FlyerTalk Forums - View Single Post - Just made diamond. Is it possible at any hotel to make back the room rate in perks?
Old Dec 24, 2022 | 1:41 pm
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CanadaDH
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Originally Posted by Jasper2009
I beg to disagree.

If one were to value the benefits at what they would otherwise cost, the value of the perks roughly equals:

2 x $20 welcome drinks
2 x $40 breakfast buffet incl. tax/tips
~$10 welcome amenity
~$10 other amenities
~8.8% ROI in terms of the value of the ALL points earnt, possibly more during a double/triple points promotion

...and of course the room could be paid for using Fairmont GCs purchased at a ~16% discount.

Rates in the ~$150/night range aren't that common these days, but if you have access to the right government/corporate rate, it's not impossible. The lowest regular published rates tend to be closer to $200/night these days though.
Even if you assign those items value as you have done, I think that's still a stretch to make it work.

Assume a $200 room rate, and 15% fees and taxes on top. Total spend is $230.

You'll get back 8.8% of $200 in points, or $17.60.
And if the gift card discount comes back in the spring, that would be 16.67% of $230, or $38.34.
And then your $80 + $40 + $20 in breakfast, drink and other amenities (and I'd be hard pressed to really assign any value to a welcome amenity) you have $140.

Total "value" back of $196 on a spend of $230. That also assumes you don't have to incur cost to travel to this city where you can get a a room for that price. And, in order to get a room for that price, you'd probably have to subject yourself to a staying a night in a base-level room in Winnipeg or Edmonton in the middle of February!
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