Crisis discounts at highend hotels?
Sep 21, 2008, 12:50 pm
#1
Original Poster
Join Date: Dec 2002
Location: Hong Kong
Posts: 2,172
Crisis discounts at highend hotels?
It is quite likely that the economy will head south and stay there for some time. Naturally, the travel industry, especially high end, will be hit. Shall we pool together information for discounts?
Sep 21, 2008, 1:47 pm
#2
Join Date: May 2006
Location: Tampa, FL
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Posts: 2,441
It's called priceline.com
Sep 21, 2008, 1:58 pm
#3
Join Date: Aug 2008
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Posts: 19
In the last few days Ive noticed prices going UP. A couple of weeks ago I booked 7 nights in the Dusit resort Pattaya for £280, last night I checked and they want £109 per night for the same dates.
Sep 21, 2008, 6:33 pm
#4
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define high end.
Sep 22, 2008, 2:18 am
#5
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We were at Four Seasons Hampshire over the weekend. We had booked a B&B rate at £365 per night, but rebooked about 3 weeks ago when they introduced a new package at £365 per night which included breakfast and a £50 hotel credit. However, that is hardly a massive discount!
Four Seasons Florence is still showing Euro 855 for the 3 nights we are there in November for a Four Seasons Room, although I got a discount by booking through Virtuoso.
In general, if you are truly high end, you don't need to discount much. If you are the best in town, those people who want the best in town will go to you whatever your rates - unless the gap between you and the 2nd / 3rd best in town (and these are the guys who really suffer) gets too wide to justify.
It also depends on destination. According to one of the UK newspapers yesterday, UK bookings to the Maldives are sharply down at present. However, the Russians have discovered the islands this year and have taken up the slack (and more) left by the UK fall off.
Four Seasons Florence is still showing Euro 855 for the 3 nights we are there in November for a Four Seasons Room, although I got a discount by booking through Virtuoso.
In general, if you are truly high end, you don't need to discount much. If you are the best in town, those people who want the best in town will go to you whatever your rates - unless the gap between you and the 2nd / 3rd best in town (and these are the guys who really suffer) gets too wide to justify.
It also depends on destination. According to one of the UK newspapers yesterday, UK bookings to the Maldives are sharply down at present. However, the Russians have discovered the islands this year and have taken up the slack (and more) left by the UK fall off.
Sep 22, 2008, 8:45 am
#7
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I think that luxury properties are loathe to discount their room rates, even temporarily one of the reasons being that it becomes difficult to bring the rates back up to their previous levels once the economic situation improves .
I think that they are more likely to (as noted above) increase offerings of packages, spa and Food/beverage credits, and "get the fourth night free" incentives such as LHW and the Luxury Collection do at times. This can save considerable money - for example, a hotel charging €400 per night will sell a 4-night stay at €1200 instead of €1600, making the effective rate €300 over the entire four-night stay.
I think that they are more likely to (as noted above) increase offerings of packages, spa and Food/beverage credits, and "get the fourth night free" incentives such as LHW and the Luxury Collection do at times. This can save considerable money - for example, a hotel charging €400 per night will sell a 4-night stay at €1200 instead of €1600, making the effective rate €300 over the entire four-night stay.
Sep 23, 2008, 8:04 pm
#8
Join Date: Mar 2004
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Sep 23, 2008, 9:41 pm
#9
Original Poster
Join Date: Dec 2002
Location: Hong Kong
Posts: 2,172
What you mentioned would still be a discount, a great one.
I think that luxury properties are loathe to discount their room rates, even temporarily one of the reasons being that it becomes difficult to bring the rates back up to their previous levels once the economic situation improves .
I think that they are more likely to (as noted above) increase offerings of packages, spa and Food/beverage credits, and "get the fourth night free" incentives such as LHW and the Luxury Collection do at times. This can save considerable money - for example, a hotel charging €400 per night will sell a 4-night stay at €1200 instead of €1600, making the effective rate €300 over the entire four-night stay.
I think that they are more likely to (as noted above) increase offerings of packages, spa and Food/beverage credits, and "get the fourth night free" incentives such as LHW and the Luxury Collection do at times. This can save considerable money - for example, a hotel charging €400 per night will sell a 4-night stay at €1200 instead of €1600, making the effective rate €300 over the entire four-night stay.
Sep 23, 2008, 10:31 pm
#10
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Agreed. And by making the offer applicable only to multi-day stays, it provides the hotel with increased opportunities for incidental income, making it even more of a win-win situation for both the hotel and for the guest.
Sep 24, 2008, 8:02 am
#12
Join Date: Apr 2002
Location: NYC
Posts: 9,125
Conde Nast Traveler has an article on this: In short - locations that attract a mostly US$ clientele are starting to offer good deals.
Sep 25, 2008, 1:01 am
#14
Join Date: Mar 2006
Posts: 342
Please, if you can afford $400+ a night on luxury hotel rooms, the economy is not going to hurt you so hard you will need a discount.
Just more fear mongering BS.
Just more fear mongering BS.
Sep 25, 2008, 1:54 am
#15
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What you WILL see is what I found at Capella Castlemartyr in Ireland in July (which IS US$ dependant). The property basically abandons, overnight, the idea of being a luxury hotel and fires a large percentage of its staff, without telling pre-booked customers in advance.
Castlemartyr is now amazingly cheap, by the way. Service stinks but the rooms, pool etc are obviously as they were originally!
Castlemartyr is now amazingly cheap, by the way. Service stinks but the rooms, pool etc are obviously as they were originally!