IMD-5-0696 © 2006
Walsh, John; Ogunsulire, Mope
In 2001; by taking advantage of its present leisure properties; Hilton International set out to develop a new resort brand; to capitalize on the growing popularity of resort holidays. The case contemplates the challenges faced by the hotel chain in building the brand and developing the new product. Among them: a top-category; but “stuffy” brand; unfavorable understanding among commerce associates; a small marketing budget for the new merchandise; consumer distrust of resort vacations; due to inconsistent levels of quality; communicating; service and tasks which vary from company to company and from country to country.
Promotion; the new brand; and Philippa Gould; Hilton’s director of product development; had to wrestle with some essential questions with regard to developing. Should Hilton go for one global resort brand; or keep the status quo with resort hotels? If found a fresh brand; should it retain an organization with the Hilton name; and was it essential to include the word “resort” in a brand new brand name? Could Hilton optimize supply of the product; given its indifferent relationship with the commerce?
Subjects: Hotel; Leisure; Travel; Tourism; Resort; Hilton; Branding; Holiday; Vacation
Settings: Global; Travel and Tourism; Leisure; Hotels; $122.9 million revenues in 2004; 2000-2004
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