FlyerTalk Forums - View Single Post - DOING THE MATH on 1/31/07's RE-CATEGORIZATION
Old Feb 1, 2007, 12:48 pm
  #12  
Bulldog King
 
Join Date: Jan 2005
Location: NYC
Programs: DL, SPG (Gold)
Posts: 2,039
A comparison of increases in award levels only tells half the story.

You also need to compare "points per $" (PPD) earned between various years as well.......as it's definitely not as simple as saying....3 PPD'.....because it is definitely possible to earn more PPD on a regular basis......if not quite a bit more (see example below).


After comparing my Starpoints earning levels for 2005 and 2006, I noticed some major differences.

In 2006, I earned many more PPD than in 2005.........to the tune of at least 4x as many PPD as in 2005.

This was primarily due to the increase in various promotions that SPG and various Starwood hotels offered during 2006.....with some running at the same time (just like now).

So.....let's take a look at some figures based on possible SPG activity for the first 2 months of 2007.

For this example....assuming that the person is a SPG Platinum Preferred Guest and is enrolled in the Starry Nights promo (3 stays = 3000pts....max of 9K pts) and two generally available promos: PacNorWest (1K,2K,3K for repeat stays at a property...up to 6K pts per property) and the SoCal/LV promos (1,2,3,4...up to 10K pts for 4 stays)

Let's not forget the possible 'extra' points: 500 pt Plat. Amenity and 500 'help desk' bonus per stay.

For this example, let's assume that the person has 9 stays between Jan 6th and Feb 28th at the following hotels:

Westin Bonaventure
Sheraton LA Downtown x2
Westin Horton Plaza
Sheraton Seattle x2
Westin Portland
Four Pts LAX
Westin SFO

A maximum of 24,000 promo points and 9000 'extra' pts + whatever SPG points are earned via room rates/charges can be earned for the 9 stays.

If the average rate per night is $200.......that means a minimum of $1800 (+tax) if each stay is only 1 night.....resulting in at least 5,400 additional Starpoints

Total: 38,400 Starpoints....or well over 18 PPD.

For someone who has a SPG CC......the total amount earned is slightly more.

IMO, that's not bad at all......especially when compared to the previously mentioned published benefit of 3 PPD for SPG elites.

Remember....if one can now earn more PPD than in previous years, then any negative effects due to the increase in award levels can be greatly reduced or even totally equalled.........if not possibly allowing the person to actually come out ahead as compared to previous years when points were "harder to come by".

It seems to me that Starwood might simply be trying to put more of an emphasis on those who actually earn points via hotel stays by giving them multiple ways to increase their points earning opportunities per stay........as opposed to those who earn via "other methods" such as CC purchases.

As far as why SPG might not want a list of category changes published.......has anyone ever thought that perhaps they want to put as little focus on these changes as possible?

I mean.....most people I know don't track hotel award categories.....so, SPG probably wanted to make these changes with the least amount of direct attention as possible...... so that as few people as possible realize that actual changes were made....let alone which hotels moved up in category.

The various posts/threads at FT proved that nothing good can be gained by SPG by drawing even more attention to the changes.

A.J.
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