• But to do this, you need hotels everywhere. o If they go to Seattle, they want to stay in a Hilton o If they go to Dallas, they stay in a Hilton• If they go to Atlanta, Spokane, Sacramento, Salt Lake, Billings, Charlotte, they want them to stay in a Hilton . But for a frequent stay program to be effective, hotels are needed not only in major cities. • For example, you need a Hilton in Butte, MT. • There needs to be a Hilton in every Seattle suburb and every metropolitan city. This is where loyalty counts! o Every time a guest stays at a competitor, it strengthens your competitor's advantage and weakens your financial position. • The loyalty program really only attracts business travelers; the case states that business travelers only represent 1/3 of the market. Conference and leisure travel represents the remaining 2/3 of the market. Hilton should invest more energy in expanding its share in these two segments. • Room Upgrades o The most important part of the existing loyalty program from the guest's perspective. This results in the guest paying for a regular room and being upgraded to a suite for free. This would cost a lot less than trying to match the Starwood