Overview of Hilton Hotels and Resorts
Hilton Hotels and Resorts is a worldwide recognised brand of hotels and resorts and is the flagship of Hilton. The company was founded by Conrad Hilton. By 2017, there are 570 and more properties in 85 countries. They are either owned, managed or franchised by independent operators of Hilton. The Hilton Hotels is one of the largest brands in the world. It targets business and leisure travellers both (Walker and Walker, 2016). With all the locations in major cities and near airports and vacation spots. Members who book directly from Hilton owned channels get exclusive discounts and free Wi-Fi, keyless entry and a choice of room.
Hilton, United Kingdom operates in public and corporate sector giving services and offers to employees working in public and corporate sector. The current condition of the world is very dynamic and has had effects of the UK hospitality industry in a positive as well as negative manner. It has faced changes in operational performances because of the increased prices against the critical economic factors. Hilton has been one of the most recognised names in the hotel industry, with over 92 years of business, it continues to be in sync with the hotel with innovative approach to services and products.
There are three types of market segmentation that The Hilton uses:
- Geographic segmentation
- Demographic segmentation (Bowie, Buttle, Brookes and Mariussen, 2016)
- Psychographic segmentation
Its geographic segmentation mainly focuses on popular locations with target customer segment like in London it is found in Aldwych, Canary Wharf, Bankside, Trafalgar Square and Tower Bridge.
A number of variables like gender, age, income, and lifestyle are used and from this perspective, Hilton targets the middle and senior aged professionals who have a high level of income and who are willing to pursue luxury lifestyle, and then charge for premium prices for the services.
It goes beyond the demographics like how a person behaves, how he feels and thinks using his personality, values and lifestyle. The Hilton involves ambitious people who like to express their perceived status by staying in 5 star rooms offered by the Hilton.
It provides a variety of hotel services all around the world. Luxury hotels, focused chain services like Garden Inn. Loyalty programs like HILTON HONORS PROGRAM is a special program for its loyal customers. It has collaborated with airlines, online platforms, cruises and dining outlets. It gives memberships like the ‘Diamond membership’. The services are maintained by customer relations and feedback.
Hilton’s target customer are the exclusive segment of society. It has always maintained an exclusive price range for its customers like in India a single room costs around 5000 to 35000 per night in the metro cities. Premium prices are calculated with value added services like spa and breakfast services.
Market segmentation used by Hilton Hotels and Resorts
It is located in 103 countries with more than 5100 properties. Starting from the US to the Western countries targeting the exclusive segment. It is now focusing on new emerging markets and expanding their business. With different strategies of marketing and distribution, the group has always focused on the best metro hotels and airport hotels and vacation hotels.
The group uses collaborations with business firms and multi-nationals of their booking on priority. It has also collaborated with payments banks and different restaurants for food provision. Other promotions are done by magazines.
As of 2018, Hilton has been ranked number in the most valuable brands by Brand Finance for the third time in a row.
Hilton hotel has a very friendly environment that invites people to live in their own homes. It is just 4 minutes away from the Thames River and a famous shopping centre. The hotel is very close to the Reading train station and it hardly takes 25 minutes to reach the main airport which is very convenient for customers.
The hotel provides AC rooms which are spacious and have large units. The hotel is decorated which attracts a lot of tourists. It has full internet access also, a large customer desk and comfortable beds.
Similar to the Hilton, Intercontinental Group has rolled out its online environmental tool which helps in managing carbon and energy wastes. Hyatt has an emission footprint. A recent study has shown that hotel chains do a better job in eco solutions.
The hotel group has a huge brand recognition in the hotel industry. The technical innovations has improved consumer experiences. There also has been constant upgradations in business processes. Internally the hotel brags about good employee relations. It was the one of the first organisations to have a certificate from International Organisation for Standardisations for the Environmental Management Systems and Quality. It also give loyalty programs.
There has been a very limited market share despite of a good brand recognition. And the operations have also been affected by the rapid changes in the government policies.
There are various expansion opportunities in market especially in emerging one. There are prospects for introducing new technology and digitized processes in the hotel.
The major ones have been due to the Euro Zone crisis and recession. A volatile currency market is also making it difficult to plan operations. And a frequent change in customer tastes makes it difficult for service offering. There is high risk because most of them are providing good quality services.
The consumer’s voice is louder than ever, in the reputation economy. With a few taps on your mobile screen we can compare room rates, check ratings and make a purchase decision based on other guest’s experiences. It also easy for customers to share their experience like TripAdvisor and other sites as well.
- Tried and tested methods are becoming outdated- Email marketing is considered one of the most effective way to engage with prospective guests but it is destined to fall wayside. Generation y already sees email as boring and for them video content is smarter a technology. Mobile revolution has now truly succeeded. Great enthusiasm and knowledge of technology opens a market for hotel people. The future is very hard to predict. With new technology there are better chances to experiment and have new marketing techniques to continue the trend.
- Less influence on guests than before- TripAdvisor’s website gets approx. 20 million visits every month and many reviews left for the hotels. Each of the hotel review can influence the customer in a positive as well as negative way, with very little input from the hotelier. They also struggle to have control on their profile on OTA’s. Ranking systems also do not guarantee how the guest is being informed by the OTA. Direct bookings is a challenge that’s why.
- Getting on top of the data is a must- It is not always easy to analyse big volumes of data and make the correct choice of decision. The more the data the more strategic you can be. It’s not possible to correctly track a customer’s experience by a buying process. People search on various devices and making it hard to find a sale back to the original source. All this without the overwhelming presence of social media. It is not clear to have fool proof social media plan. It has to be tailored for various social media platforms used
Running a successful hotel business can predict and plan for the future with a planned strategy. According to a research by Deloitte and Doblin, hotels in the coming future will change the typical hotel experience.
- Become a ‘choreographer’- He a virtual person to oversee and look after the guests’ stay. The hotel will be boosted by busy people who will value the convenience above everything. The hotel will try to redefine services to take away any stress from the guest. For many people, travelling is important. Going from one place to another is an important task and becomes very tiring. So, they use tools that make their time on the road better.
- Become a ‘neighbour’- he understands the need of fitting in the surrounding area and becoming its destination. The guests are there to involve themselves with the local area and explore the destination. Many time the hotels are unappealing. They want the accommodation to be people friendly and enriching.
- Become an ‘architect’- which uses the spaces inside and outside to help all the guests. It pays attention who stay for a longer time, and require flexibility. They want a hotel which adapts where they are and where they want to be. The feeling of being at home is important. To design dynamics that gives people to adopt whatever they want throughout their stay.
- Become a ‘curator’- To keep the hospitality is to be kept fresh and enables the guests to try good new things. The hotel has to know that he has many guests and change their mood and mind set. They need an environment to support with their desire to engage with new lifestyles and socialise with new personalities and when they want to spend their time to rejuvenate and unwind.
References
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