ONQ Data driven hospitality By Hilton hotels corp case study
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Transcript of ONQ Data driven hospitality By Hilton hotels corp case study
Loui
svill
e
Prashanth.CSasikumar. SHallin Shano
Vaidehi. RAnne Helena. D
Data Driven Hospitality- Hilton Hotels Corp.
Introduction
• Hilton Hotels Corp. • Customers satisfaction - problem is taken
care of by hotel staff and the flawless stay. • Late 2003, Hilton spent a whooping $50
Million on a customer information system.• The customer information system – OnQ.• Part of 2 year old customer relationship
management strategy.• “Reason for being”, “100% percent customer
satisfaction” and “Customer really matter” – Hilton Hotels Corp hospitality.
OnQ
• 70% custom coded system.• Custom components - Property management
system, CRM application and Hotel-owner reporting module.
• 4 TB of customer profile info managed in IBM’s Informix database.
• Pegasus Solutions central reservation system.• Newmarket International’s Delphi sales force
automation tool.• Modified Legacy revenue management system• PeopleSoft Financial and HR applications.• Ecommerce site – Hilton.com
Advantages of OnQ• Online room reservation through Hilton’s central reservation
system.• Extra attention to VIP customers – spending increased from
40% to 61%.• Tracking fraudulent customers – taking advantage of “100%
guest satisfaction”.• Hhonors frequent guest program – building customer loyalty.• Customer get rooms based on their preferences, meeting
their needs and faster service.• They can update their frequent flier points for they stay at
Hilton.• More revenue per visit – sale of restaurant reservation, tee
times or concert tickets.• Employees - clearer idea about customers and their past
Hilton experiences.
Future developments
• OnQ as a decision support tool.• Reservations held for Diamond and gold
customers.• Guests can include what they want in their room
– water, extra pillows, treadmill etc.• Additional services – golf, spa, theatre packages
etc.• Building web based connections – corporate
travel departments to directly book rooms from its central reservation system.
• Rolling out portals - booking employee travel, advantage of volume discounts etc.
• Generating reports on Hilton’s spending.
Question 1
What are the benefits and drawbacks of OnQ system at
Hilton?
Benefits of OnQ• Facilitates better service – employees having
clearer idea about customer and their previous Hilton experiences.
• Build customer loyalty – Hhonors frequent guest program.
• Establishes value of a customer – extra attention to VIP customers increasing their percentage of spending.
• Identification of rare un-valuable customer – reducing unnecessary cost to Hilton.
• Faster service times – in hand knowledge about the customer preference enables faster allocation of rooms with specific facilities.
• Increased revenue generation – sale of restaurant reservations, tee times, concert ticket and so on.
• Reduction of costs - Central reservation system & online access of Hhonors account for customers – reduced call volumes and hence lesser no.of domestic call centres.
Drawbacks of OnQ
• Presenting deep customer histories to front desk at Hilton.
• It is very hard to update and keep a track of the preferences of individual customers and the history.
• Information about customer experiences would become obsolete with time.
• Customer preference may change at any point of time as they might expect to experience something new.
• Huge cost involved to satisfy the specific needs of customers.
• Loss of business as vacant rooms are held for Hilton’s gold and diamond customers.
Question 2
What does Hilton have to do create a competitive advantage
through OnQ?Provide some specific examples
Things to do to gain competitive advantage
• The OnQ has to be more than just a customer information system. It has to be developed into a decision support system.
• Hilton must record accurate customer data and be able to have this data presented clearly enough so that it can be used to help make decisions.
• Effective complaints management system - that helps to resolve dissatisfactions faced by customers and ensuring it wont occur in future stays.
• Providing new themes in their rooms and enabling guests to experience new themes.
• Providing room reservations to non Hhonors customers or non Hilton customers inorder to generate more income & expand the customer base.
• Desk workers should treat the customer as if they are coming into their own house, knowing about their travel itineraries and help them out through auxiliary services like concierge, air tickets, cabs etc.
Baker’s Supermarket• Uses buying histories and other personal preference data
to strategize how to earn additional revenue on the individual customer.
• Customer loyalty through Baker’s value card – Shopper’s card.
• Savings on purchase using the Baker’s value card.• Holiday sales and holiday offers.• Wide range of products including FMCG goods, medicines,
fresh vegetables, insurance policies, digital items and so on.
• Recipe and healthy living modules in its website - http://www.bakersplus.com/Pages/default.aspx
• Redeemable points on every purchase made by customer – can be used for medicines refilling, save on fuel programs and so on.
• Online checking of points and account information for the Baker’s plus Shopper’s card.
Question 3
Is it possible to have too much information about a customer?
Explain.
The answer• It is possible to have too much information but it is not
advisable to have too much customer information.• This may become a problem. As too much information
is recorded on a customer, it may become more difficult to assimilate through all of the data in order to aide in decision making.
• Further too much information may lead to ambiguity as more customers may have the same preference or needs.
• Also customer preference may change with time as they want to experience something new and hence there will be wide variations in preference with time.
• Having appropriate information and usage of the same would help Hilton to provide a better, faster and diverse service thereby increasing customer satisfaction to the max.
Thank You