FlyerTalk Forums - View Single Post - What is the point of rates like WELCRE when they cost more than the benefit?
Old Apr 29, 2011 | 6:24 pm
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GUWonder
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Originally Posted by bradj
Because some people can expense a higher room rate for business travel and get the additional benefits in their pocket. No difference than IHG having a higher rate with bonus points at checkin or other promos like free gift cards.
That seems to be the big reason these offers are bought; another reason is that some people aren't necessarily good about determining that the value of the additional items exceeds the cost of procuring the same items separately while going for the lowest comparable rate (i.e. minus the additional items); another reason is that some people people behave as if they value predictability more than they value an accurate assessment that determines that the value of the additional items equals or exceeds the difference between room rates. [Gift card recipients/users are in that latter category quite often.]
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