Smartbrief 6

Allie Belgiovine April 7, 2010
Smart brief #6 Dr. Brian Miller

Title of article: Hilton makes more changes to loyalty program

Source: Hotel World Network

Date Published: April 2, 2010

Link: http://www.hotelworldnetwork.com/plans-and-programs/hilton-make-more-changes-loyalty-program-7780

Summary:

This article was about some select Hilton Hotel establishments who are offering the HHonors members a chance to redeem 40% fewer points at the specific hotels. They are calling it the “Point Stretcher Rewards” and they are available at over 580 hotels from April 2 2010 to the end of June 2010. HHonors members can stay in multiple Hilton brands including Conrad Hotels & Resorts, Hilton Hotels, Doubletree, Embassy Suites Hotels, Hilton Garden Inn, Homewood Suites and Hampton Hotels. Hilton targets customers from all target markets. The plan with this program is that now members from all tiers can “treat themselves to a getaway-faster” according to Jeff Diskin who is the Senior vice President of Global Customer Marketing.
Four of the hotels mentioned in this article were the Embassy Suites by Hilton Mexico City, the Hampton Inn & Suites in Millington Tennessee, the Hilton Luxor Resort and Spa in Egypt and Homewood Suites by Hilton close to New York City. Each hotel talked about, has different dates and different point reductions. These four talked about are from all different parts of the world and the different brands target different groups of travelers. From business professionals, to families on vacation, Hilton’s wide variety of brands offers something for all purposes and budgets.

Reflection:

I feel that this program is a great way to increase brand loyalty. Due to Expedia, Orbitz and other travel sights are taking away business to hotels and building up customer loyalty is more important than ever. I think it is a more profitable marketing device over promotions and price cuts because once you make a customer want your company and only your company you have them hooked and they will always return. Not only will they bring themselves and their families, but you have a chance to hook their friends on your company as well.
There is one thing that makes me question how well this program will work however. I was wondering-how are they getting the word out to their customers of the Point Stretcher Rewards? Jeff Deskin wants customers to book a getaway faster, but how do they know about this new limited time program and how far in advance were they told about it? They have a website devoted to the point stretcher but how is the word getting out to go to that website. I asked my dad who is a Hilton Rewards Member if he had heard about this promotion and he said he had not.
I know when my parents see a good deal for a trip they always jump at the chance. There are many people like that and I am sure this program will increase brand loyalty as well as profits for Hilton Hotels.