FlyerTalk Forums - View Single Post - Select Member Exclusive Email offer [Targeted], 30 April 2015
Old May 12, 2015, 8:35 am
  #177  
gooselee
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Join Date: Oct 2011
Location: ATL
Programs: DL Scattered Smothered Covered Medallion, Some hotel & car stuff, Kroger Plus Card
Posts: 10,745
Originally Posted by mahasamatman
Maybe they feel these people aren't really some of their best customers?
Originally Posted by MSPeconomist
It's about profitability, not just total revenue.
+2

Assume that on the whole, SPG is seeing its properties meet or exceed desired occupancy %s during a very busy time of year. What guest would they rather attract?

SPG Plat who already stays on a corporate rate every week, consumes free internet, free breakfast, lounge amenities, bonus points, free water bottles, MAGC points, etc.

Joe Schmoe who has booked a comparable prepaid rate to save a few bucks, pays for everything he consumes, and takes the $5 F&B credit on the rare occasion he uses MAGC.

Business travelers and elites as a group may provide the most revenue for some hotels, but on a per room-night basis, I'd question whether they are the most profitable.

Targeted promos like this are in the same family as FCM buy-up fares being complained about in the airline forums. When given the choice between customers who consume add-ons for free vs. customers who will either pay for those things or not consume them at all, what would you expect a business to choose?
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