Hilton Case study Essay

ProblemFrom the case, we know Hilton is presently using the merchandising penetration by focusing on business line organisation travelers. And now the expensive loyalty-program features that atomic number 18 added by Starwood Hotels and Resorts Worldwide Inc. for take ining much business travelers is threatening Hilton by change magnitude Hiltons salute or fall Hiltons market shares. SolutionIn my opinion, in response to the Starwoods strategy, the solution for Hiltons dilemma should be market development which is develop new market from current products or services. Hilton muckle avoid increasing its cost by showing customers Hilton has more and better benefits. There are several reasons for this solution. Firstly, HHonors Program has been a good service program for Hilton. On the some other hand, Starwoods Preferred knob announcement was a strategy to their less effective frequent-guest program. As it shown on the case, they changed it every few old age.Secondly, it is risky to compete with them by increasing the cost and adding the features Starwood added. It is because the lower cost-effectiveness testament hurt the profit of the whole hotel industry eventually. Also, if Hilton can have the same or more amount of business with lower costs compared to other competitors, Hilton earns more profits. The last but not the least, it is important to market and merge the Hilton brand nowadays. We need to let customers know how superior Hilton is than other hotels to draw out and retain consumers. ImplementationFor implementation, Hilton needs to realize its flashpoints and put more marketing efforts on them. Firstly, HHWs program has a unique practice confabulateed pronged Dipping which means customers can earn mileage in partner air duct and also earn HHonors points. This flashpoint can not only attract customers but also better relationship with corporate clients. Double Dipping melts the employment of competing with the airlines program. Hi lton can talk to partner airlines by communion members and create a complemented program with them.Then, Hilton can advertise this program to more airlines by calling them. So Hilton can attract more customers through airlines without increasing advisement costs. Also, Hilton can increase the number and range of partners such as car rental firms and Cookies firms. This action will help customers distinguish their rewards easily and eventually will help Hilton get more customers. Thirdly, Hilton can franchise to more small hotels with comparable with lower loyalty- program cost than its competitors in order to increase the market share of Midmarket without F& group AB segment which other big competitors dont have. after(prenominal) that, Hilton can send an email to their current customers in their computer corpse by presenting the appreciation for being Hilton customers and introducing Double Dipping and other partners for customers to attain rewards earlier. Also, furcate them they can get desirable points by having someone experience Hilton. Guest managers who are responsible for making the best customers feel special and receive their needs as perfect as possible can call upper-rank customers by introducing themselves.