By: Sandy Cisneros, Debbie Orr Chandler,

& Alexandra Viera

HISTORY Hilton Hotels & Resorts was founded by

Conrad Hilton in 1919 Mobley Hotel was the first property

bought by Hilton in Cisco, Texas The first hotel to bear the Hilton name

was the Dallas Hilton in 1925 Hilton Hotels became the first coast-to-

coast hotel chain in the US in 1943

MOBLEY HOTEL NOW A MUSEUM

CONRAD HILTON DALLAS HILTON

FACTS There are 4,112 Hilton Branded Hotels

across the world in 91 countries across 6 continents.

Hilton hotels are either owned by, managed by, or franchised to independent operators by Hilton Worldwide.

HILTON BRANDS Luxury: Conrad Hotels & Resorts,

Waldorf Astoria Hotels and Resorts, Curio – A Collection by Hilton

HILTON BRANDS CONT. Full Service: Hilton Hotels & Resorts,

DoubleTree by Hilton, Embassy Suites

HILTON BRANDS CONT. Select Service: Hilton Garden Inn,

Hampton Inn, Hampton Inn & Suites

HILTON BRANDS CONT. Extended Stay Suites: Homewood

Suites by Hilton, Home2 Suites by Hilton

Timeshare: Hilton Grand Vacations

HILTON HHONORS REWARDS PROGRAM Loyalty program where guest

accumulate points from staying at Hilton brands

Largest rewards program with over 30 million members

Partnered with major airlines for guest to accumulate both points for free hotel nights and miles for free flights

HHONORS TIERS Blue: obtained upon enrollment Silver: obtained after 4 stays or 10

nights Gold: obtained after 20 stays, 40 nights

or 75,000 points Diamond: obtained after 30 stays, 60

nights, or 120,000 points

HILTON AND MARKETING “Stay Hilton, Go Everywhere” a marketing

message that states a large global brand Hilton operates hotels and other related

services in accommodation, gambling, and entertainment areas

Revenue gained from hotel rooms, restaurants, bars, smaller shops, spa, laundry service, travel desk, business center and banquet halls

HILTONS MISSION “Our goal us to maximize exposure and

increase revenue streams both online and offline. These teams work closely

together to implement groundbreaking initiatives with the latest market-

leading tool kits. Our local, national and global marketing strategies are just the

beginning of our commitment to increasing your hotel’s profitability.”

HILTON MARKETING LEADERS Jeff Hilton – Chief Marketing Officer, Co-

founder Gail Frankoski – Director of Marketing Lisa Openshaw – Media Buyer

HILTON’S COMPETITIVE SET “ The key to our competitive advantage is that

we have a lot of pieces that work well together. Since we are the only company that has the same technology platform and distribution footprint throughout all the brands, we can

leverage our strengths consistency across the entire system. Fundamentally, we agree that

unless we do something consistently across a lot of our hotels and there is sufficient repetition

and reinforcement, it does not matter that you have superstar hotels-that’s the brand promise.”

HILTON’S DIFFERENTIATION STRATEGY Providing very high-quality guest experiences

that appeal to both business and personal travel

Based upon persuading customers that a product is superior in some way to that offered by competitors

Uniqueness can be achieved through service innovations, superior service, creative advertisement, better supplier relationship leading to better services, and many more

HILTON’S TARGET MARKET Geographic Segmentation – mainly focuses on the

local preferences and the location Demographic Segmentation – represents middle and

senior aged professionals with high level of income belonging to upper social class who pursue luxury lifestyle

Psychographic Segmentation – targeting ambitious individuals who would like to express their perceived high status and achievements by staying in 5 star rooms for premium price

Benefits Segmentations – perceived or real benefits offered by Hilton to potential and existing customers include sense of achievement, a high status in society and luxury

CUSTOMER SERVICE “ Highest in Guest Satisfaction Among

Upscale Hotel Chains” Awarded highest ranking in the J.D.

Power 2014 North America Hotel Guest Satisfaction Index Study

HILTON’S PROMISE “ We promise to do whatever it takes to

ensure you’re satisfied, or you don’t pay. You can count on us. GUARANTEED. We are committed to providing an excellent hotel experience for every guest, every time.”

“Our Best Rates Guarantee assures you receive the best rates when you book directly with us. If you find a lower publicly available rate anywhere else, we will match that rate plus give you and additional $50 back!”

GLOBALLY MOTIVATED Every country is different, Hilton Regional Marketing

teams execute orchestrated, regionally relevant, go-to-market strategies across key segments that drive business to Hilton properties

Conduct business in 42 languages serving 25,000 customers in 91 countries from 34 offices located around the globe

Hilton focuses on being the most global, integrated, and relevant sales force in the industry, relentlessly driven to grow market share

HILTON HOTEL COMPETITORS Know what kind of marketing will be effective or what

pricing strategies you want to use for your products or services.

Know what kind of marketing will be effective or what pricing strategies you want to use for your products or services.

How good their annual sales are comparing to yours. Hilton competes with global players, such as Starwood

Hotels & Resorts Worldwide, Marriott International, Choice Hotels International (CHH), Hyatt Corporation, the France-based ACCOR Group, and Intercontinental Hotels.

Hilton already has a strong presence in the U.S and is expanding its global operations through acquisitions.

HILTON HOTEL TARGET MARKET Hilton Hotels Corporation (NYSE:HLT) is one of

the leading hotel and leisure companies in the world. It is primarily involved in the management and development of hotels across the globe.

Hilton has recently changed its growth strategy, and it now focuses on spreading its operations through franchisees.

Hilton target upscale business travelers, the impact of increasing airfares will not be too significant for Hilton.

HILTON HOTEL TARGET MARKET CONT. Hilton need to apply hotel revenue management

to its market segmentation, this would help the Hilton to target and market to a variety of consumer groups with different behavior with an offer that match their needs an budget level.

Hilton should be able to identify the length of time those customers stay for the group business.

Hilton should be able to identify the length of time those customers stay for the different segment.

HILTON TARGET MARKET CONT. Hilton could have people working for them who speak more

than one language in order to cater to people all over the world such as France, China and Spain etc.

Hilton should target more of the transient segment which is made up of individual business and leisure travelers which is a key for the hotel.

Hilton has to make sure that their employees are well trained because that is the key to the success of the company, having great customer service.

Pricing is also important in strategy when selling your product in order to attract customers. They have to make sure that they stay in the margin close to their competitors.

HILTON MARKETING VISION One of the most important effects in having a

successful marketing is the company vision. Hilton has to make sure that your vision is

focusing on their business over all business plans, with a specific focus on the marketing of their products and services.

Hilton’s occupancy rates and revenues per available room have also increased continuously over the last few years, indicating that the company has been able to sell its hotels/rooms well.

HILTON STRENGTH AND WEAKNESS A SWOT analysis is an organized planning method used

to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business project.

A strong supply chain helps Hilton hotels obtain the right resources from suppliers and delivery the right product to customers in a timely manner.

Strong management can help Hilton hotels reach its potential by utilizing strengths and eliminating weaknesses.

Their great technology allows them to better meet the needs of their customers in ways that competitors can’t imitate.

HILTON STRENGTH AND WEAKNESS CONT. Customers are loyal to them so maybe instead of only targeting one

customer they should make sure they target new customers in order to grow their business.

Hilton do have a high brand recognition, technical innovations to improve customer experiences and constant upgrade of business processes, good employee retention, around 540 hotels in over 78 countries, they have been in the industry for 93 years now making the real experts at what they do and good reputation in the market.

In terms of their weaknesses Hilton hotel may be two narrowly focused making it vulnerable to a downturn in the global economy and other world-wide catastrophes that could limit global travel.

Hilton hotel have limited market share in spite of good brand recall. Their operations are affected globally due to different Government policies and parameters.

SWOT ANALYSIS: OPPORTUNITIES The opportunities sector is the external

factors that the company may be able to exploit to its advantages.

An area of need that a company can perform profitability

Positive outcomes

OPPORTUNITIES FOR HILTON HOTELS Dynamic growth in emerging markets

Emerging in different markets around the world that are up and coming

Examples: India, China

Technology Revolution Having up to date technology In the hotels will

aid in customer service New technology can help the hotels market

themselves to new customers

OPPORTUNITIES FOR HILTON HOTELS CONT.

Going Green Customers will be attracted to stay at the

hotels Number of customers will increase

significantly Operation prices will decrease and the

prices for customers will decrease as well. Hilton hotels will be saving money, yet

they will still be performing profitability

SWOT ANALYSIS: THREATS Threats are current and emerging external

factors that may challenge the company’s performance.

Threats are challenges posed by unfavorable trends or developments that can lead to the absence of defensive marketing action, which can lead to sales and profit deterioration.

Negative outcomes

THREATS FOR HILTON HOTELS Competition amongst luxury brand hotels

New hotels are always opening up, therefore Hilton hotels will have competitions which they must pay close attention to

Hilton hotels should learn about the competing hotels’ prices and amenities.

Economic and Political Turbulence When the economy is down, the amount of guest will

decrease meaning that the income of Hilton hotels will decrease.

It is important to be up to date with the news about the economy and politics all around the world.

HILTON HOTEL’S APPROACH TO CUSTOMER SERVICE

“ Our commitment to guests: to ensure every guest feels cared for, valued, and respected”

Hilton Hotels cares about their customers and the experience they have during their stay.

Awards Earned: 2009: Stevies Award for best customer service team

and best customer service complaint team 2010: Stevies Award for favorite customer service team 2011: American Customer Satisfaction Index gave

Hilton Worldwide the highest average satisfaction score. (3 consecutive years)

FUTURE MARKETING METHODS Going Completely Green

Changing everything in the hotels to eco friendly: bedding, furniture, electricity, technology, food

This will bring in new customers The prices of guestrooms will decrease The operational costs for Hilton will decrease They will make profit because they will have

an increase in customers

FUTURE MARKETING METHODS CONT. Complimentary Meal and Wine

Having a program that gives customers a complimentary meal and bottle of wine when they stay at the hotel will bring in customers. When customers are receiving something complimentary they are happy and will most likely come back again if they enjoyed it and the service was good. It is a good incentive for customers. The hotel will be spending extra but it will bring back customers and business will increase.