Luxurious Lodge Factors Farms: A Class Of Accommodations Value Being Sincere About

Factors can get you stays at some fairly unimaginable lodges, and I don’t wish to in any method diminish that. There are many properties within the Hilton Honors, Marriott Bonvoy, and World of Hyatt portfolios (amongst others), which might be superior to remain at.

Nonetheless, I believe there’s an fascinating distinction that’s price making, whereby a subset of luxurious factors lodges are what I wish to name “factors farms.” I’ve used this time period a couple of instances in passing, and I determine it’s price dedicating a put up to this. Let me clarify…

Loads of lodges use loyalty applications as a crutch

Arguably some of the sensible improvements we’ve seen within the journey trade (notably with airways, but in addition with lodges) is loyalty applications.

What began as a value middle and an afterthought has changed into an enormous revenue middle and obsession for an infinite variety of vacationers, which drives an enormous quantity of enterprise. At this level, arguably the key lodge teams have primarily grow to be on-line journey companies for an infinite variety of properties, with their solely “secret weapon” being their loyalty applications.

However right here’s the factor… a whole lot of lodge teams (and notably, lodge homeowners) understand how irrationally loyal persons are to sure applications, and consequently, they’ll use it as an excuse to cost extra and supply much less.

Let me clarify it on this method — 4 Season doesn’t have a loyalty program, so the corporate has to win enterprise with each keep, and show to clients why they need to maintain in search of out 4 Seasons properties. If somebody has a foul 4 Seasons expertise, odds are that they’ll keep elsewhere, which can be why 4 Seasons’ service restoration is so good, when issues do go incorrect.

Distinction that to so many luxurious Marriott Bonvoy properties (simply for instance), the place it appears like they take their clients with no consideration, and even when somebody has a foul keep, they know that they’ll come again for extra.

So lodges are completely advantageous charging astronomical charges, offering mediocre service, nickel-and-diming at each alternative, and many others., as a result of they know persons are hooked, and are on the hamster wheel. For that matter, you see very restricted model requirements at many of the main world lodge teams these days, as a result of many main lodge teams view the lodge homeowners as their clients, quite than the precise company.

Let me be abundantly clear — there are many unimaginable factors lodges that go above and past to maintain clients. However there are additionally tons that don’t.

What makes a lodge a factors farm, as I see it

All of that brings us to “factors farms,” a time period I’ll outline fairly merely. Factors farms are lodges that couldn’t cost anyplace near the money charges they do in the event that they weren’t related to a lodge group that had a serious loyalty program with a factors foreign money. They’re lodges the place a serious a part of the enterprise mannequin includes folks cashing in factors, and so they use that to chop corners.

Basically, math works just a little in another way at these properties. These are properties the place the revealed money fee under no circumstances displays actuality, or what most individuals are paying:

• That’s as a result of a big proportion of company are paying with factors, so that they solely need to promote a a lot smaller proportion of their room stock for money, than the charges counsel
• These are properties the place the service stage simply doesn’t replicate the charges being charged, however as an alternative, these truly paying money are being ripped off
• Even many individuals paying money to remain are doing so irrationally; they’ll pay double the speed of a comparable lodge, all to allow them to get their “free” $20 breakfast, and requalify for standing, to allow them to have the pleasure of doing it yet again (hey, I’m as responsible of this as anybody!)

Let me give an instance, as I simply bought again from Deer Valley, Utah. A few years in the past I stayed on the St. Regis Deer Valley, which might be the very best priced lodge within the space. I’m not saying it’s not a pleasant property, however the $2,000+ peak season pricing is absurd, and has no foundation in actuality.

It’s a mass market lodge with little character and okay service. Once I final stayed on the lodge, I had a reasonably destructive expertise, and vowed to not keep once more, as I stayed in three rooms over two days, resulting from points (the fireside was damaged within the first room, and there was no scorching water within the second room).

By the point I bought moved to my third room, they despatched me an apology — an $11.88 bottle of glowing wine that I had no real interest in consuming. To me that’s peak “factors farm” vibes. Even when somebody is redeeming factors, you’ll be able to’t cost $2,000+ per night time (or truly $4,000+ per night time over the times of our stays) after which have such lackluster service.

That simply wouldn’t fly at a property that doesn’t rely so closely on factors company, that’s staffed by hospitality professionals. If one thing comparable occurred at a 4 Seasons property, this may be dealt with utterly in another way, and I wager no less than an evening would’ve been comped. However that’s additionally precisely what makes this a factors farm — the lodge doesn’t actually care, as a result of they know they will get away with it.

I vowed to not keep on the St. Regis once more. So throughout our present ski journey we determined to additionally spend a couple of nights at Goldener Hirsch, an Auberge Assortment Resort. Auberge Resorts doesn’t have a factors program, and we paid money. For our nights, the speed was lower than half of what the St. Regis was charging, nevertheless it was higher in actually each method — design, service, ambiance, and many others.

So how can the St. Regis get away with charging greater than double as a lot as Goldener Hirsch over our dates? Nicely, as a result of it’s a factors farm. When a overwhelming majority of persons are reserving the lodge with factors and/or as a result of they assume it’s price spending $2,000+ per night time to allow them to get their “free” elite breakfast credit score, it’s not a severe try at providing a aggressive product.

Let me be clear — I’m not saying folks shouldn’t be staying at “factors farms” if redeeming factors. What I’m saying is that they need to set their expectations accordingly, and shouldn’t be disenchanted if the lodge is charging $2,000+ per night time with out wonderful service, as a result of the value doesn’t truly replicate something near the common every day fee being paid.

Nearly consider it like an American Airways and Qatar Airways enterprise class ticket being priced comparably — the experiences are worlds aside, and except for some outdoors incentive, no rational client would select the previous over the latter.

Not all factors lodges are factors farms, in fact

My intent with this put up isn’t to rag on factors lodges. Fairly on the contrary, it’s to acknowledge factors lodges that don’t use their loyalty program as a crutch, and nonetheless put within the effort. A luxurious factors lodge that’s not a factors farm is one the place folks persistently gladly pay the going fee, with no loyalty program being a major consideration.

Simply to provide some examples, the Park Hyatt Sydney isn’t a factors farm. It’s some of the iconic metropolis lodges on the market, in case you ask me, and the vibe and repair replicate that. The identical is true of the Park Hyatt Tokyo, and even the Park Hyatt Milan (neither of that are probably prime 5 properties of their respective cities these days, however they’re additionally priced a bit decrease, and ship a superb expertise).

This may sound random, however let me give a Marriott instance — Lodge Maria Cristina in San Sebastian, Spain, is a Marriott Luxurious Assortment property, and it’s one of many prime locations to remain there. Folks pay the excessive charges to remain there, as a result of it’s a historic property, with good service, good rooms, and a central location. The identical is true of the St. Regis Longboat Key, because it’s a novel resort within the space, and for a US property, it’s very properly carried out.

As a Hilton instance, the Waldorf Astoria Maldives and Waldorf Astoria Los Cabos Pedregal are additionally prime notch lodges that individuals e book with out loyalty being a consideration.

There are additionally some lodges which might be kind of factors farms, however not likely. I believe the right instance is Alila Ventana Large Sur. It’s an important property and an outstanding use of factors — I completely love staying there, and I believe they fight actually arduous. However there’s no foundation for the lodge sometimes having increased charges than close by Put up Ranch Inn. The one cause charges are increased is due to the proportion of rooms which might be booked with factors, which implies that the Alila property has rather a lot fewer rooms to promote with money.

Remember the fact that factors lodges have an incentive to inflate their charges, assuming they’ve a excessive proportion of company redeeming factors. That’s as a result of if a lodge reaches a sure occupancy stage, the reimbursement for award stays relies on the common every day fee. Typically the upper the common fee of rooms booked with money (even when it’s solely a small proportion of rooms), the upper the reimbursement for these redeeming factors.

That is an excessive instance, but when a lodge is 100% full, and 60% of persons are redeeming factors and 40% are paying money, the reimbursement fee relies on the common every day fee being charged to these 40% of company.

Backside line

Lodge factors can unlock stays at some unimaginable luxurious lodges. I are inclined to put these properties into two camps, although. As I view it, you could have luxurious lodges which might be well-liked no matter their loyalty program affiliation, after which you could have luxurious lodges which might be well-liked particularly due to the power to redeem factors there.

There’s nothing incorrect with the latter idea, so long as we’re sensible about what it’s, and why it exists. I say this as a result of generally folks will keep at a “factors farm” that’s charging $2,000 per night time, after which they’re shocked on the poor stage of service, lack of service restoration, low cost facilities, poor design, and many others.

That’s largely as a result of the sticker worth is only a theoretical retail worth {that a} majority of company aren’t paying, as a result of loyalty program members make up such a giant a part of the visitor profile.

There are additionally plenty of nice lodges that factors may be redeemed at that aren’t factors farms, that are well-liked even amongst these paying money, with a better stage of service, and many others. Not everybody will agree as to which properties match within the factors farm vs. non-points farm class, however there’s positively a distinction I’ve seen, as I keep at totally different factors properties through the years.

Anybody else discover this divide in terms of factors lodges?