The Hilton Hotel Industry Problem

Subject: Company Analysis
Pages: 2
Words: 432
Reading time:
2 min
Study level: School

Problem Overview

Hilton offers a strong rewards customer loyalty program to keep tourists coming back for more as one of the world’s leading hotel companies. Hilton Honors allows loyal customers to exchange points for free hotel stays at any of Hilton’s 18 brands around the world. Hilton has over 6,000 hotels worldwide, so you’re sure to find one that suits your needs and budget. Whether you travel frequently or only a few times a year, the Hilton Honors program is worth taking advantage of to earn points for a future free hotel stay.

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As part of their Global Community Projects, Hilton delivers genuine and modern experiences for its guests across the world and volunteers in global community projects to enhance the lives of young people in over 1,500 communities. Every year, there is a month dedicated to service. Hilton Honors allows members to convert their points into cash links to recollections and wonderful encounters.The Hilton Honors loyalty program is free to join and has over 52 million members worldwide in its most basic form.

Members have specific benefits that non-members do not have. Members go through a tier ladder of status, with each level requiring a set amount of stays or points:

  • Blue: free to join
  • Silver: a client, should have 4 stays or 10 nights in a calendar year to reach Silver status
  • Gold: a client should have 20 stays or 40 nights in a calendar year

Proposed Solutions

Members of the Honors loyalty program receive advantages that make them feel like they are part of an elite and exclusive club, replete with more customized services that result in memorable experiences. Members of the Honors loyalty program receive particular incentives for each tier, and the higher a person climbs the tier ladder, the greater the rewards and accolades they earn (Hilton Worldwide, 2016). For example, guests with the Silver elite level receive an immediate 15% bonus on any Honors base points they earn. Members get gold status after 20 stays or 40 room nights.

The point system of Hilton’s Honors program is complicated since point accumulation and redemption change based on the properties and their categorization classification. The Honors point redemption method is convoluted since there is no predetermined amount of points necessary to redeem a free night’s stay; instead, it is determined by the property’s “Hotel category,” which is divided into ten categories for each of the thirteen brands. The higher the hotel’s ranking and the more amenities it provides (in terms of select-service or full-service hotels), the higher its classification and the more points necessary to stay there.

Reference

HHonors, H. (2016). Hilton HHonors: Standard Room Rewards Update. Web.