Hilton Worldwide was founded in 1919, and the lodging giant is expanding by adding new brands and opening in new markets to continue its aggressive growth. Based in McLean, Virginia, Hilton has a wide product mix covering multiple brands. Its line of luxury hotels includes two brands, Waldorf Astoria and Conrad. It markets lifestyle hotels under the Canopy by Hilton brand and full-service hotels under four brands: Hilton, Curio Collection by Hilton, Doubletree by Hilton, and Embassy Suites by Hilton. Hilton’s hotel brands with limited services include Hilton Garden Inn, Hampton Inn by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, and Tru by Hilton.

Hilton is currently opening the doors to the first of more than two dozen Canopy boutique hotels. These are hotels in locations like Reykjavik, Iceland, and Bethesda, Maryland, where customers can use mobile devices for convenient check-in, then check out the neighborhood using the hotel’s on-site bikes. Canopy hotels have open lobbies to invite lingering, a free gift waiting in every room, and free wine tastings in the evening to encourage mingling.

Another of Hilton’s newer brands is Tru, a group of more than 100 mid-priced hotels designed with Millennials in mind. Introducing the brand, Hilton’s CEO stated: “We have a very large swath of demand that indexes very young, and we’re not serving it.” The company’s analysis indicates that 40 percent of demand for hotel rooms comes from customers seeking affordable accommodations. Tru is geared to travelers in their twenties and thirties who want accommodations with a modern design and a reasonable price, plus opportunities to personalize the experience for individual needs.

Questions for Discussion

1. Which branding strategy is Hilton using? Why is this appropriate for Hilton

2. How does the state of competition among hotels indicate where this category is in the product life cycle

3. Is Hilton’s product mix deep as well as wide? Explain your answer.