Hilton Hotel: Business Operations and Marketing Strategies

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This report provides a detailed analysis of Hilton Hotels, examining its business operations, marketing strategies, and future campaign plans. It explores the company's elements, including location, pricing models, and customer segments, while also comparing Hilton with its competitors. The report delves into Hilton's branding and positioning strategies, promotion and marketing tactics, and innovative ideas for enhancing its market presence. Furthermore, it considers the use of integrated marketing campaigns, including advertising, sales promotion, customer relationship management, direct marketing, and social media marketing. The report emphasizes the importance of market research and adapting to consumer demand to maintain a competitive advantage in the dynamic hospitality industry.
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Running Head: Hospitality
Hilton Hotel
Hospitality and Tourism Market
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Table of Contents
Introduction......................................................................................................................................2
Business Operations.........................................................................................................................3
Business Operations.........................................................................................................................3
Elements of Hilton Hotels & Resorts...........................................................................................4
Location & Distribution...............................................................................................................4
Pricing Models.............................................................................................................................4
Customer Segments......................................................................................................................5
Branding and Positioning.............................................................................................................5
Promotion and marketing strategies.............................................................................................5
Future Campaign.............................................................................................................................6
Innovative Idea................................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
Hotel Hilton has developed their effective market image in the hospitality industry and in order
to enhance the hotel’s growth, they adopt continuous improvement in their functionalities. The
first hotel in the name of Hilton was set up in 1919 in Cisco, Texas and today they are present in
more than 85 countries across the globe with more than 570 outlets. And with the wide number
of outlets across the globe, it’s headquarter is situated in Virginia, United States of America.
They provide numerous facilities and services to its consumers in order to satisfy their needs. In
order to make the customer’s experience better and unforgettable, they have adopted the method
of customer feedback and surveys to analyse the issues faced by the consumers and the areas in
which the customers have felt the troubled services from hotel’s management. After analysing
the issues, a quick and prompt response is being provided to its users in order to resolve the
consumer’s queries. Hotel Hilton has always given priority to the consumers as these are quite a
crucial aspect in terms of the hospitality industry. They perform their functions in an adequate
manner and which could help the organization to gain efficient competitive advantage. Building
and maintaining customer relationship management is another crucial segment of the hospitality
industry. Better customer relationship promotes the positive image of the organization and this
also helps them to attain repetitive guest’s appearances.
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(Source: Hilton, 2017).
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Business Operations
Business Operations
Business operation is the method under which all the functionalities of the organization are
performed in order to attain the goals and the objectives. All those activities which help the
organization to enhance their efficiency, as well as the productivity, are known as business
operations. Selling, purchasing, marketing, etc. are such activities which are included in business
operations. These activities may differ from industry to industry. For instance, for a
manufacturing industry, business operations will be different as business operations of
hospitality industry (Aaker, 2010). The main objective of the business operation is to enhance the
organization’s performance through generating income, increasing revenues, etc.
Business Operation of Hilton Hotels & Resorts
Elements of
Hilton Hotels &
Resorts and
Product
Location &
Distribution
Pricing Models Customer
Segments
Branding &
Positioning
Promotion &
Marketing
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Every business starts up with an assumption of long term survival in the dynamic business
environment. Apart from this assumption, organizational management also expects a good return
from the business in order to perform the activities of the business in an adequate manner. In
terms of Hilton Hotels & Resorts, business operations of this organization are so effective and
their effectiveness could also be evaluated for the success of the business. Hilton Hotels and
Resorts believe in customer satisfaction and in order to enhance the consumer’s experience,
organization has adopted various unique and effective strategies for making their experience
treasured. For the same, organization renders various services to its consumers apart from stay
are Wi-Fi, digital check-in, keyless entry, beautiful view from hotel as most of the hotels are
situated nearby to the centre of the city and the Hotel Hilton situated in Downtown is one of the
unique outlets of Hilton Hotel and it was originally named as Effiel Tower (Armstrong, et. al.,
2015).
Elements of Hilton Hotels & Resorts
They are known for providing exclusive services to its consumers and in order to make the
consumer’s experience better, they have chosen limited group of audience as their target
audience. Such as business class people as well as the tourists who love to explore with leisure.
Major elements of Hilton Hotels and Resorts are the activities products and the services offered
by them to its consumers, marketing strategies adopted by them, sales promotions, etc. Apart
from all these things, the major concern for Hotel industry is customer experience and to make
this experience pleasured, management of the hotel has adopted numerous methods. In terms of
improving the consumers’ experience, annoyances faced by the consumers should be avoided on
the priority basis; the premises of the organization should be kept clean and ethical. Along with
this, responsive as well as professionally trained staffs need to be appointed in order to enhance
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the hotel’s performance for meeting the organizational goals and the objectives (Bowie, et. al.,
2016).
Comparison between Hilton Hotel and its competitors:
(Source: Gao, K., 2017).
Hilton Hotels’ group provides various types of services and products to its consumers across the
globe. Stay with the hotel is common in all the outlets across the world, apart from the stay
services; organization also serves good quality food and beverages items. Along with the stay
facility and food items provided by the Hilton Hotels and Resorts for making the consumer’s
experience better, game zone, spa, outdoor and indoor sports, etc. services are also provided to
its consumers. With the consumption of these types of services, consumer’s satisfaction level
reaches to the optimum level (Brandt, Cazzaniga & Hann, 2011).
Location & Distribution
In these terms, Hilton Hotels’ and Resorts have gained the maximum points because their all
outlets have been situated at the most desired and centralised locations of the city. Hotel Hilton
situated nearby to the Effiel Tower, Statue of Liberty are the biggest examples of choosing
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centralised locations for operating their functionalities. The idea of choosing favourable locations
for setting up the hotel business is to attract number of consumers. Apart from this reason,
consumers can approach to the hotel easily and effectively is another big factor for enhancing the
demand of the hotel (Cornelissen & Cornelissen, 2017).
As Hilton Hotels and Resorts serves numerous services to its consumers along with the luxurious
stay, their all outlets do not serve the same type of services that is services offered in the Hilton
Resorts are quite different from the services offered in the hotels. Resorts are built for rendering
leisured services with the adventurous rides and facilities in order to enhance the consumer’s
experience (Gregor & Hevner, 2013).
Below picture shows the outlet in China:
(Source: Hilton, 2017).
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Pricing Models
There are various options are available with an organization in order to select the best pricing
model for selling and a product or services manufactured by them. The cost incurred for
manufacturing the services and the cost incurred to promote the services in the market plus a
certain rate of profit needs to be added for developing the adequate price for the service to be
sold in the market. Hilton Hotels and Resorts have adopted the price leadership pricing model for
setting up the price of their goods and services served to its consumers (Helms & Nixon, 2010).
This type of pricing model defines the usage of the brand name to set up the price for products
and the services manufactured by the organization. In terms of Hilton Hotels and Resorts, they
have built effective goodwill across the globe and due to this; organization is able to use the
price leadership model for setting up the price of the products and the services provided by the
group of hotels. Management has adopted the centralised system and according to this, pricing
model selected and imposed on one outlet will automatically be imposed to all other outlets
(Hermans & Hermans-Konopka, 2010).
Customer Segments
Basically, Hilton Hotels and Resorts have targeted the high income class audience and this is due
to their expensive rates. Most of the services rendered by them are leisure and these types of
services are being included in the expensive price index only. Apart from this, business class
people are also being targeted as Hilton Hotel group is known for providing their high rates. The
most favourable audience for them are business class people and leisure travellers with major
locations (Czepiel & Kerin, 2012).
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Branding and Positioning
Under this method, organization put efforts in order to develop adequate image in the customer's
mind and this could also be known as positioning strategy or branding strategy. Hotel Hilton uses
their own brand name for promoting their newly launched services and products in the target
market for making the positive image in the consumer’s mind. Generally, this approach is being
used by the companies who do not have adequate image in the dynamic business environment
and in order to maintain their effective position, this strategy is being used. The strategies used to
this type of strategies include using taglines, launching various promotional and discount offers,
etc. This helps the organization to gain adequate number of audience (Dighton & White, 2017).
Hotel Hilton uses its taglines, quality of the services rendered by them, feedback shared by its
consumers in relation to their experience with the hotel, etc. for building the adequate image in
the consumer’s mind in regards to the hotel (Huang & Sarigöllü, 2014).
Promotion and marketing strategies
Hilton Hotels and Resorts uses following promotional and marketing strategies for promoting
their products and the services in the target market:
Print medium of advertisement such as newspaper, magazines, pamphlets, board
hoardings, etc. (Johnston & Bate, 2013).
Digital mediums such as social media platforms email marketing, advertisement through
official website of the organization as well as with the favourable social media mediums.
Television, radio, etc. are also being used for spreading the awareness amongst the users
in relation to the hotel's products and services (Draelos, 2015).
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Growth of Hilton Hotel worldwide:
(Source: Securities and Exchange Commission, US, 2013).
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