How do hotels get compensated when using Points?
Apr 9, 2014 | 7:30 am
#16
Join Date: May 2011
Location: BOS
Programs: AA PLT, Marriott LTP
Posts: 493
How do hotels get compensated when using Points?
Just something I've been curious about. Do the hotels get compensated by Marriott Corp somehow when a customer uses points?
Since they don't get money from us when we check out (excluding of course any incidentals etc) I'm wondering if it's in their interest to give you the worst room in the place, treat you real well since you're probably preferred or....?
I don't know, maybe it's in their franchise agreement that have to accept points with no compensation?
Since they don't get money from us when we check out (excluding of course any incidentals etc) I'm wondering if it's in their interest to give you the worst room in the place, treat you real well since you're probably preferred or....?
I don't know, maybe it's in their franchise agreement that have to accept points with no compensation?
Apr 9, 2014 | 8:37 am
#17
FlyerTalk Evangelist
Join Date: Aug 2006
Location: SNA
Posts: 18,599
Yes they get paid.
Apr 9, 2014 | 10:26 am
#18
Join Date: May 2005
Posts: 1,338
As Vicki said, they do get paid. I'm sure somebody can give finer details as they relate to Marriott, but every hotel has to pay corporate fees based on revenue. Some of those fees then go back to the hotels when rewards are redeemed. Of course the amount that is paid to the hotel depends on the Category and other factors.
And there is no incentive to give you a "bad room." If they treated customers badly, less customers would redeem or stay there resulting in less overall revenue (from customers and Marriott corporate/MR).
And there is no incentive to give you a "bad room." If they treated customers badly, less customers would redeem or stay there resulting in less overall revenue (from customers and Marriott corporate/MR).
Apr 9, 2014 | 11:59 am
#19
Used to be hamajicky
Join Date: Feb 2003
Location: ATL
Posts: 790
There is incentive to give points-users a bad room when the hotel is busy. I stayed at the JW Marriott Camelback in Phoenix on points when the hotel was sold out and was given a lousy room. I mentioned it at checkout, and the clerk said it was a "points room."
Apr 9, 2014 | 12:32 pm
#20
FlyerTalk Evangelist
Join Date: Aug 2006
Location: SNA
Posts: 18,599
What is the incentive? If they give 5 Plat members staying on points a bad room do they get a Starbucks gift card?
Apr 9, 2014 | 1:09 pm
#21
Join Date: May 2005
Posts: 1,338
You've got to be joking. You're MR redemption probably was for the smallest room type. If you checked in late after everyone else, you would have gotten the least desirable room of the room type. They didn't actively put you in a bad room.
Apr 9, 2014 | 1:12 pm
#22
Used to be hamajicky
Join Date: Feb 2003
Location: ATL
Posts: 790
I didn't check in late. I checked in at the check in time. I can only tell you what the clerk told me, that I had been given a "points room" because the hotel was busy.
Apr 9, 2014 | 2:40 pm
#23
Join Date: Oct 2001
Programs: LTP, PP
Posts: 9,108
I've gotten some of my nicer upgrades / rooms while on points (a suite recently in San Juan), I think most hotels would like the experience to be as rewarding as possible given its a rewards stay! And I read here from others with similar experience.
Then I'm sure there are hotels with the opposite tact and a FD clerk on a jealous power trip like the money is coming directly out of his/her pocket.
The reimbursement is relatively low (like $13 at a RI or FI) maybe to cover consumables but I also think Mr. Socrates has stated if their occupancy rate is high that night (>90% ?), its much, much higher. I've gotten this charges accidently billed to my room & credit card in the past which takes effort to reverse.
Then I'm sure there are hotels with the opposite tact and a FD clerk on a jealous power trip like the money is coming directly out of his/her pocket.
The reimbursement is relatively low (like $13 at a RI or FI) maybe to cover consumables but I also think Mr. Socrates has stated if their occupancy rate is high that night (>90% ?), its much, much higher. I've gotten this charges accidently billed to my room & credit card in the past which takes effort to reverse.
Apr 9, 2014 | 2:45 pm
#24
Join Date: Jul 2005
Location: PIT, BWI, or IPT
Programs: Dividend Miles, WorldPerks
Posts: 1,355
I once had $56 worth of points credited to my account for a Cat 5 points stay. I can only assume my hotel was paid $56 dollars by Marriott for my stay and I got the points.
Apr 9, 2014 | 4:04 pm
#25
Join Date: May 2008
Location: New Orleans, LA
Programs: MR Platinum, UA, AA, etc. etc. etc.
Posts: 52
I used to run the front desk of a courtyard (97-2000), and our reimbursement for points rooms was $14/night. The theory is that it covered the cost of cleaning the room, some staff time, toiletries, but that was about it.
Apr 9, 2014 | 4:37 pm
#26
FlyerTalk Evangelist
Join Date: Jan 2005
Location: home = LAX
Posts: 26,113
Interesting. I know someone who got an employee rate at a smaller Midewst city Fairfield Inn (which was a few days away from losing Marriott affiliation), and it was $18/night. That sounds mighty close, and makes me wonder: Do reimbursements for points rooms match employee rates? (I can envision the same theory you mentioned being used to also set employee rates!)
Apr 9, 2014 | 4:53 pm
#27
Join Date: Dec 2009
Location: PEK & MKE
Programs: Amex-gold, Hainan-gold, Mrt-LT Titanium
Posts: 1,532
+1
+1, on the upgrades with points experience. really the upgrade has to do more with check in time and the past # of stays at the selected hotel.
Apr 9, 2014 | 7:10 pm
#28
Moderator: Alaska Airlines Atmos Rewards
Join Date: Feb 2005
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I believe this question has been asked and discussed before.
Apr 9, 2014 | 8:03 pm
#29
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Apr 9, 2014 | 9:58 pm
#30
Moderator: Alaska Airlines Atmos Rewards
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