I realize that hotels naturally value guests who pay rack and wish to entice them. The attraction they pose is obvious. But this does not mean that other guests present no attraction to the hotels - it is all a question of degree. If cheap rates are not important to a hotel, why would a hotel offer them in the first place?

Hence this suggestion - maybe chains like HYATT and Starwood should seriously consider awarding stays at rack rate more, say, allow them to be double-counted. This indeed makes sense and is just to all concerned. If a customer pays more, he gains more recognition and therefore more miles. He also attains elite status faster due to doubling of his stays and nights. But this also allows his other stays on other rates to be counted. As I said in another post, it is quite impossible to imagine a well-travelled executive to pay 25 visits to HYATT (or 50 nights) at rack per year. That is not loyalty, but (pardon me), sheer stupidity.

Double counting nights and stays if they are at rack rate is in line with airlines giving more miles etc to First and Business Class.

For el cheapo rates, again, the example of airlines can be used. Really cheap economy fares and awards do not earn miles while the semi-cheap fares often earn half miles (the Dragonair and others are examples). The analogy would probably be FFN and other awards.

Very cheap rates such as Priceline maybe (or maybe not) considered for 1/2 stays and nights.

Moderately cheap rates contracted by hotels will retain standard stays and nights.

So the guest who stays mainly on Priceline stays will not qualify for Diamond as easily as the one who stays mainly at rack. This is fair. For example, to stay solely at Priceline, one needs 50 x 2 (or whatever multiple) = 100 nights a year to reach Diamond. Whereas the rack rate guest will need only 50 x 0.5 (or whatever multiple) = 25 nights a year. Using these off the cuff figues. the difference is 4 times. In terms of revenue, this is probably about right too?

Does this not make sense?

What do the others think?