Hilton hotel brand pay a close attention to, customer profession, family
life cycle, income and socio-economic group. However, they take less
consideration of the customers age, religion, gender and race. The reason for
this is that the Hilton is a offers high-priced products and services which
only these groups mentioned above can afford; bring in profit if the customer
Hilton hotel uses four types of pricing strategy matrix: skimming,
penetration, economy and premium pricing strategies (Dudovskiy,
Selling basic products and characteristic to customers with low budget is
classed as economy pricing.
However, penetration pricing involves offering high quality service on
low price compared to the competitors in order to increase market share.
Price skimming is the opposite of penetration pricing in a way as service
and products are offered for high price than the competition. This helps as the
company caters for more quality conscious customers rather than price. However,
(Parikh, 2011) argues that this strategy can backfire
if competitors spot the strategy. (Nassetta, 2016) also mentions that
price skimming is used by Hilton to associate service or product with
exclusiveness and high quality.
Premium pricing inclines changing high level prices for service and
product that are seen as having excellent quality. With Hilton only owning
upper scale rooms and facilities which are on the upper scale. Hilton can be
classed more as premium pricing hotel; it only offers 4 to 5-star rooms
allowing them to charge at premium price because beyond the rooms it also sell
intangible benefits such as high status and luxury.
In terms of the dining area the Hilton hotel does not
have fixed prices but it more a customer service approach as the staff have
opportunity to upsell.
Seasonal pricing 3.2.1
Hospitality Net industry blogger (Wawira, 2016) talks about global recession effecting
the industry pushing companies to reduce pricing regardless of season. But
Hilton stay with seasonal pricing as it can decrease prices during the slow
periods and increase during the peaks.
hotel places its hotel in prime locations depending on the nature of the hotel,
for example they have 5-star hotels in the heart of the city and also in country
towns depending on the facility the hotel offers.
hotels placing strategy heavily relies on internet as an information platform.
The current website is effective platform for customers to book rooms, planning
wedding and events, meeting and airport pick-ups. Having the internet platform
allows Hilton customers to purchase products within a few seconds.
Hiltons most common incentive is HHonours Programme;
which is offered to potential customers and ongoing customers. This is done to
motivate customers to stay with the brand and not look elsewhere when booking
hotels, this done by offering discounted prices during peak season and also luxury up grade and use of executive
lounges (Robert.C.Lewis, 1983).The use of push
promotion is also used by the hotel, this used by welcoming guests from the
door and escorting them to their rooms in order to make memorable experience to