Hilton Case
Michael Naftaly Spring 2015
Hilton Honors
1. How can a loyalty program help the property operator and brand owner manage customers better
A loyalty program is a very useful tool in managing customers and more importantly trying to keep them. The first aspect a loyalty program aide operator and owners is the ability to track customer's behaviors, wants, needs and issues. For example if they notice most business travelers use the gym facilities but traveling families do not then they can place the smaller rooms to accommodate solo travelers near the gym. Nothing is a better sense of what you are doing right and wrong then returning customers and the loyalty program gives insight to that. Since the costs of the loyalty programs are often expensive to the hotel with the added level of service expected such as round the clock front desk help to automatic room upgrades, the owner and operators have to make sure to base these programs as cost effective as they can and target groups who bring in the most revenue. The key with loyalty programs is to have the ability to be different but still attractive in an industry that there is so much competition, every customer expects loyalty programs to have certain aspects such as free nights and upgrades but if your Target audience are families then maybe children eat free would be an attractive incentive to travelers, where if your main customers are business travelers then kids eat free would not be as enticing to them. At the end of the day with there being so much General competition in the hotel industry, the main function of the loyalty programs are to find a way to create some sort of niche that can attract business and retain it while still turning a profit.
2. Quantify the value of the HHonors program to Hilton. How does the value generated by the program compare to the
Hilton Honors
1. How can a loyalty program help the property operator and brand owner manage customers better
A loyalty program is a very useful tool in managing customers and more importantly trying to keep them. The first aspect a loyalty program aide operator and owners is the ability to track customer's behaviors, wants, needs and issues. For example if they notice most business travelers use the gym facilities but traveling families do not then they can place the smaller rooms to accommodate solo travelers near the gym. Nothing is a better sense of what you are doing right and wrong then returning customers and the loyalty program gives insight to that. Since the costs of the loyalty programs are often expensive to the hotel with the added level of service expected such as round the clock front desk help to automatic room upgrades, the owner and operators have to make sure to base these programs as cost effective as they can and target groups who bring in the most revenue. The key with loyalty programs is to have the ability to be different but still attractive in an industry that there is so much competition, every customer expects loyalty programs to have certain aspects such as free nights and upgrades but if your Target audience are families then maybe children eat free would be an attractive incentive to travelers, where if your main customers are business travelers then kids eat free would not be as enticing to them. At the end of the day with there being so much General competition in the hotel industry, the main function of the loyalty programs are to find a way to create some sort of niche that can attract business and retain it while still turning a profit.
2. Quantify the value of the HHonors program to Hilton. How does the value generated by the program compare to the