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Case
| HBS Case Collection
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2005
(Revised from original 2000 version)
Hilton HHonors Worldwide: Loyalty Wars
by
John A. Deighton and Stowe Shoemaker
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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;