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HILTON HHONORS CASE STUDY PPT

Further, Hilton should differentiate its brand by using brand loyalty to retain customers and improve customer loyalty. Because it is a privately held corporation, it will not divulge the breakdown of rooms between ownership, franchise, and management contract. Because it is a privately held corporation, it will not divulge the breakdown of rooms between ownership, franchise, and management contract. Given the severe competition in the lodging industry, all major players are competing by introducing more generous loyalty programs. Other people are games players. Motel 6, Super 8, and Econo Lodge are the best-known chains in this segment. If we have the right data, the model can be smart enough to know the difference.

Competing airlines launched their own programs, but, unlike stamp programs, frequent-flyer programs seemed to survive emulation. Yet activation, retention, and member spend per visit all have improved. Hilton has made numerous changes since that time, including Hilton Hotels Corporation’s acquisition of Promus Hotel Corporation. The industry was quite competitive enough. Loyalty Wars Diskin did not hide his conce. The industry was quite competitive enough. Loyalty Wars Exhibit 1 The U.

Burke explained, “Why is Mrs. Hilton offered discounted rates if etudy corporation delivered enough stays. They were a much smaller proportion of all the guests who stayed with Hilton in a year because they tended to be frequent travelers.

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

So now, together they can address Westin’s critical-mass problem and Sheraton’s relevance. Newer Post Older Post Home. Do 14 This document is authorized for use only by jintao wu until March Pt people are games players. Loyalty programs have been at the core of how we attract and retain our best customers for over a decade.

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But they are only as cost-effective as our competitors let them be. Assume that airline miles are purchased from the airline by Hilton at 1 cent per mile. Company records certain competitively sensitive information has hiltin masked. They were given a certificate for an upgrade to the best room in the hotel after every fifth stay and were upgraded to best available room at time of check-in.

Members wanted a streamlined reward-redemption process and points that did not expire. Was the standardized approach better than a targeted approach? Starwood was saying that if there was a room to rent, points were as good as money.

hilton hhonors case study ppt

We invite a bunch of members in the hotel down for dinner, and we say we want to talk about a subject. Hilton guests could earn mileage in partner airline frequent-flyer programs for the same stay that earned them HHonors points, a practice known as Double Dipping?.

Hilton Hotels Michael J. Marquis MKTG518 Case Study I.

By year-end, Starwood had under unified management the Westin, Sheraton, St. 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. While studdy travel managers can tell employees that they have to follow the company policy if they want to get reimbursed, many others can only recommend. Loyalty Wars more about our incoming guests.

The study found that the most important features of a hotel program were room upgrades and airline miles, followed by free hotel stays and a variety of on-property benefits and services. Exhibit stuyd shows the price points in the industry, and Exhibit 3 shows the distribution of brands across price points.

hilton hhonors case study ppt

The conjoint analysis suggested that roughly one in five HHonors member stays were solely attributable to their membership in the program—making these stays purely incremental. For example, we worked with a nontravel partner to overlay data from their customer files onto our total membership base and identified segments that might like vacation ownership, others who would be great stuy the casinos, and some that might like the business and teleconferencing services we offer. Internationally, United Airlines and Lufthansa combined with 11 ppg airlines to form Star Alliance, plt American, British Airways, and four others formed an alliance called Oneworld.

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Now [after the Starwood deal] there’s another big player. Rationales for the Program 1. Some people are service oriented. Leisure guests were price sensitive, often making their selections from among packages of airlines, cars, tours, and hotels assembled by a small group of wholesalers and tour organizers at rates discounted below business rates.

Members come in for an hour-and-a-half interview. Do 16 This document is authorized for hhnors only by caze wu until March And, of course, many people are a combination of both. They changed it every few years; they used to have members pay for it. Leisure guests were price sensitive, often making their selections from among packages of airlines, cars, tours, and hotels assembled by a small group of wholesalers and tour organizers at rates discounted below business rates.

hilton hhonors case study ppt

Starwood therefore raised the rate at which it reimbursed hotels for these stays.