OnDemand WTP Pricing Research

Hilton Bumps Up Award Night Costs | Simple Flying

Hilton has made it a little more difficult to do so, through dynamic pricing (which means that the number of points you need to book a room is relative to the cash price for that particular room, which as we all know can change from minute to minute based on how many people are looking at the room on their browsers, how many times you’ve looked at that particular room on a booking page and more). Using dynamic pricing, Hilton has put in place some sneaky new charges that some members might not even notice…until it’s too late.

Why Dynamic Pricing and Award Night Rates Don’t Work

Hilton’s dynamic pricing system for its award nights is promoted as a good thing, however. All of the sudden, you assume, you can expect steep discounts on great hotels and redeem award nights for low point totals. What could go wrong? After all, if you stumble across an awesome hotel deal, like those last-minute room that hoteliers are trying to fill, then you can also expect to find steep point redemption discounts on similar rooms – at least that’s the way normal rationale works.

But there’s actually a lot that can go wrong. Dynamic pricing allows prices to go down…but it also allows pricing to go up. When a hotel is in demand, the amount of points it’ll take to redeem an award night will be more. When it’s not in demand, the amount of points it’ll take to redeem an award night will be lower…This is all fine, until, that is, the brand discovers that people are fine with redeeming lots of points for a hotel room, in which case, that high price point just sticks around and doesn’t lower, giving the illusion that that hotel is actually always in demand. This is great for Hilton, bad for Hilton Honors members.

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Hilton Bumps Up Award Night Costs – Simple Flying.

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