Hilton Case study Essay

ProblemFrom the case, we know Hilton is currently using the marketing penetration by stress on business travelers. And now the expensive loyalty-program features that are added by Starwood Hotels and Resorts Worldwide Inc. for attracting more 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 create new market from current products or services. Hilton can avoid increasing its cost by showing customers Hilton has more and better benefits. There are some(prenominal) reasons for this solution. Firstly, HHonors Program has been a good service program for Hilton. On the other hand, Starwoods Preferred Guest announcement was a strategy to their less hard-hitting 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 lower cost-effectiveness will hurt the profit of the only 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 non the least, it is important to market and consolidate the Hilton brand nowadays. We need to let customers know how superior Hilton is than other hotels to attract and retain consumers. ImplementationFor implementation, Hilton needs to realize its flashpoints and vest more marketing efforts on them. Firstly, HHWs program has a unique practice called Double Dipping which means customers can earn mileage in render airline and also earn HHonors points. This flashpoint can not only attract customers but also better relationship with corporate clients. Double Dipping melts the run afoul of competing with the airlines program. Hilton can talk to partner airlines by sharing members and creat e 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 simple machine rental firms and Cookies firms. This action will help customers touch their rewards easily and eventually will help Hilton get more customers. Thirdly, Hilton can franchise to more vitiated hotels with comparable with lower loyalty- program cost than its competitors in order to increase the market share of Midmarket without F&B segment which other big competitors seizet have.After that, Hilton can send an email to their current customers in their computer 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 manager s who are responsible for making the best customers feel special and satiate their needs as perfect as possible can call upper-rank customers by introducing themselves.