Presentation Outline
Transcript: Acquire more franchisees Expand Range of rewards for customers by partnering with me companies- Double Dipping Focus on Building Stronger Relationships = $ 69,438,000 Presentation Outline Expand Growing Demand in the lodging industry Growth in travel and tourism industry Getting potential clients from new partners (25 airlines, 3 car rental firms and other firms) Maintaining business without spending money will make more margin, it costs less Nights in 1998 What Will That Look Like? 712,000 Strengthen position in business market Targeting 1/3 of Hiltons Market Changing the hotel norms with no blackout dates, no capacity control while offering hotel reimbursement and paperless rewards Announced launch of new program with 50M budget for Advertising Increasing competitive pressure Damage Hiltons momentum Damaging market pattern Huge costs Reduced consumer spending Customers wont stay loyal to one company Economy Natural Disasters Weakness Match Starwoods Hilton doesnt have the option to do nothing because they are too small. If they do nothing they will loose part of our current market to Starwoods. Nights mem. got for free = + Hilton needs to decide if they are going to match Starwoods Loyalty program, Expand Current Market or Remain the same = $ 69,837,000 Implementation Remain the same _________________ Starwood has unvieled an aggressive frequent guest program Hilton is debating if they compete point for point or take a different position and hold on to our loyal members by differentiating hhonors from Starwood and other competitors Do they or do they not change their Hhonors memberships Open up a new brand under the Hilton chain Personally call all of their present clientele and host a banquet for all of their loyalty members. Upgrade benefits Supporting/investing in other companies They can administer an additional bonus to the current amount of points to each member of the HHonors program. Re-invest in the casino segment + Net Income Increase Spending in Advertising to upwards of 50 million Implement: No Blackout Dates No capacity Control Paperless Rewards Hotel Reimbursement Hilton cannot afford to match Starwoods Identifying the Problem What is Starwood Offering? Calculating Current Profit SWOT Analysis Options for Hilton Analyzing Options Justifying our Solution Implementation Plan Video Does Hilton Hhonors Pay Out? 7,907,000 + Options Revenue from honors Starwood is a much larger company This creates a new issue for Hilton Smaller market: One hotels decision determines the future for all Starwood deficit spending reduces cost effectiveness It is going to cost too much to compete Less standardization with competitors 7,015,000 = $ 339,000 Extra Rooms Used by airline mem. What is Starwood Attempting To Do? Opportunities S.W.O.T Problem Identification Threats Strengths: Brand equity (Reputation) Double dipping feature Large corporate clients World renowned properties New technology system Fewer rooms, less expenses (costs) Exchangeable points Gain Publicity Cost of Hhonors Nights They paid Hilton HHonors Worldwide:Loyalty Wars 180,000
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