Hilton Hhonors Worldwide
Hilton Hhonors Worldwide
Hilton Hhonors Worldwide
GROUP 7
About Hilton Hotels The most recognized name in the industry, Hilton Hotels stands as the stylish, forward thinking global leader of hospitality. Today Hilton welcomes guests in more countries than any other full-service hotel brand, with more than 530 hotels and resorts in 76 countries across six continent.
Loyalty program
Luxury
Full service
Focused service
Time share
HOTEL INDUSTRY
Chain brands supplied reservation services, field sales operations and loyalty program administration. Less standardization of operations. Chains managed one another's brands.
CONSUMERS
nly 41% of consumers use hotels over night.
COMPETITION
Four global brands dominated business class Hotel markets. Starwood Hyatt Hilton Marriot
Bollenbach appointed as president and CEO of Hilton. Focus on Brand development. Varying product has been a limiting factor. Challenge to maintain customer expectation.
The revenues reached $158 per night per guest. Occupancy exceeded break even. Fixed costs at about 68% occupancy and 80% at higher occupancy level.
Membership was provided free of cost. Members earned points during their stay at HHC or HIC hotels. When earned enough points stay at the hotel is redeemed.
BLUE
HSW credited 10 points per eligible dollar of folio. Guests earned mileage in partner airline frequent flyer programs. Members earned points by renting a car, using the Hilton credit card from American express.
Buying products from FTD florist and Mrs. field's cookies. Besides free stays they had priority of reservations telephone numbers.
SILVER
Members awarded silver VIP status if stayed for more than four times in a year Benefits are: Earned 15% bonus on base points Received a 5000 points bonus after 7 stays in a quarter. 10000 point discount when they claimed a reward costing 100000 points.
GOLD
Members awarded Gold VIP status if stayed for more
stay.
DIAMOND
No benefits were promised. Acquired more bang, more affinity, more vesting from customers if you do something un expected.
Variable pricing rate charged on size and fittings as well as day of booking, length of stay and customer characteristics. Walking cost depends on 1. Customers future life time value 2. Function of their willingness to pay past loyalty.
MEMBERS ATTITUDE
HHW made use of conjoint analysis to measure what members wanted from HHP. Important features of the hotel programs were Room updates and airline miles. Free hotel stays and variety of on property profit benefits and services.
Diskin recognized from the study that o To attract game players o To improve the stay experience for members
STARWOODS ANNOUNCEMENT
The wall street journal of feb2,1999 announced the birth of Starwood preferred guest program It included more than 550 participating properties worldwide Four features were No blackout dates No capacity control Paperless reward
DISKINS DILEMMA
Do we have to compete point from point? Do we want to take different positioning? Do we have to hold on to loyal members and differentiate honors from starwood and other competitors?
STUDY QUESTIONS
What are the strengths and weaknesses of Hilton HHonors from the standpoints of
a) Hilton Hotels Corp and Hilton International b) Member properties(franchise hotels) c) Guests d) Corporate travel departments
How does the value generated to Hilton by the program compare to its cost