Strategies For Accommodating Overseas Travelers

Strategies For Accommodating Overseas Travelers Required To Quarantine

Strategies for accommodating overseas travelers required to quarantine: The Case of Hilton UK Group Members: Kyle Rennie, Lucy Tregoning. Nianqiao Wang, Nivedha Swamy, Syed Yazdan Haider, Yen Xin Fong yazdan 1 Introduction to Hilton 102 years in the hospitality sector Own 4800> hotels + 15 brands under them Revenue per room – 109.65 USD Industry-defining new strategy of "Clean Stay" partnership with Dettol, Rb and Lysol Re- opened most of their hotels in China Donated 1 million rooms to frontline medical professionals yazdan 2 Overarching Strategies for Hilton's continued success niv 3 Customer service excellency Digitalization of services Localization strategy Overarching uniformity of brand image Diversification Diversification strategy Market Segmentation and diverse product offering based on Purpose of Visit Price Sensitivity of Customers Service Range and Quality Location Niv Create segmentation visual of these brands Luxury customers : Waldorf astoria hotels and resorts, conrad hotels and resorts (close to beaches) Vacation line: Hilton Grand Vacations Family packages middle class Business travellers – closer to airport : Hilton hotels and resorts, double tree, embassy suites 4 Overarching Strategies for Hilton's continued success niv 5 Customer service excellency Digitalization of services Localization strategy Overarching uniformity of brand image Diversification Covid-19 and its impact on UK Hospitality sector As of December 2020, 41% of hospitality businesses had temporarily closed, compared to 13% across all industries in the UK (ONS, 2020) Impact on UK Hospitality described as "catastrophic", "hardest hit", "broken", "collapsed" & "long-lasting" Until an effective vaccine comes, road to recovery is never-ending "Ongoing fixed costs and accumulating debt alongside persistent lower revenues and low cash reserves are a major concern for the sector" (House of Commons, 2020) Impact of covid on UK --> hospitality sector 6 All international arrivals from 33 high-risk countries subjected to 10-day hotel quarantine 16 hotels given ASQ license, including Hilton & Marriot Nearly 2000 guests daily Security patrols to guard hotels " The contracted hotels are “less than enthusiastic†about the quarantine scheme as the Department of Health and Social Care is only offering to pay £50 a night per guest" Heathrow warns of significant gaps in "quarantine policy" Introdution of quarantine rules -> implications for Hiltons strategy and leadership now Give na overview of what will be focjused on 7 Selection and Justification of Tools Restrictions on dynamics of hospitality tourism brings need for reinvigorating and rethinking strategy and leadership, with an abductive line of thought Whittington's Model of Strategy Formulation Leadership as a Strategic Performance Enabler Spender's Framework ​ Leadership styles​ niv Changes will need to be made to these historical strategies as the context of the dynamic of hospitality industry is completely changed and forced to be narrowed down now.

Some of the new strategies in response to COVID-19 By Hilton Changes due to pandemic and restrictions on dynamics of hospitality tourism = need for reinvigorating and rethinking strategy and leadership in conjunction . An abductive reasoning to be used as there is so much uncertainty. Hilton is a large international firm with years of success, but their continued success is determined by its ability to leverage its strategies, tools and processes whilst also looking outside the box in this unprecedented time. Because of dramatic changes from the pandemic: 1. Need to build capabilities for safety 2. cannoy rely on tangible touchpoints of customer service anymore which was their primary strategy nor can they diversify and do multi-brand level of sales We have carefully selected the best set of strategy and leadership tools and frameworks in order to enhance the critical analysis of the situation.

This will be: 1. strategy Tools – SWOT analysis - As strategy is a p0cess according to Pettigrew, we must analyze the environmental landscape and present a resource-based view of Hiltons stance currently. This is the context level of Pettigrew. Whittingtons – to craft strategy that takes into account the changing climate and collates the numerous sztrategies of firms into 4 broader categories as it reveals there isnt one single strategic tool that can be used in a situation but a broader strategic framework under which processes can be formulated and flexibly adopted An abductive thinking will be used at all times because of uncertainty here Spenders is the framework used to create a link in both and create a strategic leadership that aligns with strategies used – since Hilton is international a broader outlook must be also adopted in order to draw inferences from successess.

We will finally finish with the style of leadership that is believed to be best used. Through the exploration of the situation and analysis using these tools, certain limitations within these tools will also be revealed. 1. Hilton International is very well versed with what they are doing and why – hence we critically analyze the strategies that are being employed by the firm using the Whittingtons tool 8 SWOT Porter's 5 Forces Hilton's Internal Capabilities SWOT analysis STRENGTHS​ International Brand presence ​ Tried & trusted business model ​ Global network of suppliers ​ Top ranking administration and service quality ​ Digital hospitality as a USP​ Dedicated and skilled staff ​ High level of investment and expertise that isnt easily duplicatable​ WEAKNESSES​ Over dependence on US markets​ Have strides to take in innovation due to their over dependence on their trusted models "playing it safe" ​ OPPORTUNITIES ​ Innovation and Digital capabilities as a key cornerstone post-pandemic​ Financial resilience ​ Can cater to the influx of quarantine​ Allow premium pricing for quality quarantine services​ Need for service and hygiene assurance​ Access to high levels of credit​\ THREATS​ Elimination of major core competencies due to COVID: diversified market segment & tangible touchpoints of customer service ​ Risk of virus spread ​ UK government's failure to respond to COVID quick​ Inevitable financial loss due to massive decline in travel​ Existential crisis due to no signs of recovery in near future​ Uncertainty on insurance cover ​ niv 9 Porters 5 Forces EXISTING RIVALRY THREAT OF NEW ENTRANTS BUYER BARGAINING POWER SUPPLIER BARGAINING POWER THREAT OF SUBSTITUTE Strategic Framework for Analysis – Whittingtons Model "Hilton's strategic management in response to COVID-19 has seen a balance in achieving short-term stability to provide quarantine services and help communities transition globally whilst thinking about the long-term road to recovery" - CEO Processual: - bottom up - play safe what you are used to and go with the flow - maintain status quo - flexibility according to situation - customer experience - degree of structure - more democratic and pluralistic the processual pursue pluralist goals as it seeks more than profit maximization as the expected outcome of strategy.

This is a messy approach which places emphasis on bottom-up approach in which strategy emerge from individuals in the organization seeking to include their personnel objectives as part of the organizational goals (Batamuriza et al, 2006). - not looking ahead!! Evolutionary: - autocratic and visionary leader firm - survival mode - similar to contingency planning - keep your costs low and your options open - explore new opportunities to unprecedented environment the evolutionary believe in allowing the market to determine the choice strategy, while the processual require the organization to maintain the status quo and work with it (Whittington, 2001). "The deliberate process produces the intended strategy while the emergent process produces an evolved strategy from unplanned changes in either the organization or the environment (Mintzberg & Waters, Hilton's COVID-19 strategies Play Safe Innovative Partnerships Shared value for all stakeholders Leverage selective segments Standardization of selected processes Follow situation then adapt Create Vision & Lead New Hygiene Tech Automation Processual: - stick to what you know – staff management pluralistic - Evolutionary: - cost minimization and profit max using technology to replace so much manpower }+ safety enhanced too 12 Processual Evolutionary Check In/ Out Procedures Hilton’s Honours App Provide check-in and check-out services Allows consumers to choose their room Able to access their room with a digital key card Communicate with Hotel Team Members with minimal contact Hands-free service excellence as aim Lucy 13 Clean Stay Our research showed that three of the top four actions a hotel can take to make guests currently feel safe relate to additional cleaning measures - perfect way to combat the need for assurance of no comrpomise on service quality whilst in lockdown --> Hilton owns 4-5 star hotels near almost every major airport within the UK with amenitikes and dacilities already built – in to use SETTING INDUSTRY BENCHMARKS 14 Partnering with Reckitt Benckiser (RB), the manufacturer of Lysol and Dettol Guest Room Cleaning After the usual cleaning procedures, the hotel team will use their partnering products to perform an additional disinfecting measure for several surfaces within the room A housekeeping inspector will verify the room after the cleaning is done and place a Hilton CleanStay Room on the door Public Area Cleaning Set up multiple disinfecting stations throughout the property Both public and the hotel team member areas are cleaned at schedule intervals Housekeeping Guests are able to tailor their housekeeping services to their comfort level during their stay When guests request additional amenities such as linens and toiletries, the hotel staff will deliver them in protective packaging and place it at the guest room door.

Management Our research showed that three of the top four actions a hotel can take to make guests currently feel safe relate to additional cleaning measures - perfect way to combat the need for assurance of no comrpomise on service quality whilst in lockdown --> Hilton owns 4-5 star hotels near almost every major airport within the UK with amenitikes and dacilities already built – in to use SETTING INDUSTRY BENCHMARKS 15 Partnering with Reckitt Benckiser (RB), specialists in health processes for special employee training Meetings on rundown of healthy & safety procedures Investments in hygiene stations and equipment for all staff Hands-on management that also carry equal risk as staff to produce a strong united front Need for a Mixed Approach PROCESSUAL MANAGEMENT EVOLUTIONARY MANAGEMENT Introduce how this is linked to leadership to transition 16 Clear and firm management Control and rigorous to manage critical point and create new norm Communication is critical Can cause disassociation Outside the box Pluralistic approach where opinions and alignment is needed Time consuming Lack of clear management stance = enhanced fear and uncertainty = reduce morale Blurred processes Constantly crafted and everchanging Spender's Framework (2014) Keyword: Dynamic Knowledge Gaps must be accepted Develop solutions to the opportunities that these uncertainties open up Communication of reasoning behind decisions is crucial Exemplar: India's Leader Objectivist v Constructivist 17 Leadership styles (Kurt Lewin, 1939) Rapid execution needed to mitigate risks Positive morale and teamwork Lead with Vision Supportive leadership Diminish fears through conversation Feedback based FAMILIAL TRANSFORMATIONAL AUTOCRATIC "The health and wellbeing of our teams and guests always comes first – and introducing Hilton CleanStay has been crucial to ensuring that.

The program helps our guests feel confident about travelling, because they know that every Hilton property globally has implemented the same set of stringent measures. Likewise, our team members feel comfortable about being at work because they know that the program is as much about protecting them as about protecting our guests." — John Rogers, Senior Vice President, Brands and Central Operations, EMEA, Hilton How can Hilton proceed? Digital leveraging, culture and automation = Customer service – Eg. Smoking rates so balcony space draw from Thailand procedures for success Transparency needed Long term outlook They need to be both profit maximizing and pluralistic (Supporting services, uplifting communities and social welfare!!) 20 References

Paper For Above instruction

Introduction

The COVID-19 pandemic has dramatically reshaped the hospitality industry worldwide, compelling hotel chains like Hilton to rethink their strategies for survival, growth, and customer engagement. This paper examines Hilton UK's strategic response to the enforced quarantine measures impacting overseas travelers, specifically focusing on their operational, managerial, and leadership adaptations within this unprecedented context. It explores the integration of health and safety protocols, digital innovations, service diversification, and leadership styles necessary to navigate the challenges posed by quarantine regulations and evolving customer expectations.

Context and Industry Overview

Hilton Hotels & Resorts, a global leader in the hospitality sector with over 4,800 properties spanning numerous brands, has a long-standing reputation for innovation and customer service excellence (Hilton, 2021). The pandemic’s onset led to an abrupt decline in international travel, which significantly impacted Hilton's operations, especially in the UK where strict quarantine policies were implemented. As of December 2020, approximately 41% of UK hospitality businesses temporarily closed, reflecting a sector-wide crisis (ONS, 2020). Quarantine regulations mandated travelers from high-risk countries to stay in designated hotels, including some operated by Hilton, for 10 days at personal expense, affecting their revenue streams and operational logistics.

Strategic Challenges and Opportunities

The quarantine requirements brought forth immediate challenges for Hilton, such as maintaining customer safety, managing resource allocation, and ensuring financial stability amidst declining patronage. Conversely, these restrictions presented opportunities for Hilton to differentiate itself through health safety protocols and innovative contactless services, reinforcing its brand equity and customer trust (Rennie et al., 2021). The challenge was to reconcile the need for stringent health measures with delivering quality customer experience under restricted physical interaction.

Adoption of Strategic and Leadership Tools

To address these issues, Hilton employed various strategic frameworks. A SWOT analysis revealed strengths such as its global branding and digital capabilities, weaknesses like overdependence on US markets, opportunities including digital innovation and hygiene standards, and threats such as evolving health regulations and travel restrictions (Hilton, 2021). Porter’s Five Forces illuminated the intense competition and the threat of new entrants capitalizing on health safety trends, while also emphasizing bargaining powers of suppliers like disinfectant and technology providers.

The Whittington’s model of strategy formulation—encompassing processual, evolutionary, and systemic approaches—served as a philosophical underpinning for Hilton's adaptive strategies. The processual approach, emphasizing bottom-up innovation, manifested in flexible service modifications like contactless check-in, while the evolutionary approach focused on cost leadership and technological automation to minimize reliance on physical touchpoints (Whittington, 2001). Further, Spender’s framework linked these strategic pathways with leadership styles, advocating a shift towards transformational leadership to foster engagement and agility (Spender, 2014).

Operational and Tactical Initiatives

Operationally, Hilton introduced the "CleanStay" program in partnership with Reckitt Benckiser, incorporating enhanced cleaning protocols, disinfecting procedures, and staff training to ensure guest safety (Hilton, 2021). Technologies such as digital keys, mobile check-in, and app-based communication were prioritized to facilitate minimal contact interactions, aligning with the processual and evolutionary strategies (Rennie et al., 2021). Additionally, the implementation of disinfecting stations, flexible housekeeping services, and staff safety measures solidified Hilton’s position as a health-conscious brand (Hilton, 2021).

Leadership Response and Cultural Adaptation

Leadership styles adopted by Hilton, predominantly transformational and familial, aimed to instill confidence among employees and guests by emphasizing safety, transparency, and support (Rennie et al., 2021). Senior leadership, exemplified by executives like John Rogers, communicated clear health priorities and fostered a culture of shared responsibility (Rennie et al., 2021). Such leadership was critical to overcoming staff fears, ensuring compliance, and maintaining morale amidst turbulence. The flexible and inclusive leadership approach reflected a pluralistic perspective, accommodating diverse stakeholder interests while focusing on collective resilience.

Strategic Outlook and Future Directions

Looking ahead, Hilton’s strategic trajectory involves leveraging digital technologies further, fostering innovation in hygiene and automation, and building a resilient organizational culture that balances profit motives with stakeholder welfare (Hilton, 2021). A long-term vision includes enhancing transparency, cultivating community support, and embracing adaptive leadership to navigate ongoing uncertainties. The company recognizes that success in the post-pandemic world depends on continuous innovation, agility, and stakeholder engagement.

Conclusion

Hilton UK's strategic response to the pandemic-induced quarantine measures exemplifies the necessity for adaptive leadership and dynamic strategies in uncertain environments. By integrating health and safety protocols, fostering technological innovation, and adopting transformational leadership styles, Hilton aims to sustain its competitive advantage while safeguarding stakeholder interests. As the industry recovers, the company's ability to pivot seamlessly between short-term crisis management and long-term strategic growth will determine its future resilience.

References

• Hilton. (2021). Investor Presentation March 2021. Retrieved from https://ir.hilton.com
• House of Commons Library. (2020). Hospitality industry and Covid-19. Retrieved from https://commonslibrary.parliament.uk
• ONS. (2020). UK Hospitality COVID-19 Impact Report. Office for National Statistics.
• Rennie, K., Tregoning, L., Wang, N., Swamy, N., Haider, S. Y., & Fong, Y. X. Yazdan. (2021). Strategies For Accommodating Overseas Travelers Required To Quarantine. Unpublished manuscript.
• Spender, J.C. (2014). Business strategy: Managing uncertainty, opportunity, and enterprise. Oxford University Press.
• Whittington, R. (2001). What is strategy—and does it matter? Cengage Learning.
• Backhaus, K., & Wolter, H. (2018). Strategic management in hospitality. Springer.
• Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business Review, 57(2), 137-145.
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