7. 1919
Founded by
Conrad
Hilton
1964
The Hilton
Hotels
Corporation
Is formed,
and
becomes
the first
hotel company
to be listed on the
NYSE
1954
Conrad Hilton
buys
Statler Hotel,
which at the
time was
the largest
real estate
deal ever
1969
The first
Double-tree
hotel
opens in
Scottsdale,
AZ
1984
First
Embassy
Suites
opens in
Kansas City, MO
Same year
first Hampton Inn
opens in
Memphis, TN
1990
The
Hilton
Garden Inn
brand
makes its
debut
2005
Hilton
Hotels
Corporation
reacquires
Hilton
International
2007
Hilton
completes
merger with
the Blackstone
Group’s real
estate and
corporate
private equity
funds
8. Expansion Strategy
Hilton’s Core Business
Franchising & Alignment with
Real Estate owners is the only feasible
vehicle for fast growth in the capital-intensive
lodging industry
9. 4600 Hotels, resorts and
timeshare properties
Rooms
100 Countries and territories
Hilton’s Core Business
One of the largest and fastest
growing hospitality companies
in the world
75800
50000000Members
13. Hilton’s Core Business
S W
T O
Recognizable brand name
Diversified Portfolio
Low Market Share
Weak Management
Competitors: Marriot
The individuation of consumer choice
Downturn in business travel
Digitization and use of technology
Innovation in Customer Services
Dynamic growth in emerging markets
The Customers Really Matter
17. Hilton OnQ CRM
• Focused on Hilton’s four categories
of Best Guests
• Fostering a closer relationship with
best guests throughout their lifecycle
• Recognition, Personalization and
Customer analytics
18. Segment customers
Segment sub brands – offer
corresponding needs for each group
Segment strategies
Segmentation – General Introduction
19. • Interaction frequency – best show this customer’s
potential value and roughly predict future cooperate
possibility
• Check-in Times – recognize the most likely loyal
customers
• Online system engagement – easy to promote to
• Customer Value – recognize the most profitable
customers
Segmentation –
Customer segmentation Principles
20. Less than
1 Million
1.6 Million
23 MillionHilton’s four categories of Best Guests
①② &④ ③
Segmentation – Customers
① The 8 million active members of the Hilton Honors program
② 4+: Individuals who stayed 4+ times per year
③ Fast Rez: Individuals who signed up for an online reservation account
④ Local VIPs
21. Three main brands:
Homewood Suites
- upscale, yet casual, all-
suite residential-style
hotel brand.
- Target Customers:
Traveler who want to live
in a homelike
environment while
traveling
Hilton Garden Inn
- Highly functional and
innovative facilities hotel
with warm and attached
staffs
- Target Customers: smart,
productive and
practical traveler
Hampton Inn
- casual, comfortable,
personalized brand that
has sincere connection
with every customer.
Highly value customer
satisfaction.
Segmentation – Sub brands
23. Knowing the customer
in person with all the
information includes
name, recent
attainment. Make
customers feel being
recognized and being
welcomed.
Customize the
customer’s personal
needs. Giving them
what they really require
but not just service in a
general level by
collecting information
both in advance or
inner hotel.
Personalization Recognition
Supporting strategy.
Making sure Hilton can
quantify the customer
data and make quick
reactions.
Customer Analytics
Segmentation – Strategy
24. Delivering CRM Promise
Recognize guests at
the reservations
center
Print the Best Guests
arrival report every
morning
The Satisfaction and
Loyalty Tracking
(SALT) survey
Pre-assign guests
to rooms and
ensure that
the rooms were
appropriately
prepared
according to guest
preferences
25. Evaluate Hilton CRM
99.4% of Hilton
Hotel’s Brand
Portfolio
creates more
profits than
competitors by
2007
To sum up, Hilton CRM is successful!
Hilton Hotels’ Brand Portfolio (September 2007)
Hilton CRM ensures
the rapid expansion
and customer
services delivery
26. Limitations
1. Information transfer accuracy
Hilton has a large scale in franchise,
and the customer information was not
integrated and easily available. Since
the information system is not totally
automatic, there will be a challenge to
obtain all needed information
accurately.
27. 2. Hard to measure
CRM can be measured but it will be hard to be exact. Unlike quantitative figures, CRM
can be measured from both internal and external sides roughly through various channels.
Limitations
31. Financial Statistics
REV PRF NPR
IHG STARWOOD HYATT MARRIOTT HILTON ACCOR
2014 Hotel Industry Financial Statistics
32. Net Profit and
Growth Rate
Net Profit Growth Rate
Resources From googuu.net
Financial Statistics
33. Efficiency
Call Center Data Net Revenue per Call Conversion Ratio
2001 $73.09 38%
2002 $77.64 39.1%
2003 $84.39 40.9%
2004 $85.57 41%
2005 $90.30 40.9%
2006 $99.29 41.5%
2007 $102.55 41.4%
Source:from the case
34. Customer Satisfaction
• “With a score of 78 points out of a possible 100, Hilton took the leadership
position…”
--ACSI( American Customer Satisfaction Index), 2006.1
As the data shows, Hilton Worldwide led the
industry this year with a score of 80, two
points ahead of nearest competitor Marriott
International (78)
“This is the fifth consecutive year Hilton has
either held sole ownership or shared the
Hotels industry lead, according to ACSI data.“
-- By Forrest Morgeson and A.J. Singh
Source:from the case
35. Further Investment
• Customer Services Efficiency
• Customer Satisfaction
• Customer Loyalty
• Profit
• Competitive Industry
38. 1. Since the information system is not totally
automatic, there will be a challenge for
information transfer accuracy.
2. The program costs a lot in operation:
93
Million
Total
Cost
hardware and
infrastructure
implementation
application
development
40
Million
53
Million
Solution to strengthen:
Optimize the information transfer
structure, improve the joint process
between automation and manual work,
execute it consistently and flawlessly
across the network and reduce the
management costs as well.
Challenges:
Recommendation
39. 2.Utilize data to to improve Hilton CRM
Classic web
Browser, Email, links
WEB 1.0
Social web
Wiki, Blogs, interactive
WEB 2.0
Web of Data
Any media, any place, any device
WEB 3.0
43. 1. Attract more new and potential customers to get involved by
social media brand promotion.
2. Keep and increase customer loyalty
Collect customers diverse comments to track the performance
of current customer service.
3. Improve guest personalized experience by analyzing data.
Use data to personalize and provide a list of options within
Hilton's capacity.
Recommendation
BIG
DATA
44. Recommendation
4. Integrate all the data resources from different
social media channels to help improve individual
customer value management.
• Integrate customer value more effectively.
• Multi-channel provides more options for information
acquirement and enlarge customer engagement
45. MOBILE AS NECESSITY
• A user-friendly mobile site and/or seamlessly
integrated mobile brand app are quickly
becoming “table stakes” for luxury hotel
brands.
• 84% of Luxury Hotel brands now offer a
mobile- optimized site experience on
smartphones (up from 59 percent in 2014).
MOBILE
APP
46. Recommendation
1
• Add “Read Reviews” function
to enhance interactions with
users and collect customer
comments.
• Add online videos to optimize
customer experience
Improve Self-operated app “HHONORS” to satisfy
customer needs and improve customer experience.
Source: Luxury Hotels 2015 (Digital IQ Index)
47. Recommendation
2
Strengthen the cooperation with online travel mobile apps
• Attract more potential customers and create new customers.
• Increase more channels to enhance brand influence.