If Hilton stops offering generous rewards through its loyalty programs, its repeating customers might go to other hotel chains. Use your credit card. If franchisees had the choice of putting Hilton or 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 brands. Skip to main content. In particular, Hilton honors program has partnered with twenty-five airlines around the world, three car rental companies, and a large number of other companies, where people can earn miles and spend them as they wish. Rewards therefore tend to be ever-higher.
Even though this seems simple, it makes customer feel unique. Therefore, revenue at higher occupancy levels will generate profits for Hilton. This information can be found on database. Hilton should not compete on what its competitors are doing. With mass-personalization strategy, employees are able to identify each customers wants and needs. Hilton should look at certain areas that would make its loyalty program more attractive.
Loyalty Wars What are the strengths and weaknesses of the HHonors program.? Bhonors order to do that, every hotel management should invest in its employees by training them on how to make customers feel that they are treated special.
The rationale reason why customers use loyalty program is that they want to make profits out of loyalty programs. Four major hotel chains are competing on frequent-stay programs at the same points: A loyal guest can earn extra points because of referring Hilton to other qualified prospective customers.
Also, there are limitations in the number of rooms available for free stays.
(DOC) Hilton Case Analysis | Firat Sekerli –
Once customers leave happy with the service at Hilton, they will come back no matter what czse loyalty programs offer because most customers tend not to change their habits when they are satisfied. On the other hand, Hilton HHonors guest reward program has a competative advantage over Starwood’s program because Hilton’s loyalty program has been successful compared to others in the hotel industry.
Primarily, most of those reward programs as well as the HHonors program, have some restrictive conditions, e.
Consequently, if the customer chooses Starwood, he or she has more waiting time to use his or her points while paying very high staying cost because of its new frequent-guest program.
By offering loyalty programs, Hilton implicitly trains its customers to expect lower prices. This gives the opportunity to anyone that would like to join this “Hilton residence” to be welcomed and start his collection of points.
We use Paypal and Stripe as our secure payment providers of choice. Not the questions you were looking for? With mass-personalization strategy, employees are able to identify each customers wants and needs.
If franchisees had the choice of putting Hilton or 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 brands. FAQ How do I receive the solution? If Hilton stops offering generous rewards through its loyalty programs, its repeating customers might go to other hotel chains. How can a loyalty program help the property operator and brand owner manage customers better.? Remember me on this computer.
Business Case Studies : HILTON HHONORS WORLDWIDE LOYALTY WARS CASE STUDY
By purchasing, you agree to our terms of service. Therefore, revenue at higher occupancy levels will generate profits for Hilton. Log In Sign Up.
Therefore, the expenses of HHW can be regarded as the expenses of the program. Additionally, becoming a loyalty program member gives another advantage to Hilton’s program. The most important feature of the program that distinguishes itself hhonirs competitors is Double Dipping which lets guests earn milage for the same stay in partner frequent-flyer programs.
This is a very positive issue for customers because they can earn the “desirable” points from many activities, such as car rental companies, airlines or partners like FTD florist and Mrs. When customers are passionate about the brand, they will stay and become truly loyal without participating in any loyalty program.
By doing so, both Hilton and its franchisees can have benefits because: Looking at the Hhonors program from the perspective of the franchisee, how would you assess the value of having the Hilton brand on your property as opposed to hiltob one of the Starwood brands.? What can also be described as the strength of this program is that the Hilton brand tries to come closer to its clients.
Hilton HHonors Worldwide: Loyalty Wars – Case Solution
Moreover, members can enjoy free stays by using their points and also they enjoy priorities for instance priority-reservation telephone number, faster check-in, late checkout and other services provided, for instance the silver members can hhonors upgraded to the best room in the hotel after the fifth stay and gold VIP member can be upgraded to the best room after every fifth stay, which can occur even at the time of check-in. This bureaucracy often brings Value chain of Hilton.
When customers are passionate about the brand, what they want is experience and they will be willing to pay higher price to have such experience. For this reason, hliton management should implement a new strategy that allows to expand the number of partners, such as airlines, rental car xtudy, restaurants, casinos, etc.
Giving more rewards does not necessarily mean the program will attract more customers because the new program reduces the cost-effectiveness and increases staying costs.