global services project -hilton worldwide

8/9/2019 Global Services Project -Hilton Worldwide

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GROUP A

Project on Global Marketing of ServicesProject on Global Marketing of ServicesSupervisor: Professor Tarun Das, IILMSupervisor: Professor Tarun Das, IILM

Hilton HHonors WorldwideHilton HHonors WorldwideJasleen Kaur Gakher

-- Group LeaderMayank Jain

-- Joint Group Leader

Monica Malhotra

Monideepa Roy

Nancy Bajaj

Neelanjana Ghosh

Neha Khanna


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Project on Global Marketing of ServicesProject on Global Marketing of ServicesSupervisor: Professor Tarun Das, IILMSupervisor: Professor Tarun Das, IILM

Hilton HHonors WorldwideHilton HHonors Worldwide

GROUP AJasleen Kaur Gakher -- Group LeaderMayank Jain -- Joint Group Leader

Monica Malhotra

Monideepa RoyNancy Bajaj

Neelanjana GhoshNeha Khanna


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What should Diskin Do?

The company should not get in to price wars because it

will only lead to Financial bonding

Continue building on active loyalty (Max. emotional &rational bonding).

Diskin should suggest that Hilton should take a differentposition and hold on to its members and keepdifferentiating HHonors from Starwood and othercompetitors


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Contd

Should forecast the responses of competitive hotels likeMarriotts, Hyatts etc.

Go in for a structural bonding with the airlines.


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What are the strengths & weaknesses of theHilton HHonors Programme?

a. From Hiltons Brand perspective

Strengths

Well recognized brand which helped them to collaborate withpartners like airlines, car rental firms etc and also work withfranchisees.

Hilton was the only hotel chain to offerDouble Dipping.


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Weakness

Compared to Starwood, features like no blackout dates,paperless awards, etc. were not offered by HHW.

No loyalty Most members belong to multiple programs

b. To the member properties

Strengths

Complementary in terms of allowing joint customers toearn both currencies

Drive buss. By working with the Hilton brand

Increased contribution{$177 million increased

contribution against a spending of $49.9 million}


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C. To the guests

Strengths

Exchange points for free stay or earn mileage in frequentflyer program.

Provided customized services to its guest.

If dissatisfied they were guaranteed a room upgradecertificate in exchange for a letter explainingdissatisfaction.

Points could be exchanged for airline tickets, flowers,cookies, car rentals etc.

Weaknesses

Constraints in terms of blackout dates, capacity control,

paperless rewards & hotel reimbursements.


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d. To the employersStrengths

Growth opportunities, positive and productive places in whichto work.

Reputation of being a part of employer-of-choice in the hotelindustry.

Weaknesses

Challenge of managing customer expectations for themembers of the programme.


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What is the optimum level of spending?

Spending depends on the extra revenue the firm would be ableto earn because of the program.

Needs an approximate estimation of the increased guest intake

Hilton spend about $750 a year per room,a cost that is significantly less formembers.

Yield Management .


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What is Starwood doing & how should Hilton respond?

Star wood announced its "Starwood Preferred GuestProgram" -Westin Hotels Resorts, Sheraton Hotels Resorts &

W hotels etc. Spending money on an advertising campaign-$50mn.

Trying to place itself on top of the market with features like noblackout dates, no capacity control, paperless rewards & hotel

reimbursements.


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Response of Hilton

Hilton HHonors' members were a huge potential pool,from which Hilton should get more loyalty.

Hilton should take a different position and hold on to itsmembers and keep differentiating HHonors from

Starwood and other competitors. Using database of Hilton HHonors and cooperating

airline partners would keep long-track record ofcustomers' preferences as well as dislikes.

Using conjoint analysis, the most important features of a

hotel program were room upgrades and airline miles,followed by free hotel stays, and other on-propertybenefits and services. focus in these areas and keepmaking more special features to attract more customersto experience.


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Consumer satisfaction and words of mouth would be amore effective and influential ads rather than huge-investment on advertising campaign.

Hilton should not compete point for pointbut should emphasise on stressing on its

core competencies.

global services project -hilton worldwide

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