What do you think of this (re: Income vs. Loyalty)
Mar 21, 2005, 11:31 am
#1
Original Poster
Join Date: Sep 2004
Location: Houston, TX
Programs: United 1K MM, Marriott Platinum, Starwood Gold
Posts: 265
What do you think of this (re: Income vs. Loyalty)
I was speaking with the Director of Sales at the San Juan Marriott about prices for their very loyal customers. There are individuals that spend 50 to 200 nights a year at this location alone, but the property will not give these people discounted rates.
When I asked for an explanation she told me that San Juan is a different market and the only discounted rates the hotel gives is for corporations at guarantee 7,000 nights.
She went on to say “if we can get a higher rate for a room we will take it, loyalty doesn’t matter.”
While I admire her honesty, I guess, I could not believe what I heard. I am at the lower end of the people I talked about (only ~75 nights this year), but I would not be happy if I was the guy that had over 200 nights there.
Is this normal operation in a tourist area?
When I asked for an explanation she told me that San Juan is a different market and the only discounted rates the hotel gives is for corporations at guarantee 7,000 nights.
She went on to say “if we can get a higher rate for a room we will take it, loyalty doesn’t matter.”
While I admire her honesty, I guess, I could not believe what I heard. I am at the lower end of the people I talked about (only ~75 nights this year), but I would not be happy if I was the guy that had over 200 nights there.
Is this normal operation in a tourist area?
Mar 21, 2005, 1:07 pm
#2
Join Date: Nov 2004
Location: Denver
Programs: AA PLT 3.8MM, UA 1k, Marriott Plat, SPG Plat
Posts: 231
Anyone doing 200 nights in one hotel is probably there on business and they are not paying with their own money.
I think most elites in hotel programs travel on business, ie other peoples money, and only get concerned when a hotel is out of their firms budget and they cant "get their points".
That is especially true for many on this board and on FT in general. We all are willing to pay more for the hotel we collect points in even if it costs more as long as our firm / client is going to pay for it.
If we travel on our on dime, its usually using those points or the best deal out there, ie priceline, etc.
I think most elites in hotel programs travel on business, ie other peoples money, and only get concerned when a hotel is out of their firms budget and they cant "get their points".
That is especially true for many on this board and on FT in general. We all are willing to pay more for the hotel we collect points in even if it costs more as long as our firm / client is going to pay for it.
If we travel on our on dime, its usually using those points or the best deal out there, ie priceline, etc.
Mar 21, 2005, 3:43 pm
#3
Join Date: Apr 2002
Location: USA
Programs: AA MARRIOTT Lifetime Plat Premier ; Marriott Vacation Club
Posts: 1,650
I agree with boca.
The majority of elites are business travelers and a large slice of these folks travel on the company's dime. So there's really no incentive for any chain to reward or discount just on volume stays alone, and I don't disagree with the logic given in San Juan as the idea is to make money.
But this is not to suggest that chain loyalty does not sometimes count. We're leisure Marriott travelers. Although we only do some 20 to 30 hotel nights a year, we accumulate a few nights at a couple of properties that we visit two or three times a year. During one of our stays in Baltimore to watch an Oriels game, our repeat visit is acknowledged and we're moved up to the concierge floor. Same thing happens in Florida. Now I realize that this is only because there were open rooms that night, but some properties do indeed implement their own little perks for folks who return to a specific property. It's not a guarantee, but still, it's a nice gesture. I like to think that it's the Marriott way.
Barry
The majority of elites are business travelers and a large slice of these folks travel on the company's dime. So there's really no incentive for any chain to reward or discount just on volume stays alone, and I don't disagree with the logic given in San Juan as the idea is to make money.
But this is not to suggest that chain loyalty does not sometimes count. We're leisure Marriott travelers. Although we only do some 20 to 30 hotel nights a year, we accumulate a few nights at a couple of properties that we visit two or three times a year. During one of our stays in Baltimore to watch an Oriels game, our repeat visit is acknowledged and we're moved up to the concierge floor. Same thing happens in Florida. Now I realize that this is only because there were open rooms that night, but some properties do indeed implement their own little perks for folks who return to a specific property. It's not a guarantee, but still, it's a nice gesture. I like to think that it's the Marriott way.
Barry
Mar 21, 2005, 3:50 pm
#4
Join Date: Jan 2005
Programs: UA 1K; SPG Plat; Hyatt Diamond
Posts: 2,179
I was shocked that on only my third stay at the Mayflower in D.C., I was moved to a SUITE on a $99 rate! Some properties *do* care 
Mar 21, 2005, 4:54 pm
#5
FlyerTalk Evangelist
Join Date: Feb 2000
Location: Winter Garden, FL
Programs: Delta DM-3MM United Gold-MM Marriott Lifetime Titanium Hertz President's Circle
Posts: 13,498
How in the world did you get a $99 rate at the Mayflower?
Bruce
Bruce
Mar 21, 2005, 5:15 pm
#6
Join Date: Jan 2005
Programs: UA 1K; SPG Plat; Hyatt Diamond
Posts: 2,179
Originally Posted by bdschobel
How in the world did you get a $99 rate at the Mayflower?
Bruce
Bruce
Mar 21, 2005, 5:27 pm
#7
Join Date: Jan 2005
Location: NY
Programs: Marriott Gold, UA Nobody, Hertz Gold, Avis Select
Posts: 786
Some things to consider
Discounted rates depend on several factors...
One, it's the sales managers or the general managers discretion...
Another one is the ability of the company to negotiate...
Another one is availability...Why discount something that can be filled up with rack rate people?
Perfect example...
2004 my company had a negotiated rate with one of the Courtyards. 2005 our company tried to negotiate for a discounted rate (rack rate is 199$) and the Courtyard and our company did not reach an agreement. Now we can either pay 199$ or find a cheaper hotel. I spoke to the General Manager and he agreed to give me and my coworker a better rate than 199$. When talking to the GM, I was told that the corporate rates were going up because this location is quite busy with business travellers, and I'm assuming that my company chose not to agree on the higher rate (the jump was about 30$ a night). Did the GM have to give us a better rate? No of course not. Did we have to stay at the hotel? Of course not. So in my opinion we both win. He gets my business, and I stay at the same hotel which is much closer to the client's site.
One, it's the sales managers or the general managers discretion...
Another one is the ability of the company to negotiate...
Another one is availability...Why discount something that can be filled up with rack rate people?
Perfect example...
2004 my company had a negotiated rate with one of the Courtyards. 2005 our company tried to negotiate for a discounted rate (rack rate is 199$) and the Courtyard and our company did not reach an agreement. Now we can either pay 199$ or find a cheaper hotel. I spoke to the General Manager and he agreed to give me and my coworker a better rate than 199$. When talking to the GM, I was told that the corporate rates were going up because this location is quite busy with business travellers, and I'm assuming that my company chose not to agree on the higher rate (the jump was about 30$ a night). Did the GM have to give us a better rate? No of course not. Did we have to stay at the hotel? Of course not. So in my opinion we both win. He gets my business, and I stay at the same hotel which is much closer to the client's site.
Mar 21, 2005, 5:55 pm
#8
Join Date: Feb 2004
Posts: 138
me too
Originally Posted by boifromtroy
LOL. Off-season weekend. Marriott was the host chain for the BCA Football classic and had promotional rates for people attending the game. I also got a similar rate there for a Friday night in December once. Have to be lucky (and Congress out of session, I suppose).
I also got that rate there one weekend and was updated to the biggest suite I've ever stayed in - they even threw in 2 $10 gas cards from Mobil or something that were part of the promotion! Didn't bother to think about the reasons why it was so low but certainly jumped on it when I could - it was in the fall sometime a couple years ago but that's all I remember. Then there was the time I paid $350 to spend about 6 hours there on short notice in a tiny room. So maybe I had one coming.
Mar 21, 2005, 5:59 pm
#9
Join Date: Jan 2005
Programs: UA 1K; SPG Plat; Hyatt Diamond
Posts: 2,179
Originally Posted by wingsfan
I also got that rate there one weekend and was updated to the biggest suite I've ever stayed in - they even threw in 2 $10 gas cards from Mobil or something that were part of the promotion! Didn't bother to think about the reasons why it was so low but certainly jumped on it when I could - it was in the fall sometime a couple years ago but that's all I remember. Then there was the time I paid $350 to spend about 6 hours there on short notice in a tiny room. So maybe I had one coming.
Come to think of it, I think I was supposed to get some gas card myself there once. Hmmmm...