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Hilton Wants to Attract More Low-Tier Loyalty Members

Hilton Wants to Attract More Low-Tier Loyalty Members

Old Aug 23, 19, 12:33 am
  #1  
PeS
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Hilton Wants to Attract More Low-Tier Loyalty Members

https://www.flyertalk.com/articles/h...y-members.html

They should not probably even bother anymore with giving out the status via credit cards, but just start giving Silver to anyone. Maybe, as a Lifetime Dia, itís a time to reconsider my go-to chainÖ
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Old Aug 23, 19, 1:21 am
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Sounds to me like they are trying to get OTA customers to book direct and get base level rewards, which is fine by me. I doubt there are many Priceline/Expedia bookers consuming 20+ stays a year. These people may be swayed by Amazon credit but are unlikely to dilute the elite pool further. Good on Hilton if they can cut out the middleman.
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Old Aug 23, 19, 2:32 am
  #3  
 
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Originally Posted by PeS View Post
https://www.flyertalk.com/articles/h...y-members.html

They should not probably even bother anymore with giving out the status via credit cards, but just start giving Silver to anyone. Maybe, as a Lifetime Dia, itís a time to reconsider my go-to chainÖ
I remember when I got Lifetime Diamond several years ago and thought it was worth something. How wrong i was. I still love certain properties but Marriott making some extremely generous offers
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Old Aug 23, 19, 6:32 am
  #4  
 
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As someone having top Elite status with Marriott, Hilton, IHG, Wyndham, I must say, I won't mind if they decide to increase their base, All I care is how much I spend and what I get.
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Old Aug 23, 19, 6:43 am
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Originally Posted by HawkeyeFlyer View Post
I still love certain properties but Marriott making some extremely generous offers
Like what? They don't really run promotions, their IT is a mess and stays often don't post, elite recognition has fallen a long way since the SPG days, and the Ambassadors are increasingly less useful by most accounts (ignoring the few shills who incessantly brag about their special treatment on the Bonvoy forum). This is from someone who splits about 170 nights/year between Marriott and Hilton, so I have a decent base for comparison.
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Old Aug 23, 19, 6:49 am
  #6  
 
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Originally Posted by HawkeyeFlyer View Post
I remember when I got Lifetime Diamond several years ago and thought it was worth something. How wrong i was. I still love certain properties but Marriott making some extremely generous offers
Not quite sure how Marriott was "generous".

I have approximately 200 days of stays split between Marriott, Hilton, Hyatt and IHG, with the majority between Marriott and Hilton. I see Hilton as a better choice, between the two.
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Old Aug 23, 19, 8:33 am
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Originally Posted by HawkeyeFlyer View Post
I still love certain properties but Marriott making some extremely generous offers
Minority viewpoint of the day/week/month.
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Old Aug 23, 19, 9:14 am
  #8  
 
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I too am unsure how Marriott can be considered generous by any means, my wife is an Ambassador and has been so disgusted by her Ambassador and Marriott in general that she has started to stay at Hilton and has found things better other than the point redemption which seem insane in some circumstances.

She has twice now paid the difference between a normal room (which her employer will pay for) and an executive level room and she has said that consistantly had better offerings than their Marriott counterparts and the booze was less expensive than Marriott's in general.
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Old Aug 23, 19, 11:06 am
  #9  
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The article doesn't really make sense. If a Silver member starts staying more then they will become Gold... maybe what they mean is that they want people who only stay 10 nights a year to still choose Hilton, but if you can't achieve Hilton Gold (by credit card or otherwise) you would be better off with something like hotels.com
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Old Aug 23, 19, 2:30 pm
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Originally Posted by :D! View Post
The article doesn't really make sense. If a Silver member starts staying more then they will become Gold... maybe what they mean is that they want people who only stay 10 nights a year to still choose Hilton, but if you can't achieve Hilton Gold (by credit card or otherwise) you would be better off with something like hotels.com
It does make sense - not necessarily for a given customer, but for the business. Nassetta's comments were indeed clearly about direct booking channels - getting people off of OTAs has been a big overt push from Hilton for a couple years now ("Stop clicking around" ads, etc.). If they can flip people from OTAs and lock a decent number in at low-level tiers then that is, while small on an individual level, a substantial amount of aggregate revenue. And with those customers already tied to the program, there will be pull-through of some percentage who increase their travel and decide to chase higher tiers with Hilton rather than start afresh elsewhere. Loyalty programs always have been about commitment and aspiration - that's the emotional part that causes consumers to do irrational things.

I have always posited that part of Hilton's loyalty strategy has been reversing the time sequencing of the value proposition. Whereas with most programs you earn status first (incurring no benefits along the way) and then reap the benefits, Hilton has always made it super easy to earn status, so that guests basically always start out with something (whether that be gold, silver, etc.). This is rather smart, IMO, because it shifts the stickiness effect of the program to Day 1 - customers incur switching costs the second that they sign up because they already have status, and they're less likely to go elsewhere after even their first stay.
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Old Aug 23, 19, 6:07 pm
  #11  
 
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Originally Posted by arlflyer View Post
It does make sense - not necessarily for a given customer, but for the business. Nassetta's comments were indeed clearly about direct booking channels - getting people off of OTAs has been a big overt push from Hilton for a couple years now ("Stop clicking around" ads, etc.). If they can flip people from OTAs and lock a decent number in at low-level tiers then that is, while small on an individual level, a substantial amount of aggregate revenue. And with those customers already tied to the program, there will be pull-through of some percentage who increase their travel and decide to chase higher tiers with Hilton rather than start afresh elsewhere. Loyalty programs always have been about commitment and aspiration - that's the emotional part that causes consumers to do irrational things.

I have always posited that part of Hilton's loyalty strategy has been reversing the time sequencing of the value proposition. Whereas with most programs you earn status first (incurring no benefits along the way) and then reap the benefits, Hilton has always made it super easy to earn status, so that guests basically always start out with something (whether that be gold, silver, etc.). This is rather smart, IMO, because it shifts the stickiness effect of the program to Day 1 - customers incur switching costs the second that they sign up because they already have status, and they're less likely to go elsewhere after even their first stay.
Only super easy when from the USA.
I don't think there is a super easy way to gain status elsewhere 😭
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Old Aug 23, 19, 9:19 pm
  #12  
 
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Originally Posted by Beano View Post
Only super easy when from the USA.
I don't think there is a super easy way to gain status elsewhere 😭
Yeah, but about ~75% of their revenue is US, last I checked, so probably their main focus. And the whole CC thing just isn't as strong elsewhere in the world. Of course, you all have things that we're envious of over here, like better hotel lounges and airline lounge access on domestic/regional flights.
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Old Aug 24, 19, 5:47 pm
  #13  
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I really don't see any problem with this goal of Hilton. It's not as though they are saying they want fewer Gold and Diamond members. Moreover, what does a Silver member prevent a Diamond or Gold member from having with their stay?

And I will say that over the past month or so, I have seen an aggressive effort at hotels to get guests to sign up for the program (like discounted parking fee for their stay and/or coupons for drinks at the bar). I've noticed this being done at a few hotels while I was in line to check-in.
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Old Aug 24, 19, 6:58 pm
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Sounds like Hilton is just trying to attract more of the type that the loyalty programs are actually designed for: earning loyal customers and not having to give anything in return.
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Old Aug 24, 19, 7:28 pm
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I don’t see any disadvantages for DIAs so far. Maybe it’s about giving more points to Blue and Silver members, like 10.000 extra points for the 6./20. night.

The real problem for DIAs is the inconsistent recognition. At some hotels DIAs get a significant better treatment than Gold members, but at most of the Hilton group properties DIAs and Golds get the same treatment.
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