FlyerTalk Forums - View Single Post - who is paying rack rates at these places?
Old Jun 8, 2012 | 4:43 pm
  #2  
nba1017
 
Join Date: Jul 2009
Posts: 983
Originally Posted by ente_09
I am not a Communist and this is not a troll, BUT, the rack rate prices at the luxury hotels in most great cities are $600-$900 for a basic room. (Just looked up Four seasons- NYC.)

Are there that many people out there who pay those rates? Why do they spend this when I have had perfectly decent, central NYC/Paris rooms for less than $250. (Will be staying in the Essex House NYC next week for $202 a night)

How many of these rooms are being paid by their business or someone else?

This is not a rant on these prices,I understand they have to be super expensive due to real estate value.

To answer your question briefly--yes. There are people who pay $600/600EURO for a room in New York and Paris.

You're right that the Essex House is perfectly decent and central; for some, having a five-star hotel experience is as important as the vacation/business itself. On the business end, if a self-employed entrepreneur is negotiating a deal worth millions to his company, a couple thousand out of pocket to ensure absolute physical comfort in his down time doesn't seem egregious. Regarding leisure travelers, I know plenty of people who get a great deal of pleasure out of a solitary weekend in a great hotel--eating, using the spa, decompressing, etc. Obviously, couples/honeymoon travelers' needs are similar.



Regarding how many of these rooms are corporate rates and how many come from out of pocket, I don't have an answer. Perhaps one of the travel agents on this board would have more detailed knowledge of the actual numbers.
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