Hilton
Situation:
Starwood unveil an aggressive frequent guest program
Issue statement:
How can H maintain its customers loyalty in response to Starwood
Case analysis
Customer
3 segments average member belongs to 3.5 programs want a streamlined reward-redemption process and points that do not expire most important feature: room upgrades, airline miles, free hotel stays, a variety of on-property benefits and services game players corporation Hilton: managed by Hilton hotels corporation and Hilton international
492 hotels, 154000 rooms revenues of $158 per night per guest occupancy exceeded break-even well-recognized brand
HHoners program:
4 membership tiers-- blue, silver, gold, diamond double dipping competition Hilton, Starwood, Hyatt & Marriott (chart)
Starwood preferred guest program
No blackout dates
No capacity control
Paperless rewards
Hotel reimbursement
HHonors Strength
More competitive than competitors, low cost
No charge customized hotel experience build loyalty and customer lifetime value extensive partnerships double dipping well recognized brand image, developed loyalty program weakness average member is part 3.5 reward programs only 1 in 5 member stays can be attributed to the program most member never realize the full benefits of the reward program management not satisfied with customers service experience opportunities business segment professional association, corporate partnerships better communication of benefits expansion of network distribution threats Starwood preferred guest program response from other competitors
Implications
overall high brand recognition , but low bran loyalty consistent valuable customer experience is key competitive reduced spread of patronage
Alternatives
status quo pros offering are more competitive already cost of program has been decreasing cons customer experience does not meet management expectations does not change customer loyalty toward programs adopt Starwood’s program pros
keep
Starwood unveil an aggressive frequent guest program
Issue statement:
How can H maintain its customers loyalty in response to Starwood
Case analysis
Customer
3 segments average member belongs to 3.5 programs want a streamlined reward-redemption process and points that do not expire most important feature: room upgrades, airline miles, free hotel stays, a variety of on-property benefits and services game players corporation Hilton: managed by Hilton hotels corporation and Hilton international
492 hotels, 154000 rooms revenues of $158 per night per guest occupancy exceeded break-even well-recognized brand
HHoners program:
4 membership tiers-- blue, silver, gold, diamond double dipping competition Hilton, Starwood, Hyatt & Marriott (chart)
Starwood preferred guest program
No blackout dates
No capacity control
Paperless rewards
Hotel reimbursement
HHonors Strength
More competitive than competitors, low cost
No charge customized hotel experience build loyalty and customer lifetime value extensive partnerships double dipping well recognized brand image, developed loyalty program weakness average member is part 3.5 reward programs only 1 in 5 member stays can be attributed to the program most member never realize the full benefits of the reward program management not satisfied with customers service experience opportunities business segment professional association, corporate partnerships better communication of benefits expansion of network distribution threats Starwood preferred guest program response from other competitors
Implications
overall high brand recognition , but low bran loyalty consistent valuable customer experience is key competitive reduced spread of patronage
Alternatives
status quo pros offering are more competitive already cost of program has been decreasing cons customer experience does not meet management expectations does not change customer loyalty toward programs adopt Starwood’s program pros
keep