Paying a higher room rate for more points
#121
FlyerTalk Evangelist
Join Date: Jun 2007
Location: Toronto
Programs: UA 1K, AC MM E75, Marriott LT Ti, IHG Dia Amb, Hyatt Glob
Posts: 15,521
Curious how people feel about the following scenario. SPG gives a choice of 20% off or 2000 points for an approved BRG. If you submit a BRG request and it is approved, your company gets the benefit of the lower matched rate. Are you ethically obliged to take the additional 20% off or can you choose 2000 bonus points for your efforts?
#122
FlyerTalk Evangelist
Join Date: Jun 2004
Location: MSP
Programs: DL PM, MM, NR; HH Diamond, Bonvoy LT Gold, Hyatt Explorist, IHG Diamond, others
Posts: 12,159
Curious how people feel about the following scenario. SPG gives a choice of 20% off or 2000 points for an approved BRG. If you submit a BRG request and it is approved, your company gets the benefit of the lower matched rate. Are you ethically obliged to take the additional 20% off or can you choose 2000 bonus points for your efforts?
#123
FlyerTalk Evangelist
Join Date: Aug 2010
Location: CPH
Programs: UAMP S, TK M&S E (*G), Marriott LTP, IHG P, SK EBG
Posts: 11,088
Curious how people feel about the following scenario. SPG gives a choice of 20% off or 2000 points for an approved BRG. If you submit a BRG request and it is approved, your company gets the benefit of the lower matched rate. Are you ethically obliged to take the additional 20% off or can you choose 2000 bonus points for your efforts?
#124
Suspended
Join Date: Jun 2005
Programs: Delta Diamond, Marriott Ambassador & Lifetime Titanium, Hertz President's Circle, United Silver
Posts: 6,334
#125
FlyerTalk Evangelist
Join Date: Jun 2004
Location: MSP
Programs: DL PM, MM, NR; HH Diamond, Bonvoy LT Gold, Hyatt Explorist, IHG Diamond, others
Posts: 12,159
That's because it hears a lot of cases. On a percentage basis, it isn't the most overturned court.
No, the 9th Circuit isn't the 'most overturned court in the country,' as Hannity says | PunditFact
No, the 9th Circuit isn't the 'most overturned court in the country,' as Hannity says | PunditFact
#126
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 52,570
Q1: There are bundled hotel rates that fall within our corporate rate guidelines. Can I book them?
Q2: I'd like to purchase some extra frequent flier miles or hotel points for personal use. Can I expense that?
Q1 might get a "yes" from someone unfamiliar with bundled hotel rates, or just thinking "bundled" means breakfast or parking is included.
Q2 usually gets a different response.
#127
Original Poster
Join Date: Sep 2017
Posts: 575
Rates
I can also see this question getting asked in such a way that people unfamiliar with the exact scenario won't know what you're talking about.
Q1: There are bundled hotel rates that fall within our corporate rate guidelines. Can I book them?
Q2: I'd like to purchase some extra frequent flier miles or hotel points for personal use. Can I expense that?
Q1 might get a "yes" from someone unfamiliar with bundled hotel rates, or just thinking "bundled" means breakfast or parking is included.
Q2 usually gets a different response.
Q1: There are bundled hotel rates that fall within our corporate rate guidelines. Can I book them?
Q2: I'd like to purchase some extra frequent flier miles or hotel points for personal use. Can I expense that?
Q1 might get a "yes" from someone unfamiliar with bundled hotel rates, or just thinking "bundled" means breakfast or parking is included.
Q2 usually gets a different response.
Our issue with our company is no where in our travel policy does it say anything about bundled rates or hotel packages. Most of the time it is cheaper to get the food and parking package then to do it individually. But I have never been questioned about a package in the last 4 years.
#128
FlyerTalk Evangelist
Join Date: Aug 2010
Location: CPH
Programs: UAMP S, TK M&S E (*G), Marriott LTP, IHG P, SK EBG
Posts: 11,088
Our issue with our company is no where in our travel policy does it say anything about bundled rates or hotel packages. Most of the time it is cheaper to get the food and parking package then to do it individually. But I have never been questioned about a package in the last 4 years.
What some of us are trying to tell you that there "might" be consequences and I don't know how old you are but a lot of us here are not in their 20s or 30s.
Great that you have such a great job and if the company you are working for has HQ in Scandinavia then I can tell you that their travel policy doesn't allow what you are doing.
For your company money point purchasing, sometimes some Marriott hotels have elite rates that gives you 1k point per night/stay.
#129
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 52,570
Neither does ours. It could never get so detailed to cover every possible scenario we run across in travel, but at some point there's an expectation to be smart and ethical about it. So if the food/parking rate was legitimately a good value, I'd book it knowing that if anybody asked about it, it would be super easy to explain. A bonus-points bundle...not so much.
#130
Join Date: Apr 2003
Location: SLC/HEL/Anywhere with a Beach
Programs: Marriott Ambassador; AA EXP 3MM; AS MVP, Hilton Gold, CH-47/UH-60/C-23/C-130 VET
Posts: 5,234
That is the problem with bundled rates, expense accounts, etc. Companies presume we are acting ethically and appropriately. I presume the hotel that set the rates with points isn't expecting someone to expense the higher rate but thinks someone might pay extra to top off their points account.
In connection with corporate policies and interpretations, I'm confident that I have as much familiarity with this issue as anyone around. A supervisor might stretch an interpretation, but ultimately, policy interpretations on issues like this for companies that are publicly traded in the US roll up to the audit committee. If the audit committee was asked whether it is OK for an employee to expense a bundled rate at Marriott that included parking and meals, they would say of course (the answer might be different if they use a per diem approach to meals). If they were asked whether it is OK for an employee to pay a higher rate so that the employee can receive additional points, well ... we all know the answer to that.
All that being said, these rates that include points bonuses often make no financial sense. You can simply buy them 1000 for $12.50. That being said, if the rate was $5 higher for 2000 points (and you were paying the $5 out of your pocket), maybe it would make sense.
In connection with corporate policies and interpretations, I'm confident that I have as much familiarity with this issue as anyone around. A supervisor might stretch an interpretation, but ultimately, policy interpretations on issues like this for companies that are publicly traded in the US roll up to the audit committee. If the audit committee was asked whether it is OK for an employee to expense a bundled rate at Marriott that included parking and meals, they would say of course (the answer might be different if they use a per diem approach to meals). If they were asked whether it is OK for an employee to pay a higher rate so that the employee can receive additional points, well ... we all know the answer to that.
All that being said, these rates that include points bonuses often make no financial sense. You can simply buy them 1000 for $12.50. That being said, if the rate was $5 higher for 2000 points (and you were paying the $5 out of your pocket), maybe it would make sense.
Last edited by C17PSGR; Dec 14, 2017 at 5:52 pm
#131
Join Date: Mar 2007
Location: SJC/SFO
Programs: WN A+ CP, UA 1MM/*A Gold, Mar LT Tit, IHG Plat, HH Dia
Posts: 6,284
Here's a hypothetical example for people applying the word "stealing" strongly. Not that I disagree with you, per se; I'm just curious if you see these situations as comparable. Suppose I am traveling to a location where a Holiday Inn Express and a Fairfield Inn are located close to each other. The HIX sells for $129++ per night, the FI for $139++. I'm using these brands in the example because a lot of people consider them comparable. (If you don't, fine, but let's not argue that here.) Both rates are well within my company's guidelines for expenditure. Now suppose that MR is offering a 2x bonus points promotion and IHG has no promo. (Haha, that's unlikely, but let's not argue that either.) If I pick the FI because of that bonus am I stealing $10 plus tax from my employer? What if there's no bonus and I just happen to like the FI better?
#132
Join Date: Apr 2003
Location: SLC/HEL/Anywhere with a Beach
Programs: Marriott Ambassador; AA EXP 3MM; AS MVP, Hilton Gold, CH-47/UH-60/C-23/C-130 VET
Posts: 5,234
Here's a hypothetical example for people applying the word "stealing" strongly. Not that I disagree with you, per se; I'm just curious if you see these situations as comparable. Suppose I am traveling to a location where a Holiday Inn Express and a Fairfield Inn are located close to each other. The HIX sells for $129++ per night, the FI for $139++. I'm using these brands in the example because a lot of people consider them comparable. (If you don't, fine, but let's not argue that here.) Both rates are well within my company's guidelines for expenditure. Now suppose that MR is offering a 2x bonus points promotion and IHG has no promo. (Haha, that's unlikely, but let's not argue that either.) If I pick the FI because of that bonus am I stealing $10 plus tax from my employer? What if there's no bonus and I just happen to like the FI better?
Can you make a business justification for paying $10 more just so you can have points in your account?
#133
Join Date: Jun 2008
Location: BDU
Programs: DL:MM, Marriott:LTT
Posts: 8,779
Breaking my pledge to stop participating in this way off topic and exceedingly silly thread...
Common sense should rule. Choosing the slightly higher rate for the FI above is likely within the rules for most companies. I have worked for companies that would allow us to forgo limited service brands for safety reasons, but I've usually felt safe in an FI and would stay there. (Not the Fayetteville NC FI near the Eiffel Tower! But there was even a murder there IIRC.) Having status means I'm more likely to get a quiet room and there may be additional considerations between an FI and HI. That's very different than spending $150 on a room versus spending $180 for the same room for nothing different than stuffing points into your pocket. The first is a decision based on many factors. The second is a decision solely made to convert company money into points. C'mon, everyone knows the difference between a points difference that comes along with a decision made for several reasons versus a decision made solely for points. The latter is stealing. If you are getting the same room in the same hotel either way but you are turning more of the company's money over to the hotel so that they give you more points, you are stealing. It's not complicated.
Most corporate travel policies include provisions such as this one off an Internet sample: "Travel program benefits can be retained by the traveling employee, but cannot be the basis for selecting the air carrier, hotel, or car rental, unless such choice is equal in cost to the lowest cost acceptable alternative." There can be many reasons for choosing one hotel over another, but choosing the same room but a different rate solely to get more points from the higher rate violates this type of provision as there is no reason other than points for choosing the higher rate. Even if there is no such provision, what can you call converting company money into personal points other than stealing?
If you were questioned by your employer and your employer indicates there is no clear written provision allowing you to choose a higher rate to get points, how would you explain that you thought spending money to get additional points was acceptable? Frankly, saying "I thought it was okay" would sound silly as would claiming the maximum allowable means you should spend the full amount. Those types of answers could be career enders. It can easily be explained that converting company money into personal points is wrong, but how would you explain the opposite: that converting company money into points is acceptable?
One last thing... as another poster already mentioned, those of us explaining over and over again why this is wrong are trying to keep some of you from making mistakes that can impact your future. Better to err on the side of caution and not do something that can be questioned than try to justify to yourself why something clearly wrong is acceptable. As you can see, you are not convincing those that view this as stealing. We are mostly more seasoned travelers here and would likely be the types you will be answering to when your behavior is caught. Are a few measly points worth your reputation, your job, having to pay back the money later or maybe even worse?
End of rant.
Common sense should rule. Choosing the slightly higher rate for the FI above is likely within the rules for most companies. I have worked for companies that would allow us to forgo limited service brands for safety reasons, but I've usually felt safe in an FI and would stay there. (Not the Fayetteville NC FI near the Eiffel Tower! But there was even a murder there IIRC.) Having status means I'm more likely to get a quiet room and there may be additional considerations between an FI and HI. That's very different than spending $150 on a room versus spending $180 for the same room for nothing different than stuffing points into your pocket. The first is a decision based on many factors. The second is a decision solely made to convert company money into points. C'mon, everyone knows the difference between a points difference that comes along with a decision made for several reasons versus a decision made solely for points. The latter is stealing. If you are getting the same room in the same hotel either way but you are turning more of the company's money over to the hotel so that they give you more points, you are stealing. It's not complicated.
Most corporate travel policies include provisions such as this one off an Internet sample: "Travel program benefits can be retained by the traveling employee, but cannot be the basis for selecting the air carrier, hotel, or car rental, unless such choice is equal in cost to the lowest cost acceptable alternative." There can be many reasons for choosing one hotel over another, but choosing the same room but a different rate solely to get more points from the higher rate violates this type of provision as there is no reason other than points for choosing the higher rate. Even if there is no such provision, what can you call converting company money into personal points other than stealing?
If you were questioned by your employer and your employer indicates there is no clear written provision allowing you to choose a higher rate to get points, how would you explain that you thought spending money to get additional points was acceptable? Frankly, saying "I thought it was okay" would sound silly as would claiming the maximum allowable means you should spend the full amount. Those types of answers could be career enders. It can easily be explained that converting company money into personal points is wrong, but how would you explain the opposite: that converting company money into points is acceptable?
One last thing... as another poster already mentioned, those of us explaining over and over again why this is wrong are trying to keep some of you from making mistakes that can impact your future. Better to err on the side of caution and not do something that can be questioned than try to justify to yourself why something clearly wrong is acceptable. As you can see, you are not convincing those that view this as stealing. We are mostly more seasoned travelers here and would likely be the types you will be answering to when your behavior is caught. Are a few measly points worth your reputation, your job, having to pay back the money later or maybe even worse?
End of rant.
#134
Join Date: Apr 2003
Location: SLC/HEL/Anywhere with a Beach
Programs: Marriott Ambassador; AA EXP 3MM; AS MVP, Hilton Gold, CH-47/UH-60/C-23/C-130 VET
Posts: 5,234
One last thing... as another poster already mentioned, those of us explaining over and over again why this is wrong are trying to keep some of you from making mistakes that can impact your future. .... We are mostly more seasoned travelers here and would likely be the types you will be answering to when your behavior is caught.
End of rant.
End of rant.
Any many of us have seen more than one person get fired for travel fraud.
#135
Join Date: Jan 2005
Location: Silicon Valley
Programs: Marriott Ambassador
Posts: 1,243
I'm amazed that it is even a discussion whether booking a higher cost room solely for additional points is acceptable. AS CJ said, if you believe that is acceptable, simply ask the powers that be. If you are unwilling to do so, that's your answer.