This is the question that gets asked often, when Hilton HHonors and SPG (Starwood Preferred Guest) launch their new promotions. Why some properties have decided not to participate?
The answer is very simple. These two programs require properties to pay extra to participate to chainwide promotions that are not funded by the program itself.
All hotel loyalty programs require properties to pay a certain percentage of the guest folio to the loyalty program that administers and issues the points for the guests and later reimburses the properties for award stays. Starwood properties pay a base compensation of 5% of the guest folio to SPG.
So, if the properties are already very busy and rates high, there is very little advantage for them to participate to these promotions that main goal is to bring in extra business, but would end up costing them just more money.
Not sure, how Hyatt, Marriott and InterContinental Hotel Group handle their promotions, as all the properties are usually participating,
With Hilton and Starwood you always have to pay attention to the list of properties (usually 10% to 15% of the hotel portfolio) that have decided to not participate.