As a practice, SIA usually puts its cabin crew in 5 star hotels when they stopped overseas.
When deciding the crew's LMA, the current union and management has come to an agreement to use the hotel menu prices.
Naturally, the menu prices in a 5 star hotel are higher than lets say a 4 or 3 or 2 star hotel.
However, due to slower growth and lower profits, the airline has downgraded some of the crew hotels. As a consequence, the LMA has also been affected. This action has resulted in lower LMA for the crew but a huge savings for SIA.
The airline has every right to downgrade the crew hotel. It's better for the crew to stay in less than 5 star hotels than not to lose their jobs. However, the crew aren't happy.
Has the crew been offered an alternative? My answer is Yes!
In the union election campaign 2010 the incumbent party (Heart) promised to have look at the "per diem" payment instead of the LMA being tied to hotel menu prices.
However, the crew went against the incumbent's idea of the per diem payment and subsequently voted them out.
Today the crew blamed everybody except themselves for their lower take-home pay. Interested ? .. then read this article.