Case Study : Hilton Hhonours Worldwide Loyalty Wars

1174 Words5 Pages
Justin Bryant
Case 14
Hilton HHonours Worldwide: Loyalty Wars “Hotel Raise the Ante in Business-Travel Game.” This was the headline in The Wall Street Journal that raised a predicament for the head of Hiton HHonors Jeff Diskin. Hilton is one of the largest hotel chains internationally that has been a large access known for their guest reward program to keep their customers happy and wanting to come back. When Starwood Hotels and Resorts Worldwide Inc., a large competitor, unveiled an aggressive frequent-guest program to attract more business travelers to their hotels using a 50 million dollar budget, alarms went off inside the Hilton Corporation’s head. Jeff Diskin shared a quote that displayed his concern for the competitor’s advancement; “These guys are raising their costs, they’re probably raising mine too. They are reducing the cost-effectiveness of the industry’s most important marketing tool by deficit spending against their program. Loyalty programs have been at the core of how we attract and retain our best customers for ever a decade. But they are only as cost-effective as our competitors let them be.” The business traveler market is one third of Hilton’s overall guests. The Hilton brand was controlled by two unrelated programs, Hilton Hotels Corporation (HHC) stationed in Beverley Hills California, and Hilton International (HIC) established in London, England. In 1997, the two corporations unified to Hilton Worldwide. By merging into one, the companies

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