Hilton Hhonors Case Study

1045 Words5 Pages
In reference to Starwood Hotels and Resorts Worldwide’s decision to expand its Preferred Guest Program by offering new features - no blackout dates, no capacity control, paperless rewards, and hotel reimbursement- that might increase operating costs and lead to higher staying costs. The imminent problem for Hilton is whether to compete point for point or take a different approach to its existing reward program in order to be distinct from Starwood.

Below are recommended action plan for your consideration, towards the implementation of a balanced program in order to gain a competitive advantage, whiles retaining our valued guests.

The Solution:

Instead of matching with Starwood's new strategy, Hilton should take a different
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Reception employees are required to address all rewards members by their name, and personalize their experience as much as possible. Gold and Platinum member get complimentary breakfast, Wi-Fi, and access to concierge lounge throughout their stays, when available, they are also allowed a complimentary upgrade of rooms. Dedicated elite check in lines is a big win for the program as well.This buttresses the strategy of guest retention.

• Hilton should offer a clearly understandable referral bonus program to its loyal customers. A loyal guest can earn extra points because of referring Hilton to other qualified prospective customers. Extra points to a guest translates to extra free stays, such a referral program will not only promote the retaining of guests, but also new guests.

• To address the concern of in relation to corporate travel managers who will want employees to comply with the corporate travel policies, because they have negotiated a rate by promising a volume of stays, a comprehensive add on benefit shold be tagged on to corporate travel policies, to be organization specific. For instance, in addition to employees of company XYZ utilizing a particular hotel due to pre negotiated rates, a collaboration effort between both parties to offer an additional perk, such as a mystery arrival gift, say a custom robe, gift certificate to the restaurant on site, etc. Something extra to make the employee
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