Hilton Hhonors (Hilton's Customer Return Plan) President Jeff Di Di
1999
year
2
month
2
day
Wall Street Magazine, the headline of the eye is "The hotel industry is in business travel games." This reported this, "Starwood Hotel and Resort Hotel is expected to uncover the very offense of offense tomorrow. The program will help to attract more commercial travelers to stay in Starwood, including Sheraton, Visten and other hotels. With a $ 50 million advertising plan, Starwood's frequent visits Big giants (including Starwood and its opponents in Marriot Marriott, Hilton, Hayett) are more huge in the loyalty plan game. "
Disgkin does not cover up his worries. "They will increase their costs, and will also improve our company. Due to the invisible expenditure in the plan, the cost effectiveness of the hotel industry will be reduced. The loyalty program is to attract and retain in the past ten years. The best customer mystery is located. But only when our competitors are not more competitive, the loyalty program is cost effective. "
Loyal Marketing Plan
The idea of rewarding loyal is first appearing in the bargaining coupon and the distribution voucher. The United States has experienced two discounted gift coupons, the earliest in the early 20th century, followed by the 1950s. At that time, people had such enthusiasm for the bargaining coupons, so that Congress rose sharply in the investigation of this phenomenon. The retailer pays the customer's discount coupon with its purchase volume, and the customer's purchase volume is recorded, and the product can be purchased in the future. During the period, the most famous retailers are S & H Green Bellevan Corporation (S & H Green Stamp Company). Two frenzy continued for nearly 20 years, with the weakening of customers, this frenzy slowly cools, and retailers found that their advantages have been in the emphasized erosion.
In 1981, the modern form of loyalty marketing was born in 1981. At that time, US aviation introduced the use of a frequent customer plan, and its specific practice was to return the flight mileage of passengers. The mileage and passengers have a proportion of flight miles, and the mileage of the gift can be used Free line service. US Airlines Implementing the plan is a reaction to the fierce competition in the US aviation industry after relaxation. US Airlines Flight Plan no longer requires a discounted coupon because they turn to implement data storage capabilities of the computer. Soon, the plan implementer realized that the tools they have mastered are not only limited to the loyalty of the prize customers, but they can identify customers who bring most of the benefits of the aviation industry through the name and address, which will make the establishment of one-on-one relationship. may.
Airlines who compete with each other compete to implement their own frequent programs, but different from the bargaining coupon plan, flying frequent visits seem to survive in the imitation of competitors. As of 1990, almost all airlines adopted the plan. By the end of the 20th century, in the US aviation market, American Airlines and US Airlines merged their flying frequencies, while Delta Airlnes and United Airlines (United Airlines) also combined them . In the international market, United Airlines and Germany Lufthansa Airlines jointly formed a star alliance, while US airlines and British airlines and other four airlines formed a "one world" Alliance. In these aerospace alliances, both the air services purchased by any member company can be used as a basis for joining the regular club.
At the end of the 20th century, the Frequency Program has spread to many industries, including car rentals, department stores, audio and book retail, credit cards, theaters, and hotel industry.
Hotel industry
The Global Hotel Market has one million rooms, and its main supply is a brand chain. Chain companies typically provide scheduled services and on-site sales services in the name of Hilton, Mariot, etc., which also implements loyalty programs to manage hotel real estate. Detailed information on Seven Chain Hotel in American Traditional Hotel Business Vehicles See Figure 1. Although the brand is known, but compared with many other industries, the standardization operation of the chain hotel industry is less than that of many ways to control the same experience as the hotel brand. A brand hotel can be owned by a chain company, and is operated by a chain company, but it can also be owned by a third party, and is operated by a chain company, or by a chain company but by a franchise person, it is also possible to operate in some cases. All and business. In some accidental situations, a chain company can be a franchiseer of other chain companies, so the chain company can operate the brand. For example, Starwood has operated a restaurant under Hilton's famous operators as a franchisee of Hilton. Therefore, information about the competitor's operation process can be freely propagated inside the hotel industry.
client
For most Americans, the hotel is relatively rare. A 74% of Americans have experienced overnight, but only 41% of Americans are in hotels, car hotels or resort. Among them, Hilton's participation in competition is more narrow. If the market is defined according to the price and travel target, Hilton's market can be divided into three large pieces of business, conferences and casual.
The business part accounts for one-third of the Hilton service market. Nearly two-thirds of the accommodation prices are negotiated with the company's company and Hilton chain, but because most companies are talking to two or even three chain hotels, business travelers have certain degrees of freedom. You can choose a specific hotel. There is nearly one-third of business travelers who are not subject to the company's protocol, and there is a complete freedom of the hotel.
Part of the meeting occupied one-third of the Hilton service market. It includes conferences, seminars and other trips related to conferences. In this case, the right to choose a hotel is in the hands of a small number of professional conference organizers, especially professional associations and major company executives.
Leisure part accounts for one-third of the Hilton service market. Leisure customers are very sensitive to prices. They are usually selected by air tickets, car tickets, travel and restaurants provided by travelers or wholesaler groups. In general, the tour group or wholesaler group purchases a restaurant service at a discount price below commercial price.
Although it is facing the needs of all parts of the market as a holistic chain, different personality features make different restaurants to attract customers in different market segments. For example, a resort offers a relaxing traveler and a part of the meeting participants, and traditional hotels rely on team travel and business trip to bring customers, while near the airport is mainly occupied by business travelers. However, the above market segmentation hides the following fact: in different markets, customers who use tourism purposes and price points may actually be the same batch. Customers who often travel will patronize different types and price subdivided hotels depending on the commercial expenditure, travel or expenditure of the customer.
competition
As shown in Table A, four global brands control the business-class hotel market. The price competition between the company is a comprehensive price competition. Figure 2 shows the price situation in the hotel industry. Figure 3 shows the distribution of each brand in the price.
Table A
Mariot International 339,200
Starwood Hotel & Resort
212,900
Hyra
93,700
Hilton Hotel
91,100
Hilton International
62,900
Stanwood: From 1991, Barry Sternlicht established a widely distributed hotel, a resort group, based on a real estate investment trust company. In January 1998, Starwood acquired the Westin restaurant and a resort. After a month, after a widely circulated acquisition battle with Hilton, Starwood successfully acquired ITT. ITT has Sheraton Hotel and Resort. By the end of 1998, Starwood did not uncheck the management of Visten, Sheraton, FOUR POINTS, Rujus (Regis). Recently, Starwood has launched a brand of young professionals: W brand.
Mariot: Mario operates many brands of hotels through two ways of operation and franchise. Brand, including Renaissance, Renaissance, Renaiss Inn, CourTyard, Double Cities Suites, Peace Fairfield Inn, SpringHill Suites, and more. At the same time, Mario has also operated the conference center and also provides office buildings. Part of Maryt's real estate is owned by a real estate trust investment company Herst (Host) Mariot, Haiya, Four Seasons and other companies.
Hayett: Hayett owned by Chicago's Pritzker family, this is the only one in the main chain restaurant. Hyram has two subsidiaries including Haiyot Hotel and Hayett International. Among them, HaiyaT Hotel operates in the United States, Canada and Colombia, while Haiya International operates other overseas restaurants. At the same time, Haiyat is also the shareholders of the South Pacific Hotel Group, the South Pacific Hotel Corporation is a Samsung, a four-star chain hotel based on Australia. Although they operate independently, two companies implement joint market promotion plans.
Part of the 1990s became a restructuring and rationalization of the hotel industry in the 1990s due to the wide application of information technology in the predetermined system and operational control. Jeff Dischase shows the development trend of the hotel industry: "Because the large scale will bring the economy, the bigger the better, even if the company's service, performance or plan is not good, he It is often able to win in the competition. Now (after the completion of the acquisition in 1991), there is a giant of a hotel industry in the market. Of course, if Hilton has become the world's largest chain, the situation will remain good. But increase the scale No longer doing a better way. "
Promote Hilton Brand
The Hilton brand was jointly controlled by two completely unsolicited companies, and they were headquartered in Hilton Hotel (HHC) and Headquarters, Hilton, United Kingdom, Ben, United Kingdom. Although the two companies were unsatisfactory, they reached an agreement in Unifying the Hilton Brand in the world in 1997. They agreed to coordinate operations in sales and marketing, agreed to standardize, and endorsed Hilton Hhonors Loyal Program for all HHC and HIC Hotel. "HHON HHONORS LOYALTY program. By the end of 1998, HHC exited the entertainment industry and claimed that "its company began to focus on the new era of hotel enterprises." Exit the entertainment industry, unified Hilton marketing strategy in the world market and the name of Hilton Garden to extend the Hilton brand to the middle market, all of these initiatives are appointed in Hilton in Stephen F. Bollenbach. The company president and the CEO will start. Burlang has served as the chief financial officer of Marsto, just before Hilton, he was a chief financial officer of Dinis. His arrival brings Hilton a great enthusiasm for brand expansion. The attention of the development brand is welcomed by several members of the Hilton Management Team. One of the managers said: "Hilton's advantage is a widely known name, but a potential factor is that it provides services with great differential, how to manage customers to Hilton's expectations in such a huge product difference. A big challenge. "Because Hilton has a variety of types of real estate, from Waldorf - Asia, Hilton Hilton Hilton Hilton Garden Inn, a small-scale Hilton Garden Inn, gives customers a clearly aware of Hilton is to Off.
In mid-1999, the composition of the Hilton brand's real estate is as follows.
39 HHC owned or part of the hotel (limited to the territory of the United States);
207 hotels (limited to the US) by the third-party management of HHC franchise.
16 hotels in HHC management (limited to the territory of the United States);
10 hotels operating under HHC's Krad Brand (limited to the international market);
The 220 hotels managed throughout the world's 50 countries (limited to the international market).
Hilton Honor Member Company's work goal is to serve 150,000 rooms in 492 hotels. The operation of the last year is successful. The average gain of the hotel reached $ 158 per person, and the room occupancy exceeded the critical level of the revenue. As such a hotel like Hilton, it can only make up for its fixed cost when the room usage rate reaches 68%. If the room usage rate is higher, only 80% of all revenues will make up for cost. Although Hilton Group does not disclose its advertising, sales and other marketing costs, the industry standard level is available for investment, approximately $ 750 per room.
Hilton Honor Member Program
Hilton Honor Member is the name of Hilton's loyal plan to design the plan to build customers' loyalty to Hilton brand worldwide. World Hilton Honor Member (HHW) is responsible for operating the plan, the purpose is not for profit, but for two parent company services. HHW is required to meet the effectiveness of the company in the financial HHW, and the effectiveness of the company's operation is evaluated by a complex plan measure set. Jeff • Dischanda has a total of 30 employees, with two vice presidents, a force responsible for supervising plans, a responsible for operating and customer service business. Diagram 4 shows the gains and loss tables of HHW.
Hilton Honor Member is open to anyone any application, no fees. As long as you stay in HHC, you can get points on their Hilton Honor Member Account. When Hilton Honor is accumulated enough points in the plan, they can exchange these points in a variety of ways: Stay in the Honor Member Hotel, use points to purchase products or services from partnerships, or convert the points into airline frequencies Mileage. Figure 5 shows how the integration flows between the participants of the program, which will also be described in detail below. Hilton Honor Member is divided into four grades, which are blue level, silver-level, gold grade and diamond level. In 1998, the blue level in the plan was operated as follows.
• When a member is in a Hilton Hotel in a so-called business price, it is typically transferred to HHW, in accordance with the ratio of 4.5 cents pre-taxation payment, according to the customer's tax. Then, HHW accumulate points on the customer's account according to the proportion of 10 points in each qualified dollar.
• Hilton customers get the mileage while gaining flight miles from the airlines of Hilton, you can also get Hilton points, which is a double point for people. (Hilton is the only chain hotel company that provides dual points, and other company's frequent visits require customers to choose one in the Hotel Points and Aviation Flight Customer Plan.) If the customer chooses double points, HHW is purchased from related airlines The air mileage, the proportion of 500 kilometers in one night, provides customers with free flight mileage.
• If the customer uses the accommodation fee, HHW will compensate for the accommodation, the amount of currency compensated is higher than the difference between the cost and the cost of availability, but the amount of customers actually pays. The exchange ratio of points and accommodation depends on the level of the hotel, which will drop when the room rate is high. Moreover, Hilton also offers a range of attractive rewards, for example, if the points reach 35,000 points, you can enjoy the Double Seven-Day Tour of the Red Sea, including accommodation and round-trip.
• Members can get points from many aspects. For example, renting a car, take a flight with Hilton, using the Hilton credit card, or purchase Filz biscuits, etc.. Members can also purchase points with cash with a price of $ 10, but only 20% of the service needs to be purchased.
• In addition to getting free accommodation, members have other benefits. They can get a priority phone number when it is scheduled. And because of the customer's related information and preferences have been recorded, accommodation registration will be faster. In addition, when handling check-out, members have priority compared to non-members. If the member is dissatisfied with the service, the hotel will make customers commemid. Points can be used to exchange aviation mileage, air mileage can also be exchanged, and you can purchase Hilton's products, such as tickets, flowers, Fields cooks, Cannondale Bicycle, AAA membership, renting a car, etc..
If the customer has four Hilton Hotel for four years, he will receive silver VIP qualifications. He will receive a 20% reward on the basis of the original points. If a customer reaches eight times in a quarter, you can get 5,000 points of rewards, and if he is required to get 100,000 services, the customer also You can enjoy a discount of 10,000 points. They can also get proven by level improvement, and then enjoy the best room in every five times in Hilton Hotel.
Further, if members stay in the Honor Member Hotel within one year, or 36 nights in Hilton Hotel within one year, he will get gold VIP qualifications. They got 25% reward on the basis of the original points. If they stay in a quarter, he will get 5,000 points of rewards. When the Gold VIP member requires a service that spends 100,000 points, he will enjoy a discount of 20,000 points. Gold VIP members can also get proven by level improvement, and you can enjoy the best rooms for each stay, and you can enter your VIP room when you register. Only 1% of the members were granted the diamond level VIP qualification. This level is not mentioned in the promotional material, and there is no benefit to give any benefits. Disin explained: "To this level, our goal is less promise, more performance. If you have traveled us, we deeply thank you, as a return, we grant your diamond level VIP qualification. As an industry We never commit commitments. If you are too promise to guide the public to think that the hotel industry is full of fake and smoke, we will make us more difficult to communicate real value to customers. "
Table B: Membership in 1998
Member of a member
(000)
1998 valid member
(000)
The number of members patron (000)
Member overnight
(000)
Treasure spending money on points
The number of patrians of each effective member in 1998
In 1998, each valid member accommodation
Member requirements rewards overnight
Diamond level
twenty four
20
310
521
62,000
15.5
26.1
27,000
Gold-grade
220
84
1,110
1,916
266,000
13.2
22.8
34,200
Silver-class
694
324
1,023
1,999
341,000
3.2
6.2
70,200
Grade
1,712
992
1,121
2,597
439,000
1.1
2.6
48,600
total
2,650
1,420
3,564
7,015
1,108,000
2.5
4.9
180,000
According to 1998, there are 712,000 an average of 2.4 nights, and did not use Hilton Honor Member Card, but the mileage is obtained, and the aviation member number is obtained, so customers can get a unique confirmation in the Hilton database. number. These total expenditures are $ 300 million of $ 300 million.
Customers accounted for HHC or HIC accounted for 22.5% of HHC or HIC a year. They are a small part of all customers who stay in Hilton in a year because they tend to travel frequently. Hilton's study found that Hilton's honor members spent about $ 4.6 billion every year, not all spend in Hilton. The hotel is estimated that all members of all large chain hotels represent the $ 11.1 billion markets, and the members are averaged 3.5 hotel plans.
Theoretical according to the membership plan
1, gains and profit management
The profitability of the hotel is extremely sensitive to the income. One trend in the hotel industry is that gives a "revenue manager" to monitor the daily decisions affecting the revenue of the hotel. The profit management model is a probability calculation program that helps manage the manager to develop a room reservation program. Hotel managers use historical data and other statistics for the hotel's scheduled model and provide the latest recommendations for specific customers. Simulation studies have shown that the predetermined scheme for use profit management model guidance can increase the hotel gain by 20% compared to simple "first-to-first-serving, fixed price" strategy.
In the hotel industry, effective management profits means that on the one hand, the model predicts when the room is available, on the other hand, the guidance of business development is willing to have a high price or long-term living. The variable price implemented by the hotel means that the housing prices are no longer depends only on the room size and room equipment, but also depend on the reservation, the room occupancy, the length of residence, and the customer characteristics. Among them, customer factors are the most difficult to handle. Customer characteristics are used to estimate the customer's "off-store cost". The so-called departure cost refers to the cost of customers who have no longer receive the hotel after the hotel service. This cost depends on the customer's willingness to pay for the future life-value value of the chain, and the faithfulness of the customer. These factors are "soft variables", which is difficult to measure. Hilton Honor Member Company Senior Adviser Asa Pocar once pointed out that "Whoever gets room, is a one-time customer who pays more than $ 20, or is a loyal customer who spends a big banknote in a chain? If you are related to the correct data of the above question, Profit management models can be unable to discover differences and use it to increase profits. "
2, close cooperation with partners
HHW has established cooperative relations with 25 airlines, 3 taxi companies and many other companies. Box explains: "Why is you absorbing Filz biscuit companies to this plan? We have a few purposes: I hope that through extensive establishment of cooperative relationships, approaching partner customers, making customers more easily gaining. A franchise Operators may ask: 'What is the relationship between our and FTD Flowers?'? We believe that partners' investments can reduce costs, and can also provide us with a wide range of rewards. "
Adam also explained Hilton to provide a double score reason. "We have two thousand and five million members, while airline flying frequencies plan to have 20 million, 30 million or even 40 million members, and many of them are not our Hilton's honorary members, but the opportunity to travel. Many. And the airline does not mean that we have deal with its members through the Dual Integration Plan, because this is done, and the common guest flight plan competition. In fact, we can allow both customer sharing to be a good supplement, in all, We reach a win-win situation. "
3, cooperate with franchiseers
Hilton Honors Plan a huge role in persuading the owner of the hotel and has played a huge role in the Hilton franchiseer and promoting the real estate provider or in two ways to sign the business contract with Hilton. Franchisees are generally a small-scale restaurant, compared with the Hilton traditional hotel, a resort and flagship hotel, the former is more dependent on the Road Warrior business. They saw that the frequent visitor plans to attract customers' value. At the same time, the cost of HHW programs is either equal, or less. Although Hyton's HHW program has cost advantages, its largest selling dots are still its ability to attract customers. Dischandan Detailed: "Some hotel operators in Seven or eight years also expressed concern about the cost of the frequencies. So we call those who criticize the slogans to call, with them for two days to discuss I discuss the importance of establishing long-term loyalty of customers, and when these critics come out, they all express "we need to invest more funds in the frequent customer plan! "
4, strengthen customer relationship construction
The plan enables Hilton to identify the most valuable customers for them. Disrester explained that "Loyalty Program is a paradise for customers to a certain extent. If there is a problem, and there is no suitable handling at the company level, the customer can contact our customer service department. Make sure we can find service The problem is expected. At the same time, we call customers for honor members because they are our most important customers, and they are valuable resources in our hotel. They have experienced rich customers. We do our best to pay attention to membership groups and qualitative research We also carry out feedback on the membership group. We invite some members to go to the hotel to get dinner, and we will discuss a topic. The company's lifelong loyalty often calls me, not because we have any changes in our business, but We have invited them and consult them. People care about those who care about their business organization. "Hilton custom customers' hotel experience. Dijin is explained in this way, "We build a customer profile to record their preferences, making the hotel to provide tailor-made services. For example, consider a customer who always books a smoke-free room with a double bed. Will be stored in the customer record, when the customer is scheduled next time, no matter where he is, even if he does not make relevant requirements, he can get the room he wants. "
HHW uses direct communication to cultivate members and Hilton brand relationships. Disrestein explains, "Of course, you want to focus on customers who can bring you the biggest benefits. But in fact, there are many opportunities to cultivate other customer relationships other than customers. For example. We are not Tourism company cooperation, join their customer data to our own customer database, distinguish between customers, and they like to vacation, some are more interested in gambling, and customers like our business And a conference service. "
Jeff Dispen noted that some customers scattered their store needs in several chain restaurants, they didn't accept their services they had to enjoy. Dischanda pointed out that "our research found that one quarter of the honorary member in the frequent visits did not have loyalty to any hotel. Because this part of the customer did not intend to strengthen its relationship with a particular hotel, they never enjoy their senior members. Qualification gives them the service to enjoy. So far, they have not changed their store behavior patterns, which indicates that they have not found the value contained in the loyal plan. "
5. Help Travel Manager abide by the company's policy
An important part of the Hilton business comes from the contract with the big company. If the big contact is a large enough housing demand, Hilton will provide discount prices.
"If you are the company's travel manager," Adam Pocoo explained, "You want employees to abide by the company's travel policy. You get a discount price through the commitment of a certain hotel. Although some travel managers can warn employees must abide by The company travel policy, otherwise it will not be reimbursed, but more travel managers have only the right to recommend. If someone is a faithful customer of Marst, Mario is not in its company's preferred hotel, then this customer How to act? If the travel manager cannot force the staff to comply with the company's policy, then the day of the travel manager's office will be very sad. "
"According to the above, we implemented a series of measures to provide a traveler who stayed in Maryt from Hilton's personal incentives. Our overall goal is to use the honorary member plan to help travel managers abide by the company travel policy."
Member attitude
HHW uses joint analysis to measure what customers want to get from Hilton Honor Member Plan. Adam Pocoo explained that "we invited members to conduct an hour and a half. We ask members to trade based on their value judgments and corresponding prices, including all kinds of services and entertainment facilities Wait. The results of the survey helped us to develop appropriate priorities when adjusting the plan. We also found that different customers have different needs. Some customers are service orientation. No number of aerospace miles or points can replace the warm welcome of the hotel And is identified as a hotel. Other customers are game-oriented, they are as familiar with free accommodation, and they are as familiar with the Rules of the hotel. Moreover, customers in the feedback department and even educate us should How to operate a member plan! Of course, many customers are the centers of the two. "Existing researchers use the representative samples of high-level members to study customers. Studies have found that Hilton Honor members in the Hilton chain have average stay at 30 times. The time check-in time is 4.2 night. From 1997 to 1998, Hilton Members used the Honor Member Hotel by 17.5%. Despite the improvement of operating results, more than half of the honorary members stayed in Hilton other chain hotels, the main reason is that Hilton relatively limited hotel network. Joint analysis shows that every five members stay at Hilton Hotel, only one of them can be attributed to the honorary member plan.
The study also found that the most important feature of the hotel's frequent customer plan is free to stay, followed by checking in the room upgrade and aerospace miles, and finally the hotel service. Studies have shown that members want to get a reward process for fine water long flow and not expired points. The above research results directly triggered the improvement of membership in 1999. At the same time, Distribution has been a more innovative form of expanding the reward program.
Disinprint recognizes that in their market research research, customers tend to simply describe the ideal plan to make the form of their familiarity. Since Disin has been exploring more radical innovation.
Hilton and Mario tends to attract "game-type customers". We want to conduct effective competitions on the reward factors, but it also improves the taste of the customer and the hotel experience. The basic customers we accumulated are mainly composed of game type customers. Therefore, we have begun to enjoy the benefits of the membership plan, but we should go further.
A task we are implementing is to significantly improve the living experience of high-grade members in the member plan. This is the key to competitive differences. At the same time, this is also unmovable. We hope to achieve the following effects, when the most important customers stay in Hilton Hotel, they know that they are the most expensive guests of Hilton and get special treatment. We hope that customers hold the following perspectives: "I will get the room I like, and get my own preferences, and when I encounter problems, the hotel manager can solve in time." We hope that all employees in Hilton have clear every day. Which customers are about to visit the hotel and ensure that these customers receive personalized services. Our new customer reservation system will deliver more information to the hotel. At the same time, we will grasp more information about the coming customers. Finally, we set a customer manager at each hotel, and his duty is to let customers have special feelings and solve customers may have any problems.
Starwood statement
1999
year
2
month
2
day
Wall Street Magazine announced the birth of Starwood's priority customer program. The program includes more than 550 affiliates represented by the World Visten Hotel, Sheraton Hotel, Four, Casla and Starwood New Brand W Hotel. Starwood plans to add some new features to the hotel's frequent visits, and these characteristics are imitated. Among them, the following four features are particularly worthy of attention.
So far, all frequent programs and flying frequent programs are now stipulated that in the peak period and certain reasons in the peak season and some reasons, members may not require free service. Starwood claims that as long as there is an availability, points can be used as the currency.
There is no reception capabilities to control the previously implemented popular guests to limit the number of rooms for free. Starwood tells all the hotels, all of which unsubstantous rooms are open to customers who use points. Paperless rewards, from the front customer must first replace the points to the certificate and then use the certificate to pay the authorized service. In the Starwood system, some hotels can directly receive the hotel's service.
The hotel's compensation may have disputes with Starwood by more than a hotel, especially those located in an attractive resort. So Sthawood has improved subsidies for free stays in the hotel. This will undoubtedly increase costs. In order to make up for these costs, Starwood has led higher fees for non-integrated accommodation, compared with its competitors, as high as 20% to 100%.
Starwood guarantees $ 50 million in advertising to increase the visibility of the plan in the public, and the former is much higher than that in HHW is spent on the plan. Diagram 6 Compare the loyalty plan of the four major chain restaurants after Starwood statement.
Disrested Difficulties
There is no doubt that Shindawwood has exacerbated customer loyalty competition. Jeff Disgkae must decide whether to keep up with the head. He caught in meditation:
Should we make a relative competition? Or should we convert our positioning, adhere to our faithful member plan and make it different from Starwood and other competitors? If we spend the same energy in the construction of Hilton brand, it will cost less cost, so we will get more profits. This will attract investors, franchisees and new builders. This is another reason why we identify the Hilton flag.
As Disresses discovered, Stanwood's priority customer program is a solution to the problem that produces a recent acquisition of Sheraton and Visten Chain Hotel. And Hilton does not have this problem.
They are working hard to develop the Starwood brand through priority customers. The plan is targeted by the most profitable business, namely personal business tourist business, in the field of market, Sheraton and Visten is not as competitive as Mariot, Hilton and Haiya. Sheraton's frequent customer plan is not very effective. On the one hand, Sheraton often changes the plan, on the other hand, Sheraton often allows the member to pay the cost of the plan. Visten does not have enough restaurants, which makes it not enough customers to make the membership plan for money. But now, Sadwood acquisition provides conditions for the problem of solving the scale of Visten, and the operation efficiency of Sheraton.
However, if a frequent customer plan is a good idea, then a bigger plan may be a better way. Disrester explained in detail:
The hotel usually pays 10% commission to the tourist agent to bring customers. They will check the cost of these programs in detail. Of course, they do this reason, but the rationality of spending requires the return on investment. Obviously, our competitors understand that investment in increasing membership plans will bring considerable value.
Disdin tries to predict the reaction of Hyatt and Mario Dawew statements. The competition in the industry is currently incentive. He recalls that he has been in the days of US aviation, called on people to remember the huge losses caused by the price war to the aviation industry.
Illustration 1 US Hotel Industry
Distributed country
Number of hotels
Room number
Number of own hotels
Franchise hotel
Management contract
Mariot International
53
1,764
339,200
49
936
776
Bath Hotel and Resort
90
2,700
447,967
76
2,439
185
Hilton Hotel Company
11
272
91,060
39
207
16
Starwood Hotel & Resort Hotel
72
695
212,950
171
291
233
Hyra
45
246
93,729
NA
NA
NA
Carlson
50
581
112,089
542
542
38
Hilton International
50
224
62,941
0
0
70
Ploves
11
1,398
198,526
1,059
1,059
179
Illustration 2 price of the hotel industry
• Deluxe: The average price is higher than $ 125, which provides a full service, including high-end entertainment venues, as well as special facilities for business travelers and conference customers. Hotel chains offering luxury service, Hilton, Haiye, Intercontinental, Mariot, Revival, Leeds Karlton, Sheraton and Visten.
• Advanced: Average price is between $ 100 to $ 125, which provides a full set of services for standard facilities, and most non-long-term live brands offer this type of service. Among them, there are hotel brands such as Crown, Double Tree, Enmbas Suite, Ryndess, Hilton International and Carat.
• Provides medium-level market models for food and beverages: Average price is between $ 60 to $ 90, which is mainly provided by a wide range of service restaurants with low levels and poor facilities. Among them, there are brand hotels in the western, Côte d'Ivot, Garden Hotel, Holiday Hotel and Comfort.
• Provide intermediate market models for food and beverages: Average price is between $ 45 to $ 70, which only provides limited services. This type of service is: Hapsen Hotel, Holiday Hotel and Comfort Hotel.
• Economical: Average price is between $ 40 to $ 65, which only provides limited services and hardly provide facilities. Peace Hotel, Red House Hotel, Travel Hotel, and the US Holiday Hotel is an example of a budget chain.
• Budgetary: Average price is $ 30 to $ 60, which only provides limited services and basic amenities. Provide the most well-known brand in the chain hotel in this type of service, there is a brand such as Made 6, Sham 8 and an Economic Inn.
• Long-term residential: Average price is between $ 60 to $ 90, which serves a long-term residence market as a target market, which is specially designed to provide long-term residence. MarioTl International has two brands for the market: Ruiden Hotel and Tao Enpret Radiss Hotel. Other chain hotels with such services include Brand, Summer Suite, and the US Long-term residential hotel.
Figure 3 Service distribution provided by the main chain hotel
Luxurious
Advanced
Provide food and beverage intermediate market style
No food, beverage intermediate market type
Economical
Budget
Extension
Hilton
X
X
X
X
X
Hyra
X
Mariot
X
X
X
X
X
Starwood
X
X
X
X
Illustration 4 Hilton Honor Member: 1998
(Although the following data can reflect the company's economic situation, some competitive sensitivity information has been processed.)
income
$ (In thousands)
Revenue from your own hotel
domestic
$ 39,755
International
$ 10,100
Revenue from strategic partners
$ 18,841
Conference fee
$ 1,141
total
$ 69,837
cost
Debt friend
Give the hotel's cash payment
$ 12,654
Deferred debt
$ 9,436
Purchase aviation mileage expense
$ 17,851
Member hotel acquisition expenditure
$ 7,273
Member communication fee
$ 4,236
Plan implementation fee
$ 17,988
total
$ 69,438
Net income
$ 399
Case writer Tips: In order to calculate the consistency, it is assumed that the member accommodation has an average of $ 158 per night. Suppose Hilton purchases an air mileage with a price per kilometer.
Illustration 5 Hilton Honor Member Planwork
Figure 6 Conditions of Member Qualifications 6998
Chain company
Member qualification limit
Point value
Eligible requirements
New member bonus
Aviation mileage value
Starwood
Every year, you will maintain basic qualifications; 10 times a year, or 25 overnight each year, maintain intermediate qualifications; 25 times or overnight 50 maintenance advanced qualifications
2 points = one basic dollar;
3 points = a intermediate or advanced dollar
Room price, food and beverage, laundry service, service, phone, indoor movie
Stage sex
The points can be converted to aviation mileage at 1: 1; but you can't get dual points
Hilton
Every year, you will maintain a blue member eligibility. Every year, 4 times or 10 nights maintain intermediate qualifications; each year is patron 16 or overnight 36 high-level qualifications 10 points = 1 US $ 1 15% intermediate integral reward; 25% Advanced points reward; 50% of the most advanced points reward.
Room price, food and beverage, laundry service, phone
Stage sex
Each time you are visible
500
Kilometer
Aviation mileage, and additional points
Hyra
Basic qualifications: Every year is taken over;
Intermediate qualifications: Take care of 5 times or 15 nights each year;
Senior qualifications: 25 times a year or stay 50 nights.
5 points = $ 1; 15% intermediate integral reward; 30% advanced points reward
Room price, food and beverage, laundry service, phone
Stage sex
Every time you visit
500
Kilometer
Aviation mileage; if you get points, you can't get aerospace mileage.
Mariot
Basic qualifications have no requirements; intermediate qualifications: 15 times a year; advanced qualifications: stay 50 nights per year
10 points = $ 1; 20% intermediate integral reward; 25% advanced points reward
Room price, food and beverage, laundry service, phone
Double items in 120 days
Each unit of the full service hotel is exchanged
3
Kilometer
Aviation mileage, other hotel expenditures exchange per unit
1
Kilometer
Aviation mileage, if you get the points, you cannot get the air mileage.
the company
Credit card points accumulation
Purchase points
Reward limit
Hotel Points Exchange Airlines Mileage
Hotel reward
Starwood
First use credit card to get 1000 points; 1 point hotel points = $ 1; 4 units of hotel points = $ 1 in Starwood Hotel Expenditure
NA
NA
In addition to JAL, KLM, Ansett, Quantas, Air New Zealand, the ratio is 1: 1; 20,000 points points can be exchanged
5000
Kilometer
The basic type exchange starting point is 2000 points; the intermediate level is 15,000 points; the advanced is no minimum.
Divided into 5 categories; 3,000 points for the first category free overnight; the fifth category is 12,000 points overnight
Hilton
Application starts to 5000 points hotel points; 2 hotel points = 1 US dollars; 3 hotel points = $ 1 spending in the Honor Member Hotel
10 US dollars = 1000 points, the upper limit is 20% of the number of points required
2,000 points = four times a quarter
10,000 points = 1,500 km; 20,000 points = 3,500 kilometers; 50,000 points = 10,000 km; the minimum number of points required for exchange of exchanges is 10,000 points; also available in the air mileage.
Divided into five categories: 10,000 points for a free weekend, 10,000 points; up to 35,000 points
Hyra
no
10 US dollars = 500 points, the upper limit is 10% of the number of points required
No-foundation
3 points point = 1 km; exchange minimum 9000 points
It is not divided into a variety in weekends, and it will be taken from 8,000 points; if the room is not required, it will be taken from 5,000 points; also accompany the reward of the partner.
Mariot
For the first time, I use the integral card requirements points 5000 points, 1 hotel points = 1 US dollar; 3 Hotel points = $ 1 cost in Mariott Awards Hotel
10 US dollars = 1,000 points, the upper limit is 10% of the number of points required for rewards
10,000 points = 2,000 kilometers; 20,000 points = 5,000 kilometers; 30,000 points = 10,000 kilometers, at least 10,000 points
Divided into two categories: low grade free weekend spend 20,000 points; advanced categories spend 30,000 points.
