Hilton Hotel Differentiation

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Hilton Hotels: Brand Differentiation through Customer Relationship Management Background Hilton Hotels is one of the biggest players in the US lodging industry. It contributes to about 9% of the total rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. Lodging industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as well as franchising model with the real estate owners. One of the key features of lodging industry is low switching costs for customers. There is very little margin to differentiate from the major competitors in the industry which include Marriott international, IHG, Accor etc. Key success factor in lodging market is…show more content…
This was mainly due to the large number of diversified hotels in the chain across the globe Issues resolved by CRM package * With the help of CRM along with recognition of the customer providing personal services was also possible. This helps in tailoring the experience according to customer needs and creating a long term relationship. For eg. Rooms can be pre-assigned and prepared according to customer preferences. * It was also possible to classify customers along different levels (Gold, Diamond etc.) and providing them with differential services. Tiered system allowed the hotels to prioritize pre-assignment and service delivery by identifying most valuable guests. This results in improving efficiency of service by focusing more on most valuable customers. * To maintain brand name uniform services are to be maintained across the hotel chain. With centralized OnQ infrastructure, it became possible for Hilton Hotels to replicate their services across the various hotels across the globe. * The CRM systems helped the company in differentiating its service as well as optimizing some of the activities which lead to the reduction in operational costs. For eg. OnQ Reservation used data from the CRM, allows the agent to access callers’ personal dossier and update their preferences. This helped in reducing the call time as well as promoted the cross selling. Another example is having information prior to

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