Hhilton Honors Case Study

Topics: Hilton Hotels, Hilton Worldwide, Hilton Hotels Corporation Pages: 3 (935 words) Published: November 4, 2012
The Hilton HHonors program believes that loyalty is the key to success in the sense of attracting and keeping the hotels customers. Hilton made this program to “build loyalty to the Hilton brand worldwide” (Deighton & Shoemaker, 2013). Hilton HHonors has both strengths and weaknesses in its business that may benefit member properties, guests, travel departments and the Hilton Hotels Corp. The Starwood has created its own program to increase customer loyalty, to, which the head of Hilton HHonors, Jeff Diskin, has to decide what to do (Deighton & Shoemaker, 2013). Hilton HHonors created double dipping service and was the only chain to offer it. This is definitely one of their strengths from the Hilton International and the Hilton Hotels Corp standpoint. What it does is, it allows for customers to save up points, and redeem them but not only at the hotel, but also with affiliated partners such as FTD Florists and partner airlines, whereas other hotels only allow you to earn points if you stay at the hotel. Customers are also able to buy different products and services. Although this service is very beneficial, it also has some weakness. HHonors failed to take into account blackout dates, paperless rewards, capacity control and hotel reimbursement, which was brought by the Starwood Preferred Guest Program. HHonors does not allow its members to request and redeem their points or request a room upgrade when it is a peak season. The Starwood Program also allows customers to pay with points for all the unreserved rooms, whereas HHonors only has a limited amount for its members. The paperless rewards don’t require the customer to present a certificate that was given by exchanging points; now Starwood’s Program has made it much easier and allows individuals to pay directly with their points. From the standpoint of franchised hotels, the franchisees are able to expand their business, because they are able to use the Hilton brand name, which brings them more business...
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