Savannah has over eight years of hotel management experience and holds a master's degree in leadership.
Background with Hilton Hotels
There are several large hotel brands that stand out, such as Marriott, Hyatt, and Hilton. As a traveler, you may choose one over the other, or you might stay at a different one depending on where you're traveling to. In this lesson, we'll focus in on Hilton Hotels. Hilton Hotels & Resorts is made up of different hotels that accommodate both business and leisure travelers. Hilton has over 570 properties in 84 countries. The brands that are included in the Hilton Hotels family are the original Hilton Hotels and Resorts, Waldorf Astoria Hotels, Conrad Hotels & Resorts, Doubletree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Homewood Suites, and Home2Suites. All of these hotels carry the Hilton name but offer different amenities and perks that reach all travelers. We'll now take a look at the strengths, weaknesses, opportunities, and threats of Hilton Hotels.
Hilton Hotels' Strengths
First we'll take a look at Hilton Hotels' strengths. Maggie is on a road trip, and she sees a Hilton hotel. She recognizes the logo and the name of the hotel, so she decides to stop and stay at this hotel. One of Hilton's biggest strengths is their brand recognition and reputation. Travelers know the brand name and know it can be trusted. Hilton has been around for many years and has always been well known in the hotel industry. For example, Hilton has a satisfaction guarantee at all of their properties. If a traveler is not satisfied, then they are entitled to get their money back. This backs up their reputation and makes travelers want to stay with them because they know they will receive great service.
Another strength of Hilton Hotels is its diversity, or large amount of variation, in brands. As listed, there are several hotels under the Hilton umbrella, and there is a type of hotel for every traveler. The Hilton Hotels and Waldorf Astoria are for leisure and upscale travel. They also have brands for business travelers that include Hilton Garden Inn and Hampton Inn. Homewood Suites and Home2Suites cater to long-term stays. Hilton Hotels are able to hit different market segments by having such a diversified brand.
Hilton Hotels' Weaknesses
Now that we've glanced at the strengths of Hilton Hotels, we will look at their weaknesses. The biggest weakness that Hilton Hotels faces is due to their globalization, or their entry into the global market. Operations at their properties can vary due to having hotels in so many countries. There are different cultures and government policies in each country that affect the operations. This makes it harder for Hilton Hotels to run a consistent global business. For example, you might experience different amenities at Hampton in the United States than you do in South America.
Also, Hilton was late to expand into other countries. For a long time, the company had a majority of its hotels in United States only. This has made it more difficult for Hilton to break into the global market segments, and they do not have the experience in those different countries. Overall, the biggest weakness Hilton has faced is, in large part, due to its late global emergence and the challenges that come with that.
The Opportunities and Threats
Now let's take a look at the opportunities Hilton Hotels has in the future. First, Hilton has picked the right time to start expanding globally. There will continue to be rapid growth in emerging markets in other countries. Other countries are developing their infrastructures and improving economic conditions, which will make it easier for tourism to be successful.
Another area that Hilton will be able to break into is the green traveler segment. Travelers are wanting more green tourism, and it has become a trend. This is an area that Hilton can implement in their new and existing hotels in order to gain this market share.
One threat that Hilton Hotels faces is the increased competition in every market. The other big name brands, such as Hyatt and Marriott, have the same types of hotels in each market. They're becoming more similar in regards to the amenities they all offer, and are more competitive than ever when it comes to price. This will make it harder for Hilton Hotels to dominate any one market.
Some markets have seen a decrease in business travel in the past years, which can also be a threat. Business travel can be quite costly for companies; they look for opportunities to reduce it as much as possible. Also, with the increased use of technology, business travel is not always necessary.
Hilton Hotels is a widely known hotel brand that is found all over the world. The strengths of this hotel brand include brand recognition, reputation, and brand diversity, or the variety of different choices. The weaknesses of the hotel brand include late entry into the global market, also known as globalization, and differences in operations from country to country. The opportunities that Hilton Hotels can embrace are to continue expanding globally and breaking into the green tourism market. The biggest threats the brand is up against are increased competition in every market and a decrease in business travel.
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