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Cost of 10,000 MR points to a hotel

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Old Jun 1, 2012, 10:01 pm
  #46  
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Originally Posted by BostonFlyer1624
On that note, what do Starwood, Hyatt, and Hilton all use?
As of last year, IHG hotels pay .5¢/PCR point.
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Old Jun 2, 2012, 12:12 am
  #47  
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Originally Posted by keeton
I have seen (on several occasions) the rate MR reimbursed my award stay (the property accidentally gave me the wrong bill) and it was usually a pittance ($12-$35, depending on the category of the property). I have also been accidentally privvy to what some properties pay for their points and, while I am not bound by a non-disclosure, I won't say exactly what the amout was but think in the lower single-dollar amount per thousand.
why would you not say? isn't that the point of these boards?

i'll add a data point. i once got a king instead of 2 queens. or maybe it was reverse - i can't remember. i asked for the guarantee comp, whatever it was. if i recall, they gave me a choice of $50 or 20k points. i took the 20k points. if you assume they were equal, it would be 1/4 of a penny per point if i did the math right.
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Old Jun 2, 2012, 3:23 pm
  #48  
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Originally Posted by travel.flier
why would you not say? isn't that the point of these boards?

i'll add a data point. i once got a king instead of 2 queens. or maybe it was reverse - i can't remember. i asked for the guarantee comp, whatever it was. if i recall, they gave me a choice of $50 or 20k points. i took the 20k points. if you assume they were equal, it would be 1/4 of a penny per point if i did the math right.
I can assure you 20,000 points does not equal a $50 cost....not even close
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Old Jun 2, 2012, 8:40 pm
  #49  
 
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Originally Posted by socrates
it's funny how often hotels purchase points to reimburse a guest for a redemption stay...makes no sense to me, it's much easier to simply not redeem the certificate

FYI a hotels published rate has nothing to do with the reimbursement amount, it's all about point demand/supply
I've read before that the points programs pay a certain percentage of the prevailing room rate for award redemptions. If that's the case, then perhaps the hotel is getting paid more for the free room than the points cost to buy.
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Old Jun 2, 2012, 8:41 pm
  #50  
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Originally Posted by socrates
I can assure you 20,000 points does not equal a $50 cost....not even close
Can you say which direction? Like do the points cost more or less than $50.
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Old Jun 2, 2012, 9:11 pm
  #51  
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Originally Posted by socrates
it's funny how often hotels purchase points to reimburse a guest for a redemption stay...makes no sense to me, it's much easier to simply not redeem the certificate

FYI a hotels published rate has nothing to do with the reimbursement amount, it's all about point demand/supply
My bet it has to do with occupancy numbers... If they don't redeem the cert how do they report the room as occupied and get credit for reward activity. However, if they pony up points, the room still counts. I recall reading somewhere occupancy rates influence the reimbursement rate.

If ever there was a numbers game to be played, I'm sure hotels fall second only to casinos!
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Old Jun 2, 2012, 10:14 pm
  #52  
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Originally Posted by RogerD408
My bet it has to do with occupancy numbers... If they don't redeem the cert how do they report the room as occupied and get credit for reward activity. However, if they pony up points, the room still counts. I recall reading somewhere occupancy rates influence the reimbursement rate.

If ever there was a numbers game to be played, I'm sure hotels fall second only to casinos!
standard reimbursement rates have nothing to do with occupancy it has to do with supply & demand (I know I'm being cryptic sorry).....all occupied rooms must be reported as occupied (if for no other reason than for life safety reasons)
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Old Jun 4, 2012, 1:22 pm
  #53  
 
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1. Buy 10K MR points from Marriott for $125
2. Sell to hotel for $150
3. Profit! Everybody wins!

Seriously - it's funny how OP asks a simple question (how much does a hotel have to pay for 10MR points), and the thread turns mostly into moralistic carping about what he should or shouldn't have gotten or even asked for.

That's FT for ya....
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Old Jun 4, 2012, 8:03 pm
  #54  
 
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Originally Posted by kcblakely
1. Buy 10K MR points from Marriott for $125
2. Sell to hotel for $150
3. Profit! Everybody wins!

Seriously - it's funny how OP asks a simple question (how much does a hotel have to pay for 10MR points), and the thread turns mostly into moralistic carping about what he should or shouldn't have gotten or even asked for.

That's FT for ya....
Amen
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Old Jun 5, 2012, 8:42 am
  #55  
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Originally Posted by kcblakely
Seriously - it's funny how OP asks a simple question (how much does a hotel have to pay for 10MR points), and the thread turns mostly into moralistic carping about what he should or shouldn't have gotten or even asked for.
Given that the first reply to the OP (post #2) answered the question about a good as it can be answered, any other posts have to be for something else.
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Old Jun 5, 2012, 11:56 am
  #56  
 
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Originally Posted by socrates
it's funny how often hotels purchase points to reimburse a guest for a redemption stay...makes no sense to me, it's much easier to simply not redeem the certificate
I was also quite amused by this - but it fitted my purpose pretty well as I usually value points more than the Cert and had no real use for the Cat 1-4 cert anyhow.

FYI a hotels published rate has nothing to do with the reimbursement amount, it's all about point demand/supply
I know that of course. However I had one night on a award-cert and two nights on a paid reservation back-to-back at this particular hotel, and for anyone able to count to three it should be clear to offer to comp a paid night instead of purchasing points if the amount required to purchase those points was higher than the lost revenue of the following night...

Greetings - Dirk
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Old Jun 5, 2012, 1:30 pm
  #57  
 
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Originally Posted by kcblakely
1. Buy 10K MR points from Marriott for $125
2. Sell to hotel for $150
3. Profit! Everybody wins!

Seriously - it's funny how OP asks a simple question (how much does a hotel have to pay for 10MR points), and the thread turns mostly into moralistic carping about what he should or shouldn't have gotten or even asked for.

That's FT for ya....
We were answering his "bonus question" and giving our opinions. Just like you gave your opinion that it was funny.
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Old Jun 5, 2012, 2:10 pm
  #58  
 
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Ironically, moments after reading this thread, I got an email response from a REN that I questioned a $7.17 room service charge last week.

I had not ordered room service nor could imagine anything being delivered out of room service for the low, low price of $7.17!

The receipt they sent was $5.67 for a 1/2 bottle of Merlot and Nuts plus $1.50 for delivery. Even says PL on the receipt!

I guess we now know what MI pays for the arrival gift, no small wonder why the gift choices and quaility has gone way downhill in the last few years (IMO).

I've also seen small $12-15 per night charges appear during 10,000-15,000 award stays at FI, SHS, RI's...
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Old Jun 5, 2012, 6:07 pm
  #59  
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Originally Posted by djohannw
I know that of course. However I had one night on a award-cert and two nights on a paid reservation back-to-back at this particular hotel, and for anyone able to count to three it should be clear to offer to comp a paid night instead of purchasing points if the amount required to purchase those points was higher than the lost revenue of the following night...

Greetings - Dirk
well it's hotel's like the above that will keep their industry consultants (both internal and external) busy for years to come and will make asset managers cringe (also for years to come)
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Old Jun 6, 2012, 9:14 am
  #60  
 
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Originally Posted by BostonFlyer1624
On that note, what do Starwood, Hyatt, and Hilton all use?
Originally Posted by BKKLEE
each of these brands have confidentiality agreements with their personnel as well............
Actually, with Hilton it is public: Hilton Franchise Info

Click on the above link then HHonors Program then FAQ for Owners. Enlightening read.

There used to be a lot more information on that site that they have now password protected.
keeton is offline  


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