The Hilton Hotels Corp. Its success and marketing solutions for it


An essence of marketing in the industry of hospitality. The role, place of hospitality in the sphere of services. The modern tendencies of development of the world industry of hospitality. The marketing concept, franchising, development of a new product.

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    • An essence of marketing in the industry of hospitality
    • The role and place of hospitality in the sphere of services
    • The modern tendencies of development of the world industry of hospitality
    • Database and data analysis
    • The marketing concept
    • Physical evidence
    • Franchising
    • Development of a new product
    • Marketing solutions in virtual space
  • According to the World Tourist Organization (WTO)there are for about 16 million hotels in the world, and 20 % of them are members of the hotel networks. A network, as a foreign practice shows, is the most effective way of managing in hotel business.
  • Using the results of its researches, Russian Inform Agency RosBusinessConsulting made «the top-300 of the world hotel networks». On the sixth place in it there is Hilton Hotels Corp. - a network, to which my work will be devoted.
  • To make the research of the hotel industry I decided because my future profession will be connected to this area and the given subject is most interesting to me. Today the industry of tourism is one of the most developing fields, involving to itself a lot of attention from researchers and also a big amount of investments from businessmen.
  • I decided pay my attention to Hilton Hotels Corp., firstly because this chain is one of the first in the world industry of hospitality, therefore a lot of its successful marketing inventions will subsequently be used by many other companies. Secondly, for today it includes 2 173 hotels with the total of number of rooms 348 483 in 80 countries of the world, and everything began with the small hotel in a provincial small town in Texas. And it was interesting to me, how this company involved in itself such amount of clients (by he way many of them are constant) and began to be considered as one of the best international networks of the first-class.
  • Thus, my work will be devoted to the research of marketing methods of Hilton Hotels Corp., many of which were invented in the beginning and the middle of the 20 century when the theory of hotel business did not exist yet. Also I will compare these methods to the theoretical ones which exist for today.
  • The industry of hospitality is one of the largest quickly developing branches of economics. Mainly it happens due to the social, economic and political progress - for the last few years tourism became accessible to wide amount of people. At the same time with the growth of the general number of tourists the industry of tourism and its basic component - hotel sector - started to develop. For many centuries hotel business existed in different models: from family ownership to the participation in the international hotel networks. An example of the most productive ownership in tourism is a creation of the hotel corporations.
  • The given system of managing promotes creation of a lot of advantages which allow the tourist enterprises to raise a quality of tourist's product in the, to diversify the offered services within the segment of the market and to increase an individualization of service of consumers.
  • An integration of hotels in chains with an establishment of the united standards of service and centralized offering of some services by hotel, including booking places, material equipment, safety and so on, reduces the costs for management and raise the profitability of the hotel enterprises.
  • A management of hotel, work with people, technologies of booking, reservation, a professional training for administration and many other things are the integral part of hotel business all over the world. In our country because of the lack of good hotels of the European level this business is not so developed. The main players in the market of Russia are also the large western administrative companies in the sphere of hospitality.
  • Today Hilton Hotels Corp. starts to enter on the Russian market, going to open 25 new hotels. “Leningradskaya” in Moscow will become the first Russian Hilton hotel. Its owners have already signed the contract on purchasing of the Hilton franchise for this hotel.
  • But on the international scene this hotel chain exists since 1925 and it is considered to be one of the best networks of the first class. At the same time it is also popular among middle class, following its motto: «a guarantee of elite luxury with the accessible service of high standard quality».
  • A network Hilton Hotels Corp. created a big number of new marketing decisions for attraction the greater amount of visitors. For example, exactly the chain Hilton was the first who began to use the marketing conception for managing hotels that is the standard today.
  • Also many clients choose Hilton for practical realization by the company of one of the concepts «seven P's»: physical evidence.
  • The working out of a new product is a risky step for many companies, but Hilton Hotels Corp. succeeded in it too. For today Hilton is known as one of the leaders not only in the hotel business, but also in the gambling industry.
  • Another important decision (first of all for the clients) was an integration of Hilton in the virtual space. The clients of Hilton Hotels Corp. became the first who had an opportunity of receiving the information about all hotels of the chain, booking places in hotels and air tickets through the international databases in the internet.
  • Thus, in the project work I will look at the most important sides of marketing policy of Hilton Hotels Corp. without which this hotel chain would never get today's popularity and trust among the clients.

An essence of marketing in the industry of hospitality

Marketing of services is a process of development, promotion and realization of the services, focused on revealing and satisfaction of specific needs of clients. The main task of marketing of services is to help the client to estimate the enterprises and its services.

Considering marketing as the basic market concept of management in tourism and hospitality, it is necessary to note that tourism in its basic characteristics has no big differences from the other branches of sphere of services, therefore all basic things of the modern marketing of services can be used in tourism and hospitality.

At the same time in tourism there is its own specificity that differs it from the other forms of production and trade of services. A realization both of services and goods (according to experts, the share of services in tourism makes 75 %, and of goods - 25 %), and a special character of consumption of tourist services and goods in a place of their manufacture (mostly in the certain situation) takes place in this sphere.

In world tourism the result of activity is an offer of a tourist product. Actually we can say that the tourist product is the final service, satisfying one or other needs of tourists and has to be paid from their side.

Alongside with general characteristics of services the tourist product has its distinctive features.

Firstly, the demand for tourist services is extremely elastic with respect to the level of income and prices, but in many cases it depends also on the political and social conditions.

Secondly, in connection with seasonal fluctuations of demand there is a so-called phenomenon of saturation. As a result it is possible to allocate well defined tourist zones. For example, using the factor "sun - sea" - resorts of Cyprus, Spain, Bulgaria and so on.

Thirdly, the supply of tourist services differs nonflexible manufacture. They can be consumed only directly in a place of their manufacture. The hotel or the airport can not be transferred at the end of a season in the other region. They can not fully adapt in time and in space to the change of demand.

Fourthly, the tourist product is created by efforts of many enterprises, and each of them has their own methods of work, specific requirements and various commercial goals.

Fifthly, a high quality of tourist product can not be achieved if there are even insignificant weaknesses because a service of tourists consists of these small details.

These specific features of a tourist product render an essential influence on marketing in tourism. Today there is no single definition of tourist marketing. If to look at the definition of concept the tourist given by the World Tourist Organization, French experts R.Lankar and R.Oll'e say that tourist marketing is a series of the basic methods produced for the research, analysis and solving of existing problems. The main things on what these methods should be directed:

- the revealing of opportunities of the most full satisfaction of requirements of people from the point of view of the psychological and social factors

- a definition of ways of the most rational management in the tourist or...