Originally Posted by
MSPeconomist
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.
You're right, the $5 vs. 500 *points is a bit fuzzy. I was just throwing them in with the laundry list.
That FCM argument is ridiculous.
Response from airline: Fine, we'll stack the benefit for elites on FC fares. Now you get 6 free checked bags, all of which you'll continue to not use as you lug an overstuffed rollaboard into the OHB.
If elite benefits can be redeemed for discounts off the actual fare/rate, then shouldn't coach tickets also be discounted $25 every time an elite doesn't check a bag? Or should I receive $15 every time I skip the breakfast buffet? Surely neither of those services actually costs the airline or hotel that much to provide, which is exactly why they are the things that can easily be offered to elites for free while also generating significant profit margins from nonelites.