Originally Posted by Konsultant
I think many ppl get carried away when they try to base the value of the points using the highest published rates. I think basing the value of MR points off the rack rates is not a good approach, because almost NOBODY pays those rates. Everyone has some sort of discount code AAA, AARP, Government, Corp, etc. My approach is to use Priceline rates for determining the value of points.
For example, I booked 2 nights at RI in Chicago through priceline. Rack rate - $179/night, rate paid - $50/night. It is a CAT 4 requiring 28,000 points for two nights, which in reallity cost $100. What is the value of points in this example? ~0.36 cents a point.
Quick question - because I like Residence Inns, use Priceline from time to time, and go to Chicago a lot - was that RI alone in its class/zone, or was it a lucky "get" from a very opaque (lots of hotels) zone? Which property Chicago was it? The one behind the Hancock Tower?
My only hesitation with using the pure Priceline rate as my only valuation for hotel points is this: if I'm considering using points to begin with, it means I've already ruled out Priceline as an option for the stay. I ask myself the Priceline question
first. Only after I decide that the zone I'm visiting or my travel situation make Priceline a bad choice do I consider using hotel points.
Therefore, I have to acknowledge that an award room is worth something more than a Priceline room. In that case, my valuation is based against whatever method I'd use to get a room in that city without the points. It totally varies by city - the way I'd look for a villa in Hawaii is very different from the way I'd look for a nice B&B in central London - but I go through those efforts and use the results to compare against an award stay at a Marriott or other big-chain property.
(The effort of looking isn't wasted - if the Marriott has no award rooms available or if I find a gem of a place that is better than a big chain - I end up booking that room.)