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Strategic Planning in Hospitality Assignment Sample

Strategic Planning in Hospitality

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Introduction - Strategic Analysis of Hilton Hotel: SWOT, PESTLE, and Porter's Five Forces

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Hilton Hotel is an American multinational company that delivers hotel services to its customers. The report has focused on the description of the internal and external market or environment of Hilton Hotel. Based on the situation and environment analysis, some recommendations are also provided in this section.

SWOT Analysis

The SWOT analysis of Hilton hotel has been analyzed below:


A globally recognized brand

Hilton is a global hotel chain with properties all over the world. The network hotels, as well as the resorts sector of the corporation, operate in almost 110 countries across the globe. The hotel operations segment has nearly 6,000 properties and 980,000 rooms(Hilton, 2022).

A huge customer base

Hilton has over 18 brands that serve approximately 50 million clients in various regions across the world. The company offers a variety of incentives to keep customers interested(Hilton, 2022). For instance, users are encouraged to book hotel accommodations and gain discounts.

Brand image

The company has also a good brand image for providing the services as per the requirements of the customers. The 18 different brands of the company have also created a brand image around the globe(Hilton, 2022).

Employee satisfaction and benefits

The Hilton hotel has a well-deserved distinction for treating its employees well. The corporation acknowledges that the Hilton hotel's most significant asset is its personnel. As a result, the hotel offers ComPsych Guidance Resources, a Savings Plan, Health and Insurance Coverage, Hilton Honor Program, Educational Assistance Programs, Travel Program, Employee Assistance Program, and Employee Purchase Program to them(Hilton, 2022).

Management operations

Hilton has the best management and performance evaluation structure in the hospitality and hotel sector. It shows up in the efficiency of the organization. It keeps track of skill improvement, advances, pay raises, and a variety of other motivational factors.


Issues of a data breach

Data breaching is the most crucial issue in Hilton Hotel. Data breaching has caused a huge security concern among the customers.

Stakeholder’s dissatisfaction and lack of faith

Hilton Worldwide Holdings shares were exchanged for $15 million by Blackstone Group LP. It was a significant sponsor in the firm. Due to this, the shareholders have lessened their trust in Hilton Hotel(Hilton, 2022).


Marketing operation

Hilton uses a variety of social media sites to sell and advertise its services, including Facebook, Linkedin, Twitter, and others. Above all, the hotel industry as a whole can make the area more accessible for customers (Hilton, 2022). Simplicity can also appeal to a wide range of customers. It will generate a huge customer base and brand image for the company.

Market development

As the company has a huge brand image and a great customer base, it can increase the market of the company.



Hilton hotel group has to face a great deal of competition in the marketplace. The competition level among the competitors of Hilton Hotel Group can acquire the market of the company if no innovation is made in the products and services (Hilton, 2022).

Covid-19 pandemic

Due to the global pandemic, the ban on travel and tourism has caused a huge financial loss in the hospitality industry. Such loss can impact the organizational operations and also the growth and development of the hotel.

PESTLE analysis



Political factors have a huge impact on organizational operations. The government rules, regulations, tax rates, and other guidelines are required to be maintained for operating the functions in the organization.


These are factors that influence the company's success which has both long and short consequences. Inflationary pressures would have an impact on how the company sets prices for certain items of the Hilton Hotel. It would also have an impact on the consumer's spending power and purchase habits. Inflation rates, interest rates, foreign currency changes, and socioeconomic growth phases are just a few of the economic factors to consider when starting a firm.


Hilton must also consider sociological factors including client expectations, interests, and pReferences. Cultural attitudes, demographics, socioeconomic situations, and the sociocultural market are among the variables examined.


Technology has had a significant impact on corporate operations. Through social media and digital media channels, customers are linked. Product suggestions, as well as online purchasing and payment services, are in great demand. The company's infrastructure in the workplace must be strengthened to improve operations using technology. Artificial intelligence and machine learning might be used to study customers' purchase habits. Businesses may also use several social media platforms to build relationships with customers and solicit feedback.


The Environment Act, Employment Act, Consumer Protection Act, and Workforce Safety Act all appear to be requirements that must be followed if the hotel is to succeed.


Environmental factors may influence business operations. In terms of waste management, the use of plastic items, and water use or consumption, the company needs to follow government rules and regulations. In light of these components, the corporation must adopt organizational functions.

Porter’s five forces

Porter's five forces help in understanding the competitive advantage of an organization. The analysis has been done in the context of the Hilton hotel.

Threats of new entrants

New competitors in the hotel business bring new ideas and ways of working, placing further pressure on Hilton Worldwide Holdings Inc. to cut expenses, cut expenditure, and offer new value propositions to customers(Hilton, 2022). Hilton Worldwide Holdings Inc. must manage all of these issues and implement effective features to sustain its competitive edge. The only way to decrease the danger of new entrants is to innovate products and services (Ford, 2020).

Bargaining power of suppliers

Almost every firm in the hotel industry gets its raw materials from a variety of places. Hilton Worldwide Holdings Inc.'s market profitability may be harmed by suppliers with a dominant position in the industry(Ford, 2020). Suppliers with clout in the service industry use their position to extract higher fees from the hotel industry. High supplier negotiating power has the potential to reduce the company's profitability.

Bargaining power of customer

Buyers might be difficult to please. They try to get the best deal possible while investing the least amount of money possible. This has a long-term impact on the Hilton Hotel's earnings(Hilton, 2022). The smaller and more powerful Hilton Hotels' client base is, the more negotiating power and capacity clients have to demand higher discounts and bargains.

Threats of substitute products

When a new product meets similar customer wants in different ways, industry profitability suffers. To replace storage hardware components, software such as Dropbox or Google Drive can be employed (Ford, 2020). A major threat exists whenever substitute goods and services offer a value proposition that appears to be considerably different from the industry's most recent goods.

Rivalry or competition

When present participants in a sector compete fiercely, prices fall and the industry's financial condition deteriorates. Hilton Worldwide Holdings Inc. has to compete in a crowded market. This competition has a detrimental impact on the long-term viability of the company. Hilton Hotel has numerous competitors in the market providing the same facilities(Hilton, 2022). It can be a huge threat to the growth and development of the company.


TOWS analysis


  1. Good customer base
  2. A high brand image
  3. Employee satisfaction
  4. Management operation


  1. Better marketing functions
  2. Better market position


  1. Data breach
  2. Lack of trust among stakeholders
  3. With proper training and development to the employees, the data breaching issue can be reduced.
  4. The managers of the company can increase the satisfaction and trust of the stakeholders. They need to consult with the stakeholders before making major decisions.
  5. Reducing data security issues with necessary actions can increase the brand value and customer satisfaction of the company.
  6. Increasing the satisfaction and trust of the stakeholders can help the company gain a better market position as well as better performance.
  7. The managers need to identify the needs and requirements of the suppliers and the shareholders for meeting their satisfaction.


  1. Financial loss in pandemic
  2. Rival companies
  3. Proper financial forecast and budget are required for the company to overcome the financial loss. It will help increase the revenue collection of the company.
  4. Also, providing the customers with the products and services as per their needs and preferences can help in increasing the chances of customer retention. It can enhance the brand value of the company.
  5. Developing innovative products and services is required for overcoming the threats of rival companies. The managers need to develop innovative and cost-effective products for the customers. It will increase sales of Hilton Hotels (Li, & Soulivanh, 2020).
  6. Reducing the financial loss with appropriate strategies can help improve the market share of the hotel. It will also generate a good market position.
  7. Innovative product development will increase the competitive edge of the company in the marketplace(Jahiu, 2020).


Throughout the entire discussion, it can be stated that the situational analysis of the Hilton Hotel is very significant as it can help make effective decisions. The major weaknesses of the company have highlighted the most crucial areas that need to be improved. Also, the competitive situation of the company has been identified which will help in implementing proper strategies for the growth of the company.

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