Skift Take
Online travel agencies and the looming Starwood-Marriott merger won't get Hilton down, according to Hilton's CEO. Solid first quarter earnings suggest a stable year ahead for the company. But will alienating online travel agencies and pursuing an asset-light strategy ultimately result in success? We'll have to see how the rest of the year plays out.
In a conference call discussing first quarter earnings on April 27, Hilton Worldwide CEO Christopher Nassetta not only beamed about the success of Hilton's direct booking war efforts against the online travel agencies, but he also took a few stabs at the upcoming Marriott-Starwood merger.
"We're in the game of quality at this size, as opposed to quantity," he said at one point when asked for his thoughts about the Marriott-Starwood merger's impact on Hilton.
Additionally, he gave plenty of insights into the company's business and future strategies, from its planned spinoffs and the rapid growth of the Tru by Hilton Brand, as well as the company's future plans to experiment, once more, with cancellation fees.
Here are the highlights:
"Stop Clicking Around" Appears to Be Working
Nassetta emphasized the importance of Hilton's "Stop Clicking Around" global marketing campaign, its largest ever, which represented the company's entry into the direct booking wars against third-party distribution sites and online travel agencies (OTAs). The campaign, which debuted in February, encourages guests to become Hilton HHonors loyalty members so they can book the lowest possible room rates on Hilton.com instead of turning to sites like Booking.com or Expedia.
"Early results are very positive," he said in his prepared remarks, "with HHonors enrollments increasing nearly 90 percent since the launch, helping drive HHonors occupancy to a record 55 percent in the quarter, an increase of 4 points versus last year." He also said, "The share of Web direct channels in our distribution mix is gro
