Originally Posted by
escapefromphl
These programs are as much marketing programs as loyalty programs. The overall cost from the programs point of view to get the nights spend and overall engagement is subsidized by the AF. From the programs point of view this segment makes a lot of sense. It's why Marriott introduced it and I suspect Hyatt will be offering it as well. The high AF of these cards means they need to provide more than just a few elite nights.
I tend to agree and looking at how Delta has pushed the Amex so much, now they are scrambling since it has become obvious it is PR and Marketing and what say versus offer is not the same. I would love to be a fly on the wall in the Amex Delta meetings, since Amex and all the CC need to offer real benefits to justify Their annual fees.