Originally Posted by
gooselee
+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?
Are you assuming that a $5 F&B credit costs the hotel less than 500 points? To me, it's not clear and a lot depends on whether you believe that the $5 credit leads to a $30 bar bill in the hotel versus leaving the property or foregoing drinks.
For airlines, some of us have been arguing that elites should get discounts on FCM buy ups since elites already get free checked bags, elite lines, sometimes lounge access, etc. versus these amenities otherwise costing kettles more than the fare difference.