FlyerTalk Forums - View Single Post - Q2 / 2012 Promotion Speculation - Return of Resort Nights? [Merged thread]
Old Jan 25, 2012 | 1:21 pm
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Originally Posted by Keyser
that i doubt....i don't think they will put a cap on earnings....
Originally Posted by marlee1421
Very unlikely they will put a cap on earnings. The purpose of promotions is to increase staying at their properties. Why would any good business mind limit income producing stays/nights. In fact, a good way to promote more business would be to have a sliding scale. 1 free night for 3 stays, 2 free nights for 6 stays, 3 free nights for 8 stays and 5 free nights for 10 stays. There would be a major push to get to the 10 stays.
I defer to other as to the history of caps or no caps at SPG.

However, other hotel programs often have caps. I've seen caps on free night cert promos at Priority Club, Marriott, as well as the lower end Best Western, Choice, and WyndhamRewards. So obviously a lot of people running other hotel programs think there's some reason to put caps on free night cert promos.

Could it be related to the typical prices of the hotels? SPG has fewer "midscale" priced hotels than any of those other chains (Priority Club has HIX and Candlewood widespread, Marriott has Fairfield and TownePlace widespread, while SPG perhaps has Element but even if so only just starting out).

The reason for that last question is that the lower the price of at least some of the hotels in the program, the more likely people will "leverage" the promo to stay paid at cheap hotels and then redeem the certs for expensive hotels. In that case, the program might want the promo to seem very attractive (to those zillions who never read the fine print), but not have the potential to "give away the store" too much.
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