Hilton Case Study Summary

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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.
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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 Analysis
Strengths
• Hilton has a good reputation and brand awareness in the world compare to other brands in the hotel industry.
• Only Hilton provides the customer a distinction point collection plan that uses double dipping method to accumulate stay points and mileage point.
• It is tracking their guests’ preferences and experience in order to provide or improve higher quality service, low promise but high delivery.
• Hilton collaborate with a lot of franchises, like 25 airlines, 3 car rental firms and many other smaller hotels that generate synergy effect. After reunion HHC and HIC, cost leadership is achievable.

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