Originally Posted by NBSPGMEMBER
I wonder how a property feels when a guest uses Starpoints for a room instead of cash? I mean wouldn't a hotel prefer to sell a room for 300$ instead of being paid a much lower amount by Starwood? I wonder how this works? Maybe it's the same way that Hotwire & Priceline works, they make money out of rooms that usually go empty. But still...
They get money for rooms that would otherwise go empty. That's a good thng.
At 90-99.x% occupancy, they get their average daily rate for a room that would otherwise have gone empty, a much higher rate, so that's an even better thing.
At 100% capacity, they get their ADR and might have been able to squeeze out a few dollars more for that last available room, well above their ADR (near sellouts in NYC has rooms going for $499 - ADR is probably in the $200's) - so that's a bad thing.
Overall, I think they do fine.