$251 rates
Jun 10, 2016, 9:14 pm
#16
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It isn't a matter of refusing to sell a room to a government traveler; more that they would rather offer the room to other travelers first.
Ever more sophisticated Yield Management software could determine that a hotel with 70% of rooms filled could be as profitable ad a hotel at 100%, but with a "less desirable" mix of rates paid.
(IIRC the GSA limits can be exceeded via a process).
Ever more sophisticated Yield Management software could determine that a hotel with 70% of rooms filled could be as profitable ad a hotel at 100%, but with a "less desirable" mix of rates paid.
(IIRC the GSA limits can be exceeded via a process).
Jun 10, 2016, 11:30 pm
#17
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OK, here is an off the wall theory.
I checked a number of US cities and noticed that, excepting NYC in non-summer months, the highest GSA federal government per diem rate allowed is exactly $250.
By pricing at $251, Hyatt can effectively exclude all federal government business at all continental US locations.
I checked a number of US cities and noticed that, excepting NYC in non-summer months, the highest GSA federal government per diem rate allowed is exactly $250.
By pricing at $251, Hyatt can effectively exclude all federal government business at all continental US locations.
Jun 11, 2016, 1:54 pm
#18
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Honestly, it's virtually impossible to have a conversation related to hotel pricing when it's as abstract as this one. It's also tough to do unless you have proprietary information about each hotel. I offered an educated guess based on experience in the industry. It wasn't meant to be a definitive answer.
This is not so off-the-wall. I hadn't considered government rates. This is a good guess as to what might be happening.
This is not so off-the-wall. I hadn't considered government rates. This is a good guess as to what might be happening.
Jun 11, 2016, 2:19 pm
#19
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Were the hotel rate $251 and the per diem $250, a govt employee would have no problem staying there provided he/she pays the extra $1 out of pocket (which I would if the property was desirable). Certainly having the rate set higher would deter some people,but I'd imagine if you really didn't want government travelers you'd set it $20 higher, not $1.
For an example: say that Oracle holds a specialized conference on the MIT campus in Cambridge. The infrequent federal traveler only cares about being close to the venue. So he/she looks, and finds the Cambridge Marriott at $239. They have no reason to look further.
Jun 11, 2016, 8:34 pm
#20
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Except that, as one of the previous posters mentioned, the govt per diem is the limit in what the govt will reimburse, not what you can book. We're the hotel rate $251 and the per diem $250, a govt employee would have no problem staying there provided he/she pays the extra $1 out of pocket (which I would if the property was desirable). Certainly having the rate set higher would deter some people,but I'd imagine if you really didn't want government travelers you'd set it $20 higher, not $1.
Jun 13, 2016, 12:32 am
#21
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Concur sucks
Just wanted to throw that in there. My travel arrangements now take three times longer and generate five times the emails than they used to without Concur.
My company is not as rigid about it as others, so I can get around it when I need to, but man it is a pain in the ... if you grew up booking directly with hotels and airlines.
My company is not as rigid about it as others, so I can get around it when I need to, but man it is a pain in the ... if you grew up booking directly with hotels and airlines.
Jun 13, 2016, 8:27 am
#22
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Except that, as one of the previous posters mentioned, the govt per diem is the limit in what the govt will reimburse, not what you can book. We're the hotel rate $251 and the per diem $250, a govt employee would have no problem staying there provided he/she pays the extra $1 out of pocket (which I would if the property was desirable). Certainly having the rate set higher would deter some people,but I'd imagine if you really didn't want government travelers you'd set it $20 higher, not $1.
Jun 13, 2016, 2:44 pm
#23
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This theory though wouldn't work as every city has it's own per diem. For example, when I stayed in New Orleans a couple of month ago, it was like $125. Where I travel for work is $99. Therefore multiple hotels setting for $251 seems more like another issue since the OP said he is maxed at $250 period, i.e. regardless of where he stays.
But a national $251 corporate rate effectively guarantees that all fed gvmt stays will be blocked when using automated booking tools, no matter what the local GSA maximum is in any given area.
Jun 13, 2016, 2:56 pm
#24
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This would only be true though if the hotel doesn't have separate discounted gov't rates. Many do so this arbitrary $251 would not affect that option.
Jun 13, 2016, 5:20 pm
#25
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One example might be Tampa - it is likely that Hyatts there offer special codes to civilian and military travelers going to MacDill (headquarters of the Joint Chiefs command).
Jun 14, 2016, 3:15 am
#26
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This theory though wouldn't work as every city has it's own per diem. For example, when I stayed in New Orleans a couple of month ago, it was like $125. Where I travel for work is $99. Therefore multiple hotels setting for $251 seems more like another issue since the OP said he is maxed at $250 period, i.e. regardless of where he stays.
Do you work for the government to say this? I don't know for a fact but IME I work for a defense contractor who has to use per diem rates for our travel. We are not allowed to book for more than per diem, even if we agree to pay the difference.
Do you work for the government to say this? I don't know for a fact but IME I work for a defense contractor who has to use per diem rates for our travel. We are not allowed to book for more than per diem, even if we agree to pay the difference.
