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?