The Effect of Disruptions on the Hotel Industry: a Case Study on COVID-19's Effect on Hilton Worldwide

COVID-19 had a large impact on the global economy, including the global tourism industry, which had to adapt due to travel restrictions and health concerns among consumers. This study aims to find how the hotel industry adapts in response to the changing customer segments and customer demands in response to a disruption. In particular, it offers a case study of the response of Hilton Worldwide to COVID-19. The research finds the strategy of Hilton Worldwide changed from growth focus to cost management, causing a more centralized governance structure. Moreover, Hilton Worldwide has put the Hilton Honors App in the spotlight, which can offer a fully digitalized and contactless check-in procedure. This research analyses this via a BPMN model. To cope with the loss of business travelers, a new business model for Hilton is proposed; renting out rooms as workplaces. However, this imposes new cyber risks such as; key Bluetooth signal interception, key interception when shared, a data leak and unauthorized access to Hilton Honors account. Finally, the findings are discussed in light of the pre-COVID-19 business strategy of Hilton Worldwide to identify opportunities and threats in the new strategy.