Hi clarkef, I might be dense this late at night (traveling in Europe) but I don't quite grasp this.

Let's say Marriott ABC needs to sell 5 more rooms a night to meet occupancy rates.

Do they actually look at corporate occupancy rate history and say "we will extend this to IBM, because they usually book 5 rooms, but not Accenture, because they normally book 9 rooms" based on previous bookings?

I probably am dense but do not totally understand what the example is that is provided.

You got it right. When IBM and Accenture come knocking to negotiate the room rates. IBM is in the better negotiating position. By extending the rate to IBM, Marriott ABC gains some revenue from rooms that it didn't expect to sell. However, if it extended the rate to Accenture instead of IBM, it gets the cheap revenue from those five rooms, but it also has to extend the cheap rate for another 4 rooms that it anticipated that it would have been able to sell at a higher rate.

Some math (very simple case)...

Suppose most rooms sell at $200/nt and the hotel had 5 empty rooms on average. It's happy to sell those rooms to IBM at $100 to get an extra $500.

Thus the nine rooms in question made (4*200) + (5*100) = $1300

However, if Accenture gets all 9 rooms for $100, then the hotel only made $900.00 for the nine rooms in question. Clearly, even though IBM needs fewer rooms, it represents the more profitable deal for the hotel. For Accenture to compete, the hotel would actually give Accenture a rate of $144.

Now, if 4 additional people misuse the IBM rate bringing the total number of IBM rooms up to 9 per night, the hotel had expected to make $1300, is only making $900. Thus when its time to renegotiate, the hotel will quite possibly extend IBM the Accenture rate of $144.

So surprising enough, misuse of a rate is harms both the hotel and the rate holder.

Anyone can use "Corporate" rate without ID, Special Corporate rates require ID- regardless of brand (there are 2 different systems, 1 for es/ss and 1 for fs) the front desk does see the rate your on, in this case IBM and they would know to ask for an IBM ID

Exactly - people are often confused by fixed inventory economics

This replier suffers from the "World According to Garp" syndrome. I tend to suffer from it myself, now and again.

Whatever is okay in his/her book, is okay for the rest of the world to do. But, whatever he/she thinks is NOT acceptable, it is NOT acceptable for anyone else either. Screwy standards based on justification of what one feels is okay to do him/herself and no other consideration used. Period.

Or, also know as, the "World According to Garp" syndrome.

Ha!

Dawn

Here we go again.

The easy way to know, if you are booking online, is whether you select any one of the "special rate" radio buttons (AAA, Senior, Govt, Corporate / promotional code). If you do, you are requesting rates that you may need to provide proof of eligibility. If you go another step further and enter a 3 digit code into the "Corporate / promotional code" box, you are even more likely to be challenged, as you are now in clarkef's example. (assuming it's either a "random" set of digits trolling for cheap rates or a specific company's 3 digit code... there are plenty of "public" codes one can try, see the Sticky)

Personally, I don't feel comfortable using a corp code that I have no right to use. I know the front desk rarely asks, but I'd hate to be that guy with no explanation when they do ask.

There are a lot of gray areas in all of our travels. The airlines and hotels have set up complicated systems and we learn to play the gray areas to our own advantage. But outright misrepresenting myself to get a better rate seems to cross the line. JMHO.

when you book a rate, pretty much every rate whether its a generic corp, aaa, govt or *insert company code here* you get to a point where rate rules is a pop up window

these will give the cx policy, the extras like b/f etc.. and it also says this rate requires Id or it will not state anything.. based on this patter it can be argued that not stating any ID requirement allows for anyone to use it where as requires ID would indicate you must have an ID to use the rate

example

corporate (generic rate mentioned by socrates above) shows the following for a hotel I just tried for a random weekday date in a large city

Holding Your Reservation
We will need a credit card number to reserve your room.
Canceling Your Reservation
You may cancel your reservation for no charge until 4:00 PM hotel time on January 29, 2009.
Please note that we will assess a fee of 238.40 USD if you must cancel after this deadline.
If you have made a prepayment, we will retain all or part of your prepayment. If not, we will charge your credit card.

This fee equals 1 night of your room charge plus tax (for the first night of your reservation).

Modifying Your Reservation
Please note that a change in the length or dates of your reservation may result in a rate change

now using AAA

in addition to the above this is an added line

When You Check-in
Please be prepared to show proof of eligibility for your rate (such as a membership card, corporate or government identification card, or proof of your age).

now using corp code *xxx*

same as AAA

now using corp code *xxy*

that ID line is missing and is no where to be found anywhere in the reservation process.. no where

going back to what I said.. this would indicate that corp rate xxy is something that could be used by anyone or else they would have put in the ID requirement either in the rate rules or at least in the box under the rate rules that says the corp name such as

xxy rate, includes airport transportation

vs this rate

xxx rate, Self Parking $xx, company ID required

Incorrect IME. I've been asked for my AAA card probably twice in my life when using AAA rates (I am a legit member.) I have NEVER, not once, ever, been asked for corporate ID for using a corporate rate for a local company, and I've used several corporate rates for company's that I've contracted for (with their blessing.) Seriously probably 10 or 12 different corporate rates in the last 2 years or so. Including at least one property (twice) with a sign hanging at the front desk that stated "All guest using corporate rates will be asked for ID to show their eligibility".

Yup. Forget London properties being made into a stickey, I'd like to see this entire topic made into one

Cheers.

although that was not my post you are quoting; i'll take a stab at what he was trying to say

I think he is saying that corp rates in theory should increase your chances that you will be called on the rate (show ID) vs. generic rate codes like AAA where almost everyone has a AAA card. My two extremely devalued MR points are that the following order in most likely to get carded to least are

1. Marriott employee/friends etc
2. Govt (by far and a way)
3. Sr AARP etc if you don't look it
4. Cards like Entertainment
5. corp travel like airlines etc
6. generic corp codes
7. publicly listed which shouldn't have any carding since its not applicable

I am attending a meeting of a gov agency next month in DC, as an expert to help judge some research proposals. We've been told "make your own hotel reservations and they all offer the gov rate" (which is $209). The hotel says "proof of gov employment or gov travel orders required". Anyone have any idea what proof I need for "travel orders?" All my interaction so far is by email with program managers - would be pretty easy to fake if I were so inclined.

Related to a previous post, when requesting special corp rates (a specific company, my client, whom I was visiting) at the Marriott in downtown Philly I was politely asked for some evidence (it was a very good rate). Printout of some correpondence and the name of the person at the local company sufficed. I was not at all put out by being asked for such. (Client was going to reimburse me in any case, but they'd asked me to use their rate - which is also normal).

Marriott requires that you be an actual government employee, so it is unlikely you'd get the gavernment rate in the situation you describe. My husband has a CAC card (contractor) and orders from the Army (a PDF file with a seal which he prints out and carries with him) for every trip he makes. The orders state his departure date and city and his return date and city, as well as the fact that he is entitled to government rate and discounts on travel for the trip and the military bases he will have access to on the trip. Not good enough for Marriott, he is not eligible for the gevernment rate.

Thanks for the info! In my case next month, the hotel is a Hilton (I asked here because I saw the relevant topic and had some experience to relate, hope that doesn't make me too OT) and says gov employee or with travel orders and I'm sort of wondering whether "travel orders" means something official or other. They have a separate rate for gov contractor. I'll call the hotel and ask them.

thanks!