Speaking ahead of the launch of its premium boutique hotel brand, Denizen, Hilton chief executive, Chris Nassetta, conceded last week that economic conditions were leading the company to re-evaluate its brand positioning.
'In the current market, you have to be sensitive about your brands being categorised as conspicuous consumption -consumers are now seeking more authentic experiences and responding better to value-related offers,' said Nassetta.
Simon Bailey, chief executive of branding consultancy The Brand Union, agreed that Hilton and its competitors should try to present their portfolios in a way that reflects travellers' changing habits.
'Nassetta is right to look at his brands in a new light,' he said. 'Customers will be more cost-conscious, but also more demanding. More than ever, hotel brands must understand their customers. They should be establishing ways of making the same brand more accessible.'
Interbrand's head of consulting, Iain Ellwood, said Hilton and InterContinental Hotels Group should be wary of leading a brand overhaul.
He suggested they make more sophisticated use of their portfolio of sub-brands. 'These chains shouldn't change the branding as such,' said Ellwood. 'It's about how you use the portfolio of brands to create a virtuous cycle. Hilton, particularly, needs to work harder at this.'
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