Hilton Case Executive Summary

Hilton Case Executive Summary

As the most recognized brand name in the lodging industry, Hilton is a diversified cooperation for its strong presence in all segments of hotels, casinos and vacation ownership. In terms of organizational strategy, Hilton Hotels Corporation relies on its scale, gaining members through its loyalty program and continuously expanding its hotel network. Beginning with acquisition of Promus Hotel Corporation, It now owns, manages, or franchises a portfolio of brands which includes Waldorf-Astoria Collection, Conrad International, Hilton Hotels, etc. With the focus of Customer Really Matter strategy, Hilton Hotel Corporation has invested much in CRM since 2002 aiming to build a broad customer base and the premier global hospitality business.

Hilton Hotels Corporation considers customer as the most important component of their business, so they developed objectives to build a close long-term relationship with their customers. To provide consistent and outstanding service to its customers, the CRM initiative was primarily focus on its four categories of Best Guests: members of Hilton Honor program, 4+, Fast Rez members and local VIPs. Hilton achieves this tight relationship through recognition, personalization, service recovery, and customer analysis. Refer to the endnotes ix and x, the net revenue per call is a measure of efficiency of call center and that the conversion ratio measures how many calls were “closed” turning callers into bookers. By analyzing Exhibit 3.7, the total efficiency improvement from 2002-2007 is 105.5% which indicates that the call center efficiency has been double through the adoption of CRM initiative. This apparent increase shows that the CRM initiative performs well for Hilton Hotel Corporation. What’s more, the conversion ratio from 2002-2007 increased by 3.4% totally though it decreased 0.1% in 2005 and 2007. Therefore, more calls are closed and the