The marketing issues addressed here are focused on how to draw more consumers from other gambling casinos, and how to make Hilton a resort destination. Two-thirds of Hilton's total operating earnings in the early 1990's were derived from the four casinos they owned in Las Vegas, Nevada. Expanding on this idea will ensure the hotel chain firmly plants its feet in the entertainment and resort business (Hilton Case Study). By investing massive amounts of revenue into developing their gaming division, the Hilton will become a destination resort that would encompass of all the guest's needs to keep them interested staying within the confines of the resort.
Some considerations include how Hilton would get its market share of the billions of dollars in casino revenues. The percentage of gambling versus side attractions will influence the profit margins, depending on how much focus is placed on each area. The hotel chain can also strive to increase its overall occupancy rate of seventy percent while continuing to set the industry benchmark (Hilton Case Study).
In researching how to improve marketing to attract customers, we must first look at where the Hilton stands today. Second, we must analyze what has worked in the past and see if we can apply past practices into the current market. Third, we shall look at how the competitors are more effective by looking at their gaming plans, marketing structure, customer's spending habits and dollar/cost value based on guest surveys.
Hilton entered the gaming market as an attempt to compete with the other big hotels for the gambling dollar. Investments in renovation and expansion caused Hilton to over- extend. Although the investments were needed to compete, the hotel chain felt it needed to lure big money to its locations, and extend credit more than usual. Heavy hitters receive this...