Originally Posted by
Explore
...........Since the hotel is charging much less now in cash than they were before, their points reimbursement from Hyatt would be negligible, and they’d make more in cash even at the lower rate...…
That may or may not be the correct assumption. The property can actually make more money by lowering the cash rate after cancellation deadline if they have a lot of redemptions. Properties are reimbursed ADR if occupancy if over a certain percent (95%??) for that night. If a property has project occupancy of, say, 90%, it will be good to lower the cash rate to push occupancy over the threshold so that ALL redemptions will be reimbursed at ADR for that night. In those cases, the close-in cash rate can be lower than ADR.