There’s no denying that over the past few years hotel loyalty program promotions have become significantly less rewarding.
During the recession we got used to them offering a major global promotion just about every quarter, which made sense at the time, given that hotel rooms were empty, and those promotions got heads into beds.
However, now that hotel occupancy and rates are at a near all time high, hotel loyalty programs have certainly been less generous with promotions. For the hotel programs it’s a balancing act between:
- Offering promotions which generate additional incremental revenue
- Offering promotions which reward existing loyal customer
In other words, if you have an elite member that spends 200 nights per year at your hotels, do you want to reward them for those stays they’d make anyway, or give them an incentive to stay even more with your chain? The obvious answer is that they want to reward existing business as little as they have to without losing the customer, while they want to incentivize incremental business.
Here’s an announcement that the official Hilton HHonors representative posted on FlyerTalk about the future of their promotions:
Here’s how: we’ll now have two global bonus promotions (what are typically referred to as our quarterly promotions) throughout the year instead of four. But, the remainder of the time, engaged members like you will receive some very cool targeted offers based on your level of activity within the HHonors program. This tailored approach will allow us to reward our members with the most relevant offers based on their travel behaviors and needs, which will ultimately help you get to your next free night faster. In addition, all of our hotels will be participating in these targeted offers, which we know is a top priority for you!
One more new update – we’re working on a new feature that will allow you to login to your HHonors account and view all the targeted offers and promotions that we’re running just for you. It’ll help identify ways to take advantage of your HHonors membership by earning and maximizing your Points so you can get out and play! You should see this new feature in your HHonors account later this year, and I will be sure to keep you posted on specific timing around its launch.
The next official global bonus promotion will start March 1, 2015, and I will have more details to share at the end of February. Once the next global bonus promotion begins on March 1 and the targeted offers are rolled out, there will always be a bonus offer that you can take advantage of throughout the year. Stay tuned for more details to come!
- Hilton HHonors will offer two global promotions in 2015, rather than the usual four
- The first global promotion will launch March 1, 2015, with details to be announced in late February (keep in mind Hilton’s current global promotion runs through January 31, 2015)
- In addition to the global promotions, Hilton will be offering members targeted promotions throughout the year, which all hotels will be participating in
Now, in theory targeted offers sound great. Who wouldn’t want to be rewarded in a way that will “ultimately help you get to your next free night faster.” But in practice that’s usually not how targeted promotions work. They’re typically not about rewarding customers for stays they’d make anyway, but rather about stretching members to be more loyal in exchange for some rewards. On the plus side, it is exciting that all hotels will be participating in the targeted promotion.
What do you think of the new direction that Hilton HHonors is headed with promotions?