nologic

The very long list of non participating properties substantially waters down thie practical appeal of this promo.

nologic

If the hotel is near full occupancy, SPG pays a full rate. If the hotel is not near full occupancy, SPG pays less, but then the room would be empty and the hotel would get nothing. So, SPG award stays are an attractive revenue benefit to the hotels.

Often1

The advantage for a property to opt out, apparently a contractual right at Starwood, is that the property doesn't pay SPG for the points awarded. The more points, the greater the cost. Points are effectively a discount against the rate the customer pays. They are effectively a discount although the customer doesn't see the discount as a dollar credit.

If you were the property owner and you could sell and fill a room for $350/night or $325/night, which rate would you pick? Well, it's the same thing here. If you can fill a room at $350/night with no promo or at $350/night with triple promo, which would you choose if you had the choice.

This represents a clear choice by the opt out hotels and I presume that they have undertaken the market research to determine that they will do just fine by opting out. Or put another way, the pittance they will lose from those who stay elsewhere is far made up for by those who want the rooms without the promo.

Often1

If Starwood had to depend on folks paying $155/night, it would be in bankruptcy. People paying those kinds of rates are the ones they would just as soon shed so that they have room available for people paying in the $250-300/night.

the hotel bar

changing the topic from "my hotels aren't participating. I'm joining Hilton" to "I'm an ignorant noob help me out".... can someone explain what components of your points get doubled/tripled

The current promo-less breakdown of points is:

2 *p/$ + 1 *p/$ for SPG Platinum + 2 *p/$ for SPG Amex

Do all 3 of those areas double/triple, or just certain parts of those

The reason it's important to me is because I stay by Aloft's, and with the current promotion of 1000 Amex MR points per stay, whether those SPG Amex points also double/triple affects which credit card I should be paying for my stay with

nologic

It's a weakness of the chain that Starwood doesn't require participation in these promos as part of its franchise agreement...it clearly has certain standards and an advertising allowance which are required of the properties...frankly, this is a form of advertising and marketing.

Anyway, let's say this promotion costs an average of 500 points per night, and the hotels pay SPG 2 cents per point (for the sake of easy math), so it would cost a hotel $10 per room. Assuming a property had 500 rooms and was running at 80% occupancy for the promotion period, this promo would cost a hotel $4,000 per night. Assuming the hotel has an average Profit per Room Night of $300 (including f&b profits and minus direct expenses such as laundry, room amenities, etc.), it would therefore need to feel that the promo would generate an average of about 13 additional room nights per day...maybe it would or maybe not?

In addition, this math does not consider the ill will, and lost future business, that a property might generate by not participating, and the lost ability to favorably influence a customer and generate future incremental revenue from that customer from future stays.

In general, I think properties that don't participate are short-sighted, and SPG is rather weak in its franchise relationships...or, this promo is ill conceived, as so many properties have determined that it just doesn't pay off.

margarita girl

Hmm, should I be apologizing for booking rates that are available on various other web sites? (By giving me the same price, the hotel doesn't have to pay a commission to the 3rd party web site.) Well, since I don't have a job, tough! Thankfully, those on expense accounts and/or gainfully employed can keep SPG hotels in the black.

BTW, resubmitted the Swan BRG because I found a lower rate there too. Expect to get that one down to $137 as well.

gexgirl

I stay at the San Diego Marina, which is a corporate hotel. I think all the other San Diego Starwood properties on the 'non-participating' list are also corporate. Bummer...

There are other participating properties in the area; however, IMO the extra ~10K points I could get are not worth switching to the older hotels in the area with less quality comforts.

mario33

No logic ! ill will for not participating in a promo ? lost future business ? what about hotels which do not even participate in any loyalty programme ?

nologic

Yes, I am sure some peole will harbor ill will and not stay at a property in the future because they opted out of the promo at a time when someone w planning a potential stay or multiple stays. Many people don't like to feel nickeled and dimed or short changed...the cost of customer dissatisfaction is much higher than many people mint suspect.

As for hotels which don't participate in a loyalty program...that's a different kettle of fish and a different cost/benefit analysis.

controller1

The San Diego hotels may be managed by Starwood but as of June 30, 2011, no San Diego properties are owned by Starwood. At December 31, 2010, only the Westin Gaslamp was owned by Starwood but apparently has been sold since that time.

mahasamatman

I think you totally missed yosithezet's point, as you're both right.

Alex_I

- Sorry, William, this promo does not excite me as none of the hotels I am usually staying are participating. Also, I have re-qualified for PLT already. Any special bonuses for us who already re-qualified?

fandu

+1 for me. I will be staying at the Sheraton Frankfurt for the next 3 months (on and off) and it is not participating. The other sheraton in the area is not participating as well.

Shareholder

But instead it rewards them with more SPG bonus miles because they were able to find a lower rate. Kinda contradicts your thesis. Seems Starwood actually encourages us to seek out the lowest rates rather than pruning us from their elite ranks.