Hilton Hotels Case Analysis Essay

2223 Words Apr 9th, 2007 9 Pages
The purpose of this case analysis is to address the key marketing issue for the Hilton Hotels. The marketing strategies Hilton should pursue in the hotel and gaming markets will be discussed and recommendations will be made. In addition, the use and implementation of the SWOT analysis will be incorporated throughout the discussion. Information will be provided from the case study and the use of secondary resources for support of the marketing strategies recommended for the Hilton Hotels.

Market Summary

Hilton Hotels is one of the market leaders in the hotel and gaming industry in the United States. Hilton is a well-known and distinguished name in fine hotels across the United States and worldwide. In 1999, Hilton expanded
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Although the cost of entertainment is a significant expense for hotels, "the cost of providing entertainment is justified by its effectiveness in attracting people to the gaming tables and machines" (McDonald, 1998, p. 4). The market is also demonstrating a trend of hotels becoming a one-stop-shop. For example, hotels are not only including room stay but also gaming, entertainment, shopping, comedy clubs, lounges, nail and hair salons and other activities and amenities desired by consumers. This trend is demonstrating the evolution of hotels into destination resorts.

Market Growth
The market has demonstrated an increase in growth over the last decade. Sales for Hilton have also demonstrated a steady increase, particularly once the hotels expanded to include gaming and entertainment. "Competition for the gaming dollar is intense, and the degree of investment needed to be successful is high. Hilton has had to put more than $6 million into renovating the Las Vegas Hilton to keep up with such rivals as the Mirage and the Excalibur" (McDonald, 1998, p. 3). In addition, the hotel market has demonstrated a consistently high occupancy rate, particularly the Hilton hotels. In 1994, "Hilton hotels showed system-wide occupancy of 70 percent, a three-point increase over 1993, while the U.S. hotel industry as a whole had

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