Hilton HHonors Worldwide: Loyalty Wars
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 attracted based on how they earn points, and the benefits they get when they ...view middle of the document...
• Hilton competing with other players by introducing more generous loyalty programs
• Distinction between competitors
• Starwood-introducing new guest program features, may become market leader
• Operating procedure information easily available to competitors and hotel industry
• Less loyal customers to targeted customers of flyer programs (Loyalty toward Hilton HHonors rather than brand)
• Less loyal customers due to competitors
• Loyal customers’ brand loyalty switching
• Loyal customers’ loyalty toward the Hilton HHonors rather than the brand itself
• Loss of customers
STATEMENT OF OBJECTIVES
• Responding towards Starwoods Program for retaining brand position and image.
• Increase loyalty of members towards brand rather than guest program.
• Increase switching costs of Hilton HHonors Program.
|Strengths |Weakness |
|Powerful brand- known as global leader |Difficult to find qualitative employees |
|Excellent customer support program |Employees require extra training to serve Western guests |