Hilton ( service industry)

SERVICE VALUE ADDED
(% OF GDP)
Source: World bank
Remark: World bank excludes construction and public utilities (electricity, gas and water) from service
industry.
• Gross Domestic Product
(GDP) of 2557 was at
12,141.1 MTHB.
• The proportion of service
sector in Thailand is stable at
around 50% of GDP.
• The proportion of service
sector in Thailand of 2014 is
at 52% of GDP.
• Thailand economy in Q2
2015 is still continually
growing up with the
supporting factors of the
growth of Tourism and Travel
business especially the
growth of hotel and
restaurant industry which is
up to 18.7% and the growth
of Transportation and
Communication industry is
up to 8.6% along with the
37.6% increasing of tourist.

SERVICES IN THE INTERNATIONAL
ECONOMY
 Professional Business Services
 Communication Services
 Construction and Related Engineering
Service
 Distribution Service
 Education Services
 Environment Services
 Financial Services
 Health Related and Social Services
 Tourism and Travel Related Service
 Recreational, Cultural and Sporting Services
 Transportation Services
 Other Services not included Elsewhere

WHY DO WE CHOOSE
HOTEL & RESORT SECTOR?
Satisfying rating index from foreign traveler rated
more than 3.0 point for Hotel & Resort sector.
Most spending cost per person comes from group of
European tourist with long stay period in Thailand.

WHY DO WE CHOOSE HILTON?
Top 10 of Hotel Chain worldwide
Hotel branches in over 97 countries around the world
Many brands provide to each target customer
More than 9 hotels represented in Thailand
Stylish hotel development under best service standard

ABOUT
HILTON
VISION
To fill the earth with the light and warmth of hospitality.
VALUES
H HOSPITALITY
We’re passionate about delivering exceptional guest
experiences.
I INTEGRITY
We do the right thing all the time.
L LEADERSHIP
We’re leaders in our industry and in our communities.
T TEAMWORK
We’re team players in everything we do.
O OWNERSHIP
We’re the owner of our actions and decisions.
N Now
We operate with a sense of urgency and discipline.

A ROOM FOR YOU
• More than 540 locations in 78 countries
• Hilton provides an authentic and
contemporary experience for our guests
worldwide.
• Guest rooms feature a smart, functional
design
plus thoughtful
amenities.
EAT & DRINK
• Whether dining in one of our
innovative on-site restaurants or
having a healthy Hilton Breakfast
in-room, you’ll find delicious and
accessible options to satisfy any
craving.
GLOBAL MIND. LOCAL HEART.
• Support a variety of charitable
efforts.
• Support global sustainability.
• Hilton hotel was the first to earn
both LEED and Green Seal
environmental certifications.
• We’re more than just a hotel.
We’re a global citizen.
STORY OF HILTON
WHAT CAN WE DO FOR YOU?
• Always ready to provide friendly,
individualized service to our
guests.
• Keep up your workout routine at
our on-site fitness centers or
relax at one of our spas.
• From booking to checkout, we’re
here to make your stay as
enjoyable as possible.

ORGANIZATION
CULTURE
Hilton align organization culture with all employees
to standardize global service quality.
1. Always start greeting to our valued guests as a
warm welcome.
2. Greeting with the guest’s local language (if be
able to), but if you don’t know where they are
from we can say greeting with our own language
with friendly smile.
3. Greeting to our guests everywhere in hotel’s area.
4. Keep in your mind that our customers trust in you
to let them feel like this is their own home.
5. Try to perceive what’s customer’s demand and
serve their needs.

ESTABLISHING EMPLOYEE’S STANDARD
PERFORMANCE
The reputation of Hilton is the key strategic of success in the past, the current and the future. Hilton
establish the employee’s standard performance in order to keep going on the growth of success
1. The respect and appreciation of diversity
We acknowledge the worth of diversity of our employees, our customers, our suppliers and our
business partners. We respect on the differentiation of race, nationality, region, culture and
environment.
2. The protection of the offensive
We set up the environment of our workplace to resist on any actions of the contempt and
aggressive.
3. The workplace environment of the security and hygienic condition.
We value to the awareness of the hygienic condition to satisfy the customer requirements and the
safety of our guests, our colleagues and our business partners by complying with rules of safety to
avoid an emergency situations.

LOCATION EUROPE
Rooms: 59,797
Pipeline: 29,000+
Under
construction:
16,000+
AMERICAS
Rooms: 558,801
Pipeline: 89,000+
Under
construction:
30,000+ MIDDLE EAST &
AFRICA
Rooms: 20,145
Pipeline: 20,000+
Under
construction:
15,000+
ASIA PACIFIC
Rooms: 39,887
Pipeline: 55,000+
Under
construction:
39,000+

STRATEGIC DECISION OF HILTON GROUP
In order to be the first choice of the world’s travelers. Hilton intends to build on the rich heritage
and strength of our brands by:
Consistently delighting our customers
Investing in our team members
Delivering innovative products and services
Continuously improving performance
Increasing shareholder value
Creating a culture of pride
Strengthening the loyalty of our constituents”.

HILTON DIFFERENTIATION
1. Build customer trust and create the unforgettable memories and
experiences through customers.
2. Hilton always base in the top worldwide tourist attraction in each invested
countries which is the important factor that attract customer.
3. The world famous people and historical events were took place at Hilton as
it’s always an honor to be selected for the special events.

CROSS CULTURAL MANAGEMENT
• Hilton Worldwide operate their global business with “Cross Cultural Management and
Administration” which makes the happening of intercultural exchange.
• Every single foreign partner has its own peculiar mechanisms of governing relational norms,
including knowledge and information transfer among colleagues.
• We gain the developing practical ways of studying culture change, adaptation and human
social behavior.
• Leading to the competitive advantages in invested countries.

PRODUCT AND CUSTOMER
TARGET
Hilton is synonymous with first-class hospitality. No one has more brands
spanning more lodging segments than Hilton. Each of our eleven brands speaks
to a different target, from luxurious full-service hotels and resorts to extended-
stay suites and mid-priced hotels. Partner with us to be part of the best name in
the hospitality industry.
Only 41% of customer use hotels over night.
Three segment of customer:
 Business segments
 Convention segments
 Leisure segments

HILTON BRAND POSITIONING:
For A Better Night’s Sleep
Branding strategies is powerful tool to position hotels effectively in
the market.
Branding is the strategy of defining, building and managing the
brands’ portfolio. Branding achieves its goals when companies are able to
define and maintain their distinctive and core competencies to ensure the
expected experiences the customers have.

HILTON
WITH HYBRID
STRATEGY
Branding Hybrid Strategy
allows companies that have their
core business focused in other
economic sectors to enter into the
hotel market by using their brand
power.

Brand Extension Strategy
The Hilton’s product portfolio includes eleven different brands which are the
following:
The Waldorf Astoria Hotels & Resorts
Conrad Hotels & Resorts
Hilton Hotels & Resorts
Doubletree by Hilton
Embassy Suites Hotels
Hilton Garden Inn. (Hilton,)
Hampton Inn & Suites
Homewood Suites by Hilton
Home2 Suites
Hilton Grand Vacations
Canopy By Hilton
Curio – A Collection By Hilton

HILTON HOTELS’ BRAND PORTFOLIO
Brand Segment
Countries/
Territories
Hotels Rooms Percentage of total rooms
Luxury 10 24 10,529 1.6%
Luxury 17 23 7,877 1.2%
Upper Upscale 80 554 196,670 29.0%
Upscale 32 371 93,054 13.7%
Upper Upscale 5 215 51,367 7.6%
31-Dec-13

HILTON HOTELS’ BRAND PORTFOLIO
Brand Segment
Countries/
Territories
Hotels Rooms Percentage of total rooms
Upscale 19 581 79,878 11.8%
Upper Midscale 15 1,937 190,635 28.1%
Upscale 3 333 36,778 5.4%
Upper Midscale 2 27 2,928 0.4%
Timeshare 3 42 6,547 1.0%
31-Dec-13

1. THE WALDORF ASTORIA HOTELS & RESORTS
Become part of a unique luxury brand with unparalleled service, inspirational
environments and sophisticated style and comfort in the world’s most distinctive
destinations. The essence of Waldorf Astoria is timeless luxury.
Guests experience the highest degree of anticipatory, personalized service in
an environment that is truly elegant, unique and “Better Than Home.”

2. CONRAD HOTELS & RESORTS
Conrad is a brand whose focus is on style, service and connection for the
contemporary traveler.
Found in thriving urban locations, these full-service hotels and sought-after
resorts feature exquisite views, flawlessly tailored guest services and high-tech
accommodations.

3. HILTON HOTELS & RESORTS
The equity of the most valuable name in lodging, and helping to perpetuate
the tradition that has made Hilton the very definition of first-class hospitality. Hilton
will benefit from a loyal customer base that spans all of the Hilton Worldwide hotels.
The efficiency and cost-saving economies that come with this network of
more than 4,000 hotels in 90 countries. A global reservations system, the award-
winning Hilton HHonors® guest reward program, our responsive operations support
and cutting-edge technology are just a few perks that come with making Hilton a
brand that you will want to stay with for a long time to come.

4. DOUBLETREE BY HILTON
For business and leisure travelers looking for a comfortable hotel experience, one
of Double Tree’s 371 (and growing!) locations offers a satisfying experience time after time.
Each guest is greeted with a fresh-baked chocolate chip cookie before going to
relax in their rooms, featuring Sweet Dreams® by Doubletree Sleep Experience bedding.

5. EMBASSY SUITES HOTELS
As the nation’s largest brand of upscale, all-suite hotels, Embassy Suites by
Hilton is a commanding presence in terms of size, geographic distribution, brand-name
recognition and operating performance.
For business travelers, it’s an environment with all the business amenities they
need to stay connected; for families, the two-room suites have plenty of space for mom,
dad and the kids. A complimentary, cooked-to-order breakfast served each morning
makes every guest happy, and the cost-effective prototype is a huge plus for investors.

6. HILTON GARDEN INN. (HILTON,)
This upscale, mid-priced, and focused-service brand delivers just what
guests need and eliminates what they don’t use. Hilton Garden Inn is an award-
winning concept that is targeted toward the individual business guest and the
weekend leisure segment.
Each hotel offers a Pavilion Pantry® market with microwavable items and
sundries; a restaurant featuring hot meals for breakfast, lunch and dinner; the
Stay Fit Kit® that guests can check out to maintain their fitness regime in the
privacy of their room or in the complimentary workout facility; and an on-site
guest laundry facility.

7. HAMPTON INN & SUITES
There’s a reason Hampton by Hilton is the number-one brand for investors.
Join a growing portfolio of over 1,900 hotels recognized around the world for
comfortable rooms and complimentary amenities.
On the House® hot breakfast, free high-speed Internet, and crisp and cozy
beds with fluffy white comforters are just part of what makes staying at a Hampton
a special value. At Hampton by Hilton, if guests aren’t 100% satisfied, we don’t
expect them to pay.

8. HOMEWOOD SUITES BY HILTON
Homewood Suites by Hilton is part of one of the fastest growing segments in the
hotel industry. These all-suites hotels cater to extended-stay travels, and each room
comes with a fully equipped kitchen and dinner table. Guests enjoy a complimentary
breakfast daily and a light meal Monday-Thursday evenings.
Homewood Suites also features complimentary high-speed Internet access, a 24-
hour business center, complimentary grocery services, recreation options and a 24-hour
on-site convenience store. When you develop a Homewood Suites by Hilton, your
property benefits from an upscale position in the extended-stay market, backed by the
Hilton name.

9. HOME2 SUITES
Join the Home2 Suites family to become part of an exciting new extended-stay
concept that delivers unexpected style, enhanced flexibility, expanded spaces,
differentiated amenities and passionate service.
At Home2 Suites, guests find value in the amenities and services—including a
complimentary continental breakfast, fitness and activity rooms, indoor pools and more
and in the innovative guestroom design that provides distinctive work, relax and sleep
areas with full kitchen, expanded storage and unexpected style.

10. HILTON GRANDS VACATION
A subsidiary of Hilton Worldwide, is based in Orlando, Florida. In addition,
there are regional offices in Las Vegas (Nevada), Oahu (Hawaii), New York, Macro
Island (Florida) and Sanibel Island (Florida).
Dealing in timeshares, Hilton Grand Vacations Company, LLC develops,
manages, markets, and operates a system of brand-name vacation club ownership
(timeshares) resorts. Club members can also exchange their intervals for vacations
at affiliated resorts worldwide.

11. CANOPY
The energizing new hotel in the neighborhood. Offering simple pleasures,
thoughtful extras and nice surprises. For a stay that’s positively yours.
The whole hotel thing comes down to one simple question: How can we
help? Whatever you might need, the friendly enthusiasts at Canopy will help. That’s
really why we’re here.
Canopy is your connection to the best local food and drink, art and music,
fun and fitness. Even the design of each hotel is locally inspired. So you can be, too.

12. CURIO – A COLLECTION BY HILTON
Curio – A collection by Hilton is a brand of Hilton Worldwide and is made up of 4
to 5 stars from Hilton. Individuality, it’s what unifies the hotels in Curio – A collection
by Hilton. These hotels exclude authenticity. They capture you. Each with a distinct
character and a personality you can’t duplicate.

COMPETITORS OF HILTON GROUP
Global Hotel Ranking
2015 by MGK Hospitality
of France has already been
finalized. The top 10 global
hotel group ranking was
measured from the
numbers of hotel branches
in their chains and the
numbers of rooms. Hilton
was ranked at the second
whereby all of the rest 9
are the main global
competitors of Hilton.
2015 2014 2015 2014
1 IHG GB 4,840 4,697 710,295 686,873
2 HILTON WORLDWIDE USA 4,278 4,073 708,268 672,083
3 MARRIOTT INTERNATIONAL USA 4,117 3,854 701,899 662,821
4 WYNDHAM HOTEL GROUP USA 7,645 7,485 660,826 645,423
5 CHOICE HOTELS INTERNATIONAL USA 6,376 6,340 504,808 506,058
6 ACCOR FRA 3,717 3,576 482,296 461,719
7 STARWOOD HOTELS & RESORTS USA 1,207 1,161 346,599 339,243
8 BEST WESTERN USA 3,900 4,046 302,144 314,318
9 HOME INNS CHI 2,609 2,180 296,075 256,555
10 JIN JIANG (inc. Louvre Hotels) CHI 2,208 918 241,910 128,952
WORLDWIDE RANKING OF HOTEL GROUP 2015
ROOMS
HOTELS & EXTENDED
STAY H.RANK GROUPS NATIONALITY

Brand Segment Selected Competitors
Luxury
Ritz Carlton, Four Seasons, Peninsula,
St. Regis, Mandarin Oriental
Luxury
Park Hyatt, Sofitel, Intercontinental,
JW Marriott, Fairmont
Upper Upscale
Marriott, Sheraton, Hyatt, Radisson Blu,
Renaissance, Westin, Sofitel, Swissotel,
Mövenpick
Upscale
Sheraton, Marriott, Crowne Plaza, Wyndham,
Radisson, Moevenpick, Hotel Nikko,
Holiday Inn, Renaissance
Upper Upscale
Renaissance, Sheraton, Hyatt,
Residence Inn by Marriott

Brand Segment Selected Competitors
Upscale
Courtyard by Marriott, Holiday Inn, Hyatt
Place, Novotel, Aloft, Four Points by Sheraton
Upper Midscale
Fairfield Inn by Marriott, Holiday Inn Express,
Comfort Inn, Quality Inn, La Quinta Inns,
Wyngate by Wyndham
Upscale
Residence Inn by Marriott, Hyatt House,
Staybridge Suites, Candlewood Suites
Upper Midscale
Candlewood Suites, AmericInn,
Towne Place Suites
Timeshare
Marriott Vacation Club, Starwood Vacation
Ownership, Hyatt Residence, Wyndham
Vacations Resorts

- Highly recognized brand worldwide.
- Experienced CEO and executives.
- Excellent customer service through provision of customized quest experiences.
- Formidable loyalty program with unique point of difference (Double Dipping).
- Strong focus on branding.
- Widely varying product offerings through multiple brands.
- Occupancy rate that exceeds break even.
- Increased synergy and cost saving through unification of Hilton hotels corporation and Hilton
international.
- Huge partnerships with 25 airlines , 3 car rental firms and other firms Good supply chain management.
- Technical innovations.
- Higher brand recognition makes the company priority choice for clients.
- Global presence and strong brand portfolio.
- Professional Standards.
SWOT ANALYSIS:
STRENGTH

- High leverage combined with downgrade.
- Weak financial performance affecting the company.
- Challenges managing customer expectations due to varying offerings.
- Relatively limited network size and distribution.
SWOT ANALYSIS:
WEAKNESS

- Target other customer segments.
- Increased market penetration (Hilton Hhonors members spend 4.6 billion on accommodations
per year but not all with Hilton).
- Boost brand loyalty.
- Increased expansion into emerging markets and Caribbean
- Acquisition of other hotels
- Personal trainers.
- Gaming activities would escape regulation, etc.
- Take advantage of emerging markets, especially with business class and mid-priced markets.
SWOT ANALYSIS:
OPPORTUNITIES

- Competition (primarily with Marriott International, Starwood Hotels & Resorts and Hyatt
Hotels).
- Availability of Information about each hotel’s operations.
SWOT ANALYSIS:
THREATS

PORTER’S
FIVE FORCES
ANALYSIS

RIVALRY AMONG THE COMPETITORS: (HIGH)
Hilton Worldwide is in the industry since the last 93 years, so it has been
a long time period since the company is operating in this particular industry.
Hilton Worldwide has to maintain their current status and should remain in the
same mechanism to enhance their productivity accordingly, as it is the only
thing from which they can compete with their new and existing competitors.

BARGAINING POWER OF CUSTOMERS: (HIGH)
Hilton Worldwide has perfect brand recognition and customer base,
however the company should be more vigilant to pay more attention
towards their consumers as it is a secret of exceptional growth in future
as well.

BARGAINING POWER OF SUPPLIERS: (LOW)
Hilton Worldwide has its headquarters located in the United States (US)
and it has its active recognition in different markets as well, in which suppliers
are very strong. Finding of suppliers in the United States (US) and any other
country is not a tough ask because there are many suppliers who are operating
in different countries which are more than ready to deliver their services
specially to manufacturing companies and hospitality companies. Due to this
particular aspect, the power of bargain from supplier side is quite low which an
effective sign is for the companies operating in this particular industry.

THREATS OF SUBSTITUTE PRODUCTS: (HIGH)
The threats of substitute products are increasing day by day. Some of the
substitute products of Hotel Worldwide are motel and small hotels; however
these products are not the entire competitors of the company. Though, there is
no problem associated with Hilton Worldwide with having these competitions
because of the large portfolio of the company, however, the company has to get
ready for every event in the future, because of the globalization

THREAT OF NEW ENTRANTS: (HIGH)
Barriers to Entry: The barriers to entry in opening and establishing a
hospitality company is quite low, which is not an effective sign for Hilton
Worldwide and other players operating in the market because new entrants
may increase the level of competition and pressure on them.
Barriers to Exit: The barriers of exit in this particular industry are also
high, which is again not in the favor of the company, as companies entered in
this industry are not allowed to get out easily.

ADAPTATION TO GLOBAL CHANGE
Nowadays the economy globalization has
become a part of the necessary requirement for
enterprises to sustain a successful business
operating in a competitive environment.
Accordingly, global expansion of hotel operations
has increasingly become a significant strategic
development for big hotel corporations.

ADAPTATION TO GLOBAL
CHANGE
As for Hilton hotel, a series of market
development strategies including:
entering new market segments and
spreading into new geographical areas are
made to capture the potential market and
take the leading role in the market
competition.
With the rapid development of
communication technology and international
commodities, the acceleration of funding,
technology and personnel are continuous
flow.

Focus to create a
sustainable model
In 2011, Hilton Worldwide announced TRAVEL WITH
PURPOSE, that focuses on creating shared value and provides a
cohesive, yet flexible framework to guide the activities of our
business across the regions, brands and hotel properties.
TRAVEL WITH PURPOSE FOCUS AREAS
- CREATING OPPORTUNITIES
- STRENGTHENING COMMUNITIES
- CELEBRATING CULTURES
- LIVING SUSTAINABLY

Travel with purpose focus areas
CREATING OPPORTUNITIES
• Striving to be an employer of choice
• Fostering diversity and inclusion
• Providing workforce development
and career pathways
• Supporting educational and life
skills programs for young people
STRENGTHENING COMMUNITIES
• Contributing to local economies
• Providing for basic needs and
disaster relief
• Supporting human rights
CELEBRATING CULTURES
• Facilitating commerce
through travel and tourism
• Providing cultural
experiences
• Preserving cultural heritage
LIVING SUSTAINABLY
• Managing efficiency and
performance of our natural
resources
• Investing in partnerships that
support restoration and
awareness

SERVICE QUALITY CONTROL
ISO 9001 and ISO 14001
Certifications for Quality and Environmental Management
Hilton Worldwide and its portfolio of 10 hotel brands has earned
ISO 9001 certification for Quality Management Systems and ISO
14001 certification for Environmental Management Systems. With
these certifications, Hilton Worldwide becomes one of the first multi-
national organizations to certify its entire system globally - more than
3,750 properties in 85 countries - achieving one of the largest ever
volume certifications of commercial buildings

MEMBER CARD
ALL ABOUT BLUE
Just Enroll
ALL ABOUT SILVER
4 stays or 10 nights
All ABOUT GOLD
20 stays, 40
nights or 75,000
HHonors Base
Points
ALL ABOUT
DIAMOND
30 stays, 60 nights
or 120,000
HHonors Base
Points

HILTON ACCESS TO THAILAND BY
JOINT VENTURE
Joint venture (JV) is a business agreement in which the parties agree to
develop, for a finite time, a new entity and new assets by
contributing equity. They exercise control over the enterprise and
consequently share revenues, expenses and assets. There are other types of
companies such as JV limited by guarantee, joint ventures limited by
guarantee with partners holding shares.

Hilton access to Thailand by joint venture with real estate
entrepreneur in Thailand such as
TCC Land Group of Mr.Charoen Sirivadhanabhakdi,
joint venture of "Double Tree Hilton and Hilton Sukhumvit".
Magnolia Fine Nest Group of Mr.Dhanin Chearavanont,
joint venture of "The Waldorf Astoria Hotel and Resort
Rajdamri".
CPN Pattaya Beach Co. Ltd., joint venture of "Hilton Pattaya,
Central Festival Pattaya Beach".
JOINT VENTURE

JOINT VENTURE
Benefits
- Access to new markets and distribution
networks.
- Increased capacity.
- Sharing of risks and costs with a partner.
- Access to greater resources, including
specialised staff, technology and finance.
Risks
- The objectives of the venture are not totally
clear and communicated to everyone involved.
- The partners have different objectives for the
joint venture.
- There is an imbalance in levels of expertise,
investment or assets brought into the venture by
the different partners.
- Different cultures and management styles
result in poor integration and co-operation.
- The partners don't provide sufficient leadership
and support in the early stages.

HILTON IN THAILAND
9 locations under 3 brands

THAILAND LOCATION DECISION CRITERIA
• Considerate place and business types to invest
• Analysis all environments of new hotel
• Considerate many diverse levels of engagement based on needs of each hotel
• Analysis through previous performance to develop best service with efficiency
price structure

Location Rooms
5 2,076
Location Rooms
2 455
Location Rooms
2 427
HILTON IN THAILAND

Hilton
Phuket Arcadia Resort & Spa

DOUBLETREE
BY HILTON
SUKHUMVIT - BANGKOK

DOUBLETREE
BY HILTON
PHUKET – SURIN BEACH

Source:
World bank
http://www.worldbank.org/en/country/thailand
The Center for Economic and Business Forecasting (CEBF)
http://cebf.utcc.ac.th/upload/report_file/file_th_66d17y20
15.pdf
Department of Business Development
http://dbd.go.th/download/document_file/Statisic/2557/H
26_201408.pdf
MKG Group: Hospitality ON
http://hospitality-on.com/en/news/2015/03/25/global-
hotel-ranking-2015-a-second-chinese-operator-climbs-into-
the-top-10/
http://www.slideshare.net/yvesandremobiot/hilton-
19311599
http://ccsenet.org/journal/index.php/ibr/article/viewFile/
7418/7100
 http://www.slideshare.net/federico.bel/hotels-brand-
strategies-english
http://www.managementservices.hilton.com/en/abou
t-our-team/our-brands.html
http://www.slideshare.net/yvesandremobiot/hilton-
19311599?next_slideshow=1
https://www.youtube.com/watch?v=xtfdEawmQmg
https://en.wikipedia.org/wiki/Joint_venture
http://www.bangkokbiznews.com/mobile/view/news/
503208
http://cpn-th.listedcompany.com/news.html/id/78153
http://www.prachachat.net/news_detail.php?newsid=
1367921579

Hilton ( service industry)

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