Hilton Hotels

Assignment No-2

Submitted To

Mrs. Joita Sen

Submitted By

Dushyant Prabhakar(196)

Q1- Customer Lifestyle Management Ans Hilton used to acquire its customers through its brand name. It had worlds renowned properties, had services in more than 50 countries and operated in the luxury and upscale segment. Later it extended into the mid market segment too. Information to already existing customers was sent through direct mail or on one to one basis regarding the products and service offerings. A database regarding the customer taste and preferences was maintained. Their dissatisfaction was given due consideration after making the customer write what they felt went wrong with a promise of upgradation in the services on their next visit. Customer base was developed by offering special discounts to companies if they ensured the visit of adequate number of professionals over a longer period of time CRM was also well in place To cultivate loyalty among their customers a lucrative double dipping program was undertaken by the hotel that ensured high quality services with lesser glitches to the most profitable customers. It offered several additional benefits like free stay, frequent flyer miles, redeemable points, adventure trips with families, VIP status etc.

Q 2- Wheel of Loyalty: Hilton Hotel

Ans1) Building a Foundation of Loyalty: Target market: Frequent flyers, Business Travellers, Though business travellers accounted for 1/3 rd of the total customers to Hilton hotel, they were the most frequent ones and less price sensitive. Managing the Cutomer Base through Effective Tiering of Services: Four Tiers of membership-Blue, Silver, Gold, Diamond. They have different specification for different membership holders. 2) Creating Loyalty bonds: Deepening the Relationship: Bundling/Cross Selling by partnering with renting a car, flying with partner airline, using the Hilton Credit Card or buying products promoted in mailing by partners. All these earned a Hilton HHonors member extra points. Give Loyalty Bonds: Financial: Reward based points, a number of exotic reward were offered Non financial: Members were preferred over non-members, Points exchanged for airmiles. Intangible rewards: They had priority-reservation telephone number, Check-in went faster because information on preferences was on file. Underpromise and Overdeliver Build higher-level bonds:

Customization: With information collected the customer gets his or her preference for next visit. Structural: Partnering with airline 3) Reduce Churn Drivers: Conduct Churn diagnostic: Conjoint analysis to measure the what members wanted from the Hilton HHonors Program. In-Depth interview Addressing Key Churn Drivers: Innovate and improve stay experience. Feel special and Treated Special

Answer 3:
Many Hilton Honors members, especially the most frequent travelers, are likely to belong to the Starwood and Marriott guest rewards programs, too. So for guests in the most important segment, the challenge is to maximize Hiltons share of wallet. Starwood is a new umbrella brand and therefore needs to raise its profile. Hilton is already well established. The question for class discussion is whether Hilton can best achieve a higher share of wallet by (a) enhancing the rewards of staying at a Hilton property and making it easier to redeem these awards, or (b) using the knowledge of each individual guest gained from analysis of their stays and spending patterns to enhance the quality of their hotel experiences. The latter approach is consistent with effective customer relationship management strategies.