Originally Posted by
SFO_FT
The information could be useful in negotiating with a property for compensation. Eg: “Thanks for your goodwill offer of a $20 cash refund or 5,000 points, which I understand actually costs the hotel $5.00. Let’s up the points to 10,000 points instead.” I find that information useful to me, just as I found useful the information that airlines estimated that their frequent flyer miles in the 1990s cost them about 1 cents per FFP mile.
Just be aware, though, that the cost-per-point to the hotel for points given as goodwill & compensation is not related to the cash amount they receive when you use your points for an award stay.