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Issues involving foreign exchange conversion rates

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Issues involving foreign exchange conversion rates

 
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Old Dec 6, 2005, 10:15 pm
  #16  
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Well I look at my bill to make sure it's accurate.

But when I'm overseas it usually shows at check-out the local rate (which w/ my travel patterns is normally GPB or Euro) - ie, 55GPB. I look at that & go ok that matches. Then when the cc bill comes & the US amount is shown I go fine, that must have been what the exchange rate + the cc fee turned out to be.

I don't think it ever occurred to me to try & figure out what the exchange rate was at the time of booking & check-out to see if they were the same or something like that. It is what it is, and is obviously beyond my feeble (now champagne-induced) mind.

I get reimbursed by clients for overseas travel, so whatever it comes out to in $$ on cc is what they're charged. But in fairness that's the same for me for personal travel too.

PS - if the hotel is just putting the charge through to the cc, isn't it the cc that 'plays around' w/ the exchange rate & not the hotel? And I thought most cc's checked the bank daily rate.
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Old Dec 7, 2005, 5:56 am
  #17  
 
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Originally Posted by SkiAdcock
But when I'm overseas it usually shows at check-out the local rate (which w/ my travel patterns is normally GPB or Euro) - ie, 55GPB. I look at that & go ok that matches. Then when the cc bill comes & the US amount is shown I go fine, that must have been what the exchange rate + the cc fee turned out to be.

I don't think it ever occurred to me to try & figure out what the exchange rate was at the time of booking & check-out to see if they were the same or something like that. It is what it is, and is obviously beyond my feeble (now champagne-induced) mind.
It doesn't matter what the exchange rate was at time of booking. Even if you did an advance purchase, or advance deposit. In that case all you need to see is that they credited you the number of nights you paid for and that the room credit for nights paid is the same as the room charge - they should be offsetting amounts on your bill.

Actually, with regard to figuring exchange rates out when inspecting the exit folio, I was referring to places that quote in one currency and then charge in another. Like Budapest quoting in Euro and then charging in HUF. The folio will show the amount in local currency that one is being charged. So if I am quoted a room rate 150 €, when I go to check out the room rate charge should be somewhere around 37,787.44 HUF based on current exchange rate today. Well we all know that exchange rates, or more specifically in this case the buy rate, is always to our disadvantage so it would not be unexpected to be charge as high as 38500 IMO. So if your folio says 40,000, then I would speak with the manager.

Checking out of hotels in countries where the quoted rate at booking is in the same currency as the rate you are being charged at check-out is not a problem. The only thing to check is that you were charged the proper amount. So countries like GB and Euro countries, which is your case, wouldn't matter from the perspective of what the hotel charges you as there is no currency conversion taking place. Now, exchange rates that your CC charges is a whole other story and one not really pertinent to Marriott Rewards forum. And, unfortunately another fact of life with regard to international travel. The prices we pay to go exploring; but it sure is fun.

Last edited by aaupgrade; Dec 7, 2005 at 6:00 am
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Old Dec 7, 2005, 12:26 pm
  #18  
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Ah got it. Thanks for the explanation aaupgrade. Cheers.
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Old Dec 7, 2005, 1:54 pm
  #19  
 
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The Marriott's website used to have a currency converter that has the latest exchange rate. I don't seem to be able to find it now. Any help would be greatly appreciated.
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Old Dec 7, 2005, 2:33 pm
  #20  
 
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When you get the Select Rates page there is a Currency Calculator >> hyperlink in the right frame.
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Old Aug 29, 2006, 8:30 am
  #21  
 
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"Hotel exchange rate" scam

I stayed at the Marriott Moscow Royal Aurora over the weekend, and was subject to a fraud that I had never seen before. The hotel rate was quoted in U.S. Dollars. When I arrived, they told that they had to bill me in Russian Roubles, which is fine, but subject to the "hotel exchange rate" of 1 USD = 32 RUB. The real exchange rate is something like 1 USD = 26.8 RUB.

So this effectively raised the room rate by 20%. We all know about hidden "service charges" and other ways that hotels nickel-and-dime us, but this seems especially sleazy. I guess it's not uncommon; it occured to me that this was probably the first time that I had stayed at a hotel outside the U.S. and had the rate quoted in U.S. Dollars. I am sure that the hotel will say that this is due to exchange-rate volatility, or to cover administrative costs, or due to Russian regulations, or give some other phony excuse. (The exchange rate has remained quite stable for the past year.) We'll see what corporate Marriott says.

Perhaps I should have demanded that if the "hotel exchange rate" was 1:32, then I should be able to exchange my U.S. currency at that rate.
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Old Aug 29, 2006, 8:46 am
  #22  
 
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Did you speak with the manager? If so, what did he say? I think pulling out $1000 and asking for 32000 Rubles in his presence might have at least made your point, even if it didn't result in change (which it probably wouldn't). It is amazing how conveniently stupid people become when they are confronted with reality.

Yes, I would complain to Marriott corporate. While local issues like this are out of their control, at least they are mode aware of what is going on and perhaps they can do something if it is only some additional MR points.

Also, when your CC bill comes through showing the actual exchange rate, make sure to contact MR and get the correct number of points credited to your account based on the actual $ spent at the property.
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Old Aug 29, 2006, 8:54 am
  #23  
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That is odd - for some reason, that property quotes rates in USD. I spent a week in Moscow years ago and paid for a much cheaper hotel room using dollars, but I would think that Marriott in 2006 in Russia would be using rubles.

If they quote you in USD and allow you to book your reservation that way, then they should charge you in USD. Or, like most international hotels I've stayed in, they should quote you and bill you in local currency.

100% in agreement with you: you and Marriott already agreed on a price point and a currency. That's what you should be billed.
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Old Aug 29, 2006, 9:06 am
  #24  
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Originally Posted by pinniped
That is odd - for some reason, that property quotes rates in USD. I spent a week in Moscow years ago and paid for a much cheaper hotel room using dollars, but I would think that Marriott in 2006 in Russia would be using rubles.

If they quote you in USD and allow you to book your reservation that way, then they should charge you in USD. Or, like most international hotels I've stayed in, they should quote you and bill you in local currency.

100% in agreement with you: you and Marriott already agreed on a price point and a currency. That's what you should be billed.
Ive booked countless Hotels on line at all the Majors depending on the Country it will many times be Quoted in US$, however at checkout they dont accept the US$ but the charge is in their Local Currency, all the booking did was to let me know the equivalent in US$ that I will be charged but that I must pay in Local Money.

Then the fun begins as with the OP who was hit with FEX fees. Once when I wanted to pay in Cash they actually told me that I would get a worse rate for Cash and that they would have to charge me Twice, for fees Out of the US$ into Local and then again from Local into the US$. It was less expensive leaving it on my CC.
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Old Aug 29, 2006, 10:48 am
  #25  
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Originally Posted by craz
Ive booked countless Hotels on line at all the Majors depending on the Country it will many times be Quoted in US$, however at checkout they dont accept the US$ but the charge is in their Local Currency, all the booking did was to let me know the equivalent in US$ that I will be charged but that I must pay in Local Money.
The only time I've had it happen to me recently was Mexico. Everywhere else (in the past few years, anyway), I've been quoted in pounds, Euros, or whatever and paid in the local currency, regardless of whether I used cash or a credit card.

At the major hotels I always use a CC; at a small B&B I'll usually give 'em cash - I know it saves the owner a couple percent of the total and the net cost to me is roughly the same whether I use cash or the SPG Amex. (That is, Amex's FX juice is roughly equal to my value for the points.)
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Old Aug 29, 2006, 11:00 am
  #26  
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pinniped, I run into this alot in Latin & South America, I guess with their local currency bopping all around the place that they could lose alot if it wasnt pegged say to the US$.

So the day one makes a res say its website says its 1000 Kins for the night and that equals $100. Then when you get there the local currency is now 1500 per $ so now it will cost You only $75 for that room. Yeh it can go in reverse also where the Hotel will gain cause the Local currency got stronger against the $ but they know it will usually go down against the $. This way they will be able to charge $100 worth of the local Currency no matter where its trading at the day you have to pay.
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Old Aug 29, 2006, 2:00 pm
  #27  
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Originally Posted by craz
So the day one makes a res say its website says its 1000 Kins for the night and that equals $100. Then when you get there the local currency is now 1500 per $ so now it will cost You only $75 for that room. Yeh it can go in reverse also where the Hotel will gain cause the Local currency got stronger against the $ but they know it will usually go down against the $. This way they will be able to charge $100 worth of the local Currency no matter where its trading at the day you have to pay.
Yeah, I get that side of it - you've basically described any transaction taking place anywhere in the world between a merchant and a customer from another country. Markets fluctuate, and some are more volatile than others.

I also get why hotels might want to transact business in what they perceive as a "stable" currency, given that they book rooms up to a year in advance. But if they do that as a way to reduce risk, they shouldn't be allowed to later change their mind and jam the customer with a bad exchange rate. If they quote in dollars, they should complete the transaction in dollars.
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Old Aug 29, 2006, 2:46 pm
  #28  
 
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When we travel internationally we use either a CC or directly convert US dollars into local currency at a bank or AMEX office. CC's will charge the true local cost and then automatically convert at what the bank rate is for that day. When you try to exchange at a hotel or resort, you can expect variances of up to 15% at times. We've come to appreciate exchanging currency at AMEX offices. Their rates tend to mirror the bank rates and they have better hours.
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Old Aug 29, 2006, 3:01 pm
  #29  
 
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This is true of so many other places where the currency is not a strong currency (i.e., YEN, EURO, STERLING to name a few). The problem is that hotels and the travel industry have a rate for local currency against a strong dollar. One of them is the IATA dollar rate. The hotel did charge you at a flat dollar rate US, however the exchange rate is fully variable. Nothing you can do I believe. By the way what will you do with the extra 3% charged by the Credit Card
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Old Aug 29, 2006, 3:28 pm
  #30  
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I had the same thing happen to me in Brazil. Stayed 10 nights at Marriott in Rio over New Years. I reserved in USD and upon check out, I wanted to pay in USD cash but the hotel said I couldn't. They exchanged the rate into local currency at a 30% premium! I contacted MR corporate offices when I got back. In the end I got a credit of over $400 back on my credit card.

Marriott should give guests the option when making a reservation for all over-seas properties to be able to quote and reserve in local currency.
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