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Fifth night free – economic behind it
Can you provide any insight as to why chains provide 5th night free when using points?
I can see why hotels do it when paying cash, since its a promotions. But on points, its technically already a pretty reduced rate they are earning, so why provide an extra incentive?
I feel like hotels make majority of their profits off incidentals like food/beverage. So my guess is it is a law of averages… the probability of giving someone a fifth night free and them spending more at the restaurant or bar or room service far outweighs the cost of the actual fifth night