Hilton Hotels-Case Study Essays

1039 Words Jun 21st, 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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For instance, an increase in the cautious business spender, price-sensitive traveler would prompt a possible expansion of the mid-priced segment to accommodate and serve both work-week business travelers and weekend vacationers.
As pursuing the gaming market is relatively new to The Hilton Hotels, an additional strategy would be to analyze the competition and learn from their pitfalls. This would enable The Hiltons to make sure that their prices are competitive and that they respond to rival marketing campaigns with their own initiatives. This knowledge can create marketing strategies that take advantage of competitors' weaknesses, and learn ways to improve their own business performance. These weaknesses may be in the competitors' product range or service, marketing or distribution, even the way they recruit and retain employees.
Several large hotels and casinos have the bulk of their rooms crowded in the upscale hotel market. The three main competitors for Hilton Hotels are:
• Mirage and Excalibur casinos as they upgrade their casinos to be competitive.
• Westin and Sheraton hotels are actively expanding their network of hotels and more price point competitive.
• Economy hotels are attracting the middle to budget class travelers. Lower prices for bare basics are becoming more popular.

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