A new Chinese 6% VAT tax on hotel stays went into effect today. Hilton’s website now reflects the VAT, as it should. However their award searches are showing not just the number of points for the award but also this new VAT based on the payment Hilton HHonors makes to the hotel.
This is an error, of course, since Hilton HHonors awards include tax. But it tells us a lot of the economics of the program.