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The Hilton Hotels Company Hospitality Project Report

Research Outline

The Hilton Hotels Company 

  • 1.Introduction
    • a) Definition of Hospitality IndustryThe Hilton Hotels Company Hospitality Project Report
    • b) Objective of Hospitality Industry
  • 2. Introduction to Hilton Hotels Company
    • a) Development and growth of Hilton Hotels
    • b) International outlets of Hilton Hotels
  • 3. The marketing mix of the Hilton Hotels
    • a) How Hilton Hotel differentiates itself from other hotel companies in the industry
    • b) The 4Ps marketing strategy used by Hilton Hotels Corporation
  • 4. Price strategy of the Hilton Hotels Corporation
    • a) Skimming pricing
    • b)Economy pricing
    • c) Penetration pricing
    • d) Premium pricing
  • 5. Products of Hilton Hotel Corporation
    • a) Products and services offered by Hilton Hotel that differentiate it from its competitors
  • 6. Place of Hilton Hotel Corporation
    • a) Strategic location of the Hiltons Hotels in the cities of the world
  • 7. Promotion of Hilton Hotel Corporation
    • a)Promotional strategies used by the company to attract customers and retain their staff
  • 8. Parity Situation at the Hospitality Industry and the Hilton Corporation
    • a) Effects of parity situation at Hilton Hotels Corporation
  • 9. Hilton Hotel Brand strategy
    • a) The Tru by Hilton Hotels as a brand strategy
  • 10. Recommendations and Conclusion to the CEO
    • a) Summary of the recommendation to the CEO


The hospitality industry is one of the fastest growing industries in the world. Hospitality entails the relationship between the host and the visitor or guest. The hosts are expected to show their respect to their guest by providing them with what they require. Hospitality industry consists of various companies such as hotels, resorts, and inns among others.  Hospitality industries provide services that are aimed towards customer’s satisfaction.  Customers are the main reason behind their operations. Different hotel companies offer various services to their clients. Their primary goal is to attract customer loyalty. Most employees who work in the hospitality industry are required to handle their customers with respect, honesty, and respect (Cai & Hobson, 2004). In this paper, I will discuss the Hilton Hotels Company within the hospitality industry. I will explain how this company differentiates itself from other hotels in the industry and its brand strategy.

The Hilton Hotels Company

The Hilton Hotels is one of the leading hotel companies in the United States. The company targets both leisure travelers and business persons. The hotels are located in the major cities in the world near the airports, major vacations centers, and convention centers. The company expanded in the year 1999 when it acquired other hotels such as Promus Hotel Corporation, Embassy Suites Hotels, Homewood Suites, and Hampton Inn and Suites. As a result of this acquisition, the company has grown to become the most successful hotel companies in the world. The hotel company has several branches all over the world. It operates in more than 80 countries with over 2800 outlets in the world. Hilton Hotel Corporation owns various hotels in the world. Besides, its franchisees and manages other hotels in other parts of the world. For instance, the Conrad Hotel which is the international arm of the Hilton Hotels operates in other countries such as Belgium, Egypt, Singapore, Australia, and Ireland among other nations. The company was founded in the year 1919 under the management of Hilton family members. The company publicly trades its shares in the stock exchange market. In the year 1960, Hilton Hotel sold most of its international outlets. This gave it the opportunity to concentrate in the franchising and management contracts. It entered into major innovative business ventures so as to earn more income.

The Hilton Hotels industries are using various marketing strategies to differentiate itself from the rest of its competitors in the world. Its innovative marketing strategies have allowed it to become one of the most successful hotel companies in the world. For instance, most outlets of the company are located in the main cities of the world (Cai & Hobson, 2004). They are situated close to popular international airports, conference facilities, and vocational centers. The company understands that marketing in the hospitality industry is the primary factor that will allow the organization to remain relevant in the market among its competitors. The company uses innovative strategies to train their staff so as to understand their customers’ needs, expectations, demand and priorities among others. In this case, they have increased their customer loyalty since they target both businesses personalities and leisure travel individuals. The company has developed its infrastructure in such a way that they cater to the needs of all their clients. The company has also made it services available on the various websites, blogs, social media and the internet. In this case, the customers can get to know any information they require from the company. Besides, they can check updates concerning the company’s progress online without having to call to inquire from the enterprise employees. On the other hand, the company has made it possible for its customers to make their bookings online (Cai & Hobson, 2004). They also have a Facebook account where customers can comment on their views concerning the services they have received from the company.

The Hilton Hotel Corporation has utilized the marketing mix that focuses on place, promotion, product and price in a different way that distinguishes it from its competitors in the market. The company has utilized the marketing mix so as to achieve its marketing objectives and expand its market niche.

Price of the Hilton Hotel Corporation

Fixing the right price is one of the challenging tasks a business organization does experience. It is hard to set a price that appeal to all customers in the market. The price set for products should be reasonable and affordable to the targets consumers. This will allow the organization to attract and sell more to its consumers. Hilton Hotel Corporation utilizes competitive pricing strategies to enable them to compete effectively in the market (Cai & Hobson, 2004). For instance, they offer discounts, credits, and useful terms of delivery that allows the company to attract both leisure travelers and business persons. The company utilizes the four broad categories of pricing strategy matrix such as the economy, skimming, penetration and premium pricing to sell to its targeted consumers. The company uses the economy pricing strategy to sell some of its products to low-income earners consumers or customers who have small budgets. On the other hand, it utilizes penetration pricing strategy to offer high-quality services and products at a lower price than their competitors so as to increase their share in the market.  Skimming pricing strategy is where the company a firm charges high prices than those of their competitors. The Hilton Hotel Corporation utilizes skimming pricing strategy so as to differentiate their quality products with those of their competitors. It is a pricing strategy that associates services that are of high quality. Premium pricing strategy is utilized by the company to charge prices for providing excellent and quality services to its customers. The pricing strategy is associated with services with exceptional features and characteristics. For instance, the company offers four-star and five-star hotel rooms to its clients. It uses premium pricing strategy to issue rooms to its customers (Cai & Hobson, 2004). This is because the rooms come with other benefits including high-status, luxury, and personal achievement.

Products of Hilton Hotel Corporation

Hiltons Hotels and Resorts are full-service hotels that provide a range of goods to their customers. They have differentiated their products so as to cater to the needs of a wide variety of clients. Some of the products that the hotel offer that makes it unique from other hotel companies include conference facilities, swimming pools, retail services, food and beverages,  restaurants and lounges among others. The company has grouped its products into three levels so as to become unique among its competitors. Such standards include core products, supporting products and facilitating products. The core products are basic products offered to all customers who are capable of acquiring products from the company (Cai & Hobson, 2004). It’s major, or core products include hotel rooms that provide accommodation to their clients for a particular duration. The peripheral services are additional services that the company provides to its customers. The peripheral services offered by this company are to allow it get a competitive edge among its competitors in the market. Such peripheral products include customer’s services, online bookings, and reservations, bars, and restaurants.

Apart from facilitating and peripheral goods and services, it also offers supporting products to allow it attract more customers in the market. For instance, it provides their clients with luggage hold, lounge, baggage storage, safety deposit box, electric service, laundry facilities, and elevators among others. Besides, the company standardized children menus, high chairs cribs which at the convenience and comfort of the family members. In this case, they can provide facilities that appeal to both family members and business travelers. The business travelers are provided with free magazines and newspapers as a way of retaining their trusted clients. The company is also committed to providing comfort to their customers. In this case, they offer membership discounts for those who have subscribed as life members of the business. The life members are also provided with luxurious rooms, relaxed and free hotel atmosphere, and exterior designs so as to retain their loyalty to the company. This is also another way of enticing more people to subscribe to life membership to the enterprise. The company also provides services that ensure that business persons get the best experience while at the hotel (Cai & Hobson, 2004). They are equipped with business phone services, fax, express mail services, internet services, meeting rooms and visual and audio equipment to allow them to carry out the business meetings conveniently.

Place of Hilton Corporation

The ultimate objective of any hotel company is to make itself accessible to most of its clients and other stakeholders at their convenience. The hotel industries are interested in making their services available to consumers in a way that would appeal to them. The company has set branches in different countries in the world so as expand its market share. The company operates more than 745 000 hotel rooms in the world. Their distribution strategy relies on the efficient utilization of information technology that allows it customers to learn about the services it offers (Cai & Hobson, 2004). Besides, the information concerning the activities of the company is also available on the World Wide Web. As such, clients can make online booking in spite of their location. The online platforms provide practical assistance to the customers the company provides in different places.  Such events include weddings, conference meetings, and hotel accommodation. The company has located most of its hotels close to busy international airports and conference facilities so as to appeal to both business persons and tourists. The strategic locations allow the company to appeal to its clients since they don’t have to travel a long distance to access the hotel. The company utilizes social media platforms and has developed applications that customers can download on the Android phones to allow them to access the hotel facilities. Besides, the online platforms are used to distribute their products to their clients at their convenience. The company utilizes online platforms as a competitive strategy to ensure that they are always convenient in the provision of their goods and services to the clients and other stakeholders such as suppliers.

Promotion of Hilton Corporation

The company has maintained its brand name and identity through effective marketing. The customers of the enterprise identify themselves with the logo, name, design and the look of the business. The company has an attractive brand name and identity that attracts customers. The company has used its brand name and identity as a promotional strategy to allow it gain a competitive advantage in the market. The company uses their customers as a source of a promotional strategy. They always ensure that their clients remain attracted to their brand by providing exceptional quality services. The services provided by the company ensure that the customer’s needs and wants are met. This increases their level of confidence and trust in the enterprise. They also keep in touch with their clients through mobile phone messaging and e-marketing. They award their customers with loyalty cards as a way of retaining them. Hilton Hotel utilizes customer relationships as a marketing strategy so as to maintain stable relations and build a network with other market stakeholders. Building strong market systems is an effective promotional strategy that allows Hilton Hotel to fight competition in the market (Cai & Hobson, 2004). The company has also invested in its employees to carry out internal marketing. It is a way of appreciating the efforts of the employees. This also helps the company to retain its best talents. A committed workforce who embraces their clients is an added value to the business of the organization. Hilton Company also hires competent and skilled workforce who understands the needs of your customers. In this case, the customers have been able to identify themselves with the hotel. They get whatever they want at their convenience while at the hotel.  The staffs working for the organization understands the needs and wants of their clients. This is because the management treats them well by offering them with comprehensive packages which include medical cover, flexible work arrangement, and the stock purchase plan. The company has also invested heavily in the training and development. This is an effective promotional strategy since it allows the employees to gain essential skills that enable them to respond to the needs of the clients at the soonest. Training allows the staff members to handle their customers with a lot of respect which is required for a hospitality industry. Other benefits that the company provides to its staff includes paid holidays or vacations as a way of appreciating the loyal and committed staff. Other promotional strategies employed by the corporation includes e-marketing that provides unique opportunities for its customers to interact with the staff of the organization. Through e-marketing, customers can know what services and products are available and how they can access them. The e-marketing platform of the Hilton Hotel is unique since it allows the customers to make inquiries at any time of the day (Cai & Hobson, 2004). Besides, they can get their complaints solved at any time. This has enabled Hilton Hotel to achieve its marketing objectives and sales target. The company also utilizes social media platforms such as Twitter and Facebook and responds promptly to the needs of their clients. Moreover, the online platform is used to deliver products and services requested by the customers. Such services include allocation of hotel rooms, conference facilities, and wedding arrangements. The innovative promotional strategies employed by the company have enabled to withstand competition in the market. The wide range of products and services it offers has also enabled it to attract a wide variety of clients from different countries where it operates.

Parity Situation in the Hospitality Industry and the Hilton Corporation

The hospitality industry experiences parity situation. Several hotel companies compete against Hilton hotel in the industry. These companies provide similar services and products that are provided by Hilton Hotels. In this case, parity situation arises in various areas concerning the rates of accommodation, conference facilities, and wedding events. The rate parity in the hospitality industry reassures consumers of the best prices in the market regardless of the channel of distribution utilized to acquire such a product. The hospitality industry experiences both price and rate parity on their distribution channels. The price parity influences the operations of Hilton Hotel since the prices of its rooms, and other facilities are determined by those of its competitors such as Marriot International Hotels, Intercontinental Hotels, Hyatt Hotels, and Park Hotels and Resorts among others. Rate parity is beneficial for the hotel industry since it allows the hotel industry to streamline how they manage their inventories and to provide better services to their consumers in the long run. The rate parity is beneficial for both the customers and the company since it ensures that consumers are not exploited, and at the same time hotel industries get the best returns from their investment.

The Hilton hotel feels that the parity situation in the industry is not good for its operations since it does not allow it to set relevant prices that appeal to its customers as a way of marketing its products. In this case, the autonomy of identifying competitive prices is taken away from the company. On the other hand, the parity situation in the hotel industry limits the ability of the Hilton Hotel to provide unique and distinguishable experience for its clients.

The Brand Strategy of Hilton Hotel Corporation

Hilton Hotel Inc. offers a variety of brands that appeal directly to its customers. It offers brands that appeal to customers regardless of their age. The brand strategy of Hilton Hotel Inc. is known as Tru by Hilton. This brand attracts both business and leisure travelers. The millennial mindset created by the brand has a youthful outlook that will appeal to the expectations of customers of customers of all ages (Cai & Hobson, 2004). The brand strategy of Hilton Hotel is to create fulfilling experiences and memories for their clients of all ages. The brand strategy of the company is to provide the core facilities at the convenience of their customers. Their brand strategy ensures that the clients get the essential services integrated with the current technology. The brand strategy of Hilton Hotel is to develop various brand elements and brand pillars that communicate the core objectives and goals of the company. Such components should be based on the logo, messaging and visual expression of the brand through the various online platforms such as Facebook and Twitter among others. Tru by Hilton is a brand strategy that emphasizes on the modes of advertising that the firm can use to promote its brand to its customers (O’Neill & Xiao, 2006). Besides, the brand strategy will allow it to gain a competitive advantage in the market. The Tru by Hilton focuses on the advertising strategies that differentiate the company from its competitors in the market. It also focuses on how the company can connect to its consumers in the market through various platforms such as Instagram, YouTube, and Facebook among others (O’Neill & Xiao, 2006). This brand strategy will combat the influence of Airbnb in the hospitality industry. It is a brand strategy that focuses on customer’s service, price and the overall experience that the consumers derive from the products and services of the Hilton Hotel Company.

Recommendation and Conclusion

The Hilton Hotel Inc. has proved to be innovative and a market leader in the hotel industry. It has utilized the latest technology to interact and provide customer service to its clients. Besides, it is working on a brand strategy that would ensure that its services remain the best in the industry. However, there are some areas that the company should improve or implement new strategies so as to remain the leading hospitality company in the industry (O’Neill & Xiao, 2006). Even though the company provides training and development programs to its employees, they should also be involved in decision making as well. The employees are the greatest assets for the organization. In this case, their concerns and opinions concerning customer experience should always be taken into consideration. The employees interact with the clients in most cases. They respond to their calls, emails and Facebook comments among others. As such, they understand the needs and expectations of the customers better than anyone working for the organization. Therefore, their feelings and opinions should be considered while making major decisions. To attract a wider market, Hilton Hotel should also introduce three-star facilities in the developing countries so as to increase sources of their income. This will make them appeal to more customers and attract a wider market compared to its competitors.

Also Study: Hilton Hotel Transformation Management Review

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  • Zervas, G., Proserpio, D., & Byers, J. W. (2014). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research.

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