Memorandum.

To: Board of Directors. Hilton International PLC. Cc: Mr. Marco van Dyk. (General Manager) From: Tushar Mulekar. (Quality Auditor) Date: 20th March, 2008 Ref: Action plan following recent quality audit conducted on 6th March 2008.
Business health check: According to EQFM (European foundation for quality management) business health check is a critical part of every organisation. which is the secret of Hiltons impeccable service standard. It has enabled us to set quality standards. It helps us to monitor and control the level of quality of the products and services that we offer, to ensure that we meet the quality targets we must adhere to the concluded action plan following recent health check. By using the findings of the quality check modal we can meet your customers needs, thereby ensuring your success. (www.efqm.com) Audits performed at Hilton Watford regularly in various departments ensure that all standard operating procedures are adhered to, and the brand standards are followed throughout the Hotel. The business health check model (GSTS) which is been adopted by the Hilton Hotel Watford depends on guest feedback. a questionnaire developed exclusively to capture the satisfaction is sent to the guest automatically via email after a guest checks out. The questionnaire covers all areas of the hotel and all the aspects of the hotel. Based on the feed back an average score is propounded, depending on which further action plans for guest satisfaction and guest loyalty is drafted, implemented and monitored. Standards of services quality depends heavily up on GSTS results generated using feedback received. The result below gives us an overview of the service quality and efficiency of the front office department. Reception being the hub of all the departments, its efficiency ensures the satisfaction of the guest.

GSTS SCORES March 2008. Recent result of quality audit.

Time taken at check- in

Hilton Watford
79%

South Region Average

81%

Target
83%

Time taken at check out: Hilton Watford

79%

South Region Average

80%

Target
86%

Availability of room type reserved: Hilton Watford

91%

South Region Average

81%

Target
83%

Helpfulness of reception staff: Hilton Watford

59%

South Region Average

81%

Target
73%

Helpfulness of the porter Hilton Watford

79%

South Region Average

83%

Target
73%

Accuracy of itemised Bill Hilton Watford

47%

South Region Average

56%

Target
54%

GSTS Report February 2008 Hilton Watford Hotel ref: appendices

Measures to be taken to elevate GSTS scores to the desired levels by April 2008 Time Take at check in: In order to over come delays in checking guest every reservation will be cross checked my the supervisor and the manager with respect to type of room reserved, rate , payment method etc. wherever possible an upgrade will be offered. Rooms will be pre assigned as per the guests preference and likings. All the registration cards and keys should be pre cut so as to avoid confusion and delays. This will give sufficient time for the receptionist to have a small informal chat with the guest.

Time Taken at check out: Delays at check out are undesirable; in order to avoid delays nights team must ensure that the charges posted a correct, all other allied guest transaction must be backed up with back

up receipts. All the terminals must be operated at busy check out periods. Express checkout facility must be practiced. Availability of the type of room reserved: All the reservations should be in line with the availability of the room reserved, rooms should be pre assigned and allocated to avoid confusions. Accuracy of Billing: Late shift to look for charge routings and bill back to company, supervisor to cross check with reservation and arrange back up to avoid confusion. Night auditor will check rate accuracy. With respect to the recent Quality check and the GSTS results it is essential to concentrate on the following points so as to make sure that we achieve desirable service standards. Staff Training: In regards to the quality check findings few areas of the staff are concerning. Helpfulness of the staff is below the mark and requires prompt action. In order to elevate the standards and the scores in this area staff training and development is essential. Every reception team member will undergo special training concentrated on sharpening their customer services skill. Apart from that they will have to successfully complete brand standards training. This will equip them with the brand standards requirement. Through this programme we aims to make everyone feel valued within their working environment. Its objectives are to maintain high standards in service and to create a business culture.

Journey ambassador: To provide personal care and attention to the guest needs. Select team members will undergo Journey Ambassadors training; the purpose of the initiative is to be within the reach of the guest whenever they need help. The job of the journey ambassador will be to facilitating every aspect of the guest stay, journey and queries. The JAs will be trained to be extremely guest oriented. JA will be present in the lobby at all times so as to assist the guest by offering them help with luggage, directing them to the hotels facilities etc. Upgrades: Every guest like rewards and preferential treatment. In order to meat there requirements when ever possible a guest will be upgrade to the higher category of room, plus will receive special free amenities in room. When ever an upgrade is not possible special amenity package must be offered. This will help in conveying the message that the hotel cares values there custom. By this way we can ensure repeat business. As per mintel research the cost of retaining a guest is 11 times less than the cost of attracting a new guest. www.mintel.com/ 1&eurl=&iurl=http%3A//i.ytimg

Action plan: Training and development:

The aim of the action plan is to provide employees learning and development opportunities. Whereby elevating the standards of the services together guest satisfaction. Every Hilton hotel provided with learning centre so every team member will have complete generic brand standard training. The objective of this course is to provide consistent and high level of service which is the minimum requirement of the guest. (http://www.hiltonuniversity.com/hilton-university/) It is the responsibility of the Department Head to see to it that they get every member of their team trained by the end of March 2008. The time frame of the training set by the Hilton University is 8 hours, which involves four computer based modules of two hours each. The department head should see to it that a member of staff completes one module per session so that they can learn and implement there learnings simultaneously. The cost of training will be incurred by the department as there is no separate allocation for the same in the budget. The Department heads assistant head and the supervisors will have to under go Train the Trainer Course, which is one to one classroom style training session of 2 hours which will be conducted by Human Resource Department. As per Roger Bennet In his book Human resource management where he states that staff motivation is the main factor behind guest satisfaction. So in order to keep the motivation level of the staff to its optimum an organisation should concentrate on the rewards and benefits to the staff in order to maintain there performance. Hilton Hotels have there unique and renowned awarding system E-Spirt. The benefits of the club must me communicated to the team members so as to encourage their performance. The cost for the same can be accounted to the Human resource Department. (Human Resource management, by H.T. Graham and Roger Bennett. Ninth edition, published 1998, Publisher Financial Times Prentic Hall) Journey Ambassador: According to Conrad Hilton the Founder of Hilton Hotels, his mission is to Spread Light and Warmth of Hospitality around the World. Through Journey ambassador initiative Men and Women who work are working with Hilton make Conrad's vision a reality. Under this initiative a lobby lurk will be appointed who will be addressed as Journey Ambassador whose aim would be to facilitate every aspect of the guest stays. He will be the first person to make the first contact up on guests arrival and departure. In order to perform his duties they should have good communication skills and sound knowledge of surroundings. The department heads and experienced staff who meet the minimum requirements of the plan, will be further groomed to perform this role. There will be no need to employ new staff; the cost of training is minimal. On a introduction basis all the department heads and deputy heads will be trained by the human resource department by April 2008 end. http://hiltonjourneyambassador.com/

Bibliography

Operations Management, Ronnie Mcmillan, Tom Mullen Published by University of Strathclyde Business School. Human Resource management, by H.T. Graham and Roger Bennett. Ninth edition, published 1998, Publisher Financial Times Prentic Hall www.hilton.co.uk www.bbcworldservices.com www.mintel.com

Appendices Hilton Hotels uses unique system called GSTS system, Guest Satisfaction Tracking system. This system is rigorous and is based on key aspects of guest expectations and meeting there expectations. This system is based on feedback received from the guest via email which then is converted in to point system, based on which individual revives of the guest can be ascertained, the same later on become the basis of overall positioning of the guest satisfaction levels. Hilton Hotels strive to maintain an acceptable guest satisfaction level. In Hilton International surveys of customer opinion are carried out through Guest Satisfaction Tracking System (GSTS) it allows the hotel to compare performance All Hilton hotels are monitored and targeted on the levels of customer satisfaction and the levels of satisfaction are managed on the basis of the same above process. GSTS process helps the organisation to understand preferences and habits of hotel customers. It has helped in generating repeat business by eliminating the possibility of guest dissatisfaction, possible delays in check-in, check- out, room reservation process, consideration of preferences, it also helps in gaining the generic opinion about the hotel service, there expectations etc. It also provides vital information pertaining the business process and delivery of services and the infrastructure etc.