Have Hilton Hotels have gone downhill?

Hilton is a name that is synonymous with the travel industry. Everyone has stayed in a Hilton at some point in their lives. At present the company is going through a process of change. Everr since Hilton rapidly expanded their portfolio of brands to take in Doubletree, Hampton Inns, I’ve wondered if it might be diluting their original concept. Although the goal seems to be to defuse the brand through as many different locations, it’s looking as though the centre can’t contain all of these high and low end variations of Hilton.

Take Hampton Inns. The brand on the face of it would be a good entry point for guests not wanting to stay in a Hilton or luxury Hilton but still wanting the affiliation. Unfortunately, Hilton have allowed too many hotels to trade as Hiltons without really reflecting the Hilton standards. It’s great that Hampton Inns offer free breakfast, but not so great when that breakfast runs out of eggs at half eight, or the juice machine packs in. There are some very poor Hamptons (East Croydon) that are re-purposed buildings rather than new sites.

At the other end of the scale, Hilton LUXR brand is losing several key properties. The Biltmore in London recently stopped trading as a Hilton. The same thing happened to Plaza Athenee Bucharest, which is now an Intercontinental. Now if Hilton wants to maintain its status as the best hotel brand, you would think they would look after some of their established properties, particularly in capital cities.

Hilton still does well at the more mid-level luxury point. An example is their chain of curio hotels. The properties aren’t necessarily in the best locations, but can often offer really unique architecture and some wonderful guest experiences. Hilton have 91 curio hotels in some major cities including London, Madrid and Milan.

https://www.hilton.com/en/brands/curio-collection/?msockid=15f0e22e62e16e2d04a1f6e8635a6fc1

Away from that, the brand has some competition at the lower scale. At the price point, Holiday Inn and their Express brand offer a better deal than most Doubletree, Garden Inn and Hampton Inns. It’s also much more streamlined with the original brand message. Who knows what the Hampton Inn stands for? A Hilton brand that has lost its way is the Hilton Garden Inn.

I’ve been staying in Hiltons for years and I still don’t see the difference in terms of branding. If the Garden Inn is for budget hotels, how is it different from a Hampton? Well, the Hampton Inns are usually the cheapest option for Hiltons (although not in London Waterloo) yet they offer free breakfast, whilst Hampton Garden Inn doesn’t. Yet if you stay in a Doubletree, you get a free cookie, whilst still have to pay more for breakfast. Still, it’s better than nothing.

What about Motto?

Here is where Hilton had a missed opportunity to deliver something truly unique in the hotel sector. Back in 2018, Motto was a new hotel brand announced by Hilton. It “is a micro-hotel with an urban vibe in prime global locations”. It was billed as hotel for people who want ‘shared spaces’ but don’t want to choose a hostel. Hilton could have taken a leaf out of the Generator brand, which doesn’t really do more than elevate the hostel concept to make it slightly more stylish. Unfortunately, Hilton chose to open Motto in Marylebone, the most expensive area, hardly a haunt of backpackers. If they had gone for Shoreditch, or even Notting Hill, they would have found a space ideal for their brand. and then after their big press release , nothing happened. It was a major fail.

Devalued Loyalty Program

The Hilton loyalty program was great until they massively devalued the points. I’d rather collect through IHG or Radisson, whose loyalty programs offer much better redemptions. Hilton make it hard to go from Gold to Diamond, and when you get there, it doesn’t make much difference for your stay. The points earned by per stay are so low that you would need to stay more than twenty nights to earn a free night. Hilton should change that. And even the diner credit that you receive if you have Diamond status is not enough to cover the cost of a meal.

Verdict

Hilton have competition in the luxury field from Hyatt and IHG and are facing real challenge from Holiday Inn. They should look to attract younger guests who may currently prefer to use Airbnb or hostels. And they must get their loyalty program back to giving customers a better return for their loyalty.

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