Just made diamond. Is it possible at any hotel to make back the room rate in perks?
So we get two free drinks, two free breakfasts, a welcome amenity, a free pair of socks from the Fairmont fit gear, some shampoo and lotions to take home, a couple of Nespresso pods.
Off season Fairmonts in b-tier Canadian cities sometimes dip sub-$200, and there's government/residents rates that sometimes make it even cheaper. But it looks even at the cheapest rate + the most expensive menu items (in Edmonton) doesn't fully cancel out. Is there any hotel where it could theoretically? |
Accor is a business...
answer is clearly no. |
Arguably, the only tangible benefit of Diamond over Platinum is the weekend breakfast and 100 Euros worth of dining certificates per year. I wouldn't go out of my way to even jump from Platinum to Diamond, much less think you could somehow earn back the room rate in stay benefits! I consider it more of a meh status you just happen to hit through planned stays, rather than something one actually strives for.
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Originally Posted by Goldorak
(Post 34860371)
answer is clearly no.
If one were to value the benefits at what they would otherwise cost, the value of the perks roughly equals: 2 x $20 welcome drinks 2 x $40 breakfast buffet incl. tax/tips ~$10 welcome amenity ~$10 other amenities ~8.8% ROI in terms of the value of the ALL points earnt, possibly more during a double/triple points promotion ...and of course the room could be paid for using Fairmont GCs purchased at a ~16% discount. Rates in the ~$150/night range aren't that common these days, but if you have access to the right government/corporate rate, it's not impossible. The lowest regular published rates tend to be closer to $200/night these days though. |
Tip may be excluded from the breakfast voucher and I'm afraid discounted Fairmont GCs are a thing of the past.
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Originally Posted by Jasper2009
(Post 34861411)
I beg to disagree. :p
If one were to value the benefits at what they would otherwise cost, the value of the perks roughly equals: 2 x $20 welcome drinks 2 x $40 breakfast buffet incl. tax/tips ~$10 welcome amenity ~$10 other amenities ~8.8% ROI in terms of the value of the ALL points earnt, possibly more during a double/triple points promotion ...and of course the room could be paid for using Fairmont GCs purchased at a ~16% discount. Rates in the ~$150/night range aren't that common these days, but if you have access to the right government/corporate rate, it's not impossible. The lowest regular published rates tend to be closer to $200/night these days though. Assume a $200 room rate, and 15% fees and taxes on top. Total spend is $230. You'll get back 8.8% of $200 in points, or $17.60. And if the gift card discount comes back in the spring, that would be 16.67% of $230, or $38.34. And then your $80 + $40 + $20 in breakfast, drink and other amenities (and I'd be hard pressed to really assign any value to a welcome amenity) you have $140. Total "value" back of $196 on a spend of $230. That also assumes you don't have to incur cost to travel to this city where you can get a a room for that price. And, in order to get a room for that price, you'd probably have to subject yourself to a staying a night in a base-level room in Winnipeg or Edmonton in the middle of February! |
These kind of calculations on ultra-edge cases are rather meaningless. Cheaper properties tend to have cheaper breakfasts and drinks so calculations would have to take this into account. I am sure that, by searching hard, you will find a property in a place nobody who would have a choice would want to go where you can make this work. But this is meaningless. Drawing conclusions from this is the equivalent of concluding that, because someone can win a jackpot in a lottery, playing lotteries is a sensible, lucrative financial move.
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Originally Posted by CanadaDH
(Post 3486147)
And, in order to get a room for that price, you'd probably have to subject yourself to a staying a night in a base-level room in Winnipeg or Edmonton in the middle of February!
That's not a problem. We live in Edmonton so the purpose of this question is to figure out how to convince my husband to stay in a hotel 10 minutes from our house as a date night. |
In Canada it would be quite hard to achieve, but I have seen hotels in Asia (Red Hot Deals - Accor Plus) where I was wondering how the hotel can make a profit. Two drinks + two breakfasts even if the cheap variety, when the hotel room is 20 USD there is not a lot of margin left for the hotel...
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Originally Posted by escape4
(Post 34865521)
In Canada it would be quite hard to achieve, but I have seen hotels in Asia (Red Hot Deals - Accor Plus) where I was wondering how the hotel can make a profit. Two drinks + two breakfasts even if the cheap variety, when the hotel room is 20 USD there is not a lot of margin left for the hotel...
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Actually, it's possible to a certain extent. I am not Diamond, only Platinum, but I more than make back the room rates either by suite talking or using the suite upgrades vouchers at specific high end (Raffles, etc.) hotels.
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Originally Posted by fineyoungcannibal
(Post 34878330)
Actually, it's possible to a certain extent. I am not Diamond, only Platinum, but I more than make back the room rates either by suite talking or using the suite upgrades vouchers at specific high end (Raffles, etc.) hotels.
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