Flourishing Of Hilton Sydney In The Hospitality Industry: An In-depth Overview

Overview of Hilton Sydney in the Hospitality Industry

Hospitality industry is one of the most flourishing sectors for rendering the economic growth of a business industry. As per the World’s business scenario,the direct contribution of hospitality sector to GDP was US$ 71.53 billion in 2016. Around 4500 hotels are situated all over Australia for maintaining effective hospitality services. Around 929,000 employees are associated directly and indirectly in the hospitality sector of Australia (trademinister.gov.au 2018). However, this very specific study has focused to make in-depth overview on how Hilton Sydney has flourished their entire process of business in the realm of hotel industry (hotelbusiness.com 2018). In order to render the economic growth of country hospitality industry has left major contributions. Especially, the establishment of hotels and restaurants in a particular country decides whether the tourism business would draw the attention of large number of international customers (melbournepolytechnic.edu.au 2018). This very specific study has provided in-depth overview on how macro environmental analysis and micro environmental analysis leaves a major positive impact for flourishing the business process of Hilton Sydney. Some of the major barriers faced by the business experts of Sydney Hilton in expanding business have also been analyzed.

Hilton Sydney has already occupied a predominant place in the realm ofhospitality industry.  As per the global scenario Hilton group has expanded their widespread wings in 105 countries over 856,000 rooms (hiltonsydney.com.au 2018). This particular group is constituted with 14 brands across different market segmentation. Around 169,000 employees are intimately associated with this very specific group. However, in Sydney around 50 hotels are available under Hilton. Hilton Sydney is located incentral business district. This particular hotel is 3 minutes away from Town Hall Train Station. Australia’s GDP has been raised 18% till 2016 due to the contribution of hospitality industry (trademinister.gov.au 2018). The contribution of Hilton towards this economic growth is undeniable. Providing superior quality of services to the customers is the primary mission of this very specific hotel. By rendering diversity within their products as well as services Hilton group is expected to expand their entire process of business more widely all over the World. It is expected that this specific industry within 2020 would face a remarkable future growth of around 10% from the present business scenario.

In this specific hotel, customers are flexible to choose hotel accommodation as per their choice. From guest room to spacious suits every kind of facility is available in this very specific hotel. In order to make any kind of business deal the customers would get around 28 meeting and conference rooms along with living well premier health club and 25 swimming pools. Customers can get full time gym facilities inside the campus. Professionals associated with customer services are well trained endowed with effective professional skills and competency. Customers do not have to face any difficulties in dealing with the service providers regarding language problem (Zopiatis, Constanti and Theocharous 2014). Professionals are very much comfortable in using multi-languages with the help of which customers from different geographical backgrounds and cultural attitudes can interact with the service providers effectively. The service providers are available for both premium customers to average cost customers(melbournepolytechnic.edu.au 2018). Premium customers can get the facilities of stylish bars, celebrity chef, gym facilities along with swimming pools.

Macro Environmental Analysis

Before establishing a business process in the country like Australia, the business experts have made effective environmental analysis of Australia in order to know the political, socio-cultural, technological and legal factors.

Political Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Ø Stable political environment and regulation policy Ø Taxation policy is very such systematic Ø The country is free from political chaos
Economic	Ø Economically developed country Ø Around 18% of the GDP comes from tourism sector Ø Inhabitants belonging to Australia are from high level of income status
Socio-cultural	Ø People of diverse cultural backgrounds and attitudes Ø Implementation of diversity within workplaces Ø Different cultural and religious backgrounds get equal responses
Technological	Ø Technologically developed country Ø More than fifty percent of the employees are accustomed with the advanced technology
Environmental	Ø Extreme weather exists in Australia Ø Business experts provides environmental friendly products and services Ø Some of the major regulations are strictly maintained within the country such as environmental protection act, sea protection act, whale protection act.
Legal	Ø Implementation of anti-discrimination act, gender equality act, health and safety acts are strictly maintained at the workplace

Figure 1: Overview of PESTEL Analysis

(Source: Bharwani and Butt 2012)

Stable political environment along with systematic taxation policy is the core aspects for Australia for stabling large number of multinational corporations in this country. It has already been stated that tourism sector in this very specific country is flourishing due to which around 18% of the GDP of Australia comes from this particular industry. Therefore, Hilton Sydney would not have to face any kind of difficulty in establishing their entire process of business. In addition, the inhabitants belonging to Australia are efficient enough to afford the products and services of Hilton. Australia is constituted with the people of diverse cultural backgrounds and attitudes (Kandampully, Zhang and Bilgihan 2015). As a result, the organization like Hilton Sydneyhas focused to render diversity with services as well as products. As a result, people from different cultural backgrounds and attitudes would like to show their level of interest in using the services from Hilton Sydney. It is undeniable that Australia is out an out technologically developed country. People belonging to various geographical backgrounds and attitudes are well accustomed with the advancement of technology.

On the other hand, in quest of flourishing their business in the international market the business experts of Hilton Sydney has focused to use technology as the primary device to communicate with the customers. Australia is constituted with extreme whether in different season. As a result, Hilton Sydney has focused to make environmental friendly products and services to draw the attention of customers. By implementing some of the major regulations such as environmental protection act, sea protection act, whale protection act, the government takes major initiative in controlling environmental issues (Line and Runyan 2012). As a result, large number of multinational corporations has already established their business wings in the soil of Australia. Most of the inhabitable regulations for running business organizations like anti-discrimination act, gender equality act, health and safety acts are strictly maintained at the workplace of Hilton Sydney.

Strengths	Weaknesses
Ø Economy, technology and human resource, the three major components are huge strengths for Hilton Sydney Ø Employees are well trained with proper professional skill and competency	Ø Very expensive for low cost customers Ø Consequently, the number of target market is limited
Opportunities	Threats
Ø Expanding the entire process of business in the internal market Ø Increasing the attention of international customers by expanding the business in global market	Ø Competitors’ market threat is major threat for Hilton Sydney Ø The business strategy of Hotel Emirates, Jadan Cottage, Big Brook Cottage, Wagners’ Cottage are the major threat for Hilton Sydney.

Table 2: Overview of SWOT analysis

(Source: Brown, Thomas and Bosselman 2015)

Hilton Sydney is well developed in technology. The employees associated with this specific hotel are very much familiar with the advancement of technology. Customers by sitting at various geographical boundaries can easily access the websites of Hilton as well as their services. As a result, the communication between service providers and service users are very much flexible. In case of any kind of issue faced by the services of Hilton Sydney, the customers can communicate immediately with the service providersto resolve the issue (Daskin and Tezer 2012). This very specific business organization by implementing diversity in services can easily expand their business process more effectively all over the World. Competitors’ market threat is major threat for Hilton Sydney. The business strategy of Hotel Emirates, Jadan Cottage, Big Brook Cottage, Wagners’ Cottage are the major threatsfor Hilton Sydney. In order to overcome competitors’ market threat the business experts ofHilton Sydney would have to focus on rending most effective strategies and policies (Gursoy, ahmanand Swanger2012). The organization should increase their budget for social media promotion so that international customers can get in-depth overview about the products as well as services. People from various geographical backgrounds would like to show their interest in purchasing the products and services from Hilton Sydney.

Analysis

Hilton is a global company that is based in United States and owns several chains of hotels as well as subsidiary companies. It has a long history of expertise in fields of hospitality, ground-breaking innovation, phenomenal design and a dedication towards its target consumers. The structure of management has made the hotel one of the city’s best venues for fine wine, exquisite food, hassle-free events and conferences as well as exceptional and comfortable accommodation. Moreover, the exceptional creativity of the hotel’s management has inspired each aspect and managed to win the hearts of many customers (Hiltonsydney.com.au 2018).

In addition to this, their management’s innovation and creativity has extended to each area within Hilton, making this deluxe hotel one of the most innovative and prestigious hotels of Australia. Moreover, it is renowned for its relaxation suits and rooms for its customers and additionally, it is also well known for their amazing range of cocktail concepts at the Zeta Bar. The Hilton Sydney Hotel is one of the largest meeting venue and hotel conventions of Australia, with around 4,000 sqm of floor spacing. The hotel accommodates over 3,000 delegates approximately, across their four dedicated floors.

Founded in the year 1919 by Conrad Hilton, the parent company of the hotel is Hilton Worldwide. The hotel offers various products and services to its target customers, which have been discussed in this part of the assignment. Its products include 579 stunning suites and rooms for its guests, beautiful events and meeting spaces along with amazing décor, iconic marble bars, chic zeta bar and others. Moreover, the Central Sydney Hotel is just located opposite the Town Hall Station, which makes it easily accessible. In addition to this, the hotel has been awarded several times, due to its services and customer appreciation (Hiltonsydney.com.au 2018).

The twenty metre lobby of the hotel is sun filled and proudly portrays magnificent sculptures of aluminum by the well known sculptor of Australia, Bronwyn Oliver. These breathtaking sculptures signify Hilton’s class and elegance, which has managed grab the attention of businessmen and family persons. The target market of the hotel is a group of customers belonging not only to the business world, but also to those who prefers class and elegance. The company has been able to segment and prioritize its market on the basis of their needs as well as purchasing behaviors. The most common demographics, which the hotel has undertaken are certain attributes like age, education level, gender, income, residential area and others (Wagner, Wilson and Vescovi 2015).

PROMOTION MIX BUDGET
Advertising Expenses	Per unit price($)	Total price($)
Promotions	20000	400000
Advertising (Print and Electronic Media)	200	40000
Sales Promotions	300	600000
Social Media	Nil	700000
Total	20500	1740000

SWOT analysis

The potential growth sectors of the organization can be their business strategies, which involves expansion of the entire business processes in the internal market. Moreover, they can increase the attention of their international customers by promoting the organization on the global market (Jones, Hillier and Comfort 2016). In this manner, they can expect potential growth of their business as well as target consumers. 

• Cross cultural communication issue affecting hotel industry:

Cross-cultural communication barrier is one of the most effective issues affecting the business process of Hilton Sydney.Service providers are from different geographical backgrounds and attitudes. As a result, they have to face immense challenges in communicating with each other and sharing their views and thoughts regarding reaching the business goal. Organizational managers on the other hand have to face difficulties in making an effective collective decision due to cultural barrier as well as linguistic barrier (Gustavo 2013). On the other hand, the service providers are facing immense difficulties in dealing with the customers from different language backgrounds and attitudes.

• Psychological barrier affecting tourism industry:

Customers are from various geographic location having different cultural backgrounds and attitudes. As a result, service providers have to face challenges in maintaining effective communication with them.  Due to the increase of expectancy level after emergence of large competitors,Hilton Sydney facing immense barriers in establishing their entire process of business.

• The Growth of Airbnb

The most recent couple of years have seen a gigantic spike in locales like Airbnb, Homestay, HomeAway, and House Trip. Airbnb hope to accomplish a turnover of nearly $3billion this year and gloat an estimation of $31billion altogether. Both of these figures are set to expand increasingly finished the up and coming years.Airbnb as of now has 150 million clients. This, alongside clients of comparable destinations, decreases the no. of individuals usinghotels significantly.

1. Executive Chef

Job responsibilities

• It is a managerial role, which involves huge work behind the scenes.
• Oversees food operations at the hotels, restaurants, casinos or some other venues serving foods.
• He/she must supervise the sous chefs, cooks or other kitchen employees.
• Managing café, restaurant, catering departments, food and beverage departments and others.

Qualifications or Skills

• Bachelor’s degree as well as other associate degree is preferable.
• 7-8 years of working experience for the executive positions.

1. Event Planner

Job responsibilities

• Planning and managing events.
• Coordinating meetings and weddings.
• Convention and meeting planner.
• Managing special events, conferences and business meetings.

Qualifications or Skills

• Bachelor’s degree as well as other associate degree is preferable.
• 3-4 years of working experience for the executive positions.

1. Housekeepers

Job responsibilities

• Should maintain the standards of hotel cleanliness and are responsible for keeping the venue clean and organized.
• Cleaning hotel rooms as well as common spaces.
• Should be able to manage the laundry, making beds, stock linens, cleaning bathrooms and others.
• Physical stamina is required as they are often required to lift heavy loads or luggage of the customers.

Qualifications or Skills

• Bachelor’s degree in the related field, good skills of communication.
• Minimum experience of 2-3 years.

1. Porter

Job responsibilities

• Should be able to handle baggage for the guests.
• Should bring up luggage to the rooms of the guests and take down to the lobby.
• Parking attendant.
• Valet parking.

Qualifications or Skills

• Bachelor’s degree in the related field, good skills of communication.
• Minimum experience of 2-3 years.

It is undeniable that hospitality industry in the market of Australia has immense bright future ahead (Karatepe 2013). People belonging to various geographical backgrounds and attitudes should get equal priority and importance for being the part of Hilton Sydney. Employees should be hired as per their skill and competency level rather than their cultural as well as social backgrounds. Service providers should be out an out ethical in their way of services. As a result, both the customers and employees would get equal benefits and facilities (Ivanov 2014). The organization can easily draw the attention of large number of customers belonging to various multinational countries. Employees of Hilton Sydney can easily get an effective transferable facility based on which they can shift at their convenient place. It is assumed that the potential of future career of this very specific sector is high.

In order to become successful in the hospitality industry the transferable skills that are highly needed are as follows:

• Team work:

An individual should have the competency of making an effective communication among the team members so that they can provided their best performances. In order to fulfill organizational objective employees, need to have effective teamwork.

• Leadership:

Employees should have an effective leadership skill and style for providing their best endeavor towards services. With the help of participative skill of leadership, employees can take collective decision for making business strategies.

• Time management:

Delivering the services within proper time is one of the most effective skills that every employee should have for becoming an efficient professional.

• Decision making:

Being professional employees should have proper skill of making effective decision at the right time in order to control sudden business crisis.

• Commitment:

In a hospitality industry, the main duty of the employees is to be committed towards ensuring consumer satisfaction. This requires the employees to do whatever it takes to make the guests happy and also to go an extra mile for creating a positive perception in their minds (Weber et al. 2013).

• Interpersonal skills

Moreover, in order to become successful in the industry of hospitality, employees are required to have top notch communication as well as interpersonal skills. It is very natural that in a hospitality industry, the individuals are required to interact with the customers and provide them with spectacular services on a daily basis. Therefore, it is important to take a step further in order to correlate directly between those with excellent communication skills and those who are successful in this business (Wang and Tsai 2014).

• Problem solving

It is important for the employees in a hospitality industry, to have good problem solving skills as the customers or guests may come up with several problems and issues. Moreover, it is important for them to give creative as well as innovative and practical solutions to them after identifying their issues (Sisson and Adams 2013).

• Organized and Flexible

In the hospitality industry, the employees are required to be properly dressed and organized, who can multitask, without any difficulties. Moreover, the employees are often required to work at unusual hours; therefore, they should be adaptable to harsh situations (Dopson and Hayes 2016).

Conclusion:

The entire study has provided detailed overview on how the environmental factors leaves a major positive affect on the establishment of business likeHilton Sydney. Based on the political, economic and technological competency of Australia, the business experts of Hilton Sydney has decided to implement necessary strategies and policies for drawing the attention of customers. The study has provided detailed overview about the expected challenges that Hilton Sydney may have to face for drawing the attention of global consumers. However, potential of future career for this sector has been critically analyzed in this very specific study.

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