Mini-Case On Hilton Worldwide Holdings (HLT) Is The New Hilton Policy Warranted?

Photo of a hotel outdoor pool area surrounded by palm trees and mountains

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Headquartered in McLean, Virginia, Hilton Worldwide (and Marriott) on January 1, 2015, implemented a new policy that requires customers to notify the hotel the day before their scheduled arrival to avoid having to pay for the room. This policy reverses a long tradition of allowing customers to cancel their reservation “up to 6pm the day of arrival without penalty.” Bob Gilbert, CEO of the Hospitality Sales and Marketing Association International, a hotel industry group, said of the Hilton move, “It’s not surprising. The hotel business ...

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