vpFREE2 Forums

LV Hilton Comps

In a message dated 1/17/2003 2:12:23 PM Pacific Standard Time,
cmayhem@aol.com writes:

> Based on today's comments, I've changed the comp % to "0,33% +"
> which is the same I'm using for the other Park Place properties.
>
>
> vpFREE Administrator
>
>
How does one arrive at the comp percent figure? Is it a seat of the
pants anecdotal kind of thing or is there a formula behind it?

Add up the value of all the comps you received during your trip, including
rooms (your host can tell you how much the comp rate is on rooms), food,
beverages, show tickets, etc. Then divide that figure by your total coin-in
for the trip. If you don't know your coin-in, take all the points you've
earned during the trip and multiply by 18--that gives your coin-in.

Personally, I had one three day trip in a $475/night suite, plus had $300 in
food/beverage. Total comp amount was therefore $1725, my coin-in was exactly
$270,000. My host told me for that particular trip I was "slightly
overcomped" (the only time I've been told that!). For that trip, my comp rate
was .64%, if you allow for the slight overcomping, say it "should" have been
.50-.60%. This has been my experience on many other trips to the LVH. .33%
seems very low, but my host likes me!

Brian

[Non-text portions of this message have been removed]

In light of Brian's report, it sounds like my post indirectly
suggested a comp rate excluding the room comp value may have been
somewhat misleading. I'll certainly defer to him based on his
experience that the room comp is factored in determining availability
of food and beverage comps.

My own experience over New Years: I had a little over $90K coin-in
over a three-night stay and $390 of room charges were comped. (We
didn't anticipate a full comp on the room charges - it was New Years
and we decided to indulge ourselves, largely expecting it to be on our
own dime. The host remarked on the large balance, but then very
willingly extended the full comp -- somewhat surprising on basically a
break-even visit before consideration of cashback!) (Maybe "Part II
of my trip report will see its telling in bits and pieces? :slight_smile:

Now, let me engage in a bit of analysis:

This translates to a .43 comp rate for food and beverage, although
this was exceedingly generous under the circumstances and I would
expect that something closer to .35 would better fit expectations.

I don't have an exact figure for the value of the room comp. This was
a standard room. Mid-week most periods it can be had for under
$60/night. But, of course, this was the three nights including NY Eve
(Dec. 29-31) and I suspect that a value of $300 for the three nights
would be more appropriate, adding .33 to the comp rate, so in round
numbers (allowing a reduction in the F/B rate) let's say .7 was
appropriate.

This would would be in keeping with Brian's actual comp in his
reported trip, although he suggests that based upon the "slightly
overcomped" remark that a much more conservative rate of .5-.6% may be
appropriate (this relatively low rate including room is a source for
the hesitation reported below). Certainly it would suggest that a
reduction in the previously reported 1.11% comp rate was appropriate
and the remaining question is whether it should be reported with or
without the value of the room comp.

Lacking further first-hand infomation, I'll defer to Brian's judgement
that the comp rate should be room inclusive. If a total rate of .7 is
used, this would be consistent with lower level treatment, although a
somewhat higher allowance for food comps would seem likely.
Indications are that $60K over three nights will qualify for C2 status
(room and coffee shop for two). I generally think an allowance of
$80/night for two people for food and beverage is reasonable (roughly
$8 bkfst, $12 lunch, $20 dinner). A typical average room rate over a
three-night stay of $60 isn't too far off the mark (provided no large
conventions are booked). That's a .4 comp rate on F/B and .3 for room.

I can live with .7.

My one hesitation is that at this level (C2), I suspect that the F/B
comp rate of .4% is somewhat of a constant irregardless of
"seasonality" (referring to actual room rates for the period of the
stay, even if substantially higher due to large convention occupancy
or holidays. I don't expect that F/B allowance would be reduced if a
comp were provided during such a period, although it may well be the
case that room availability at this rating may be quite limited. For
this reason, I have some sense that quoting a F/B rate of .35-.4% may
provide a better guide for the typical member here staying at the
property. But this hesitation is not based on hard data. (At higher
comp levels, suite offerings for C4/C5, his below .2% F/B comp rate
suggests that accomodations are a significant factor in F/B allowance.)

Tom, cutting through all this, maybe hedging your bets and using a RFB
comp rate of .5-.7 would be appropriate until further data comes
along. (This brings up a important point: Your comp rates should be
clear in indicating if they are F/B or RFB.)

- Harry

BJayGold wrote:

···

Personally, I had one three day trip in a $475/night suite, plus had
$300 in food/beverage. Total comp amount was therefore $1725, my
coin-in was exactly $270,000. My host told me for that particular
trip I was "slightly overcomped" (the only time I've been told
that!). For that trip, my comp rate was .64%, if you allow for the
slight overcomping, say it "should" have been .50-.60%. This has been
my experience on many other trips to the LVH. .33% seems very low,
but my host likes me!

I perpetually screw up the LVH "C" ratings. My reference to C2 should
be C4.

Based upon diverse information reports, here is my understand of
ratings and benefits at LVH:

C5: Room comp
C4: Room/coffee shop comps (this does include the Margarita Grill, a
personal fav!)
C3: Upgrades you to gourmet
C2: Upgrades you to suite
C1: Gets you all those nice little amenities and considerations that
make you feel like a pampered high-roller (with less than a $1mm trip
handle requirement :).

Just as a footnote, these ratings designate your status coming into
the property. If you've given them higher play than your trip average
for the last 5 trips, always ask to have your room charges reviewed
for additional consideration!)

- Harry

In a message dated 1/17/2003 2:12:23 PM Pacific Standard Time,

Add up the value of all the comps you received during your trip,

including

rooms (your host can tell you how much the comp rate is on rooms),

food,

beverages, show tickets, etc. Then divide that figure by your total

coin-in

for the trip

Thanks. This explananation makes sense. It's a useful figure,
though I imagine there is a certain fudge factor involved in
assigning dollar values or if comps are not maximized versus coin in
per trip.

···

--- In vpFREE@yahoogroups.com, BJayGold@a... wrote: