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Network direct sales growth is three times as many other channels Hilton continues to focus on direct selling

Date: 2019-02-18

Hilton Hilton company, according to data released online direct marketing channel has been more than other distribution channels.

Hilton Hotel group President and CEO Chris he released the 2018 fourth quarter and full-year earnings report revealed that the growth of online direct marketing channels speed is three times as much as the other channels.

Hilton Hotel in September 2018 launched the latest marketing activities "look forward to Better (Expect Better)", promises to offer a price match guarantee through direct channel reservation guest, as well as by Hilton guest can provide additional discount bookings guests of honor.

The group is one of the many large hotel company, they launched three years ago "Stop click (Stop click Around)" activities, to counter the OTA.

He said in the earnings call, the company "is still very focused on promoting the direct relationship with the customer.

"We still believe we can do more.There are market factors, but we want to make sure that value proposition is the most compelling and how to price from us, from the point of view of technology and other things, to make our part of the honor system have better experience.We will continue to reinvest, and focus on this, but it is working.

He said, adding that the direct channel now account for 75% of all businesses, including network channels to account for only half of them.

Hilton would honor guest made significant growth in 2018, 14 million new members, the goal is to the end of 2019 has 100 million members.

"We are experiencing very high growth rate, I don't think it will slow this year, I think this kind of growth will continue."

Company to develop this project, he said, is to make it at higher and lower level are more attractive."It is clear that our members come from somewhere, and benefit from the other members of the project to some extent, these projects are changing their loyalty.We focus on the compelling reason people become a member.I can't give 'who come from the data, or to what extent we don't care about the exact data."

He then talked about to participate in the project, 42 million, 50% of members to actively participate in, this means that their consumption at the hotel.Five years ago, he added, the ratio closer to 15%.

Hilton Hotel group reported net income of $225 million in the fourth quarter, net profit of $789 million in 2018.

After adjustment, the quarter EBITDA (tax rates, depreciation and amortisation) for $544 million, slightly higher than the guiding value of $2 billion.

As of December 31, 2018, the Hilton Hotel's development plan has more than 364000 rooms, a 6% increase from the same period in 2017.