From the San Francisco Business Times
Hotel giant Hilton is getting a taste of the sharing economy and helping guests hail a ride with its new partner, Uber.
The partnership comes in the form of an Uber feature in the hotel chain’s HHonors app. Guests can set Uber “ride reminders” through the Hilton app or site and get automated notification on the day of travel to remind them when to request a ride.
“This provides an opportunity for Hilton to piggy back on the ‘sharing economy’ and appeal to the millennial market, who have less allegiance to (hotel brands), said Steffan Berelowitz, vice president of digital platforms at Travel Tripper. “Hotels are realizing now that technology is a key driver of their success, not just in terms of acquisition and loyalty but in terms of creating exceptional experiences that drive greater loyalty.”
While Uber and Lyft drivers are already picking up and dropping off riders at hotels throughout the country frequently, the integration is designed to help Hilton guests seamlessly hail a ride without leaving the hotel app and to “say goodbye to long taxi lines,” since the hotel’s address is automatically set in the Uber app.
“This provides an opportunity for Hilton to piggy back on the ‘sharing economy’ and appeal to the millennial market, who have less allegiance to (hotel brands), said Steffan Berelowitz, vice president of digital platforms at Travel Tripper. “Hotels are realizing now that technology is a key driver of their success, not just in terms of acquisition and loyalty but in terms of creating exceptional experiences that drive greater loyalty.”
The option to book an Uber is only part of Hilton’s app — the hotel chain also built a way for guests to book, check in and unlock which room they want. The integration with Uber’s API now allows guests the option to add-on a ride without ever leaving the app.
It’s not the first time Uber has joined with a hotel chain or travel industry business. It announced its partnership with Starwood Hotels earlier this year, but the deal with Hilton is the first time Uber has created a new native app for the partnership.
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The deal will also allow Hilton to tap into Uber’s local rider data. With a feature called ‘Local Scene,” Uber’s API will direct Hilton guests to the most popular local spots using its aggregate rider data in each city. That feature will release its digital guide on the app later in the month and will include 20 cities throughout the U.S.
“By partnering with Uber, a leading innovator, we’re helping travelers explore destinations like they’re locals,” said Rich DiStefano, senior director of mobile products at Hilton, in an online company statement. “This is the first time any company has leveraged Uber riders’ most frequented destinations to provide local recommendations.”
The statement echoes a similar theme within the so-called “sharing economy” — helping visitors to feel “like locals.” It’s been a big part of Airbnb’s marketing efforts as it promises to help visitors experience cities like the people who live there. Now, it seems, Hilton will attempt to do the same by offering the ‘Local Scene’ guide to restaurants and nightlife frequented by city dwellers, based off of Uber’s data.
It also follows Uber’s expansion into another hospitality realm — meal delivery. Recently UberEats, which it has debuted in five other cities, has launched its service in San Francisco, promising to deliver meals in 10 minutes from local restaurants.
“Hotels often use location and available attraction as an enticement for guests, so the notion that you can be on your Hilton app and stay in a particular location and then you can tap and get to local destinations, (is appealing for them),” Berelowitz said. “From Uber’s perspective, it’s fascinating to see how they are leveraging a solid foundation to explore innovative new channels that range from food delivery to things like this.”
Berelowitz said the partnership could also be an attempt by Hilton to tap the millennial market, who are estimated to be greater than 50 percent of total travelers by 2025. For Uber, it’s a gain in market share.
“In the sharing economy, we’re in a land grab … the companies that get significant market share end up having an exponential advantage over later competitors.”
