> ultimately the "miles"
> they sell are for the very
> same "seats"
No figure to support the following claim, but I'd expect 50% of miles to expire without being redeemed.
But also: I recently stayed at the Conrad Rangali "for free" having accumulated enough points. Food, a small upgrade, transfer to the island, etc conspired to add an extra $5,000 of spend on a five night stay. Don't underestimate the upsell!
But in an urban setting? What is there to spend money on at the hotel that isn't better off-property? Especially at Hilton properties where anyone with enough points for a redemption at least has gold status and gets free breakfast and likely lounge access.
112 nights in Hilton properties last year, about 20% redeemed. I eat at the hotel restaurants a lot because it's convenient (and occasionally good — Trianon Palace probably having the best Hilton restaurant), I generally get them to book my airport transport because it's convenient, I often raid the minbar for water because it's convenient, and I usually have room service at least once.
But also: I recently stayed at the Conrad Rangali "for free" having accumulated enough points. Food, a small upgrade, transfer to the island, etc conspired to add an extra $5,000 of spend on a five night stay. Don't underestimate the upsell!