Interesting answer I get from hotel managers when I call about the rates now
Mar 27, 2020, 11:38 am
#16
Join Date: Jun 2019
Programs: UA, AS, Marriott
Posts: 139
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.
Mar 27, 2020, 11:58 am
#17
Join Date: Sep 2006
Location: HNL
Programs: UA GS4MM, MR LT Plat, Hilton Gold
Posts: 6,447
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.
Mar 27, 2020, 12:07 pm
#20
FlyerTalk Evangelist
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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.
In business it's called differentiation.
Last I checked, neither net worth nor annual income are protected classes.
Mar 27, 2020, 1:10 pm
#21
Join Date: Oct 2013
Location: ORD
Programs: UA Silver, Marriott Platinum/LT Platinum, Hilton Gold
Posts: 5,594
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.
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.
Mar 27, 2020, 1:16 pm
#22
Original Poster
Join Date: Aug 2006
Location: Pittsburgh Pennsylvania
Programs: Marriott Platinum, Starwood Platinum
Posts: 373
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.
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.
Mar 27, 2020, 1:30 pm
#23
Join Date: Oct 2013
Location: ORD
Programs: UA Silver, Marriott Platinum/LT Platinum, Hilton Gold
Posts: 5,594
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.
Mar 27, 2020, 2:21 pm
#25
Join Date: Nov 2009
Location: YVR
Programs: I'm a nobody everywhere
Posts: 424
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.
Mar 27, 2020, 5:32 pm
#27
Join Date: Jan 2007
Location: NYC/Northern NJ
Programs: 1K - UAL, Platinum DL, Marriott, Hilton, SPG
Posts: 1,815
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.
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.
Mar 27, 2020, 6:26 pm
#28
FlyerTalk Evangelist
Join Date: Jun 2010
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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.
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.
David
Mar 27, 2020, 7:35 pm
#30
Join Date: May 1998
Location: australia
Posts: 5,762
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.