Canarsie

Please allow me to start off with the analogy of the Honda Civic to explain what I am asking in this thread:

I owned a silver 1979 Honda Civic CVCC 5-speed automobile years ago. It had a choke. It ran using regular leaded gasoline as fuel. It had no air conditioning. There was no power anything. It was no speed demon. Still, it satisfied my purposes required for my transportation at that time, and it was reliable. I purchased it used for US$2,200.00 and it was worth every penny.

I then purchased a red 1986 Honda Civic Si 5-speed automobile, which was the first Si model. It had air conditioning, a rear brake light, fuel injection, power brakes, a moonroof and other features. Needless to say, the car cost considerably more than my first Honda Civic.

The Honda Civic had always been the low-end line of cars for Honda. They were cheap and reliable. However, over the years, they became faster, more comfortable, more technologically advanced, contained more and more features — and, inevitably, the price has also steadily increased. It is not impossible to purchase a fully-loaded Honda Civic today for greater than US$20,000.00.

To address the maturity of the Honda Civic, Honda introduced the Honda Fit, now the new low-end car for Honda. I suppose it needed to fill a void that expanded due to the maturity and improvement of the Honda Civic as the years passed.

I believe that Hilton Hotels is in a similar situation with the Hampton Inn brand. Once considered a competitor to brands such as Fairfield Inn, Hampton Inns have improved with more comfortable beds, a more consistent free breakfast, and other improved additional amenities. However, the rate for a room at a Hampton Inn has steadily increased. While it is still possible to find a room whose rate is US$75.00 per night, that rate is becoming increasingly scarce for a Hampton Inn room. In fact, it is not unusual anymore for a Hampton Inn to cost between US$130.00 and US$180.00 per night. While it is unusual, the rate at a few select Hampton Inns can cost as high as US$350.00 per night!

In light of the overall improvement of the Hampton Inn brand — and the steadily increasing room rates — should Hilton Hotels consider adding a low-end product? If so, should it be like what Hampton Inns used to be, or do you envision something different? What should be the name and identity of this new low-end brand? Should Hilton Hotels develop this low-end brand itself, or should it acquire an existing hotel company, much as it did when it purchased Promus years ago?

What do you think?

drron

Maybe they could call them Paris hotels.Suitably trashy.
Seriously though Hilton have moved out of the low end of the market,fortunately as I have matured and enjoy and can afford the extra perks.However I am sure there are many who are like I used to be and looking for something cheaper though reliable.
Big problem-all us grumpy old Fters will bemoan the fact that it is now far too easy to obtain diamond status and express the wish to go back to the good old days when upgrades and free breakfast were not just a forlorn dream.

loomis

I have thought about this myself. Hyatt did just that when they bought U.S. Franchise systems. They now have hotels at various price points. The purchase of U.S. Franchise systems got them the mid-scale, extended stay Hawthorne Suites brand as well as the economy brand, Microtel.

A couple of concerns that Hilton probably has:

Diminishing the value of the "Hilton" name. Can a budget brand make Hilton proud?

Inability to execute HH benefits. If you believe some people in this forum, that even their more upscale hotels can't get the benefits right, how can a budget brand do it?

BamaVol

I'd like to see it. Most stays, I'm happy with what Hilton offers. And, I'd be happy to see the lowest end Hamptons dropped as soon as they can be, rather than a half-arsed attempt at upgrading them.

I'm not that familiar with the budget chains and haven't had a really satisfying stay with any. I'd love to see Hilton attempt it, though, and there would be nights when I would choose one. For me, though, those stays would be in lieu of a Hampton stay and I don't know if that's common enough to keep Hilton from trying. They'd have to feel they could win enough business from the other budget chains, not canibalize Hampton.

tsastor

I think, now that Hilton has given up on the Scandics, that they should first expand with their low/medium brands to big cities outside of the US. The situation in places like London and Paris is now such that they have nothing to offer under something like 300 euros / 35000 points.

TrojanHorse

Ok.. first let me say I agree, I wish there was something in the $75 or less range for most places.. I know NYC would never have it but.. you know most places

I'm in frickin Huntsville AL and its close to a $100 for a frickin HI.. so I'm at the Fairfield where its 71

anyway, but I don't see why Hilton would do this, the margins would be way to low at a low end prop.. the fixed costs will only bottom out so far.. the variables will be less but not significantly and in the end the Gross Margins will probably just not meet Hiltons corporate goals. I just don't see it happening

KENNECTED

I'm happy with the current selection! So, No!

cptango

I am lucky all of the hampton inns I stay in for personal travel seem to be in the 100-125 price range.

For business travel we go cheap...I am talking I am lucky to get a la quinta or the like so a low cost Hilton where I could still earn points would be nice.

CPTANGO

aztimm

My company usually gets $59 rates at many HI's, so I don't think they'd be able to offer a lower product at a lower rate and still make money. They'd be competing against the Super 8 and Motel 6 crowd, which I don't think Hilton would really want anyway (think of the WN flyers we have in the US today).

Of course outside of the US, it would be great to see some additional Hilton offerings, as others have noted. It is risky to take a chance on a non-chain (with no point options) to save some $$$ during a European vacation, so I'll pay the extra money to get a product I know and trust.

tsastor

In Europe, I think Hilton needs to have something in the 100-180 euro range even to attract business travellers.

gatemando

I think Hilton has done a nice job segmenting the market. How much lower than a Hampton Inn do you want to go?

Jeeves

I really don't want to take a step down from Hampton Inn. That's why I tend to stay away from Fairfield Inns and Four Points unless they are new.

Can someone name a low-end product that delivers a consistently good experience. What about Holiday Inn Express? Any other ideas?

Canarsie

I had the “opportunity” recently to stay at a Hampton Inn in Lumberton, North Carolina.

Even with the American Automobile Association rate, the room rate was US$139.00 per night, not including taxes, no matter which night or nights I chose to stay there.

Needless to say, I did not stay there, as I thought that room rate was absolutely ridiculous.

In this scenario, there would have been no cannibalization had I had another Hilton HHonors choice of properties. I also do not need a coffee maker in my room. For this stay, all I wanted was a clean, comfortable, yet reasonably priced room.

trm2

If they do, get ready for no stay/night credit (you can still earn points) toward elite status.

ssullivan

And in the case of that particular Hampton Inn, unless it's seen major renovations in the last 18 months, those rates are way too expensive for a Hampton of that age, condition, and location.