tegWhy is it that a property seems to hold the same Category level all year long, particularly those that are seasonal destinations. I can see the Category being higher during high season similar to the room rates but why not adjust for the low season? A good example is the Courtyard Hyannis on Cape Cod. It is a Category 8. It is about 20 miles from my home and my wife asked me to use points for a winter weekend getaway with the kids to use the indoor pool, etc. but I will usually just pay cash at about $100 a night rather than using 40,000 a night.
HHmmmm, Hilton does dynamic redemption pricing and according to HH friends I have, this only serves to make pathetic HH redemption values worse. British Airways also has a version for its Avios scheme which finds little popularity.
Hotel categories are based on redemption activity, not some perception of quality. Hence you can have a Cat 8 Fairfield Inn in Manhatten but a cat 5 JW in Houston (or even a cat 2 JW in Ankara). Hotels go up and down the categories in response to redemption activity, hence we saw Moscow Marriotts move up the categories in response to increasing local cash rates a few years ago which led to more people choosing to redeem rather than pay money, but now see those same hotels sinking as the saggy Rouble makes cash rates a better value option and poorer relations between Russia and the West led to reducing Moscow tourism, both leading to reduced redemption activity there.
My take on this, I don't redeem below 1UScent per point and always redeem above 1.5UScent per point. At $100/nt I'd pay cash. I can't see dynamic redemption pricing helping us, somehow...
I have to agree brightlybob. As you know I use the same criteria as you with points. Pay cash at the lesser cost hotels and earn points; redeem them at higher price hotels where the redemption value is much, much higher.
The cynic in me says that a dynamic category system is likely to end up with the categories never going down during slack times, but increasing for busy times/events.
And in that circumstance jerryl I'd pay cash at $100 and points at $300.
Following the HH example I would bet dynamic Cat6 would NOT be 15,000 to 30,000 but instead 30,000 to 50,000 points.
Ask any HH loyalist and they'll tell you they preferred the scheme before dynamic redemption pricing which very seldom produces any improvement on the old non-dynamic program.
I'm in the same boat. I travel for government work and use the per diem rates. It would be great if Marriott followed this for category and redemption. I understand a NYC Fairfield would be in a different category than the Marquis, but category 8 for any Fairfield is a bit much.
What sounds like a potentially good idea would end up costing us more points at more places more of the time. It would be nice to think that seasonal destinations would become cheaper to redeem during the off season, but what would more likely happen is that many places would effectively add a "points surcharge" in the name of dynamic pricing.
I'd rather keep it they way it is. I don't want to see Marriott do what Delta Airlines is doing. These type of changes are never made to benefit the consumer.