Originally Posted by
Dr Jabadski
I meant it in that the typical cost of a hotel room is regardless of membership in the hotel chain’s loyalty program. If I’m going to stay in a hotel regardless of all other factors and I research the lowest rate I can possibly pay, I don’t see an opportunity cost (or any downside) to joining that hotel’s loyalty program and earning points for that stay. If anything, membership might include a lower (members only) rate. Granted, if one chooses to earn points in other ways, credit cards for example, there very well may be an opportunity cost.
Do you see an opportunity cost for earning points for hotel stays?
It depends on the hotel program and the specific hotel. If you could stay in a cheaper room in a different hotel program neaby for lower cost, or in an indie hotel nearby for lower cost, and are staying in the higher-cost hotel program mostly to earn points in that program, aren't you paying an opportunity cost?
When a Travelodge is costing the same as Motel 6 and indie hotels nearby, then there may not be opportunity cost to earn Wyndham Rewards points on that stay. But if a Doubletree down the street charges double of what the Travelodge charges, you are paying an opportunity cost to stay at that Doubletree to earn Hilton Honors points. Now, there may other things you like about the Doubletree more than the Travelodge (the paid breakfast at that Doubletree may be better than the free breakfast at that Travelodge), but quantifying them is difficult.
So while what you say may be true for low-end points-earning hotels which charge not much more than what all other hotels (including low-cost indie hotels) in that area charge, it's not necessarily true for midlevel-to-high-end hotels. And many points-earning chains don't have low-end hotels in most places.