jarusoba

And who knows if Fairmont is going to be in business after a couple of years.

$2000 for a room in a mediocre hotel, no thank you, if I'm not getting some permanent perks...

I saw this deal this morning and have been debating if I want to dive in and get two Platinum status with two different IDs. Well, it's sold out now. So someone has made the decision for me.

vangrizz

Before I bought this deal this morning, I called Fairmont to ask about it. The lady on the phone said that they were aware of the deal. I asked her if there was such a thing as the "Lifetime Platinum" status that the deal was offering and she told me that there was, and that it was included with the deal. I also asked if the Lifetime Platinum membership came with the same benefits and perks that a normal Platinum member would receive, and again she said yes.

If a mistake was made, I'd feel pretty justified in asking for a refund on the package.

greattypo

It sounds as though Fairmont is waffling on whether or not to honor the deal. Everyone should follow

http://twitter.com/FairmontPR

nmenaker

They will really piss off ALL THE WRONG people if they balk on this deal.

AMRivlin

OK I will create a tally and email list who here bought.

1. Email me: amrivlin @ gmail dot com
2. FT or MP or DD (MP)
3. Handle (AMRivlin on FT and MP)
4. Twitter presence if any (@AMRivlin is me)
5. If you want your name on a mailing list. (Yes or No)
6. If you were in a 4 Person Conga Line

7. If you paid 10k let me know that too

nmenaker

And, what is this for?

azepine00

by mailing me your handle written on 100 dollar bill - you probably won't notice this pocket change anyways...

pibrahim

D'oh, can't believe I missed this.

If anyone changes their mind and wants out, drop me a PM

merrickdb

That's clearly a fake twitter account.

nmenaker

I just got the voucher this morning, will call the hotel a bit later today to try and setup a date.

AMRivlin

Uh, yes, it is to encourage FM and LS to #DotheRightThing

kokinos

So lets way the costs for Fairmont here....
120 packs sold. Probably 99% were the $2000 ones.
120*2K is $240K. Usually these groups take 50% but I think in cases like this they get much less since it's a big ticket items compared to the $25 deal you usually see. I'm not sure who puts up the $500 if you buy 4 but I have a feeling Fairmont keeps around $1350 at least or else they need better bargainers imho.

So 120*$1350 is $162K. Lets say each person who bought will be around for another 22 years. 120*$100 annual Plat gifties*22 yrs is $264K

120*22 is 2640 free nights. Lets say with this volume you should be able to prebuy the nights for $100 each so another $264K

So if Platinum club stays the same they are giving out around $528K - $240K they got so about $288K loss. I know these #s are straight outta thin air but you gotta put a price on everything. I didn't take any suite upgrades or welcome amenities into account.

Now I'm curious who made the deal Fairmont SF or corp. I have a feeling these deals go through individual hotels but what do I know I'm still speculating. If it's Fairmont SF this may seem like alot to swallow but at the same time I think of the Pacific Rim and they have a Piano in their lobby that costs nearly as much as this blunder...

Someone really screwed this up especially since the hotel doesn't even have the Presidential suite either.

kokinos

Was just gonna add the hotel also has to give out 120 mega suites to those who bought. It's tough to put a value on these nights but it doesn't really change the whole financial issue by to many % points so I don't think it changes things too much in the end.

nmenaker

I think in the end, it will be more of a money maker.

If you take the 100$ dining cert, that basically implies that one is STAYING at the hotel, so you have a nights rev (unless of course it is the FREENIGHT, but i doubt it will be always) I think the suite upgrades are a wash as for a loss of value or charge to the company as again, it implies a booked rev reservation. So, money coming IN there again.

The biggest hit would be to the SF Fairmont, since they are basically going to have to book about 1/3 of the rest of the year for free in the "presidential suite" or whatever they end up doing, so the free platinum doesn't impact them at all. but, again there is going to be incremental revenue there in the form of parking, breafast, meals, etc. Even just USING the hotel is good for the hotel.

I think there is at least 100-200K worth of positive visibility here for fairmont. And, add to that I think that a good percentage of those who did this deal are going to target MORE of their annual hotel spend to a fairmont in the future (and their lifetime at least!) which is now new future revs for Fairmont in general.

300rwhp

While the first twitter profile is a fake this one is not and sheds light on the issue

"fairmonthotels
Hi all, a promo ran yesterday on Living Social in error. It’s since been shut down, and we are working on fixing it as soon as possible"