Hilton Hotels Conversation

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Situation Analysis (Background to the issue) Hilton is one of the top seven prefessional business hotel in U.S.A. There are two unrelated companys running Hilton brand-Hilton Hotels Coprporation(HHC) at California and Hilton International(HIC) near London in England. In 1997, the both of them agreed to launch Hilton HHonors loyalty program at their hotels for sales and marketing. In 1999, the head of Hilton HHonors, Jeff Diskin, read an article headline, “Hotels raise the Ante in Business-travel Game”. Known, the main competitor Starwood Hotel and Resorts International had raised its’ cost 50 million for advertising campaign. The competitor’s programs will help to increase and maintain more business travellers and increase whole industry cost. Diskin met …show more content…

Each of them provide different segments. Marriott operated conference center, residence and franchised hotels. Hyatt operated internationally and ran joint marketing programs. Only Starwood goes against Hilton Hotels because they present the new frequent-guest program to compete with Diskin’s HHonoors Worldwide programs. Collaborators Hilton corporates with hundreds of franchised institutes including small hotels, dependent stores and flagship properties. It provides customers double rewards like double dipping policy allows customers accumulate points and mileage at same time. Working with franchisees increase Hilton’s advantage in receiving more profit customers and this strength the relationship between Hilton and its collaborators. From Hilton’s income statement in 1998, the average nightly revenue per room was $158. Context of the program There are four types of tiers come from Starwood, Hilton, Hyatt and Marriott (from highest to lowest). Even though, Starwood has more tiers than Hilton, Hilton has more loyal customers. SWOT

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