Originally Posted by
777 global mile hound
Hilton pays the hotel two dollars for that free night exactly what it is worth
Just kidding
Let us not forget all how important these programs are to the hotels
Take that brand name off the property and let the property drop out of the program and see how much business that given property does at the end of the year.
Free night redemption is a great thing for the property for a number of reasons. Members who redeem are having a brand experience.A positive brand experience means the property has the potential to get repeat business.When the room perishes they get nothing and no word of mouth
No chance to upsell/ sell meals,movies and any possibility of other revenue streams
A satisfied program member who redeems statistically is far more likely to engage more frequently in the program and stay loyal to the brand as well.If the property performs they may have a loyal customer too
It can be a win win situation.
Finally let us not forget that everytime you pay for your room those miles and redemption points are built into the price of the room.You are paying for that free room no matter how you slice an dice it.Make no mistake about it even if you still believe in free lunches
Smart hotels with good busienss sense treat all guests well and elite guests with the recognition they deserve no matter if on points or revenue.I can personally say that is typically the case in almost everyone of my programs.That said there is always another property in foreclosure and IMO it isn't always the economy the easy blame
While I would agree that there is definately value to the hotel by participating in a brand and loyalty program, I would also have to bust a few FT'ers bubbles when it comes to the idea that simply taking the flag away from a hotel will cause it to go under.
Don't get me wrong, I am as big of a milaage/point collector as anyone, and I do love my Hilton points. However, loyalty is not simply based on points and status.
In my position, I deal very closely with independent properties and I would certainly not write these off just because they have chosen not to affiliate with a chain. There are very high costs associated with being a part of a chain that can cut very deeply into the hotel's bottom line. While this is considered an investment, sometimes this is not a wise one. Many of my the properties that I work with on a regular basis are able to turn a profit without a flag because they have been able to provide a product and service level that exceeds a brand expectation.
Your last statement is correct, but I would elimiate the points and elite status from it. Treating ALL guests well and recognizing repeat and regular guests is the key. This does not always have to come in the form of points or miles. This can come in other forms... Perhaps it is the fact that the guest service agent remembers your name, your room preferences, and always goes above and beyond to make sure that you have a comfortable stay. This is the business of hospitality. The properties that are failing are failing for a number of reasons. Ones that provide very bad service levels, regardless of chain affiliation are definately at risk. Also, properties that are mortgaged beyond reasonable expectation are also at a high risk.
I personally prefer to stick with Hilton, but I can say with first hand knowledge that hotels not flying a big H or M or W for that matter can survive and do. Not all traverlers share the views of FT, where miles, points, and elite status trump all other aspects and amenities.