Case | HBS Case Collection | October 2000 (Revised November 2005)

Hilton HHonors Worldwide: Loyalty Wars

by John A. Deighton and Stowe Shoemaker

Abstract

Hilton Hotels regards the frequent guest program as the industry's most important marketing tool, directing marketing efforts at the heavy user. What is Hilton to do then, when a competitor ups the ante? This case illustrates the economics of frequency marketing in industries with a very distinct "heavy half" to their customer base, and lets students debate what to do when Sheraton and Westin seemingly overdo a good thing.

Keywords: Customer Relationship Management; Decision Choices and Conditions; Brands and Branding; Competitive Strategy; Accommodations Industry;

Citation:

Deighton, John A., and Stowe Shoemaker. "Hilton HHonors Worldwide: Loyalty Wars." Harvard Business School Case 501-010, October 2000. (Revised November 2005.)