LemonThrower

Several Hilton apologists have claimed that the changes were appropriate in light of the CNTU and other generous promotions. Well, if its Hilton's generosity that caused the problem, why doesn't Hilton simply reduce its points payouts on a going forward basis. Surely Hilton is not so ethically challenged that they were paying out those points with the knowledge that the advertised redemption levels soon would be changed? If they only reduce their payouts on a going forward basis, all of their customers who accumulated points can use those points as they expected to do and Hilton can reduce its costs in the future.

lisadiamond

Well said.

Xyzzy

If Hilton stopped giving as many points then a different (but overlapping) set of folks would be screaming and yelling. The only solution to the "They changed something about the program and it's so unfair to me because _____________" problem is not to change the program. We all know that that is not going to happen.

Programs change. Use your points. Hoarding causes devaluation, just like stuffing dollar bills into your mattress.

There's a six month warning of the pending changes, plenty of time to schedule a trip during the following *year*. That's 18 months, and that's what I call fair.

There wasn't any such warning that I know of for the air/hotel awards that are now gone completely (as of 12/31/2002) and I don't hear anyone complaining about that at all.

[This message has been edited by xyzzy (edited 01-14-2003).]

Superd1

I was just thinking about the devaluation of the Hilton program in the past 12 months and it sure leaves one scratching their head. What on earth is the business strategy of this company?

First we start off with give everyone that ask for it a Gold membership and then give them 50,000 bonus points for staying 4 times in 3 months. Now that you have attracted them as a loyal customer.

Raise the award stay from 100,000 to 175,000

Eliminate the Delta to Hilton Airmiles transfers.

Eliminate the United to Hilton Airmiles transfers with one days notice.

Eliminate on-line booking bonuses.

Eliminate the Member get Member bonus without telling anyone, but continue to let members sign people up when they specifically state that they are registering them under the program.

Create another tier of awards properties and raise the number of points for a free nights stay in many of the properties.

Have I missed any?

Anyone want to venture a guess as to what on earth the strategy could possibly be?

Xyzzy

I've got it -- They're learning from CO. HH rooms are too valuable to give away for free!

PaulGQ

You misssed a big one, HGVC members incur a %50 increase in required points to trade into Hilton HHonors points.

This effectively means that one must buy another timeshare at $5,000 plus incur $600/month annual maintainance fees to get the same amount of vacation.

OR

Owners can stay at any level 2 property for 6 nights. So one must either go down 3 property classes and stay one of only a few Hampton Inns AND lose a vacation day.

Now THAT is devaluation!

milesrus

The 250 Airline partner bonus is gone and the 4,000 per quarter threshold bonus is gone. The mail in your upgrades for a 1,000 point bonus is gone, The 10,000 and 20,000 discount coupons are gone, The profile bonus gone, the past double Car Partner Bonus from 250 to 500 points gone, then fall and summer bonuses where you get double stay points, the often double miles promotion have not seen one in a long time.

MIKEM

By-far-and-away, the reason I stay at Hiltons is to earn points for family vacations. I just stayed at a no-name hotel for a company sponsored event where I earned nothing. It just about killed me. I did not want to be there for nothing.

As the Hilton moves toward devaluation, I become less likely to stay with them. Staying at a Hilton now is becoming more like earning nothing.

Keep in mind I'm a Diamond who stays mostly at Hiltons and Dtrees. Why slap the hand that feeds you?

kawoh

profile update bonuses were 1,000 per update (max 2 per qtr) reduced to 500 per update (max 2 per qtr) and now, NONE!

I thought a GLON is 150,000 and not 175,000 from later this year?

DreamCowboy

Keep in mind that the Hawaii awards are the ones going from 100k to 175k while GLONP (Premium) are going from 150k to 175k. However, Hawaii Hiltons are considered Premium hotels and by right should have been at 150k. HHonors was only offering a special to try to spur interest in Hawaii by offering these at 100k. So one can view this as the award only going from 150k to 175k. Sure it is not a trivial amount, but other rewards programs have been increasing their levels in the past few years. I have watched Intercontinental raise theirs in 2001 and 2002 (no increase yet in 2003, keeping my fingers crossed).

I am still pleased with the new VIP award levels. Definitely a discount from the non-VIP levels. If you all want to leave because Hilton must become more competitive in these trying times, more power to you. Maybe upgrades will become more prevalent once you decide to switch and my Diamond status will be more valuable to me.

Superd1

My point is why do all kinds of things that cause a glut of points and member privelages and then devalue or eliminate everything you do that generates new business. Getting referrals seems like a good way to build a business. Maybe 1,000 points is a little rich so cut it back to 500 but don't make it so there is NO incentive to refer new members.

Maybe some of the franchises will drop out because being affiliated with the Hilton brand doesn't produce more business and then your Diamond status will be even less valuable to you.
Something to think about.

LemonThrower

I understood the devaluation to mean that every VIP award that was 100K will be 175K. Are you saying places like Sorrento will go from 100K to only 150K? Even that change of 50K is HUGE. Its also irresponsible--if there are too many points, stop awarding points so liberally rather than devalue what you have alread given.

Superd1

I'm a HGVC owner as well and I missed that one totally.

Also forgot about the elimination of the update bonus.

So any one want to guess what the next thing to go will be?

I predict the end of the the double dip will be next. The recent promotion allowing people to get 50% more points instead of airmiles looks very much like they are testing the water to see if they can safely eliminate the 500 per stay airmiles.

I realize that everyone in the travel industry is under pressure. This is the time for a bold company to do things that steals market share and cements long term loyalty. It wouldn't take much for one of Hilton's competitors to steal a big share of their business.
All they need to do is comp existing Gold and Diamond members with comparable status and offer a few other perks and they won't be able to handle the flood of new members signing up. This is a very dangerous path that Hilton is negotiating.

lisadiamond

I appreciate the intelligent discourse on a subject that is close to my heart, accumulation of HHonor points. I fear that Hilton's rush to devalue its loyalty program by simultaneously increasing the points necessary to claim an award while increasing the pool of claimants will lead to unintended consequences; or as my 14 year old son might say "will come back and bite them in the a_ _."

For me and many other road warriors, HHonors benefits differentiated Hilton from other business hotels, it was "value added." When we accumulated bonuses for 4 quarterly stays; airline flights; booking online; updating our profiles; converting UA miles to points, . . ., I gladly drove an extra 10 to 15 minutes to stay at Hilton properties, bypassing closer Sheridans, Merriots, Hyatts, etc. just to get my points and to ensure Diamond status for the following year.

The recent dimunition of benefits has changed where I stay, when traveling on business its now convenient location, location and location. It is simply not worth my time to drive the extra distance for devalued HHonors points. The result, this quarter I have 7 Hilton nights,13 Starwood nights and 8 Hyatt nights; last year I had 22, 3, and 1 respectively. Instead of concentrating on just Diamond, I expect to achieve elite status in the other programs as well.

I understand the challenges presented by current economic conditions. However, Hilton's drastic HHonors program changes are alienating those who they can least afford to lose, the business traveler.

TrojanHorse

Every chain has its problems with devaluation so from hiltons perspective, it doesn't really hurt them if they raise award thresholds. Marriott had there big increase two years ago, SPG this year, Hilton now.. I can't really say much about Hyatt since I am not one who stays at many of them.

I mean one chain is not any better than another, sure one has no black outs, but less to choose from, one has more to choose from but is over priced (awards), one has the most selections from low end, to long term to high end, but is hard to achieve elite.. I mean they all have pluses and minus'