Hilton Sees Loyalty Surge From Higher Traveler Engagement

Hilton Hotels & Resorts is seeing an uptick in loyalty in its Honors program thanks to what it describes as better engagement with members. In its second-quarter earnings call last Wednesday, Hilton CEO Chris Nassetta shared that engagement with its loyalty members was double what it was six years ago — up to 50 percent from 20–30 percent before. The Honors program surpassed 94 million members this quarter.

What’s behind the uptick? Nassetta said that improvements to Honors at lower tiers of elite status have helped drive interest in the program. Hilton early in 2017 retooled Honors to add better spending tools for travelers without massive point balances. Nassetta suggested that options that allow members to pay for travel partially with points or use points for Amazon purchases, for example, have driven engagement to new heights.

That may be a big part of Hilton’s success, but it’s also hard to ignore what’s going on in other sectors of the hotel industry. Marriott over the last two years has been working diligently to merge its loyalty program with Starwood Preferred Guest, and the fallout from that campaign has created more than a few disenfranchised travelers. It’s not impossible that a segment of Marriott’s old stalwarts have left the company for greener pastures.

Either way, these are high times for the Honors program.

— Grant Martin, Business of Loyalty Editor

Skift Stories and More Expert Insight

United Invests in Clear to Offer Frequent Flyers Easier Screening: United Airlines and Clear said on Monday the carrier plans to bring the tech company’s biometric screening to hubs in Chicago, Houston, and Newark. United, which has made an undisclosed strategic equity investment in the New York-based startup, will offer special rates for this service to its frequent flyers.

The La Quinta Brand Is Receiving Plenty of TLC From Wyndham: Wyndham Hotels & Resorts executives earlier this year threw out a big tease that it might be interested in pursuing more acquisitions, showing just how bullish it was on its new La Quinta Inns & Suites purchase. But during an earnings call last Thursday it was evident the large focus for executives remains on La Quinta.

Did an Aggressive United Push Southwest Out of Newark Hub? Southwest Airlines is retreating from Newark International Airport, saying its flights “underperform financially” and arguing the aircraft it used there can be more profitably deployed to Hawaii and other winning markets.

Wizz Air Ramps Up Growth Plans as European Rivals Wilt: European low-cost carrier Wizz Air is taking advantage of struggles at some of its competitors by ramping up its growth plans for the rest of the year.

Spirit Airlines’ On-Time Arrivals Plan Backfired When It Cut Corners: Spirit Airlines will take a major cost hit later this year as it rejiggers operations to focus on reliability after a rough second quarter, the airline said in a statement last Wednesday after markets closed.

Hyatt and Hilton Are Taking Different Branding Approaches Inside China: Global hotel chains are going beyond kettles and congee to warm the hearts of Chinese domestic travelers, a market worth a reported $734 billion (RMB5.05 trillion) last year.

JetBlue Blames Airbus Jet Delays for Slowing Its Growth: JetBlue Airways will curb its growth for the next 18 months and slow its interior retrofit program on existing jets because Airbus is significantly behind on delivering a new fuel-efficient airplane, executives said last Tuesday on their second-quarter earnings call.

British Airways Argues Pilot Strike Could Cost $50 Million a Day: British Airways pilots’ planned strike may cost the airline as much as $50 million a day, the airline said in a lawsuit as it seeks to halt the walkout.

Cathay Takes the Helm at Hong Kong Express Airways: Cathay says HK Express will remain a standalone low-cost airline, but it has put a longtime Cathay executive, Ronald Lam, in as its chief in one of its most strategic buys.

British Airways Cuts Avios Taxes to £1 in the UK and Europe — But It Isn’t as Good as It Sounds: Instead of paying £35 (Euro Traveller) or £50 (Club Europe) in taxes and charges on return short-haul flights, you can now choose to use more Avios and reduce your taxes and charges to just £1. Be wary, however. This is not necessarily a great deal.

Subscribe to Skift’s Free Business of Loyalty Newsletter

Grant Martin [[email protected]] curates the Skift Business of Loyalty newsletter. He is also a director of product marketing at TripActions. Skift emails the newsletter every Monday.