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Since, the inception of the internet, E-commerce has played an ever
important role in the marketing of the major as well as minor
companies. Large companies have really been effected by the
introduction of the term ‘market space’, which offers an online
environment for the companies to compete for the dominance. Hotel and
tourism industry is no exception when it comes to developing new
strategies for marketing and commerce. E-commerce had such an impact
on the travel industry that a survey carried out by Yesawich,
Pepperdine & Brown/Yankelovich Partners in April 2002 revealed that
66% of American users believe that e-tourism web sites provide better
services than travel agents. ( i )
Today, hotels are distributing their product through more and more
channels. How they keep control of availability and price, maintain a
consistent level of customer service, plus keep their distribution
partners up to date at the same time has becomes a complicated and
expensive process. Major companies have gone to a distance to develop
new strategies for competing in the online environment. These
strategies differ widely from selling rooms online, providing
customers with better online customer services, keeping track of the
individual customer likings to developing the best customer loyalty
reward programs. For major hotel chains, E-commerce doesn’t only mean
marketing products from an online portal but developing a strong
relationship with the other travel partners in order to ensure the
wider range of facilities for the varied traveler profile. It also
means supplying a travel product to tour operators and the need to
know which operator has the strategy and distribution power to sell
their product online.
In this paper compares and contrasts the e-commerce strategies of the
two famous hotel chains that cater to the same genre of clients. These
chains are the Sheraton and the Hilton Hotels. Hilton has 227
properties in convenient location that is well known to serve the
individual travelers and providing upscale conference facilities. The
hotel chain has been one of the most dependable in the hotel industry
with a great reward system and weekend internet specials. On the other
hand, Sheraton is known to provide a business friendly environment on
its 192 properties and is famous for its frequent guest programs that
helps immeasurably with checkouts and upgrades. ( ii ).
A brief outline of the key factors for success of these hotel chains
in the e-commerce market is provided below with the features that add
value to its customers. The discussion will help in comparing their
respective e-business and websites.
Hilton
Due to these unequivocal e-commerce results and its e-strategies,
Hilton Hotels Corporation received accolade of being named ``2001
E-Business of the Year'' by Internet Week magazine.
Hilton is one of the first companies in the hospitality industries
that is providing its suppliers with a complete online solution for
the annual purchases of goods and services from thousands of its
suppliers. Hilton has teamed up with PurchasePro.com in unveiling its
Business to Business solution for nearly 21000 of its partners. The
new online system will provide more negotiating powers to the
suppliers where they would be able to take orders online and keep
track of the inventory.
The new system will handle the companies 1.5 Billion US$ in annual
purchases. The ultimate goal of this new system is to abridge the gap
between the buyer and supplier. Different departments of the Hilton
Cooperation will now be able to get a proffered discounted pricing
through bulk purchasing while cutting the cost of the middle man. The
implementation of this new system has helped cut the costs of the
Internet portals like Expedia from a 28 percent commission to 18
percent commission.
Another key part of the Hilton e-commerce strategy is to rival the
discounts offered by the large internet portals like Expedia
(www.expedia.com) and Travelocity (http://www.travelocity.com). As a
means of greater customer satisfaction, Hilton will provide a
consistent rate for all of its properties irrelevant of the bookings
made through Hilton proprietary Web sites, Hilton Reservations
Worldwide call centers, the Global Distribution Systems/travel agents
(including Expedia) and through hotels directly. The strategy will be
consistent in shaping brand integrity.
Hilton has also signed an agreement with large travel portals like
Expeida and Travelocity to provide the customers with the similar
rates that are on the home website. It has done so by integrating its
central reservation system to the Expdia’s main website. The strategy
will help Hilton to tackle the deluge of huge online discounts offered
by these travel portals. Since, only 10 percent of the booking is done
from the online portals and 75 percent through the main Hilton
website, such a strategy will allow Hilton Hotels not to reserve a
specific number of rooms for such internet portals.
Hilton has recently modified its online website to provide its
customers with a better navigation system and a greater customer
service opportunity by improving on its ‘Help’ contents. Individual
Hilton hotel websites now offer 3-D view of the rooms and greater
information for room availability functions. Instant online help is
available for frequent guest members. The facelift is a part of the
ambitious multimillion-dollar e-commerce initiative, which is designed
to increase the percentage of rooms sold online from 3% to 20% within
five years. Tim Davis, a senior vice president of the e-commerce added
that “Two thirds of our internet bookers are frequent guests – our
best customers – and we see this as a chance to utilize the web to
improving their experience which could mean outlining room preferences
or redeeming loyalty points online – anything that makes their lives
easier.” Hilton International has also invested in an 8 million pound
investment in technology that will allow its largest source markets
like UK, Germany and Japan to offer contents in the local language.
“Users will be able to interact in local languages with all hotels
worldwide, which is unique in the industry,” says Davis. “We will be
able to target local users with prices and relevant offers, catering
for specific demands. We want to use the web to reach for more
customers around the world, without having to use third parties.” For
this unique purpose Hilton International has enlisted 12 suppliers for
the local language development and integration. This includes such
varied companies as Oracle and Cable & Wireless that will help Hilton
international website to be available in 14 different languages.
Sheraton
Sheraton has been among the front lines of the hotel chains who
believe in the success of e-commerce by harnessing the power of its
corporate website. It has recently announced the complete redesign of
its corporate and brand Web sites with a fresh new look that makes it
easier for travelers to search for a hotel, find great rates and book
reservations online. The functionality of the sites has been retooled
with new and improved graphics, simplified navigation and a
streamlined booking process.
The new website will offer a more fulfilling online guest experience.
The most popular features of the website has been brought to the front
page, making it easier for guests to find exactly what they want right
away. Guests can now not only make reservations online, they can also
modify and cancel online even if these reservations were not
originally booked online.
Sheraton was the very first hotel chain to come out with a customer
loyalty program. It not only allows generous rewards to its customers
but is the only hotel loyalty program which allows its frequent guests
to integrate the points with the holiday and weekend rates.
Starwood preferred guest program which always wins more customer
service awards than any other hotel program. It allows its members to
earn two Starpoints for every eligible U.S. dollar spent at
participating hotels and resorts, reach a free night or free flight
faster than with most frequent guest programs and elite members earn
higher bonuses on each stay than with any other program. Same is the
case with the redemption of the points that is unique to the industry.
It includes such varied options as No Blackouts or Availability
Restrictions on Free Night Awards, 5,000 Mile Bonus when Transferring
20,000 and Starpoints to Miles Cash &Points Options.
Sheraton properties have always enjoyed a distinctive edge for its
business oriented environment that is integrated into the room
reservation system. Business travelers can arrange any of these
facilities online with a wide variety of on-site business services, a
full range of amenities and rooms that feature generous work spaces,
Sheraton is the choice of savvy business travelers who need to stay
productive on the road. In more than 150 locations, Sheraton Smart
Rooms feature ergonomically designed chairs, ample task lighting,
modem hookups and personalized voice mail - plus printing, copying and
faxing capabilities. . More and more Sheraton hotel websites now offer
varied room types for the business travelers and some hotels provide
online booking for specialized club level rooms with extra business
oriented features.
E-Commerce feasibility of the websites
Hilton hotel chain and Sheraton have both been very successful in
their e-commerce strategy. Both have put thought behind their
respective websites with a good design and back-end processing and
network management issues. Their e-commerce stresses a technical
know-how, and a strong shrift to the actual design and communications
which has ultimately made a global customer base. Their websites
incorporate both strong graphic design and compelling content with
robust, scalable order and request processing functionality.
Apart from the success of the two websites, Hilton has been more
influential in taking the lead of e-commerce marketing and pose a
better website than that of the Sheraton. Hilton supersedes Sheraton
by providing a more personalized service through easy navigational
drop down menus, instant access for Hilton honor frequent guest from
the main page and very intensive summary of the corporate affairs
that include investor relationship, franchise opportunities as well as
employment opportunities.
Sheraton’s e-commerce strategy is more focused on the business minded
traveler but the main website doesn’t focus on this marketing aspect.
A first time visitor is unable to comprehend the vast amount of
business opportunities provided by the hotel chain. In comparison,
Hilton has been influential in providing its business as well as
leisure travelers with detectable menu options.
It seems that Sheraton website has been greatly effected by its
incorporation into the Starwood team. The main website of the Starwood
properties of which Sheraton is a member provides a much thorough
presentation of its affiliates and information on the corporate
aspects of its business. General public is more aware of the Sheraton
brand rather than the Starwood logo which means that it will try to
access the Sheraton properties directly instead of logging onto the
corporate website of the Starwood properties. On the other hand,
Hilton’s website is more visible where guests can are taken to the
main page of the Hilton hotels when logged on instead of a separate
corporate website ( In this case, Members of the Hilton family ).
Recent changes in the design of the Sheraton and Hilton website
suggest that the customers will see more and more facilities in the
near future that will allow them to access many of the features online
without calling the hotel directly. With the advent of features like
Sheraton service promise and Hilton fast internet access, it is likely
that the two companies are likely to integrate such likely features on
their websites and make them more accessible.
(i) http://www.etourismnewsletter.com/ecommerce.htm
(ii) http://www.hotelnewsresource.com
(iii) http://www.sheraton.com
KEYWORDS
Sheraton and corporate traveler
Sheraton and e-business
Sheraton and internet
Sheraton and e-business
Sheraton and commerce strategy
Hilton and corporate traveler
Hilton and e-business
Hilton and internet
Hilton and e-business
Hilton and commerce strategy
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