St. Regis
When it comes to elite status downgrades, the landing can be either hard or soft, and each company in the travel industry has its own rules. Hilton’s harsh and inflexible policy has just made it easier for me to defect — a move I’ve been contemplating for more than a year.
I have previously written columns critical of Hilton HHonors, the hotel chain’s loyalty program. I haven’t enjoyed it, because I like the person in charge of the program — Jeff Diskin, senior vice president for global customer marketing at Hilton Worldwide. However, Hilton HHonors has lost much of its competitiveness in recent years.
I’ve been a Diamond member of the program consistently since 2003, and the Hilton chain was my first choice when booking hotel rooms for years. If it had no properties in the place I was going to — or they were too expensive — my second choice was Starwood, the program that includes Sheraton, Westin and St. Regis, among other brands.
I have two main criteria when I assess hotel loyalty schemes. The first is the meaningfulness of the benefits that come with elite status. The second is the number of points accrued on paid hotel stays and the points needed for an award stay. On both fronts, Hilton HHonors has fallen behind its competitors. Top elite benefits are not as good as those at Starwoord or Hyatt, for example, and award rates have been significantly inflated — more so when compared to other programs’ points devaluation.
My travel slowed down in 2010 — I flew just over 100,000 miles instead of the 200,000 the previous year — and I knew I wouldn’t accrue the 28 stays required to maintain my Diamond status. Many companies, including Starwood and the airline British Midland (BMI), offer elite members who haven’t met the requirements for re-qualification a soft landing — they downgrade you to the next lower elite tier, not the bottom one, regardless of how many points or miles you’ve accumulated in the last year.
I had only two stays with Starwood in 2010, and I needed 10 to qualify for Gold status. However, as a Platinum member last year who lost the status for 2011, I was given Gold status anyway. The same thing happened with my BMI membership — I went from Gold to Silver, even though I didn’t credit a single mile to my BMI account in 2010.
Ironically, I almost had the number of stays needed for Gold Hilton status but was still downgraded from Diamond to Silver last week. I could have had Silver after only four stays, instead of the 14 I made. I knew about Hilton’s hard-landing policy but thought that getting closer to the required 16 stays might help. On a trip to Las Vegas in December, my non-Hilton hotel was included in a prepaid package. Still, I decided to book a room at the Hilton and pay extra — that was my 14th stay.
However, Hilton HHonors showed no appreciation whatsoever. So I got Starwood Gold after two stays, but 14 stays weren’t enough for Hilton. I realize there are official policies, but that’s not the point. There are many ways to reward customer loyalty, especially after seven years of qualifying for Diamond status — not with credit card spending, but with actual hotel stays.
Hilton Worldwide has some great properties. The Conrad hotels are among my favorites, particularly those in Asia. I’ve been delaying the inevitable, but Hilton HHonors just made it easier to say goodbye. The program no doubt still works for many travelers, but it doesn’t work for me — and that’s what matters.
Related stories:
Hilton embraces ‘games-players’
Hilton or Starwood? Not even a close call
Hilton, InterContinental cross swords
Hilton devalues its loyalty program
Continue reading about Hilton tries hard to lose my business
Another domino in the hotel fees game has began falling. Three of the world’s largest chains — Starwood, Marriott and Hyatt — now offer free Internet access to their elite members. Another two, however — InterContinental and Hilton — are holding out. For how long?
Like most frequent travelers, who are usually also elite members of various loyalty programs, I’ve become accustomed to free hotel perks, such as breakfast, room upgrades and lounge access. At the same time, I’ve oddly got used to paying Internet fees that are sometimes higher for one day than my monthly charge at home, and for speed several times lower.
I complain about them occasionally — especially in Europe, where they can reach $30 — but if I’m working on the road, I keep paying them. After all, using a hotel computer in a business center is not the best way to research and file a story…
Continue reading about Free hotel Internet for elites slowly becomes the norm
Are airlines and hotel companies trying to benefit from charity donations to Haiti? When you donate miles or points, how do they decide into how many dollars your contribution converts? Should they be more generous than they are?
Every major U.S. carrier and hotel chain is offering the members of its loyalty program to redeem points in support of earthquake relief operations in Haiti, which was almost totally devastated earlier this month. For many Americans who may be short on cash but have thousands of points in various accounts, that is a rather attractive option.
Most airlines transfer the miles you redeem directly to the Red Cross or other organizations, which use them to book “award” tickets for their employees or disaster victims. Of course, those charities need either dedicated personnel or a travel agent to spend significant time working with the airlines to find the ever-so-elusive “award” availability…
What makes a hotel loyalty program most competitive? Is it the elite benefits it grants its best customers or the variety of options it offers for redeeming earned points? Does it matter who’s asking: a program executive or a traveler?
It turns out, it does. As a customer, if I decide to be loyal to a hotel chain, the first thing I do is look up the requirements for achieving top elite status, and then the benefits that status would give me. Only after that do I consider the value of the program’s points.
However, Steven S. Sickel, senior vice president for distribution and relationship marketing at the InterContinental Hotels Group, who oversees the chain’s loyalty scheme, Priority Club, has a different perspective. The group also includes the Holiday Inn, Crown Plaza and Staybridge Suites brands…
Continue reading about Hotels offer flexibility to earn loyalty
Do you still find having top elite hotel status worthwhile? Are you worried that cost-cutting might take away some of the benefits that make you stay loyal to your preferred chain?
The management of those loyalty programs desperately wants you to believe that, despite the hard times in the travel industry, the perks you’ve become used to aren’t going away. After all, the last thing they want in this difficult economic environment is to lose their best customers.
As if they needed a reminder of the dire business climate, the latest figures for the week that ended Aug. 22 showed that U.S. hotel occupancy fell more than 7 percent to about 60 percent compared to the same period last year. The hardest hit are the luxury brands, where occupancy dropped by about 14 percent during the past year through July, according to Smith Travel Research, a hotel data company…
Continue reading about Will cost-cutting trim elite hotel perks?
