An Analysis of Factors That Differentiate Hilton Hotels from Rivals

This report investigates the factors that differentiate Hilton Hotels from its competitors within the hospitality industry. It begins with an introduction to the competitive landscape, highlighting the importance of differentiation for business success. The report then provides background information on Hilton Hotels, including its history, global presence, and brand portfolio. The core of the report addresses the research question by examining key differentiating factors such as product quality, pricing strategies, and online marketing efforts. The analysis compares Hilton to its main competitors like Hyatt, Marriott, and others, emphasizing how Hilton's focus on quality, price, and online presence contributes to its competitive advantage. The report concludes by summarizing the key findings and emphasizing the importance of these strategies in maintaining Hilton's position in the market. References to relevant academic sources are included to support the analysis.

Developing Academic
Literacy - Task 3

Contents
INTRODUCTION...........................................................................................................................1
BACKGROUND INFORMATION OF THE COMPANY AND INDUSTRY.............................1
ANSWER TO THE RESEARCH QUESTION...............................................................................2
What are the factors that differentiate Hilton hotels from its competitors?................................2
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

Topic: To investigate the factors that differentiate Hilton hotels from its competitors
INTRODUCTION
In a competitive market, each and every business organization wants to make their position
or image unique with the aim of improvising its demand in market. This is the reason that
organization are widely concern over improving the performance ability to attain competitive
success. For this, implementing unique and innovative ways in managing unique products as
compare to its competitors. It can be assist in improving the changes of inviting more and more
people towards its services (Hu and Trivedi, 2020). With the assistance of this, organization can
generate larger profitability from its rivals. Current report is based on the Hilton hotel, is an
American multinational hospitality industry that operate their business in over the world with the
aim of attaining competitive advantages from its rivals at wider level. Mainly, the hotel was
founded in the year of 1919 by Conrad Hilton. Company focus on keeping their image
competitive by including innovative ways sand marketing activities. This will directly contribute
in increasing the profitability level and at the same time also established its competitive image.
BACKGROUND INFORMATION OF THE COMPANY AND INDUSTRY
Hilton Worldwide Holding Inc., is a famous American multinational hospitality company
that operate as well as franchises a broad portfolio of hotels and resorts in over the world. This
company was founded by Conrad Hilton in May 1919 for attaining competitive benefits at
market place. Along with this, portfolio of Hilton hotel includes around 6215 properties along
with 983465 rooms in approx. 118 countries and territories with including 690 that are managed.
Hilton has 18 brands across different market segments that assist in serving its services in
worldwide and also make their market positive very competitive. In addition to this, the primary
focus of Hilton hotel is to increase their customers base analysing their actual needs and wants.
This can be assist in managing positive and healthy relation with them. For attaining the same,
company keep their product line more unique and different that capture customer’s attention over
there.
Furthermore, Hilton hotel deals in hospitality industry in which number of competitors are
operate their business along with more uniqueness (Su and Reynolds, 2019). In order to compete
them, Hilton analysis the marker trends and customer’s behaviour so that they easily serve its
services to its visitors accordingly. This can be beneficial in increasing its profitability and also
1

enhance the competitive edge from its competitors at UK market place. By keeping their its
accommodation services affordable and unique, Hilton hotel can increase customers positive
experience. This will provide assistance to company in making their brand image more
competitive in front of its rivals.
ANSWER TO THE RESEARCH QUESTION
What are the factors that differentiate Hilton hotels from its competitors?
According to Kim and et. Al., (2020), Now a day’s, competition in hospitality industry is
majorly high as there are number of companies operate their business with high quality of
services. This is the reason that competing rivals is an important concern for hotel to sustain in
market place for longer period of time. For this, company focus on making their entire process
more unique and effective so that best services can be easily delivered to its visitors as per their
needs and wants. Mainly, differentiation allow company to provide superior values to its
customers as per their demand and at an affordable price. Therefore, it is significant for business
to create win- win scenario that can contributes in boosting the overall profitability and viability
at competitive market place. In addition to this, competition is more important for every business
organization because it enable company to determine their unique and specific traits that are
assist in appealing to customers. By identifying as well as harnessing all the traits will support
company to promote or market its activities more effectively and at the same time also bring in
new customers. This can be contributing in increasing the possibilities of establishing its
competitive image. If competition is high in market, then it boosts to innovation as hotel find
new and unique ways to make more effective process to serve their services to visitors as per
their demand. By this, hotel can attain positive experience of visitors and make them loyal
towards its services as well.
Performance of Hilton in UK
Hilton hotel corporation is a famous lodging company that spread their business
worldwide with the purpose of attaining competitive edge. In UK, Hilton is a fastest growing
company because of its services which delivers to the market place. It has experienced
multinationals long term development and also formed a kind of the sound human resource
management. Along with this, Hilton hotel focused on the growth business by expanding their
share in the global hotel industry. For this, company provide high quality of services to its guest
2

in order to make them satisfied and loyal towards the company products and services. The
company operate their business through two segments including management and franchise and
ownership. In this regards, the management and franchise segment includes all the hotels which
manages for third party owner and other side, franchised hotels operated by someone other than
the company (Asadi and et. Al., 2020). Furthermore, Hilton hotel is also having their award
winning guest loyalty that support and lead in increasing its customers base in market. This
program generates significant repeat business by rewarding their guests and also retain them for
longer period of time. It supports company in increasing its profitability that contributes in
capturing larger market share form its competitors.
Rivals of Hilton Hotel
Hilton hotel is one of the leading hospitality company that provide accommodation
services to its customers at worldwide level. In this context, there are various competitors that
give strong competition of Hilton hotel like, Hyatt Hotel & Resorts, Marriott, Omni Hotel &
Resort, Holiday Inn, Fairmont Hotel, Renaissance hotel and many more. All these are given
strong competition to Hilton in relation to its product quality, marketing activities and many
more. Thus, it is significant for Hilton to make their marketing activities strong and efficient so
that competition can easily have managed and also improve its performance level at competitive
market. Basically, Hilton has appropriate distribution strategy that assist in making them
available in market so that customers can easily buy products and services. As Hilton serve
worldwide and also serve guest operating around more than 745000 rooms in more than 100
countries and territories. Along with this, distribution strategy heavily relies on information
technology and over the internet in different formats. Mainly, the official website of company
offers an effective platform for services distribution because it is supplied along with a wide
range of features and capabilities. As it provides assistance to its customers like easily booking a
room, proper planning events, scheduling meeting and booking airport pick-ups. In addition to
this, primary reason for selecting internet platform as the base of Hilton hotel distribution
strategy related to wide range of associated with internet. This can be contributing in increasing
customers base by influencing to purchasing products and services in advances. With the help of
this, Hilton hotel can compete their competitors and at the same time also increase their marker
share as compared to its rivals.
Factors that make Hilton different from its rivals
3

It is important for each and every business organization to compete their rivals by using
new and innovative as aspects. Competition in market place provide benefits to company in
increase their values and at the same time also serve best quality services to its targets customers.
In relation to this, there are various factors that keep business organization more competitive as
compare to its rivals by managing their product line and way of delivering their services at
market place. One of the main benefit of competition at market is a boost to innovation within
the business by making their product price and quality more unique so that large number of
customers get attracted towards its services (Wang, Font and Liu, 2020). Innovation and
uniqueness is also providing benefits to customers with new and better products that drive
economic growth and at the same time also increases standard of living. Competition in market
place can also lead business to invent lower cost manufacturing process in which Hilton hotel
serve their products at lower cost. It may assist in increasing their profits and also support in
competing others. In relation to Hilton hotel, it is important for setting their price affordable so
that guest can easily consume its services and improve their positive experience. It may assist in
improving the customer base and at the same time also keep them loyal towards its services. This
will contribute in improvising its competitive image by capturing new and potential customer’s
attention over its services. Therefore, there are some major factors that make Hilton different
from its rivals i.e. Holiday In. as these are as follows:
 Product quality: Hilton hotel is famous for its quality products as it makes them
competitive in marker place. The main focus of hotel is to serve best services to its guest
while they visit hotel as it can be beneficial in providing them positive experience. Along
with this, Hilton hotel also provide quality services for leisure travelers and business
travelers. This is the reason that it provides them competitive advantage and also make
them able to compete its rivals. Furthermore, company also maximize its sales by
offering extra services like bed & breakfast, family fun package and conference services
that may contributes in increasing its profitability and strong customers base. This type of
factor helps Hilton to compete their competitors at market place.
 Product price: In market place, Hilton targeted customers who are belong to an
exclusive segment of society (Cengiz and et. Al., 2019). As the product and services
prices range varies with the value added services along with dynamism services, spa,
restaurant, breakfast and many more. All these are unique in nature and also give high
4

competition to other hotel. Mainly, the brand is maintained by its exclusive customer
segment pay premium tariffs that may assist in inviting more and more guest towards its
services. This can be beneficial in increasing market share and competitiveness at market
place in-front of its competitors. In addition to this, Hilton hotel use premium price and
price skimming strategy to set their products price affordable so that customers can easily
consume its services effectively. Along with this, premium prices of products are also
calculated along with premium cost that capture attention of guest towards its offerings.
By providing premium and affordable price as per market segment also assist in
satisfying their needs and make them loyal. By this Hilton hotel can improve their brand
image in front of its competitors and at the same time also build positive relation with its
guest for longer period of time.
 Online marketing: It is also an important factor for Hilton hotel that help in attainment of
competitive advantage at market place. In this, Hilton communicate with their customers
with the use of online platform in order to make them aware about what they actually
offer in market place. Mainly, hotel use different online platform such as Facebook,
Instagram, Twitter and many more to promote their brand image in market place. Along
with this, Holton hotel has millions of followers in Instagram because of its unique
services and products (Chen, 2019). This is the reason that large number of people are
consume its services to satisfy their needs. It may directly assist in increasing the brand
image and at the same time also develop its competitive edge from its competitors.
Strong online marketing of Hilton directly contributes in capturing customer’s attention
so that they make purchase from the company and also increase its sales as well. This is
why, more and more people are interested in visiting Hilton hotel because of its health
and hygiene environment, cost effective services and unique products quality as well. All
these are promoted by hotel on their different online platform so that more and more
guests are influenced towards the same. This type of uniqueness in online marketing
activities, Hilton hotel attain competitive edge from its rivals and at the same time also
established its positive brand image.
 Talented and skilled workforce: In order to compete in market place, skilled and talented
workers are important because they are the one who contributes a lot in attainment of
competitive success at market place. Hilton hotel having talented and efficient workers
5

who are able to handle their guest politely and provide them positive experience. This is
an effective aspect that help Hilton to compete their competitors. With the help of
efficient staff members, Hilton hotel can beat their competitors by keeping them loyal
towards its services and also build its strong customers base (Choi and Kandampully,
2019). Furthermore, Hilton also provide appropriate training and development activities
to its employee of each department in order to make them able to manage entire aspects
of company. Trained employees are always valuables for company because they give
their huge efforts for accomplishing their targets. By this, hotel can capture larger market
share from its competitors and at the same established its famous brand image so that
large number of customers get easily attracted towards its offerings in market place.
Therefore, all these are the effective factors that Hilton hotel includes in its business
activities as it may support them in capturing customer’s attention by delivering best services in
market place. By providing unique and quality products at an affordable cost may aid in
generating larger profitability at market that make them more competitive in-front of its larger
competitors. Apart from this, company is also responsible for analyzing proper market research
to understand the actual demand of market and customers taste (Eid and Agag, 2020). This is
effective in increasing their customers base more strong and competitive. With the help of this
activity, hotel can also increase their market share as compared to its competitors at wider market
place.
Ways to attain competitive advantage at market place
 Brand image: A strong brand image should help in building the strong position in the
market which helps in providing the benefits to the owner and increase the efficiency and
the productivity of that company. Brand image helps in creating the customer loyalty.
Brand image creates the customer satisfaction about the product and make them
connected in with the people. Brand image creates a tough competition with the other
brands. Hilton Hotel is the world’s highest brand hotel and should provide the best
services to its customers by which people get attracted (Chang and Sokol, 2020). Brand
loyalty of Hilton Hotel helps in building the good connection with them.
 Highly skilled labour: It is help in categorizing and should have advance knowledge and
education and have skills to adapt the changes easily and can work with the new
technologies and should provide them training regarding the work. The labours do the
6

work very effectively and is most liked by the people according to the services provided
to them. Hilton hotel should provide the employees proper training and should build
strong relation with them and provide them proper knowledge so that they can offer the
services to the people properly and make them able to understand the things properly.
 Access to natural resources: The organisation should use the resources in a proper
manner so that there is a competitive advantage for the company by using the resource
efficiently and in proper manner (López-Gamero and et. Al., 2020). Natural resources
are the important for the company as they are they can improve efficiency and require
less cost which help them to invest in the other company so that future benefits can be
taken. Hilton company should use the resource in a proper manner so that the company
can earn the profit and can beat the competitors easily.
CONCLUSION
From the above mentioned report it has been concluded that, every business organization
wants to sustain in competitive market for longer period of time. For this, company is focusing
on serving their quality products and services as per customers’ needs and demand. Along with
this, company also includes new and innovative ways to invite their customers towards its
services so that firm can easily improve their competitive performance at market area. In relation
to hospitality industry, there are various competitors that give strong competition to Hilton hotel.
Thus, it is significant for hotel to keep their services more attractive and eye caching so that large
number of people get easily attracted. Setting product cost affordable is also an effective factor
through which hotel influence number of customers towards its services. This can be beneficial
in increasing its profitability level and at the same time also helpful in giving strong competition
to its rivals. This will provide opportunities to Hilton hotel capturing larger market share from its
rivals and at the same time also improve their competitive image. Furthermore, Hilton hotel
needs to undertake an effective market research that provide assistance in analysing customer’s
needs, market demand, competitors strategy and many more. These factors are contributing in
improving possibilities of sustaining in market place for longer period of time. Emphasize their
strength in market is also an effective way to invite or influence people to consume its services.
This is an appropriate way to increase its competitiveness at market place as compare to its
competitors at market place.
7

REFERENCES
Books and journals
Hu, F. and Trivedi, R.H., 2020. Mapping hotel brand positioning and competitive landscapes by
text-mining user-generated content. International Journal of Hospitality Management, 84,
p.102317.
Su, N. and Reynolds, D., 2019. Categorical differences of hotel brand personality. International
Journal of Contemporary Hospitality Management.
Kim, J., Franklin, D., Phillips, M. and Hwang, E., 2020. Online travel agency price presentation:
examining the influence of price dispersion on travelers’ hotel preference. Journal of Travel
Research, 59(4), pp.704-721.
Asadi, S. and et. Al., 2020. Investigating influence of green innovation on sustainability
performance: A case on Malaysian hotel industry. Journal of cleaner production, p.120860.
Wang, Y., Font, X. and Liu, J., 2020. Antecedents, mediation effects and outcomes of hotel eco-
innovation practice. International Journal of Hospitality Management, 85, p.102345.
Cengiz, E. and et. Al., 2019. Managerial perceptions of cost-system obsolescence and factors
that might affect it. International Journal of Contemporary Hospitality Management.
Chen, L.F., 2019. Hotel chain affiliation as an environmental performance strategy for luxury
hotels. International Journal of Hospitality Management, 77, pp.1-6.
Choi, H. and Kandampully, J., 2019. The effect of atmosphere on customer engagement in
upscale hotels: An application of SOR paradigm. International Journal of Hospitality
Management, 77, pp.40-50.
Eid, R. and Agag, G., 2020. Determinants of innovative behaviour in the hotel industry: a cross-
cultural study. International Journal of Hospitality Management, 91, p.102642.
Chang, H.H. and Sokol, D.D., 2020. How Incumbents Respond to Competition from Innovative
Disruptors in the Sharing Economy‐The Impact of Airbnb on Hotel Performance. Strategic
Management Journal.
López-Gamero and et. Al., 2020. Human resource management as an internal antecedent of
environmental management: a joint analysis with competitive consequences in the hotel industry.
Journal of Sustainable Tourism, pp.1-22.
Choi, Y. and et. Al., 2020. Service robots in hotels: understanding the service quality perceptions
of human-robot interaction. Journal of Hospitality Marketing & Management, 29(6), pp.613-635.
8

9