By doing so, both Hilton and its franchisees can have benefits because: When customers are passionate about the brand, what they want is experience and they will be willing to pay higher price to have such experience. 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. The system will now accept direct points that will be used to pay for stays. To begin with, the strengths of this HHonors program will be analyzed further down.

Therefore, it is worth to continue the program. All unreserved rooms are available to all guests, including those paying with points. How should Hilton respond to Starwood..? Rewards therefore tend to be ever-higher. If Hilton stops offering generous rewards through its loyalty programs, its repeating customers might go to other hotel chains. Frequency programs also act as defensive measures that combat competing schemes. The Starwood program is a threat to Hilton in terms of attracting new customers.

Casse does the HHonors program contribute to this profitability for Hilton? In doing so, Hilton chain can attract and retain more business cqse customers and create long term customer loyalty. 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. We use cookies to give you the best experience possible.

Executive summary Hilton is running a loyalty anaylsis to create and retain loyal customers as its competitors do. In addition to this, the company has also done away with papers.


The system will now accept direct points that will be used to pay for analyais. On the other hand, Hilton HHonors guest reward program has a competative advantage over Starwood’s program because Hilton’s loyalty program has been successful compared to others in the hotel industry. FAQ How do I receive the solution? HHonors program is one of the ways that helps in attracting and retaining customers as well as increasing their loyalty to the firm.

Rewards therefore tend to be ever-higher. Although it might seem that other operating costs have been added due to this program, the program attracts more cash than it spends.

Therefore, this program works to increase competitive advantage of Hilton. On average, how much did HHW anxlysis each hotel for redeemed rooms?

hilton hhonors case study analysis

Remember me on this computer. If franchisees had the choice of putting Hilton or one of Starwood brand on their properties, they can assess the value of doing so by comparing the value generated by the frequent-stay programs under both brands. Therefore, revenue at higher occupancy levels will generate profits for Hilton. Second, Hilton can spend more money on the marketing efforts to reposition the brand, create brand passion and brand loyalty.

Newer Post Older Post Home. 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”. It would probably be able hhonorz determine the amount of revenue paid to it by the resulting corporation and hence more control of its profits and the subsequent benefits.


The loyalty program can encourage them to spend even more. Shudy, its other features look less attractive compared to those of Starwood. Thus, it promotes business and all the services that a firm is offering.

(DOC) Hilton Case Analysis | Firat Sekerli –

For instance, the point value for Starwood and the eligible charges look more attractive than that of Hilton. Michael MBA student, Boston.

hilton hhonors case study analysis

The most important feature of the program that distinguishes itself from competitors is Double Dipping which lets guests earn milage for the same stay in partner frequent-flyer programs. 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 hhobors customers.

Hilton HHonor (case analysis)

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How should Hilton spend the additional revenue? However, Diskin should advice Hilton to first of all improve its program for the existing customers before thinking on how to attract other customers.

The value is greater than costs more than 19 times. In order to offer competitive advantage, hotel firms have to be creative in terms of the way they attract customers.

Lastly, the hotel raised the rate of reimbursed hotels during the height of seasonal demand.