FlyerTalk Forums - View Single Post - Biggest shock to come?: When maximum peak Honors price ends
Old Dec 1, 2017, 7:56 am
  #30  
pinniped
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Originally Posted by Need
And if you add in the hotel tax, it will be around $0.0050 to $0.0054 depending on the tax rate. It is better if you stay at a resort.. because of no resort fee with award stay. So the value of points will go up to $0.006. But that's is really it at the max value once the caps are removed.
There will be this weird incentive to use points at really cheap hotels that have bogus fees added on. Vegas or beach locations in off-peak periods... In theory, a small number of points could still be very valuable, but if the "best" redemption in the whole system is an abject dump like the Tropicana, that's a bad look for your program as a whole.

(For reference, checking in tonight, the Trop is $55 base plus $33 resort fee plus taxes. Maybe $100 total. It's 21,000 points for an award. So there seems to be a points floor as well, which somewhat kills my idea if it's true everywhere. )
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