Originally Posted by
sdsearch
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?...
Yes, if one is staying at a more expensive property ONLY to earn points, there is definitely an opportunity cost. If one would stay at a property regardless of all other factors, for example Doubletree Breckenridge (ski resort) where I stayed 20 years ago when it was in indie and have stayed 4-5 times more when it was a DT and I stay because it’s my preferred hotel based on location/price/benefits/etc., there is ZERO opportunity cost to earning Hilton Honors points. In fact, if one does not earn points in that situation one would be leaving money on the table.
Originally Posted by
sdsearch
… 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...
Isn’t comparing Travelodge and DT like comparing apples and oranges
? This quote also implies that ANY choice to stay at a more expensive property down the street has an opportunity cost. Some would see it as “getting what you pay for”, voluntarily paying more for a better product and experience. I guess “opportunity cost” and “getting what you pay for” could be considered synonymous.
Originally Posted by
sdsearch
…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.
What I wrote is regardless of number of stars. If one is going to stay at a hotel (for any reasons), there is no opportunity cost to earning points. One exception could be booking a
less expensive rate through a 3rd party site which is
not eligible for earning points although those opportunities are few and far between and some hotel chains have “best price guarantees” which renders those exceptions moot.