Special Hilton Rates For HHonors Members

Recently you may have noticed that Hilton has rolled out discounted room rates for HHonors members. These are available exclusively when booking through Hilton channels, such as Hilton’s website, app, conact center, or through a preferred corporate travel partner.

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When you search for hotels in select markets (including New York, Miami, Houston, and San Diego as of now), you’ll see special rates listed for HHonors members.

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For example, below are rate listings for the Hilton Times Square New York, whereby you’ll see that the standard flexible rate is $429, while the HHonors discounted rate is $386, with the same cancellation terms.

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So why is Hilton offering a discount to HHonors members booking directly through their channels? Simply put, they’re trying to avoid having to pay travel agents commissions. Travel agents typically get a 10% commission on hotel bookings, so they’re trying to give members an incentive to book directly with them and cut out the middle man. And in this case they’re offering a discount of 10% for doing so.

Hotels offering an incentive to book directly through their channels is nothing new. For example, earlier in the year Hilton added free wifi as a perk as well, but only if you book directly through one of their “approved” channels.

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All that being said, while a 10% discount sounds nice in theory, keep in mind this is less of a discount than you usually get by using a AAA rate. Taking the above example, the HHonors discounted rate is $386, while the AAA rate is $22 per night less than that. So really only those who aren’t already savvy would be benefitting from this, in my opinion.

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Bottom line

Over time I expect to see hotels offer more incentives to book directly through their channel rather than through a third party. 10% is a lot of revenue to leave on the table, and much like airlines have cut commissions for travel agents over the years, I wouldn’t be surprised to see the same happen with hotels eventually.

Further conditioning people to believe they’ll always get the best rate directly on the hotel’s website is just part of that overall plan.

Comments

  1. I noticed this the other day when booking for a Houston trip. They offered $5 off a $170 room. I booked it at first, but later rebooked through Carlson Wagonlit with Citi Prestige, since I am staying 4 nights and it’s worth $20 more in rate to get the 4th night free.

  2. Hilton also offers discount for using points to Hhonors members- a least for diamond members. I have seen several instances of a normal room going for 50k points, and a deluxe or a jr suite having a Hhonors only rate of some random number like 30,960 a night.

  3. The HHonors rate is still a commissionable rate for travel agents. They do not want to pay the additional fees some GDS travel agent systems charge.

  4. It’s cool that Hilton is doing this, but in all honesty, wouldn’t the Hilton MVP Rate already be a better deal for HHonors Members (in most cases)?

  5. @Teddy,

    Hilton has recently changed the T&C for MVP as follows, “Please note: You must be an athletic administrator, athlete, or affiliated with a sports entity, sports-related company, sports group or event to be eligible. You will be asked to show credentials, such as an official business card designated with your team logo, etc.”

  6. Accor – Le club is basically offering the same on many properties. As a registered member you will get a discount of 10% on most of the available rates. I’m not sure if this is valid worldwide, but works well in Germany. That’s especially useful for some Accor brands like Novotel, where it can be difficult to find cheap rates on third party websites.

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