BEVERLY HILLS, Calif., April 14, 2003 � Hilton
Hotels Corporation (NYSE:HLT) today announced an integrated strategy related
to electronic and online distribution for the company�s more than 2,000
hotel properties across North America: The strategy incorporates
the following four components:
1. Price Integrity
With an eye toward ensuring that its customers have confidence in its
pricing, a new set of brand standards are being developed for all hotel
properties owned, managed or franchised by Hilton Hotels Corporation.
While each hotel will establish its own rates, the standards will require
each hotel to offer such rates consistently across all designated distribution
channels, including Hilton Family proprietary websites, Hilton Reservations
Worldwide call centers, Global Distribution Systems/travel agents and through
hotels directly. This will ensure that customers receive the best
pricing and value no matter which of these channels they use to make their
reservations.
While a hotel�s most favorable rates also may be available through other
channels, including third party online channels, customers always will
know they cannot find better rates than what they get through Hilton�s
designated distribution channels. The program underscores the company�s
belief that providing this consistency is a �cornerstone of brand integrity�
and ensures that the company�s most loyal customers always have access
to the best values without having to go anyplace else.
Hilton noted that this program is not designed to take away a hotel�s
need and right to price its product based on its own assessment of market
conditions. However, the standards will ensure that the hotels establish
their rates consistently and competitively across all the designated channels. |
2. Brand Website Enhancements
By
the end of April 2003, the company expects to complete several new upgrades
and benefits for online consumers visiting any of the six major websites
for the Hilton Family of Hotels. These are: Hilton (www.hilton.com),
Doubletree (www.doubletree.com), Embassy Suites Hotels (www.embassysuites.com),
Hampton Inn (www.hamptoninn.com), Hilton Garden Inn (www.hiltongardeninn.com)
and Homewood Suites by Hilton (www.homewoodsuites.com). These upgrades
are designed to simplify the online reservation process, allowing customers
to easily match the right Hilton Family hotel with their personal needs.
Major features include:
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Advanced hotel searches by city, address, airport or attraction from a
single webpage. Customers will be able to conduct detailed searches
based on a user-defined geographic radius and up-to-date room availability.
As a result, customers will have more control in choosing the Hilton Family
hotel best suited to their individual needs, across all Hilton Family brands.
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Streamlined design features and improved content. Icons directing
customers to a well-designed layout combination of photos, brand identifiers
and hotel amenities will facilitate the ability of users to perform hotel
comparisons across all Hilton Family brands.
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Hilton HHonors® profile and account access. Hilton HHonors members
will be able to sign into their profile or account at any time during their
website visit. This gives HHonors customers expedited reservations,
and greater assurance that their particular needs are communicated to the
hotel. In addition, they can view and re-book past reservations and
modify future reservations.
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3. Preferred Third Party Online Merchant Model Program
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Hilton Hotels Corporation has recently entered into preferred hotel
agreements with Expedia Inc. As a result, Hilton will become one
of the first hotel companies to implement a direct connection between a
major hotel company�s central reservation system and Expedia®�s database,
thereby empowering participating hotels to manage price and availability
of rooms available on Expedia.com®�s website in a dynamic fashion.
Under the terms of the agreements, which may continue through 2005,
participating hotels are not required to commit to Expedia a specific amount
of room inventory. Hilton said that, to the extent the company�s
owned hotels utilize third party online channels for merchant model reservations,
they will currently utilize Expedia and/or Travelweb. Hilton is strongly
encouraging the owners of its managed and franchised hotels to do the same
(to the extent that they require third party merchant business), based
on having secured from Expedia the most favorable merchant model terms
in the hotel industry. |
4. Hilton HHonors
Members of Hilton HHonors, one of the industry�s leading guest loyalty
programs, will receive Points & Miles® only when booking
through designated distribution channels, which include Hilton Family proprietary
websites, Hilton Reservations Worldwide call centers, Global Distribution
Systems/travel agents, corporate travel planners and through hotels directly.
The company noted that when combined with the pricing integrity standard,
this will help ensure that the Hilton Family�s most loyal customers will
continue to favor the designated distribution channels. The company
will be communicating to HHonors members the benefits of continuing to
book through the company�s designated distribution channels. |
The introduction of this strategy addresses the continuing impact of
the Internet as a growing distribution channel. In 2002, Hilton reported
a more than 95 percent increase in total net and gross reservations on
its proprietary brand websites over the previous year. Online channels
currently account for approximately 10 percent of the company�s total bookings,
with more than 75 percent of that total coming from the company�s brand
websites. Approximately 18 percent of all Hilton HHonors stays are presently
booked through the company�s brand websites. In mid-January, Hilton
set a single-day record of approximately $4.6 million of gross sales revenue
from its brand sites.
Hilton Hotels Corporation is recognized internationally as a preeminent
hospitality company. The company develops, owns, manages or franchises
more than 2,000 hotels, resorts and vacation ownership properties.
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