...HiltonHHonors Worldwide: Loyalty Wars: (Due Week 9, Oct. 29-Nov. 2)
Compare the HiltonHHonors reward programme with other reward programmes you know about or have researched. Be sure to discuss the differences, how they value guests and their offerings.
Does the value of the Hilton program justify its’ cost. Explain in terms of the value of a customer.
What is Starwood trying to do and how should Jeff Diskin respond?
The HiltonHHonors Worldwide reward programme can be compared with several other loyalty or recognition programs offered by leading hotel chains of the world. Similar programs are being offered by many airlines, department stores, car rentals, video and book retailing, credit cards, movie theaters and several other international entities in the service industry.
The first one that can be considered in this regard is the Priority Club Rewards offered by IHG (Intercontinental Hotels Group). The IHG group comprises of Intercontinental Hotel and Resorts, Crowne Plaza Hotel and Resorts, Holiday Inn, Holiday Inn Express, Hotel Indigo Staybridge Suites and Candlewood Suites. (Ref: https://secure.priorityclub.com/hotels/). The program is offered across 4,500 properties operated worldwide by the group. The program is open to everyone free of cost. It allows the members to earn points not only by staying in any of the member hotels but also by earning...
Starwood unveil an aggressive frequent guest program
How can H maintain its customers loyalty in response to Starwood
average member belongs to 3.5 programs
want a streamlined reward-redemption process and points that do not expire
most important feature: room upgrades, airline miles, free hotel stays, a variety of on-property benefits and services
Hilton: managed by Hilton hotels corporation and Hilton international
492 hotels, 154000 rooms
revenues of $158 per night per guest
occupancy exceeded break-even
4 membership tiers-- blue, silver, gold, diamond
Hilton, Starwood, Hyatt & Marriott (chart)
Starwood preferred guest program
No blackout dates
No capacity control
More competitive than competitors, low cost
customized hotel experience
build loyalty and customer lifetime value
well recognized brand image, developed loyalty program
average member is part 3.5 reward programs
only 1 in 5 member stays can be attributed to the program
most member never realize the full benefits of the reward program
management not satisfied with customers service experience
professional association, corporate...
Hilton worldwide internet websites provides
cost effective customer service, including online hotel reservations and HHonors enrollment.
business, technology and information services for our hotel guests, including high speed internet access at virtually all of our hotels system-wide.
self-service check-in kiosks at 47 of our owned or managed hotels as of December 31, 2004.
OnQ system is a single technology platform, which links our brands and hotels to enhance customer service and loyalty, as well as maximize operational efficiencies.
matches customer reservations with profile database records in very small pace of time in order to make guest feel special.
provides proper allocation of attention where needed.
It also provides for brand standards that permit each hotel to establish its own room rates, but requires the hotel to offer such rates consistently across all designated distribution channels. And “Our Best Rates. Guaranteed.” offers a price-matching guarantee to encourage customers to book their reservations through the above referenced distribution channels.
Total Calls :+ 15.31%
Net Revenue per Call: + 40.3% ($73.09 => $102.55 )
In 2006, 41.4% people calling have booked a room. (38% in 2001)
gross reservations through HRW, GDS and internet sites increased 13% over 2003
online bookings through our branded websites increased 28% over 2003....
...HiltonHHonors Strategic Response to Starwood Preferred Guest:
The Battle for Customer Loyalty
HiltonHHonors is a program which was designed to build loyalty to the Hilton brand worldwide. Membership in the program is open to anyone who applies at no charge. Members earn points toward their Hilton Honors account whenever they stay at a HHC or HIC property. Like many other reward programs, as members accumulate points they can redeem them for HHonors hotels or use them toward products and services from partner companies. Along with being a well-recognized name, the major advantage or strength of the Hilton hotel chain and the HHonors program is that it allows their members to “Double Dip”. This means that their members can earn mileage in partner airline frequent-flyer programs and HHonors points during the same stay. The HHonors program is the only hotel chain program to offer double-dipping.
Looking at the weaknesses of the Hilton hotel chain and the HHonors Program we can see that a major area of weakness has been a “widely varying product and the challenge of managing customer expectations with such a variety of product offerings” (Deighton, & Shoemaker, 2000). This is an issue caused in large part by the different types of ownership and management which controls the 492 properties...
The company spun off its international operations into a separately traded company on December 1, 1964, known as Hilton International Co.. It was acquired in 1967 by Trans World Corp., the holding company for Trans World Airlines. In 1986 it was sold to UAL Corp., the holding company for United Airlines, which became Allegis Corp. in an attempt to re-incarnate itself as a full-service travel company encompassing Westin Hotels and Hertz rental cars in addition to Hilton International and United Airlines. In 1987 after a corporate putsch, the renamed UAL Corp. sold Hilton International to Ladbroke Group plc, a British leisure and gambling company, which in May 1999 adopted the name Hilton Group plc.
The former Hilton Hotels Corporation headquarters in Beverly Hills
As a result, there were two separate, fully independent companies operating hotels under the Hilton name. Those Hilton Hotels outside the US were, until recently,[when?] styled as Hilton International hotels. Because the two chains were contractually forbidden to operate hotels in the other's territory under the Hilton name, for many years hotels run by Hilton International in the US were called Vista International Hotels, while hotels operated by the American arm of Hilton outside the US were named Conrad Hotels.
In 1997, to minimize...
Hilton is the leading global hospitality company, with more than 3,000 hotels and 500,000 rooms in 74 countries and territories, with more than 135,000 team members worldwide. The company owns, manages or franchises some of the best known and highly regarded hotel brands including Hilton Hotels & Resorts, Conrad Hotels & Resorts, Doubletree by Hilton, Hampton by Hilton, Hilton Garden Inn and Waldorf Astoria Hotels & Resorts.
The Hilton portfolio of hotel brands adheres to founder Conrad Hilton’s philosophy that, “It has been, and continues to be, our responsibility to fill the earth with the light and warmth of hospitality.” The company put a name to its unique brand of service that has made it the best known and most highly regarded hotel company: be hospitable. The philosophy is shared by all brands in the Hilton portfolio of hotel brands, and is the inspiration for its overarching message of kindness and generosity.
The mission of Hilton is “We will be the preeminent global hospitality company - the first choice of guests, team members and owners alike.” Moreover, the vision of Hilton is“To fill the earth with the light and warmth of hospitality.”
Hilton’s core values
The Values of Hilton are stated in an original way, by applying for each letter one value.
H – Hospitality
• We are...
...HILTON HOTELS CASE
Business Context/Key Business Drivers
Hilton Hotels is one the biggest lodging company worldwide and has been recently acquired by Blackstone Group. In 2007 Hilton’s portfolio characteristics are:
• close to 3,000 hotels between all its brands;
• Properties can be: a) directly owned; b) managed; c) franchised. The latter is the most common solution;
• covers almost the possible spectrum of lodging.
The IT function is considered part of the core business and the IT is considered as a source to increase revenues instead of a merely cost function.
Hilton’s CIO developed OnQ platform to manage all the information flows inside the organization in order to serve the customers. In particular OnQ is:
• a custom built Enterprise System;
• required consistent investments (close to 200 Millions $) and a considerable maintenance cost (60 Millions/year);
• kept in house because Hilton believes its capabilities generate a competitive advantage.
One of the applications supported by OnQ is the CRM program that manage all the information and preferences of Hilton’s customers.
OnQ and CRM were implemented to :
• standardize the service level in all the hotels in the different brands;
• provide a holistic view of the customers;
• track and make easily available information about the customer’s preferences in order to enhance the service level through:...
AND IT’S CORPORATE GOVERANCE
Hilton Hotels and Resorts is an international chain of full service hotels and resorts and it’s a flagship brand of Hilton Worldwide. The original company was founded by Conrad Hilton and is now owned by Hilton Worldwide. Hilton hotels are owned, managed, or franchised to independent operators by Hilton Worldwide. Hilton Hotels became the first coast-to-coast hotel chain of the United States in 1943. As of 2013, there are now over 540 Hilton branded hotels across the world in 78 countries across six continents.
The Hilton Hotels brand remains one of the company's flagship brands and one of the largest hotel brands in the world. The company places marketing emphasis on both business travel and leisure travel with locations in major city centers, near airports, convention centers, and a number of vacation resorts and leisure-oriented hotels in popular vacation destinations around the world.
Since being founded in 1919, Hilton Worldwide has been a leader in the hospitality industry. Today, Hilton Worldwide remains a beacon of innovation, quality, and success. And it comprehended the importance of corporate governance and formulated very systematic corporate governance guidelines. And I have disseminated its corporate governance in India, United States and...