Reflections: Stephen Bollenbach

By Staff -- HOTELS Magazine, 8/1/2006

Stephen Bollenbach, co-chairman and CEO, Hilton Hotels Corp.

One of the big trends that has emerged is the increased importance of branding.

Forty years ago there were very few real hotel brands with any size or scale, Hilton being one. Today, not only are there a number of good brands—making the industry more competitive than ever—but customers

place great faith in brands. This is particularly true in the United States, and is becoming more prevalent internationally. Nowhere is this fact more in evidence than in the popularity of loyalty programs.

As an offshoot of my first point, I would also point to brand and product segmentation, an area where Hilton and Marriott have been the leaders. In the industry today, being able to offer customers good products across the widest range of price points gives a company a leg up on the competition.

It is also obvious that technology is playing an increasingly big role in our industry, and this will only become more important. Again, those companies with the resources to create and implement the latest in technology-based systems will have a sustainable competitive advantage in the years to come. Likewise, those that can facilitate customer booking and check-in with technology will also come out ahead. Currently at Hilton, roughly 19% of our bookings come via the Internet with about 90% of that total originating through our proprietary brand Web sites. Those numbers will only increase in the years ahead. Plus, technology-based initiatives like check-in at lobby kiosks and Web-based check-in will enhance the customers’ experience.

When it is all said and done, though, I think much in our industry has not changed. That is, what customers really want is a clean room, good value and great service in good locations. Those basics will continue to drive our industry.