Hilton Hotels and resorts are a global brand of hotels and resorts which is based on American multinational hospitality company Hilton. COVID 19 has spread all over the world and causing a great impact on almost all types of industries all over the world. The hospitality industry is greatly impacted due to the effects of coronavirus in all over the world. The impacts of coronavirus pandemic have impacted the hospitality industry in such a way that traveling has minimized as in coronavirus traveling has been restricted due to the fast transmission of the virus through physical contacting of people. The physical distancing has been promoted for prevention of coronavirus and slowing rate of transmission of a pandemic. The primary focus of governments and business organizations has been to ensure the safety of people. The economic growth, revenue, and supply chains of the hospitality industries have been impacted by a great range. The hotels and other sectors of the hospitality industry had shut down due to coronavirus pandemic. The Hilton hotels have suffered from a great range of impacts on various operational sectors of organizations such as operations, functionality, supply chain, financial aspects, and many more. The revenue of the Hilton hotels has been adversely affected due to coronavirus pandemic. It has been estimated that the Hilton chain of hotels has shown approximately 56% to 58% of the declination of the revenue per room. The revenue has been affected due to various factors.
The operations and financial conditions of the Hilton hotel are changing rapidly as an impact of coronavirus. The prevention strategies of COVID 19 are demanding a change in the Hilton hotel in its procedure and style of working. Due to the safety procedures the operations in a business environment, Hilton is facing issues such as the establishment of social distancing, among the guests of Hilton hotels. The impact of coronavirus has resulted in resisting customers in traveling to a destination and stay in the Hilton hotel. The whole industry is facing these issues in which customers are not willing to stay in hotels or travel to another destination as a risk of health issues(Reimers, et. al., 2020). The hotel stays of customers have reduced around 50% to 70% which has reduced and impacted the revenue generation of the hotel. The hotel business has shut down to the lowest level in which the staff and workers of the Hilton hotel have also been impacted. The business impact has resulted in a reduction of business activities which has caused losses for Hilton hotels in terms of economies and financial situations. The revenues of Hilton have reduced from great range. The Hilton needs to establish a range of processes and procedures to reduce the resistance and hesitance of customers to travel and stay at the hotel. The measures need to process some actions in which prevention of virus need to be established to increase of interest of customers to stay in hotels. These are the major impacts of coronavirus which has been faced by Hilton hotels.
Background of the situation
Hilton hotels are a multinational hospitality company that is based on America which operates a large number of franchises of hotels and resorts all over the globe. This corporation is founded by Conrad Hilton in May 1919 which is now being operated by Christopher J. The hotel chains of Hilton runs around in almost 120 countries which include 689 units that are managed directly by Hilton and 4,947 units are franchised and many more. Hilton has various operation units in all over the world(Ebrahim, et. al., 2020).
The situation of shut down of most of the chains of hotels and resorts of Hilton hotels has arisen due to the attack of coronavirus in all over the world. The coronavirus has been declared as pandemic and is rapidly spreading all over the world. The Hilton hotels have been adversely impacted due to the spreading of the coronavirus(Pettenuzzo, et. al., 2020). The hotel chains have been closed to stop the spread of viruses on the guidelines or instruction of the related governments all over the world. This situation is the same for all kinds of industries and in all countries due to the impacts of coronavirus. The spread of coronavirus has impacted all types of industries and affected the revenue generations and profits of various countries to drop down to a lower level as a result. The economy of Hilton has broken due to the effects of corona and the situation for the company.
The question about the situation of the Hilton Company is very important to analyze the condition of the situation of Hilton and results can be found out to resolve the problems or issues that have been emerged as a consequence of the coronavirus pandemic. The Hilton is a company that is directly related to the people and is involved in the safety and security of the people when come in contact. The necessary measures and steps need to be taken by the company to handle the post effects of coronavirus which have adversely impacted on the business activities of Hilton and its whole chain of franchises(Aljadir, et. al., 2020). The question is also important to describe the changes and processes that need to be taken to come out of the crisis which isimportant to be addressed by the company to handle the situation of the company. The question needs to be addressed by the company which will help the company to find out the answers for the situation which is being faced by the company after the impact of the coronavirus. This is very important to resolve the issues related to the drop-down of sales, revenue, and customer loss due to coronavirus. The measures like social distancing, hand washing, and six feet difference need to be maintained to improve the situation and trust of consumers need to be generated again for the generation of revenue like before for the Hilton chains of hotels and resorts.
The knowledge and details from such analysis are presented and it helps in better understanding the research report. It assists in evaluating the critical documents and evidence which had to be collected and gathered in executing the project. The research mainly concentrated on assessing the effect of COVID 19 on the Hilton hotel and its whole business operations(Huang, et. al., 2020). This method is essential as it enables us to collects all the required data and information on a specific topic. Within this segment, the specific analysis strategies and techniques which have focused on effectively gathering knowledge. By using accurate methods and techniques, an investigator will be capable to gather accurate data inevitably.
Data collection methods
It is that method whose main purpose is to collect and provides essential knowledge associated witha specific topic.It was the researcher that it is the study thatis often required assessment that assists in determining the sources from knowledge and data are attained. There are two forms of methods for gathering accurate information which include primary and secondary data collection tools.
Primary: It is that method which is used to focus on gathering and obtaining new information. It is the collection of data by a researcher from first-hand sources, by using methods such as interviews, questionnaires, surveys, experiments and so more. It is collected with the research project which is directly from primary sourcesUtunen, et. al., 2020. This is used to collect original data which are directly gathered from selected respondents and analyze their views and opinions regarding issues faced by the Hilton hotel due to the COVID 19.
Secondary:It defines as that data that is used for collecting and gathering second-hand data which was written and developed by someone else. The common method for the secondary data collection includes a case study, books, journals, articles, and many more. The information collected by government departments, organizational records, and data which was originally gathered for another research motive.
In this research, both primary and secondary data collection method has been used for collecting and gathering authentic data and information for developing an effective research project properly.
It is referredtoas that tools which are uses to complete the research. Such can be qualitative and quantitative or mixed. Thishelps collect accurate information and data to complete the whole research in a better manner. For this study, the researcher needs to focus on analyzing the major issues and challenges due to the COVID 19 for the hospitality industry are examined.
Qualitativemethod:It mainly involves collecting and analyzing non-numerical data to evaluate and understand the opinions, concepts, and experiences. This can be used to gather depth information which generates new ideas for the research in a better manner(Shawar, et. al., 2017). This method would be unstructured interviews that generate qualitative data with the help of open-ended questions. This enables the respondents to communicate with some depth, selecting their words.
Quantitativemethod:This is that technologythat is used to collect data in the form of numerical and graphs. It is used to test or confirm major assumptions or theories. This type of research can be used to develop common facts regarding a specific topic. Various sources help in collecting quantitative methods such as observations, experiments, surveys, case study and so more(Zaidi, et. al., 2020).
In this study, an investigator has been the qualitative and quantitative method of collecting data and it helps in gathering accurate data for completing the research project.
It is defined as a plan and process which mainly contains steps of broad predictions to detailed tools of data collection, interpretation, and analysis of data in a better manner. This is based on the nature of research issues that are being highlighted effectively. There are two types of research approaches which include inductive and deductive. An inductive approachis a logical procedure in which multiple premises, all the accurate and find out the most truth content are used for completing the research(Hwang, et. al., 2020). It is often used in an application that includes forecast, behavior, and estimation of data. On the other hand, Deductive approach is the general statement or hypothesis and it helps analyze the possibilities to achieve a specific, accurate conclusion of the report, the scientific method mainly uses deduction to test the hypotheses and other important theories.
In this research, the deductiveapproach has been used to measure the data and information that are important for developing the study in a better manner.
For completing the research, various resources help in developing and planning the study in a better manner. it includes books, magazines, journals, newspapers, online surveys, brochures, and many more(Ponjavić, et. al., 2020). Thishelps analyze the topic of the research which described the impact of COVID 19 on the hospitality industry like the Hilton hotel. It is important for research is to focus on analyzing the Hilton hotel functions which majorly impact during the pandemic and its revenue is decline.
In this research, an investigator has been found out that the Hilton hotel face business-related issues and problems due to the COVID 19. It has been analyzed that hotel faces various challenges that can negatively impact the business functions and its operations. Hilton workforce rate cut by 22% and there are around 2100 jobs are lost by employees which influences the business operations and its profitability(Zhu, et. al., 2020). In this coronavirus, the Hilton hotel faces worse effect on their operations, accommodation rate, and lack of guest appearance. Due to the COVID 19, travelers forced to cancel their bookings and stay at home when the government enforced lockdown in the whole country. In this study, it had been found out that most of the hotel operations are declined and their booking rate is decreased as no one person allows traveling from one place to another, and the government strictly announce to the people to stay at home for their protection.
All the important data and information has been found out from the use of different methods such as a secondary and primary collection of data in a better manner. There are various websites and news sites which are used to collect and gather accurate information that has been faced by the Hilton hoteldue to the coronavirus(Chang, et. al., 2019). This pandemic greatly and majorly impacts on the hotel business functions and its activities. The hotel faces challenges and issues such as loss of employees, impact on operations, reduction of profits and income, and many more. It has been analyzed that various sources of methods have used in this report for gathering authentic data which helps complete the report accurately.
There are various challenges encounter by the researcher in which government sealed all across the world of international borders;they are doing the suspension of all the global and domestic flights. Due to COVID 19, the hospitality industry faces different issues that have affected the sector. The impact on demand and requirements for hospitality is greater than many of the sectors, but it is varied among the hotels, restaurants, air, cruise and so more. The crisis is already separating the winners and losers by those which had strong digital existence and some strategies to drive business operations(Sönmez, et. al., 2020). The investment in technology all over the hospitality in the terms that will mainly concentrate on resolving immediate issues and provides new business opportunities.Along with this, the Hilton hotel faces various issues thathavemajorly affected by COVID 19. This pandemic also brought itself as health and hygiene which is going to impacts consumer lifestyle. Thechallenges for hotel owners are to develop a robust consumer which is connected to the ecosystem to the employees, position guests, and brand security. It has been analyzed that most of the hotel operators have indicated a decline in the bookings would hit a bottom.
In this report, primary data has been used for collecting and gathering accurate data which helps in analyzing the Hiltonhotel issues due to the COVID 19. It is important for the researcher is to focus on maintaining and collecting accurate data which has been used for developing the research project in a better manner. In this, the questionnaire has been used to collect authentic information from 30 respondents and they are given their views and opinions regarding issues faced by Hilton hotel.
Q.1. What is your age?
Q.2. What is your gender?
Q.3.Do you know about the Hilton Hotel?
Q.4.Are you aware of the Hilton hotel face issues during the COVID 19?
Q.5. What are the challenges faced by the Hilton hotel due to the COVID 19?
· Bookings cancels
· Reduction of profitability
· Impact on hotel operations
|Q.1. What is your age?||Frequency|
Interpretation: Based onthe above table, it has been analyzed that most of the respondents who are given their views and opinions regarding the Hilton hotel face challenges and its impact on their whole operations and their functions.
|Q.2. What is your gender?||Frequency|
Interpretation: The above table has been described that most of the respondents are male and the rest of the 10 respondents are 10 and remaining of the 5 are others who are providing their thoughts regarding the Hilton hotel issues due to COVID 19.
|Q.3. Do you know about the Hilton Hotel?||Frequency|
Interpretation: From the above-described table, it has been analyzed that there are around 20 respondents who are aware of the Hilton hotel, and the rest of the 10 participants are not aware of this hotel.
|Q.4. Are you aware of the Hilton hotel face issues during the COVID 19?||Frequency|
Interpretation: As per the above-described table, it has been examined that there are approximately25 respondents who are aware of the Hilton hotel face challenges during the COVID 19. Rests of the 5 do not knowanything regarding this consideration. It is important for all the people is to understand that most of the industries are facingmajor challenges that directly impact their business operations and their functions effectively. Along with this, it is the major issue which had face by the Hilton hotel due to the COVID 19.
|Q.5. What are the challenges faced by the Hilton hotel due to the COVID 19?||Frequency|
|· Bookings cancels||10|
|· Reduction of profitability||15|
|· Impact on hotel operations||5|
Interpretation: It has been analyzed that there are various issues and challenges which had face by the Hilton hotel during the COVID 19. There are around 10 respondents who agree on that statement in which hotels booking are cancel, the rest of the 15 respondents are reducing the profitability, and remaining of the 5 participants agree on the impact on hotel operations.
Analysis of findings
The researcher of this study uses knowledge and data to critically evaluate the identified issues. In this, the Hilton hotel faces major risks and problems due to the coronavirus and it is majorly impacting their business operations. COVID 19, now internationally carrying position of the pandemic which had led to a worldwide crisis with its effects on the hospitality industry. However, the Hilton hotel has never skilled and sudden recession. Thehotel faces such issues and problems which directly impact on their business functions(Zeng, et. al., 2020). The effects of COVID 19 spread in all over the world; the main focus for the government and businesses is the security of their people. The implications for economic growth and company profit which have led to high markets across the world. The hotel operations are stopped due to the pandemic and it spread all across the world and most of the countries are facing such issues. This pandemic majorly impacts the hospitality sector where the government books the hotels for quarantine people and some of the hotelsare close during this process. In the crisis, the communication should take and lead role in achieving out the customers gently and aggressively to reassure them of security in their decisions to start traveling.
This research helps in understanding the major impact which is face by most of the industries and by this hospitality sector operations are decrease and decline in a continuous manner. It has been analyzed that the researcher evaluates the main issues and challenges which arise when COVID 19 createsa major influence on humans. Every country’s government announces the lockdown and orders the common public to not allow to freely traveling in any place and they should stay at home which will be a safe and secure method for everyone(Vandebroek, et. al., 2020). The lockdown induced by the COVID 19 has brought the travel and tourism sector to the standstill, along with the occupancy declining in the last years of income. The revenue of the room available is collapsed by 64% in the march as compared to the previous month. It is analyzed all the issues are arisen by the COVID 19 impact and it stops travel and tourism business. The government of the US stop traveling cancel all the bookings of the people due to the focus on their health. As a result, it is analyzed that the Hilton hotel will see its income and profits decline by thousandsof crores in 2020. A large number of the hotels in the country are unbranded and decline under the other accommodation which includes guesthousesand homestays, they are offering great opportunities to the new workers to start their business and gain more income by selling or distributingrequired products to the final customers. But due to the coronavirus, all the workers are losing their job and they do not get any salary which makes difficult for them to survive their life.
The research also reveals that most of the countries have announced different packages for the hospitality industry, its significance to their economies. The industry which is suffering the most immediate repercussions is the hospitality sector and leisure industry. In this, hospitality is the complex due to face fear of community spread through the travel and group surroundings. The news has to containthe cancelation and rearrangementof events, agreements, conferences, and sports leagues that areclosely driving the travel and tourism for business. The industry has already faced mass scale cancellation for travel bookings and hotel accommodations and it will continue(Leonardi, et. al., 2020). In this situation, the main focus of the government is the safety and security of people. Along with this, it is important for the researcher is to face such issues and challenges which create a negative impact on the business operations and its functions effectively. COVID 19 has affected every sector across the world, the hotel sector is among the hardest hit. As per the research, it is analyzed that most of the hotel is close to their hotels. COVID 19 is the issue and challenge to both livelihood and lives. The crisis is unpredictableand quickly in a better manner. Various factors are driving the hospitality sector before the COVID 10 which includes enhancing the disposable income, new travel trends, increasing online operations due to the enhanced internet penetration,and web existence of hotels and tourism.
The expanding global tourism sector was one of the main aspects which driving the hotel sector growth level. A large number of international tourists’arrivalswhich had increases continually over the previous decades. With the evaluation of this research, the effects of COVID 19 on the hospitality sector can be analyzedin all the regions which include Europe, Asia, North America, and the rest of the world(Luo, et. al., 2020). The virus outbreak and containmentwhich are measures announced by the government which has led to a steep decline in international and domestic travel.The impact of the COVID 19 and it ensure that lockdown has various affected the hospitality industry. there are the various majority of the hotel operators which are except will take 13 to 24 months for their hotels to return to revenue per available room. The government restricts all the functions of the hotel such as Hilton hotel also face such restriction. Most of the hotel rooms are used for active patients who are suffered from COVID 19. According to the survey, the hotel development and formulation have slowed down and most of the hotel openings are likely to be deferredby at least 6 months.
Analyticalframeworks are developed and designed to structure an analyst thinking and it effectively helps in logical thinking. These are such models whose main aim is to guide and facilitate the sense of understanding and developing accurate actions. Porters five force model is the strategic management method and tool which assists in evaluating and determining the competitive advantages of an industry(Nicola, et. al., 2020). The porters five force model can be used to examine and analyze the industry where Hilton hotel operates, in terms of attractiveness with the help of inherent profit and income potential. The data and information examined by using a model can be used by strategic planners for Hilton to develop strategic decisions in a better way.
Hilton Porters Five Forces Analysis:
The threat of new entrants – The economies of scale is complex to reach in the industry where Hilton operates. This will make it easier for such who are producing and developing huge capacities to gain cost benefits. During COVID 19, the hospitality industry facesa large number of issues and challenges which restrict all operations and functions. in this time, they do not have any threat of competition such as Marriott and other international hotels as they are also close due to the pandemic situation arise in all over the world(Barrero, et. al., 2020).
Bargaining power of suppliers–There are a large number of suppliers in this sector where Hiltonregulates a lot of compared buyers. This means that all the suppliers have less control over their rates which they are offers to the buyers. It is the main issue which is face by the hospitality industry but now they do not face issues related to COVID 19 due to this no one person allows to travel from one location to another.
Bargainingpowers of buyers – In this situation, buyers can choose and buy any product which they like and they can also buy from any sellers. In this condition, there are a large number of sellers who are providing a similar type of products and services so that the buyers can buy any of the goods from such sellers who have given them a reasonable rate of products. Hilton can focus on innovation and developing of unique products to gain the attention of more buyers, quality based products and differentiation of goods are essential to buyers in this sector and Hilton also attracts several customers by concentrating on such things.
The threat of substitute products or services–In the context of the Hilton hotel, there issome substitute is available for the goods which are developed in this sector. It is important for the Hilton hotel is to focus on analyzingcustomers’ needs and wants and as per this, they should make changes in their current products. Along with this, Hilton can concentrate on providing great quality of their goods. as a result, buyers would select their products which are giving quality baked goods at a reasonable rate(Nicola, et. al., 2020).
Rivalryamong current firms–In this, the number of competitors in the sector where Hilton hotel regulates is very few. There are various rivals are exist in the current market place which creates conflicts for an organization. During the coronavirus, the hospitality industry majorly affected by this and they are face issues such as bookings cancelation, the decline in revenue and so more. Also, other competitor hotels also close and some are used for quarantine centers where infected people are live.
Conclusion and Recommendations
It has been concluded that various sectors have been impacted due to the effects of coronavirus spread as a pandemic in all over the world. The hospitality industry hurts business activities. The Hilton hotel needs to prepare for the overcoming of business after coronavirus. The impacts of coronavirus have been concluded in the report in which the various aspects of impact on the business activities of the Hilton hotel. The financial and revenue of Hilton has been impacted due to coronavirus. The recommendations for the improvement in business operations and functionality of Hilton hotels have been concluded in the report. The various aspects of the impact of coronavirus on the hospitality industry and Hilton hotels have been concluded in the report. The impact needs to be used to create further conclusions for the improvement of situations to enhance business activities. The various aspects of the improvement and enhancement of the business activities of the Hilton hotel in the given report and recommendations for the improvement of the situation for the post effects of coronavirus need to be taken for the Hilton hotel.
It can be recommended that every industry in the globe is suffering from various impacts on business activities due to the spread of coronavirus in all over the world. The Hilton hotel is related to the hospitality industry. The Hilton hotel needs to change the way of doing business as the whole world has to accept a new way of normal behavior. The new normal is now considered as not touching the face, social distancing, wearing masks are some ways to live a new normal life which has been come to exist due to the spread of coronavirus in all over the world. Hilton hotel needs to establish new rules and regulations for the working of the business in hotels which should concern the safety and security of the staff members, employees, and customers of Hilton. The safety measures need to be taken in which the people who have symptoms of coronavirus need to be provided with hospital care to treat them. Every customers or employee of the hotel need to be screened before entering the premises of the hotel or start working for their shifts. This step will reduce the level of the spread of coronavirus which will improve the trust and faith of customers for Hilton to increase the stay in hotels. This is a very important part of overcoming the crises of coronavirus. The policies for health safety and security need to be established by the Hilton hotel which will ensure the safety and security of people who will be customers for Hilton and the employees will be safe working to improve the revenue of the Hilton hotel. The thermal scanners should be used for every person who enters the premises of the hotel to ensure the outbreak of coronavirus in hotel workers which will play an important role in entrusting customers to stay in a hotel which will improve the economic conditions of Hilton hotels. The steps for improving the situation of the hotel to increase the revenue need to be taken, which are directly related to the customer’s stay and involvement of consumers of Hilton. The hygiene and cleanliness need to be ensured by the Hilton hotel in which the customers will be safe to stay in Hilton and it will improve the revenues of Hilton hotels by encouraging the stay of customers in hotels to enhance the business activities. This will be enhanced to improve the business policies to expand and recover from the crisis of coronavirus.
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