Service Management and Target Market Strategy: A Case Study of Hilton

This report provides an analysis of Hilton Hotel's service management, focusing on its target market, service characteristics, and overall strategy. It identifies the hotel's target demographic as high-income individuals seeking luxurious experiences and explores aspects like service heterogeneity, intangibility, and perishability. The report also examines Hilton's image and service strategies, including its use of various platforms for advertising and its offerings in clubs, restaurants, transportation, and accommodations. Key challenges such as competition from other hotel groups like Marriott, demotivated staff, and evolving customer demands are discussed. The report concludes with recommendations for Hilton, including improved resource management, staff training, and continuous market research to adapt to changing customer needs. This document is available on Desklib, a platform offering a wealth of study resources for students.

Service management
HILTON HOTEL

ABOUT HILTON HOTEL
• Hilton Hotel & Resort is a global
hotel chain brand under the
flagship name Hilton
• By the end of 2017, Travel
magazine reported that the brand
operated more than 570 hotels in
over 85 countries.
• Founded in 1919 by Conrad Hilton,
TARGET MARKET ANALYSIS
• Geographic – Mainly targets the
tourists, national and international
group
• Demographic- Mainly targets the
high income people from the upper
class . It tries to attract the
luxurious lifestyle seeking people
(Dolnicar and Leisch 2017) .
• Psychographic - Focuses on the
high class mentality oriented people
.

Service characteristics
• Heterogeneity - Hilton
hotel tries to provide
similar kind of services
and maintain their
standards but still there
is heterogeneity in
service provided to the
guests as it varies from
staff to staff .
• Intangibility - Hilton
service strategy aims at
providing world class
facilities to their guest to
provide them an overall
excelling experience to
build a strong customer
base.
• Perishability- Services are
perishable because it
cannot be stored for
selling or using it for the

Service strategy
• Image Strategy - The current
image strategy used by Hilton
hotel using different platforms
to advertise about the hotel
and it’s services. Hilton hotel
is using different innovation in
order to provide the
customers with the best
services all over the globe and
satisfy them in every possible
way (Erdem and Jiang 2016).
• Service Strategy - Hilton hotel provide
different kind of services such as,
clubs, restaurants, transportation,
accommodation, and many other
services. Hilton also organizes many
other services such babysitting, beauty
salon, meeting rooms, office rental,
video conferencing etc (Huang and
Rust 2017) .

challenges
• competition,
demotivated staff,
technology, focusing on
single individual etc.
• Marriott, Hyatt and
Intercontinental hotel
groups and many more
competitors . Among all
these hotel groups,
Marriott is one of the
biggest and toughest
competitor for the
Hilton.
• customers’ behavior
and demands change.

Recommendation
• Hilton can hire a great team
for proper Resource
Management
• Hilton should work on those
features in which they lack.
They should train and
educate there staff regularly
to keep them aware of
changing trends and service
strategies in the hospitality
industry
• Hilton Hotel should
constantly update their
knowledge about the target
market’s new needs and
requirements

Reference
Dolnicar, S. and Leisch, F. (2017) Using segment level stability to select
target segments in data-driven market segmentation studies. Marketing
Letters, 28(3), pp.423-436.
Erdem, M. and Jiang, L. (2016) An overview of hotel revenue
management research and emerging key patterns in the third
millennium. Journal of Hospitality and Tourism Technology, 7(3), pp.300-
312.
Huang, M.H. and Rust, R.T. (2017) Technology-driven service strategy.
Journal of the Academy of Marketing Science, 45(6), pp.906-924.