Otherwise, its other features look less attractive compared to those of Starwood. The second way is that the program helps the company generate information about its customers and, therefore, improve on where it is not working well according to its customers. Rewards therefore tend to be ever-higher. The fixed cost of hotel firms is usually higher and, therefore, hotels may suffer during off peak seasons. Overall profitability of a hotel firm is determined by the number of customers it attracts. Thus, it promotes business and all the services that a firm is offering. This information can be found on database.

There are two reasons why this solution is the best: In addition to this, the company has also done away with papers. Quantify the value of the Hhonors program to Hilton. In addition, these programs act as sophisticated sales promotion. In particular, Hilton honors program has partnered with twenty-five airlines around the world, three car rental companies, and a large number of other companies, where people can earn miles and spend them as they wish. By purchasing, you agree to our terms of service. Therefore, from the data, there were , nights that were redeemed.

Hilton HHonor (case analysis)

Hilton, therefore, can not compete with other chains by offering more attractive loyalty program. Therefore, from the data, there werenights that were redeemed. The fixed cost of hotel firms is usually higher and, therefore, hotels may suffer during off peak seasons. What can Hilton do, whenever a competitor ups the ante? This information can be found on database.

HHW program helps Hilton to run at higher hipton level and hence revenues generated by the program will contribute to make profits for Hilton. This gives the opportunity to anyone that would like to join this “Hilton residence” to be welcomed and start his collection of points.

With the use of questionnaires, personal interviews with the members and a database, which give specific information about customer’s preferences and needs, this program attempts to meet everyone’s expectations and make its clients feel that the organization care about them, because they strongly believe that “people care about organizations that care about them”.


Instead of matching with Starwood’s new strategy, Hilton should take a different approach to its existing loyalty program and focus on how to make it more attractive in order to maintain its current customer base and to attract new ones. A loyal guest can earn extra points because of referring Hilton to other qualified prospective customers. By doing so, both Hilton and its franchisees can have benefits because: This currency is used to purchase several tickets in order to reward loyal customers.

The rationale reason why customers use loyalty program is that they want to make profits out of loyalty programs. We are the marketplace for case solutions – by students, for students. A key element to represent in which way a company exists, competes others and has either auspicious or inauspicious future in the world market is to analyze deeply the company’s strengths and weaknesses.

Rewards therefore tend to be ever-higher. To evaluate the value of each program, first they need to check whether they are running above or below breakeven levels, calculate the value of incremental occupancy generated by each program and associated costs, then compare values and costs of two programs.

It has removed blackout dates that other reward programs had implemented during the height of seasonal demand.


Not the questions you were looking for? In addition, these programs act as sophisticated sales promotion. Moreover, members can enjoy free stays by using their points and also they enjoy priorities for instance priority-reservation telephone number, faster check-in, late checkout and other services provided, for instance the silver members can be upgraded to the best room in the hotel after the fifth stay and gold VIP member can be upgraded to the best room after every fifth stay, which can occur even at the time of check-in.


How should Diskin advise Hilton to respond? Additionally, becoming a loyalty program member gives another advantage to Hilton’s program.

hilton hhonors case study analysis

In case Hilton sold all its properties and maintains the ownership of HHonors, the resulting corporation would be attractive. The first way it creates brand is by forming a system of rewarding loyal customers. The strengths mentioned above seem to result in having satisfied customers and a fully informed database for future development.

This shows how this program is significant to the operation of this hotel, in addition to offering other affordable services to customers. Although it might seem that other operating costs have been added due to this program, the program attracts more cash than it spends.

After this, Hilton should carry out an evaluation to determine what it has gained so far from the HHW program. Starwood has also removed the capacity control. It should look for a way to match or surpass the competitive advantage of Starwood Preferred Guest Program.

hilton hhonors case study analysis

The currency used by Hilton HHonors is points earned from aanlysis loyalty program in order to reward loyal customers and to attract several other customers to the Hilton brand.

First, Hilton should spend the additional revenue to customize and differentiate current loyalty program to attract more prospect, create and retain loyal customers. Can you quantify the value of the HHonors program to the Hilton brand?

Use your credit card. Giving more rewards does not necessarily mean the program will attract more customers because the new program reduces the cost-effectiveness and increases staying costs. Best decision to get my homework done faster!