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Hilton Honors Worldwide

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Hilton HHonors Worldwide: Loyalty Wars
HOS 342 Service Marketing
Hilton HHonors Worldwide: Loyalty Wars
HOS 342 Service Marketing
Anthony Petitte
Anthony Petitte

Introduction
The following case concerns Hilton’s reward program for its guests, the Hilton HHonors, and the possible implications after the introduction of a different reward program introduced by Starwood Hotels and Resorts Worldwide Inc. Many companies in different industries use the loyalty reward program as a form of marketing tool to reward their loyal customers. By doing this, they are able to retain their customers and attract other potential customers. The more attractive the loyalty programs are, the more customers the companies get and retain. Customers are attracted based on how they earn points, and the benefits they get when they redeem the points. Many of the industries offering the loyalty programs have a standardized way of doing so because they are more independent and they have definite control. This is unlike the hotel industry, which has no defined control because of franchises and different management. There may be different people controlling the hotel chain despite the chain using the same brand. This makes it hard for the hotels to standardize their loyalty program. The Hilton reward program was effective in retaining and attracting customers, but the hotel chain faced different challenges, which increased its threat of losing its customers.
Challenges facing the Hilton Brand
The Hilton brand faced some challenges. This came from its competitors, and the small market it served. Although many Americans traveled, and about 74% of them traveled overnight, only 41% of them stayed in hotels. This meant that Hilton would only get a small proportion of the overnight travelers. The other challenge concerned the small market size, which was the focus of the Hilton brand. Hilton...

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