Originally Posted by
Seat 1F
Making a paid reservation at this property for tonight would cost around $350. Obviously United would not pay anywhere near that rate. The hotel appears very busy.
In most airport/business hotels, the rates sold to the general public can't be used to estimate the actual average daily rate for the hotel. In one hotel in which I worked as Revenue Manager, our public rates were in the $215-300/night range. Yet, due to the large number of guests with negotiated corporate rates, our overall average daily rate was usually between $120-150.
Originally Posted by
channa
Airport hotels tend to have high vacancy rates, especially in low-cost destinations like DTW, so there is likely competition for contracts such as this, which could lend itself to reasonable rates on properties that seem a bit more upmarket than normal.
So true. Demand at airport hotels can fluctuate wildly. Having a block of X rooms every night for airline crews means guaranteed revenue.