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It has not been a good week.
Rob got a bit of flack recently for despairing at commenters who had failed to remedy their lack of business acumen before posting comments, and I can see where he’s coming from.
It seems to me that too many people are focussing on the micro-details without considering the macro picture.
When hotel (or aeroplane seats for that matter) are plentiful in the presence of dynamic competition and an abundance of consumers with decent amounts of disposable income, suppliers have to work hard for their custom. This basic economic fact explains the existence and evolution of innovations from which we have benefitted, like loyalty schemes. (It also explains the existence and evolution of more sinister and degrading innovations like zero-hour contracts and ultra-low wage practices that allow suppliers to slash their variable costs to an absolute minimum.)
When the opposite is true, then a loyalty scheme becomes an increasingly expensive mill-stone around the necks of hoteliers (or airline magnates for that matter) because it leaks precious profit by giving away valuable benefits at below the value that can be achieved from selling them at now elevated market prices.
If people haven’t already woken up to the fact that, for the foreseeable future at least, value derived from loyalty programme membership won’t match anything approaching historic experience, and is likely to diminish if anything, then you really have to shake your head at the naïve ignorance (or deliberate self-delusion) implied.
It seems like it’s a race to the bottom for the major hotel chains at this moment in time.
As long as people are prepared to pay the ridiculous rates they are currently quoting and demand remains high, expect it to be a seller’s market and for this type of stuff to carry on.
Once customers stop wanting to hand over £500 for 1 night in a 4-star hotel and rooms go empty for while then the major chains might have to reconsider their current strategy and try and add some long-term customers again.I look at rates in London currently and wonder who is paying those sorts of prices, Bankside for instance is averaging £300+ a night.
What’s this actually about? I’ve been getting offers to pay for upgraded rooms and other facilities for as long as I’ve been a HH member. Have they now announced that there will be no upgrades at all without payment being required?
Totally agree re crazy cash rates, most of my stays over the next year are being funded by the points I built up during the pandemic. If they persist beyond that I’ll be looking at Air B n B and VRBO.
My son got a letter from school yesterday about a proposed USA trip next autumn – 8 nights split between NYC, DC & Philly. They “estimate” the cost will be just under £2k pp as prices haven’t been released yet. But with HIs in NYC currently asking for $500 pn I think this is very optimistic, even if they get a special rate for a block booking.
Apparently HH always offered to sell upgrades to Silvers and non-elite HH members, but not Gold or Diamond members, on the basis that they had come to expect “free” upgrades as a perk of their status (even although upgrades aren’t strictly guaranteed by HH).
Now sales of upgrades has been extended to Gold & Diamonds, with explicit expectation of raising revenues, hoteliers face a conflict of interest that is likely in many cases to reduce the number or quality of “free” upgrades feeding through to Gold and Diamond members as better or majority of upgrade opportunities are deliberately held back and earmarked for sale instead of gratuitous give-away.
Is there a link to this somewhere?
Just google “hilton to sell room upgrades” and you’ll be spoiled for choice of explanations and opinions.
I’ve been Hilton gold for a number of years and have always been offered the ability to pay to upgrade my room in the app, either adding on breakfast or for a better room etc. I never have paid and have always been upgraded for free and got the breakfast for being gold, so I don’t see this as anything new personally
Most recently at Curio Milan and Garden inn Florence. Incidentally, despite the perceived wisdom that there are no upgrades available at a HGI, I did get one in Florence, and they specifically stated it’s because I was gold
Removed the link I found most useful (opposite of “many miles all at once”) because it’s to another (rival ?) site and I don’t want to breach any etiquette rules.
Rob & co more than likely to issue a typically considered and insightful assessment shortly anyway.
As others have said, this has been going on for a while. I am Gold and the app tried to sell me an upgrade in the US in July and the UK in August.
Can’t be certain, but it might have tried to sell me an upgrade in the UK last year.
I always refuse the offers as its something I should be getting anyway as Gold.
My last two UK stays I got upgraded at check in. My last two US stays I did not.
Removed the link I found most useful (opposite of “many miles all at once”) because it’s to another (rival ?) site and I don’t want to breach any etiquette rules.
Few kilometers none together?
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