Hilton HHonors programWord文件下载.docx

1、StrengthJoblali （2012） mentioned that, one of the main strengths lays in the Double Dipping service that Hilton Hotels Corporation and Hilton International provides to its customers. Hilton was the only hotel chain that offered double dipping. What makes the double dipping program unique is that, in

2、 the case of other hotels, customers can earn points only when they stay in a hotel. But with the Hhonors program customers can earn points as and when they use the services of the various joint partners with this program for instance partner airlines, rental services, FTD florists and Mrs Field coo

3、kies. Customers can use these points not only to redeem it for hotel stays and flyer miles but also to buy products and services from the partner companies such as FTD florists and Mrs Field cookies. This is an added incentive for the customers because instead of joining a loyalty program of individ

4、ual services they can join Hhonors program and be a part of a range of service providers included in the program and avail their benefits. Partners are willing to cooperate as the Double Dipping program is not competing against their own programs. It gives the partners access to each others customer

5、 base and helps in attracting them to their business and make them loyal. This helps in driving the revenues of all the partners involved. An investment in FTD Florists kept costs down while a broader range of rewards were given to the loyal customers.Furthermore, as other competitors programs could

6、 only offer either miles or points; this strength could be seen as Hiltons competitive advantage. Hence it was able to create value in its customers eyes.The most recognized brand name; the Hhonors program also enhances the Hilton brand as mentioned in the case that Hilton have 2.5 million members,

7、collaborating with other partners like airlines which have 20,30,40 million members its a way to build a recognised brand that is known around the world and increasing customer loyalty.WeaknessesManagement: Hilton HHonors is the only guest reward program for building customers loyalty worldwide. How

8、ever, the program is not direct operated by Hilton Hotels Corp. and Hilton International Corp. but by Hilton HHonors Worldwide. Based on standpoints of HHC and HIC, they do not have access to manage and control the process of program. So HHC and HIC are not easy to improve the program for satisfying

9、 customers expectation in the first time if guests needs changes. On the other hand, the program may be hardly integrated into Hiltons organization culture and long-term strategy. Cost: Most importantly, the cost would definitely increase as the management complexity. We can find the relevant figure

10、s to illustrate this for HHW income statement. The expense of HHW （payment to HHC and HIC） is $12,654 and revenue of HHW （from HHC and HIC） given to HHW is totally $49.855. The number shows that the expense of HHC and HIC for the program is so large, reaching $37,200. So the cost could be considered

11、 as an inevitable weakness. Q1 （B） Strengths and weaknesses of the Hilton HHonors program from the standpoints of member properties （franchised hotels）According to John, D. and Stowe, S, （2005）, mentioned that, the success of this program has enabled the hotel chain to attract more franchisees or ho

12、tels to sign management contracts with them. Their partnership with all kinds of companies provided Hilton to access its partners customers and rewards were more frequently attained as the companies who participated in this program were more easily reached. The loyalty program was considered to be a

13、 great service to drive business while the programs cost was comparable or lower than competitors.The franchises are under Hilton brand which means costs for advertising are cut since the program is standardised. Also it was complementary in terms of allowing joint customers to earn both currencies.

14、 Drive buss, by working with the Hilton brand. Lastly there was an increase in contribution （$177 million increased contribution against spending of $49.9 million）.From the table of U.S. Lodging industry, we can find some not positive dates. The number of HICs franchised prosperities is “Zero”, and

15、that of HHC also only has 207. The total quantity （207） of HIC and HHC franchised prosperities means that Hilton HHonors program would be understood and enjoyed by few customers. For instance, compared to Hilton, Starwoods franchise prosperities are 291, which is more than that of Hilton. Therefore,

16、 customers enjoying SPG （Starwood Preferred Guest） of Starwood would more than that of Hilton HHonors program, which contributes to the decrease in terms of revenues from Hilton HHonors program.Q1 （C） Strengths and weaknesses of the Hilton HHonors program from the standpoints of guests.The most impo

17、rtant strength of Hilton HHonors from the standpoint of guests is improving customer loyalty by redeem of points, promotional products and services or convert to miles in airline frequent-flyer programs to reduce the cost of frequently travel customers. The application for the membership of Hilton H

18、Honors is free for anyone, when the member accumulated enough points in the program, they could redeem them for stays at HHonors hotels, use to buy products and services from partner companies, or convert to airline programs. These policies can lower the charges of a patron, in order to sustain thei

19、r desire to lodge at Hilton hotel next time. The other strength is customer service of HHonors program, if there is any problem from a guest, the guest can contact the customer service team. The team also outbound after-visit calling and they call HHonors members because they are the best database a

20、nd the most critical guests they have. Members had other benefits besides free stays. They had a priority-reservation telephone number to easily reserve rooms, and check-in went faster than normal customers because information on preferences was on file when they were registered of membership. Membe

21、rs were favoured over non-members when they asked for late checkout. If members were dissatisfied, they were guaranteed a room upgrade certificate in exchange for a letter explaining their dissatisfaction. The third strength of HHonors program is to incentive purchasing of the frequent customers. Me

22、mbers were awarded Silver VIP status if they stayed at HHonors hotel four times a year; they will earn a 15% bonus on base points, and will be given a certificate for an upgrade to the best room in the hotel after every fifth stay. Similar with Silver VIP, the requirement and promotion is higher of

23、the Gold VIP. The top 1% of members was given Diamond VIP status. This level was not mentioned in promised benefits but HHonors will do something unexpected to the Diamond VIP members. This kind of VIP member policy is an effective tool to maintain current customers and make them feel inside the org

24、anization in order to check-in more and more. The weakness of Hilton HHonors program is that only frequent travellers can possess the chance to use the promotions, redeemable points and any other services the program offered. Guests identified by their HHonors or airline membership numbers occupied

25、22.5% of all the rooms occupied in the Hilton Hotels and Hilton International network in a year. They were much smaller proportion of all the guests who stayed with Hilton in a year because they tended to be frequent travellers. Not all the customers can enjoy the program even if they joined the HHo

26、nors program; this is not attractive for those customers so that they will not continue choose Hilton Hotel to stay. The industry estimated that members of the frequent-stayer programs of all the major hotel chains averagely belonged to 3.5 programs. This means the member of HHonors may be belongs t

27、o the other 2 or 3 hotels guest rewards program. Although the check-in rate of the customer is higher in Hilton hotel since s/he is the member of HHonors program, but also the other hotels check-in rate. Q1 （D） Strengths and weaknesses of the Hilton HHonors program from the standpoints of corporate

28、travel departments.The strength of Hilton HHonors program from the standpoint of corporate travel department is helping the travel managers gain compliance to their overall travel policy. A significant proportion of Hiltons business came from contracts with large corporate clients, so that Hilton of

29、fered discount if the corporation delivered enough stays. The corporate can save a lot of money by selecting Hilton Hotel to stay, and the staffs of the corporate will be impressed by the luxury amenities of the hotel, so that they will come to Hilton again once they have chance. By capturing guests

30、 preferences and making them available to enhance future stay experiences. WeaknessThe weakness is that the loyalty of these corporate clients is not high. The Hiltons research suggests that a quarter of the frequent travellers are members of loyalty programs but dont consolidate their business with

31、 one chain. They typically dont see the value in any of the loyalty schemes because they havent changed their stay behaviour to see the benefits. The cash value of redemption reward will be directly to the company, so that the real consumers-the guests will not earn the rewards so that HHonors program is not an e