Originally Posted by
Caspavio
if the hotel credit (in part or in full) is counted against the af, you are then prepaying for some of your hotel spend, hence you cannot simply deduct the full credit amount from your stay. you need to add back the prepaid amount to arrive at the true daily cost
so unless someone is valuing the hotel credits at $0, the daily cost in your table above is showing the rooms to be cheaper than it actually is
Originally Posted by
SP03
You are making an assumption that people assign a value to the FHR portion of the AF and that the FHR is a deciding factor, without with people wouldn't have the card.
If people assign ZERO value to the FHR and that other benefits alone justify the card, then "real" cost of the room is back to $500.
i did touch on that. also, fhr doesnt have to be the deciding factor. the net cost of the rooms is still amount paid, minus credits, minus savings, plus value of hotel credit counted against af. savings is as mentioned below (but depends on how you want to split across different credits), and value of hotel credit counted against af can be zero
Originally Posted by
Caspavio
in your case, the value of all the credits are more than the af, so the amount above the af are savings, and a portion of the savings can be attributed to fhr stays. so the real cost of the rooms to you will be your out of pocket costs for the rooms minus the portion of the savings can be attributed to fhr stays