Hilton HHonors Worldwide: Loyalty Wars
HOS 342 Service Marketing
Hilton HHonors Worldwide: Loyalty Wars
HOS 342 Service Marketing
Anthony Petitte
Anthony Petitte
Introduction
The following case concerns Hilton’s reward program for its guests, the Hilton HHonors, and the possible implications after the introduction of a different reward program introduced by Starwood Hotels and Resorts Worldwide Inc. Many companies in different industries use the loyalty reward program as a form of marketing tool to reward their loyal customers. By doing this, they are able to retain their customers and attract other potential customers. The more attractive the loyalty programs are, the more customers the companies get and retain. Customers are
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The company identified the companies it would work with based on their location, access to consumers, and relevance. It observed the benefits it would gain from working together with different companies before deciding to work in partnership with them. To determine what the members would want from the reward program, the company conducted interviews with different customers. It realized that it could roughly divide the customers into three segments based on their reward preferences. Some customers preferred better services and recognition; others preferred room upgrades and other product offerings, whereas others were interested in a combination of both. Customer interaction enabled the company know what the customers wanted. Analysis indicated that most of the members preferred the following reward programs in order, room upgrades, airline miles, free hotel stays, and on property benefits and services. This led to the creation of innovative products, as the company was able to have a deeper understanding of the market.
The company’s reward program was based on its collaboration with different partners, the company’s revenue and yield management, the franchises within the brand, and its relationships with the guests. In addition, Hilton collaborated with corporate clients, which contributed to most of the company’s customers. The reward program was instrumental in encouraging other hotels to join the hotel
For example, AFLAC would award its employees who present themselves within the community or volunteer for many charities, with the Volunteer of the Month award. This award can build the morale of the employee and keep them engaged. In the end not only are employees being recognized for their philanthropic work, but also it allows AFLAC to gain rapport due to its continuous efforts in the community. Secondly, AFLAC utilizes sound performance and incentive as an enhancement tool in order to promote and develop employees for the next level within the organization and keep pace with the company’s overall goals and strategies. “Approximately 90 percent of employees were attracted to and remain at Aflac because of company reputation. Employees are happy with the profit-sharing bonus, with 81 percent of employees saying they believe it is better than that of other companies” (p.7). This strategy is a marketing tool that allows AFLACs employees to see endless opportunity, which has allowed AFLAC to retain over 91 percent of it,
Over the decades there were tremendous amount of challenges for every business. Customers have more knowledge, they have more options, and they have higher expectations. Customers are more informed with the humungous development in technology. Having more options in front of them, expectations has surpassed in retail industry. Loyalty is a customer having faith that your organization’s product or services offered is the best for them. It is the process of tapping the buying pattern of customers in a store based on their preferences. Customer loyalty is significant because it is economical to retain the old customers rather than acquiring new customers. So, organizations employ loyalty programs which reward customers for their repeat business.
Customers are the backbone of every business which is why building a solid relationship is essential to the success of every business. In order to remain competitive companies must be able to meet the needs and wants of their customers. With new hotels and casinos on the rise in the Caribbean, the hotels and casinos operated under Diamond Cluster Entertainment are struggling to remain competitive. Their competitors are making themselves known via social media and other online marketing strategies. This company is ignoring the importance of social media which is why they are struggling to remain competitive and build a solid relationship with their loyal customers. Their competitors are also investing in loyalty programs that offer customers free rooms, room upgrades, casino credits, and other perks.
In order to motivate the sales force to produce the highest number of clients, describe six (6) features of an effective total rewards program.
Hilton Hotel is founded by Conrad Hilton, they started their operation since 1919 and since then, they become one of the well-respected premier hospitality organizations with diverse employees worldwide. Currently, they have more than 4,600 owned and franchised hotels and resort chain in 100 countries. It has more than 200,000 rooms to accommodate guests from different parts of the world. It has more than 400,000 employees and team members to answers the needs of their guests (Hiltonhotelworldwide.com, 2016). In most of their branches their organizational structure is simple, with managers and supervisors from a different department, including admin, marketing, finance, human resource, concierge, food and beverages, housekeeping and etc.
Five employee behaviors that The Hotel Paris could try to improve through an enhanced benefits plans are absentee rate, morale and commitment, turnover rate, healthier workforce, and better job performance. These behaviors show the best opportunity for improvement. One of the most important factors for The Hotel Paris to run a successful hotel is to keep employees happy and give them enough incentive to maximize their productivity. One of the ways to do this, as noted in this case study, is to offer employee benefits that go above industry standards. By offering added benefits similar to their competitor Marriott’s “BENETRADE,” (Dessler, 2013, p. 452) the hotel can attract and retain
The company’s ability to know what it is that their customers want in this industry is one of its strengths. They were constantly trying to improve on their customer experience and wanting to get feedback from their customers. For instance, making the payment process less awkward for the host and the renter. Instead of having
In addition, Hilton Hotels Corporation is supporting its portfolio of commitments in a number of ways, by:
Managers who doubt this financial IT investment should ask themselves if they can afford loosing a customer on the grounds of not satisfying his needs. Since the rare resource of a company is its capabilities that create value with the technology, while actively implementing the CRM technology, on top of all the current capabilities and expertise already employed by Wyndham, it would be beneficial to add additional supporting business processes such as Newsletters, that can be published weekly or monthly, making sure not to bore the reader with regular issues of nonsense, but highlight the special program services and the company’s new moves in the field, Regular follow up calls to identify with the customers and find out how they are doing and regular market/satisfaction surveys that can be sent by e-mail, post online and most important, reviewed regularly by the company. An online guest feedback system can be implemented to help track customer service levels. Believing that taking care of the hotel’s employees will result in them taking care of the guests, a natural extension would be to implement an online employee opinion system as well, where employees can complete an online survey to measure their satisfaction and provide an immediate feedback. A key driver of guest satisfaction is how well employees handle issues that arise during a guest`s stay. It
I believe some of the things we 've added into that with our loyalty program, Hilton HHonors—some of the things we offer—are
Hilton Honors has co-partnered with CitiBank Visa to continue to add additional rewards and benefits to its HHonors members. With the approved enrollment and acquiring of a no annual fee HHonor Citibank credit card, the member will automatically become a silver member and Fast-tracked to Gold if 4 stays are completed within the first 3 months. Hilton will also apply a credit to the HHonors member’s account of 75000 bonus points. If the member stays at a Hilton For every dollar spent at a Hilton brand hotel the member will receive an additional 6 bonus points, 3 bonus point for every dollar spent at a supermarket, drug store or gas station. For every year the member has the card they will receive an additional 10000 points on the anniversary of possessing the card provided the member spends $1,000 (Citibank, n.d.).
It would have been good if this fundamental vision was in place right at the very beginning of the company’s formation. In the end it is the customers that make the company, so it makes sense to work towards satisfying this customer relationship. To become profitable and achieve market share are secondary objective that can be measured on a annual basis and overall company well being targets can be rewarded with incentives that link into the company’s performance as opposed to individual contribution to the company’s success.
Marriot knows needs of its guests and proves it by implementing a gain system for collecting points at various brands such as: Ritz-Carlton, Renaissance, Residence Inn. It is true that nowadays, people appreciate immediate payback and Marriot Loyalty program invented dining gift cards and spa and wellness treatments in order to thank their customers. It might be not a very grateful reward, but this program performs it properly.
In order to evaluate the effect of personalized service on the customers’ loyalty, first, I will look through the reviews about one hotel on different websites. Some guests are willing to give their reviews about the hotel that they stay after they leave. If the employees of the hotel provide some special service, especially the personalized service, the customers will give great reviews to the hotel. And second, I will conduct a questionnaire to let the customers who always stay at the luxury brand hotels finish. More luxury the hotels are, more customers will receive the personalized service because the luxury brand hotels have the capital and enough employees to provide special service. At the last, I will collect some information from my past workplace which is a luxury brand hotel. If the employees of that hotel received the thank-you letter, the hotel will put the thank-you letter on the Daily Rehearsal which is a newsletter
Their supply management professionals in corporate offices and their six regional offices negotiate and implement contracts and agreements with suppliers of products and services in three key areas – Food & Beverage (F&B), Guest Rooms and Public Space, and Property Operations