Originally Posted by
austin_modern
Except a vast majority of frequent fliers would never pay that 3k in the first place so the value isnt really there, since that wouldn't have ever been purchased in the first place. Mostly, one gets free rooms and/or free breakfasts which doesnt amass up to whatever aspirational suites one might think they're getting for free.
I hate this argument (which also applies to business class seats too) because many people are purchasing both business class seats and higher tier hotel rooms with cash. People redeeming points or getting free upgrades is the minority of these seats/rooms. A vast majority of frequent fliers actually means business travelers, who are more likely to purchase these with cash anyway.
Sure you can value an upgrade at $0 if you would never buy it at all. But you can also value it at face value if you would have purchased it with cash. It's much more fair to value it near face value, or at least half of face value.