Permanent FPC Platinum for $2000
Feb 25, 2011, 11:30 am
#46
Join Date: May 2009
Location: YLW
Posts: 34
I'm not much of a Fairmont guy, but obviously if I have lifetime Platinum there they would get a little more of my business than they do now. So you would have to figure there would be some increase in revenue to them for sure. Enough to justify the deal? Don't know about that.
Feb 25, 2011, 11:33 am
#47
Join Date: Feb 2000
Location: Menlo Park, CA, USA
Programs: UA 1MM 0P, AA, DL, *wood, Lifetime FPC Plat., IHG, HHD
Posts: 6,912
but that IS an official fairmont twitter handle
Feb 25, 2011, 12:23 pm
#48
Join Date: Dec 2009
Location: PEK, SFO, NYC
Programs: AA EXP, Hyatt Diamond, SPG Plat, Fairmont PC Plat
Posts: 277
Agreed - having LT Platinum status would greatly influence my future stays to drive incremental revenue to Fairmont. Currently, I'm loyal to Hyatt, and have only experienced Fairmont sparingly (only been to the Plaza in NYC). Having Platinum for life would give me the incentive to go out of my way to book Fairmont properties that I wouldn't otherwise book without the status.
I think Fairmont is greatly underestimating the potential incremental revenue these newly-minted lifers would bring. To only look at it from the basis of giving out freebies every year would be a short-sighted mistake on their behalf. Crossing my fingers that Fairmont management will make the right decision to honor this deal.
I think Fairmont is greatly underestimating the potential incremental revenue these newly-minted lifers would bring. To only look at it from the basis of giving out freebies every year would be a short-sighted mistake on their behalf. Crossing my fingers that Fairmont management will make the right decision to honor this deal.
Feb 25, 2011, 12:35 pm
#49
Join Date: Mar 2006
Location: (SJC)
Posts: 2,198
I think we should communicate this to FM.
Feb 25, 2011, 1:08 pm
#50
Join Date: Oct 2008
Location: YVR
Posts: 640
Well I could specualte about this too 
So lets take this on a year by year basis and see what these customers would have to spend for Fairmont to just break even.
2011 120*1350 (They must get at LEAST this much from the deal= $162K
I'm not sure how much the average BAR is at SF but for a room like this I suspect if you put it on fairmont.com they could book it for $650 on a regular basis since a Main bldg suite goes for around $600 on a few week long stays I checked. So they loose 120*$650 = $78K.
The hotel would also have to give out 120 free nights at say the $100 I mentioned before so another $12K loss.
In total after the first year 162-78-12= $72K so they are up after the first year, but hold on...
120*($100 per free night+$100 Plat GCs)= $24K liability for the next 21 years.
$72K/21 = $3428 so $24K-$3428= $20.5K yearly cost divided by 120 is $171 per LS buyer.
So if each LS member spent $171 per year of hard cash at Fairmont they could take this as being nearly even. Now since the LS buyers decided to spend the $2000 on the deal obviously they have some inclination to stay at Fairmonts and know they will be using the hotels in the future so luckily for Fairmont this lifetime status is going to ppl who will most likely spend that $171 a year or $3600 over the next 21 years.
Overall thats not a massive hit imho for the whole chain but say if the Fairmont SF had to pay this out itself it would def hurt them.
So lets take this on a year by year basis and see what these customers would have to spend for Fairmont to just break even.
2011 120*1350 (They must get at LEAST this much from the deal= $162K
I'm not sure how much the average BAR is at SF but for a room like this I suspect if you put it on fairmont.com they could book it for $650 on a regular basis since a Main bldg suite goes for around $600 on a few week long stays I checked. So they loose 120*$650 = $78K.
The hotel would also have to give out 120 free nights at say the $100 I mentioned before so another $12K loss.
In total after the first year 162-78-12= $72K so they are up after the first year, but hold on...
120*($100 per free night+$100 Plat GCs)= $24K liability for the next 21 years.
$72K/21 = $3428 so $24K-$3428= $20.5K yearly cost divided by 120 is $171 per LS buyer.
So if each LS member spent $171 per year of hard cash at Fairmont they could take this as being nearly even. Now since the LS buyers decided to spend the $2000 on the deal obviously they have some inclination to stay at Fairmonts and know they will be using the hotels in the future so luckily for Fairmont this lifetime status is going to ppl who will most likely spend that $171 a year or $3600 over the next 21 years.
Overall thats not a massive hit imho for the whole chain but say if the Fairmont SF had to pay this out itself it would def hurt them.
Feb 25, 2011, 1:45 pm
#51
Join Date: Mar 2006
Location: (SJC)
Posts: 2,198
I think they are probably feeling the fear of what happens in the future when the DROP the free room night / or 100 GC. Do 112 people cause another uproar? They are probably thinking it is in their best interest to hit Control+Z.
I think the value in having 112 ambassadors is bigger than you think. I have already told 25-50 people how awesome FM is and how I will be using this newly minted Plat Status, ASAP!!!
Kokinos I love the way you spelled it out, I would hope they did this behind closed doors, what makes this tricky for corporate is:
Their PR Director is touring their Quebec Hotel
Their PR Intern is sending out tweets at Corp in TOR
Their PR SVP is in New York
And this deal originated from Sales based in SF/West Coast
So no doubt they are having a lot of communication issues / conference calls.
I emailed FM PR depts, and a bunch of people at LS, we will have to see where that leaves us by the end of working day today, which is 75 minutes away.
I think the value in having 112 ambassadors is bigger than you think. I have already told 25-50 people how awesome FM is and how I will be using this newly minted Plat Status, ASAP!!!
Kokinos I love the way you spelled it out, I would hope they did this behind closed doors, what makes this tricky for corporate is:
Their PR Director is touring their Quebec Hotel
Their PR Intern is sending out tweets at Corp in TOR
Their PR SVP is in New York
And this deal originated from Sales based in SF/West Coast
So no doubt they are having a lot of communication issues / conference calls.
I emailed FM PR depts, and a bunch of people at LS, we will have to see where that leaves us by the end of working day today, which is 75 minutes away.
Feb 25, 2011, 1:51 pm
#52
Join Date: Feb 2000
Location: Menlo Park, CA, USA
Programs: UA 1MM 0P, AA, DL, *wood, Lifetime FPC Plat., IHG, HHD
Posts: 6,912
In this example, I think the MAJORITY of this money is going to the SF location. At that point, the majority of the outlay is coming from Fairmont by giving out the status for free, but I think clearly any of these buyers who are now platinum are going to be bringing in far more revenue on an annual basis than the actual marginal cost of the program to the Fairmont group.
As for the costs above, I wouldn't consider the opportunity cost of the suite (I think this is your 650$ a night) but rather the opportunity cost of NOT getting a booking. We all know we can get a suite for free with a bit of finageling, a couple benji's, etc., even on a lower priced room booking.
I doubt any of the add on amounts would come from the SF fairmont, that can only be given by corporate I believe.
As for the costs above, I wouldn't consider the opportunity cost of the suite (I think this is your 650$ a night) but rather the opportunity cost of NOT getting a booking. We all know we can get a suite for free with a bit of finageling, a couple benji's, etc., even on a lower priced room booking.
I doubt any of the add on amounts would come from the SF fairmont, that can only be given by corporate I believe.
Feb 25, 2011, 1:52 pm
#53
Join Date: Feb 2000
Location: Menlo Park, CA, USA
Programs: UA 1MM 0P, AA, DL, *wood, Lifetime FPC Plat., IHG, HHD
Posts: 6,912
What I REALLY hope they are doing is cross referencing the buyers with current Fairmont FPC members, especially the platinum member group. :-)
Feb 25, 2011, 2:12 pm
#54
Suspended
Join Date: Nov 1999
Posts: 24,153
I blew it going back and forth if I should purchase it or not
The Unknown is who did what and when or is FM or LS on the hook. If its LS then everyone will be SOL, if FM then they probably will throw a bone but if they ran a check to see which of the 100+ people have been Fairmont members or have stayed at a Fairmont in the past, I wouldnt be surprised to find out that those who never had any contact with The Hotel or Fairmont end up with close to Zipo, while those who have stayed there or have been Fairmont members from way before this offer and have stayed at Fairmonts from time to time might get better compensation
I think it will all depend on who legally is bound by the terms, so if LS messed it up FM should be off the hook, and dont know what LS can offer surely they probably couldnt afford to pay Fairmont to cover LT memberships and the free nights
Now had it been on FMs website then that would be a whole another story
I just dont see FM having much to lose if they dont honor it, being bad mouthed on FT and other Blogs wont prevent most of their core customers from no longer staying with them as it may have had it been Hilton or Marriott. FM like FS is a class onto itself where the masses = even most FTers would never be found staying a night as if it was a Hilton or Marriott, and FM can be selective in making sure those who are reg with them are taken care while leaving the others holding onto their dreams of what might have been
Im sure most who never stayed at a FM before especially the SF property, if not for this offer would never have been seen in 1 of their Hotels simply due to the high rates and if only 112 were sold I wouldnt be surprised to learn that the vast majority were purchased from people who never set foot into Any FM Hotel till now and never had any plans to do so. Thusly the down side for FM is very controlled by simply taking care of those who purchased it and are FM members and giving the others say a non-transferable
B1G1 which they cant sell or transfer as most of those people wouldnt pay the $$ for that or offers of say up to 2 free dinners with every reg rate purchased again I would think they would end up with zero people cashing those in
The Unknown is who did what and when or is FM or LS on the hook. If its LS then everyone will be SOL, if FM then they probably will throw a bone but if they ran a check to see which of the 100+ people have been Fairmont members or have stayed at a Fairmont in the past, I wouldnt be surprised to find out that those who never had any contact with The Hotel or Fairmont end up with close to Zipo, while those who have stayed there or have been Fairmont members from way before this offer and have stayed at Fairmonts from time to time might get better compensation
I think it will all depend on who legally is bound by the terms, so if LS messed it up FM should be off the hook, and dont know what LS can offer surely they probably couldnt afford to pay Fairmont to cover LT memberships and the free nights
Now had it been on FMs website then that would be a whole another story
I just dont see FM having much to lose if they dont honor it, being bad mouthed on FT and other Blogs wont prevent most of their core customers from no longer staying with them as it may have had it been Hilton or Marriott. FM like FS is a class onto itself where the masses = even most FTers would never be found staying a night as if it was a Hilton or Marriott, and FM can be selective in making sure those who are reg with them are taken care while leaving the others holding onto their dreams of what might have been
Im sure most who never stayed at a FM before especially the SF property, if not for this offer would never have been seen in 1 of their Hotels simply due to the high rates and if only 112 were sold I wouldnt be surprised to learn that the vast majority were purchased from people who never set foot into Any FM Hotel till now and never had any plans to do so. Thusly the down side for FM is very controlled by simply taking care of those who purchased it and are FM members and giving the others say a non-transferable
B1G1 which they cant sell or transfer as most of those people wouldnt pay the $$ for that or offers of say up to 2 free dinners with every reg rate purchased again I would think they would end up with zero people cashing those in
Last edited by craz; Feb 25, 2011 at 2:22 pm
Feb 25, 2011, 3:21 pm
#56
Join Date: Dec 2009
Location: PEK, SFO, NYC
Programs: AA EXP, Hyatt Diamond, SPG Plat, Fairmont PC Plat
Posts: 277
I just sent an email detailing the reasons why I believe Fairmont should honor this deal, to the following addresses:
[email protected]
[email protected]
Are there any executive emails that are available for me to forward this email to? I STRONGLY suggest that everyone who bought in on the deal does the same - this can be a win/win situation for all parties involved, but we as consumers need to take a stand.
[email protected]
[email protected]
Are there any executive emails that are available for me to forward this email to? I STRONGLY suggest that everyone who bought in on the deal does the same - this can be a win/win situation for all parties involved, but we as consumers need to take a stand.
Feb 25, 2011, 3:51 pm
#57
Company Representative, Fairmont
Join Date: Jan 2011
Location: Toronto, ON
Programs: Fairmont Presidents Club
Posts: 16
Official Statement from Fairmont Hotels & Resorts
Hello everyone,
The Fairmont San Francisco's LivingSocial package included an unintentional human error. Regardless of the miscommunication, the Fairmont San Francisco will honor every purchased LivingSocial package as it was marketed and sold.
Please accept our sincere apologies for any contradictive information you may have come across online. Should you require any additional information please do not hesitate to contact Benjamin Shih at the Fairmont San Francisco at (415) 772- 5181 or via email at [email protected].
We look forward to maintaining our marketing partnership with LivingSocial.
Thank you for choosing Fairmont Hotels & Resorts, we look forward to welcoming you to the iconic Fairmont San Francisco in the very near future.
Sincerely,
Fairmont Hotels & Resorts
The Fairmont San Francisco's LivingSocial package included an unintentional human error. Regardless of the miscommunication, the Fairmont San Francisco will honor every purchased LivingSocial package as it was marketed and sold.
Please accept our sincere apologies for any contradictive information you may have come across online. Should you require any additional information please do not hesitate to contact Benjamin Shih at the Fairmont San Francisco at (415) 772- 5181 or via email at [email protected].
We look forward to maintaining our marketing partnership with LivingSocial.
Thank you for choosing Fairmont Hotels & Resorts, we look forward to welcoming you to the iconic Fairmont San Francisco in the very near future.
Sincerely,
Fairmont Hotels & Resorts
Feb 25, 2011, 3:56 pm
#58
Join Date: Jul 2008
Programs: Via Preference Privilege, AC*A, Fairmont Plat, SPG Gold
Posts: 1,334
I just sent an email detailing the reasons why I believe Fairmont should honor this deal, to the following addresses:
[email protected]
[email protected]
Are there any executive emails that are available for me to forward this email to? I STRONGLY suggest that everyone who bought in on the deal does the same - this can be a win/win situation for all parties involved, but we as consumers need to take a stand.
[email protected]
[email protected]
Are there any executive emails that are available for me to forward this email to? I STRONGLY suggest that everyone who bought in on the deal does the same - this can be a win/win situation for all parties involved, but we as consumers need to take a stand.
It's amazing how people can have so little skepticism while purchasing, but than so much entitlement when it was a mistake.
And yeah sure if you comp people Platinum they will probably stay a few nights a year, if they were going to comp platinum to people they likely wouldn't be the hundred people who purchased the deal.
Feb 25, 2011, 3:58 pm
#59
Join Date: Mar 2006
Location: (SJC)
Posts: 2,198
Everyone can breathe easy. We have accomplished the impossible because of people like you.
Fairmont and Living Social are CONFIRMING they will fully honour the offer (with original terms)
Everyone Please switch into praise mode on Twitter and Interwebs.
Thanks for everyone coming together!
Andrew
http://bit.ly/ie9VTY
Original Text
LS Email:
Thank you for purchasing the LivingSocial Escape for the Fairmont San Francisco. Although there was some confusion online, please know the Fairmont San Francisco will honor every purchased LivingSocial package as it was marketed and sold.
Should you require any additional information please do not hesitate to contact Benjamin Shih at the Fairmont San Francisco at (415) 772- 5181 or via email at [email protected].
Thank you for LivingSocial and The Fairmont San Francisco looks forward to welcoming you to this iconic property in the very near future.
Cheers,
maire
Fairmont Email:
Hello everyone,
The Fairmont San Francisco's LivingSocial package included an unintentional human error. Regardless of the miscommunication, the Fairmont San Francisco will honor every purchased LivingSocial package as it was marketed and sold.
Please accept our sincere apologies for any contradictive information you may have come across online. Should you require any additional information please do not hesitate to contact Benjamin Shih at the Fairmont San Francisco at (415) 772- 5181 or via email at [email protected].
We look forward to maintaining our marketing partnership with LivingSocial.
Thank you for choosing Fairmont Hotels & Resorts, we look forward to welcoming you to the iconic Fairmont San Francisco in the very near future.
Sincerely,
Fairmont Hotels & Resorts
Fairmont and Living Social are CONFIRMING they will fully honour the offer (with original terms)
Everyone Please switch into praise mode on Twitter and Interwebs.
Thanks for everyone coming together!
Andrew
http://bit.ly/ie9VTY
Original Text
LS Email:
Thank you for purchasing the LivingSocial Escape for the Fairmont San Francisco. Although there was some confusion online, please know the Fairmont San Francisco will honor every purchased LivingSocial package as it was marketed and sold.
Should you require any additional information please do not hesitate to contact Benjamin Shih at the Fairmont San Francisco at (415) 772- 5181 or via email at [email protected].
Thank you for LivingSocial and The Fairmont San Francisco looks forward to welcoming you to this iconic property in the very near future.
Cheers,
maire
Fairmont Email:
Hello everyone,
The Fairmont San Francisco's LivingSocial package included an unintentional human error. Regardless of the miscommunication, the Fairmont San Francisco will honor every purchased LivingSocial package as it was marketed and sold.
Please accept our sincere apologies for any contradictive information you may have come across online. Should you require any additional information please do not hesitate to contact Benjamin Shih at the Fairmont San Francisco at (415) 772- 5181 or via email at [email protected].
We look forward to maintaining our marketing partnership with LivingSocial.
Thank you for choosing Fairmont Hotels & Resorts, we look forward to welcoming you to the iconic Fairmont San Francisco in the very near future.
Sincerely,
Fairmont Hotels & Resorts
Feb 25, 2011, 4:14 pm
#60
Join Date: Oct 2006
Location: YYZ/DLC
Programs: AP, HHonours Diamond
Posts: 3,722
Wholly smokes! Congrats to all who got in! I was late getting in to the office yesterday and missed this but would have definitely pulled the trigger, even if my entire stay history with fairmont is maybe 3 nights!
Any way you cut it, it's a winning deal that could easily pay itself off in a couple of years.
Any way you cut it, it's a winning deal that could easily pay itself off in a couple of years.