How are redemption rates set ?
#1
Original Poster


Join Date: Oct 2005
Location: ORD, MDW or MKE
Programs: American and Southwest. Hilton, Marriott, IHG - whichever is rated well and cheapest
Posts: 6,571
How are redemption rates set ?
Just a curiosity question.
How is the number of points for a free night set? Is it set by the property, or by Choice. How is the property reimbursed. What is the incentive to set a lower rate than a higher rate.
How is the number of points for a free night set? Is it set by the property, or by Choice. How is the property reimbursed. What is the incentive to set a lower rate than a higher rate.
#2
FlyerTalk Evangelist



Join Date: May 2012
Location: DCA, lived MCI, SEA/PDX,BUF (born/raised)
Programs: Marriott, IHG, Hyatt, Choice, AS, UA, WN
Posts: 10,720
Hotels point values are related to:
1. location/high travel destination
2. age
3. amenities
4. season
This is true for all hotel chains....not just choice.
1. location/high travel destination
2. age
3. amenities
4. season
This is true for all hotel chains....not just choice.
#3
FlyerTalk Evangelist

Join Date: Nov 2002
Location: Freeload Univ. Where are you sitting?
Posts: 14,818
A couple of pages in to this thread has a reprint of Choice's official franchise rules, including how they are compensated for award stays.
IIRC, the rates are set by a regional manager. It turns out, it doesn't matter what the point rate is, the property gets compensated the same amount, so they don't really care what the rate is.
The incentive (from a corporate point of view) is that it makes their 8000 point promos actually reasonable (i.e., there will really be a lot of hotels you can get for 8000 points/night) and it provides people an opportunity to stay at Choice properties when they wouldn't normally do so.
You gotta love how this plays out in Europe, since a number of us (myself included) have taken advantage of the lower rates to score exceptional deals.
IIRC, the rates are set by a regional manager. It turns out, it doesn't matter what the point rate is, the property gets compensated the same amount, so they don't really care what the rate is.
The incentive (from a corporate point of view) is that it makes their 8000 point promos actually reasonable (i.e., there will really be a lot of hotels you can get for 8000 points/night) and it provides people an opportunity to stay at Choice properties when they wouldn't normally do so.
You gotta love how this plays out in Europe, since a number of us (myself included) have taken advantage of the lower rates to score exceptional deals.
#4
FlyerTalk Evangelist




Join Date: Jan 2005
Location: home = LAX
Posts: 26,113
What other hotels do to deal with high demand season is limit availabiility, rather than change the points rate. Choice, by contrast, tends to change the points rate rather than limit availability.

