Misuse of Corporate\Discounted Rate Codes
Hello all.
I know that this email might be a little stinging to some, but I have not really said anything regarding the public publication of corp/disc rate codes, and when I have it has helped (regarding definitions of rate codes).
I have said before that I thoroughly enjoy hearing my guests (and best guests - Marriott Reward members) onions on this forum. I have seen the corporate rate list being posted here and other discounted rate codes. Of course, being a GM and operator of a hotel, this concerns me.
I want to preface the rest of this thread by letting everyone know I am not just getting up on my virtual soapbox. I am just trying to give everyone a little insight and impacts on abusing some of the codes. I am just like you - I make a purchasing decision based on the product/value. So don't think for a second that this thread is coming from someone bringing down 7 figures a year.
Corporate rates for a company are based on volume delivered, along with the stay pattern (if they pick up shoulder nights). These negotiated rates are based on the hotel/market/volume for the individual hotel. As was mentioned earlier in another thread, these rates have LRA (Last Room Availability) or NLRA (Non LRA). This is also determined on volume/stay pattern/total dollars spent. Some of this LRA/NLRA are negotiated at the corporate level of Marriott, or are dictated by the company itself. Setting/acceptance of the terms is determined by the properties (they may be exceptions for project/special group business).
To my point. Each property forecasts room night volume/pattern/dollars for a given year prior to negotiating, or being including in the RFP/pricing process. For example, Company A might have a neg rate and LRA, but due to their stay pattern, that may not offered the nexr year (rate or LRA status) due to the actual use.
Corporations negotiate their rates in good faith with us based on these set of criterion. It is a partnership that Marriott enters into with our partners. It has to be a win-win, obviously. Yes, it is the individual property to ask for ID for whatever discount is booked by a guest checking in. You and I both know that doesn't happen frequently. I want my front desk people focusing on you (taking care of you, having real conversation, meeting your needs) rather than asking you for proof that you are a member of whatever corp/group you are with. This wouldn't sit well with me, and I am sure it would not sit well with you on a consistent basis. This should be standard practice (and is usually required by the neg rate contract), and I know that that stay at our hotels, mainly, are not the ppl that signed the agreement.
The big effect of misusing rate/corp codes - a property will not participate in a respective rate program, or if they choose to, they will not offer LRA or as a big neg rate.
I do appreciate all of our big corporate customers - don't get me wrong. They are my bloodline. However, this misuses at times can actually hurt they ability to negotiate a better rate fo0r their company due to inaccurate information. They report X number of rooms for a given night of the week (YTD), and we show something completely differ. This does make it difficult.
Once again, I am not trying to just trying to give you the facts that happen during the pricing process, from MHO.
I want you to get the best deal for you or your companies as well. Sometimes it will be a good fit, sometimes it will not. Negotiate with the properties - many times, as has been pointed out, a corp rate can be established and is a win-win to your company and the hotel.
I know this will cause some waves, and I do regret that. However, I am just trying to assist and let everyone know what does actually occur behind the scenes.