Group rate HIGHER than online rate?!
Dec 6, 2012, 3:05 pm
#1
Original Poster
Join Date: Jul 2011
Posts: 1,634
Group rate HIGHER than online rate?!
I'm looking to book about 200-250 room nights at a Hyatt property... the prepaid online rate is ~$260; the non-prepaid rate is $305, and the "group" rate I'm getting is $399. Is this normal?? I've never booked a group and had the group rate be higher than the online rate!
Dec 6, 2012, 3:50 pm
#2
Join Date: Jan 2008
Location: San Luis Obispo, CA
Programs: Military Space-A, UA Plat, AS MVP Gold 75K, Hyatt Globalist, Marriott Plat, IHG Plat, HHonors Gold
Posts: 1,248
I'm looking to book about 200-250 room nights at a Hyatt property... the prepaid online rate is ~$260; the non-prepaid rate is $305, and the "group" rate I'm getting is $399. Is this normal?? I've never booked a group and had the group rate be higher than the online rate!
Dec 6, 2012, 4:22 pm
#3
A FlyerTalk Posting Legend
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 100,413
I'm looking to book about 200-250 room nights at a Hyatt property... the prepaid online rate is ~$260; the non-prepaid rate is $305, and the "group" rate I'm getting is $399. Is this normal?? I've never booked a group and had the group rate be higher than the online rate!
Dec 6, 2012, 4:56 pm
#5
Join Date: Feb 2009
Location: United Kingdom
Programs: Hyatt Diamond, HH Diamond, SPG Gold, Marriott Gold, Amex Platinum
Posts: 1,219
I would have expected the group rate to be closer to $305. However, it often happens that hotels will charge higher rates for meetings/ conferences.. depends how good your negotiation skills are, since it's a negotiable rate right?
Dec 6, 2012, 5:39 pm
#6
Join Date: Feb 2003
Location: USA & UK -- AA EXP 3.5MM, Hyatt Diamond, SPG Plat, Avis President's Club
Posts: 6,411
In many cases the group rate is higher to cover the "free" meeting space a group requires. In other cases the hotel sales department believes that the Pay-In-Advance rate applies to people spending their own money while the group rate applies to people who are on expense accounts.
Dec 6, 2012, 5:45 pm
#7
Moderator: Luxury Hotels and FlyerTalk Evangelist
Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 17,856
In many cases the group rate is higher to cover the "free" meeting space a group requires. In other cases the hotel sales department believes that the Pay-In-Advance rate applies to people spending their own money while the group rate applies to people who are on expense accounts.
Dec 6, 2012, 7:38 pm
#9
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Groups are a negotiation. Go negotiate, using the data points you've got. Understand that the rate you're being quoted may be high because they don't really want your group if you're not purchasing meeting space, food& beverage and the like.
Dec 6, 2012, 11:28 pm
#10
Moderator: Alaska Mileage Plan
Join Date: Feb 2005
Posts: 12,318
Dec 7, 2012, 9:01 am
#11
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
All of these may have great value in one setting and no value in another.
Dec 8, 2012, 9:56 am
#12
A FlyerTalk Posting Legend
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 100,413
All coming down to reading the contract for a group booking very carefully. There may be included items about which OP doesn't care (free rooms, suite UG's, food & bev. credit, meeting space, Internet, phone).
All of these may have great value in one setting and no value in another.
All of these may have great value in one setting and no value in another.
Dec 8, 2012, 12:24 pm
#13
Join Date: May 2006
Location: BOS and ...
Programs: UA 2MM, AA 600k, DL 500k, Hyatt GP 1M, HH Gold, Rad. Gold, CP Gold, Miracle Fruit-su Club
Posts: 9,950
All good, spot-on, advice. You've got to negotiate from there because simple shopping by your prospects will cause a hemorrhage from your block. And watch the penalty in the fine print for not meeting the block.
I almost paid dearly for that "transgression" once. Once. "Almost" because my meetings person negotiated my cockles out of the fire ex post facto. But not before letting them roast for a while, so I wouldn't forget the lesson.
Finally, since it sounds like you don't do this much (with great respect - many here have been there) suggest you pay attention to what chain hotels are nearby. Everyone belongs to loyalty programs nowadays. 'S what bit me.
I almost paid dearly for that "transgression" once. Once. "Almost" because my meetings person negotiated my cockles out of the fire ex post facto. But not before letting them roast for a while, so I wouldn't forget the lesson.
Finally, since it sounds like you don't do this much (with great respect - many here have been there) suggest you pay attention to what chain hotels are nearby. Everyone belongs to loyalty programs nowadays. 'S what bit me.
Last edited by Firewind; Dec 8, 2012 at 1:23 pm
Dec 9, 2012, 3:30 pm
#14
Join Date: May 2003
Location: Texas
Programs: Hyatt Glob (Barely); Marriott Plat Life; AA Up and Down Now Plat; Hilton, UA, BA, HA Peasant
Posts: 2,669
Free Advice From Limited Experience
I'm looking to book about 200-250 room nights at a Hyatt property... the prepaid online rate is ~$260; the non-prepaid rate is $305, and the "group" rate I'm getting is $399. Is this normal?? I've never booked a group and had the group rate be higher than the online rate!
It is possible to try and book too small a group into too large a hotel, or too extravagant a hotel for what you are trying to do. If your block will not be a significant booking for them they will not be motivated, in fact they may not really want you. Try a smaller hotel.