Case Study

Hilton revives its resorts (A)

15 pages
November 2006
Reference: IMD-5-0696

In 2001, Hilton International set out to develop a new resort brand, to capitalize on the growing popularity of resort holidays, by taking advantage of its existing leisure properties. Hilton wanted to become the first hotel chain to create a global resort brand, with genuine points of competitive difference, through a Total Resort Experience that customers could trust would be consistently delivered. The case considers the challenges faced by the hotel chain in developing the new product and building the brand. Among them: a top-class, but “stuffy” brand; unfavorable perception among trade partners; a limited marketing budget for the new product; consumer distrust of resort holidays, due to inconsistent levels of quality, communication, service and activities which vary from company to company and from country to country. Philippa Gould, Hilton’s director of product development, had to wrestle with some key questions with regard to developing, and marketing, the new brand. Should Hilton go for one global resort brand, or maintain the status quo with resort hotels operating under the umbrella of the Hilton brand? If launching a new brand, should it retain an association with the Hilton name; and was it necessary to include the word “resort” in a new brand name? How could Hilton maximize distribution of the product, given its indifferent relationship with the trade?

Hotel, Leisure, Travel, Tourism, Resort, Branding, Holiday, Vacation
Field Research
© 2006
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