FlyerTalk Forums - View Single Post - SPG: I pay 10,000 SPG points, SPG pays hotel $55.00 USD
Old Jan 31, 2018 | 9:10 am
  #14  
3Cforme
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Join Date: Jun 2001
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Originally Posted by BeantownDisneyFan
I'm sure the relationship between SPG and Starwood Hotels evolves around lots of give and take. I imagine both SPG and Starwood Hotels bring something to the table. But, boy, was I surprised to see on my Folio that my 10,000 SPG Point (hotel) redemption, got the hotel $55.00 from SPG.

Now I understand why so many hotels have tried to manipulate Starwood's promise of no capacity controls on standard guest rooms, by adding an upgraded lamp and couch, and calling the room a Deluxe Room, so that the Deluxe Rooms are outside of the hotel's complement of standard guest rooms. The last place that I can remember seeing a hotel push this scheme to the limit, was the Sheraton hotel in Parsippany, New Jersey.
You're coming at this the wrong way from the point of economic analysis: some revenue is better than none. Lucky is the hotel with 100% paid occupancy night after night! The marginal cost of an award guest is pretty low, even where elite benefits are due.
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