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Analysis of Strengths and Weaknesses

Describe about the Sustainable Development Plan for Leisure of Business.

Hilton Sydney is a 5-star hotel located in the heart of the city which is near to Hyde Park, the State theatre and Sydney Opera House. The hotel has exceptional facilities for leisure or business. The hotel has magnificent views and convenient access to the major attractions of the city such as Sydney Harbour Bridge, Darling Harbour and Bondi Beach. The hotel offers a wide range of hotel accommodation such as deluxe rooms or spacious suites. The facility has 28 conference or meeting rooms, full gym facilities and 25m swimming pool. The hotel has a partnership with LivingWell Premier Health Club. The hotel has an exclusive bar which is backed by the famous celebrity chef Luke Mangan. The hotel also has a rooftop terrace lounge with live music facilities.

Hilton Sydney is one of the largest places for convention with 4,000sqm flexible floor space which can accommodate over 3,000 people across four floors. In total, there are 579 rooms and suites. The sculpture is sun-filled displaying a majestic sculpture by Bronwyn Oliver. The rooms offered at the hotel are innovative and modern with Aquavision bathroom TV. Different areas are provided for work, rest or lounging. There are multiple dining venues that satisfied the needs of all the visitors. The hotel offers daily breakfast and internet access at various packages to enhance the stay of guests.

Sydney Hilton also provides business convenience through express mail modem, photo copying service, video conferencing services, secretarial service, office rental and meeting rooms (Kokalitcheva 2015). The hotel also looks after the family’s comfort and convenience through children’s video rental, menu, high chairs, cribs, babysitting service and family package offering. For personal comfort and convenience, services and amenities such as ATM, concierge, elevators, lounge, multi-lingual staff, tour desk, safety deposit box, electric service, beauty salon, bar, spa, foreign currency exchange and baggage storage is provided. For fitness and recreation, fitness rooms, pool and bicycling services (Amay 2015).

Evidently, with the wide range of product and service facilities, a large number of staff force is required to manage the hotel efficiently. This report analyses the target issues and recommendations that can help the hotel grow sustainably (del Mar Alonso?Almeida et al., 2013).

This section presents an analysis of the strengths and weaknesses faced by the hotel.

Well recognized brand image: Hilton hotel is under the brand name of the Hilton Hotel Corporation (HHC). This corporation is highly recognized for its luxurious hospitality and excellent service. Not only is the brand image, but Hotel Hilton also Australia’s largest center for the conventions and meeting (Morris & Kazi 2014).

Diversification of the service: Hotel Hilton in Sydney has segmented their business for both the high end and mid-end class. Thus, the service is available in the different section of the community. They have divided their service criteria as per the market segmentation; that means they are focused on the customer preferences.

Efficient management system: Hilton Hotel has always maintained a good profile on the management issues like the employee retention, business practices and the ethical consideration while handling the effective relationship with the employees.

Frequent improvement of the business process:  Hotel Hilton maintains an integrated approach to avail the maximum technological supports as well as it modifies it business strategies with the changing scenario of the market. As mentioned by, Sloan, Legrand and Chen (2013), if an organization continuously upgrades the strategies to cope with the market demand, it becomes easier for that organization to retain the reputation.

Positive feedback from the customer: Satisfaction from the customers is highly effective to obtain the brand image (Chong & Ricaurte, 2015). Hotel Hilton in Sydney is one of the preferred accommodations among the clients. The positive response and customer satisfaction are important factors that have made this organization successful.

Lack of sustainable approach: It has become a major issue for the Hotel Hilton. There are lots of concerns regarding the maintenance of sustainable approach. Water sustainability, reducing the greenhouse gas emission, waste management is some issues that are required to be monitored by the authority of the hotel. When the Australian tourism industry is focusing on the sustainability of the environment, this hotel has lagged behind to meet those provisions to possess the environmental sustainability. Moreover, using of harsh chemicals and other hazardous substances is another negative point about this hotel. Wastage of the water is critical in the hospitality industry (Azad, Ancev & Hernández-Sancho, 2015). Hotel Hilton has not taken any initiatives to reduce the problems regarding such concerns. Moreover, waste management is another concern; because there is no such aspect that can manage the waste products of this hotel. The Hotel has not taken any initiative to recycle the waste products also. The hotel followed traditionally and backdated process of waste management, laundry and dishwashing services. Whereas, hospitality industry across the world has started acknowledging the factors related to the sustainability using modern techniques to management waste, alternative ways to handle water management and power consumption (Berezan, Millar, & Raab, 2014). Moreover, use of the less technologically advanced equipment facilitates more power consumption (Abdi, Creighton & Nahavandi, 2013). Hence, lack of sustainable approach has become a major issue for the Hotel Hilton. People have become aware of environmental issues; as Hilton hotel is not considering the issues the reputation has getting affected.

Not so comfortable ambience: Clients have complained over the ambience and environment of the hotel Hilton. There are several objections regarding the noise management of the hotel. Customers who have stayed here have faced over the noisy environment. Not only the environment issue but also customers have complained about the service of the staffs. Clients have complained about the mismanagement of the company and approach of the staffs. Some of the customers have also reported that the pricing of the hotel room is extravagant in too some extent comparing to the service. If the customers are not happy with the service it will leave an impact on the reputation and recognition of the organization (Berezan, Millar, & Raab, 2014). 

Less effective relation with the shareholders: An organization can only become successful when it holds an effective relationship with the shareholders and the partners of the organization (Lockyer, 2013).  It has been reported that the internal shareholders are facing issues with the governing body of the Hilton hotel. They are not satisfied with the working procedures the management follows. Moreover, as   Hotel Hilton is a part of the international venture, members from the different countries are involved. In this context, the clash of opinions makes the organizational structure vulnerable.

Lack of modification: Reports have also revealed that customers have issues with the lack of variety regarding the service. Changing situations always demand a revision of the strategies (Melissen, 2013). Hotel Hilton has not taken any serious steps to modify their services and the business strategies. The service can be reached to the maximum of the customers if the Hotel Hilton revises the services and take necessary steps to modify the services. People always get attracted to the unique and attracting services; that is why if the hotel Hilton promotes new packages and modified services it would be more attracted to the consumers.

Not successful in capturing the extended market: Hotel Hilton is potential of grabbing the emerging market. However, it has not look forward to capturing the emerging market. The company has no such vision to grab the international market.

Not focused on target customers from booming countries: Australia has always remained in the favorite list of the travelers from countries like China and India. However, Hotel Hilton has not focused on their service range keeping this fact in mind; as a result, it has failed to grow interested in the clients from those countries. In this regard, it can be said that the company has not taken sufficient approach to analyzing the social factors seriously.

Incapable of competing with strong rival companies:   As the hospitality industry in Australia is emerging many international companies have set their ventures in the country as well as in Sydney. This situation is giving Hotel Hilton fierce competition.

Stagnant growth: This is a major concern for the Hotel Hilton; as mentioned by, Benckendorff & Lund-Durlacher (2013), if the company fails to generate more revenues it will seize the business growth of the organization. As the Hilton hotel has not adopted any innovative and attractive approach for the market expansion, it has become restricted to the domestic and regional market.

Easily get impacted by the economic and political instability: It is common in most of the countries that are why the hospitality industry is suffering from huge loss across the world (Lockyer, 2013). Sydney is no different; turbulence in the financial and political sector is highly influential for the hospitality industry. Hotel Hilton has also become affected by the economic constraints of the Australia. The fragile foundation has made it vulnerable to the unstable political, social and economic situation.

The importance of sustainability in the hospitality sector involves environmental, social and economic impact. Sustainability is one of the most critical issues that is being faced by Hilton Sydney. As analysed in the previous section, Hilton Sydney has a dramatic impact on the environmental levels as there is high consumption of water and energy consumption. The hotel consumes a large amount of electricity, fuel, operations and other power needs. Water is used in enormous quantities’ for food and beverages, laundry, cleaning and maintenance, irrigation of parks and others. Additionally, the generation of waste through disposal of paper, bulbs and batteries, equipment, furniture, appliances and more adds to environmental damage (Yadav & Dabhade, 2013).

Further, there are economic issues faced by Hilton Sydney. High operating costs are one of the crucial issues being faced by the hotel. The operating costs of the hotel are too high which make the hotel expensive and over-priced for the value provided to the customers. Due to high energy and insurance cost, the operating cost may potentially erode the income. Hilton Sydney has experienced labour shortages and high labour costs that make it difficult for attracting employees to the hotel (Berezan et al., 2013).

On the social front, there has been a shift in brand image as there are other hotels taking initiatives for enhancing their corporate image. The guest image and perception is not too positive due to less involvement in community, education and culture. There is a risk of culture clashes as the hotel has various visitors from across the world and the staffs may fail to understand their cultures or needs. In an unfamiliar environment, the guests may not be comfortable if the staffs are not welcoming in nature (Wang, 2014).

This section presents the workable solutions based on the weaknesses identified in the previous section. Hilton Sydney recognizes the importance of environmental responsibility and improving performance towards a sustainable future.

Cost Savings- Cost is a significant driving factor and Hilton Sydney must reduce operating costs providing a compelling incentive for the hoteliers. Hilton Sydney must employ a number of strategies to reduce, reuse and recycle waste. Financial savings shall help the hotel operate in an intensely competitive market. The inventory levels must be kept low so that there is less wastage or spoilage and the staffs do a better job. Switching to LED lighting may also lead to energy-efficient supply. The right housekeepers must be hired so that the processes are not repeated or do not get wasted. The government incentive programs and green programs must be introduced for saving cost (Liu, Xie, & Zhao, 2014).

Fiscal and Economic Incentives- Hilton Sydney must utilize the government programs and grants. For encouraging the development of environmental retrofits, the green buildings must be constructed so that economic and fiscal incentives must be enacted. The benefits such as insurance premium discounts, development soft costs and expedited regulatory permitting must be utilized by Hilton Sydney. A list of more incentives shall help in encouraging the construction and design of green buildings across the globe. Tax credits, low interest loans, permissions for additional density, waiver of development fees and public investment in new or improved infrastructure can be undertaken. The funding and grant programmes must be verified that would assist the restaurant industry (Prud’homme & Raymond, 2013).

Regulatory affairs- The four main categories where regulatory compliance may be regulated is waste, energy use, waste and greenhouse gas emissions. The current environmental regulations are targeted towards the hotel sector focusing on environmental health and safety and hazardous material handling. However, a wide range of future legislative practices shall impact the hotel construction, design and operations. These legislatives may be medium or long-term in nature specifically focusing on energy saving and controlling emissions. The Life Cycle Assessment concept has received acceptance which can be used as a basis for regulatory mechanisms. The different stages of environmental impacts beginning from the raw material to disposal shall be assessed. Hilton Sydney needs to monitor legislation both at the local as well as national levels for properly planning operational practices and related capital expenditures which may be useful in the future (Oliver, Naar, & Harris, 2015).

Stabilized utility prices and availability- Hilton Sydney may think beyond regulatory regimes and cost savings. Alternatively, they may deploy efficient equipment and forms of utility generation for hedging against future price increases in utility costs. The approach is especially important in geographic locations with developing or unreliable infrastructure, to prevent a compromised guest experience in the form of power cuts or sub-standard water quality. Energy poverty is a growing problem in Sydney as the energy bills are greater than the disposable income of the people. The increasing price of electricity causes hardship for the consumers which eventually lead to less demand of hotels (Hsieh, 2012).

Enhancing brand image- Many hotel brands have incorporated sustainability into their fashion brand definition. Hilton Sydney can demonstrate sustainability in marketing materials and annual publications. Hilton Sydney can enhance itself by repositioning to cater an environmental-friendly, socially-conscious and younger generation. The environmental certification programs can impact facility selection which has been less successful with the hotel executives. Green conventions and meetings must be conducted to enhance corporate image of Hilton Sydney as the guests choose their lodging or accommodation based on price, amenities, location, and price and brand reputation. Having sustainable business practices will lead to an enhanced reputation and brand image, which translates to great hotel profits in the long term (Berezan, Millar, & Raab, 2014).

Improving guest experience- Hilton Sydney must increasingly understand the needs of its customers so that they can invest in technology or solutions that would positively impact guest experience. Guest experience directly affects the occupancy and average daily revenue. The introduction or generation of HVAC systems, maintenance regime and energy management devices can help in significant improvements for enhancing indoor air quality and thermal comfort for the guests and employees. The indoor environment and ambience can also be improved so that there is minimum noise from fans, compressors and boilers which otherwise spoil the guest experience (Barber & Deale, 2013).

Creating positive corporate culture- Employees are identified as one of the greatest benefits of going green. Employees, like hotel guests, are increasingly sophisticated and "tuned" into current thinking in society and are far more likely to identify with an employer whose principles and practices are aligned with their values. Hilton Sydney must adopt a corporate sustainable culture so that it can attract and retain talent. The staffs at the hotel must be managed and they must be engaged through educational opportunities, newsletters, site visits and environmental programs (Alonso-Almeida et al., 2016).

Managing waste- Hilton Sydney can consider putting a video camera in the dumpster area so that the employees fear stealing steaks, bottles of liquor, cash or other expensive items. The employees must not be allowed to take the trash to the dumpster without the approval of manager. The staffs must manage the waste by segregation. The kitchen and bar area waste, guest accommodation waste, clear plastic bags and recyclables must be segregated. Letters can be sent to the hoteliers so that they produce less wastage. The staffs can refill the shampoo or shower gel containers so that junk can be reduced (Melissen, Cavagnaro, & Du weke, 2015).

Conclusion

Conclusively, Sydney Hilton needs to work on its economic, social and environmental aspects to enhance sustainability. Hotel Hilton in Sydney has segmented their business for both the high end and mid-end class. Hotel Hilton maintains an integrated approach to avail the maximum technological supports as well as it modifies it business strategies with the changing scenario of the market. Wastage of the water is critical in the hospitality industry. Moreover, usage of harsh chemicals and other hazardous substances is another negative point about this hotel. Hence, lack of sustainable approach has become a major issue for the Hotel Hilton. Clients have complained about the mismanagement of the company and approach of the staffs. If the customers are not happy with the service it will leave an impact on the reputation and recognition of the organization.

It has been reported that the internal shareholders are facing issues with the governing body of the Hilton hotel. The company has no such vision to grab the international market. In this regard, it can be said that the company has not taken sufficient approach to analyzing the social factors seriously. As the Hilton hotel has not adopted any innovative and attractive approach for the market expansion, it has become restricted to the domestic and regional market. Hotel Hilton has also become affected by the economic constraints of the Australia.

Hilton Sydney has a dramatic impact on the environmental levels as there is high consumption of water and energy consumption. The operating costs of the hotel are too high which make the hotel expensive and over-priced for the value provided to the customers. There is a risk of culture clashes as the hotel has various visitors from across the world and the staffs may fail to understand their cultures or needs. Hilton Sydney must employ a number of strategies to reduce, reuse and recycle waste. Tax credits, low interest loans, permissions for additional density, waiver of development fees and public investment in new or improved infrastructure can be undertaken. Hilton Sydney needs to monitor legislation both at the local as well as national levels for properly planning operational practices and related capital expenditures which may be useful in the future.

Based on the above analysis, creating a green hotel seems to be the best strategy for Hilton Sydney. For running a hotel, the business must be made most sustainable as the best choice. The Natural Step organization demonstrates sustainable practices that can help protecting the local environment while improving business outcomes. Based on the recent trends, it is interpreted that the customers are more attracted towards eco-friendly hotel practices. The old beds and mattresses at Hilton Sydney must be recycled which can help in cutting own costs and creating a competitive advantage while saving the environment. It has been studied that it takes over twenty years for decomposing a mattress. Therefore, it would be better if Hilton Sydney recycles beds and mattresses rather than sending it to landfills (Jones, Hillier, & Comfort, 2016).

A linen reuse program must be introduced in all the rooms at Hilton Sydney. This is a significant strategy for saving water, time and cost where the customers can hang up their towel rather than tossing it for changing. The hotel must print these signs and make it available in the guest rooms so that the customers are given an opportunity to follow sustainable practices. Water usage must be reduced in every guest room. Low-flow shower heads and sink aerators must be installed. Low-flow toilets and diverters can be installed for reducing water usage (Chen & Tung, 2014).

Hilton Sydney must reduce energy usage so that the fuel bills can be reduced. The hotel must switch to LED lighting so that the electricity usage can be reduced. It has been studied that LED’s have the lowest carbon footprint in comparison with other electrical for lighting. Moreover, they last longer than the usual electrical appliances and can be used adequately in lobbies, guestrooms and hallways (Molina-Azorín et al., 2015). The staffs must be educated to turn off the lights, air conditioning and heating when the rooms are not occupied. The drapes must be closed during summers. Daylight must be used exclusively in the lobbies or bars so that energy consumption can be reduced. Energy star appliances must be purchased so that maximum energy can be saved as well as monitored. The old washing machines must be replaced with water and energy efficient models. A solar heating system must be installed in the hot tub or pool and it must be covered when the area is closed (Su, Hall, & Ozanne, 2013).

Consultations must be made with outside sources for evaluating the overall mechanical equipments and systems. Any damage must be repaired which includes coil cleaning, filter changes and thermostat calibration so that the maintenance plan is not interrupted. The guest amenities and food items must be purchased in bulk so that transportation and repeat purchases can be avoided. The hotel waste including kitchen, dining room and guest room must be recycled. Recycling baskets must be provided for newspaper, aluminium, glass, plastic and white paper. Recycling bins must be provided in kitchen, poolside, back office and every place so that recycling and waste management becomes simpler (Tews, Michel, & Stafford, 2013). The amenity products purchased by Hilton Sydney may be derived from recycled products. The recycled paper products can also be used and prints can be made using soy-based inks. The paper size of invoices must be reduced so that the paper usage is minimized. The purchases made must be organic, fat-free and must be away from animal-cruelty products for hair, bedding, coffee, chocolate and tea. The cleaning processes must be green, non-toxic and safe in nature. An incentive program may b create for encouraging the staff base to follow environmental friendly practices (Pozo, Moretti, & Tachizawa, 2016).

References

Abdi, H., Creighton, D., & Nahavandi, S. (2013). A sustainable energy saving method for hotels by green hotel deals. In Sustainability in Energy and Buildings (pp. 669-677). Springer Berlin Heidelberg.

Alonso-Almeida, M., Fernández Robin, C., Celemín Pedroche, M., & Astorga, P. (2016). Revisiting green practices in the hotel industry: A comparison between mature and emerging destinations. Journal Of Cleaner Production, 140, 1415-1428. https://dx.doi.org/10.1016/j.jclepro.2016.10.010

Amay, K. (2015). What really makes a five-star hotel?. Mail Online. Retrieved 3 December 2016, from https://www.dailymail.co.uk/travel/travel_news/article-3007667/What-REALLY-makes-hotel-five-star-hotel.html

Azad, M. A., Ancev, T., & Hernández-Sancho, F. (2015). Efficient water uses for the sustainable irrigation industry. Water Resources Management, 29(5), 1683-1696.

Barber, N. & Deale, C. (2013). Tapping Mindfulness to Shape Hotel Guests' Sustainable Behavior. Cornell Hospitality Quarterly, 55(1), 100-114. https://dx.doi.org/10.1177/1938965513496315

Benckendorff, P., & Lund-Durlacher, D. (Eds.). (2013). International cases in sustainable travel & tourism (1st ed.). New York: Goodfellow Publishers.

Berezan, O., Millar, M., & Raab, C. (2014). Sustainable Hotel Practices and Guest Satisfaction Levels. International Journal Of Hospitality & Tourism Administration, 15(1), 1-18. https://dx.doi.org/10.1080/15256480.2014.872884

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Hsieh, Y. (2012). Hotel companies' environmental policies and practices: a content analysis of their web pages. International Journal Of Contemporary Hospitality Management, 24(1), 97-121. https://dx.doi.org/10.1108/095961112

Jones, P., Hillier, D., & Comfort, D. (2016). Sustainability in the hospitality industry. International Journal Of Contemporary Hospitality Management, 28(1), 36-67. https://dx.doi.org/10.1108/ijchm-11-2014-0572

Kokalitcheva, K. (2015). Staying at a Hilton hotel? Uber will help you find the top restaurants and bars nearby. Fortune. Retrieved 3 December 2016, from https://fortune.com/2015/09/01/uber-hilton-rides-guides/

Liu, J., Xie, L., & Zhao, X. (2014). Ethical and sustainable practices in the hospitality and tourism industry in China. International Journal Of Contemporary Hospitality Management, 26(6). https://dx.doi.org/10.1108/ijchm-06-2014-0271

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