Marriott has tried to make sense of 30 brands after acquiring Starwood. They don’t want to get rid of or consolidate brands because different brands mean more hotels and more hotels mean more management fees.
They think they can have so many brands because people will choose hotels based on the loyalty program even if they can’t keep track of what the different offerings mean. If customers book on Marriott’s website it won’t matter if customers can’t keep track of which brands are even part of the program.
Hilton as their own new brands — Tru by Hilton and Tapestry Collection by Hilton — and noting they talk about them as by Hilton which is a great reminder.
Hilton describes both as having “a hotel experience that is vibrant, affordable and young at heart with style and personality unique from our existing portfolio.”
Is it odd this reminds me of aloft hotels, ‘a vision of W hotels’ and comes after a legal settlement no longer prevents Hilton ‘from creating any hotel brand that would compete “in the lifestyle hotel or branded boutique space'” resulting from a corporate espionage case?
And of course these brands add to sort of hipster Canopy.
We learn today that Tapestry Collection hotels will offer full points-earning which means 10 base points per dollar on both room rate and eligible charges.
Currently Hilton has three brands with more limited points-earning:
- Home2 Suites earns 5 base points per dollar on room rate only
- Hampton Inns and Homewood Suites earn 10 base points per dollar on room rate only
Limited-service hotels, of course, don’t offer as significant ancillary spend opportunities as full service properties do.
And like Home2 Suites the new Tru by Hilton will earn just 5 base points per dollar on room rate only.
Since Hilton’s elite status is easiest to earn by credit card, and Diamond still doesn’t have strongly defined benefits beyond Gold (and is itself easiest to earn via credit card), it doesn’t make sense to me to earn Hilton status based on stays. And 5 points per dollar hardly seems like enough incentive to shift wallet share.