Case Study - Hilton Hhonors Loyalty War
In 1999, The Starwood Hotels and Resorts Worldwide raised their cost by announcing their new aggressive frequent-guest program that was accompanied by a fifty million dollar advertising campaign. The head of Hilton HHonors program, Jeff Diskin, recognized their competition and realized Hilton would have to raise their costs to keep up with demand. Two entirely unrelated corporations controlled Hilton brand: Hilton Hotels Corporation (HHC) and Hilton International (HIC). At this point in time, Hilton was very well recognized, but was limited because of a varying product from property. In return, this challenged customer expectations due to such a variety of product offerings. Hilton’s customers needed a standard of what to …show more content…
Feedbacks that are taking into count are also coming from those top-customers, since they have the most “experience” and “highest expectations” (p.541). But, they have experiences on VIP –class. However, quantity wise, there is more average customers, with experiences and expectation of an average traveler. Unfortunately HHonors do not pay as much attention to them.
8p’s of service marketing Product & People – Their market was slim with only 74% of Americans who travelled overnight in a year and 41% used a hotel, motel or resort.
Place & Physical Environment - Worldwide. Was convenient to all who applied to the Hilton HHonors Program.
Promotion – Hilton HHonors Program is the name Hilton gave to its program that would build loyalty to the Hilton brand worldwide.
Productivity & Quality – Jeff Diskin, Head of Hilton HHonors program, ran the limited liability corporation with a staff of 30 that shows you how hard the team worked. There was one vice president overseeing the program’s marketing efforts and once with operational and customer service oversight. (537)
Little more information about partner companies would be useful. For example, do their partners have a partnership with more than one company or are they loyal to the original partnership. If they have a partnership with more than one hotel, what are the strategies listed in HHonors