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The Real Cost of an Award in a Fully Booked Hotel
A couple of weeks ago I wrote about my awesome score of an award room at the Hyatt on Main in Green Bay. This hotel has been sold out for months due to the Packers game, but for some reason a few rooms opened up for a brief moment including one that I could book on points.
The cash rate for the night of my stay was $356.90 including tax, but since the property is a category 1, it only cost me 5,000 points! It is one of my best value Hyatt redemptions for sure, but how much does Hyatt actually pay the hotel for my room?
The Actual Bill
Normally guests don’t ever get to see that information, however I was sent the actual bill by mistake. Here is what it looks like:
I have read various reports over the years that hotels have a fixed compensation schedule (i.e. Hyatt pays them the same for every award stay), except when the hotel is full or close to full. This makes sense since they could actually have sold my room for quite a lot of money. When they are not full, the room is worth a lot less.
In this case the hotel was sold out, so Hyatt ended up paying quite a lot for my stay. The room charge was $210.34 with an additional $31.55 in taxes. Based on what I have been told in the past, that amount is based on the average room rate for the night. It is a nice hotel, but I am not sure it is worth $200-$300 per night. Sorry Hyatt!
I always love to see behind the scenes stuff like this. While I knew that my award redemption was valuable, I wasn’t sure just how valuable it was in terms of real cash outlay. Hyatt doesn’t make a living by paying almost 5 cents per point on redemptions, but that is a side effect of offering all base level rooms for points redemptions. This time I came out ahead, although I am sure there have been other times where I overpaid!
Have you ever seen this information for Hyatt or another loyalty program? Let me know in the comments!
Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.