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"Completely Hypothetical" question for William

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Old Jul 30, 2002, 9:52 pm
  #1  
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"Completely Hypothetical" question for William

It seems that this is how it -
Guest stays / eats at hotel, hotel is under contract to report and pay for SPG points. Guest redeems points, SPG pays hotel a contracted rate for night.

Occasionally hotel decides to give guest points based upon the reimbursement that SPG gives hotel on free stay. Hotel is under no obligation to do so but decides on its own, either through faulty accounting or goodwill to do so, at "no cost" to SPG, but at a cost to the hotel.

Is this analysis accurate? Also, if the hotel reports something as a stay/night as opposed to just an eligible charge (like not spending the night, but paying for a guaranteed room) is this another "cost event" to the hotel?

And... if this is all proprietary info and you can't answer, does anyone else know? Just curious.

[This message has been edited by Eastbay1K (edited 07-30-2002).]
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Old Jul 31, 2002, 11:32 am
  #2  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Eastbay1K:
It seems that this is how it -
Guest stays / eats at hotel, hotel is under contract to report and pay for SPG points. Guest redeems points, SPG pays hotel a contracted rate for night.

Occasionally hotel decides to give guest points based upon the reimbursement that SPG gives hotel on free stay. Hotel is under no obligation to do so but decides on its own, either through faulty accounting or goodwill to do so, at "no cost" to SPG, but at a cost to the hotel.

Is this analysis accurate? Also, if the hotel reports something as a stay/night as opposed to just an eligible charge (like not spending the night, but paying for a guaranteed room) is this another "cost event" to the hotel?

And... if this is all proprietary info and you can't answer, does anyone else know? Just curious.

[This message has been edited by Eastbay1K (edited 07-30-2002).]
</font>
Sometimes the hotels make a mistake in the way they report a transaction, whether it be a dining credit not associated with a stay or for a non-revenue room night. When this happens, the analysis you offer plays out pretty well.

Sometimes they discover this on their own, sometimes they do it with a little help from us, but everytime they are responsible for correcting it so it doesn't happen again. This can involve anything from re-training the person reporting the transactions to simply loading an award rate as suppressed.

Since it is not an expense to us, we usually do not correct these things of our own accord, but do alert the hotels to the situation whenever we discover it.

Hope that helps.

Best regards,

William R. Sanders
Specialist, E-Communications Department
Starwood Hotels & Resorts Worldwide

[email protected]
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