How do Hilton treat you as an Elite?

[justinbrett]

Finally heard back from the manager literally 5 minutes before leaving my room to check out. He’s refunding 40K points (total for 2 nights was 160K points, so now 120K points). I thought that was reasonable and thanked him. It is an amazing hotel, I think they’re just too complacent / arrogant to give good service to Diamonds like most other properties do.

 

[DC3]

Finally heard back from the manager literally 5 minutes before leaving my room to check out. He’s refunding 40K points (total for 2 nights was 160K points, so now 120K points). I thought that was reasonable and thanked him. It is an amazing hotel, I think they’re just too complacent / arrogant to give good service to Diamonds like most other properties do.

… just too complacent / arrogant to give good service to Diamonds points-users, perhaps?

 

[kyle]

… just too complacent / arrogant to give good service to Diamonds points-users, perhaps?

But that doesn't make sense because I thought the hotels get a good return from Hilton HQ

 

[DC3]

… I thought the hotels get a good return from Hilton HQ

Would you have more information on this?

 

[kyle]

Would you have more information on this?

Can't remember where I've read it years ago.

 

[levelnine]

Would you have more information on this?

The general model for points redemptions at chains is that the hotel gets peanuts if occupancy is low (think something equivalent to $15-50 per night) but a quite high amount if occupancy is high (think something close to full cash value). The thinking behind the model is that if occupancy is low, a points room is not taking away cash inventory, and therefore the marginal cost to a hotel is minimal.

 

[justinbrett]

… just too complacent / arrogant to give good service to Diamonds points-users, perhaps?

No, my complaints aren’t the big things (I did get a room upgrade with a good view). It was the small things, like telling me what my breakfast options were or that the lounge happy hour is 5-8pm. Basic stuff. I doubt the fact I used points is the reason.

I’ve never noticed a difference between points and revenue stays. I doubt the person on the desk even bothers to look.

At 80K points per night I’m sure the hotel is getting more than $20. This is a high end hotel. Hilton points are valued at 0.5c (US) making that US$400 a night, which is close to the cash rate.

 

[Flashback]

The general model for points redemptions at chains is that the hotel gets peanuts if occupancy is low (think something equivalent to $15-50 per night) but a quite high amount if occupancy is high (think something close to full cash value). The thinking behind the model is that if occupancy is low, a points room is not taking away cash inventory, and therefore the marginal cost to a hotel is minimal.

I thought that was Marriott's model, not Hilton?

 

[levelnine]

I thought that was Marriott's model, not Hilton?

It's all of them AFAIK. I read a report about that being the case at IHG hotels the other day. And have had a GM at a Hyatt hotel tell me the same. Obvious the precise details differ between chains, but it's broadly the same.

 

[justinbrett]

Hilton has dynamic reward pricing. The higher the demand the higher the points required. Just like cash. The points rate is usually very close to the cash rate, +/- 5%.

 

[levelnine]

Hilton has dynamic reward pricing. The higher the demand the higher the points required. Just like cash. The points rate is usually very close to the cash rate, +/- 5%.

REVEALED: How Much Hilton Reimburses Hotels When You Book Awards - View from the Wing

A new Chinese 6% VAT tax on hotel stays went into effect today. Hilton's website now reflects the VAT, as it should. However their award searches are showing not just the number of points for the award but also this new VAT based on the payment Hilton HHonors makes to the hotel. This is an...

viewfromthewing.com

 

[justinbrett]

REVEALED: How Much Hilton Reimburses Hotels When You Book Awards - View from the Wing

A new Chinese 6% VAT tax on hotel stays went into effect today. Hilton's website now reflects the VAT, as it should. However their award searches are showing not just the number of points for the award but also this new VAT based on the payment Hilton HHonors makes to the hotel. This is an...

viewfromthewing.com

Pretty sure dynamic pricing came in well after 2016 which is when that article was written.

 

[Cynicor]

Hilton has dynamic reward pricing. The higher the demand the higher the points required. Just like cash. The points rate is usually very close to the cash rate, +/- 5%.

That’s only true for the non base rooms, however.
The base rooms still mostly have a set points price.

 

[levelnine]

Pretty sure dynamic pricing came in well after 2016 which is when that article was written.

Do you have any evidence that Hilton has changed their reimbursement policy to hotels when that happened? What Hilton charges customers for points redemptions and what Hilton reimburses hotels in cash for points stays are quite separate from each other.

 

[justinbrett]

That’s only true for the non base rooms, however.
The base rooms still mostly have a set points price.

Only while the cash rate hovers around the same price. One that spikes so does the reward rate.

Whenever I book a room with Hilton I always do a comparison of the points vs cash rates, the best I’ve seen it is saving 10% using points but that’s rare, usually it’s bang on equal or slightly worse.

Equally points rates often go down closer to the date (as do cash rates) so it pays to keep an eye on it and rebook.

Do you have any evidence that Hilton has changed their reimbursement policy to hotels when that happened? What Hilton charges customers for points redemptions and what Hilton reimburses hotels in cash for points stays are quite separate from each other.

No but logic tells me they’re not paying a Hampton Inn that’s in a small town the same amount as a Conrad in NYC. The outcome of dynamic pricing is that rooms are almost always available on points even when it’s in high demand - otherwise hotels would not make these rooms available in these situations.

The $15-20 you quoted wouldn’t even cover the food and beverage credit.

This is all completely off topic, the end result is I’ve never experienced any discrimination between points bookings and revenue bookings with Hilton.

 

[levelnine]

No but logic tells me they’re not paying a Hampton Inn that’s in a small town the same amount as a Conrad in NYC.

Where did I say that all hotels are reimbursed the same amount? That's not what I claimed and it is not what the linked information says.

But prior to the F&B credit, hotels were on the hook for providing free breakfasts to elites, so that tells us nothing.

 

[Comoman]

Property: Conrad Centenial Singapore
Booked: Deluxe King
Received: Conrad Presidential Suite

Amazing upgrade a week ago due to a range of circumstances. First upgraded room (Exec King) not being ready, King suite on stop sale so ended up in the Conrad Suite. Got a range of amenities delivered to the room.

Had wonderful views of Singapore from the 30th floor. Huge room with separate dining room, small kitchen, lounge and social area.

 

[dairyfloss]

Property: Conrad Centenial Singapore
Booked: Deluxe King
Received: Conrad Presidential Suite

Amazing upgrade a week ago due to a range of circumstances. First upgraded room (Exec King) not being ready, King suite on stop sale so ended up in the Conrad Suite. Got a range of amenities delivered to the room.

Had wonderful views of Singapore from the 30th floor. Huge room with separate dining room, small kitchen, lounge and social area.

Very nice - and rare, too! Also showing it's age, though... I'm surprised they didn't refurbish the Conrad Suite when they did the rooms

 

[pjm99au]

Property: Conrad Midtown New York
Booked: Junior Suite
Received: Suite
Benefits: $25 /p/night credit
Cost: 95k per night

Continental breakfast costs you guessed it $25 but plus tax of $2.40 and tip (I left cash and they added a $9 tip to the bill of their own volition).

I can’t recall ever staying in a hotel of any rating where the staff were consistently as cold and unengaged as the staff here.

The rooms are nice enough but the air conditioning sounds like a train. There are much better options. We won’t be back.

 

[Flashback]

Property: Conrad Midtown New York
Booked: Junior Suite
Received: Suite
Benefits: $25 /p/night credit
Cost: 95k per night

Continental breakfast costs you guessed it $25 but plus tax of $2.40 and tip (I left cash and they added a $9 tip to the bill of their own volition).

I can’t recall ever staying in a hotel of any rating where the staff were consistently as cold and unengaged as the staff here.

The rooms are nice enough but the air conditioning sounds like a train. There are much better options. We won’t be back.

I wouldn't tip at a buffet breakfast. I'm doing all of my own service.