Originally Posted by RollAnotherFatOne

there are different ways of looking at value and worth, but typically it's how much someone is willing to pay for something.
this can be affected by the means with which they do this - currency, points, etc.
however, not everyone sees value in the same way, and not everyone's circumstances are the same.
what you've written seems to imply that value cannot be defined in terms of convenience, preference, and that variance in approach does not exist amongst customers.
hotels would typically have higher prices that increases nearer the date of stay.
as a loyal customer, i would be incentivised to stay by the convenience of booking points nearer the time as the points price of the stay may be less than the cash price. if i couldn't find value in the points price, then maybe my loyalty is not worth that much and i would just stay somewhere else.. similarly, if i was staying for business, the price wouldn't matter so much. in each case, the hotel would benefit by having a good price points deal and high rack rate.