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Nor1: Elite Members Paying For Upgrades?

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Old Dec 26, 2006, 3:16 pm
  #1  
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Nor1: Elite Members Paying For Upgrades?

In the Hilton forum, the Hilton San Francisco- New Upgrade policy? (Nor 1) thread discusses a Hilton HHonors property charging Hilton HHonors elite members for certain types of upgrades.

When I first read this thread, I thought that it was possibly a new — and unwelcome — part of the Hilton HHonors frequent guest program. However, the thread reveals that the property is question is apparently using a service by an outside company called Nor1, which tells me that the Hilton HHonors program will not — or is not — the only frequent traveller program that will be — or is — affected by this.

Does anyone have any experience with the Nor1 upgrade program?

What do you think of this idea?
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Old Dec 26, 2006, 3:34 pm
  #2  
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Originally Posted by Canarsie
In the Hilton forum, the Hilton San Francisco- New Upgrade policy? (Nor 1) thread discusses a Hilton HHonors property charging Hilton HHonors elite members for certain types of upgrades.

When I first read this thread, I thought that it was possibly a new — and unwelcome — part of the Hilton HHonors frequent guest program. However, the thread reveals that the property is question is apparently using a service by an outside company called Nor1, which tells me that the Hilton HHonors program will not — or is not — the only frequent traveller program that will be — or is — affected by this.

Does anyone have any experience with the Nor1 upgrade program?

What do you think of this idea?
Canarsie, if you read the fine print. It shows Nor1 upselling, and not just to elite members. Welcome to the SFO Hilton, sorry we werent able to give you an UG they all sold out. But I notice here you are a Diamond Elite member so here's your friggen cookie
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Old Dec 26, 2006, 5:28 pm
  #3  
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From what I read in their powerpoint presentation; the basis of the company is generating revenue streams from "unused" inventory.

I agree with the above poster; soon it will be here is your cookie, sorry sold out at 15 bucks extra per room.

and in the OP, he was told they were rolling this out Hilton wide.....

this is not a good thing for Hilton or it's loyal customers.
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Old Dec 28, 2006, 5:04 pm
  #4  
 
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I'm surprised by the lack of response so far to this thread.

I'm afraid this approach is already happening at other chains, if not yet through Nor then through the front desk.

For example, I was just charged $25 (albeit not much) to occupy a corner king room at the Hyatt Regency Sacramento. I guess this isn't even a suite, but it has a balcony. The comp Diamond upgrade is to a standard Regency Club room.

At the Grand Hyatt Tampa Bay, I was told that as a Diamond I could be accommodated on the RC floor, but only on the side facing the Airport, not Tampa Bay. Or they could accommodate me in a bayview corner room on a lower floor. I chose the latter; in this case it was probably better than a standard RC bayview room.
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Old Dec 28, 2006, 10:18 pm
  #5  
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Sadly, I see it as a revenue maximization trend as has been seen in many other industries/programs. From a business point of view, maximizing this quarter's earnings (not maximizing shareholder value, which has a longer-term perspective) by squeezing out incremental revenue this way makes sense. Unfortunately, the long-term impact to loyal customers is not reflected in Wall Street's need for immediate results.

But if every program moves to it, which I fear, the long-term impacts are a wash. We just see the benefits of being a repeat, loyal customer going down the tubes. See the USAirways DM program transformation over the past couple of years. That, and this specific example, may be the future as we have passed the golden age of loyalty programs.
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Old Jan 21, 2007, 12:13 am
  #6  
 
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Lets see Hiltons next Marketing Add:

We are the only ones with Rolling Tier.

But when you reach diamond you only get a cookie.......

Sorry. For $15 we gave all the upgrades to everyone else. And no, you don't get executive lounge access because of unusually high occupancy in executive level.... The clubs just too full.

This is really really bad. With the low prices many people may upgrade.

I've made diamond through 2008 but I think that will be it. As this is now rolled out at 2 hotels there will likely be many more thus diluting the benefit to me. The bonus points are not what I value in a hotel frequent stay program. Its the 'nice' touch of upgrades, lounge access, breakfasts...

Bad Decision Hilton
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Old Jan 21, 2007, 12:50 am
  #7  
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Bad idea; one I definitely, as someone with elite status at a given hotel brand whose hotels do this, do not welcome.

This will mean more competititon for upgrades at the very least; and, worse yet, it may mean the hotel is incentivized not to give the best upgrades to elite members of the frequent guest programs unless they pay for them.
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Old Jan 21, 2007, 6:21 am
  #8  
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The scariest part about the HH "enhancement" is that some properties are also telling elites they can't use the lounge unless they are physically on that floor.

On one hand, I'm OK with a mechanism that allows people to confirm upgrades at booking-time for a price, as long as elites can still get both their "best room available" upgrade when they OLCI the day before the stay AND get a keycard to the lounge if all the upgrades are sold.

On the other hand, if they are using this outside consultant as a tool to eliminate benefits of the HH program, that's a very bad thing. The two cases that Explore wrote about would not have made me happy if they had happened at hotels where I had a Gold/Plat status.

Starwood has for several years sent me opportunities to confirm upgrades (either lounge or suite) in my booking email. I've taken advantage of those, which presumably is one less room for a Plat to upgrade to, and it doesn't seem to have killed the Starwood program. But the Nor1 thing scares me a bit...I don't know why.

In general, there seems to be a mentality at a lot of hotels these days that they need to extract the maximum dollar amount from each guest on this stay - nickel & diming, deceptive practices, etc. Loyalty and long-term customer value are, for some reason, becoming a thing of the past. In the hotel industry I don't quite understand that - I always thought properties counted on repeat customers: people who fly to the same city 15-20 times a year and always come back to the same hotel. I guess today's economy is so strong that it just doesn't matter anymore - maybe they're better off kicking those people to the curb.
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