In The Big Chair - Chris Nassetta of Hilton

Chris Nassetta, Hilton

Hilton comprises 14 brands with more than 5,400 properties in 106 countries and territories. The company also has 78 million members in its Hilton Honors loyalty program. 

Prior to joining Hilton in 2007, Chris Nassetta was president and CEO of Host Hotels & Resorts. Hilton returned $1.1 billion to shareholders in 2017. Earlier this year it projected its 2018 full year net income will be between $802 and $837 million.

 

Hospitality is evolving as new models such as home-sharing gain traction. Where do you think the demand for private accommodation has come from?

I think everyone in the global travel and tourism industry is seeing an increase in demand. We’re truly living in a Golden Age of Travel, with a growing global middle class and more people than ever traveling within their own country and abroad.

With that comes greater demand for unique experiences and exceptional hospitality - something that plays to Hilton’s strengths. We have a nearly 100-year legacy of providing personalized guest experiences, and with 5,400 properties and counting, we’re not slowing down!

You’ve invested heavily in recent years in efforts to drive consumers to book direct on your brand sites - but Phocuswright research indicates that OTAs and their metasearch counterparts continue to capture an increasing share of online hotel bookings. What will it take for you to convince more travelers to book direct?

We are beginning to talk less about direct bookings and focus more on creating direct relationships with our guests. For example, our recently launched “Expect Better. Expect Hilton.” campaign is based on research and conversations with thousands of consumers. They told us that travelers have been conditioned to expect less. We believe that’s not what hospitality is all about - and certainly not what you should expect from Hilton.

We know that guests who book directly with us have a better experience and see more value in their relationship with us. So, the new campaign uses a great spokesperson in Anna Kendrick, and speaks very plainly about the points and perks associated with a direct relationship.

Ultimately I think the experience on-property is a critical factor for guests. We know that guests who book directly are three times more likely to stay with us again, and I put that down to our team members around the world who spread the light and warmth of hospitality. We know that our guests feel that difference when they stay with us.

Regardless of how the booking takes place, once that traveler is in a Hilton property, they are your customer. What are you doing to create a positive experience so they come back to you for future travel? 

Guests who are Hilton Honors members and book directly can expect Honors points and perks that lead to unforgettable experiences before, during and after their stay. But all guests are treated with our renowned hospitality when staying at a Hilton property.

We’re laser-focused on creating the best possible experiences by offering more brand options, more locations and more benefits with their stay than ever before. And guaranteeing an exceptional on-property experience isn’t just about offering free Wi-Fi or enabling guests to unlock their room with their smartphone - although both of those are important ways we enhance their stays.

At Hilton, we believe exceptional experiences are driven by the personal connections our 380,000 team members make with our guests. Every day I hear deeply inspiring stories from all over the world about team members going above and beyond to create those unforgettable moments with our guests - moments that our guests don’t necessarily have when they stay elsewhere.

We often hear that even members of loyalty programs are not very loyal - they often prioritize things like room features, location and price more than brand. How can you evolve the Hilton Honors loyalty program to incentivize members to prioritize your brands?

We know that guests are seven times more likely to stay with us again - and spend more - if they become Hilton Honors members. We’re constantly asking our guests for feedback on their experience with us, and that includes our loyalty program.

We’ve made a number of updates recently that are directly related to our guests’ input and desire for unique experiences. Honors members now have exclusive access to concerts and other events, and you can now redeem your Honors points on Amazon or use your points flexibly to book your stay - from pooling your points with friends and family members to splitting your payment between points and money using our Points & Money Slider.

Introducing these new ways to connect with Hilton has also led to big growth in Hilton Honors membership - we’re adding millions of members each quarter because guests see the value their membership offers.

And how are you bringing new customers to the Hilton brands?

Bringing in new customers to our Hilton family - and making them repeat guests - depends on our ability to meet them wherever they are. That’s why we are so committed to serving any guest, anywhere in the world, for any travel need they have - and doing so at every price point.

We’re delivering on this commitment by expanding our footprint around the world, launching new brands when it makes sense and underpinning our physical presence with the exceptional hospitality that guests expect each and every time they stay with us.

A great example of how we’re doing this is with Tru by Hilton. Everything about Tru was new for us - the brand’s style, our approach to launching it and the customer profile and price.

We were delighted when we saw a huge response from our ownership community, who invested in creating these really great properties and attracted new guests right away. Tru is now the fastest-growing brand of its kind in industry history (and Hilton’s fastest-growing brand ever), and we’re really proud of the impact it’s had so far.

People often say that the concierge is the most well-connected individual at a hotel - but also that their role can be digitized and put “in the room.” How do you balance the human vs. digital touch as hotels and consumers evolve?

Everyone’s lives are moving faster than ever before, thanks in part to great advancements in digital communication and technology. Even so, we are first and foremost a business of people serving people. Technology has greatly enhanced our ability to deliver exceptional service, but nothing will replace the relationships our team members build with our guests.

So while you can check in, select your room and order dinner from our Hilton Honors app before you arrive at the hotel, this technology frees up our team members to step out from behind the front desk to welcome our guests. Our team members are always going to be there to create the incredible experiences that our guests expect.

As you prepare to mark Hilton’s 100^th birthday, give us a sense of your global outlook for Hilton - what parts of the world are you most excited about for future growth?

Our 100^th anniversary is a really special milestone - very few companies make it to this point. It’s also a great opportunity to reflect on how far we’ve come and what’s next for us. Over the last century, Hilton has created the modern hospitality industry - we pioneered much of what the average traveler has come to expect. We created the concept of airport hotels; were the first to offer air-conditioning, televisions and a central reservation system; and invented iconic food and beverage options like the brownie and piña colada.

Looking ahead to our next 100 years, we’re really excited by the opportunities for growth we’re seeing around the world, particularly in Asia and Africa. As the global middle class continues to grow, we believe that there will continue to be opportunities to introduce guests to our signature hospitality and meet their every travel need.

What advice do you have for young people interested in careers in hospitality?

I like to joke that my career in hospitality started in the toilet - my first job in the business was in the engineering department of a Washington, D.C. hotel. Kidding aside, I truly believe that the best way to succeed in this industry - and really, any industry - is to raise your hand for new opportunities and understand how the business works from the front lines of customer service to the top levels of leadership.

Half of our leadership at Hilton got their start on property, and they’ve flourished because they challenged themselves to take on new opportunities. Now, they use that valuable perspective to lead our company and their teams to great success.