Hilton Diamond Privileges when booked through a non-Hilton website

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Where is this documented? It seems like an odd rule and I couldn't spot it in the T&Cs. ...
Wotif is a 3rd Party site.

See the T&C's: (HHonors Terms & Conditions)


3.A "stay" is defined as the total number of consecutive nights spent at the same hotel, whether or not a guest checks out and checks back in again. Specifically excluded from the definition of "stay" are the following types of ineligible stays: wholesale/tour operator packages; contracted crew rates; travel agency discount rates, packages exclusively for casino player card holders; Team Member Travel rates, Hilton Family Travel Rates; stays secured utilizing Hilton Grand Vacations Club and Hilton Club timeshare programs, Hilton Grand Vacations marketing packages with a sales presentation requirement; complimentary or barter rooms; Reward Stays (as defined herein); NET Group rates; Series Group or IT Group rates; contracted Entertainment or Encore rates; third party websites bookings (irrespective of rate paid); and "opaque" channel bookings where the brand may or may not be known at the time of purchase. HHonors Points may not be earned (including as a My Way benefit) for or during ineligible stays, including without limitation, folio charges incurred during ineligible stays. If at least one night of the Member's stay is consumed with the use of HHonors Rewards Points, the entire stay is considered a "Reward Stay" and no HHonors Points may be earned, except that if Member is using Room Upgrade Rewards, any money spent on the original reservation will earn points and/or miles consistent with these Terms. Participating hotel will determine whether incidental charges incurred during either of those stays are eligible for points, except that Points will not be earned for incidental charges at Hampton Inn®, Hampton Inn & Suites®, Homewood Suites by Hilton®, and Home2 Suites by Hilton®.
 
Ok so that is the definition for points and status recognition. I couldn't really see anything that ties it into the application of status benefits.

As for why they'd give status benefits ultimately you did earn that status and its better to have you stay than not. If there's no benefits then why not just go elsewhere.

Qantas doesn't care how I book my flights when paying points(assuming paid fare) and status benefits. Could you imagine the noise if status benefits stopped applying to reward flights?
 
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Benefits cost them money and 3rd party rates cost them money- either discounts or commission. Starwood operate the same way IIRC, no status benefits/recognition or points.

Qantas margins to TAs are a lot smaller I believe, it's just how the systems evolved I guess.
 
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