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Interesting answer I get from hotel managers when I call about the rates now

Interesting answer I get from hotel managers when I call about the rates now

Old Mar 27, 20, 11:38 am
  #16  
 
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Originally Posted by mikebor View Post
Again to me it reeks of hidden discrimination. They don't want low income people(and a lot of other adjectives) staying there as it would bring down the reputation of the property. So these hotels would rather have a 2% occupancy at a $159 rate than a 10-15% occupancy at a $69 rate because of the different kind of people who would stay there smh. Unbelievable this goes on in 2020.
An economy with different hotel segments (budget, mid-range, luxury) and airline classes is full of “discrimination” against low income people. Why should that change now?
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Old Mar 27, 20, 11:58 am
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Originally Posted by mikebor View Post

The theme seems to be that they don't want to make the rate too low to attract a different type of clientele to stay there. When I press them on what that means they pretty much tell me to read between the lines in so many words.
Which hotels? Where?

But I agree with other posters - low rates means more overhead which while it may translate to higher occupancy, can lead to higher losses. I'm not sure why anyone would make the leap to discrimination though - ultra low rates in this current environment likely only attracts hookers and people having affairs.

Nobody should be staying in a hotel or traveling unless they absolutely have to do so.
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Old Mar 27, 20, 11:59 am
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They're probably worried if they have low rates that sick people will book rooms to self-isolate in for extended periods.
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Old Mar 27, 20, 12:07 pm
  #19  
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Manager is right. You don’t want to buy demand. Never work down your ADR for occupancy. In other words, keep Revpar where you can.
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Old Mar 27, 20, 12:07 pm
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"Discriminating" again low paying customers isn't exactly new. Been to a Ferrari dealership lately?

In business it's called differentiation.

Last I checked, neither net worth nor annual income are protected classes.
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Old Mar 27, 20, 1:10 pm
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Originally Posted by mikebor View Post

Again to me it reeks of hidden discrimination. They don't want low income people(and a lot of other adjectives) staying there as it would bring down the reputation of the property. So these hotels would rather have a 2% occupancy at a $159 rate than a 10-15% occupancy at a $69 rate because of the different kind of people who would stay there smh. Unbelievable this goes on in 2020.
It's not hidden, it's right out in the open, and all businesses do it. And it's actually the opposite of price discrimination. It's not reputation they're worried about, it's profit. It "goes on" in 2020, always has, and always will.

Price discrimination is the practice of charging different customers different rates, based on how much they could pay, usually without their knowledge. For example, if I'm selling widgets and customer A is willing to pay $10 per widget and customer B is only willing to pay $8, I will charge $10 and $8 respectively. This is NOT what Marriott is doing...they're charging everyone $10 and the consumer can decide if they want to purchase at that price. So technically, by having a fixed price, they're NOT discriminating against anyone, they're just offering a product for a set price. No company sets product price for all customers based on what they think their lowest-income potential customer can afford.

When you buy a cheeseburger at McDonald's, there's a set price and you decide if you want to pay it or not. When you buy a car at a dealership, the salesperson in most cases practices price discrimination, based on how much they think you are likely to be able to spend.
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Old Mar 27, 20, 1:16 pm
  #22  
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Originally Posted by JBord View Post
It's not hidden, it's right out in the open, and all businesses do it. And it's actually the opposite of price discrimination. It's not reputation they're worried about, it's profit. It "goes on" in 2020, always has, and always will.

Price discrimination is the practice of charging different customers different rates, based on how much they could pay, usually without their knowledge. For example, if I'm selling widgets and customer A is willing to pay $10 per widget and customer B is only willing to pay $8, I will charge $10 and $8 respectively. This is NOT what Marriott is doing...they're charging everyone $10 and the consumer can decide if they want to purchase at that price. So technically, by having a fixed price, they're NOT discriminating against anyone, they're just offering a product for a set price. No company sets product price for all customers based on what they think their lowest-income potential customer can afford.

When you buy a cheeseburger at McDonald's, there's a set price and you decide if you want to pay it or not. When you buy a car at a dealership, the salesperson in most cases practices price discrimination, based on how much they think you are likely to be able to spend.
I know a few director of front office and AGM's well and what was told to me is that they don't want to lower the rates too much because the hotel clientele will be different and not who they want. Plus when I called other properties and spoke with mgmt that message was also conveyed in an indirect way.
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Old Mar 27, 20, 1:30 pm
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Originally Posted by mikebor View Post
I know a few director of front office and AGM's well and what was told to me is that they don't want to lower the rates too much because the hotel clientele will be different and not who they want. Plus when I called other properties and spoke with mgmt that message was also conveyed in an indirect way.
The personal reasons for a decision kind of don't matter, whether we agree with them or not. In a (somewhat) free market, decisions based solely on poor, personal reasoning tend to put people out of business. Granted, we are experiencing a unique market right now, so the normal rules don't apply. It's very likely that every Marriott/Hilton/Hyatt hotel sets their prices all the time based on a certain type of customer they want to attract. Many businesses do that. It's only a conversation now because of the extraordinary times. This would only be discrimination if a property turns away someone who is willing and able to pay the $159 (and, although I'm not an attorney, I believe they'd probably have to be in a protected class too, but that may be wrong). From what you've written, they aren't refusing anyone services, they're just setting a price point that discourages some customers from buying. In that case, there are a whole bunch of businesses that discriminate against me -- I'm looking at you, local discriminatory BMW dealer!
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Old Mar 27, 20, 1:37 pm
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Pricing, high or low (subjective) technically is a form of differentiation, some choose to use this word "discrimination".
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Old Mar 27, 20, 2:21 pm
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Originally Posted by mikebor View Post
I know a few director of front office and AGM's well and what was told to me is that they don't want to lower the rates too much because the hotel clientele will be different and not who they want. Plus when I called other properties and spoke with mgmt that message was also conveyed in an indirect way.
I don't think you get it yet, and misinterpreting the many points people have already discussed. Or maybe, its what you want to hear, and interpreting it in a perverse way. Afterall, the human brain only hears what they want to hear right?
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Old Mar 27, 20, 4:17 pm
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How do you know occupancy would go up that much with reduced rates?
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Old Mar 27, 20, 5:32 pm
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Accurate commentary.
There is a different clientele at a JW Marriott vs. Fairfield Inn. And the Courtyard vs. Renaissance.
If I travel to a JW Marriott I do not anticipate seeing the international tour groups or HS college tour family or fraternity at the bar or breakfast meal service.
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Old Mar 27, 20, 6:26 pm
  #28  
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Originally Posted by RooseveltL View Post
Accurate commentary.
There is a different clientele at a JW Marriott vs. Fairfield Inn. And the Courtyard vs. Renaissance.
If I travel to a JW Marriott I do not anticipate seeing the international tour groups or HS college tour family or fraternity at the bar or breakfast meal service.
If I'm doing the booking for my family or my kids' robotics teams and the JW is affordable, you'll see us there...move over, we're coming through!

David
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Old Mar 27, 20, 6:59 pm
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au contraire

I see the opposite.
I perused hotels in NYC for Easter & found several under $100. Low, in my estimation.
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Old Mar 27, 20, 7:35 pm
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Originally Posted by theOtherHolmes View Post
I for one would not stay at a hotel charging $59 if it regularly charges $159. Why? Because when I travel, I do care about the kind of crowd the hotel attracts. $59 doesn’t mean low income guests, it more likely means young students who like to party and disrupt my sleep.
Ooohhh, book me into that hotel please. I don't mind losing a bit of sleep
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