Hilton Case Study
Hilton Hotels owns, manages and/or franchises hotels and casino-hotelsand inns across the world. It also sells furnishings, equipment andsupplies to hotels, motels, and inns and operates a computerizedreservation system. Recently, Hilton's hotel business is prospering withabove-industry occupancy rates and an improved average daily rate.However, previously prosperous gaming operations are suffering from an Hilton has adopted a single-brand, multi-product line development andmarketing strategy that targets all types of travelers. It customizes itshotel services by purpose of visit and origin of guest. It has alreadyinvested heavily in the concept of packaging gaming with themeentertainment and expects to make additional substantial investments over Both hotel and gaming operations are extremely competitive. But, thegaming industry presents more risks than do hotels for several reasons.First, the degree of investment required to be successful is high to keepup with the pace of competitors. And, much of this investment is in thepackaging of gaming with theme entertainment which isn't always successful
For example, there doesn't appearto be a strong corporate identity or a cohesive hotel naming convention asevidenced by the names which begin with the names of locations rather thanHilton. This presents seriousissues for Hilton's continued long-term success in the hotel industry. To promote success in the chosen market segment, there needs to be anall out assault across the sales force, its reservation system andmarketing programs. There may also exist opportunities by geographic region that competitorscould exploit through Hilton's neglect to pursue the opportunity or itsinability to compete in that location. Although the gaming industry has potential for a positive impact onoperating earnings, it holds an equal chance for a negative impact. The company doesbusiness in more than fifty countries around the world catering to theneeds of 130 nationalities at 150 locations. Next, Hilton needs to analyze which market segments arelikely to grow and should expand investment in that area. As is the case with hotels, the company shouldexplore which particular segments have the greatest growth potential andshould focus its attention there. Some suggestions for promotions include a guest reward programbased on hotel stays at the Hilton chain, a program to encourage businesstravelers to use Hilton for vacation purposes and a program to encouragestay at new locations. It shouldconsider branding the company under the umbrella of quality to mirror itshigh level of satisfaction and should rename all properties to begin withthe name Hilton. Hilton should also take advantage of itsreservations systems to generate repeat business and to strengthen theHilton brand. While there's nothing wrong with a single-brand, multi-product linedevelopment and marketing strategy that targets all types of travelers,Hilton needs to do a better job with cementing its brand and identifyingand responding to growth opportunities. Hilton needs to assess when the return of gaming industry will returnand invest accordingly. But, a company such as Hilton will need to develop a strongglobal brand that is apparent throughout the product line. Conclusion The theme of this case study analysis has been that there's nothingwrong with a single-brand, multi-product line development and marketingstrategy.
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