Marketing Strategy of Hilton Hotels - Case Study Example

? Hilton Hotels - Conrad Hilton Key Words: Hilton Hotels, Clientele, Hospitality industry, Cultural Heritage, Marketing strategy, Introduction Background information Hilton Hotels currently known by the name Hilton Hotels & Resorts comprises one of the famed and thriving hospitality businesses globally. The enterprise derives its name from the late famous and extremely skillful entrepreneur known as Conrad Hilton. However, Hilton due to early Christianity upbringing left almost all his fortunes to cater for charitable activities aimed at alleviating human suffering not only in US but also globally, which is evident to date. Born on 25Th December 1887 in New Mexico, he took over his father’s store at the age of 21 years (Lewis, 2009: p. 231). This acted as a fundamental exposure in the business world though at one time tried his luck in politics while in quest of finding life’s course before embarking on entrepreneurship. Hilton’s deep desire to be “big” according to one his principles prompted him to undertake new ventures after returning from being WWI combatant, deeming the then predicaments that characterized his life were meaningless to what he aspired to achieve in future. The idea of being an hotelier dawned on him while prospecting for opportunities at Cisco, Texas after his father’s demise during the WWI. His intention while in Texas was to purchase an additional bank but he ended up buying Mobley Hotel followed by other similar premises in not only US but also globally, for instance, in China (Lewis, 2009). Consequently, this initial acquisition prompted to buying and development of purchased hospitality enterprises, which he named by his name evident to date. Hilton’s Christianity background nurtured by his mother prompted him to apply persistent efforts in every endeavor he undertook coupled with prayerful life as a staunch Catholic. His strong faith prompted him to give out almost his entire wealth to charity work besides distributing some to close family members as well as his children. Entrepreneurial skills Hilton was a great risk taker evident from the numerous ventures he undertook in foreign states characterized by cultures completely different from those in America. Hence, managing to steer hotel ventures in states like China and Europe, which continued to thrive despite numerous cultural predicaments he experienced. In their study, Butler and Russell (2010) relay one incident where Board members doubted whether Hilton’s concept of establishing hotels in other states other than US would thrive. This quest proved them wrong when Hilton insisted on starting the first hotel outside USA in San Juan, Puerto Rico and became exceedingly successful (Butler & Russell, 2010). Hence, this motivated other hoteliers especially from Europe to venture in the same region though they did not surpass him as they thought. In addition, Hilton was a determined person in all the endeavors and project, which he undertook (Lewis, 2009). He epitomized a person who had the strength as well as strong will aimed at rising above any negative circumstances and emerge successfully. Consequently, this prompted him to venture on his own in most cases utilizing shrewd business knowhow he had leaving his doubters surprised (Lewis, 2009). Using his shrewd business acumen, Hilton ensured all his hotels offered the best contrary to the players he found in every locality he ventured (Butler & Russell, 2010). Hence, prompting large pool of clientele prefer his services in the foreign states where it was difficult to win them due to varied and engraved cultures. This is via serving the clients with what was of great interest to them besides transforming new acquired hotels to have touch of international standards while utilizing local furnishings (Butler & Russell, 2010). Hence, uphold immediate localities’ cultural heritages. Hilton employed unique and effective secrets that would guarantee him success in foreign states, which had utterly diverse cultures than those found in US. This is via recruiting local staff that would comprise strong work force needed in the region besides making the Hotel not to appear alien to the locals due to the heightened standards (Butler & Russell, 2010). This is via utilizing local furnishings as well as materials with the intention of integrating the regions’ cultures in the enterprise. Hence, use the locals’ cultural heritage to market his products internationally. Rationale for the marketing strategies used by Hilton Hotels i. Cross-selling strategy In its quest to maintain clients and have high aggressive edge in the market, Hilton hotels mostly utilize cross-selling technique. Hence, gain strength and trust from their clients who normally deem what they want will be availed in time. This is via proposing varied products besides what they need, hence have wide range of products or services not only in the hotel they are residing but also in other branches. Therefore, to the new clients mostly celebrities while in the foreign regions deem only Hilton hotels avail unique services that are unsurpassed. ii. Utilizing social media The enterprise deems its clients are internet savvy; hence, it has immensely utilized the current technology in reaching its large clientele globally. This is via social networks as well as other applications whose core purpose encompasses informing its clients always about their emergent services and products (Quagliariello, 2010). Venturing in social media (FaceBook, Twitter etc) is evident with the just concluded promotion whose intention encompassed augmenting their clientele by granting 500 tickets for the winners to enjoy free services in their nearest Hilton enterprises in a period of five days. Additionally, the enterprise in order to improve its reputation as well as presence yielded to recruiting extra staff in quest of populating social media with engaging content. This was to present the hotel as being ahead of its competition as well as having surpassed their competitors in the same field (EyeforTravel Limited. 2011). iii. Customers’ satisfaction focus in all their advertisements and services In advertising its products, Hilton aligns their presentation or appearance with the mission they hold, which is to provide the best to every client irrespective of the region one emanates or is residing. Consequently, this strategy has won its large clientele’s loyalty into deeming Hilton Hotels are unsurpassed in the hospitality sector. This is in terms of providing residing and leisure areas for every client to feel comfortable as he or she enjoys what one has paid for while touring the world. iv. Use of award winning programs The hotel utilizes “frequent stay” programs aimed at ensuring loyal client earn points, which at certain amount or draw are capable of securing themselves free accommodations, concert tickets, airline miles or even reduced prices when using the enterprise’s sport facilities (Porter & Prince, 2008). Hence, prompting numerous people preferring their services because they are aware their frequency points would at one time enable them cater for some offers. This is contrary to numerous hospitality enterprises that seem not care about their clientele so long as they have benefited from them (Porter & Prince, 2008). The key programs employed in this strategy embrace Hilton HHonors and frequent-quest program whereby the latter enables one to win the best room to stay in while touring or enjoying other life’s adventures (Porter & Prince, 2008: p. 97). Hilton Hotels organizational culture The enterprise’s culture since its inception to date aligns with the founder’s core intention, which was to tour the world and integrate people’s traditions (Hilton Worldview, 2012). Hence, fostering mutual understanding between states evident in the manner in which the hotels relate with the immediate locals. Hilton Hotels’ culture of embracing and likening itself with the locals has made it to thrive in varied regions where international hospitality enterprises have utterly failed (Hilton Worldview, 2012). The appreciation mode of culture has prompted the enterprise even to redouble their efforts in outdoing local players who do not put much emphasis on maintaining their clientele. Therefore, it ensures its services to the clients entail giving the best contrary to their competitors, which is only through recruiting local staff as a way of associating with that region’s cultural heritage. For instance, one of the philosophies employed in the entire business is “Think Global” but in delivering the required services, it ought to “cook local” (Hilton Worldview, 2012). This is also evident in the manner which Hilton Hotels in the regions they venture focus on furthering both understanding and preserving of cultural heritage. Since, this comprises one of the attractions, which the enterprise utilizes to entertain other global clientele who may be visiting states that they have ventured. The mode of approach facilitates Hilton Hotels to attain bigger market share compared to their local players whereby they not only beat them but also surpass their services in all what they are offering. This is corporate responsibility, which |Hilton Hotels usually do not take it lightly but utilize the strategy to get hold of both international and locals’ admiration besides loyalty (Hilton Worldview, 2012). Hilton Hotels Mode of motivating their employees Telecommuting The strategy not only allows the enterprise to create extra spaces needed to add on rooms for quests but it also offers more flexibility to the employees (Phillips & Gully, 2012). Hence, eliminate monotony that emanates with daily commuting to their respective working places. This prompts them to be more productive compared to when they are operating from their working places. Since, the only thing they have to do is to access their enterprise’s website and work for a specified duration according to varied jobs’ schedules (Phillips & Gully, 2012). Employee training In quest to ensure employees are efficient in all their roles, Hilton Hotels emphasize on training them. Hence, giving them the confidence they need such that they will not leave any room for a client to complain he or she certain staff did not attend to him/her as necessitated. Training in this case encompasses organizing even for scholarships aimed at augmenting their skills and attaining high heights in their respective careers. This implies employees once they join the hotels they will not stagnate. Offering employees attractive discounts This is especially when employees and their families decide to use Hilton Hotels facilities while on their trip or holidays. They offer attractive salaries, which comprises of “paid time off” on annual basis. Employees have wide range of benefits including baking, saving and specialized services contrary to other numerous hoteliers. References Butler, R., & Russell, R. A. 2010. Giants of tourism. Wallingford, Oxfordshire, UK, CABI. EyeforTravel Limited. 2011. Hilton comes up with social media treasure hunt promotion. [online] Available at: [Accessed 18Th July 2013]. Hilton Worldview. 2012. Celebrating cultures is at our core. Viewed 18Th July 2013. . Lewis, L. T. 2009. Living life consciously. Bloomington, IN: AuthorHouse. Phillips, J. & Gully, S. M. 2012. Organizational behavior: tools for success. Mason, Ohio: South-Western Cengage Learning. Porter, D. & Prince, D. 2008. London 2009. Hoboken, New Jersey: John Wiley. Quagliariello, K. 2010. Social Media Savvy Helps Hilton Hotel Convert Facebook Fans into Brand Ambassadors. Hospitality technology. [online] Available at: [Accessed 18Th July 2013]. Read More