Hilton Loyalty Wars
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- Date Submitted: 12/18/2014 06:59 AM
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Hilton HHonors Worldwide: Loyalty Wars
Introduction
The following case concerns Hilton’s reward program for its guests, the Hilton HHonors, and the possible implications after the introduction of a different Reward Program introduced by Starwood Hotels and Resorts Worldwide Inc. Many companies in different industries use the loyalty reward program as a form of marketing tool to reward their loyal customers. By doing this, they are able to retain their customers and attract other potential customers. The more attractive the loyalty programs are, the more customers the companies get and retain. Customers are attracted based on how they earn points, and the benefits they get when they redeem the points. Many of the industries offering the loyalty programs have a standardized way of doing so because they are more independent and they have definite control. This is unlike the hotel industry, which has no defined control because of franchises and different management. There may be different people controlling the hotel chain despite the chain using the same brand. This makes it hard for the hotels to standardize their loyalty program. The Hilton Reward Program was effective in retaining and attracting customers, but the hotel chain faced different challenges, which increased its threat of losing its customers.
About Hilton Worldwide
• Hilton Worldwide (formerly, Hilton Hotels Corporation) is an American Global hospitality company.
• It is owned by the Blackstone Group, a private equity firm.
• Hilton is ranked as the 38th largest private company in the United States by Forbes.
The most recognized name in the industry, Hilton Hotels stand 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 continents.
PROBLEM STATEMENT
• Hilton competing with other players by...
Introduction
The following case concerns Hilton’s reward program for its guests, the Hilton HHonors, and the possible implications after the introduction of a different Reward Program introduced by Starwood Hotels and Resorts Worldwide Inc. Many companies in different industries use the loyalty reward program as a form of marketing tool to reward their loyal customers. By doing this, they are able to retain their customers and attract other potential customers. The more attractive the loyalty programs are, the more customers the companies get and retain. Customers are attracted based on how they earn points, and the benefits they get when they redeem the points. Many of the industries offering the loyalty programs have a standardized way of doing so because they are more independent and they have definite control. This is unlike the hotel industry, which has no defined control because of franchises and different management. There may be different people controlling the hotel chain despite the chain using the same brand. This makes it hard for the hotels to standardize their loyalty program. The Hilton Reward Program was effective in retaining and attracting customers, but the hotel chain faced different challenges, which increased its threat of losing its customers.
About Hilton Worldwide
• Hilton Worldwide (formerly, Hilton Hotels Corporation) is an American Global hospitality company.
• It is owned by the Blackstone Group, a private equity firm.
• Hilton is ranked as the 38th largest private company in the United States by Forbes.
The most recognized name in the industry, Hilton Hotels stand 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 continents.
PROBLEM STATEMENT
• Hilton competing with other players by...