Although top-tier loyalty members often make up the most business for any hotel, its the Silver and Gold members that Hilton wants to see more. During an investor call, the hotel giant’s chief executive officer said they have plans to attract more low-tier members to their properties.
How do you determine the worth of a loyalty program’s base and silver members? By how much they stay with any given hotel chain’s properties. And Hilton Honors wants to see a lot more of them at their affiliated hotels. Travel Weekly reports company president and CEO Chris Nassetta is setting his sights on getting more activity from lower-tier members.
Hilton Honors currently has 94 million members around the world in their program, reflecting an increase of over 20% compared to last year. The hotel chain has boosted this number in many different ways, from advertising campaigns featuring Hollywood stars to offering incentives to hotel owners who sign up new members. And while more high-tier elite members are staying more at Hilton properties, it’s the lower-tier members that could make up more of their business.
“The more that can be a direct source of business rather than indirect, obviously it adds to our RevPAR [revenue per available room] premiums,” Nassetta told the call, according to Travel Weekly. “And it does so in an incrementally efficient way in terms of distribution costs.”
Overall, around 50% of Hilton Honors members are actively engaged in the hotel rewards program—and more Gold and Diamond members are choosing to make Hilton their primary hotel chain. The hotel company credits the increase in part on their partnerships with Amazon and Lyft. However, Nassetta and company are focusing in on Blue and Silver members in the program to improve their bottom line.
“You will continue to see more of this [engagement] from us, both for higher-level members and lower-level members,” Nassetta told the call, as quoted by Travel Weekly. “I think really what it’s focused on is getting greater engagement from our customer base and having more direct relationships.”
As part of its growth plan, Hilton is focused on growing its luxury footprint. In July, the company announced they will open three new luxury hotels this year and a total of 25 additional properties through 2025.
[Featured Image: Hilton]