Who pays for status points?
Feb 13, 2006, 2:35 pm
#1
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Who pays for status points?
I figure individual properties have to buy HH points from Hilton and I'm guessing they're on the hook for base points. That seems fair especially since those points are tied to revenue. But what about the bonus for S/G/D? Does the property pay or does Hilton pay? Just curious?
Feb 15, 2006, 9:38 pm
#2
Join Date: Aug 2002
Location: PDX
Programs: HHonors Gold since '02, Hertz President's Circle since '07
Posts: 3,226
It isn't based on the total number of points.
The hotel pays 4% to 5% of gross revenue for each HHonors stay, with a cap per stay of something around $110.
This is on top of 9% royalty and marketing fees.
The hotel pays 4% to 5% of gross revenue for each HHonors stay, with a cap per stay of something around $110.
This is on top of 9% royalty and marketing fees.
Feb 16, 2006, 6:52 am
#3
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Originally Posted by Rut Dog
It isn't based on the total number of points.
The hotel pays 4% to 5% of gross revenue for each HHonors stay, with a cap per stay of something around $110.
This is on top of 9% royalty and marketing fees.
The hotel pays 4% to 5% of gross revenue for each HHonors stay, with a cap per stay of something around $110.
This is on top of 9% royalty and marketing fees.
Who pays for the water and Milanos?
Feb 16, 2006, 10:11 am
#5
Join Date: Nov 2002
Location: Danville, CA - "When I read about the evils of DRINKING, I gave up READING.
Posts: 231
Originally Posted by BamaVol
Wow. At that cost, you have to wonder why they welcome us back. Who pays for the water and Milanos?
Who pays for the water and Milanos?
Feb 16, 2006, 10:49 am
#6
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Originally Posted by MrPaul0722
They welcome us back because we are proven hotel guests and they would want nothing more than for us to stay there on full revenue. It has happened to me... I took advantage of an award stay and liked the property so much, it has been my regular business stay hotel. They know what it takes to be a Diamond (or Gold) and in the long run, they hope it will pay out huge dividends. Hilton ROCKS!!!
Feb 16, 2006, 12:55 pm
#7
Join Date: Aug 2002
Location: PDX
Programs: HHonors Gold since '02, Hertz President's Circle since '07
Posts: 3,226
Originally Posted by MrPaul0722
They welcome us back because we are proven hotel guests and they would want nothing more than for us to stay there on full revenue. It has happened to me... I took advantage of an award stay and liked the property so much, it has been my regular business stay hotel. They know what it takes to be a Diamond (or Gold) and in the long run, they hope it will pay out huge dividends. Hilton ROCKS!!!
When an HHonors member stays at a hotel, they pay about 13% of gross revenue on the folio to the corporation. That's what BamaVol was commenting on. And I, too, was surprised when I found out just how high it is - it's a significant cut into margin.
Feb 16, 2006, 1:46 pm
#8
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They welcome us back because we are proven hotel guests and they would want nothing more than for us to stay there on full revenue.
I put in a good 120-150 nights/year in a hotel, and I pay my own way. If it wasn't for Marriott Rewards and Hilton Honors, I'd be doing all my time through Priceline or at the Motel DeGink. With the loyalty programs, I'm exclusively at Fairfield Inns and Hampton Inns.
So, while they don't get all that much from me, it still adds a few grand a year to the property's bottom line.
Is it worth it to them if I stay at the cheap end and spend my points in Paris? I don't know. But, from a corporate perspective, they do get a net gain. And, when I'm spending the company's nickel, I do zero in on my preferred chains.
Feb 16, 2006, 3:21 pm
#9
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Originally Posted by Rut Dog
It isn't based on the total number of points.
The hotel pays 4% to 5% of gross revenue for each HHonors stay, with a cap per stay of something around $110.
This is on top of 9% royalty and marketing fees.
The hotel pays 4% to 5% of gross revenue for each HHonors stay, with a cap per stay of something around $110.
This is on top of 9% royalty and marketing fees.
Feb 17, 2006, 7:02 am
#11
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Originally Posted by nova474
So people like us who stay at a hotel for months at a time (so hotel only pays 110) is the type that the hotels like?