Case Study - Hilton Hhonors Loyalty War Essay

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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
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Some franchisees may be difficult to motivate/persuade to follow the new strategies and it can affect the overall customer satisfaction %, since promised rewards/services are not properly followed. That could do a serious damage not only to HHonors loyalty program, but to brands name itself. Customer Service: The idea of HHonors –program can be seen a little bit discriminating towards majority of average customers. The idea is to pay as much attention and recognition to top clients, since the most of the profit comes out of them. And that’s why, when a customer is interacting with a member of a staff, staff members are encouraged to check the system to find the information of that specific customer to find out his/her importance to the chain. And obviously, it can be assumed that the service quality will vary too, as soon as this employee will establish the “level of importance” of this specific customer. Mission is to make sure that staff recognizes the best customers, shown in HHonors –program database, in order to “make sure that these guests get a personal welcome” (p.543). It sounds to be very difficult to make sure that staff always recognizes top guest in the database. There is a big chance that the guest whom is highly rated in the system is visiting this specific hotel for the first time, so it is very difficult to
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