<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by IM4Travel:
Profitable for who? Them..or....YOU? 
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In my case, it was them. I made an effort to stay at Hilton once I got the gold treatment, and in some cases now I will book a Hilton where I use to book a Hampton down the road (for a few dollars more) because as a Gold I have a much better chance at a much better room. Tossing out a few points costs them pretty much nothing, it's not like all the Hiltons are all full with award stays and paying people can't get in.
It made me very loyal to Hilton, giving me a taste of what it's like ot be Gold, and this year I'm concentrating most of my hotel stays on Hilton to retain it.