Originally Posted by
ftweb
... wonder how Citi is breaking even with this benefit.
Citi does not provide this, it's offered by MasterCard. Citi recently
agreed to use MasterCard as their primary network worldwide. I speculate that this benefit is one of the concessions that Citi obtained from MasterCard in the negotiation.
I think it's a pilot program, which will be changed (or eliminated) in a year or two.
Citi has tried before to offer a product to compete with American Express Platinum. The American Express Fine Hotels and Resorts program often offers 3rd or 4th night free promotions on top of various other benefits, but only at their contracted rates. I think this is an attempt to lure consumers away from American Express Platinum, by offering a uniform fourth night free without any others perqs. If it meets their objectives, CWT can go back to hotels, show them how much business CWT has brought to them, negotiate a formal program, and MasterCard can relaunch the benefit with a network of
participating hotels.