Hilton Starts Charging Elite Members For Better Rooms As Free Upgrades At Check-in Become Airline-Style Upsells

Hilton Honors will start selling upgrades to elite members of the Honors program through their mobile app.

The new Upgrade at Digital Check-In capability gives eligible members real-time visibility into both complimentary and paid upgrade options directly within the Hilton Honors app.

They say that:

  • this is “redefin[ing] the room upgrade experience”
  • selling upgrades to elite members makes the process “more transparent, more flexible, and more rewarding than ever” because members have “greater choice” to spend money for their upgrades “and confidence” that they will get a better room when they pay for it
  • but they will still be “leaving room for genuine moments of surprise and delight” because complimentary upgrades won’t cease to exist even if they’re crowded out by monetizing rooms for incremental cash from elite members.

Elite members can see what if anything is offered as a complimentary upgrade when checking in through the app – or pay for an upgrade.

For the first time, eligible members can view both complimentary and paid upgrade options during digital check-in, rather than wondering what might be available or needing to ask at the front desk.

While hotels have been selling ‘eStandby upgrades’ to program members for years – pitching them on paid upgrade options if available at check-in – I broke the news about Hilton’s plan to sell upgrades to elites instead of offering them complimentary. They explained to hotel owners that offering upgrades for sale to elites generated real incremental revenue for them:

Participating Full Service hotels saw 57% of incremental upsell revenue driven by Elite members. …Expansion of Upsell to Elite members is intended to drive incremental revenue into your hotels by offering more guests the ability to purchase an upgraded room via Digital Check-In.

That moves Hilton further along the path that airlines paved the way for, where twenty five years ago 90% of first class seats went to upgrades, awards and employees; over half were still upgrades a dozen years ago; and now Delta says they have it down to about 13% and American Airlines CEO Robert Isom declared excitement last month about heading down the same path.

And it’s a direction we’ve seen from other hotel chains, too. Marriott has too many elites, has turned upgrades over to AI, and is training Bonvoy members to consider a high floor an upgrade. They have renamed ‘suite night awards’ to ‘nightly upgrade awards’ to normalize that you shouldn’t expect to see suites if you’re an elite member of Bonvoy.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Hard to say which is worse between Hilton and Marriott.

    Suffice it to say that neither program is worth paying any attention to. The redemption rates are beyond absurd

  2. Just wait till some people upgrade to the “Executive Room” only to find there’s no Executive Lounge!

  3. Old news (and you reported it before so try more recycling). I’m Diamond but have no problem with this. Frankly I like it given how difficult it is to get upgrades. I mean half the hotel is elite since all it takes is a credit card (and I don’t do it by having the Aspire).

    This way if I want the upgrade I buy it. Otherwise I roll the dice to see what happens. Just like airlines I like this and let’s the company monetize the room while letting guests lock in an upgrade

    This is the new business model for all airlines and hotels. You may not like it and want your “free” upgrade but that isn’t practical given the business dynamics. Like many other things you post about you can adapt or not but whining about the “good old days” or asserting this will ruin the “elite experience” (it won’t since that hasn’t existed for years) accomplishes absolutely nothing! Get over it dude

  4. Hilton redemptions are sad outside of 0.6 cpp in the UK.

    Bonvoid offers valu in Italy if location isn’t a primary concern.

  5. Reactions like those of @retired gambler are why hotels and airlines continue to do this and get away with it. Of course, he is free to “like” these changes, but they unequivocally demonstrate a reduction in value for loyalty programs and that’s the point.

  6. When Hilton tries to upsell elite members with an “upgrade” to a higher floor—just like Marriott training their elite Bonvoy members to believe altitude equals luxury—remember that most fire department ladders can’t reach above the 10th floor. So, unless you’re auditioning for a role as Extra-Crispy Guest #7 in the next disaster movie, tell the check-in clerk you’d prefer a complimentary upgrade to a lower floor, where your chances of survival are higher than your room number. For reference, the Las Vegas Hilton Fire (February 10, 1981) had 8 deaths and over 300 injuries, and the Westchase Hilton in Houston (1982) added 12 more deaths, mostly due to smoke inhalation and inadequate escape routes. Stay low, stay safe, and leave the sky-high drama to the movies.

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