<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Counsellor:
What lodging is "worth" and how much it costs Hilton to provide are two entirely different things. If you spend $100 with Hilton to rent a room, the incremental cost to Hilton to rent you that room is way less than $100. Even the allocated cost for use of the room (allocating overhead against all rooms rented) should be way less than $100.
So, for the 1,000 HHonors points Hilton gives you for paying $100 toward renting the room, Hilton derives profit that (ought to) well outweigh the cost to them of redeeming that 1,000 points.
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I think you missed my point (and we agree). Here's the background:
Originally posted by cordelli:
It's really not a shock since it was so abused, with us just getting points without updating anything. 1000 points was like spending $100 with them.
Originally posted by MileageAddict:
1000 points is worth about $10 to the consumer and considerably less to Hilton.
Originally posted by cordelli:
But if you were earning them through a stay then you would have to spend $100
Originally posted by dhacker:
And you would get approximately $100 worth of lodging for your $100.
I was just trying to correct the point that cordelli seemed to be making - that 1000 points are worth anything approaching $100.