FlyerTalk Forums - View Single Post - Misuse of Corporate\Discounted Rate Codes
Old Aug 6, 2006, 7:00 pm
  #64  
clarkef
 
Join Date: Jan 2005
Location: Silicon Valley
Programs: Marriott Ambassador
Posts: 1,243
Originally Posted by Marriott_Guy
clarkef (and trekkie to a degree).

This is true that this does increase the total volume of room nights and overall revenue spent at a location. In addition to rate and other negotiated items that have already been listed (included the next one), is if the rate has 'Last Room Availability' (LRA) or Non LRA (NLRA). Like any other business that deals with capacities, X number of room nights can be absorbed at a certain negotiated discounted rate. If in a given year if projections (agreed upon by both the property and client) are extremely out of balance (assuming this is a LRA account), then believe me that is figured into the negotiations for the following year (either the LRA status of the code or the actual rate). Like other businesses as well, a displacement analysis is completed based on the stay pattern of the account.

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HI Marriott_Guy. I really didn't understand the reply. I agree that using a rate code that you are not entitled to is wrong. However, you also posted that it also hurts the company that "owns" the discounted code. My questions is simply, how does it hurt the company.
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