Hilton aims for balanced product distribution in 2012

November 22, 2011 | Hotel Marketing

Hilton is changing its philosophy to understand that guests today are booking hotel rooms across more touch points. The company's question is shifting from ‘Where do guests book?’ to ‘Where are they making their decision?’ and that third parties are an important part of that decision process.

Hilton has formulated a four-pronged approach to distribution:

1) Direct channels must be ultimate truth and offer the best rates;
2) the entire portfolio of hotels must operate as a single system, otherwise the brand will appear schizophrenic;
3) suppliers can’t be “pennywise and pound foolish” about channel economics; and
4) third parties will be given inventory “once the hotel has its own house in order.”

To accomplish this distribution strategy successfully, Hilton will embark on a handful of new initiatives in 2012. The company will increase spend on direct channels by more than US$100 million and remove the revenue management responsibilities from the individual hotelier by rolling out a brand-wide revenue management service.

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