Originally Posted by
emma dog
...the mass purchase of points by Amex, et al, is paid to Hilton in cash today. For grins sometime, look at the revenue statement for FF programs like AAdvantage. It's mind-blowing how much revenue AA is bringing in through all of the non-flying points.
Absolutely right, but for program operators it's foolish fiscal policy -- getting cash now in return for a liability down the road -- unless they dilute that liability with anti-customer moves like this.
Originally Posted by
NJUPINTHEAIR
...that 4th Quarter bonus -- what was it -- 25,000 points after X number of stays? -- it looks pretty laughable right now with this point cost inflation, right?
In light of this devaluation it wasn't really a bonus at all -- it was a co-pay to help you stay at parity. The vast majority of HHonors members who aren't getting bonuses are actually losing ground. Like keeping cash in a no-interest checking account with an admin fee charged every month; you may feel good about having money in the bank, but at some point down the road you have nada.