HILTON HOTEL

Faig KARIMLI
Meiirli KENESPEK
Alexandra Hadziivanova

WHAT IS CRM ?
CRM aimed at managing and
maximizing the customers
loyalty to the firm and providing
positive competitive
differentiation of the brand.

An Introduction to Hilton Hotel

Founder- Conrad Hilton

Sector-Hospitality Business
Established in -1919,
Operation-78 Countries
First Hotels-Mobley Hotel in Cisco, Texas
Public Company In 1946 as Hilton Hotels Corporation, with
portfolio of 15 properties in 11 states.
1964-Diversified into Casinos and Vacation Ownership.
2000-Acquired Promus Hotel Corporation, which took Hiltons
Close to 1700 properties marks.

Working process of Hilton

Hotel

GUESTS SEGMENTATION

Homewood
Suites
by
H
o
m
e
w
o
o
d
S
u
i
t
e
s
Hilton is an upscale, yes casual,by
Hilton is residential-style
an upscale, yes casual,
all-suite
hotel
all-suite
residential-style
hotel
brand catering to travellers
brand catering
to travellers
seeking
a
homelike
hotel
seeking
a
experience
for
ahomelike
few days hotel
or
experience
for
a
few
days
or
more when on the road.
more when on the road.

The Waldorf=Astoria
C o l l e c t i o n -Located in desirable
travel destinations, each hotel has its
own individual character, timeless
architecture and special history, Our
desire for each guest is to provide and
encourage new discoveries which will
help make every experience with us
uniquely their own

HILTON MARKET SEGMENTATION

Geographical
Located in almost every country around the world
Demographics
Income/occupation/socio-economic group and family cycle
Psychographic
Based on lifestyle, values and personalities of its customers
Behaviouristic
Customers loyalty, user status, purchase occasion

4 KEY ISSUES THAT HILTON HAS AN OPPORTUNITY

TO TAKE ADVANTAGE OF :
- B r a n d d i ff e r e n t i a t i o n : Although Hilton has a proprietary system, other hotels
have similar IT systems that perform similar services
- M o n i t o r i n g p e r f o r m a n c e : SALT surveys are the only predictor of
performance/poor completion rate, not properly reflecting opinions, measuring
performance in a more effective manner is high priority

- C u s t o m e r P e r s o n a l i z a t i o n : This is an opportunity to further enhance

personal experience facilitate that competitive advantage which will ultimately
breed brand differentiation
- A l i g n m e n t a n d E x e c u t i o n : Strategy may be in place, but execution is often
a struggle it is essential to provide consistency in brands. A customer can expect the
same experience from a Hilton in San Fran to a Hilton in NYC.

MAIN OBJECTIVES IN CRM STRATEGY:

E x c e l l e n t s e r v i c e s t a n d a r d i s a t i o n
Excellent service standardisation
B u i l d i n t e g r a t e d s y s t e m t h r o u g h I T
Build integrated system through IT
R e s p o n d c u s t o m e r n e e d s
Respond customer needs

WHY DO WE NEED OnQ (The customer information system) ?

BETTER CUSTOMER SERVICE
GIVES EMPLOYEES A CLEARER IDEA OF THE CUSTOMERS
FACILITATES IN CRITICAL RECOVERIES
AVAILABILITY OF CUSTOMER HISTORY
HELPS IN PAYING EXTRA ATTENTION TO VIP CLIENTS
MATCH CUSTOMER RESERVATIONS TO THEIR TASTES AND
PREFERENCES

ADVANTAGES OF OnQ

Online room reservation through Hiltons central reservation

system.

Extra attention to VIP customers spending increased from 40%

to 61%.

Tracking fraudulent customers taking advantage of 100%

guest satisfaction.

Hhonors frequent guest program building customer loyalty.

Customer get rooms based on their preferences, meeting their

needs and faster service.

They can update their frequent flier points for they stay at Hilton.

More revenue per visit sale of restaurant reservation, tee times

or concert tickets.

Employees - clearer idea about customers and their past Hilton

experiences.

A way to use OnQ system to solidify relationship with the best

customers

Fostering a closer relationship with the best guest( recognize and

personalize them , also record all their complaints for the future
circumstances)

FUTURE DEVELOPMENTS OF ONQ

OnQ as a decision support tool.
Reservations held for Diamond and gold
customers.
Guests can include what they want in their
room water, extra pillows, treadmill etc.
Additional services golf, spa, theatre
packages etc.
Building web based connections corporate
travel departments to directly book rooms from
its central reservation system.
Rolling out portals - booking employee travel,
advantage of volume discounts etc.
Generating reports on Hiltons spending.

The customer information system of Hilton( OnQ)

BENEFITS OF OnQ
Facilitates better service employees having clearer idea
about customer and their previous Hilton experiences.
Build customer loyalty Hhonors frequent guest
program.
Establishes value of a customer extra attention to VIP
customers increasing their percentage of spending.
Identification of rare un-valuable customer reducing
unnecessary cost to Hilton.
Faster service times in hand knowledge about the
customer preference enables faster allocation of rooms
with specific facilities.
Increased revenue generation sale of restaurant
reservations, tee times, concert ticket and so on.
Reduction of costs - Central reservation system & online
access of Hhonors account for customers reduced call
volumes and hence lesser no.of domestic call centers.

DRAWBACKS OF OnQ
Presenting deep customer histories to front desk at
Hilton.
It is very hard to update and keep a track of the
preferences of individual customers and the history.
Information about customer experiences would
become obsolete with time.
Customer preference may change at any point of time
as they might expect to experience something new.
Huge cost involved to satisfy the specific needs of
customers.
Loss of business as vacant rooms are held for Hiltons
gold and diamond customers.

Future Challenges

To adopt and use OnQ Technology infrastructure by the front desk staff a
critical challenge particularly given Hiltons scale.
How effectively to harness the promise of CRM, the potential of OnQ ,
and execute it consistently and flawlessly across the network.
The CRM area in the absolute hardest ROI (Return on Investment), it is
impossible to measure a priority.
To maintain the brand differentiation.

PURPOSE OF LOYALTY PROGRAMS

Building guest relationships

Yield management models

Collaboration with partners

Working with franchisees

Assisting travel managers gain compliance

HILTON HHONORS
Designed to build loyalty to the Hilton brand

Hilton HHonors Worldwide (HHW) operates the

program.

The Impact of CRM in Hilton Segmentation

Members
awarded
GOLD VIP status if
stayed more than 16
times in a year
Benefits are 25 %
bonus
on
base
points
Received a 5000
points bonus after 7
stays in quarter
20000
point
discount when they
claimed a reward
costing
100000
points
Certificated for the
best room in the
hotel after every 5th
stay

Top 1% of

members

No benefits were
promised

Acquired more
bang, more
affinity, more

vesting from
customers if you

do something
unexpected

Everyone who joined

the program
In 1998 4,5 Cents per
dollar was collected
from the members for
every stay.
HSW credited 10
points per eligible
dollar of folio.
Guests earned mileage
in partner airline
frequent flyer
programs.
Members earned
points by renting a car,
using the Hilton credit
card from American
express.
Buying products from
FTD florist and Mrs.
Fields cookies.
Besides free stays they
had priority of
reservations telephone
numbers.

Members awarded
silver VIP status if
stayed for more
than 4 times in a
year

Benefits are:

Earned 15 %
bonus on base
points
Received a 5000
points bonus after
7 stays in quarter
10000 point
discount when they
claimed a reward
costing 100000
points

SWOT ANALYSIS
Weaknesses
Challenges managing customer expectations
due to varying offerings
Relatively limited network size and distribution

SSAALT
LT

With the current feedback mechanism (SALT)

directly linked to the CRM which
eliminates the presence of intermediaries who
can possibly manipulate the feedback by the
customers for the own good.

The Satisfaction and Loyalty Tracking (SALT)

SALT was a survey that a sample of departing
guests were asked to complete. This survey
was an important measuring tool because it
assessed whether the CRM initiative was truly
working and how it could be tweaked.

THANK YOU.