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This might play into one of those corporate reimbursement principal agent problems where the employee gets to keep the points but doesn't pay the fare so they w
by hkmurakami 9y ago
This might play into one of those corporate reimbursement principal agent problems where the employee gets to keep the points but doesn't pay the fare so they will choose options with the best bonus points.
- xapata 9y agoWhich is largely the reason hotels cost as much as they do.
- ghaff 9y agoCitation needed. Lots of hotels with no or very limited loyalty programs are similar in pricing to the big chains. You could equally argue that loyalty programs help fill rooms and improve yields.
- hkmurakami 9y agofwiw most large companies get steep discounts at said major hotel chains.
- xapata 9y agoI'll cite my personal experience. I've paid hundreds of dollars for a hotel night when on an expense account. As a tourist in the same city, I'll pay much less. The loyalty programs are irrelevant for this issue. There's a bit of cartel behavior going on. So long as no one drops price dramatically, all the "business" hotels can stay roughly equal. The "cereal wars" of the late 1990s show what can happen when an industry competes on price -- demand stays constant and revenues drop. Maybe hotels are different, but I'd suspect that's only for tourism. Business travel is likely inelastic with respect to hotel costs.