Hilton Honors Worldwide

1328 Words6 Pages
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
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