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And Hilton had audacity to DEVALUE points! - The 2009 Hotel Scene: How Bad Was It?

And Hilton had audacity to DEVALUE points! - The 2009 Hotel Scene: How Bad Was It?

Old Feb 4, 10, 9:53 am
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And Hilton had audacity to DEVALUE points! - The 2009 Hotel Scene: How Bad Was It?

And Hilton had the audacity to significantly DEVALUE points! - The 2009 Hotel Scene: How Bad Was It?

“Worst year ever. That’s how a lot of hotel industry observers are looking back at 2009. Just consider the stats. Revenue per available room was down 17 percent to $53.71, occupancy dropped 9 percent to 55 percent, and average daily rate decreased 9 percent to $97.51, according to Smith Travel Research’s year-end report” http://meetingsnet.com/economy/2009_...vpar_adr_0202/

At this moment, seems that IHG gets what Hilton is unable to comprehend.

“As companies fight harder to win consumer dollars, loyalty programs have been in the spotlight, and for good reason. IHG's "Priority Club" members are three-to-four-times more valuable to IHG's business than hotel guests who are not members of its program, said Berg. And club members who have earned enough points to be designed an "elite" member are about 12-times more valuable than non-member guests.
According to Berg, these guests are frequent travelers and joining the loyalty program changes the choices they make as they travel.
"We know from research that the value of loyalty points currency is paramount to members, he said. "Travelers depend on their rewards to help them cover the costs of their summer vacations and weekend getaways, and they don't expect their points to suddenly lose value overnight." http://www.cnbc.com/id/35219817/

Way to go Hilton!
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Old Feb 4, 10, 10:03 am
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well I guess they can now lower thier liabilities by 20% in regards to the value they held for them on their books
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Old Feb 4, 10, 10:19 am
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Maybe so.

Seem to recall Starwood Lurker explaining the process for moving hotels up and down in category and that ADR played an important part in the determination. Hilton’s disgraceful devaluation by moving hotels up into higher categories in this economic environment is a total screw over of Hilton's most loyal customers, the now HiltonDIS-HHonor members.

Last edited by John Q. Public; Feb 4, 10 at 11:02 am Reason: sleeping on the job - the devaluation was such a nightmare - error pointed out by Beckles - thanks!
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Old Feb 4, 10, 10:42 am
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Originally Posted by John Q. Public View Post
Included in Hilton’s disgraceful devaluation was the movement up into higher categories of many, if not most, hotels by one or two categories. A double negative hit for HiltonHHonors members.
The movement of hotels was not "included in" the devaluation, it was the devaluation.
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Old Feb 4, 10, 2:24 pm
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Seems somebody is pretty late to the party.

mike
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Old Feb 4, 10, 6:05 pm
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Originally Posted by MIKESILV View Post
Seems somebody is pretty late to the party.

mike
Yes but I appreciated the article.
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