Tuesday, April 16, 2019
Hilton Case study Essay Example for Free
Hilton Case occupy EssayProblemFrom the case, we know Hilton is currently using the marketing penetration by focusing on business travelers. And now the expensive loyalty-program features that are added by Starwood Hotels and Resorts Worldwide Inc. for attracting more(prenominal) business travelers is threatening Hilton by increasing Hiltons cost or decreasing Hiltons market shares. SolutionIn my opinion, in response to the Starwoods strategy, the solution for Hiltons dilemma should be market development which is developing natural market from current products or services. Hilton can avoid increasing its cost by showing customers Hilton has more and collapse 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 Guest announcement was a strategy to their less effective frequent-guest program. As it shown on the case, they changed it every few years.Secondly, it is risky to compete with them by increasing the cost and adding the features Starwood added. It is because the cast down cost-effectiveness will 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 authorized to market and consolidate the Hilton brand nowadays. We need to let customers know how superior Hilton is than other hotels to attract and forbear consumers. ImplementationFor implementation, Hilton needs to realize its flashpoints and put more marketing efforts on them. Firstly, HHWs program has a unique practice called Double Dipping which means customers can earn mileage in partner air passage and also earn HHonors points. This flashpoint can not only attract customers but also better relationship with corporate clients. Double Dipping melts the conflict of competing with the airlines program. Hilton can talk to partner airlines by sharing members and create a complemented program with them.Then, Hilton can advertise this program to more airlines by career them. So Hilton can attract more customers through airlines without increasing advisement costs. Also, Hilton can increase the lean and range of partners such as car rental firms and Cookies firms. This action will help customers attain their rewards slow and eventually will help Hilton adopt more customers. Thirdly, Hilton can franchise to more small hotels with parallel with lower loyalty- program cost than its competitors in order to increase the market share of Midmarket without FB segment which other big competitors dont have.After that, Hilton can send an email to their current customers in their calculating machine system by presenting the appreciation for being Hilton customers and introducing Double Dipping and other partners for customers to attain rewards earlier. Also, tell them they can get desirable points by having someone experience Hilton. Guest managers who are responsible for making the best customers tone of voice special and satisfy their needs as perfect as possible can call upper-rank customers by introducing themselves.
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