Saturday, April 7, 2012

Starwood and Hilton's e-commerce campaign

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Without a doubt, Starwood’s competitive preferred guest program initiated in early 1 raised the bar on pampering repeat hotel guests. Starwood made headlines by eliminating blackout dates, not differentiating between money and points, eliminating certificates, and raising reimbursement costs to participating hotels. They also used their massive size and proportional wealth to their advantage by pledging to invest $50 million in advertising.

But this didn’t affect me at all.

At , I’m a certified member of the google generation. My attention span is short. My wallet is thin. And my desire (and, some may say, ability) to travel is greater than any member of any generation before me. Yet my ilk and I are most likely targets for any savvy Internet campaign by either Starwood or Hilton. Or at least we should be.

As already stated, the HHonors program is most likely targeted to middle-class leisure travelers. Because the program started before the massive popularization of the Internet, its first customers are probably middle-aged hotel patrons who visited the hotel on a regular basis (whether through their company or personal choice). The next wave of HHonors members were most likely business-goers or conventioneers that came from the same age group. As a result, Hilton probably has a strong segment of middle-aged or older patrons who may or may not be Internet savvy. Therefore, an Internet marketing campaign could broaden their current market segment significantly.

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The best start for Hilton (other than to advertise on their own website) would be to request links or portals on their partners’ websites. In addition to fostering BB relationships and promoting hypermediation, these links could increase the number of hits to their website and, thus, the number of potential customers.

If their intent was to capture a younger market, they might consider increasing the number of partners to include youthful retailers such as Target, Kohls, and Armani Exchange. If Hilton offered points for purchases at these retailers, my generation and I might be more willing to participate in such a program.

Two other segments that might be influenced by an Internet campaign would be the business-goers and the conventioneers.

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