Originally Posted by
schley
You haven't been on my radar in the past as assailing others with fiction, but you are now.
You are omitting what I said "both sets of people still have to pay for hotel stays, thus represent cash flow NOW! " Oh yeah..... forgot about that line huh? Never did I say the LTP doens't have to continue to accrue stays. But, in your world of selective reading apparently it is convenient to aid your fiction.
I NEVER said the LTP gives you money in the past and NEVER stays again. Check the transcript. I said they gave you revenue in the past, which yields capital that you can invest,
but both sets of people still have to pay for hotel stays.
They are equal moving forward, but one gave you cash previously and will in the future. The other gave you jack in the past and will now give you cash. My writing (unedited mind you) stands, not your poor comprehension response to it.
Which is more valuable? Thanks for playing.
BTW I don't need to band together with 4-5 others to feel good. My point stands and if I stand away from you, then it is away from ignorance.
Wow...shots fired. Let's just remember this whole back and forth started with your (insulting) reply to a poster who said
"In purely finance terms, profit from years ago doesn't really account to anything. SPG could, and should, do a lot more to keep it's Lifetimers engaged, energised, and most importantly continuing to contribute as much of their cash as possible to the business now. Instead, Lifetimers seem to be punted off into a commercial backwater, and pointedly excluded from most of the very targeted promos that would be so good at bringing in incremental revenue."
Your side point about "capital given in the past that you can invest" is irrelevant. Money paid in the past is irrelevant - that revenue is sunk. Once you have achieved the goal (LTP, or MM, or whatever LT status one is trying achieve) it is simply human nature to let up. Those posters have some incentive to keep staying (they do get benefits) but simply put, they are less valued customers to Starwood. It's not personal, it's business...Starwood isn't sending them any promotions to drive new activity. And they were "layered" by the SPG 50/75/100 levels...to drive future, incremental business.
If LTPs are spending points for stays, getting more benefits than their cash outlay to the brand, staying at cheaper properties...arguably they may be less valuable than newer customers (or year to year Plats). Same reason why people argue 1Ks are UA's least favorite customers.
Keep knocking yourself out though about dollars in the past being more important...