FlyerTalk Forums - View Single Post - Business 101
Thread: Business 101
View Single Post
Old Feb 4, 2010 | 3:47 am
  #1  
900at
 
Join Date: Nov 2004
Location: Philadelphia
Programs: AA EP; UA 2P; Marriott Plat, Hilton Diamond, Starwood Plat, Hertz PC
Posts: 194
Business 101

OK, I've come to learn. I'm not a business major and don't play one on TV. Had an interesting interaction yesterday.

I'm starting a project in a new city. Client has suggested I stay at a competitors hotel which has a rate of $x per night. Hotel offers suite like rooms with the massive free breakfast (omlets cooked to order etc).

I check and there is a Residence Inn that would be a good fit for me so I head over there to chat with the folks about their rate. Here's where I get confused.

I explain to them I expect to be here 6 - 12 months checking in on Sunday and out on Thursday (4 nights each week). The counter person (there is no one in sales at that hotel) tells me that RI has a corp rate for my company and the client company. The rate is $x + $9 per night. Now $9 isn't much to me but I'm sure my client would object.

She also tells me that they have a corp rate for for my company and the client company of $x - $26 if I stay 5 nights. So, lets get this straight. If I stay 4 nights a week the rate is $9 more than I want to spend. If I stay 5 consecutive nights the rate is $26 less per night than my $x rate.

I tell her because of my schedule, it has to be 4 nights a week. She then tells me she cannot lower the rate below $x +$9 for the 4 night stay.

Here's where you can help. I'm offering to give them 100 - 150 room nights at a rate that is $26 above the 5 night rate and they tell me Marriott will not let them lower the 4 night rate. I've always thought Bill was a good businessman. I still believe he is. How can this possibly make sense.

Perhaps there is something in the business world that I just don't know so I'm ready to learn. If there is any reason this makes sense please let me know.
900at is offline