Case Presentation on

Hilton HHonors
Worldwide:
Loyalty Wars
Presented to: Dr. Raju Rathod
Presented By: Bhargav Pancholi & Divyesh
Bhuptani
G. H. Patel Postgraduate Institute Of Business
Management
Hilton HHonors Worldwide: Loyalty Program
 Introduction of Case
• HiltonHHonors: Hilton’s guest reward program for building loyalty to
the Hilton brand worldwide.
• Loyalty marketing programs: Industry’s most important marketing
tool
• Starwood Hotels and Resorts Worldwide Inc.: An aggressive
frequent guest program (Starwood Preferred Guest Program.)
coupled with a 50 million advertising budget.
• The key features of Starwood’s new program include a) No blackout
dates, b) No capacity control, c) Paperless rewards, and d) Hotel
reimbursement: Reducing cost effectiveness of the other brands’
loyalty programs.
• Case is about how Diskin should respond to Starwood’s loyalty
program.
 Que - 1 (A)
What are strength and weaknesses of HHW loyalty Program from the
stand point of Hilton Hotel Corporation & Hilton International?
• Strengths:
1. Customer relationship management: Personal Connection,
Feedbacks, Customisation, Profile Building.
2. Opportunity to collaborate with Partners: 25 Airlines, 3 Car rental
firms & many other firms enables HHW to gain the customers of
partners also.
3. Double Dipping: Points redeem can be used for all the services and
can avail partly benefit from all partners
4. Able to target all segment of customer by franchisee model with the
other properties.
5. Precise yield and revenue management (20% Increment in revenue)
• Weaknesses:
1. Low Standardisation of Operation
 Que -1 (B)
What are strength and weaknesses of HHW loyalty Program from the
stand point of Franchised properties?
• Strengths:
1. Increase reputation in industry
2. Increased sales volume due to loyalty program
3. Support for Loyalty program along with training, management, financial
advices
• Weaknesses:
1. Loss of control
2. Increase in cost (Due to Loyalty Program, Labour cost, Royalty Fees)
 Que -1 (C)
What are strength and weaknesses of HHW loyalty Program from the
stand point of Customers?
• Strengths:
1. Earn Rewards by Points gained from the stay at HHW
2. Personalised experience
3. Priority Services
4. Reward against Reasonable complaints
5. Double Dipping: Use reward point for other services like airlines, cab
service, dining, etc.
• Weaknesses:
1. Blackout Dates
2. Limited access of rooms
 Que -1 (D)
What are strength and weaknesses of HHW loyalty Program
from the stand point of Corporate Travel Departments?
• Strengths:
1. Reduce cost by contract & loyalty program
2. Discounted rates
3. Gain compliance of the employees who preferred other hotels.
• Weaknesses:
1. Limited capacity & accessibility of Hilton- 61 countries
(Starwoods - 72 countries & Bass Hotel - 90 countries)
2. Gets discounted rates only Hotel gets enough stays from
corporation
 Que-2
How does the value generated to Hilton by the
program compare to its cost?
 Non Financial Benefits:

• High quality service to members

• Personalised experience to customers

• Positive word of mouth (Brand Equity Goes

Up)
 Que - 3
What is Starwood attempting to do and how should Jeff Diskin
Respond?

• Starwood:

1. Develop Starwood Brand

2. Increase Brand Equity

3. Increase market share

4. Target individual business traveller

5. Differentiate from competitors by providing four exceptional features

(No blackout dates, No capacity control, Paperless reward, Hotel
reimbursement)
 Diskin’s Dilemma

Improve Current Loyalty Program to Match

Starwood

Surpass Starwood’s Loyalty Program

Try not to match Starwood’s Loyalty Program

Improve Current Offering
Increase number of points given to members
for their stay

Advertise double dipping feature (USP)

Increase network size (More hotels leads to

More customers)

Enhance customer relationship management

 Conclusion
It could be said that loyalty marketing
programs are imperative to compete
in the hotel industry.

As such, hotel brands should

continuously improve their respective
loyalty programs to ensure success
for many years to come.
Thank You!