Business 101
 

OK, I've come to learn. I'm not a business major and don't play one on TV. Had an interesting interaction yesterday.

I'm starting a project in a new city. Client has suggested I stay at a competitors hotel which has a rate of $x per night. Hotel offers suite like rooms with the massive free breakfast (omlets cooked to order etc).

I check and there is a Residence Inn that would be a good fit for me so I head over there to chat with the folks about their rate. Here's where I get confused.

I explain to them I expect to be here 6 - 12 months checking in on Sunday and out on Thursday (4 nights each week). The counter person (there is no one in sales at that hotel) tells me that RI has a corp rate for my company and the client company. The rate is $x + $9 per night. Now $9 isn't much to me but I'm sure my client would object.

She also tells me that they have a corp rate for for my company and the client company of $x - $26 if I stay 5 nights. So, lets get this straight. If I stay 4 nights a week the rate is $9 more than I want to spend. If I stay 5 consecutive nights the rate is $26 less per night than my $x rate.

I tell her because of my schedule, it has to be 4 nights a week. She then tells me she cannot lower the rate below $x +$9 for the 4 night stay.

Here's where you can help. I'm offering to give them 100 - 150 room nights at a rate that is $26 above the 5 night rate and they tell me Marriott will not let them lower the 4 night rate. I've always thought Bill was a good businessman. I still believe he is. How can this possibly make sense.

Perhaps there is something in the business world that I just don't know so I'm ready to learn. If there is any reason this makes sense please let me know.

Hi 900at,

I think it's simply a question of empowerment. You probably need to ask to speak to the manager of the hotel, rather than working with a front desk agent.

Cheers,

GenevaFlyer

Extended stay hotels are setup and staffed to handle extended stay guests, short term guests do actually have a higher cost associated with them so yes what you were told is correct

See if you can negotiate a monthly rate. I've had a case where the monthly rate (over 7 nights) was just about the same as the daily rate (extrapolated over 7 nights). The hotel wouldn't really budge on the nightly rate but they were happy to budge on the monthly rate.

I got to keep my same room for a couple of months. True, I lost 500 points every time I didn't check in but that was well worth the convenience of bypassing the check in desk every Monday evening.

I had a similar issue witht he Baton Rouge RI last year. When I spoke with the GM and told him how many nights (3 people x 4 nights per week X 8 - 12 weeks) he quickly set up a special rate code for us. Tell the GM you are ready to book those nights now. That way the nights show up in his/her book that is presented to corp.

He/she may work with you on the rate.

Regards,

RIP...

My employer is a large professional services company with rates at almost any Marriott, Starwood, Hyatt, and Hilton, but a lot of times I find myself in the same situation as you. Being a Marriott guy as well, I want to make sure I'm earning my nights and points. On at least 5 occassions I have contacted hotels and they have dropped their rate to accomodate my needs, but I have always talked to their sales manager rather than the front desk.

One situation sticks out particularly -- I was working for the government and the per diem rate was $25 higher than the hotel they wanted me to stay at (18% of the rate itself), but the Marriott was set at the per diem rate. I contacted the sales manager and they actually dropped the rate to match the other hotel to accomodate me.

It sounds like you just need to talk to the right person!

that is exactly what the rates the OP was quoted is encouraging them to book and why they are structured the way they are

I agree with the earlier post that this is an issue of empowerment. Speak with the general manager or sales manager to get the best results.

Also, I have also used the approach of making the reservation at a different Marriott that has even a lower rate. I then, ask the sales manager of my preferred hotel to look up my Rewards account not try to match the lower rate but get as close to it as they can (I mention the rate I want them to be at). This process works very well.

I have also leveraged the Platinum line to call the hotel and make my case as well.

In the USA, I normally get the rate I want. However, in the UK it is a whole different story.

or you could listen to some posters on this thread where Marriott is always right and whatever they say is Gods word and can't be disputed or change; pay X+9 and LIKE IT :eek:

You MUST go to the GM. I cannot believe any sane hotel manager faced with the current economic climate would turn down business for an adidtional $9 per night.

As an aside--my one major objection to RI is the significantly reduced points accrual. When you're talking about nights exceeding 100, that is a huge amount of "lost points".

You do not mention which brand the competing option is affiliated with--but you may want to check into an elite status match.

Thanks for all the responses, many were in line with what I suspected.

As for cost, while it makes sense that short term guests cost more for the hotel, we are talking about $34 per night. Over 4 nights that's $136 and I'm 99.99% sure I'm not going to get $136 in extra benefits. Also, I did not ask them to grant me the 5 day rate for 4 days, I was willing to give them most of the difference back.

As for me, here is my position. I have top level status in 2 chains and mid level in a 3rd. This area has a ton of competition in this immediate area so I have lots of choices which makes their decision even more amazing (and the parking lot looked empty at 6 PM on a Wed night).

So I figure either the hotel didn't want to do business with me, Marriott has some insane policy in little print or their employee training is abysmal and in any case, perhaps I'm not so interested after all. If their training for business is so bad, what else are they not doing at that hotel. Don't need to sleep with one eye open, too many other things to occupy my time ;-)

In a month or so I might drop Marriott a note with dates, nights and spend rate at other hotels and see if the rule really exists or if it is swamp gas in that location. If so, I'll report the response.

At least I can sleep tonight knowing I'm not having brain fade ;-)

Wait, getting a 2nd thought. If they have no guests, they don't need to cook breakfast .... or run the heat .... or have cleaning staff .... or keep the pool clean ...... what an amazing cost savings that would be. It's all clear now!

I do believe you're being a little harsh here, the extended stay brands do train their staff that extended stay guests are their focus, guests recieve discounts based upon their length of stay because the hotel has a lower cost of doing business when guests are staying longer - while I can appreciate that you feel the discount should be applied to short term stays as well that simple isn't the brands business model (yes it might make sense for the hotel in your situation to extend the discount, I can't speak to that)...to claim the training is faulty without having a complete understanding of the brands business model though is.....

With all due respect Socrates, the business proposition put forth by the OP is a no-brainer. And it's really not "short term" versus "long term". It's repeated four night stays as opposed to a single five night stay. I agree that training might not be an issue, but common sense might be. A front desk person when presented with such a business proposition that would give the hotel many, many nights should, at the least, put the customer in touch with the general manager before turning down the proposition cold.

Here's where I guess we'll have to differ - the major chains (Marriott, Hyatt, Hilton) have always trained their teams to have the strategies correctly loaded into the CRS systems, as long as the correct strategy is set then there shouldn't be a reason to speak with any specific person for a transient stay....so assuming the hotel is setup correctly in the system then yes the discount for a 5 night stay is correct (remember, hotels can't make up lost opportunities through additional volume as their inventory is fixed and perishable)

I'm a self-employed business owner. Normally I work in LA/OC (er, LAX/SNA, this is FT!) but due to the economy last year I've been chasing checks in disparate places like SLC, SAN and now SFO 'cause that's where the money's been. I've been staying in Marriotts (despite being Starwood Gold via my AmEx) because of better/closer locations and better prices.

Since my hotel stays have all been out-of-pocket I try the AAA rate and some of the rate codes listed here, but what's been working best for me is like many have mentioned here, going to a GM, asking "I'd like to stay here at your property for work 4-5 nights/week for several months. I'll be paying out-of-pocket; can you do anything for me?" and getting a decent (enough) rate that way.

(I say "decent enough" 'cause all the CY/FI/TP closest to the clients are all full up with visitors of the businesses in the area whose companies will pay higher prices. $160/night AAA-rate FI, anyone?!)