Originally Posted by
Big Mo
I've seen very little evidence that Marriott is reducing rates (weekend or otherwise) in response to the slumping economy.
For example, I spent the past week at 2 different Marriott properties. Occupancy was very low at both properties, but rates were consistent with the highest prices in previous years: about $400/night at a top f/s property and about $170/night for a studio at an airport Residence Inn.
Marriott is trying to cost-cut while keeping published rates high and dumping excess inventory thru the likes of Priceline. The result is that the gap between Marriott-branded properties' rates listed on Marriott websites and what rooms come up for through "opaque" booking engines is the largest I've ever seen the gap when it comes to Marriott-branded properties.
The thinking is supposedly that it's more profitable to shut down whole floors and/or keep published rates high than to lower rates and go for property-wide increased occupancy at lower rates. With regard to this strategy, my thinking has been that such a strategy will fail miserably for most hotel owners (of newer properties) in an economic environment such as this. Time will tell.