HILTON HOTELS: BRAND DIFFERENTITATION THROUGH CUSTOMER
RELATIONSHIP MANAGEMENT
SECTION-A
GROUP - 6
DEEPANSHU AGARWAL
AVIRAL SANKHYADHAR
PUNIT VERMA
NAMAN CHAHAL
ANTONY LAWRENCE PULIKOTTIL
RAGHAW KHETAN
SUMMARY:
Q1) What is Hilton’s core business?
Ans. Hilton corporation is nearly a 100- year- old global brand consisting of full- service
hotels and resorts all over the globe. The brand had its humble beginning in 1919 as Mobely
Hotel in Cisco, Texas under the guiding leadership of Conrad Hilton, Hilton is one of the
biggest players in the world lodging industry, with a presence in 78 countries. The company
follows a method of portfolio diversification that gives it a presence in each segment of the
lodging industry, ranging from ultra- luxury hotels like “Waldrof Astoria hotels” with its
timeless architecture and uniqueness, “Homewood Suites” giving traveller homelike hotel
experience to moderately price upperscale hotels like “Hamptons”(Exhibit 5). An
amalgamation of various brand postioning statements of Luxury, Full service, Select service,
Extended Stay Service, which consist of 8 brands namely Waldorf-Astoria, Conrad
international, Embassy Suites, Doubletree Hotels, Hilton Hotels, Homewood Suites, Hilton
Garden Inn, Hampton Inn has bought loyalty of customer’s under its umbrella brand Hilton
Hotel Corporation.
The Hiltons having such a large portfolio diversification in the lodging industry it has opted
for self -owned and franchising model with the real estate owners to reduce capital
expenditure in this highly capital intensive industry. Exhibit1shows us the extent to which
Hilton has taken this franchising and self- owned model where they own only a total of 54
properties while they have franchised 2390 properties amounting to a total of 2906 properties
along with 462 managed properties. The significant amount of total properties carrying the
Hilton brand portfolio are franchised. Hilton with its various brand portfolio and rooms
amounting to 4,95,217 can cater 100 million room nights in the U.S alone which generates a
total of 11378978270 $ as room revenue as shown in Exhibit 2. Hilton’s are expecting to be
the first choice of world’s traveler by projecting it as a global brand capable to cater any
segment of the industry. To achieve this goal the company has also intertwined information
technology with the brand's culture to cater a brand promise, which in turn has reduced its
cost and has increased its revenues.
Q2. Evaluate the performance of the Customer Really Matter Initative?
Ans. Hilton CRM was launched in 2002 with the focus of enchancing the value of its
portfolio and ensuring consistency of delivering each brand’s promises. Hilton’s CRM uses
the technology to give solidify its relationship with their best customers. Hilton CRM is
based on OnQ which consolidated distant customer data to produce comprehensive arrival
reports. Hilton OnQ is from 100% internal source and has 7 Unique Guest Experience as seen
in exhibit 3 which also became their competitive advantage to competitors. Focusing on
Hilton’s four four category of best guest has fostered a closer relationship with the best guests
through their lifecycle with Hilton brand. Recognition, personalisation and customer analytics
helped in regaining the customers trust after the brand has made any mistake or a has problem
occurred.
Segmentation of customers, sub brands offering corresponding need of each group and
strategies. Segmentation done through customer principles - Interaction Frequency best
shows customer’s potential value and predicts cooperate possibility, Check in Times
recognizes most loyal customer and Customer Value recognizes most profitable customers.
Segmentation through customer is is based on Hilton’s four category of best guest – The 8
million active member of Hilton Honors program, 4+, where individuals who stayed 4 or
more times in a year, Fast Rez where individuals sign up for online reservation account and
local VIPs. The three main sub brands of Hilton are Homewood Suites: target customers for
a homelike environment while travelling, Hilton Garden Inn: target customers who are
smart, productive and practical and Hampton Inn: highly value customer satisfaction.
Segmentation through technology infrastructure – Recognition where customer is feel being
recognised and welcomed, Personalization where personalize customer’s personal needs and
Customer Analytics which quantifies customer data and make quick reactions.
Delivering of CRM in Hilton is done by recognizing guest at reservation, print guest arrival
report every morning, pre assign guests to the rooms that were prepared according to the
customer needs and The Satisfaction and Loyalty Tracking (SALT).
Hilton CRM is successful as it ensures the rapid expansion and customer service delivery and
from exhibit 1 and 2, we can clearly identity Hilton’s hotel portfolio generates more profits
and revenue than its competitors.
