2.0 Target Market

The Hilton Hotels generally target both business & leisure travelers in the upper scale market (Von Bodman, Carlos, Poprawski, Saab, & Wu, 2003). Being part of this Hilton Corporation brand, the franchise Hilton Brisbane receives customers from all areas of upper scale tourism. However, it has begun to direct its focus towards domestic business travel within the last years.

In Australia, the domestic business tourism market contributes to 10.4% of the $12 billion tourism industry (see Appendix 1) (Datamonitor, 2008 c).Being a high profit margin niche market, this market has specifically been targeted through several refurbishments. Both the multi-million dollar renovation in 2004 & 2009 were aimed at improving business facilities and accommodation to meet the high demands of these customers (Hilton Hotel Corporations, 2009;ASIATravelTips.com, 2004)

Refurbishments, such as the ones undertaken by the Hilton Brisbane, are important especially when targeting the business travel sector with its special needs. When focusing on business customers, outstanding service, comfortable & luxurious accommodation and fine food are expected. However, in addition to these demands businesses also require high-tech meeting facilities and the newest technology, making constant updating essential. With the Hilton’s commitment to improvement of their facilities and technological amenities, such as modems, it shows an engagement to meet the high demands of its clientele and facilitate their business (Hilton Hotel Corporations, 2009).

However, despite these incentives and special loyalty programs such as HHonours (Von Bodman, Carlos, Poprawski, Saab, Wu, & Harrison, 2003), it is expected that this area of tourism will be declining within the next year, as 2009 is expected to have the lowest global economic growth in 60 years at 0.5% (International Monetary Fund, 2009). With this expected decrease of global market activity, there will be less money for expensive travel, ultimately making business customers increasingly price sensitive.

As a results of this market development as well as decreasing brand loyalty, the need to increase advertising in areas such as business & in-flight magazines and increased customer value is becoming more important (Von Bodman et al 2003). However, advertiseing campaigns should be redesigned to utilize the internet, which has been found to have the greater impact on the purchase habits of business travelers (Von Bodman et al 2003).

3.0 Macro-environment

3.1 Societal Values & Lifestyle

The international Hilton brand of hotels is positioned towards the high-end, luxury, business markets and the Brisbane franchise is not exclusive to this. On a global scale, the Hilton Hotels aim to set the standard within the hotel industry for their target markets of wealthy travellers and business clients.

The general lifestyle values of the Australian market include high value for leisure, relaxation time and work-life balance as well as luxury items and social status. Australians also have a tendency to be more family oriented rather than work oriented, although this is beginning to shift towards a greater commitment to work.