Couple of hours ago I was looking at various hotel options for tonight in Nadi (Fiji). I was still in Auckland, but had to make a decision where to stay for the first night.
I knew that I was going to stay at the Hilton for a night during my week-long stay on the island. The paid rates were in the $270 to $300 range including taxes (418 FJD ++). I still had six free night certificates left from a recent promo, but it would have been a waste to use at Hilton Fiji when their point rates starts just at 35K per night, that is low for a Hilton.
Normally these premium room & points and money rewards don’t make too much sense. I was surprised, however, that the rate for Hilton Fiji was 17500 HH + 110 FJD per night. I value HH maybe around half of a cent and 110 FJD is $63. My “cost” thus would be $150. Of course you would need to take into account the number of points and BD miles that I would have earned by paying the $300 rate. But, I consider this to be a fair deal.
I have a hunch what is happening here. When hotel chains calculate the category for a hotel it is normally based on the ADR (average daily rate). Hilton Fiji is probably dumping a lot of inventory through consolidators and package gravel agencies to bring the ADR far lower than the rate displayed on Hilton.com.