[EXPIRED] Leading Hotels of the World - $19.28 a night (reg $500-$2000)
Sep 15, 2008, 6:59 am
#121
Join Date: Jul 2007
Location: CEG, United Kingdom.
Posts: 33
From The Hoxton's website:
During our last sale we had the largest number of hits ever, with over 500,000 people trying to book the rooms and all 1000 sold out within 19 minutes
This is data from one of the earlier Hoxton £1 promotions, so as the $19.28 offer will get a lot more publicity then we're in for a very tough ride!!
The Hoxton offer was detailed on Moneysavingexpert.com - a massively advertised UK site, and hotukdeals.com, bargainspy.com and loads of others so it got a massive amount of publicity in the UK (obviously the $19.28 offer is worldwide though).
GOOD LUCK!
Caroline
Sep 15, 2008, 10:02 am
#123
Join Date: Sep 2005
Location: LAX
Programs: AA ExPlat, HHonors Diamond
Posts: 1,130
I would hope that the servers running the LHW site are able to handle more traffic than that of Hoxton, a nice but small hotel that on ordinary days probably doesn't need much more than a TI-83 calculator to handle the incoming traffic.
Sep 15, 2008, 12:24 pm
#125
Original Member, Moderator: Hotel Deals and MilesBuzz
Join Date: May 1998
Location: Washington, DC
Posts: 14,257
I'm finidng this promotion mentioned at numerous travel and bargain websites. I have a feeling many more than our FT community know about this potential deal. 
Sep 15, 2008, 3:05 pm
#127
Join Date: Apr 2006
Location: YTZ
Programs: Hertz & Avis PC; National EE; SPG & Hilton Gold; AC 35K (yawn)
Posts: 5,921
http://www.lhw.com/1928_SIGNUP.aspx?ext=1928 has the time listed. If you need to offset it, may I suggest http://www.time.gov/
Sep 15, 2008, 9:42 pm
#129
Join Date: May 2005
Programs: DL, US, Starw Amex
Posts: 72
You know, I kind of wonder about the value of this promotion to LHOTW.
Like I've always been aware of the "chain," but if you had asked me my opinion I would have said "Very nice collection of hotels that are at a price point I'm not willing to pay."
Now, because of the promo, I'm more familiar with their hotels, but I'm even more convinced that the regular room rates they offer are stratospheric.
In other words, how does it boost sales to advertise to people who won't be buying their luxury product unless it is bargain-basement priced? And is anyone who actually pays $20/night likely to be a repeat customer at $500/night?
Like I've always been aware of the "chain," but if you had asked me my opinion I would have said "Very nice collection of hotels that are at a price point I'm not willing to pay."
Now, because of the promo, I'm more familiar with their hotels, but I'm even more convinced that the regular room rates they offer are stratospheric.
In other words, how does it boost sales to advertise to people who won't be buying their luxury product unless it is bargain-basement priced? And is anyone who actually pays $20/night likely to be a repeat customer at $500/night?
They're hoping this gets picked up by the wire services and this gets them free publicity. They may only be able to convert 0.1% of free riders to regular pricing, but they will get free media exposure and they've determined it's worth the room giveaway. Besides, the room they are giving has a low COGS (ie cost to them) if it is not rented. So, assuming the room will be empty, what is the loss they incur if they give it away? Housekeeping and laundering costs? Wear and tear? Utilities? All these are less than the $20. The fixed costs (debt service, taxes, etc) don't go up if they give you the room for $20.
Sep 15, 2008, 9:44 pm
#130
Join Date: Jan 2006
Location: NYC
Programs: DL PM, TSA Disparager Gold
Posts: 1,431
Sep 16, 2008, 12:14 am
#131
Join Date: Jan 2002
Location: Los Angeles, California
Programs: IHG Diamond Elite, Hilton Diamond, Hertz President's Circle
Posts: 3,531
It appeared on www.consumerist.com the other day.
Sep 16, 2008, 9:53 am
#135
Join Date: Sep 2008
Posts: 34
They're hoping this gets picked up by the wire services and this gets them free publicity. They may only be able to convert 0.1% of free riders to regular pricing, but they will get free media exposure and they've determined it's worth the room giveaway. Besides, the room they are giving has a low COGS (ie cost to them) if it is not rented. So, assuming the room will be empty, what is the loss they incur if they give it away? Housekeeping and laundering costs? Wear and tear? Utilities? All these are less than the $20. The fixed costs (debt service, taxes, etc) don't go up if they give you the room for $20.