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Hospitality Case Study
Hilton Reservations and Customer Care Group Decreases Costs and Increases Available Computing Resources with Wyse Solutions
The Challenge: Growing Call Center Capacity While Cutting Costs
This is a good time to be in the hospitality industry. Leisure travel is up 19 percent since 2000, and hotel occupancy rates continue to grow, despite average daily room rate increases of five to six percent in 2007. While this boom is affecting most hospitality companies, no company in the industry is growing faster than Hilton Hotels Corporation. Between 2000 and 2006, Hilton added 1,000 hotels to its system and expects to add another 900 by 2010. Currently, it has more than 2,800 hotels and 480,000 rooms in 76 countries and territories, and employs 100,000 team members worldwide.
Keeping those rooms booked is Hilton’s top priority, and the company is doing very well on that measure. Many of its hotels - in the U.S. in particular - are operating at occupancy levels in the high 80 percent range with room rates at all-time highs. Hilton’s RevPAR (revenue per available room) - the all-important metric in the lodging industry - grew 30 percent from 2002 to 2006.
The challenge for management at Hilton Reservations and Customer Care Group is to provide high-quality customer service to the growing number of travelers inquiring about reservations, as efficiently as possible. The company wanted to increase its quality of customer service while decreasing its call center costs, and realized that a work-at-home program for its call center staff could address both requirements.
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