Originally Posted by
Adelphos
In the hotel business - not necessarily.
- Elite benefits cost real money in terms of goods, labor costs, room availability. Yet the elite may be paying a same or lower rate than a non elite
- Hotels in many resort areas are already full
- If the elite is redeeming points, the elite is probably paying a much lower room rate than a normal customer
- Marriott is not paying the cost of elite benefits - hotels are
In many situations - it is a lot cheaper and more profitable to chase an "old customer" away and to get a new customer in that doesn't care about this stuff
I must disagree. If the hotel took that mindset, they would leave the chain at the first opportunity. The reason for a hotel to join a chain is 1) to get more customers and 2) have those customer become repeat customers. Certain hotels find that they get more customers, but that those customers aren't repeat customers. Those hotels don't feel the need to try very hard. You will notice the scant benefits that many airport hotels provide. They know that the only reason why you are there is because it's convenient. For those hotels, they take the position that the customers who really aren't their customers, but the chain's customers which they don't care about.