With Elite Membership Loyalty at Record Levels, Hilton Turns Attention to Lower Level Members

During Hilton's Q2 2019 Earnings Conference Call, President and CEO Chris Nassetta discussed Hilton's record setting loyalty membership. According to Nassetta, the company is always looking for ways to better connect with Honors members and increase their flexibility in earning and redeeming points. This has led Hilton to partner with companies such as Lyft, Amazon and Live Nation. It has also led the company to start initiatives like the Connected Room, all in an effort to help members get the most out of its loyalty program.

Nassetta reported once again that more than half of its members are considered active, and the number of loyalty members that are classified as elite has increased 25% year-over-year in the second quarter of 2019. Those members that reach 100 nights or more in a year is up 60% versus the same period last year.

However, the company is now very focused on getting lower level Honors members engaged – those that stay only a few nights a year. Why?

"That's business – important business," Nassetta said. "The more that can be a direct source of business rather than indirect, obviously adds to our RevPAR premiums, and it does so in an incrementally efficient way in terms of distribution costs. […] The more engagement, the more share of wallet we get. The more that people are using their points and doing things with them that get them active in our system, that get them in our app and get them thinking about us, the more they spend with us.