[EXPIRED] Crowne Plaza Venice East Quarto D Altino 1€
Aug 15, 2009, 10:39 am
#196
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I doubt IHG can just self-impose some rate on them. Since this is a somewhat unique situation, the hotel would have to negotiate with IHG to come up with an acceptable compromise.
Taking into account the potential for lost revenue because of this, and also the fact that on many days the hotel would not have been full anyway (so those days cost nothing), plus the fact that at this price there will be a high no-show rate, it will probably be somewhere between the award night rate and the lowest market rate.
Taking into account the potential for lost revenue because of this, and also the fact that on many days the hotel would not have been full anyway (so those days cost nothing), plus the fact that at this price there will be a high no-show rate, it will probably be somewhere between the award night rate and the lowest market rate.
While there are certainly dates that the hotel is full over an annual period (due to a congress, tour groups, etc.), my suspicion is most of the time their occupancy is no better than 55%. A modest reimbursement rate of even 30 Euros is not going to hurt the hotel, due to the incremental revenue opportunities.
_________________
P.S. as to the comment about the low rates of Italian extra gratuities, you're right, I had forgotten about that practice. To make up for it, I'll just buy some high margin booze at their public bar!
Aug 15, 2009, 11:09 am
#197
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So probably $5-$10 per room per night is an approximate cost to the hotel, provided they would not have sold those rooms.
Aug 15, 2009, 11:11 am
#198
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I wouldn't always believe the first comments, even from IHG. One of the first stories was from Wired, which quoted the $55 Euro plus some PC points.
So it looks like maybe they reversed themselves in a positive direction.
Aug 15, 2009, 11:18 am
#199
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Good point, and if you look at the timeline:
- Initial reaction: charge EUR 55
- Italian papers cover the story, manager quoted saying ressies are "technically valid"
- Start making calls and getting pushback
- AP calls, now local/national/world papers will cover the story, AP waiting for response
- "Oh ****, do we want to go on record cancelling 1,400 reservations?"
- Go back and rethink strategy
- Honor the rate
Last edited by MileageAddict; Aug 15, 2009 at 4:35 pm Reason: remove profanity
Aug 15, 2009, 1:23 pm
#200
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Good point, and if you look at the timeline:
- Initial reaction: charge EUR 55
- Italian papers cover the story, manager quoted saying ressies are "technically valid"
- Start making calls and getting pushback
- AP calls, now local/national/world papers will cover the story, AP waiting for response
- "Oh ****, do we want to go on record cancelling 1,400 reservations?"
- Go back and rethink strategy
- Honor the rate
- Initial reaction: charge EUR 55
- Italian papers cover the story, manager quoted saying ressies are "technically valid"
- Start making calls and getting pushback
- AP calls, now local/national/world papers will cover the story, AP waiting for response
- "Oh ****, do we want to go on record cancelling 1,400 reservations?"
- Go back and rethink strategy
- Honor the rate
Last edited by MileageAddict; Aug 15, 2009 at 4:35 pm
Aug 15, 2009, 1:25 pm
#201
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So IHG is stating the error's cost could be up to €90,000. Are they then telling the property that each room night redeemed will be reimbursed approx. €64.29?
If so, the management of the property shouldn't be too upset. That amount is roughly equal to €55 special "deal" plus VAT!
If so, the management of the property shouldn't be too upset. That amount is roughly equal to €55 special "deal" plus VAT!
Last edited by Craig6z; Aug 15, 2009 at 1:31 pm
Aug 15, 2009, 3:07 pm
#202
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How are the rooms spread over 16 months? If you found out how to book 16 months in advance, I'd love to know about it.
Aug 15, 2009, 3:10 pm
#203
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Yes, of course, that was my whole point. Don't always believe what comes out first. It takes time for the final decision to come out.
Aug 15, 2009, 3:43 pm
#204
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Again, thanks to the OP. I am very lucky that I was reading FlyerTalk at the right time and was able to get in on this amazing deal. The news that the rate is being honored is fantastic. FlyerTalk is a great resource.
Aug 15, 2009, 4:25 pm
#205
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I never tried to book into 2010. However this was based upon a press report:
The 1-cent rate was up only Sunday night, but that was long enough for travelers to book dates running from October through 2010, Danesin said. The hotel stands to lose euro90,000 ($129,000), he said.
[Emphasis added]
http://www.msnbc.msn.com/id/32422089.../?ocid=twitterDanesin is the hotel's sales manager, per the article.
Aug 15, 2009, 4:29 pm
#206
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I never tried to book into 2010. However this was based upon a press report:
http://www.msnbc.msn.com/id/32422089.../?ocid=twitter
Danesin is the hotel's sales manager, per the article.
The 1-cent rate was up only Sunday night, but that was long enough for travelers to book dates running from October through 2010, Danesin said. The hotel stands to lose euro90,000 ($129,000), he said.
Danesin is the hotel's sales manager, per the article.
I don't know any hotel that allows online booking more than 12 months in advance.
Aug 15, 2009, 5:07 pm
#207
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IHG (at least online and through the normal phone reservations channel) only allows bookings 50 weeks in advance.
Aug 15, 2009, 6:46 pm
#208
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In principle yes, but who do you think has the strongest bargaining power here? CP Quarto d'Altino is not exactly in a prime position in Venice and it would not be the end of the world for IHG to lose that property. OTOH, the hotel probably gets a substantial number of guests it would not get without the CP brand. I reckon that IHG is in a position to pretty much determine quasi-unilaterally how much it will indemnify the hotel.
Aug 15, 2009, 8:08 pm
#210
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