Performance Objective Of The Hotel Industry

The hotel industry is a very competitive segment within the hospitality industry. Top executives of hotel companies such as Hilton, Marriott, Hyatt, and IHG performance is judged by their stakeholders. The stakeholders judge these top executives on how fast and big they can grow their company. This can be done by creating new brands to get different customers into the hotel, along with maximizing the wealth of the company by bring in more revenue. The more revenue brought in will later result in higher stock prices. The higher the stock price is in the market the more people will want to invest and be an owner of the company. The primary performance objective of a publicly-traded hotel companies are to have excellent customer service, product …show more content…
Hilton has a great loyalty program called Hilton Honors. This reward system allows you to redeem rewards and experiences for just staying at one of their location worldwide. Product quality is very important performance objective. When customers come into a hotel they have expectations that the hotel room will be clean, all the amenities works, and the question “ Did I get what I paid for ?”. Hotels need to make sure these expectations are met and if they are not it may lead to bad ratings and negative comments from the customers. Customer volume is important because if you do not have high occupancy than you are not making money and can not pay bills, employees, and stakeholders. Ratings are beneficial as well because many people will look at websites such as Yelp or TripAdvisor before booking a room. If you ratings on those websites are low it may affect your customer volume. Theses performance objectives are all tied together. If you keep customers happy and the hotel in excellent condition this will led to higher customer volume and excellent ratings which will result in high …show more content…
Broad strategies that companies have used in the past to achieve these performance objectives is by marketing, expansion, training employees properly, and keeping brand promises to the customers. An example, Hyatt expanded their properties overseas and the company grew rapidly in the United States and abroad in the 1970s. Marriott, Hilton, and Hyatt earlier in their career chose to go international which lead to more locations and being well known not only in the States but across the world. These companies have used marketing to draw new customers in through advertisement, loyalty programs, and word of

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