobile devices that provides guests with information about local wildlife, flora, and sustainability efforts through engaging multimedia content.
- Smart Energy Systems: Implemented IoT-based smart energy systems to monitor and manage energy consumption more efficiently, significantly reducing the resort’s carbon footprint.
- Waste Reduction Apps: Developed an app that helps manage waste by educating guests on recycling protocols and monitoring their waste disposal habits, promoting a zero-waste lifestyle during their stay.
- Increased Sustainability: Achieved a 30% reduction in overall energy consumption and a 25% reduction in waste production.
- Enhanced Guest Education and Engagement: The digital educational platforms saw a 50% usage rate among guests, increasing awareness and participation in conservation efforts.
- Improved Guest Satisfaction: Guest satisfaction improved by 35% due to the seamless integration of eco-friendly technologies that enhanced their stay without detracting from the natural experience.
Eco Escapes Resorts plans to explore further emerging technologies, such as biodegradable drones for ecological monitoring and guest tours, enhancing the educational aspect of their offerings without impacting wildlife or the environment.
Looking to the future, Eco Escapes is investigating the potential for blockchain technology to develop a transparent supply chain for all goods and services used at the resorts, ensuring sustainability from source to guest. They are also planning to expand their use of VR to offer virtual wildlife tours, allowing guests to experience sensitive habitats without causing disturbance.
This case study highlights Eco Escapes Resorts’ innovative approach to combining technology with environmental conservation, setting a benchmark for sustainable tourism in the hospitality industry.
Related: Digital Transformation in Aviation Case Studies
The case studies of LuxStay Hotels, Coastal Retreat Resorts, City Center Business Hotels, Heritage Grand Resorts, and Eco Escapes Resorts collectively demonstrate the transformative power of digital technology in the hospitality industry. These narratives highlight how strategic digital implementations can significantly enhance guest satisfaction, increase operational efficiencies, and maintain competitive advantage. The successes documented in these case studies serve as valuable blueprints for other hotels looking to embark on their digital transformation journeys. By embracing technological advancements, these hotels not only meet the modern demands of their guests but also set new standards for innovation in hospitality, paving the way for future developments in this dynamic industry.
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Hilton Hotel Worldwide: A Case Study Exploring Corporate Social Responsibility and Stakeholder Management
- By: Antonia Noonan & Caddie Putnam Rankin
- Publisher: International CHRIE
- Publication year: 2017
- Online pub date: January 15, 2020
- Discipline: Business Ethics (general) , Corporate Social Responsibility , Hospitality, Travel & Tourism Management
- DOI: https:// doi. org/10.4135/9781529715828
- Contains: Content Partners | Teaching Notes Length: 7,078 words Region: Global Originally Published In: Noonan , A. , & Rankin , C. P. ( 2017 ). Hilton Hotel Worldwide: A case study exploring corporate social responsibility and stakeholder management . Journal of Hospitality & Tourism Cases , 5 (4) , 15 – 27 . Industry: Accommodation and food service activities Type: Indirect case info Organization: Hilton Hotel Worldwide Organization Size: Large info Online ISBN: 9781529715828 Copyright: © 2017 International Council on Hotel, Restaurant, and Institutional Education (ICHRIE). All rights reserved. More information Less information
Teaching Notes
How to be socially responsible is a growing concern for the hospitality industry. This case study provides examples of how Hilton Hotel Worldwide (HHW) fulfils its responsibility to stakeholders and stockholders by reviewing a myriad of fiduciary, legal, ethical, community, and global concerns. From an industry perspective, HHWs’ approach to internal and external stakeholder concerns has promoted positive industry-wide change. In addition, this case study allows the reader to conceptualize the concept of Corporate Social Responsibility (CSR) in the context of the hospitality sector by reviewing the policies and practices carried out by Hilton Hotel Worldwide. Reflecting on the HHW’S CSR engagement and CSR theory, the reader is asked to comment an upcoming shareholder referendum that would tie executive compensation to CSR performance.
Introduction
Case dilemma.
As a hospitality student, your interest in the industry led you to purchase Hilton Hotel Worldwide (HHW) stock. You are a proud HHW shareholder. In the time you have been a shareholder, you have been pleased with the investment. In an upcoming HHW shareholders meeting, a proxy ballot will be introduced to vote on a proposal to include Corporate Social Responsibility (CSR) performance among the factors considered in awarding executive pay.
The clause states:
The shareholders of Hilton Hotel Worldwide request the Board’s Compensation Committee to include corporate social action as one of the performance measures for senior executive’s compensation under the Company’s incentive plans. Corporate social action is defined as how environmental and social concerns are addressed, monitored and integrated into corporate strategy over the long term. 1
From your hospitality courses, you are aware of the efforts the industry has made addressing CSR issues, however, you are not specifically familiar with HHW history of addressing CSR concerns and the company’s ongoing level of commitment. You decide to conduct research in order to make an informed decision on the shareholder resolution. You start with a review of the CSR theories introduced in your Eco-Tourism class. Then you conduct additional research on the history of CSR in the hospitality industry, HHW reaction and resolution to CSR conflicts and finally, consider if an additional CSR focus will provide HHW with a competitive advantage. Once you review your research, you will make your decision.
Corporate Social Responsibility Theoretical Perspective
Corporate Social Responsibility (CSR) is focused on business’ obligations and behavior towards society. Some narrow the scope to business stakeholders such as employees and customers while others more broadly include the environment and sustainability. However, most agree, CSR is a difficult concept to define. It overlaps with “other concepts such as corporate citizenship, sustainable business, environmental responsibility, the triple bottom line; social and environmental accountability; business ethics and corporate accountability” (Broomhill, 2007, p. 6). Carroll’s (1979) widely used definition of CSR claims that “CSR involves the conduct of a business so that it is economically profitable, law abiding, ethical and socially supportive…The CSR firm should strive to make a profit, obey the law, be ethical, and be a good corporate citizen” (Carroll, 1999, p. 286). Porter and Kramer (2002, 2011) suggest that by incorporating CSR into business practice, organizations can achieve a competitive advantage over their industry rivals (see Figure 1 ).
Adam Smiths’ “invisible hand” allegory contends that it is each person’s responsibility to “render the annual revenue of society as great as he can” and by pursuing and acting in one’s self-interest is the best interest for society. In pursuit of self-interests, it is understood that an individual will be acting in a moral and just fashion in and thereby, in a socially responsible way. However, Smith points out, no matter how noble or righteous the cause, executives (corporations) do not have the right to be generous with others money (Smith, 1994).
Similarly, Milton Friedman’s (1970) shareholder theory asserts that shareholders are the owners of a company, and the firm’s sole obligation is to increase profits for the owners; the firm’s objective and fiduciary obligation is to maximize shareholder wealth. If CSR initiatives increase profits then shareholders should implement such initiatives.
In contrast, stakeholder theory argues that there are other parties concerns that should be considered, including governmental, associations, communities, suppliers, employees, and customers (Freeman, 1984). From the viewpoint of the stakeholder theory, the HHW board of directors, operators and hotel managers are morally obligated to balance the interests of shareholders (owners) and other stakeholders because as operators, they have a fiduciary and ethical responsibility toward all stakeholders
Carroll’s (1991) Pyramid of Social Responsibility describes four kinds of social responsibility that build upon each other and can be depicted in a pyramid. At the top of the pyramid is philanthropic responsibilities (Corporate Social Performance – managerial discretion), which is described as being a being a good corporate citizen, promoting behaviors that encourage goodwill and human welfare. Carroll (1979) believed philanthropic responsibilities were not expectations like economic, legal and ethical responsibilities located in the base of the pyramid (Velasquez, 2014). From a philanthropic responsibility viewpoint (the top of the pyramid), an organization contributes resources to the community/society in an effort to improve quality of life.
All the texts in the framework chart are written inside rectangular boxes. On the left, the first point is “Corporate Social Responsibility” which is written vertically. This is connected to four points to its right, written one below the other, namely, “Fiduciary,” “Legal,” “Ethical,” and “Global & Community.” There is a rightward arrowhead from those points that points to “COMPETITIVE ADVANTAGE?”
Figure 1: CSR Analysis Competitive Advantage Framework
Corporate Social Responsibility in the Hospitality Industry
It is commonplace to have CSR topics introduced during the orientation of new employees and presented as a topic in management training. For example, corporate management companies may have the resources to provide extensive CSR training and development while smaller companies and single ownership hotels may not be able address CSR topics beyond employee orientation. Such inconsistencies stem from fragmented nature of the hospitality industry and make the development of a universally accepted, industry wide training programs difficult. Kazim (2009) affirms that one of the biggest challenges and barriers to the implementation CSR in the hospitality industry is the lack of managerial awareness and training at the property level. Another reason for the limited understanding of CSR is due to the current trend of touting environmental sustainability efforts by communicating CSR actions as sustainable hospitality (Levy & Park, 2011).
Lee and Tsang (2013) and Knani (2013) assert that while CSR is a growing challenge in the hospitality industry, “the understanding of ethical perception and moral position of all stakeholders should be accentuated” (Lee et al., 2013, p. 239) in the business culture from the individual property unit to the boardroom. By the nature of its business, the hospitality industry has always been susceptible to unethical practices, as employees are frequently confronted with morally and ethically ambiguous situations. These dilemmas are not, however, limited to the property level. The larger hotel brands are publically held corporations that own, manage or franchise hotels. Public sector scrutiny from a myriad of stakeholders makes hospitality boards of directors, corporate executives, operators, owners and employees susceptible to lack of and/or questionable CSR, namely CSR motivation and questionable methodologies of ranking CSR engagement against competition. Other negative outcomes have been brought to the public’s attention and have provided a framework for organizational change and improved best practices for the industry.
A single hotel’s success in their market can be impacted by positive and negative reactions to the corporate brand. For example, negative brand publicity in responsibilities may create opportunities for the competition to exploit a perceived weakness. HHW suffered from such public scrutiny from sex trafficking accusations in 1998, corporate espionage scandal in 2009 and more recently in 2015 amidst concerns whether HHW officers and directors breached their fiduciary duties and caused damage to the company and its shareholders 2 . However, in the wake of turmoil, controversy and public dissidence, HHW successfully integrated a robust corporate code of conduct, introduced a proprietary environmental reporting program, and integrated a company-wide Corporate Social Responsibility (CSR) communication platform. These initiatives created opportunities and provoked changes in basic practices to overcome public grievances and elevate HHW to a CSR leader in the hospitality industry.
Fiduciary, legal, ethical, and global/community responsibilities can provide the hospitality industry with a competitive advantage over their rivals. In an effort to evaluate hospitality CSR and the prospect that CSR actions can provide one hotel or brand a competitive advantage over their rivals, this case study focuses on HHW CSR engagement in the area of fiduciary, legal, ethical, and global/community responsibilities.
Fiduciary Responsibilities
The primary responsibility of any organization is to survive. Survival is, more often than not, based on an organization’s ability to remain fiscally responsible. In recent years, management of hotels has moved from an owned and managed model to a model where the owner hires a management company to oversee the operation of the asset. Similarly, HHW has also moved to this model to reduced capital and increase shareholder worth by focusing on high value added activities like managing hotels without owning the asset. As a management company, the operator is an “agent” and therefore assumes fiduciary obligation to maximize profits and to inform ownership of how profits are achieved. In addition, central to the owner-management relationship is management’s duty to side with ownership priorities – to choose the principal’s (owner’s) interest over their own interests (Friedman, 1970).
Moving from an owner-management to a franchiser-management model, more than ever before, the customer is the primary asset to build shareholder wealth. An example of HHW commitment to focus on the customer and build customer loyalty to gain a competitive advantage was the creation of Hilton’s proprietary customer information system called OnQ 3 . Introduced in 2004, OnQ provided state of the art guest recognition, offered guest convenience and efficiency through web based check in as well as offering the option of using time saving kiosks for hotel check in and check out.
Despite these strengths in building their fiduciary responsibilities, some weakness can be noted. As a publically traded company, and similar to the owner-management relationship, the HHW Board of Directors has a fiduciary responsibility to its shareholders and to maximize, where possible, their profits. The directors and shareholders both shared in the benefits of the leveraged buy-out sale of HHW to Blackstone in 2007. Shareholders overwhelming approved the transaction, receiving $47.50 per share, which was 40 percent higher than the stock price the day before the acquisition was announced (Clausing, 2007). Despite the shareholder goodwill gained from the sale, and a self-imposed code of conduct 4 , HHW’s Board has gained unfavorable attention and is under scrutiny for unethical business practices. In March, 2015, the Shareholders Foundation announced an investigation on behalf of current long-term investors over potential breaches of fiduciary duties by HHW officers and directors causing damage to the company and its shareholders. While little public information is available regarding the details and status of investigation, the insinuation of misconduct has had little effect as HHW stock. In fact in mid-April 2015, HHW reached an all-time high—reflecting an increase of 16.9% year-to-date 5 .
Legal Responsibilities
In common law, the innkeeper was required to provide food, lodging and safety for its guests. Today, hotels are still liable as innkeepers adding the additional provision that the innkeeper must also provide the service of food and lodging in a non-discriminatory manner. While innkeepers are not insurers for the safely of their guests, innkeepers laws impose a duty to provide reasonable care in promoting their safety. These elementary innkeeper’s laws have been tested by disgruntled guests in a plethora of cases of claims ranging from injuries caused by defects in guest rooms to emotional distress caused by not having a room available upon check in. In such cases, courts generally uphold that an innkeeper owes a guest the duty of maintaining the premises of the hotel in reasonably safe conditions, taking care not to expose them to danger. Other legal responsibilities include anti-trust issues, franchise agreements, meeting and sleeping room contracts and labor disputes.
The Corporate Governance section of HHW 2013–2014 Annual Corporate Responsibility Report specifies that Hilton views legal compliance as an “opportunity to strengthen the communities where we live, work and travel” 6 . To further illustrate the company’s commitment, the report details companywide standards that create a safe and healthy environment for team members and guests, specific legalese regarding majority owner representation, board compliance, and majority board voting provisions. Furthermore, the Corporate Responsibility Report describes “reporting and investigation procedures to promote legal compliance and ethical behavior globally” that is verified by an independent audit committee to ensure legal compliance is authentic. According to researchers Font, Walmsley, Cogotti, McCombes, and Häusler (2012), HHW is the only hotel chain that permits an external audit of its CSR reporting.
To ensure all levels of associates are informed about pertinent legal matters, the HHW Corporate Responsibility Report identifies specific training topics that were highlighted the previous year that addressed various legal concerns. For example, in 2013 and 2014, anticorruption training was provided to all global associates at the corporate director title and above. A legal and compliance training program was launched globally that focused on “communicating critical policies on anti-corruption, confidential information and trade secrets, and trade sanctions, among others. Each of the core compliance topics relates to laws created in various countries in order to protect society” 6 . Overall, HHW efforts to engage employees and inform stakeholders of the company’s legal compliance are commendable.
Understandably, there is little published information regarding legal issues in the HHW sponsored information. Evaluating the placement of information in the Corporate Responsibility Report, legal and business ethics topics are consistently combined in the same category throughout HHW website and literature. This makes sense because an unlawful act is usually unethical. Within the context of the report however, self-regulation and the corporate code of conduct sometimes reveal discrepancies. Jameson (2011) emphasizes “a consistent ethical stance is a goal companies must strive for if they are to persuade employees – and the public – that codes of business conduct and ethics are not mere window dressing” ( p. 296). An example of the discrepancy between corporate policy and actual behavior can be studied in the Starwood v. Hilton espionage scandal.
Ethical Responsibilities
Hospitality employees are susceptible to unethical situations and behaviors. As a result, hotel companies attempt to stay vigilant by incorporating an ethics-dimension to their company culture. A study conducted by Bonitto and Noriega (2012) explored whether individuals in service industry leadership positions thought unethical behavior existed among their peers. Overwhelmingly, respondents felt that unethical practices exist and reported concern that dishonorable behavior is on the rise. Respondents identified that the majority of unethical decisions stemmed from greed, moral perceptions, job protection and the desire to perform to organizational pressure (including to enhance personal income or retain position). Beyond instituting an ethics based corporate code of conduct, efforts to increase employee awareness of business ethics and CSR must be supplemented with on-the-job-training, education and tools for employees to use to help identify, vet and respond to ambiguous ethical situations. An ethical corporate culture will encourage an appreciation of ethics and promote the idea that one’s actions have an effect on peers, departments, individual hotels, and the company.
Like most large companies today, HHW has developed an internal code of conduct intended to provide ethical and moral guidance. The tenets of the code are imbedded in the Corporate Responsibility Report, supplemented by a 20-page document highlighting the importance of ethical behavior in the company’s CSR initiative. The code includes a standard of conduct for collective team members and addresses 25 ethics sub categories (see Table 1 ). The 2013–2014 Corporate Responsibility Report also provides 2013 employee engagement statistics. For example, the report notes that more than 45,000 employees completed the online Code of Conduct training module and employees at an additional 554 properties received offline training. Also stated in the report and Code of Conduct is the following statement regarding HHW commitment to ensure employees engage in annual training through a certification process (see Table 2 ).
Bohdansowicz and Zientara’s (2009) article focusing on social reporting in the hospitality industry found HHW and AccorHotels exceeded all other brands in relation to their CSR reporting. However, formulating a detailed written statement of ethics or code of conduct with specific documented policies does not provide fail-safe methods for preventing unethical behavior. Greenwashing, writing fake on-line travel reviews, truth in advertising and add-on pricing disclosures are just a few areas in which managers engage in ambiguous unethical behavior that may go undetected.
In 2009, however, unethical behavior at HHW was publically noticed. In a highly visible, dramatic and at times contentious lawsuit, Starwood Hotels and Resorts Worldwide charged HHW with industrial espionage and theft of trade secrets – specifically focused on research and development blueprints to create a new lifestyle brand similar to Starwood’s successful W Hotel Brand. The espionage came to light when Hilton hired two former senior executives from Starwood in 2008 who, prior to leaving the company, took over 100,000 electronic Starwood files containing confidential corporate information and company trade secrets. The stolen information saved HHW millions of dollars of research and thousands of hours of development time. Starwood’s suit claimed misappropriation of trade secrets, breach of contract on Starwood’s non-solicitation, confidentiality and intellectual property agreements, fraud, unfair competition, conversion, breach of fiduciary duty, unjust enrichment, and the violation of the computer fraud act among others (Clausing, 2010). In December 2010, Hilton settled the lawsuit for a reported $150 million and severe restrictions on Hilton’s future business, including a ban on introducing a new lifestyle brand for two years. “Although Hilton admitted no guilt, the massive settlement suggested the company feared it would lose more if it went to trial” (Jameson, 2009, p. 292).
Jameson (2009) points out that at the time of the lawsuit, Sheratons’ and HHW’s business ethic code, confidentiality agreements and code of conduct statements focused solely on its own self-interests and self-protection. This incident clearly identifies the need for hospitality companies to include statements that specifically speak to prohibiting giving information and using improperly obtained information about a competitor. Consequently, a review of HHW 2007 CSR and Annual Reports (2008, 2009 not available) reveals that a corporate code of ethics is not included in the document, however the 2013–2014 Corporate Social Responsibility Report includes a section dedicated to explicit instructions regarding the distribution of HHW proprietary documents as well as receiving such information from the competition (see Table 3 ). During this period, the lawsuit settlement, residual bad press and the economic downturn resulted in HHW revenue decline of 20 percent and a cash flow decrease of 30 percent. Blackstone, HHW ownership, was in danger of losing its investment of $5.6 billion (Cohan, 2014).
Evaluating HHW CSR focus on ethical responsibilities is best illustrated by examining the inclusion of business ethics in communication prior and post the 2009 Starwood lawsuit. Prior the scandal, HHW CSR reporting was viewed as superior to the competition however, CSR did not include a corporate code of ethics or provide significant attention to training and mandatory annual certification compared to what is required of HHW executives, managers and hourly employees today. In this respect, and perhaps because of the espionage case, HHW has made great strides in formalizing an inclusive CSR program. In fact, 2014 HHW was ranked the #2 Most Admired Company by Fortune Magazine in the Hotel, Casino and Resorts division 7 . This ranking alone is impressive however the industry especially took note of the accomplishment since HHW was not even in top 10 in 2013.
Global and Community Responsibilities
According to the 2014 United Nations World Tourism Organization (UNWTO) annual report, today’s global tourism is an economic force with a significant combined direct and indirect impact on the global economy (see Figure 2 ). HHW along with other global hospitality companies are investing in new destinations providing an important driver of economic progress through the creation of jobs and infrastructure development 8 . Hoteliers entering into new markets are challenged with achieving financial success while respecting the values and culture of the community and environment. In 2011, HHW introduced “Travel with a Purpose 9 ” (see Table 4 ) as their global corporate responsibility commitment that focuses on “creating shared value and provides a cohesive, yet flexible framework to guide the activities of (our) business across regions, brands and properties”. Informing stakeholders and committing resources to address growing global and community challenges heightens awareness however, the industry’s main challenge is preserving a consistent global approach and implementing good global human relations, sustainability/environmental programs, training-development programs and service related standards in a fractured industry with limited mandating control inherent in the franchise-management operating model.
For the past 25 years, the main CSR focus in the lodging industry has largely been on environmental concerns and the efficient use of energy. Research in 2007 by Holcomb, Upchurch & Okumus (2007) included a content analysis of hospitality company web sites, annual reports and (online) CSR reports to measure hotels’ CSR commitment. Of all the companies observed, “Hilton Corporation provided the most detailed information regarding their CSR activities” (p. 465). Their annual Corporate Responsibility Report and code of conduct outlined policies beyond environmental and conservationist activities to include efforts on equal opportunity and diversity, human rights, health, safety, as well as environment sustainability.
As part of their comprehensive CSR program HHW pioneered an environmental benchmarking tool called Hilton Environmental Reporting (HER). In 2010, HER was replaced by LightStay, a proprietary monitoring system developed to calculate and analyze environmental impact. In the first year of testing, results showed that the 1,300 Hilton Hotels using the system “conserved enough energy to power 5,700 homes for a year, saved enough water to fill more than 650 Olympic size pools and reduced carbon output equivalent to taking 34,865 cars off the road. Reductions in water and energy use also translated into dollars-saved for hotel owners, with estimated savings of more than $29 million in utility costs in 2009 10 “ To confirm the timely implementation and validity of the program, HHW hired KEMA-Registered Quality, Inc.—a Management Systems design company—to perform a series of third-party audits of LightStay.
When HHW publically introduced LightStay in an April 2010 press release, aggressive objectives and goals where put forth that mandated the use of Light stay in all HHW hotels by the end of 2011. Conservation and sustainability was to be a brand standard (like service) and when achieved, HHW would be the first major multi-brand company in the hospitality industry to require property-level measurement of sustainability. By the end of 2011, Hilton met this goal 11 .
HHW continues to broaden its sustainability strategy. In 2015 the CSR team introduced “Meet with Purpose 12 ,” a concept designed to assist meeting planners reduce waste and incorporate health and wellness into meetings and events. The concept focuses on two areas: Mindful Eating, which is designed to minimize food waste and encourage healthy choices; and Mindful Meeting, which outlines meeting practices that are less resource-intensive.
In addition to these efforts, HHW extends global and community CSR activities beyond environmental conservation and sustainability. The HHW CSR and Public Relations Department frequently communicates through their Travel with a Purpose campaign that highlights current CSR activities, through social media (encourage to Tweet) and press releases. Travel with a Purpose initiatives support a wide range of organizations, ranging from funding a filmmaking grant at the Sundance Film Festival (for eco-centric films), to efforts to support woman owned and minority suppliers, repurposed waste objectives, animal protection interventions and local efforts to support community food banks 13 . A sample list of 2013–2014 initiatives can be found in Table 4 .
Overall, HHW global and community responsibilities are commendable. However, prior to the roll out of its corporate code of conduct in 2010, HHW attracted negative press from reports concerning child trafficking and prostitution in several Hilton Hotels. Chinese police found a brothel operating in a Hilton Hotel in southern China and, earlier in the year, a similar incident was reported in Ireland. To make matters worse, activists sent thousands of letters in protest of HHW’s delay in addressing the issue and for not signing the End Child Prostitution, Child Pornography and the Trafficking of Children for Sexual Purposes 14 (ECPAT) code of conduct. HHW declined to join other hoteliers in their support of the ECPAT code because they felt their newly created corporate code of conduct would suffice (Bhandari, 2010). Although the intention was to illustrate HHW independent commitment to the stop sex trafficking, failing to sign the EPCAT code of conduct – uniting with other hoteliers – had proven to be a public relations oversight that caused negative publicity and tarnished Hilton’s public perception.
HHW CSR Assessment and Competitive Advantage
The hospitality industry has embraced CSR and most major hospitality companies are actively participating in socially responsible activities. In the past, lodging companies tended to communicate CSR as sustainable efforts, however major brands have moved toward a more balanced approach, incorporating philanthropy, community service, and special interest groups that extend beyond conservation and environmental sustainability. As pointed out by researchers (Bohdanowicz, 2007; DeGrosbois, 2012), HHW is as a leader in CSR reporting and transparency and deploys considerable resources to engage internal and external stakeholders its CSR efforts. These efforts have provoked changes in the company. For example, years after the 1998 sex trafficking allegations, HHW and Carlson Hotels Worldwide are today’s global hospitality leaders against sex trafficking – matching stakeholder donations, assisting activist efforts and building awareness. Similarly, after the alleged espionage scandal in 2009, HHW instituted unprecedented CSR transparency via the internet and shareholder engagement. In addition, to face the espionage scandal head on, HHW rolled out a corporate code of conduct and robust training and certification program centered on integrity, business ethics and global citizenship.
Gaining and sustaining competitive advantage has been recognized as the single most important goal of an organization (Porter, 1980) and is created through strategies that add value when the competition fails to do so. Over the past 25 years, CSR – and, in particular, “green” sustainability – has become a baseline requirement for all hotels. De Gosbois (2012) conducted data analysis research on CSR reporting in the hotel industry and found 109 out 150 of the largest hotel companies reported some information on CSR activities. The researchers further identified that of the 109 hotels communicating their actions, only half (54 hotels) discussed a commitment to specific goals. Even fewer hotels that actually list the actions directed at achieving the goal or report if the any of their CSR goals had been met.
One of the strengths that gives legitimacy and authenticity to HHW’s CSR efforts is its reporting strategies and third party independent audit/verification process. The lagging reporting efforts by competitors and the industry in general, however, poses challenges for stakeholders that are interested in a hotels CSR activities and commitment. It is difficult to tell if a company is reaching goals or if it is truly committed to CSR when outcomes are not measured, reported or verified. Companies that engage with third party audit (like HHW), given assurances that goals and performances are accurately reported. Due to the lack of verification, the general acceptance and universal commitment to CSR behaviors, the industry is susceptible to greenwashing. For example, often hotels portray towel reuse programs as environmental stewardship yet fail to make improvements in the area of greater environmental impact.
There are five different colored rectangular boxes inside which there are illustrations and text. A leftward arrow connects each box to the one next to it. There are different silhouettes above each box. Above the first box, there is a silhouette of a woman holding a trolley in her hand. In the box, the text says “9% GDP,” and below it is the illustration of a globe. On the box to its right, there is a silhouette of a man above the box, holding a briefcase in his hand. In the box, there are eleven pictograms representing men, out of which one man has his right hand raised with a briefcase in his left hand. The text in the box reads “1/11 JOBS.” In the third box next to this one, there is a silhouette of a man with a tripod stand with a camera on it. In the box, the text reads “US$ 1.5 TRILLION IN EXPORTS.” Below the text, there is an illustration of a stack of dollars. In the box next to this, there is again a silhouette of a woman pulling a trolley. In the box, the text reads “6% OF WORLD’S EXPORTS.” Below this, there is an illustration of an airplane. On the last box, next to this one, there is a silhouette of a man pulling a trolley. In the box, the text reads “30% OF SERVICES EXPORTS.” There is an illustration of a shopping cart below the text. Below the five boxes, there are two upward arrows and the text between the two arrows reads, “WHY TOURISM MATTERS.”
Figure 2: 2014 Global Impact of the Tourism Industry
In order to create competitive advantage, CSR actions should be valuable, rare, unique and non-substitutable. Given the universal acceptance of CSR in the hospitality industry and the lack of an industry-wide reporting structure, CSR engagement may not provide a competitive advantage for any hotel however, CSR outcomes may create competitive advantage opportunities indirectly. For example, CSR efforts have shown to result in cost reduction, brand legitimacy and positive reputation are influential in gaining competitive advantage 15 . CSR can also influence turnover 16 , increased the company’s attractiveness to employees 17 and improve guest experiences 18 .
Yah or Nay – Casting a Balanced Vote
The shareholders of Hilton Hotel Worldwide request the Board’s Compensation Committee to include corporate social action as one of the performance measures for senior executive’s compensation under the Company’s incentive plans. Corporate social action is defined as how environmental and social concerns are addressed, monitored and integrated into corporate strategy over the long term.
Your research revealed valuable information to guide you to your decision. How will you vote on the shareholder resolution?
Further Reading
Corporate social responsibility (introduction), corporate social responsibility theories.
1. This is a fictitious proxy vote used as an example for the case study.
2. From “Hilton Worldwide Holdings Inc. (NYSE:HLT) investor investigation concerning potential wrongdoing announced,” 2015, March 23, retrieved http://shareholdersfoundation.com/caseinvestigation/hilton-worldwide-holdings-inc-nysehlt-investor-investigation-concerning-potential-wronding-announced
3. From “Hilton’s Customer-information System, Called OnQ, Rolling out across 8 hotel brands,” Hotel Online, 2004, retrieved from http://www.hotel-online.com/News/PR2004_3rd/Aug04_OnQ.html
4. From “Hilton Hotels Corporation code of business conduct and ethics,” n.d., retrieved http://media.corporate-ir.net/media_files/irol/88/88577/corpgov/codeofethics_013004.pdf and “Corporate governance guidelines,” 2015, August 6, retrieved http://ir.hiltonworldwide.com/files/doc_downloads/GovernanceDocuments/2015/Corporate-Governance-Guidelines-2015.pdf
5. From “Hilton and Wyndham bulls are checking into the hoteliers,” by Yamamoto, M., 2015, April 14, retrieved http://www.thestreet.com/story/13106557/1/hilton-and-wyndham-bulls-are-checking-into-the-hoteliers.html
6. From “Travel with a purpose 2013–2014 corporate responsibility report: Corporate governance,” 2013, retrieved from http://cr.hiltonworldwide.com/approach/governance.php
7. Fortune Magazine The Most Admired list a report card on corporate reputations. The Hay Adams Group selects the 15 largest international industry and the 10 largest U.S. industry, surveying a total of 668 companies from 29 countries. To create the 55 industry lists, Hay asked executives, directors and analysts to rate companies in their own industry on nine criteria, from investment value to social responsibility. A company’s score must rank in the top half of its industry survey to be listed. From http://fortune.com/worlds-most-admired-companies/
8. From “UNWTO Tourism highlights 2015 edition,” 2014, retrieved from www.e-un-wto.org/doi/pdf/10.18111/9789284416899
9. From “Travel with a purpose, corporate responsibility report 2012–2013,” 2013, retrieved from http://cr.hiltonworldwide.com/2012/_pdf/Hilton_2012CRR_PDF_v22.0.pdf
10. From “Hilton Worldwide Unveils “LightStay” Sustainability Measurement System,” 2010, retrieved from http://news.hilton.com/index.cfm/news/hilton-worldwide-unveils-lightstay-sustainability-measurement-system?tl=it
11. From “Hilton Worldwide announces 2011 LightStay sustainability results,” 2012, retrieved from http://news.hiltonworldwide.com/index.cfm/news/hilton-worldwide-announces-2011-lightstay-sustainability-results
12. From “Hilton introduces ‘Meet with purpose’ to inspire sustainable, healthy choices for events,” 2015, retrieved from http://news.hiltonworldwide.com/index.cfm/news/hilton-introduces-meet-with-purpose-to-inspire-sustainable-healthy-choices-for-events
13. Retrieved from Hilton Worldwide News http://news.hiltonworldwide.com/
14. ECPAT International is a global network of organizations working together for the elimination of child prostitution, child pornography and the trafficking of children for sexual purposes. It seeks to ensure that children everywhere enjoy their fundamental rights free and secure from all forms of commercial sexual exploitation. Retrieved from http://www.ecpat.net/
15. From “The Business Case for Corporate Social Responsibility: A review of concepts, research and practice,” by Carroll, A., & Shabana, K., 2010, International Journal of Management Reviews, 12 (1), 85–105.
16. From “Corporate social responsibility and labor turnover,” by Vitaliano, D., 2010, Corporate Governance, 10(5), 563–573.
17. From “Toward a better understanding of the link between ethical climate and job satisfaction: A multilevel analysis,” Wang, Y. & Hsieh, H., 2012), Journal of Business Ethics, 105, 535–545.
18. From “Strategic corporate social responsibility management for competitive advantage,” by Filho, J.M., Wanderley, L.S., Gomez, C.P., & Farache, F., 2010, BAR – Brazilian Administration Review, 7(3), 394–309.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
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The Best Hospitality Case Studies You Can Learn From
In our digital age, it’s so easy to see what other guests thought of their stay at your property, and hopefully your Google and Facebook reviews are top notch.
You’ll find that the overall guest experience is vital to your success in the hospitality arena. It’s up to you and your staff to make your guests as comfortable as possible and treat them like they were in their own home.
We find it’s often good to learn from others and those who are doing it right or turned things around. Let’s take a look at the best hospitality case studies you can learn from.
The Taj Mumbai
According to the Harvard Business Review , the Taj Mumbai is one of the world’s top hotels. Not only is it known for its beauty, but it is known for having the most well-trained employees who are always willing to go the extra mile.
They even note that many of them have worked at the hotel for decades. There is never any question about the job to be done and how to meet the needs of the guests.
While the Taj Mumbai is known for their excellent customer service, they took it to a new level during several terrorist attacks a decade ago.
The employees never left their posts and made it their duty to protect their guests. They were quick thinking and thought of the safety of the guests before their own. Many of them even lost their lives.
So, you can see that the Taj Mumbai has created a customer-centered culture. Their employees know the customers come first, and they seem to enjoy this culture of service.
Experts tend to agree that the recruiting system employed by the hotel has helped them find the most ideal candidates to provide this extraordinary culture of service.
The Hiring System of the Taj Mumbai
Instead of looking to the metropolitan areas for new hires, they head out to the smaller towns. This is because they find employees with more traditional, old-school values. These include a respect for teachers and their elders, a humble spirit, discipline, honesty, and an empathetic nature.
This also helps them find loyal staff members who truly care about the hotel’s many guests.
Often recruiting younger people, the hotel sends new team members to a certification center where they live room and board free for 18 months to learn how to be the best employees they can be.
They also look to schools for their management teams and again spend a great deal of time (18 months is the norm even for management staff) and money training them.
The prospective employees are also trained in a very different manner. They are not told to look out for the hotel’s interests, but they are told to put the guest’s first. They should always put the guest’s needs before those of the hotel.
This not only empowers employees to take the right action at the right time, but it engenders loyalty in both the employee and the customer.
Finally, the hotel instituted a special rewards and recognition program that relies on compliments from guests, compliments from colleagues, and the employee’s very own suggestions.
Every day thank yous are encouraged, and the employees strive to be better every day.
The Wit Hotel
Located in Chicago, the Wit Hotel knew it needed to provide more options for its health-conscious travelers. They wanted to appeal to more appeal, including their loyal clientele, by providing more nutritious food options.
The brought in SPE Certified to help this 300-room Doubletree by Hilton, with one of the best rooftop lounges in the world, meet travelers’ growing demands.
They wanted to up their hospitality level by offering the tastiest, most nutritious food, both catering to their current guests and working to attract new guests from an even younger demographic.
With the help of their consultants, and in collaboration with the hotel’s chefs, they identified existing menu items to enhance. They worked on a number of items and now offer many SPE certified dishes.
These are menu items that are certified and show the hotel’s commitment to sustainability and nutrition and most importantly, to their customers’ health and well-being.
Their changes have had great results and enhanced customer satisfaction.
Arenas Del Mar
Located in Costa Rica, the Arenas Del Mar is committed to new avenues in the hospitality industry.
They are committed to providing their guests with just what they want.
For example, they invest in green technology and only source products that meet their green philosophy. Their goal is not only be sustainable but efficient.
At their resort, they rely on solar energy because they are dedicated to keeping their carbon emissions low. They do this by using solar energy to heat water for their guests’ rooms as well as their staff rooms.
They even take it a step further on cloudy days by using their energy-saving auxiliary water heaters as a backup. Their guests never have to worry, though, as their hot tubs and shower are always as hot as they want.
When it comes to their food service, they have their very own gardens that they irrigate with wastewater. They also work with local suppliers and only source organic food and hormone-free and grass feed meat.
In addition, because the resort is right in the middle of 11 acres of nature preserve, they only use natural cleaning products.
They went 100% organic so as not to leach toxic products into the nature reserve because they want to preserve the fragile ecosystem.
Final Thoughts
You can see from these three different case studies how important it is to put the needs of the customer front and center.
In this highly competitive arena, it is absolutely vital to provide proper customer service training.
Strive to be a customer-centric property. Put the needs of your guests first and allow your employees the leeway to provide the best service to your guests. Don’t tie their hands by making them jump through hoops. (tweet this)
Your goal is happy employees first. Finally, when your team is happy in the workplace, then everything falls into place. Your customer culture is set, and your customers are incredibly satisfied as a result.
Looking to showcase your hotel? At Hotel Propeller, we build functional, beautiful websites that highlight your hotel to help you stand out in the crowd. You’ll find everything you need to attract guests to your website and compel visitors to make a reservation. Take a look at our showcase and contact us today.
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Its primary objectives include 1) assessing the competitive intensity and attractiveness of the hotel industry; 2) analyzing the factors affecting the industry; and 3) …
The following five case studies illustrate how diverse hotel chains—from luxury resorts to eco-friendly retreats—have successfully implemented digital technologies to meet the unique …
The results show that luxury hotels have implemented environmental practices that address energy efficiency measures that reduce water consumption, waste, and carbon emissions and that control, protect, and …
The goal is to turn the traditional asset-heavy company into an active player in the new hospitality economy, able to compete head-on with the industry’s digital disruptors. The case discusses …
How to be socially responsible is a growing concern for the hospitality industry. This case study provides examples of how Hilton Hotel Worldwide (HHW) fulfils its …
Discover the most fascinating and inspiring Hotel Case Studies from around the world. See Hotels & Properties which have managed to become reference points
Looking to improve your customer service and satisfaction? Here are the best hospitality case studies you can learn from to grow your business.
Hospitality Industry Exchange Rate trends: How do they impact hotel performance? Hotel Concept Handbook: Developing a Compelling Hotel Concept
In 2011, Rick Hayduk, a long-time and experienced hotelier, was inspired to open a hotel that employed individuals with intellectual disabilities with the goal in mind of positively impacting …