"It's clear that hotel companies, like Marriott, Hilton, and Hyatt, aren't always upfront with their guests about their reward programs," stated Susan Valentine, national political director of Unite Here. "The investigation by the DoT is a significant step forward in holding airlines accountable for the promises they made to their customers. It is now time for state attorneys general to hold hotels to the same standards."
Unite Here's main criticisms of the hotel loyalty programs—Hilton Honors, World of Hyatt, and Marriott Bonvoy—include issues similar to those identified by the DOT regarding airline loyalty schemes:
- Devaluation of earned rewards: The group accuses these loyalty programs of retroactively altering rewards systems to reduce or eliminate customer earnings.
- Hidden and dynamic pricing: Unite Here alleges that major loyalty schemes obscure the true dollar value of rewards points.
- Extra fees: The organization charges that hotel networks impose additional fees for redeeming, maintaining or transferring points.
- Reduction in competition and choice: According to Unite Here, mergers within loyalty networks diminish competition and consumer options.
Local chapters across the country have been negotiating for improved wages and working conditions as many contracts expired on August 31. They demand full restoration of services cut during the pandemic which led to furloughs and layoffs.
Some companies have discussed service reductions during earnings calls post-pandemic. DiamondRock Hospitality CEO Mark Brugger noted efficiencies achieved through job combinations following layoffs during an earnings call in late 2020.
Park Hotels & Resorts CEO Tom Baltimore mentioned benefits from operational changes developed during the pandemic leading to lower labor costs compared to pre-pandemic levels on an investor call at the end of 2022. His company owns properties such as Hilton Hawaiian Village Waikiki Beach Resort where workers are currently striking.
Reduced staffing has resulted in fewer services such as daily housekeeping not being guaranteed and limited food options at hotels. This impacts perks associated with elite status within hotel loyalty schemes.
Strikes began over Labor Day weekend in cities like Boston and San Francisco but have evolved into indefinite strikes as workers seek new contracts with hotel groups.
Travelers planning visits to Boston, Honolulu, San Diego or San Francisco should contact their hotels ahead of arrival regarding potential strikes affecting services.
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