Originally Posted by
pvrMM3
They make? As in profit? Or Revenue?
In terms of GP it is a very small fraction of that. You know the points translate into dollars when they are used, and if you are compensated points for an issue at a hotel, that literally comes out of the hotels dollars that would otherwise be paid to them. You realize that Hilton's total Gross Profit was 10.05B last year. Also a large percentage of the revenue being reported from the Amex deal, is American Express paying Hilton for Honors points that were redeemed Amex cardholders transferring MR points to Honors points (over $1B per year).
Actual contribution to the GP of the company is less than 2% and that includes the GP from selling the points to Amex for the MR Points redemptions.
I spend a lot on my Hilton Aspire Amex. >$60k+ annually past few years. Quite possible this new diamond reserve will signal the end of the card for me. I do like breakfast, but upgrades are hit or miss for me as Diamond already. Late checkout is rare (usually clocking in at 1pm and even then with a fight). Never 4pm (and obv that remains). The other benefits have value (I spend that amount to earn points, & get those FNCs which easily surpass the annual fee). But if the upgrades dwindle even further, then that puts Hilton on par with IHG to my mind. And that may devalue the card in my eyes. We shall see what retention offer comes my way.