Unintended Feature of Hilton’s New Website: Award Reimbursement Rates Shown

8 Comments

Hilton has one of the more dysfunctional hotel websites as of late. I probably need to log in from anywhere 4 to 5 times when trying to complete a reservation. Now, Hilton has at least revamped the graphic layout the site, but I am not sure if they have touched the back end at all.

hilton-revamped-website

When I was going through my past reservations earlier today, I realized that it was not only showing the rates that I had paid but also the rates that the hotels were reimbursed by Hilton HHonors for award stays. It appears that Hilton has now corrected the error, but I wrote down some values.

hilton-mistake

Here’s what I found out:

Conrad Bali $36.30

Conrad Singapore 45.81 SGD

Conrad Macao 268 HKD

Conrad Hong Kong 256.82

Hilton Moorea FP 32 USD

Hilton Colombo Residence 38.08 USD

W/A Rome Cavalieri 40 Euros

W/A Shanghai on the Bund $35

As you can see, most of the basic reimbursements from the Hilton HHonors to the properties are about $40. This is inline what I have seen in some other hotels as well i.e. InterContinental Hotels Group.

Conclusion

Hotels get reimbursed very little for award stays unless the hotel is at capacity when they get close to the ADR (Average Daily Rate). Considering at what rates these programs are selling points to consumers and companies, the reimbursement to properties is very low.

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8 Comments

  1. Wow – interesting. Is that the same across other chains like Hyatt/ Starwood? I always assumed the loyalty programs pay the ADR to the hotel? I think hotels would fight award stays much more if that were true, or?

    • Of course the hotels first pay for the points that are issued to the traveler. With Hilton this is 4.9% or maximum $110 per stay. The program then reimburses properties for the award stays.

      Starwood does reimburse more for properties for award stays. I have seen quite a few different amounts sometimes mistakenly on my award stays. I do have a list of them somewhere as well. The cat 4 to 6 that I have redeemed, have got around $100 per night.

      Hotels only get reimbursed the ADR of the night if the capacity is at 95%. Otherwise they get a set amount.

      They have incentives as well that varies from chain to chain. Some chains double the reimbursement amount if the hotel gets far more than average number of award redemptions etc.

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