Younger guests are target for new Hilton brand

Young people’s spending may be limited now but not in future
Tru, the new brand launched by Hilton Worldwide this month, has been designed to appeal specifically to younger guests who are likely to be travelling on a budget, according to Christopher J Nassetta, Hilton Worldwide president and CEO.
As Hilton’s other brands focus on cultivating the loyalty of business guests, Tru properties have a price range of $75 to $90 a night, creating loyalty and consistent quality in the economy and midscale areas. Tru aims to compete with chains like Comfort Inn, Fairfield Inn and La Quinta and represents a completely new market for the company.
Nassetta comments that 40% of the demand for hotel rooms comes in this segment, the biggest of any market. But chains active there offer an “inconsistent product and service delivery”, giving Hilton a niche for building loyalty among young people whose spending may be limited now but who could be able to afford more upscale hotels in the future.
“You go in a lot of the competition and it’s like Russian roulette,” he says. “There’s really nobody doing it well at this price point.”


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