Dive Brief:

• Hilton launched Pay with Points Wednesday, a new benefit enabling loyalty members to use points toward their bill through a fully digital checkout experience, according to a news release.
• Through Pay with Points, Hilton Honors members with Silver, Gold, Diamond or Diamond Reserve can use their points toward eligible hotel charges during the digital checkout experience in the Hilton Honors app, per the release. The offering does not require front desk assistance.
• With the program launch, Hilton claims it is the first major hotel brand to give loyalty members the option to use points toward their bill through a fully digital checkout experience, per the company. The move comes as hospitality players reevaluate their loyalty strategies in response to travelers demanding more flexibility and value. 

Dive Insight:

Hilton’s Pay with Points program grants guests flexibility in their digital stay experience by “giving Hilton Honors members the ability to put their Points to work even before they leave the hotel,” per the release. 

In other words, elite status members can now review their folio and apply points to eligible charges via the Hilton Honors app, either at the hotel or while on-the-go. Hilton’s release did not specify the program’s redemption rate.

The program’s rollout is in “direct response” to feedback from Hilton Honors members: According to Hilton research, 70% of members said they were interested in using points toward on-property purchases, while approximately half said this capability would make them more likely to stay or book with Hilton. 

“Our Hilton Honors members have told us they want more flexibility when it comes to using those Points,” Brad Anderson, vice president of Hilton Honors, said in a statement. “Pay with Points introduces another digitally-enabled tool to our members, reducing the friction of travel and providing them with the choice and control that they value.”

The benefit is currently available at 150 U.S. hotels and is expected to expand to 800 hotels by the end of the year, per the release. The program is expected to reach more than 6,000 hotels in the U.S. and Canada by early 2027. 

Pay with Points, which is powered by Hilton’s customized technology platform, is “the latest example of how the company is bringing differentiated digital experiences to members faster and at scale” and builds on existing tools such as Digital Check In, Digital Key and Choose Your Room, per the release. 

Mark Weinstein, Hilton’s former global chief marketing officer, previously said brands can attract loyalty from guests redeeming points, not just earning them. Hilton Honors currently has more than 260 million members worldwide across 144 countries and territories, per the company. 

Additionally, the new program comes after Hilton named Jeff Moore as its new chief technology officer earlier this month, who will be tasked with advancing the company’s goals around artificial intelligence. Earlier this year, Hilton rolled out a generative AI-powered digital concierge tool to help customers plan trips. 

The hotel giant also plans to transfer its common stock listing from the New York Stock Exchange to the tech-heavy Nasdaq, beginning Nov. 5, as it positions itself as an “innovative” company.