Hilton Hotels-Case Study Essay example

1025 Words May 28th, 2006 5 Pages
In an attempt to become a more aggressive business operation, Hilton Hotels decided to change its strategic direction by venturing into the gaming industry. With this strategy came not only new opportunities but also large elements of risks and competition. In 1994 the growth in the gaming segment declined with gaming operating income down by 7% from 1993. The Hilton Hotels however had a 3% increase in occupancy from 1993. In view of this, it is important to understand market needs and develop marketing strategies in tune with creating customer value for long-term performance. A few of the key issues facing the Hilton Hotels is as follow:
• The need to better target the needs of customer segments
• To customize hotel services based on
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Prices differ from one market to another and from one location to another. Although Hilton brand is widely recognizable, they must offer their products for a price their target market is willing to pay.
Hilton Hotels can also leverage the Internet's growing success in the travel sector by forging distribution relationship with third party Internet travel providers, thereby boosting revenues. They can also identify the consumer behaviors, new trends, e-commerce alternatives of integrating Internet strategy with the brand awareness and driving more traffic to their websites.
The Hilton Hotels marketing strategies should include a mixture of marketing programs in order to reach a variety of customer segments. These strategies should enhance brand recognition, increase brand awareness, broaden the customer base and eventually generate revenues. One promotion example is a guest reward program where guest can earn points that can be used for accommodations, gaming chips and air travel. Also, seasonal discounts given to guest who purchase during the hotels' slow season reward customers who essentially assist in balancing cash flow.
Market Trends
The Hilton Hotels must constantly keep abreast of new trends in the markets. For example, the drop in the U.S. dollar may signify an opportunity for The Hiltons to focus on its traveling international guests. Missing such trends in customer demand could be devastating.
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