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Old Jul 30, 2004 | 1:04 am
  #6  
The Viking
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Join Date: Feb 2000
Location: Oslo, Norway.
Programs: SK EBD, AX Cent, SPG Gold, HH Diamond, Club-A Plat, Avis' PC, CC Gold,Hertz PC, CX Diamond,BA Bronz
Posts: 683
Originally Posted by daniellam
Just curious,

What does the hotel "gain" from offering discounted rates via FHR to those who pay with an American Express Platinum or Centurion card?

Does American Express pay them some sort of "fee" or charge them "less commission"?

Also, since the hotel has "lower" rates+priviledges for those who pay with Platinum or or Centurion card, aren't those rates "market rates" (i.e. what people are actually willing to pay vs. the hotel's corporate rates)?

[What are my chances of "negotiating" a favourable rate, with maybe even some benefits thrown in if I call the hotel's (not central reservations) sale/marketing/reservation department directly and plead my case?]

For me, since I don't qualify (not for a few years as I have just finished school and starting my career) for either an American Express Platinum (Chargecard not credit card), or Centurion, I find it especially frustrating when I hear of some of the FTers talking about their FHR priviledges.

At best, all I can do is book through a Virtuoso travel agent (www.virtuoso.com) or through Leading Hotels Leader's Club and hope for an upgrade. (Sometimes I give up and just book the "corporate rate" for the type of suite that I really want to be guaranteed in and not expect an upgrade).

I guess what I am going to do is protest this whole thing by booking on the ritzcarlton.com website with the FHR code and when checking-in insist on paying for my stay with "cold hard cash". If they insist I pay the "rack rate", I'll just threaten to take my business elsewere.
FWIW I believe that there is a reciprocal agreement between Amex and hotels like FHR or SLH regarding reduced commissions both on the booking fee as well as %-charged by Amex, kickbacks and advertising privileges, although I do not have that in writing.
At the hotel Arts where I once mitakenly booked my room under the AMX code instead of AXC (Rates were almost identical) I was denied all extras like upgrade, free b'fast, amenities etc. solely due to the wrong booking code, although i presented my Centurion card upon checking in..
They did stand fast on this, although I subtly hinted that Arts may not be amongst my choices for any upcoming large booking...
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