After devaluing the value of its points twice in half a year, Hilton decided to continue with the removal of a key elite benefit other chains provide.

Hilton removes late checkout

Go ahead and take a look at the Hilton website to see the list of elite benefits by tier. Notice what’s missing? There’s no reference to late checkout being a benefit. Historically, it has been subject to availability at all hotels, not just resorts. But it’s something that if you used to ask for, there wouldn’t be too much pushback if it’s reasonable.

But lately, Hilton has taken more of the approach that it wants to earn extra revenue for the benefit. They started charging money for guaranteed late checkout, even to elite members. In some ways, I can understand that distinction:

• You could officially guarantee it in advance for a fee, or
• You could gamble and request it when you arrive, but it would be a risk you assume

Of course, there’s an inherent benefit for the hotel to earn more revenue by charging for it. Just giving it away for free is a missed revenue opportunity.

This continues the negative trend

Sadly, this latest change is just another deterioration associated with the Hilton brand. It has devalued its points twice in the last six months. That means customers who once thought they had saved up enough points for their dream vacation had the rug pulled from under them… twice. Pretty disrespectful of them.

A few years ago, it pivoted to a cheaper elite daily credit instead of free breakfast. That credit I’ve found is unlikely to cover costs for two adults eating breakfast. Ultimately, it again allows hotels more revenue opportunity as who could perfectly use the credit and not go over? Not to mention the breakage if you don’t use the credit every day. (At least I’ve found it could be used at alcohol if the bar is an included restaurant.)

Not only is late checkout now fully monetized, but the hotel chain also sends out those infamous nor1 upgrades to elite members. I didn’t emphasize it from our post discussing the Grand Wailea, but the hotel sent out an email wanting us to pay for upgrades. Slowly but surely, elite benefits are becoming materially less meaningful.

Hilton has a problem with its program it doesn’t know how to fix

The above changes, taken with this removal of a late checkout benefit, strongly suggests that Hilton has an elite member problem. There are far too many elites and the hotel chain has no idea how to manage expectations. It would be interesting if the chain identified how many elites (and what level) are staying in their hotels each night. Quite simply, the extra information would at least make members more understanding as to why everyone can’t get benefits.

It shouldn’t be a surprise to the chain that there are too many elite members. Hilton hands out Gold status like it’s candy, offering it as a giveaway on the $150 Surpass credit card. And Diamond status is thrown in with the $550 Aspire credit card, which comes packed with all sorts of other benefits. The credit cards have been good for Hilton, but it has become clear that they don’t know how to balance with promised benefits.

So rather than finding a creative way to make this work or perhaps making a more exclusive elite tier, they just decide to alienate the elite members at the expense of making a quick buck. It’s not a pretty look, but we’ll see if Hilton sees any fallback from members at some point. I feel the worst for members earning status the hard way rather than getting it via credit cards. They have the most to lose, and perhaps might be the members Hilton wants to keep.

Bottom line

It feels like Hilton just can’t help itself from sacrificing member experience to earn a quick buck. The latest cash grab is the quiet removal of late checkout.

I’ve long considered Hilton to be my chain of third choice, behind Hyatt and Marriott, but the death by a thousand cuts is becoming tough. Perhaps it’s time to go shopping for a third place chain?

Suggested reading:

• Ouch: Second Hilton Honors Devaluation in Five Months
• Everything You Need to Know About Hilton Lifetime Elite Status
• The Value of a Hilton Elite Night