Nov032011

HHonors Premium Rooms are 20% of all new redemptions

Case Study: Hilton Worldwide looks at Hilton HHonors since the launch of new rewards eight months ago. Several data points provided by Jeff Diskin, Hilton Worldwide Senior VP of Customer Marketing give insight to the current state of Hilton HHonors.

  • 45% of all Hilton guests are HHonors members.
  • 200,000 rooms are available as Premium Room Rewards.
  • 20% of all new HHonors redemptions are for Premium Room Rewards.
  • HHonors expects 50% more new member enrollments this year than last year.

My takeaways from the data are HHonors elite members are probably experiencing some impact on complimentary room upgrades considering the rooms pre-booked as Premium Room Rewards. Then there are e-standby room upgrades (NOR-1) that anyone can access when offered at time of booking, even guests who are not HHonors members.

45% of guests are HHonors members is a historical record for Hilton. This is actually higher than most loyalty programs which leads to the question: Why are so many people staying at hotels without joining the hotel chain’s loyalty program?

The majority of hotel guests at major chain hotels obviously don’t know what they are missing.

Loyalty Traveler current hotel promotions summary– October 12, 2011.

About Ric Garrido

Ric Garrido of Monterey, California started Loyalty Traveler in 2006 for traveler education on hotel and air travel, primarily using frequent flyer and frequent guest loyalty programs for bargain travel. Loyalty Traveler joined BoardingArea.com in 2008.

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Comments

  1. “The majority of hotel guests at major chain hotels obviously don’t know what they are missing.”

    That’s spot on, and it is really pretty crazy. Heck, even someone who travels only a few times a year would benefit from joining a program. Many don’t seem to know. The benefits of Hilton Gold are pretty strong – free breakfast and free Internet. You can get Hilton Gold with quite a few offers. It’s surprising more people don’t do that. Maybe their travel is arranged by their company and they bill their employer for Internet and breakfast. More likely they are ignorant

  2. One stat I’d be interested in seeing is how many times guests who are not members of the loyalty program actually check into a Hilton. Of course, ignorance may be bliss – think of the angst they save themselves with each point devaluation!

  3. No way is a view room or even a suite worth more than double the number of points. So count me out, and count me ticked off that I probably won’t get a Diamond comp upgrade at such properties. Often, I won’t bother staying there at all (e.g. Hilton Auckland).

    Cash and point rewards can be worthwhile, however.

  4. Some Premium rooms are very worthwhile. Like at the HWV, the Premium upgrade is just a few K more points than the standard room (i.e. 160K points for 4 nights of an oceanview room vs 145K for a standard AXON room.

    In some cases, like Bora Bora and Moorea, the “upgrade” to a King room from a Twin room is TRIPLE the normal rate.

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