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Hilton’s Main Problem
Starwood launched an aggressive new loyalty program backed by a $50 million ad campaign
introduced features like no blackout dates and no capacity controls for reward stays, which were expensive to match
In 1997 Hiltons Corporations agreed to:
reunify the brand worldwide and run the Hilton HHonors program across all hotels globally
Hilton HHonors differentiators:
double dipping: earn both hotel points and airline miles
offered four tiers (blue, silver, gold, diamond)
integrated worldwide
Hilton’s strategy focused on turning games players (those chasing free stays) into..
loyalists
Strategic Options
Nothing - status quo
Match competitors
Something different - differentiate
Exit