Hilton Hotel Sydney: Distribution, Revenue & Competitor Analysis

This case analysis report delves into Hilton Sydney's position within the hospitality market, examining its competitive landscape and revenue strategies. The report begins with an overview of Hilton Sydney, highlighting its focus on quality, innovation, and consistent customer experience. It then analyzes Hilton's market positioning, emphasizing its target demographics and psychographics, and its diverse brand portfolio. A detailed competitor analysis compares Hilton Sydney with Novotel Sydney and Intercontinental Sydney, evaluating their services, facilities, and pricing. The SWOT analysis identifies Hilton's strengths, weaknesses, opportunities, and threats, providing a comprehensive strategic assessment. The report further explores Hilton's revenue strategies, focusing on data management techniques and premium pricing. Finally, it examines Hilton's distribution channels, including online booking services and potential future reliance on global distribution systems. This report is useful for understanding market dynamics and strategic decision-making in the hospitality industry. Desklib provides similar solved assignments for students.

RUNNING HEAD: HILTON 1
Hilton Hotels
Name
University

RUNNING HEAD: HILTON 2
Contents
Introduction.................................................................................................................................................2
Overview.....................................................................................................................................................2
Positioning In the Market............................................................................................................................3
Competitor Analysis:...................................................................................................................................4
Revenue Strategies:.....................................................................................................................................6
Distribution Channels..................................................................................................................................7
Conclusion:..................................................................................................................................................7
References...................................................................................................................................................8
Appendix...................................................................................................................................................11
Introduction

RUNNING HEAD: HILTON 3
Holton hotels have a huge name in the hospitality industry. The hotels strive to deliver quality
and innovation to its customers. Customers have loved the hotel for years. One main reason why
customers prefer Hilton hotels is due to the similarity of experiences delivered across the globe.
The company makes sure that every customer located across the globe is equally benefited with
the services, comfort, amenities, responsive and caring staff of the hotels. The smart, innovative
and comfy designs add to the unique experience that customers enjoy. The company has stood
for its amazing services and innovation in every aspect of the hospitality experience
(McLaughlin, 2015). Hilton hotel Sydney was established in 1975. However, latter the hotel was
refurbished. Sydney Hilton hotel serves as one of the civic landmarks for the country (McNeill &
McNamara, 2009)
Overview
Hilton hotels Sydney delivers the flavors of Australia. The food, ambiance and rooms’ are
carefully designed to represent the unique culture and trends at Australia. The menu offered by
Hilton Sydney include refreshing cocktails, food menu and beers, for guests to rejoice and to
recreate their amazing experience in Sydney (Hilton sydney, 2019). The hotel offers a delicious
menu for its clients. Breakfast, lunch and dinner menus are carefully prepared and served to
customers. Eating is among the most valued experience delivered by the company. Fresh, healthy
and yummy food adds to the experiences of customers residing in Hilton hotels. Customer
service team is always available to answer queries and to deliver services that customers want.
Spas, relaxing rooms, and finesses gyms are included in the hotels. Customers can contact the
support team at any time and can communicate their desired concerns (Huckestein & Duboff).

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Hilton Sydney is located in the center of the city which is a hub to shopping malls, business
activities and lots of food places. Hilton Sydney creates a unique experience for those who visit
Sydney. The hotel provides spa centers, meetings rooms and bars. The central location of Hilton
Sydney allows customers to reach local destination and attractions much more easily (Hilton,
2019).
Positioning In the Market
The company has its target market based on the specific needs of customers and specific
location. The company has carefully located itself geographically across the globe. The company
in its psychographic segmentation deliver lifestyle and status to its clients. The demographic
segmentation involves targeting professional people have high income that bellowed to old or
middle age groups. The company has uniquely positioned itself so that customers remember
unique services and the name of the company.
The company has adopted different positioning strategies for its different brands. The company
possesses almost thirteen brands that are available in different locations, each brand is positioned
differently. Conrad is positioned as a luxury brand. Canopy represent the lifestyle. Hilton hotels
and resorts represent the availability of full services with unique experiences. Hampton is
positioned to deliver focused services to its clients. Hilton grand vacation represents the vacation
ownership granted to customers to optimize their vacation experiences. Thus, every single brand
owned by the company has been positioned different and as per the needs of the customers
(Dudovskiy, 2016). Overall, the company has positioned itself to deliver luxury, lifestyle,
experience and comfort to customers.

RUNNING HEAD: HILTON 5
Competitor Analysis:
Hilton hotels Sydney have many competitors to compete with. The company tries its best to
ahead of its competitors by delivering the best services it could. Hilton Sydney is beautifully
built and designed. The lobbies and rooms are creative and smart in designs. The executive
lounges provide luxury experience to the executive class. Hilton Sydney keeps their guest above
all priorities. It serves the customers in the best way, particularly those looking for an escape
from a busy professional life (Rathbone, 2016). Hilton Sydney is located near the central
business district. The hotel offers luxury and spacious rooms with amazing views. The rooms
have luxury bathrooms. Every rooms has a facility of television. Some rooms have a working
area for the business class. Three luxury restaurants and bars are located inside the hotel.
Famous facilities include
 Parking area
 Swimming pools
Hilton
Hotels
Luxury
Comfort
Lifestyle
Experience

RUNNING HEAD: HILTON 6
 Restaurant and bars
 No smoking area
 Bar
 Night club
 Spa
Types of rooms offered are
 King rooms
 Deluxe rooms
 Relaxation rooms
 Executive rooms
 Suits
 Twin rooms
Closest attraction include:
 Sydney town hall
 The galleries
 State Theatre
 Queen Victoria building
 Kingsford smith airport
 Opera house
 Harbor Bridge
Few competitors are mentioned below:
Novotel Sydney:

RUNNING HEAD: HILTON 7
These hotels are located across the darling harbor. The hotel has received a 4.5 rating. The hotel
allows its customers to enjoy the comfort and beauty by residing in Novotel hotels that are
located across the best locations of the city. The visitors can view the beauty of the harbor and
skyline at the same time. The hotels allow its customers to enjoy swimming pool, gyms, free Wi-
Fi per device and an amazing ambiance. The stunning location and spacious rooms add to the
valuable experience of customers. Dining rooms are equipped with flat screams. Room and
customer service is available for twenty four hours. The hotel offers following types of rooms
 Deluxe rooms
 Superior rooms
 Executive rooms
 Rooms with the view of skyline
 Rooms with pyrmont view
There are several reasons why one should choose the hotels. The staff members can speak in
English language, booking can be done online and prices are economical.
Nearby locations include
 The harbor side shopping Centre
 Pyrmont bridge
 Australian museum
 Sydney theatre
 Royal botanical gardens
 Sydney aquarium
 Wild life zoo

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Most popular facilities offered by the hotel include
 Free Wi-Fi
 Parking area
 No smoking areas
 Pools
 Parks
 Lounges
 Business suites
 Food services
 Babysitting services
Booking per room starts at two hundred and nine Australian dollar.
Intercontinental Sydney:
The hotel is located in the nineteenth century building. The hotel provides an awesome view of
the harbor side and the opera house. The hotel has received fiver star ratings. The rooms are air
conditioned and centrally heated. Each room has a facility of television and a small bar. The
hotels are ideas for couple. Bookings can be done online. The hotels holds and depicts the rich
heritage of Australia. It is built is a restored and restricted historical treasury building. The hotel
was built thirty years back. The hotel offers luxury to its customers. The stone arcades, glass
atrium adds to the beauty of the hotel.
Most popular services include

RUNNING HEAD: HILTON 9
 Airport shuttle bus
 Gyms
 Mini bars at rooms
 Free Wi-Fi
 Non- smoking rooms
 Parking
Types of rooms offered include
 Rooms with city view
 Executive rooms
 Deluxe rooms with harbor view
 Superior rooms
 Standard rooms
Nearby location include the following
 Museum of Sydney
 Kingsford smith airport
 Wollongong airport
 Quay station
 Justice police museum
 Opera house
 Botanic gardens
 Café Sydney
 Aria restaurant

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Booking start at one fifty one dollar per room.
SWOT Analysis
Strengths:
 Hilton hotels have a strong brand name
 They have a worldwide presence
 The luxury and lifestyle delivered by the company is unmatchable
 Rooms can be modified as per the requirements of customers
 There is a huge clientele base
 A good team of administration and other staff members
 Multiple brands
 A strong and reliable portfolio
 Customization options available against every service
Weaknesses
 Due to the huge size, the flexibility of the company is compromised
 The revenues of the company are depended on the economic state of the country. Good
economic conditions mean that people have a high income. Hilton only targets people
and families belonging to high-income groups.
 Other competitors have covered more geographical locations such as Accor hotels.
Opportunities
 Introduce service for people from the middle-level income group
 Expand services to other countries

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 The company can strategically align with other partners to improve its services
Threat
 There will always be a threat of economic and political instability, such situations will
reap away the profits of the company
 The company faces threats from new entrants particular those operating in local
marketed.
Revenue Strategies:
For hotels to earn profits and to increase their bottom line profits, they must carefully take the
decision regarding the pricing of service. Properly priced services generate huge bottom line
profits for the company. Managers must make a decision carefully. They must keep in mind the
low marginal; cost and high fixed cost that hotels incur. Pricing decision must be precisely made
to maximize revenues (Kotrba, 2010).
Hilton hotels focus on data management techniques to optimize revenue strategies. The company
collects data from various sources, analyzes it and makes precise decisions regarding revenue
management. Data processing allows the company to identify trends and areas that have the
biggest impact on revenues and performance (EyeforTravel Ltd, 2013). Those areas are then
developed to optimize the generation of revenues. For data analysis, the company uses PEAK
proprietary tool. The tool manages data gathering, process, analyzes and presents viable results
for forecasting and decision making (Revfine.com, 2019).
Hilton uses value added or premium pricing strategy the prices charged by the company are
slightly higher than other competitors due to the market segment it targets and the quality it
provides. High prices lead to high revenues for the company. However, the company may be

RUNNING HEAD: HILTON 12
adversely impacted during economic downturns due to its premium pricing strategy (Hilton,
2019).
Hilton Sydney can use following strategies to increase its revenues
Forecasting strategies: these strategies rely on historical data. Data is processed and analyzed to
forecast and predict future trends. Strategies are altered or determined based on the futures trends
in the market. Revenues and profits can be increased by keeping in view the future trends in
hospitality industry. Adding point sale services, online bookings and global booking systems will
enable Hilton hotels to earn more revenue.
Discounts and offers: Hilton hotels can offer discounts and offers to attract more customers
particularly in down season. Such strategies will maintain a constant flow of cash to the company
even in the low season.
Distribution Channels
Hospitality industry uses different distribution channels to reach their customers. Online booking
services are available through the website of the company. Reservation can be done through it.
Some companies conform reservation through emails or phone calls. Global distribution
channels work like a travel agency. The global distribution channels employ agents who guide
customers regarding bookings and reservations to other hotels across the globe. The online travel
agents work as the point of contact between the sales staff and customers. Online travel agents
helps in bringing customers to their partner hotels. Meta search engines allow customers to
reviews and compare different hotels while searching for information at the search engine. Apps
are available on the mobile phones from where booking can be done. Social media allow
customers to browse several hotels before finding the right ones. Customers can read the views