FlyerTalk Forums - View Single Post - Reward nights - how are the hotels compensated by ICHG ?
Old May 9, 2009 | 7:56 pm
  #36  
soitgoes
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Originally Posted by Priority Clubber Lang
Oh, absolutely. As you know, there are no blackout dates for Rewards Nights. We are required to authorize a certain amount of our nightly inventory for Rewards Nights bookings.
Right, but it's only 5% of rooms. Most IHG hotels are very generous with award availability (presumably in part because they know they get fair compensation if occupancy reaches that 95% threshold). There are, however, some properties (definitely a minority!) that really seem to stick to that 5% minimum or something else quite low. Even those properties would benefit from releasing additional award inventory, ironically, on days when they expect to be nearly full.

Originally Posted by Priority Clubber Lang
Even allowing low-reimbursement rooms on nights with low occupancy is welcome because it helps to increase brand loyalty and hopefully drive incremental revenue in F&B outlets. In the hotel game, revenue management is about more than maximizing tangibles like cash... keeping a loyal guest happy by taking a financial loss has huge returns in the long run.
True, and it's not even a loss per se; at worst it's decreased marginal revenue. From you're posts here, you're clearly a manager who "gets it". I think you probably treat your guests very well, and I suspect you are rewarded in return. ^
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