I agree. Relying on "ethics" to stop people from swapping discount codes over the internet won't work. If you want to stop the practice, just verify the guest's credentials at check-in.

Otherwise, I don't think it's "fraud" or a "crime" to use them. If the hotel doesn't want to verify, it's just part of the rate game. And a game it is.

Good answer. As a sales manager, I've often had to describe the concept of "perceived value" to eager sales people willing to give away the farm to close a deal. As a businessman, I know that I certainly wouldn’t want the person selling rooms for $20 to work for me if I ran a hotel. However, the person who could talk a hotel into giving away a room for $20 would be quite a catch.

I never use codes that I'm not entitled to use, these are the codes that are clearly only for use by employees of a certain company and shouldn't be published here in the first place.
However some codes seem to apply to the general public (otp, lpr, xml etc) and should be listed on the Marriott web-site or even better, the rates should show up when doing a search. This would make life so much easier.

A sad statement on our society.
 

What is wrong with us that we cannot rely on "ethics". This no different than stealing and not getting caught. Marriott has rates with with companies for their employees based on a number of factors. Using those rates posted on the internet is not different than using someone else credit card posted on the internet. What happened to ethics in this nation. :( :mad:

Democrats and liberals........ :D

Birds of feather stick...........

Could it be that the reason that the reason they don't usually ask for ID for the rate is that they'd rather just FILL THE EMPTY ROOM at a profit at x number of dollars less than the rack rate? The customer is standing in front of them , has found them, has a confirmed reservation, is ready to have a great time and sing their praises if treated half-way decently. Everybody's happy. Has anyone ever been succesful at getting significant discounts at a time when they know they are going to be full anyway?
my guess is that they are all doing just fine , thank you, thanks to computer-driven revenue management. just IMHO.

Depends on your line of work. I'm an attorney and the identity of my clients is as confidential as the matters which I work on.

I agree 100 percent that the use of a rate code that you know you are not entitled to is simply wrong. Its lying for one's own personal greed and self-interest.

That being said, I didn't understand Marriottguys' analysis and perhaps he can explain it. It's obvious how using a discount rate code hurts Marriott. What is not obvious to me is how it hurts the company or prevents it from receiving equally favorable treatment the next year.

My understanding is that rate codes a based upon volume of business. The more business, the better the code. If someone uses the rate improprerly, (and I am NOT advocating that), the company just has a higher volume and perhaps greater bargaining power. Please explain.

i always thought that hotel discounted schemes were basically based on the min. number of bookings expected. more rooms booked means a better rate.

For someone like marriot guy who i assume to be a marriot employee to post what he did sounds a bit "self-interest" on the part of marriot.

Well then it should be no problem. Either in advance, or when checking in, just tell the front desk person that you reserved at a corporate rate that you're not entitled to, and ask if that would that be okay.

Perhaps the looming question is that the best rates should be made available to all customers.

And, of all the rates, I suspect that AAA should be the best in that it would likely produce the most volume!

I can't remember where/when it was posted or by who (although I'm certain it was from someone with a Marriott "connection" or a "connection into Marriott") that the reimbursement rate for a room occupied by an MR member who redeemed points is something like $15. a day (or another very low figure).

If you owned a hotel, would you rather receive $15. to cover the housekeeping for a reward stay or something more from someone who you think might be "cheating" taking advantage of a corporate account's rate which he/she is not entitled to use.


If that's correct it could, at time, result into less inventory being available and some number (can't quantify) of MR members being unable to redeem points or being forced to redeem them off the "anytime point schedule."

And, I suppose it could cause the non-availability of any rate other than rack.

clarkef (and trekkie to a degree).

This is true that this does increase the total volume of room nights and overall revenue spent at a location. In addition to rate and other negotiated items that have already been listed (included the next one), is if the rate has 'Last Room Availability' (LRA) or Non LRA (NLRA). Like any other business that deals with capacities, X number of room nights can be absorbed at a certain negotiated discounted rate. If in a given year if projections (agreed upon by both the property and client) are extremely out of balance (assuming this is a LRA account), then believe me that is figured into the negotiations for the following year (either the LRA status of the code or the actual rate). Like other businesses as well, a displacement analysis is completed based on the stay pattern of the account.

Marblesdad - rate/value integrity is extremely important (hence the best rate guarantee). I have let pieces of business go to the competition seeking a rate that really doesn't fit into our rate/value range or strategy. I know they may find a lower rate out there, but that lower rate will get them a product of equivalent value (lower). At my property, the directive is to sell at the desk what we are selling online, through in-house or central reservations - there is no negotiating. The thoughts driven to the front line associates is that we have a great product and service and are prices as the best value in the market - not necessarily the lowest. The nice thing is that there is a solid line of Marriott brands that we hopefully can refer to to meet the guest's needs/budget for that trip.

Hope this helps out. Thanks.

Great point! This shows the other side of the coin.

Often times promotional offers that ARE available to the general public or a broad spectrum of easily identifiable categories(i.e. MR Elites) do NOT appear on the website unless you specifically enter one or more codes. Is Marriott now committing fraud and overcharging their guests by not mentioning rates they are otherwise entitled to?

This thread has been very interesting and I appreciate Marriott_Guy's insight in to the negotiations behind corporate rates.

I just had a consulting assignment at a large retail company (staying at their corporate rate, thank you :) ) and I met one person that worked in their Loss Prevention unit. I learned that they have the means to track customers to spot abuses (excessive returns, credit fraud etc.). While they could go after all of the customers their systems flag, they realize that there is a fine line that should not be crossed. You can go after the bad customers but if you go after the good customers by mistake, you are generating a lot of ill will that cannot be easily undone. I'm sure that Marriott, as a corporation, takes a similar stance. ;) Correct me if I am wrong.