Dynamic Pricing Insanity
 

Hey folks, long time lurker first time poster.
Just wanted to get thoughts on state of affairs for dynamic pricing - it's becoming insane!!!

Case in point I was looking for a Labor Day weekend getaway in upstate NY. The Wick Hotel (an ok-ish conversion from an old paper mill that tries a bit too hard to be fancy and really isn't super, but a decent enough stay, at max a 3.5* hotel... no good bars / amenities / restaurants to speak of and not even on the main drag) wants to have $1,028 per night stay this weekend (or 60,000 points per night). That is MORE than staying at a W / Pantheon Iconic / Regency) bang in the middle of Rome !!! I really cannot believe anyone is crazy or stupid enough to pay these prices, especially given the alternate value - if there is such a thing left.

Has anyone seen any other examples of the ridiculous pricing variances since Marriott got rid of the the award charts?

It's a major US holiday weekend. AAA is claiming 90% of travelers this weekend will take to the road, not the skies. So that means your "out of the city" locales will be busting at the seams. Upstate NY will be one of them given the generally nice weather in early September. Not sure why you are so surprised. Dynamic pricing is here to stay and the rate is reflective of supply & demand.

-RM

i think you are mistaken about Rome, at least for the W and the iconic as I'm in the process of planning a trip to Italy. There are no redemption rooms under 75k for the W or the Iconic Rome. having said that, award pricing is definitely inflated, just like the revenue room rates...

When we talk about "dynamic pricing" here, we're usually referring to award prices. Cash prices have been dynamic for as long as properties have used inventory management systems. In this case, the 60,000 points/night rate is quite reasonable compared to the cash rate and certainly isn't "dynamic" the way it could be (and perhaps will be next year when award pricing moves more in step with revenue rates!)

I've stayed at the Wick Hotel in Hudson and I was not impressed by the hotel. I only stayed there because it was convenient from NYC to Hunter Mtn. for a quick stay before skiing all day.

I wouldn't say it's worth $1k or 60k points but these Hotels can charge whatever they want if there's demand for it.

And, I'm staying at a Luxury Collection resort over Labor Day weekend for $375 all-in per night - I'll be hot in Scottsdale, but it goes to show how location is a strong factor in pricing.

I'm confused. How is 60k points for a room that is costing over $1k "dynamic pricing insanity"?

It's not. But you already knew that. LOL.

It's ridiculous in two ways. 60k points for a hotel that is barely any (if at all) better than a Courtyard or a Residence Inn... and the daily $ rate is basically on part with an off-day of the St. Regis in NYC!?!

It seems like the cash price is insane then, not the points rate (which actually looks like a good value relative to the cash price).

I mean, isn't it really the exact opposite? Seems like that redemption might be capped at 60k and not really all that dynamic.

If you want some insanity, it looks like you can book for 60k points or $1800 on Saturday night or $362 with no points redemptions available on Sunday night.

There has also been a heavy outflow of people + money into the Hudson Valley since the start of Covid (and has been been building up steadily for years before that too)...nothing surprising here.

Isn't "dynamic pricing" when referring to cash prices just basic, centuries old supply and demand? Never heard of it referred that way before

Yes, exactly. It's the cash rate that's insanely high. The redemption rate is clearly capped and thus an example of NOT dynamic pricing.