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.

After previewing this cancer that's now overtaking the most mundane locations, last winter in Florida, I no longer vacation in the US, period.

Take a long drive or a short flight to Montreal or Quebec, where you won't find third rate filthy hotels, with terrible, surly service at extortionate prices as the new norm.

Beautiful old world, clean, safe, cities with wonderful cuisine, culture, centuries old architecture on cobblestone streets and so many friendly people far enough away from this rapidly decaying country that, for a painfully short time, you'll feel like you've reentered civilized society again. And a bargain to boot.

Award pricing can be kinda funny.

I need to stay in Dubai at the JW Marriott mid September for a decent $160 per night; if I would use points for two nights they'd like to see 120000 for the stay!

Seems to be a total disconnect between cash price which is low (makes sense as its a low season in DXB) and rewards points requirements (which is closer to peak time).

No way I would spend so many points.

So this is good, you can choose what suits you best.

Dublin prices in September
 

We experienced this at The Shelbourne. I burned up the bulk of our points on Two nights at Mount Juliet, 40k per night, and was trying to hold one to one night at The Shelbourne. When I reserved the room it was 50k. As it was just a hold, the rate was not locked in. Over two months the rate went to 70k before I had enough points. I booked the night before with cash and locked that in at $599. The cash price rose to 900 in the same time frame. In the end, I canceled both nights and moved to Powerscourt. We have stayed there twice on the 5 night plan and loved it. Upgrades both times. The wife is lifetime platinum elite.

Agree - we all have an internal threshold for what our hard earned points are worth -- this coming weekend is our anniversary -- so I splurged and spent 296k points to save $4,000 at the St. Regis in PR -- and I would do it again in second -- as every day our points balance devalues....

What could be more sane than sellers accepting the most that buyers will pay and buyers paying the least that sellers will accept?

Sadly, Montreal and Quebec have a reputation for terrible service. You're lucky if that hasn't been your experience.

And based on my recent trip to Montreal, it shares the same problems as the US - extorionate prices and understaffed...

What a silly thread. Hotels are charging what they think people will pay and either 1) people pay it, 2) people won't pay it and the hotels charge less, or 3) people won't pay it, the properties are stubborn, and they go out of business.

If you want to really get offended, look at the cost of a Motel 6 during the Super Bowl.

Also, I had a friend who was forced into a COVID quarantine hotel after testing positive coming off of a cruise. She had to pay $300- plus per night for an extended stay, Motel 6 equivalent property.

Upstate / Hudson Valley is a popular getaway spot for three day weekends, especially in the Covid era. Leisure hotel pricing has been through the roof for the past couple of years, and I frankly don't see them coming down. Many towns are seeing what little housing inventory that is available snatched up for AirBnb.

The real solution is for these Hudson Valley / Upstate towns and cities to approve massive building programs of all housing/accommodation. Homebuilders should be building new single family housing, apartment builders should be building new apartments for rent and condors for sale, hotel developers should get permits to build new hotels, and yes, investors should be allowed to build new, fit for purpose vacation rentals.

Yeah! That way NYC people can go from crowding and pollution to crowding and pollution, all while emitting a ton of carbon to do so!

Coming over from Hyatt, I enjoy the vast number of different properties, but Marriott clearly over charges for their hotel rewards

It was a genuine question - if it's a silly thread to you, don't comment / read it

It is typically impossible to know whether it's a silly thread before you read. And upon reading, they found that the first comment makes absolutely no sense, which is true. You're complaining about cash prices rising. If it's a silly price to you, don't comment / stay there.

Dynamic pricing is what the program is about now and even more so moving forward. If you’re looking for value booking rooms on public holidays or over northern hemisphere summer, you’re not going to make out well. Think 100k per night for average hotels in year or two. Use your points now if you have them.

Exactly! I was promised dynamic pricing insanity, and, having invested the whole 30 seconds to read the first post, all I got was market pricing rationality. FALSE ADVERTISING!!! :D

Make the Hudson Valley so crowded that no one goes there anymore!