International Resort & Spa Management

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1.0 Introduction ………………………………………… 2

2.0 Market Segmentation………………………………… 2      

     2.1 Demographic Segmentation…………………… 2

         2.1.1 Income Segmentation……………………………… 2

          2.1.2 Socio-economic group ………………………………3

3.0 Customer Loyalty………………………………………… 3

    3.1 Hilton HHonors …………………………………………3

        3.1.1 Membership Levels……………………………………… 4

4.0 Hilton Hotel’s Policies and Strategies…………………………4

     4.1 Staff Training……………………………………………… 4

     4.2 Hilton Hotel Global Policies ……………………………….5

         4.2.1   Internet sources ………………………………………..5

5.0 Hilton Hotel’s Value Chain…………………………………..5

6.0 Conclusion……………………………………………………..6   

7.0 References List………………………………………………...7 

1.0 Introduction

The Hilton hotel is a worldwide international hotel, the hotel chain markets in the luxury segment with over 3,800 resorts and hotels around the world. (HiltonHotelWorldwide, 2012) In 1925 Conrad N. Hilton opened the first Hilton hotel, following on from his guidance, commitment and motivation today, the Hilton Brand is one of the appreciated names today continuing on from 1927 Conrad had already expanded the Hilton brand to Waco, Dallas and Abilene at the time Texas finest hotels (HiltonHotelWorldwide, 2012). Around the 1940s Hilton began to spread to New York with the purchase of the Roosevelt and Plaza Hotel the success lead to Hilton to become one of the first coast to coast hotel groups in the United States. The successes of Conrad Hilton lead him to appear on the cover of Time magazine and he was also the first hotelier to achieve acknowledgment and in the 1960s appeared on Cover again (HiltonHotelWorldwide, 2012) after the death of Conrad the brand awareness of Hilton Hotels continued to grow and introduce a number of programs for its loyal customers, the program was called Hilton HHonors, this program allowed customers to gain member points and air miles points. In 1995 Hilton Hotel launched its first website giving the access to customer to make hotel bookings and access special offers. In today’s society the Hilton Hotel has become a global success expanding to countries around the world. This report will critically analyse how the Hilton uses its value chain to build up its customer loyalty.    

2.0 Market Segmentation

The process of Market Segmentation is defined by Kotler (2005) “Diving a market into distinct groups of buyers with different needs, characteristics or behaviour, who might require separate products or marketing mixes” It’s important that the Hilton divided their chosen segments into different groups of buyers, since the Hilton is a worldwide there will be a number of buyers who require unique wants and needs. The majority of the Hilton market is luxury segments meaning that they will require and except a high level of service.

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2.1 Demographic Segmentation

The Demographic market segment is based on the different factors in relation to family size, age, sex, family life cycle and income, this particular segment relates with the popular bases of customers wants and needs relating to personality and behaviour (Kotler, 2005) the Hilton hotel segment realise in the luxury segment offering customer luxury goods and services.

2.1.1 Income Segmentation

The process of this segment divides groups into income segments in order to relate with products and service benefit the specific income group. The Hilton Hotel benefit from a range of hotel brands to ...

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