Quote:
Originally Posted by chillrob
But they raise the price for everyone, not just the people using the credit card. So the people not using the credit cards, and not getting any cash back at all, are still paying the higher prices, so they're the suckers here, right?
It's like a Prisoners' Dilemma of sorts.
You do understand that in the Prisoners' Dilemma, both prisoners are the suckers and it's the prosecutor laughing all the way to the bank?
You are exactly right in one narrow aspect - we all pay higher prices so you can make the best of a bad situation by using the gougingest credit cards (Amex, Discover). But you're missing the point that you're not getting a 5% "discount" on anything. You're getting 5% off a price that has been jacked up.
People look at resort fees like some kind of addition to the actual room cost. It's not. The actual room cost is the advertised price plus the resort fee plus the taxes. Sure, there are ways to "avoid" the resort fees. They involve paying or bartering in different ways - and the credit card is just a different way of paying them. Gambling to earn elite status is another form of payment. (And opening a bunch of credit cards lowers your credit score and defers the payment until you apply for a loan.)
I'm not saying that one way is inferior or superior. If you're gonna drop money at the craps table, you might as well get credit for it. If you're gonna use a credit card, make sure the rewards are something you use (e.g., I dropped an airline card after realizing I hated the airline). If you're gonna stay at an unpopular hotel that doesn't play games with their costs, great. But you're not sticking it to the man in any case.