Is it any wonder that Amtrak is considered a badly run business? The trip from CBS to DEN for two in a bedroom would run over $2800 at top bucket. If each leg were sold separately, the cost, and revenue to Amtrak, would be even more. Yet Amtrak, through AGR, offers that same trip for 20,000 points. AGR pays Amtrak about $150 for those 20,000 points. So, assuming those last rooms could have been sold to revenue passengers (in the summer, a very good assumption), Amtrak takes a loss of over $2600 for that deal.
Most frequent traveller programs limit award inventory to prevent large revenue losses from award travel. They don't simply give away their highest yielding products without some control on the cost. Amtrak, however, has virtually no control on award travel. One can book the last bedroom on the train six months in advance, pay for the trip with base-level points, and block sale of that room to a revenue passenger willing to pay real, hard cash. That's great for us, the AGR customers, but it is an incredibly bad way to conduct business. It's the way a company would conduct business if they simply had no cares about the bottom line and no risk of failure. As is they know that, no matter how badly the business is run, they have a rich uncle to bail them out. Oh, now it does make sense.
Next time Amtrak claims they run a tight, cost-conscious business, and deserve more general tax support, think about them giving away $2800 worth of travel for $150.