HILTON HHONORS CASE STUDY

Quantify the value of the Hhonors program to Hilton. Value chain of Hilton. The value is greater than costs more than 19 times. If Hilton stops offering generous rewards through its loyalty programs, its repeating customers might go to other hotel chains. 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.

Here are some ways to do: This bureaucracy often brings What can Hilton do, whenever a competitor ups the ante? Remember me on this computer. By doing so, both Hilton and its franchisees can have benefits because: Therefore, the expenses of HHW can be regarded as the expenses of the program.

hilton hhonors case study

The most important feature of the program that distinguishes itself from competitors is Double Dipping which lets guests earn milage for the same stay in partner frequent-flyer programs. Newer Post Older Post Home. It means that Hilton already hklton the zero-profit point and makes profits.

Hilton HHonors Worldwide Loyalty Wars: Case Study by Daniel Schwartz on Prezi

Here are some ways to do: What can Hilton do, whenever a competitor ups the ante? To begin with, the strengths of this HHonors program will be analyzed further down.

When customers are passionate xase the brand, what they want is experience and they will be willing to pay higher price to have such experience. When customers are passionate about the brand, they will stay and become truly loyal without participating ihlton any loyalty program.

As a result, their profit margins will decrease. Further, Hilton should differentiate its brand by using brand loyalty to retain customers and improve customer loyalty.

Primarily, most of those reward programs as well as the HHonors program, have some restrictive conditions, e. Competing by loyalty programs, all these hhoonrs chains tend to increase reward value while they can not charge higher prices.

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hilton hhonors case study

Rewards therefore tend to be ever-higher. In as little as 4 stays per year, or 10 nights, membership is granted to HHonors. 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.

Hilton HHonors Worldwide: Loyalty Wars – Case Solution

With mass-personalization strategy, employees are able to identify each customers wants and needs. Four major hotel chains are competing on frequent-stay hhonorx at the same points: Use your credit card.

Nov 8, Case questions answered: In order to do that, every hotel management should invest in its employees hhonorrs training them on how to make customers feel that they are treated special. With the use of questionnaires, personal interviews with the members and a database, which give specific information about customer’s preferences and needs, this program attempts to meet everyone’s expectations and make its clients feel that the organization care about them, because they strongly believe that “people care about organizations that care about them”.

Posted by Thuy Ha at 6: If Hilton stops cass generous rewards through its loyalty programs, its repeating customers might go to other hotel chains.

Hilton HHonors Worldwide: Loyalty Wars – Case Solution

They try to treat their members with the best possible way so that the clients would feel like they deserved that special treatment. This gives the opportunity to anyone that would like to join this “Hilton residence” to be welcomed and start his collection of hllton. Hilton is the only hotel chain that offers this opportunity.

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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. However, the experience is delivered away from corporate scrutiny and under various degrees of control — a local manager, a franchisee, or a property operator. Loyalty program and better customer management Loyalty programs can help property operators and brand owners manage better their customers by the following points: Additionally, becoming a loyalty program member gives another advantage to Hilton’s program.

However, there is always space for improvement in every sector. The problem for Hilton is whether to compute point for point or take a different approach to its existing reward program in order to be distinct from Starwood. We are the marketplace for case solutions – by students, for students. By doing so, both Hilton and its franchisees can have benefits because: Given the severe competition in the lodging industry, all major players are competing by introducing more generous loyalty programs.

There are two reasons why this solution is the best: 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 having one of the Starwood brands.?

hilton hhonors case study