Hilton Hotels Corporation, also known as Hilton Hotels Holdings, has a chain of hotels and resorts in the United States. It is a well-decorated multinational hospitality company headquartered in Virginia, Tysons Corner, USA.
The corporation has over 18 franchised brands (Zeng, 2021). These brands include Tempo, Canopy, Homewood Suites by Hilton, Tapestry Collectio, Curio, Tru, Hilton Hotls&b Resort, Signia, DoubleTree, Embassy Suites Hotel. LXR Hotel & Resort, Hilton Garden Inn, Waldorf Astoria Hotel & Resort, Hampton By Hilton Hilton Grand Vacations, Home2 Suites, and Conrad Hotels & Resorts.
The corporation estimated revenue in 2020 was 4.307 billion dollars, where net income for the chain hotels and resorts amounted to -0.715 billion dollars and has 141,000 workers it manages across the world.
The corporation’s main competitors include Carlson Rezidor Group and Hyatt Hotels Corporation. Other competitors are Marriott, Movenpick Hotels and Resorts, Accor SA, Intercontinental Hotel Group, Hongkong, and Shanghai Hotels and Wyndham Worldwide Corporation.
This paper will address the SWOT analysis of the corporation. It will be focusing mainly on internal and external factors affecting Hilton hotels and resorts corporation brands. SWOT is the acronym that defines organizational Strengths and Weaknesses and Opportunities and Threats (Benzaghta et al., 2021). Thus, SWOT analysis is a method of assessing these aspects of a business. This tool helps analyze an organization’s current position and devise other strategies to become more successful.
After conducting a SWOT analysis for Hilton Corporation. The corporation’s strengths include:
- Having a vast scope of experience in its business operations.
- Having schemes for customer retention.
- A promising and robust property portfolio.
- Effective leadership.
- High levels of customizing their services following technology advancement.
The corporation’s weaknesses are its overdependence on the United States market share of 80%, and having high debt levels. It has invested less in the global market share with less than 20% of the market share. Another weakness is its inflexibility caused by its large size. However, the corporation has opportunities like forming a solid alliance with countries like China and Japan to expand its operations internationally. It can also focus on research and development to get more insights into making their products and service provision more competitive by improving current operational processes to improve efficiency and reduce operating costs. The research and development approach can also help the corporation develop newer products that can help them survive in a competitive environment. Due to its fame and standards, Hilton Hotel Worldwide is prone to terrorism and can also be affected by political instability. The adverse dynamics in microeconomic change and loss of key personnel and talents are among other factors that threaten Hilton Corporation brands.
The corporation should offer a customer loyalty scheme. The program can offer discounted prices, late check-out, free internet access, and digital check-in, among other benefits to customers. The program will also help maintain the loyalty of their customers as it encourages them to book online and earn discounts. The company should attract new customers by giving them points for each pound spent. The corporation brands across the globe present a positive image to the parent brand, thus attracting more customers.
The corporation segments its potential customers to identify and understand their potential customers. They research their competitors’ ventures and understand their prospective customers, and they should also engage in healthy marketing strategies to find prospective customers.
Moreover, since the corporation is the largest in the hospitability business, it operates in 100 countries and territories, offering its extensive hospitality services in over 4,500 hotels. The Hilton brands should be more remarkable in providing excellent services, complimentary breakfast, access to free Wi-Fi, and hotel designs are excellent, to mention a few, and resorts should be more luxurious.
For Hilton Corporation to inspire its renewed confidence and trust in its travels and hotel and resort brands, it must include various insights that can act as pillars. These pillars include product innovation, customers’ connectivity, and creative marketing strategies.
Hilton Hotel Corporation should offer Hilton’s Price Match Guarantee. They should also provide the lowest prices in their services, and in case a customer finds lower prices somewhere else, the corporation should offer the customer 25% off the cost of their stay. The corporation brands should be are everywhere across the globe.
Hilton Hotels should embrace technology like OnQ to deliver their award-winning hospitality. The platform integrates numerous capabilities into one system for hotel sales, reservations, guest services, and other operations. It also applies a premium pricing strategy to cater for the high business profile class and the society’s upper class. Hilton should also use a brand-differentiating approach to make itself promising to its loyal and potential customers. It should also use various online marketing strategies like social media avenues like Twitter and Facebook. Other platforms it can use include Instagram, Tiktok, and LinkedIn to improve its product and services sales and acquire a more significant market share globally. The hotel chains should also make their rooms more convenient and simple because convenience and simplicity attract potential customers while maintaining loyal ones.
The corporation can use the internet for marketing its products and services and encourage customers to book online through Hilton.com or develop a software application customers can use to access its services. Hilton can also launch a global campaign to address how customers can have an exceptional experience with their services compared to their competitors.
References
Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 55-73.
Zeng, L. (2021). Analysis of Hilton Worldwide Hotel Group’s Transnational Operation Strategy. Academic Journal of Business & Management, 3(11).
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