hilton - case study

1. HHW : Loyalty Wars
By:
Sec –A, Group-12
Amit Pal Singh Bagga FT12187
Siddharth Yadav FT12163
Sushant Midha FT12165
Tushar Arora FT12168
Vikram Choudhary FT12172
Sec-A, Group 12 1

2. Problem Definition
 Diskin had to decide whether to match the Starwood
new loyalty program or let it pass.
 Do Hilton have to compete for point to point with
Starwood’s program.
 Or do Hilton want to take different positioning and
hold on their loyal members and differentiate
Hhonours from Starwood and other competitors?
Sec-A, Group 12 2

3. Situation
 Three segments of customers:
 Business segments
 Convention segment
 Leisure segment
 Competition:
 Starwood
 Hyatt
 Hilton
 Marriot
 Hilton Hotel Corporation (HHC) & Hilton International
Corporation (HIC) unified in 1997 to have common brand
Hilton.
Sec-A, Group 12 3

4. Situation
 Hilton Hhonours Worldwide
 Membership was free
 Members earned points during their stay at HHC or HIC
 When earned enough points stay at hotel or airlines mileage is
redeemed.
 Double dipping
 Four tiers of membership:
 Blue
 Silver
 Gold
 Diamond
 HHW partnered with
 25 airlines
 3 car rental companies
 Hilton credit card from American express
 FTD florist and Mrs. Field’s cookies.
Sec-A, Group 12 4

5. Situation
 New loyalty program by Starwood.
 Features:
 No blackout dates
 No capacity control
 Paperless rewards
 Hotel reimbursement
Sec-A, Group 12 5

6. Alternatives
 Continue building on active bonding (Max. emotional
& rational bonding)
 Take a different position and hold on to its members
and keep differentiating HHW from Starwood and
other competitors.
 Emphasis on Double Dipping.
 Include features like no blackout dates, no capacity
control, paperless rewards etc.
 Using database of HHW and cooperating airlines to
keep long track records of customer preferences as well
as dislikes.
Sec-A, Group 12 6

7. Solution
 Hilton should not compete for point to point.
 Hilton should emphasize on its core competency and
its differentiating loyalty feature of double dipping.
Sec-A, Group 12 7

8. Thank You
Sec-A, Group 12 8