• But to do that, you need hotels everywhere. o If they go to Seattle, they 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 stay in a Hilton. But for a frequent stay program to be effective, you don't need hotels only in big cities. • You need a Hilton in Butte, MT, for example. • You need a Hilton in every Seattle suburb and every metro city. This is where loyalty counts! o Every time a guest stays with a competitor, it strengthens your competitor's advantage and weakens your financial position. • The loyalty program is actually only aimed at business travelers; the deal says business travelers make up only a third of the market. Congress and leisure travel represent the remaining 2/3 of the market. Hilton should devote more energy to growing its market share in these two segments. • Room upgrades o Most important part of the existing loyalty program from the customers' point of view. This involves the guest paying for a regular room and being upgraded to a suite for free. It would cost a lot less than trying to match Starwood