Originally Posted by SkiAdcock
Is it me or did socrates answer make no sense? How is the competition (aka, Starwood, Hilton) going to 'beat' Marriott if - for example, Boeing, ATT - er, SBC -books the # of rooms they negotiated their discount on?
I don't think 'too large a discount' is given up front if what marriott_guy said is true - it's both sides figuring out the expected volume & coming up w/ a discount that is mutually agreeable. If it doesn't work, it gets re-negotiated by either or both sides for the next year.
Again, my prediction is those who will never use a discount they're not entitled to will stick w/ that, those that don't care will continue to do so & in the overall thousands or millions of rooms that Marriott books each year, 'pirated' codes are a minor issue.
But if the LHR Ren could continue w/ its publicly available rate that's a great deal I'd appreciate it
I'd especially appreciate it for the London Mega-Do this November!
Cheers.
Cheers.
What he is saying is that if too many of the rooms are being used at a particular discounted rate, then they will not be as profitable as other hotels not offering the rate. Hence when negotiations for the discount come in the following years, Marriott or the hotel may not give as good a discount because so many rooms were used in the previous year.
Correct me if I am wrong on this one.