Friendly Traveling Deathmerchant

Today, I booked my first hotel stay in almost two months (!)
Just a a one-nighter in Waco, TX. (Need to rescue a family member, so, yes, it's essential, Karen.)

But while I was on the MVP site, I wandered through all my upcoming (potential) travel. Trade shows in Vegas and Denver; rescheduling a now-postponed family trip to Thailand; some more Texas stops; and of course my habitual, good-for-the-soul-Hawaii pop-ins.

Aaannnnnd.... I didn't really see any screaming deals. Pretty much same rates you'd expect if there wasn't a global crisis slashing prices in some markets such as gas and airfares.

Has anyone seen areas of the world, or particular hotels that have cut prices to attract bookings for future stays? I'm pretty flexible in where I'm going, always up for something new, but it would be great to be able to carpetbag and take advantage of some deals during this time (edit for clarification: for future stays), as well as help out underutilized properties with a cash infusion.

Any deals you've stumbled upon?

muzthe42nd

That's about the most appropriate username to be asking that question! Not at all ominous.

I've noticed that most hotels are not panic dropping rates for a few months out yet. The lower rates are very much in the short term, as they hope demand increases by the time people are allowed to travel again.

writerguyfl

Seems as though most hotels recognize the fact that you are the outlier. The overwhelming majority of people are following the governmental guidelines and avoiding all unnecessary travel.

As such, many hotels know that dropping prices isn't going to stimulate demand for travel. Lowering prices only results in losing a portion of the money of people that absolutely have to travel right now. After all, if you have to travel, you are likely to pay the "normal" rates because you have to have a hotel room.

Now is not the time to be taking non-essential trips to see new places.

LondonElite

For the most part, the only people traveling are on essential business. There is no elasticity in pricing since those people will be paying the going rate. No need to pander to deal seekers by buying demand.

dlaue

HGI Waikiki, $111/night (plus, of course, the irritating "resort fee"). Of course, you will have to risk being quarantined for 14 days.

arlflyer

I agree with the above that the main business reasons preventing this are 1) ability to take price on inelastic demand from essential travelers and 2) desire to avoid driving high volumes at low margins, which basically leads nowhere.

In addition to those, I would also offer this: there is potential legal exposure in enticing people to break mandated lockdown rules and travel. Exceedingly low prices could be seen as along the lines of an "attractive nuisance" and could draw attention from state and local legal authorities, as well as any guests who get sick. Having your property become home to a cluster of "super spreaders" because you offered $30 weekend rates probably isn't the best look from a marketing perspective, nor is it likely to make the lawyers happy.

I'd imagine that the deals, if they are to come, would be seen when everyone (or at least most) is free to start moving again, hotels feel confident in staffing up their operations, and all of the traditional pricing / promotion levers can start being pulled.

azepine00

Texas opened malls, restaurants and movie theaters... without getting into pros and cons imho hotels offer far more social distancing than any of those...

Internationally offers are beginning to pop up (credit to loyaltylobby posts) :

Six Senses Uluwatu, soon IHG Rewards Club participating, has launched a fantastic offer to get guests stay and cash in during these difficult times.When you book and pay one night, you can stay two while booking three nights, gets you a week. The hotel also gives you 40% F&B discount and complimentary airport transfers.

Fairmont hotel in Dubai has an excellent offer for those living in GCC-countries. You can get the AED 500 room rate back in F&B credits. The offer is valid for stays through October 3, 2020

NYTimes had a small piece on GC approach to deals two weeks ago: https://www.nytimes.com/2020/04/16/t...et-travel.html

From hyatt forum at Hyatt Centric Hong Kong: Bed & Breakfast rate at HKD 594 for the foreseeable future

Friendly Traveling Deathmerchant

Yeah, I should clarify my original post: I'm looking for deals for future travel, not during emergency times. I *did* state my quick emergency hop THIS month is an unusual/essential one, and haven't traveled since the COVID shutdown. While I have a letter from the Governor of my state authorizing my travel as essential infrastructure personnel, but I do not WANT to travel yet.

I certainly thought of and agree with the shared consensus above about "no reason to discount prices as the few people that will travel: no reason to give away those profits / won't generate more bookings, just losing money on the few that are coming in." However...



...right now, if, say, an essential healthcare worker, etc. needs to get a room in the small Texas city where I need to be: I see a $79 Hampton and a $126 Holiday Inn Express. Obviously I'd be going with the Hampton for the cash price alone, plus the points, and right now there's no reason to go with HIX even if I like their breakfast better (I'm assuming not much in the way of breakfast benefits right now at either property.) So, Hampton is winning essential traveler's business due to their discounting right now. (I usually pay $120 or so at this property).
Even though very few people are traveling, the Hampton revenue manager must have set the prices to still attract the small pool of potential travelers, and thus, they won the stay vs. the HIX.

Regardless of whether it makes business sense, there's always going to be businesses discounting things because they want to give it a go. There's a restaurant down the street from me giving some awesome takeout deals: I didn't set those prices, they did, but I'll take advantage of that, tip heavy, support their efforts. Whether it makes good long-term business sense is up to them, but right now, they apparently want my inflow of dollars, so I'll happily give them my business vs. some other chain, which is what I assume they wanted by setting their prices to that level. I'd be surprised if some hotels (especially smaller chains and independents) wouldn't incentivize via gift cards, pre-paid bookings for future stays, etc. that gets them operating cashflow NOW, etc.


Oh, cool - I was just looking at this property yesterday! I would rather stay up near Canggu or Seminyak (easier access to Ubud, I like the Canguu vibe vs. the Conrad/Hilton megaresort kind of feel a lot of the south tip of Bali seems to have.) I'll look into it for Oct-Nov, thanks. I *was* planning to take my daughter to Bali soon, but that plan got docked due to lockdown. I'd like to take her there in the safer future.


Thanks - That's the best price I've seen on that - I've been there a few times, but never stayed there under $150 a night! What dates did you see that at?


TDM

arlflyer

If that's the case, I wouldn't have used the term "COVID-era" in the thread title.

For the "post-COVID era", which you seem to mean, properties have no real reason to drop prices yet. They don't know what the demand will look like. This current economic event is somewhat distinct from past downturns (especially the '08 crisis, which emanated from the collapse of white-collar firms) in that it isn't really creating a shortage of capital in the travel sector's target consumer. Most of the "traveling class", if you will, has been working from home, collecting their paycheck, and having nothing on which to spend it. There is a chance that there will indeed be a release of pent-up demand once travel begins to normalize, and properties don't want to preemptively shoot themselves in the foot by giving away capacity. If it comes to pass that once travel is a go there are still few takers, then they can start pulling all of the textbook sales and marketing levers.

dlaue

Re: Six Senses Uluwatu, Bali---> it's a great deal but must be used by mid-June. Airfare LAX - DPS on any reasonable routing is $5,000+ in coach. The deal just got bad.

aroundtheworld76

That Hampton would actually be free to an essential Healthcare worker right now. Hilton is giving $0 rate rooms to clinicians right now who link to the Hilton site through various professional orgs. No points, but you do get night credits and you get points for incidentals. It's pretty awesome. MR has a similar program, but only in 8 states. One of the front desk staff said that Amex is paying a certain amount per comped night as part of their Covid-19 charitable response. Not sure how that works.

Friendly Traveling Deathmerchant

Wow, that’s downright decent of Hilton and Amex, nice!

However, I’ll Now have to adjust my theoretical traveler’s situation.

Or, specific to me - I’m not in healthcare, but am authorized to be doing essential travel. And, as stated above, Texas and other states will be opening during the time period I’m talking about anyway. My theoretical traveler ( and myself ) may be making decisions on which hotel to stay at based on discount pricing.

MiamiAirport Formerly NY George

Some of the deals on PL and HW have been amazing. I got the LAX Sheraton Gateway (4 star) for $35 a night plus tax.

Jerome10

I'm with the OP. I'm not seeing squat out there. Rental cars seem awfully expensive right now as well.

Flights, at least if you can still get to the destination you want to get to, seem to be reasonable to downright cheap.

MiamiAirport Formerly NY George

That's because it seems as though hotels and car rental chains are trying to dump excess inventory in PL and HW. If you're willing to forgo points and take the room all the way from elevator there are some great prices in certain locals. Be aware certain destinations like Boston are only allowing "essential travelers" to check into local hotels.