When I see a new hotel loyalty promotion roll out, my analysis focuses on how I can maximize the value of the promotion to reduce my overall cost for hotel nights. I plan my hotel travel year with the purpose of earning elite status and its commensurate hotel benefits, but I also keep my eyes open to high-value promotions for earning free hotel nights.

This past week I wrote two posts on Base Points Equivalent Value.  I truly am just making this stuff up. I have to make this stuff up since I am unaware of anyone else creating consumer models for hotel loyalty programs.

The rationale for creating Base Points Equivalent Value modeling is to develop a method to compare hotel loyalty promotions between different programs.

Background

I was Hilton HHonors Diamond for about five years until around 2006. I intuitively felt most hotel loyalty promotion offers from Starwood Preferred Guest, Marriott Rewards, and Priority Club were higher value offers than I received from Hilton HHonors. The promotions from Hilton HHonors just seemed less valuable than offers from other programs, but I had no way to actually compare offers in different programs.

Readers take note: Hilton HHonors was one of the best hotel loyalty programs for high value promotions in 2010. The HHonors program took a big PR blow when HHonors raised the cost of reward nights at more than 80% of its 3,600 global properties in January 2010. The return of high-value promotions and increased availability of PointStretcher reward nights has added a bit more value back to the HHonors program in 2010.

Comparing Hotel Loyalty Programs

Sites like Carlson Hotels goldpoints plus DotheMathSite.com compare hotel loyalty programs by base points and elite bonus points earned from a set level of annual hotel spend. Earned points are correlated to hotel reward cost to show the number of free nights earned for the set level of hotel spend.

There are two major problems with this model:

• Hotel reward categories are considered equivalent across different hotel loyalty programs. I argue that program comparisons cannot be accurately made when aligning hotel reward categories between programs. Dothemathsite.com compares Hilton category 3 award nights to Marriott Rewards and SPG category 4 hotel reward nights. I argue that SPG and Marriott category 4 reward hotels are generally a higher class hotel market segment than HHonors category 3 reward hotels.  

A comparison of category 1 hotel rewards is also misleading since Hilton and Starwood have only around 1% of their total global portfolio listed as category 1 hotels while Hyatt and Marriott have a much higher percentage of their hotels in the lowest hotel reward category (see graph below).

• Promotions are not considered in hotel loyalty program comparisons.

Loyalty Traveler axiom: Promotions are a vital and variable factor in hotel loyalty program comparisons.

 

Credit card sites develop “value of point” averages for each program. Average point value is useful for some comparisons, but I argue an individual can do much better than average if you take it to the limit.

For example: 50,000 Hilton HHonors points for a category 7 hotel reward night can be used for a room that will cost $100 per night at some hotels or $500 per night at other hotels.

The consumer has the choice whether to redeem for $100 in cash savings at a high-category reward hotel in a popular location off-season or $500 at a high-end, high-category hotel with a luxury reputation.

Personally, I try and take it to the limit when getting the most hotel value for my points.

Chicago Case Study of 2011 Hotel Loyalty Promotion Value

Hotel loyalty programs have highly-educated mathematicians to create complex cost-benefit models for hotel loyalty promotions.

Loyalty Traveler is developing a simply-educated consumer model for comparing promotion value.

Here is how I look at the current Q1-2011 hotel loyalty promotions from Hilton Honors, Marriott Rewards, Starwood Preferred Guest, and Carlson Hotels goldpoints plus through my base points equivalent value model.

I stayed a week in downtown Chicago October 2010. Most major hotels were in the $200 to $400 price range during that week with large conventions booking up hotels.

I used 25,000 Priority Club points to stay at the Crowne Plaza Avenue when the room rate was around $300 after tax. I stayed at two Starwood Hotels using Cash & Points and saved around $200 per night on hotel rates.

Sure I could have Pricelined my way into the Red Roof Inn right off Chicago’s Magnificent Mile for $100 a night. I think my loyalty points offered the better Chicago deal for hotels. 

The low room rates in Chicago for this January and February kind of blow me away. The winter months offer a great opportunity to hang out in downtown frozen Chicago on cheap rates while piling up promotion credits.

Marriott MegaBonus

(New Marriott MegaBonus is available now for registration and hotel stay offer starts February 1, 2011)

Fall MegaBonus offered free night after two stays paid with Visa through January 15, 2011. Registration closed for Fall MegaBonus Oct 31. The examples I show here are likely applicable for February travel too. 

• Tue Jan 11  Fairfield Inn & Suites Chicago Downtown = $79  (MR category 5: 25,000 points)
• Wed Jan 12  Springhill Suites Chicago River North = $99  (MR category 5: 25,000 points)

 

Marriott Rewards Promotion MegaBonus

$178 x 10 points/$1  = 1,780 base points for two nights.

1,780 base points + one free night at MR category 4: 20,000 points.

Quantifying the value of Marriott’s MegaBonus free night promotion 

20,000 points is equivalent to the number of base points normally earned with $2,000 in Marriott Rewards hotel spend.

• Base Points Equivalent Value (BPEV) for this promotion bonus offer is $2,000.
• The promotion has a BPEV = $2,000 for $178 hotel spend.
• $2,000 BPEV/$178 = 11.23

Divide the Marriott Rewards MegaBonus BPEV value by the amount of hotel spend to earn the promotion bonus value. For this stay the promotion value shows every $1 in actual hotel spend ($178) earns $11.23 equivalent in base points for these two nights at Fairfield Chicago Downtown and SpringHill Suites. 

The resulting number (11.23) can be compared to other promotions and hotel stay patterns to reveal an earn rate for hotel promotions. The higher the number the more points earned per dollar in hotel spend. 

I think this number also correlates with promotions and hotel reward earning for other hotel chains like Starwood and Hilton. 

Taking Loyalty Upscale 

Promotion bonus earn rate for Marriott MegaBonus will be less if you spend more money to earn the same free hotel night after two stays. 

For example, in Chicago: 

• Thu Jan 13 Renaissance Blackstone Chicago $159 (MR category 6: 30,000 points)
• Fri Jan 14  JW Marriott Chicago $179 (MR category 6: 30,000 points) 

The promotion free night earned at a category 4 Marriott Rewards hotel is still worth 20,000 points and has a promotional bonus BPEV = $2,000. This means you would need to spend $2,000 to earn the same category 4 hotel reward night without the MegaBonus promotion. 

Renaissance Blackstone + JW Marriott Chicago = $338.

• 2,000 BPEV/$338 = 5.92

Fairfield Inn Chicago + SpringHill Suites Chicago = $178

• $2,000 BPEV/$178 hotel spend = 11.23 

11.23 compared to 5.92 indicates the promotion bonus is earned at a faster rate or lower level of hotel spend when staying at the Fairfield Inn and SpringHill Suites for $178 to earn the free night rather than the Renaissance and JW Marriott.  It should be intuitively obvious that earning the same bonus for less money gives a better promotion earn rate. 

Within a single program it is easy to show how the promotion value changes when a free night is earned through less hotel spend as shown with Chicago Fairfield Inn and SpringHill Suites example. Two stays at these hotels for $178 earns a free category 4 hotel night. Another Marriott Rewards member may spend $338 and earn the same Marriott category 4 hotel free night bonus. 

Spending $178 to earn a free night is better promotional value, although there is an argument that two stays at Renaissance and Marriott may be the overall better lifestyle value, especially if the member is elite and upgraded. This is a point that has become internalized personally after several years of playing hotel loyalty promotions.

As a Marriott Rewards member I may only really care about what I can get with a free night at a Marriott Rewards category 4 hotel.

Example of Marriott Rewards Category 4 hotel nights

Pittsburgh Marriott City Center May 23-27, 2011

$289/night.

Something is happening in Pittsburgh during these dates I randomly picked in a random location. Courtyard Pittsburgh Downtown is $229 per night and also a Marriott Rewards category 4 hotel.

Both of these Marriott brand hotels are available using points for free nights during these dates in May when the rates are astronomically high.

This example shows how you can stay in two upper-upscale hotels for two nights in Chicago for $338 and earn a future free hotel night at another upper-upscale hotel worth $289. This is an 85% rebate value on the cost of your initial hotel stays to earn the free night.  

As the annual forward-looking loyalty traveler I am, my plan is earn four free nights with 8 one-night stays during the next few months at Marriott brand hotels and potentially save $1,300 with four free hotel nights… whether in Pittsburgh, Hong Kong, Moscow or Prague. 

For the faithfully loyal Marriott Rewards member there is really no reason to look beyond what is spent, what is earned, and the value of points and free nights with Marriott.

BPEV is more useful as a tool for comparing Marriott to Hilton and Starwood promotions.

Base points equivalent values (BPEV) are useful to show how Hilton and Starwood Q1 2011 promotions stack up to Marriott’s MegaBonus offer. 

I have already shown how Marriott’s MegaBonus offer in Chicago has the potential for earning a $300 free night after $178 in hotel spend. (Tax is a significant factor adding as much as 20% to your actual hotel spend, but I exclude it for simpler calculations. In real travel taxes and fees are a real added expense.) The problem with Marriott MegaBonus is there is no more promotion incentive after four hotel stays. Marriott may be a high value promotion, but I need to move on once I have earned the two free nights before April 30, 2011.

2011 Q1 SPG Great Weeks, Grand Weekends Jan 3- April 15

SPG ‘Great Weeks, Grand Weekends’ 2011 Q1 promotion offers double points every night and 500 points per weekend night Thursday through Sunday nights. 

Double Points = 2 base points per dollar + 2 bonus points per dollar = 4 points per $1 

Four Points Chicago Downtown/Magnificent Mile (Adjacent to Trader Joe’s for groceries)

• Thursday-Monday, January 13-17, 2011
• $75/night.
• $300 for a 4-night stay. 

Four Points Chicago 4-night weekend stay $300 total hotel spend earns:

600 base points + 600 bonus points (double points) + 2,000 bonus points (4 nights x 500 points per weekend night) 

= 3,200 points for this $300 4-night stay. 

This $300 hotel stay earns the same amount of points normally earned from $1,600 in hotel spend without any bonus promotions. $1,600 hotel spend x 2 points per dollar = 3,200 base points. 

My Loyalty Traveler BPEV model looks only at the 2,600 bonus points earned from the promotion in isolation of the normal base points.

SPG ‘Great Weeks, Grand Weekends’ promotion value is 2,600 points = $1,300 base points equivalent value. This $300 Starwood hotel stay has a $1,300 base points equivalent value.

SPG ‘Great Weeks, Grand Weekends’ promotion value for four nights in Chicago = $1,300/$300 = 4.33 

I showed above how the Marriott Rewards MegaBonus promotion can be done in four nights for $516 in Chicago and earn the equivalent of 40,000 points when used for two free Marriott Rewards category 4 hotel nights. Marriott MegaBonus promotion cost $516 for four nights in Chicago and earns $4,000 BPEV. 

Marriott Rewards MegaBonus promotion value for four nights in Chicago = $4000/$516 = 7.75. 

Ultimately the value of any hotel loyalty promotion is determined by your hotel points redemptions.

$300 spent at the Four Points Chicago earns 3,200 points overall. This is sufficient for one weekend night at a SPG category 2 hotel. You might redeem a SPG category 2 free night and save $75 on the room rate or save $200 on a room night at some other hotel some other night. Redeem wisely.

Sheraton Miami Airport $159 room rate or 3,000 points Saturday 2-19-11

Marriott Rewards is a higher value promotion than SPG Great Weeks, Grand Weekends in this comparison of BPEV derived promotion value, but ultimately the value of a hotel loyalty promotion depends on the value of free night redemptions. The limitation of MegaBonus means the promotion bonus value is done after earning two free nights. SPG may be the next best deal. But we still need to look at Hilton HHonors 2011 Q1 offer.

  

Hilton HHonors 4x points on 4-night stays 

• Hilton Suites Chicago Magnificent Mile
• $101 per night January 13-17, 2011

$84 Advance Purchase Rate x 4 nights = $336.00 hotel spend = 15,120 points 

336 x 15 points = 5,040 (Points & Points) + 10,080 points (4x promotion is 30 points /$1 bonus)

= 15,120 points 

Without 4x promotion this stay earns 5,040 points. Promotion 4x base points is a bonus of 10,080 points. 

10,080 promotion bonus points is a $1,008 base point equivalent value (BPEV) for a Points & Miles earner or $672 BPEV for a Points & Points earner. 

Hilton HHonors 4x promotion value

• $1,008 BPEV/$336 hotel spend = 3.0 (Points & Miles Earner)
• $672 BPEV/$336 hotel spend = 2.0 (Points & Points Earner) 

My BPEV model indicates the Hilton HHonors member is only earning $2 in BPEV per $1 in hotel spend for the Points & Points earner compared to the Four Points weekend stay earning $4.33 in BPEV per $1 for the SPG member and from $5 to $11 in BPEV per $1 for the Marriott member depending on hotel choice.

The BPEV model also accounts for low promotion bonus value. Here are a couple of examples.

Westin Michigan Avenue Chicago  

• January  3-6, 2010
• $99/night x 3 nights = $297
• Double Points = $297 x 4 = 1,188 points 
• Promotion bonus is 594 points.

Base Points Equivalent Value = $297

$297 BPEV/$297 hotel spend = 1.0 (double points promotion)

Hilton Palmer House Chicago

• Jan 3-6, 2010            
• Any Weekend Anywhere rate includes breakfast and earns double points.
• $127/night x 3 nights = $381

Hotel Stay Points

$381 x 15 points/$1 (Points & Points earner) + $381 x 20 points/$1 (3x base points Q1 2011 promo bonus) + 381 x 10 points (Any Weekend Anywhere bonus) = 17,145 points.

11,430 bonus points has a BPEV value = $762 for HHonors Points & Points earner.  (11,430/15)

$762/$381 = 2.0 for HHonors 3x promotion for 3-night stay. 

The better promotion, SPG or Hilton depends on nights of the week and length of stay. 

These two examples illustrate how double and triple points promotions reduce the leverage factor opportunity for maximizing promotion value. When there is a set bonus for nights or stays like Marriott’s free night after two stays, then reducing hotel spend to earn that bonus maximizes the leverage potential. When a bonus is a base points multiple of hotel spend, then there is little leverage potential except to meet the stay requirements for earning the best promotion bonus available like Starwood’s double points + 500 points per night or Hilton’s triple and quadruple base points for three and four night stays. 

This is the final post in my series explaining the Base Points Equivalent Value model.

This BPEV idea has been playing around in my head over the past couple of weeks. As I said, I am just making this stuff up as a way to mathematically compare the value of hotel loyalty programs in a single program or across hotel loyalty programs. 

I do think base points equivalent value is a way of reasonably comparing hotel promotions in different loyalty programs.

Related posts:

Base Points Equivalent Value Method for Comparing Hotel Loyalty Programs (Dec 29, 2010)

Comparing 2011 Q1 Hotel Loyalty Promotions using Base Points Equivalent Value (Dec 30, 2010)

The Cosmopolitan Las Vegas is part of the Marriott Autograph Collection of independently branded hotels. Marriott won the musical chairs game in branding the Cosmopolitan for its Marriott Rewards members.

The Cosmopolitan Las Vegas could have been a Grand Hyatt. That was the plan reported in the Las Vegas Sun April 6, 2005 when the Cosmopolitan Resort and Casino was scheduled for an early 2008 opening. Hyatt pulled out of the project.

Then the Cosmopolitan was reported to become the first representative of Hilton’s new Denizen hotel brand. Months after Deutsche Bank foreclosed on the Cosmopolitan project in 2008, the news broke in March 2009 that Hilton would rebrand the hotel-casino project.

Denizen Hotels never got off the ground due to legal troubles brought from an April 2009 corporate espionage lawsuit by Starwood Hotels claiming Mr. Ross Klein, former president of Starwood’s luxury brands group  took proprietary Starwood Hotel plans to Hilton Hotels Corporation when he became head of Hilton’s luxury and lifestyle brands and launched the Denizen brand project in amazingly short time.  USA Today story of Denizen. Lawsuit puts Denizen brand on hold - Hotel World Network (April 17, 2009). Mr. Klein was suspended from his position and the Denizen hotel brand was shelved by Hilton.

Finally in August 2010 Marriott Hotels penned an agreement with the Cosmopolitan to brand the hotel in the Autograph Collection of independent properties.

Identity – The Cosmopolitan loyalty program

No wonder the Cosmopolitan came up with the name “Identity” for its gaming rewards program. The hotel also participates in Marriott Rewards, so there is confusion with two hotel loyalty programs competing for guests.

Marriott Rewards members earn 10 points per dollar at the Cosmopolitan just like other full service Marriott Rewards hotels. The Cosmopolitan is a Marriott Rewards category 7 hotel reward at 35,000 points for a free night. FlyerTalk members report there is a Marriott Rewards representative at the hotel working with the Cosmopolitan to integrate loyalty benefits for its Marriott Rewards members.

Identity may be the preferable rewards program for guests more interested in the Cosmopolitan property than Marriott Hotels in general. Identity members receive 10 points per $1 for hotel room rate and a free night after 8 nights at the Cosmopolitan. Assume $200 per night average room rate and you earn a free night after just $1,600 in hotel spend. Use your free night on a weekend for best value.

Marriott Rewards requires $3,500 in base spend to earn a free night, although elite members and promotion bonuses may reduce that hotel spend amount significantly.

The big advantage of Identity is for gamblers.

Earning Identity Points

Identity Points reside in a member’s personal account and are based on the amount of dollars either spent or wagered.

Identity Points can be earned by members as follows:

· 10 points for every $1 spent on room or suite accommodations

· 10 points for every $4 of other resort spending (e.g., restaurants, spa, selected retail)

· 10 points for every $15 wagered on reel/video reel slot

· 10 points for every $50 wagered on video poker

· 10 points for every $100 wagered on table games (approximate – varies by game type)

· Identity members who book their hotel stay through a third-party partner or online travel agency will receive a flat amount of 1,000 points per night of accommodations, in addition to points earned on their other expenditures.

Identity points may be used for room upgrades. 

FlyerTalk member Cova provides a detailed description of the Identity loyalty program and membership tier benefits with qualifications.

 

The Rooms at the Cosmopolitan

The vibrant blue of the couch, contemporary art and open space  bathrooms are modern decor for guests. The type of guest being marketed by the Cosmopolitan is a little difficult to ascertain from this 60-second TV spot.

The Cosmopolitan appears to be a pet-friendly hotel!

The club scene of the Cosmopolitan with the Bond Bar located right on Las Vegas Boulevard and the upstairs Marquee nightclub extending right out to the adults pool area with eight elevated clear glass hot tubs is the kind of place you lounge with a martini, but not in solitary comfort. The Cosmopolitan  is designed for partying, playing, dancing, dining and viewing Las Vegas from your room terrace. The Cosmopolitan is designed for people to hang out.

There is gambling too at The Cosmopolitan.

The Cosmopolitan is the last major new casino and hotel planned for Las Vegas over the next three to five years. Rates in the $200 to $300 range for the lowest category rooms over most of the next few months is a bold move in this economy.

One of the unique features of The Cosmopolitan is 70% of the nearly 3,000 hotel rooms have terrace balconies. No other major casino resort on the Las Vegas Strip offers terrace room balconies in regular hotel rooms.

Currently the lowest rates over the next several months are $135 for a Studio Terrace on January 2 and 3. You can book a Terrace Suite on these dates ($235) for less than the price of a Studio Terrace on most weekends (Studio Terrace $260 Friday Jan 28; Terrace Suite $410) for the next three months .

The rooms at The Cosmopolitan add 1.5% more rooms to Las Vegas. My gut feeling is room rates over the next few months will drop to the $120 to $150 range from their current $160 to $200 average. The Cosmopolitan will be a good indicator hotel to watch for rate fluctuation settling somewhere more specific in the Aria to Encore to Mandarin Oriental price range.

Pre-Opening Press Tour Tuesday, Dec 14

The pre-opening press tour did not permit photography inside the hotel. This Loyalty Traveler post has links to websites showing photos and videos of  The Cosmopolitan. YouTube video links uploaded by The Cosmopolitan show room tours. Room photos posted here were received from The Cosmopolitan hotel PR department.

There are five basic room types at The Cosmopolitan:

• Terrace Studio (620 sq. ft. + 110 sq. ft. terrace – kitchenette with microwave and refrigerator)
• City Room (460 sq. ft. studio with two queen beds – no terrace)
• Terrace One Bedroom (610 sq. ft. + 110 sq. ft. terrace – Japanese square soaking tub; kitchenette with stove, microwave and refrigerator)
• Terrace Suite (910 sq. ft. + 160 sq. ft. terrace – two bathrooms with master bath spa tub )
• Wraparound Terrace Suite (1,200 sq. ft. + 480 sq. ft. terrace - in-suite washer/dryer )
• Terrace Studio Premium View, Terrace One Bedroom Premium View and Terrace One Bedroom Plus with oversize terrace are better locations for these hotel room categories; likely a  Bellagio Fountain view.

The two Cosmopolitan tower buildings are about 600 ft. tall. The floor numbering is creative just like at Aria Resort where floors 40-49 do not exist.  The Cosmopolitan is confusing too with guest floors starting at 15 and no room floors in the 40s.

How to fit 75 floors in a 603 ft. tower?

Las Vegas has creative floor numbering.  My memory recalls 75 as the top floor elevator button in the east tower of the Cosmopolitan. I read a review by a person who stayed on the 68th floor last week. So how does a hotel not built for hobbits get 75 floors in a 603 ft. building?

I noticed during my stay at the Aria Resort that no elevators had buttons for floors 40 to 49 in the 59 floor tower. I asked several employees about the missing floors. Nobody simply explained that no floors in the 40s exist in the hotel. The floor numbering goes directly from 39 to 50. The 59th floor penthouse is actually a 49th floor location.

Wikipedia lists the tallest buildings in Las Vegas. Aria Resort at City Center is 600 ft. and 50 floors. The Cosmopolitan East Tower I toured last week is listed at 603 ft. and 51 floors. Check out the elevator numbers when you are going up the tower. There must be a lot of missing floor numbers between the Promenade restaurant level and the 75th top floor.

The reason cited for no floors in the 40s is an association with bad luck/death in Asian cultures. Others think it is just a way to make Las Vegas hotels appear taller to hotel guests than they actually are. Encore, Wynn and Palms Place also do not have room floors in the 40s.

Room Photos

The Cosmopolitan Terrace Studio

Video: The Cosmopolitan Terrace Studio (YouTube 33 sec)

 

The Cosmopolitan City Room

Video: The Cosmopolitan Las Vegas City Room (YouTube – 21 sec)

The Cosmopolitan  – Terrace One Bedroom

Video: The Cosmopolitan Las Vegas = Terrace One Bedroom (YouTube – 27 sec.)

 

The Cosmopolitan - Terrace Suite

Video: The Cosmopolitan – Terrace Suite (YouTube – 49 sec.)

The Cosmopolitan Wraparound Terrace Suite

Video: The Cosmopolitan Wraparound Terrace Suite (YouTube – 1:03)

This Loyalty Traveler Dec 14 post shows the room view from a wraparound terrace suite on the 58th floor of the east tower.

Blog.Vegas.com has a gallery of photos of the lobby floors of the hotel and the central focal point of the hotel-casino Chandelier.

Related Posts:

Betting on Expedia.ca for a Vegas Suite Deal (Nov 20, 2010) [This post tells how I bought my flight to Las Vegas and an upgraded room at the Mandarin Oriental for $12.]

CityCenter Las Vegas – Art, Architecture and Space (Dec 16, 2010)

Hotel Detail – Aria Resort and Casino Las Vegas in HD (Dec 11, 2010)

Aria Resort Las Vegas – Pools, Spa and Dining (Dec 12, 2010)

Aria Resort Corner Suite and SkySuites (Dec 18, 2010) 

Aria Resort Las Vegas SkyVilla 19 (Dec 19, 2010)

Vdara Hotel, CityCenter Las Vegas (Dec 19, 2010)

Mandarin Oriental Las Vegas (Dec 23, 2010)

The Cosmopolitan of Las Vegas (Dec 21, 2010) (The Cosmopolitan is next to Vdara Hotel, but not part of CityCenter complex. The Cosmopolitan is a Marriott Autograph Collection Hotel.)

I am kind of excited the Giants are going to the World Series. Hopefully this will be a better show than 1989.

I booked a couple of nights in the city for the first two games this week. Rates shot up to over $600 per night after the win this evening, but I snagged the W San Francisco and InterContinental Mark Hopkins on points. Who you gonna call?

I left out mattress runs as a component of the Chicago Seminar DO hotel loyalty programs presentation.

Here is a tutorial on how I approach planning multiple one-night stays for the purposes of earning elite credit fast and maximizing promotions. Points and elite status come in handy at times.

Remember the Future

The end of 2010 is quickly approaching with only about ten weeks left for securing elite qualifying hotel stays for the 2011 membership year.

In the remaining 10 weeks of 2010 I need more Hyatt stays, more Priority Club stays, and more SPG stays. I want some cheap rooms since several of these hotel nights are more about elite status and promotion bonuses for 2011 hotel stay opportunities rather than a need for so many hotel rooms before the end of this year.

Elite Qualification is Based on a Calendar Year

Basically all the major hotel loyalty programs determine a member’s elite status level by the number of stays or nights completed in a calendar year. Most major hotel loyalty programs only count paid stays for elite status (Accor A-Club, Best Western Rewards, Carlson goldpoints plus, Hyatt Gold Passport, InterContinental Hotels Group Priority Club Rewards, Marriott Rewards, Starwood Preferred Guest and Wyndham Rewards). Hilton HHonors and Choice Privileges also count reward nights and stays for elite which adds an additional strategy component for hotel stay elite qualification. Priority Club counts almost all points earned for elite status (notable exception is points purchased for Points + Cash award stays.) HHonors also counts base points earned for elite status, but that is generally a more expensive route to elite status than qualifying by hotel stays.

Starwood Preferred Guest Stays Count Double and 4 stays to Gold promotions.

I find myself running short on SPG hotel stays in 2010 for Platinum elite requalification. Platinum elite members receive 500 welcome amenity points for most Starwood Hotel stays, except 250 points for aloft, element, and Four Points brand hotel stays.

Another major benefit of SPG elite is complimentary upgrades at full service hotels. In the past year my upgrades have varied from as basic as a top floor room with hotel lounge access, but the less desirable view at the Sheraton San Jose to a junior suite preferred view room at the Walt Disney World Dolphin on a Cash & Points rate to a full suite at Westin Market Street San Francisco on a $99 hotel rate.

 

Planning Mattress Runs

One of my main objectives is to get cheap room nights since I am planning to book more room nights than I really need for work or leisure. I must complete 5 stays to earn a SPG Rewarding Returns promotion bonus that will allow me to book a five night Category 5 hotel for 36,000 points rather than 48,000 points in 2011. That works out to essentially 2,400 bonus points per stay.

Five stays at Four Points, aloft, or element hotels during Stays Count Double will also fast-track requalification for SPG Platinum elite in 2010 to retain my Platinum elite membership through February 2012. SPG Platinum elite normally requires 25 stays in a calendar year.

I definitely prefer to stay at Westin, Sheraton and upper-upscale Starwood brands, but the option to get 10 stay credits with only 5 paid hotel nights for around $500 compared to needing around $1,500+ for 10 stays at Starwood upper-upscale brands is a major motivator to downscale my desired hotel market segment over the next two months.

Personally I give SPG Platinum elite a $1,000+ value over being SPG Gold as long as I spend 15 nights or more at Starwood Hotels in 2011. I estimate I will average around $100 per hotel night in added value by being SPG Platinum. Some complimentary room upgrades are $100 to $200 in added value like when booking a lowest rate room in the bottom category and getting a suite upgrade.

Not all Starwood Hotel stays will have that high an added-value due to Platinum elite. My two Starwood Hotel stays in Chicago this past week actually fell short of my $100 per night estimate since I only received Preferred view rooms with no substantial room category upgrade at either hotel, lounge access at the Sheraton Chicago ($15 value) and two free beers at the W Lakeshore Chicago ($12 value) + 500 bonus points at each hotel (1000 points = $29 purchase price value with current Starpoints promotion). That works out to about $28 added value per room night. Still, even at that rate I can expect to get about $420 in added value in 2011 with 15 room nights, in addition to the 12,000 points discount 5-night category 5 hotel reward stay.

I’ll certainly come out ahead more than $500 in 2011 by planning five stays at Four Points hotels before the end of 2010. 

Finding Cheap Rooms

Stays Count Double only applies to Aloft, Element and Four Points brands. There are no Aloft or Element Hotels in the San Francisco Bay Area so I will focus on finding low cost Four Points hotels.

In the San Francisco area I have five hotel choices within 150 miles of my home:

• Four Points San Francisco Airport
• Four Points San Francisco Bay Bridge
• Four Points San Rafael
• Four Points Pleasanton
• Four Points San Jose Downtown

Price factors:

Book refundable rooms whenever possible to lock in rate, but have the option of rebooking if rate drops before stay which is highly probable. 

Nightly Parking fees  – $20 per night San Jose Downtown impacts the $89 room rate; the other Four Points locations offer free parking.

Cost of gas to reach hotel – San Rafael is 250 miles roundtrip so $30 in gas compared to San Jose at 140 miles roundtrip or $16 in gas.

Location factor – accessing San Francisco Bay Bridge and San Rafael require driving in heavy traffic areas. San Jose Downtown is only hotel that has interesting sites within walking distance around hotel. Pleasanton is in the burbs. SFO is quite familiar and boring location.

Weekend vs. weekday – San Rafael is the only hotel here that consistently has lower weekday rates than weekend rates. Most of my stays will need to be on weekends to get the best price. Four Points Pleasanton is in a corporate business park area and weekday rates will be double the cost of weekend stays.

Holidays: Thanksgiving and Christmas holidays can result in really low rates and provide a good opportunity for end-of-year mattress runs. Four Points Pleasanton has $79 and $80 rates from November 19-28. Unfortunately this hotel is the most distant from the other hotels. Pleasanton is good for mattress runs by alternating nights between Hyatt Place Dublin ($62/night during Thanksgiving week) and Four Points Pleasanton to earn low-cost bonuses in two loyalty programs.

How to find low rates:

Travelocity allows me to check room rates over next 90 days. These rates will mirror the rates available on Starwood sites. And if the low rate is not showing up on the Starwood site, then I can file a Starwood Hotels Best Rate Guarantee (BRG) claim and receive 2,000 bonus points for the hotel stay. I filed a BRG today with SPG.

Four Points San Jose Downtown

Friday, Saturday and Sundays are inexpensive.

My initial thought is book San Jose on Friday night, go to another Four Points for Saturday night and get San Jose for Sunday night on the drive home. I can check in Sunday and go home and receive 2 stay credits for about $100. For about $300 I can receive 6 SPG elite stay credits over a single weekend.

San Francisco Airport tends to be cheap on Saturday nights. Here is the Travelocity calendar for Four Points SFO.

Four Points San Rafael drops to $99 per night every night in December 2010. Not bad for Marin County. Maybe even see George Lucas at the Starbucks.

Then there is always East Bay on the east side of the San Francisco-Oakland Bay Bridge. I rarely venture into those parts, but I have wanted to check out the Four Points San Francisco Bay Bridge for several years.

I think it is time for the Four Points Industrial Tour of northern California for SPG hotel loyalty enthusiasts and wannabes.

I have always liked the feel of platinum.

Steven Slater is all the rage this week for his grandiose departure from a JetBlue flight Monday. The Colbert Report aired a piece on the Steven Slater incident. Here is a link to Huffington Post with a hilarious 3-minute clip of Colbert’s Alpha Dog of the Week –  JetBlue flight attendant Steven Slater.

Congratulations to Graeme McDowell of Northern Ireland for his win at the 110th U.S. Open on June 20^th, 2010.

  

The entry fee to the famed Pebble Beach 17-mile Drive is just short of $10 per car. Remember to take advantage of the car fee rebate opportunity at any of the Pebble Beach Resort restaurants or bars at The Lodge or Spanish Bay. You get a food and beverage credit equal to the cost of the entry fee by presenting your gate payment receipt with the bill.

You can enter Pebble Beach for free on a bicycle at the Pacific Grove gate by Asilomar Beach.

Hyatt Gold Passport announced hotel award category changes effective June 4, 2010. The major change is the addition of a new high-end hotel category 6 award level at 22,000 points per night. There will be 20 hotels in the new category 6 award level.

Category shifts in the 411 hotel chain will see 89 hotels (21.7%) moving to a higher award category and 65 hotels (15.8%) moving to a lower level as of June 4. The majority of the hotels moving up are in the upper half of the award categories while the hotels moving down are primarily (70%) category 2 hotels (8,000 points per night) moving to category 1 (5,000 points per night).

The member friendly aspect of the impending changes is the transparency Hyatt Gold Passport has given by publishing all the category changes five weeks before the changes take effect. I slammed Hilton and Marriott earlier this year for announcing hotel category changes, but not giving members the complete changes in advance and a window of opportunity to book hotel awards before the hotels changed category levels.

Hyatt Gold Passport members have five weeks in which to book hotel awards before the changes take effect. Award night reservations booked before June 4 for stays after June 4 may be modified for up to 90 days (through September 2, 2010).

FAQ for Hyatt Gold Passport changes.

Hyatt Gold Passport Award Categories in High Definition

411 Hotels

• Category 1 = 97 hotels (23.6%)  5,000 points per night
• Category 2 = 147 hotels (35.8%) 8,000 points per night
• Category 3 = 66 hotels (16.1%) 12,000 points per night
• Category 4 = 50 hotels (12.2%) 15,000 points per night
• Category 5 = 31 hotels (7.5%) 18,000 points per night
• Category 6 = 20 hotels (4.9%) 22,000 points

Hyatt Gold Passport Hotels in new Category 6 award level as of June 4, 2010

1. Highlands Inn, a Hyatt Hotel (Carmel Highlands, California)
2. Hyatt Regency Huntington Beach Resort and Spa (Huntington Beach, California)
3. Park Hyatt Beaver Creek (Colorado)
4. Hyatt Key West (Florida)
5. Grand Hyatt Kauai Resort and Spa (Hawaii)
6. Hyatt Regency Maui (Hawaii)
7. Park Hyatt Chicago (Illinois)
8. Hyatt Regency Lake Tahoe (Nevada)
9. Grand Hyatt New York (New York)
10. Park Hyatt Washington (District of Columbia)
11. Hyatt Regency Aruba Resort and Casino (Aruba)
12. Hyatt Regency Paris – Madeleine (France)
13. Park Hyatt Paris Vendome (France)
14. Park Hyatt Milan (Italy)
15. Ararat Park Hyatt Moscow  (Russia)
16. Park Hyatt Zurich (Switzerland)
17. Hyatt Regency London The Churchill (United Kingdom)
18. Park Hyatt Sydney (Australia)
19. Grand Hyatt Hong Kong (China)
20. Park Hyatt Tokyo (Japan)

Category 1 Awards (97 hotels)

• 46 hotels dropped from category 2 to category 1
• 51 hotels unchanged

Category 2 Awards (147 hotels)

• 18 hotels increased category 1 to category 2
• 12 hotels decreased category 3 to category 2
• 117 hotels unchanged

Category 3 Awards (66 hotels)

• 2 hotels increased category 1 to category 3
• 12 hotels increased category 2 to category 3
• 6 hotels decreased category 4 to category 3
• 46 hotels unchanged

Category 4 Awards (50 hotels)

• 1 hotel increased category 2 to category 4
• 16 hotels increased category 3 to category 4
• 1 hotel decreased category 5 to category 4
• 32 hotels unchanged

Category 5 Awards (31 hotels)

• 3 hotels increased category 3 to category 5
• 17 hotels increased category 4 to category 5
• 11 hotels unchanged

Category 6 Awards

• 5 hotels increased category 4 to category 6
• 15 hotels increased category 5 to category 6

Virgin America has partnered with the boutique concept hotels of Morgans Hotel Group.  Earn 1,000 Elevate points per stay through the end of the year. Reservations must be booked through MorgansHotelGroup.com or by phone at 1-800.606.6090. Provide your Virgin America Elevate account number at check in or by calling in advance to the 800.606.6090 number to add your frequent flier number to your hotel reservation. Virgin America Promotion Link. 

There are not a lot of Morgans Hotels, but hotels like the Clift in San Francisco are popular for their city.  

Participating hotels are:  Ames in Boston, Sanderson in London, St Martins Lane in London, Mondrian in Los Angeles, Morgans in New York City, Royalton in New York City, Hudson in New York City, Clift in San Francisco, Delano in South Beach, Mondrian in South Beach, Shore Club in South Beach. 

The fine print for the promotion reveals a member can earn Elevate points for up to three rooms per stay as long as the Elevate member is a guest and pays for all three rooms. 3,000 points per stay is not a bad haul.

What is the value of 1,000 Elevate points?

I actually have not flown Virgin America yet. I had to look up the value of 1,000 points. My sample itinerary for San Francisco to New York JFK showed a roundtrip award ticket cost as low as 10,606 points + $5.00 in fees for April 13-20, 2010.

The truly surprising revelation was the published Virgin America fare came out to a total of $249.40 for this ticket. That is a relatively cheap cross country air fare for San Francisco – New York.

The value of 1,000 Elevate points in this example = $23.51. 

I don’t know if there are better award value ratios for Virgin America awards, but that ratio does not motivate me to jump on this offer. The points required for an award are tied to the published fare so it looks like there are limited leverage opportunities for Elevate points.

Loyalty Traveler Key Value: 2 Keys out of 5 Keys (Okay for a stay, but don’t go out of your way.)

This is an opportunity to earn some Elevate points if you have a hotel stay planned for one of the Morgans Hotel Group properties this year, however, it does not look like 1,000 Elevate points have all that much potential value as a hotel rate rebate.

Starwood Lurker, the Starwood Hotels/SPG corporate representative on FlyerTalk, posted a link yesterday for the initial 2009 Starwood Preferred Guest promotion called Night after Night, and located at SPG.com/nights.  This promotion will award a 500 points per night bonus beginning with hotel nights on January 7 through April 30, 2009.  An additional 5,000 points will be earned for every 10 nights stayed during the promotion period.

 

Promotion:  Night After Night 

SPG promo link

 

Registration is required. 

Registration link will go live on January 7, 2009 5:00pm Eastern time and SPG members have until March 31, 2009 to register. Promotion will apply retroactively for eligible hotel nights during promotion period.

 

Offer:  500 bonus points per night.  Earn an additional 5,000 bonus points for every 10 nights for a combined bonus of 1000 points per night.  In other words, 10 nights earns 10,000 points.

 

Promotion Dates: January 7 – April 30, 2009

 

Terms and Conditions link: http://www.spgpromos.com/nights/tc.cfm

 

Good features of this promotion are hotel stays do not need to be booked in advance to earn the bonus points and promotion registration will apply retroactively to eligible hotel nights.  Any hotel night from January 7 to April 30 qualifies.

 

114 nights = 110 nights + 4 nights = 110,000 points + 2,000 points = 112,000 bonus points possible from the Night After Night promotion.

 

There is no provision in the SPG Nights Terms and Conditions stating this promotion is not combinable with other offers which could justify the promotion statement “There will be no limits on bonus earnings during this period.”  Combinable promotions for the next few months would be a rewarding benefit for SPG members. 

Delta is printing miles as fast as the US Government is printing money. 

One of the often touted features of Hilton HHonors is the ability to earn both hotel points and airline miles for your hotel stays.  All other major hotel loyalty programs give either points or miles.  And choosing miles is generally a lower value proposition as a hotel loyalty program reward.

Hilton HHonors and Delta Airlines turn that notion around.  Hilton hotel brand stays will earn six times the Delta Airline Skymiles normally awarded for hotel stays through February 2009. Stays must be 2 nights or more to earn the 6x Delta miles bonus.

Register for this promotion here at HiltonHHonors.com/sixtimesthemiles

Not all Hilton brand properties are participating.  Check the Six Times the Miles participating hotels list.

 

Hilton HHonors My Way Double Dip Earning Style

Hilton HHonors members can select from three HHonors earning preferences for hotel stays:

1.    Points & Points

2.    Points and Fixed Miles*

3.    Points and Variable Miles*

*HHonors member must designate a preferred airline frequent flyer program among the HHonors partner airlines for mileage deposits.

HHonors Points and Points earners receive 15 HHonors points per $1US in hotel spending.  (Earn 10 points per dollar regular earning and an additional 5 points per dollar bonus.)  

HHonors members with a Points and Points preference will not qualify for the Delta promotion.  You can change your HHonors profile online to select one of the two Points & Miles Double Dip earning options to earn the Delta miles bonus.

HHonors Points and Fixed Miles (57 fixed miles partners)

Fixed Miles Earned Per Hotel Stay, normally = 500 miles awarded per hotel stay, except for Hampton Inn and Homewood Suites earn only 100 miles per hotel stay.

Delta 6x Bonus Miles Promotion = 3,000 miles per Hilton brand hotel stay, except Hampton Inn and Homewood Suites earn only 600 miles per hotel stay.

Don’t waste this promotion on Hampton Inn or Homewood Suites stays for only 600 miles. 

3,000 miles is quite an incentive to pay a little more to stay in another Hilton brand like Hilton Garden Inn, Doubletree, Conrad, or Hilton.  The miles can have $50 in future value on tickets using miles, however, the recent adoption of a three tier redemption rate for Delta Airline tickets using miles may prove to give Delta miles a lower than 2 cents/mile future value in many cases.

HHonors Points and Variable Miles (43 variable miles partners)

Delta 6x Bonus Miles Promotion = 6 miles earned per $1US in hotel spending.

Variable Miles Earned per Hotel Stay, normally = 1 mile earned per $1US in hotel spending.

For a Homewood Suites or Hampton Inn hotel stay with a total projected spending in excess of $100 you will earn more with a Variable Miles preference rather than Fixed Miles, (remember taxes and fees do not count for base hotel spending).  For all other brands you would need to spend more than $500 for your hotel stay to earn more with the Variable Miles earning option.

You have the option of changing your miles earning preference between hotel stays.

 

Hilton HHonors Check-In Desk, Hilton Singapore (2006)

Update Wednesday 10-22-08.     

On Monday, October 20, I contacted Fairmont Hotels marketing department asking for clarification of the 7-Day Winter Sale promotion and Free Night offer.  I questioned the telephone customer service reply I had received regarding the free night being credited back to the guest’s account at checkout since this detail was not mentioned anywhere in the promotion terms and conditions.

This morning I received an email from David Doucette, Executive Director of Internet Marketing for Fairmont Raffles Hotels International.  The website promotion pages have been updated to include the sentences:

“Advertised rates do not include price adjustment for the free night. Free night credit is applied at check-out.”

Loyalty Traveler gives this deal a big thumbs up in light of the explicit free night clarification now shown for this promotion. 

There are still 5 1/2 days to take advantage of the great rates being offered for this 7-Day Winter sale promotion. 

The offer was a good deal and now I consider it a great deal.  So keep in mind as you read through this post that my analysis of the promotion was not based on being refunded one night’s stay.  And that free night on top of the 10% to 20% nightly rate discount makes this sale up to a 40% discount on Fairmont Hotel rooms.  This is exactly the kind of hotel deal travelers need in this economy.

 

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Fairmont’s Free Night Winter Sale Offer Looks Good, But Looks May Be Deceiving

Fairmont Hotels 7-day Winter Sale One Free Night and 20% Off

Fairmont Hotels has a Winter Sale starting today and ending at 11:59pm EST, October 27.  So, if you count today, the Fairmont Winter Sale is actually an 8-day sale.

The Fairmont Winter Sale offers Discount Rates AND one free night for stays between November 3, 2008 and April 15, 2009.

While the prices may be good rates for Fairmont Hotels there is a highly restrictive condition for this sale:

Hotel booking is entirely prepaid and nonrefundable.  No cancellations.

Fairmont Hotels 7-Day Winter Sale Terms and Conditions

Nonrefundable reservations make me cringe; especially when the rate is for a luxury hotel booking –possibly for several thousand dollars.

I’ve wanted to write about nonrefundable reservations for the past week since before reading Joe Sharkey’s New York Times article and the Fairmont special offer opens the way.  The topic of nonrefundable hotel rooms has many facets from nonrefundable, nonchangeable prepaid hotel rates to using hotel loyalty points for a free room, but with a credit card room deposit than can turn into a very expensive no-show or last minute cancellation. 

The Fairmont Hotels 7-Day Winter Sale provides me with the opportunity to discuss the booking option of Nonrefundable, PrePaid Hotel Stays compared to other more flexible hotel booking options.

Is the Savings Benefit of a Nonrefundable Hotel Reservation Really Worth the Risk?

My bias is for maintaining the most flexibility I can arrange and afford when making hotel reservations.  I have to know there is almost no chance of me missing the stay before I go nonrefundable.

·          

A Free Night Looks Good, But Looks May Be Deceiving

The Fairmont Hotels homepage ads look great – “Spectacular Winter Sale”

Fairmont Hotels 7-Day Winter Sale advertisement

“Save up to 20% and Receive a Free Night”

The advertisements caught my attention and my Loyalty Traveler eye for a good value hotel deal. I decided to analyze the claim a little more closely.

Running the numbers through sample bookings reveals a very different result than I expected when booking the 7-Day Winter Sale rate.  The savings are not even close to being a free night in cost savings. The nonrefundable nature of this deal makes me wary. 

You will save money with the special rate, however, for properties I checked the overall savings with Winter Sale rates was at most 20% less than a non-promotional, regular booking search with consumer-friendly no-penalty cancellation policies of arrival day to 7 nights before hotel arrival, depending on the specific hotel. 

So much for the free night claim!  A free night leads this frequent guest to expect at least a 25% discount on the normal hotel rate for a 4-night stay (most hotels in the Winter Sale offer a 4^th night free).  Imagine a $100 per night regular hotel rate:

·         Night 1 = $100

·         Night 2 = $100

·         Night 3 = $100

·         Night 4 = free

To me, 4^th night free means I pay $300 when the regular room rate would have been $400 for a four night stay.  Saving $100 on a $400 hotel stay is a 25% savings.

In addition to the free night, if I am saving 20% on the regular hotel rate, to me, this means I get the $100 hotel rate at $80 per night. 

On a four night stay for a hotel normally $100 per night, a 20% savings on the normal rate and a free night makes me think I will get 4 nights for the price of 3 nights at $80 each.  Paying $240 for 4 nights on a regularly $100/night room  would be an overall 40% savings. 

Now, that would be a “Spectacular Winter Sale”.

Unfortunately, for the potential Fairmont guest, my three sample searches showed only a 20% overall savings at best on a 4-night stay using the Winter Sale rate compared to the regular Best Available rate.  I guess Fairmont has a different concept of 4^th night free than Loyalty Traveler.

·          

Loyalty Traveler searches for Fairmont Hotels 7-day Winter Sale

Rate searches conducted on 10-20-08 for a 4-night hotel stay January 16-20, 2009 at three Fairmont Hotels:

1.      San Jose Fairmont, San Jose California

2.      Scottsdale Fairmont, Scottsdale, Arizona

3.      Chateau Whistler, Whistler, British Columbia, Canada

Hotel rate search results show the Winter Sale overall hotel rate advertised as up to 20% off AND a free night is not based on the simple comparison of what any hotel guest booking the same dates through the default Best Available Rate on the Fairmont Hotels homepage would find. 

Fairmont San Jose, San Jose, California

Hotel Stay: Jan 16-20, 2009

lowest priced room, Fairmont King, Main Building, 450sq.ft.

 

$119.20 per night Winter Sale Rate – nonrefundable, no cancellations allowed; $536.48 for 4-night stay

$149 per night regular Best Available Rate (BAR) – reservation may be canceled up to 6pm hotel time, January 16, 2009.

The hotel special offer saves approximately $33 per night after taxes.  A guest booking a five-night stay at the Fairmont San Jose using the Winter Sale rate will pay the same as four nights booked through regular reservations.  I call this a 5^th night free offer.

Fairmont Scottsdale, Scottsdale, Arizona 

Hotel Stay: Jan 16-20, 2009

Upper Mid-range room, Casita Suite, Premium King, 850sq.ft.

 

 Fairmont Scottsdale Princess, Scottsdale, Arizona

 

Fairmont Scottsdale

$688.50 per night Winter Sale Rate – nonrefundable, no cancellations allowed.

4-night total rate with taxes = $2,754 + tax = $3,082.28 prepaid nonrefundable deposit

$765 per night or $3,060 for 4-night stay, booking regular website Best Available Rate reservation

Fairmont’s Winter Sale saves $306 on a $3,060 regular rate for the four night hotel stay at the Fairmont Scottsdale.  The real value of the Winter Sale in this hotel sample is just a 10% savings on a four night luxury hotel stay and comes up far short of the value expected in the advertisement for a discount AND a free night offer in the Fairmont Winter Sale.

Fairmont Scottsdale Princess, main pool

Fairmont Chateau Whistler, Whistler, British Columbia, Canada (ski resort)

Mid-Range room, Deluxe Valley View King

$479 per night regular reservations, $2,203.40CAD payment due 3 days to arrival Jan 13, 2009

$383.20 per night Winter Sale, $1,762.72CAD nonrefundable prepaid October 20, 2008

Winter Sale special rate saves $440.68 on a 4-night stay.

440.68/2203.40 = 20% total savings on 4-night stay.  The Winter Sale basically gives a 5^th night free meaning 5 nights at the Winter Sale rate = 4 nights at Best Available non-promotional rate.

·          

This 7-Day Winter Sale offers a Fairmont Hotel discount for the next six months of travel.

The risk of losing a couple of thousand dollars if you need to cancel your trip to save 10 to 20% on hotel rates combined with the fact that Loyalty Traveler finds the actual savings is of significantly lower value than I would have expected with the advertised offer of a free night AND up to 20% savings makes me wary to suggest this offer to travelers. 

You should think twice before making the Winter Sale hotel commitment for any trip with much possibility of being cancelled.  Remember winter’s wicked weather.  Hotel flexible plans are often worth the extra cost.

Update to this post before actually posting on Loyalty Traveler blog 10-20-08.

Just off the phone with Fairmont Hotels to ask why they advertise up to 20% off AND a free night when my searches show only 20% off as the best offer I find. 

Where is the free night deal of the Winter Sale?

Fairmont Hotels telephone agent comes back after having me on hold for several minutes to tell me the hotel rate for the 4^th night on the four night stay is refunded at check-out.

That is a great deal if true!  Why is it not written in the promotion terms?

As a consumer the refund detail is probably the most important detail I need to know next to the rate being prepaid and nonrefundable.

I would want the refund term in writing before committing to this deal.  Fairmont Hotels needs to update the 7-Day Winter Sale Terms and Conditions if this is truly how the promotion is scheduled to operate. 

Why keep the consumer in the dark about how the free night component of this hotel offer is implemented?

If the prepaid free night is refunded on check-out, then the Fairmont Winter Sale is a great deal.  Too bad the Winter Sale promotion details are not clear on this aspect of how the Free Night offer works.