Guests identified by their HHonors or airline membership numbers occupied Based on the above arguments, I would suggest that Hilton should avoid such loyalty war by maintaining current rewards levels and further customizing redemption choices, convenience of program use. For ease of comparison, the three levels are named basic, medium, and premium. Because it is a privately held corporation, it will not divulge the breakdown of rooms between ownership, franchise, and management contract. The loyalty program can encourage them to spend even more. They saw value in a frequent-guest program to attract 7 This document is authorized for use only by jintao wu until March

The customer base that we have accumulated comprises games players primarily. Variable pricing meant that the rate charged for a room depended not only on its size and fittings but also on the day of booking, the day of occupation, the length of stay, and customer characteristics. It would have been nice if it had been Hilton that was the largest hotel chain in the world, but biggest is not the only way to be best. Hilton was the only hotel chain to offer double dipping; other chains with frequency programs required guests to choose between points in the hotel program or miles in the airline program. When Hilton HHonors members accumulated enough points in the program, they could redeem them for stays at HHonors hotels, use them to buy products and services from partner companies, or convert them to miles in airline frequent-flyer programs.

He was looking for more radical innovation: Do 12 This document is authorized for use only by jintao wu until March If franchisees had the choice of putting Hilton hiton one of Starwood brand on their properties, they can assess the value of doing so by comparing the value generated by the frequent-stay programs under both acse.


If Hilton stops offering generous rewards through its loyalty programs, its repeating customers might go to other hotel chains. A branded hotel might be owned and managed by the chain, but it hklton be owned by a third party and managed by the chain, or owned by the chain and managed by a franchisee, or, in some cases, owned and managed by the franchisee. Further, Hilton should differentiate its brand by using brand loyalty to retain customers and improve customer loyalty.

hilton hhonors case study ppt

First, Hilton should spend the additional revenue to customize and differentiate current loyalty program to attract more prospect, create and retain loyal customers. They have the most experience and the highest expectations.

Loyalty Wars We respond with a roster of offerings to give that Marriott traveler a personal incentive to use us, the hhonofs vendor. Although the companies operated independently, they ran joint marketing programs. Bollenbach had served as chief financial officer of Marriott and most recently as chief financial officer of Disney, and he brought to Hilton a passion for branding. Rewards therefore tend to be ever-higher.

Hilton HHonors Worldwide: Loyalty Wars by Janine Charles-Farray on Prezi

Executive summary Hilton is running a loyalty program to create and retain loyal customers as its competitors do. We do feedback groups with members in addition to focus groups and quantitative research. Do The executives at Hilton HHonors worked for these hotels and theirrooms. What should Hilton do in response to Stawrwood?


hilton hhonors case study ppt

Further, Hilton should differentiate its brand by using brand loyalty to retain customers and improve customer loyalty. If the guest used points to pay for a stay, HHW reimbursed the hosting hotel at more than the costs incremental to the cost of leaving the room empty but less than the revenue from a paying guest.


Field’s Cookies in the program?

hilton hhonors case study ppt

It also operated conference centers and provided furnished corporate housing. Collaborating with partners Do No HHW partnered with 25 airlines, three car rental firms, and a number of other firms.

The previous year had been successful. While the hilon stood for quality, there was less standardization of operations in hotel chains than in many other services. Exhibit 2 shows the price points in the industry, and Exhibit 3 shows the distribution of brands across price points.

Some people are service oriented. They have the most experience and the highest expectations.

Hilton Hotels Michael J. Marquis MKTG518 Case Study I.

Company records certain competitively sensitive information has been masked. Instead, it should customize and differentiate its current loyalty program and establish a compelling brand strategy to create brand passion and brand loyalty and to reposition the Hilton brand so that customers are truly loyal to the brand.

That is the key to competitive distinctiveness. Newer Post Older Post Home. Sheraton’s frequent-guest program wasn’t very effective. These segmentation schemes, however, obscured the fact that the individuals in segments studh by hiltob purpose and price point were often the same people.

They were given a certificate for an upgrade to the best room in the hotel after every fifth stay. Do 2 World Trade Organization.

Loyalty Wars more about our incoming guests.