Hilton HHonors programWord文件下载.docx

Hilton HHonors programWord文件下载.docx

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Strength

Joblali（2012）mentionedthat,oneofthemainstrengthslaysintheDoubleDippingservicethatHiltonHotelsCorporationandHiltonInternationalprovidestoitscustomers.Hiltonwastheonlyhotelchainthatoffereddoubledipping.Whatmakesthedoubledippingprogramuniqueisthat,inthecaseofotherhotels,customerscanearnpointsonlywhentheystayinahotel.ButwiththeHhonorsprogramcustomerscanearnpointsasandwhentheyusetheservicesofthevariousjointpartnerswiththisprogramforinstancepartnerairlines,rentalservices,FTDfloristsandMrsFieldcookies.CustomerscanusethesepointsnotonlytoredeemitforhotelstaysandflyermilesbutalsotobuyproductsandservicesfromthepartnercompaniessuchasFTDfloristsandMrsFieldcookies.ThisisanaddedincentiveforthecustomersbecauseinsteadofjoiningaloyaltyprogramofindividualservicestheycanjoinHhonorsprogramandbeapartofarangeofserviceprovidersincludedintheprogramandavailtheirbenefits.PartnersarewillingtocooperateastheDoubleDippingprogramisnotcompetingagainsttheirownprograms. 

Itgivesthepartnersaccesstoeachother’scustomerbaseandhelpsinattractingthemtotheirbusinessandmakethemloyal.Thishelpsindrivingtherevenuesofallthepartnersinvolved.AninvestmentinFTDFloristskeptcostsdownwhileabroaderrangeofrewardsweregiventotheloyalcustomers.

Furthermore,asothercompetitors’programscouldonlyoffereithermilesorpoints;

thisstrengthcouldbeseenasHilton’scompetitiveadvantage.Henceitwasabletocreatevalueinitscustomer’seyes.

Themostrecognizedbrandname;

theHhonorsprogramalsoenhancestheHiltonbrandasmentionedinthecasethatHiltonhave2.5millionmembers,collaboratingwithotherpartnerslikeairlineswhichhave20,30,40millionmembersit’sawaytobuildarecognisedbrandthatisknownaroundtheworldandincreasingcustomerloyalty.

Weaknesses

Management:

HiltonHHonorsistheonlyguestrewardprogramforbuildingcustomers’loyaltyworldwide.However,theprogramisnotdirectoperatedbyHiltonHotelsCorp.andHiltonInternationalCorp.butbyHiltonHHonorsWorldwide.BasedonstandpointsofHHCandHIC,theydonothaveaccesstomanageandcontroltheprocessofprogram.SoHHCandHICarenoteasytoimprovetheprogramforsatisfyingcustomers’expectationinthefirsttimeifguests’needschanges.Ontheotherhand,theprogrammaybehardlyintegratedintoHilton’sorganizationcultureandlong-termstrategy.

Cost:

Mostimportantly,thecostwoulddefinitelyincreaseasthemanagementcomplexity.WecanfindtherelevantfigurestoillustratethisforHHWincomestatement.TheexpenseofHHW（paymenttoHHCandHIC）is$12,654andrevenueofHHW（fromHHCandHIC）giventoHHWistotally$49.855.ThenumbershowsthattheexpenseofHHCandHICfortheprogramissolarge,reaching$37,200.Sothecostcouldbeconsideredasaninevitableweakness.

Q1（B）StrengthsandweaknessesoftheHiltonHHonorsprogramfromthestandpointsofmemberproperties（franchisedhotels）

AccordingtoJohn,D.andStowe,S,（2005）,mentionedthat,thesuccessofthisprogramhasenabledthehotelchaintoattractmorefranchiseesorhotelstosignmanagementcontractswiththem.TheirpartnershipwithallkindsofcompaniesprovidedHiltontoaccessitspartner’scustomersandrewardsweremorefrequentlyattainedasthecompanieswhoparticipatedinthisprogramweremoreeasilyreached.Theloyaltyprogramwasconsideredtobeagreatservicetodrivebusinesswhiletheprogramscostwascomparableorlowerthancompetitors.

ThefranchisesareunderHiltonbrandwhichmeanscostsforadvertisingarecutsincetheprogramisstandardised.Alsoitwascomplementaryintermsofallowingjointcustomerstoearnbothcurrencies.Drivebuss,byworkingwiththeHiltonbrand.Lastlytherewasanincreaseincontribution（$177millionincreasedcontributionagainstspendingof$49.9million）.

FromthetableofU.S.Lodgingindustry,wecanfindsomenotpositivedates.ThenumberofHIC’sfranchisedprosperitiesis“Zero”,andthatofHHCalsoonlyhas207.Thetotalquantity（207）ofHICandHHCfranchisedprosperitiesmeansthatHiltonHHonorsprogramwouldbeunderstoodandenjoyedbyfewcustomers.

Forinstance,comparedtoHilton,Starwood’sfranchiseprosperitiesare291,whichismorethanthatofHilton.Therefore,customersenjoyingSPG（StarwoodPreferredGuest）ofStarwoodwouldmorethanthatofHiltonHHonorsprogram,whichcontributestothedecreaseintermsofrevenuesfromHiltonHHonorsprogram.

Q1（C）StrengthsandweaknessesoftheHiltonHHonorsprogramfromthestandpointsofguests.

ThemostimportantstrengthofHiltonHHonorsfromthestandpointofguestsisimprovingcustomerloyaltybyredeemofpoints,promotionalproductsandservicesorconverttomilesinairlinefrequent-flyerprogramstoreducethecostoffrequentlytravelcustomers.TheapplicationforthemembershipofHiltonHHonorsisfreeforanyone,whenthememberaccumulatedenoughpointsintheprogram,theycouldredeemthemforstaysatHHonorshotels,usetobuyproductsandservicesfrompartnercompanies,orconverttoairlineprograms.Thesepoliciescanlowerthechargesofapatron,inordertosustaintheirdesiretolodgeatHiltonhotelnexttime.

TheotherstrengthiscustomerserviceofHHonorsprogram,ifthereisanyproblemfromaguest,theguestcancontactthecustomerserviceteam.Theteamalsooutboundafter-visitcallingandtheycallHHonorsmembersbecausetheyarethebestdatabaseandthemostcriticalgueststheyhave.Membershadotherbenefitsbesidesfreestays.Theyhadapriority-reservationtelephonenumbertoeasilyreserverooms,andcheck-inwentfasterthannormalcustomersbecauseinformationonpreferenceswasonfilewhentheywereregisteredofmembership.Memberswerefavouredovernon-memberswhentheyaskedforlatecheckout.Ifmembersweredissatisfied,theywereguaranteedaroomupgradecertificateinexchangeforaletterexplainingtheirdissatisfaction.

ThethirdstrengthofHHonorsprogramistoincentivepurchasingofthefrequentcustomers.MemberswereawardedSilverVIPstatusiftheystayedatHHonorshotelfourtimesayear;

theywillearna15%bonusonbasepoints,andwillbegivenacertificateforanupgradetothebestroominthehotelaftereveryfifthstay.SimilarwithSilverVIP,therequirementandpromotionishigheroftheGoldVIP.Thetop1%ofmemberswasgivenDiamondVIPstatus.ThislevelwasnotmentionedinpromisedbenefitsbutHHonorswilldosomethingunexpectedtotheDiamondVIPmembers.ThiskindofVIPmemberpolicyisaneffectivetooltomaintaincurrentcustomersandmakethemfeelinsidetheorganizationinordertocheck-inmoreandmore.

TheweaknessofHiltonHHonorsprogramisthatonlyfrequenttravellerscanpossessthechancetousethepromotions,redeemablepointsandanyotherservicestheprogramoffered.GuestsidentifiedbytheirHHonorsorairlinemembershipnumbersoccupied22.5%ofalltheroomsoccupiedintheHiltonHotelsandHiltonInternationalnetworkinayear.TheyweremuchsmallerproportionofalltheguestswhostayedwithHiltoninayearbecausetheytendedtobefrequenttravellers.NotallthecustomerscanenjoytheprogrameveniftheyjoinedtheHHonorsprogram;

thisisnotattractiveforthosecustomerssothattheywillnotcontinuechooseHiltonHoteltostay.

Theindustryestimatedthatmembersofthefrequent-stayerprogramsofallthemajorhotelchainsaveragelybelongedto3.5programs.ThismeansthememberofHHonorsmaybebelongstotheother2or3hotel’sguestrewardsprogram.Althoughthecheck-inrateofthecustomerishigherinHiltonhotelsinces/heisthememberofHHonorsprogram,butalsotheotherhotels’check-inrate.

Q1（D）StrengthsandweaknessesoftheHiltonHHonorsprogramfromthestandpointsofcorporatetraveldepartments.

ThestrengthofHiltonHHonorsprogramfromthestandpointofcorporatetraveldepartmentishelpingthetravelmanagersgaincompliancetotheiroveralltravelpolicy.AsignificantproportionofHilton’sbusinesscamefromcontractswithlargecorporateclients,sothatHiltonoffereddiscountifthecorporationdeliveredenoughstays.ThecorporatecansavealotofmoneybyselectingHiltonHoteltostay,andthestaffsofthecorporatewillbeimpressedbytheluxuryamenitiesofthehotel,sothattheywillcometoHiltonagainoncetheyhavechance.Bycapturingguests’preferencesandmakingthemavailabletoenhancefuturestayexperiences.

Weakness

Theweaknessisthattheloyaltyofthesecorporateclientsisnothigh.TheHilton’sresearchsuggeststhataquarterofthefrequenttravellersaremembersofloyaltyprogramsbutdon’tconsolidatetheirbusinesswithonechain.Theytypicallydon’tseethevalueinanyoftheloyaltyschemesbecausetheyhaven’tchangedtheirstaybehaviourtoseethebenefits.

Thecashvalueofredemptionrewardwillbedirectlytothecompany,sothattherealconsumers-theguestswillnotearntherewardssothatHHonorsprogramisnotane