Hotel owner failed "how to keep a customer 101"

[Andara Bledin]

Simple rules of who to blame for prices.

If prices are too high, blame the buyers. They're the ones who truly set the limit on what a business can charge. A business that honestly charges too much won't be in business long.

If prices are too low, blame the sellers. The businesses are the ones who truly set the limit on how little things can be had for. A buyer who won't pay the going rate will either be replaced or change their tune.

^-.-^

[Jay 2K Winger]

Simple rules of who to blame for prices.

If prices are too high, blame the buyers. They're the ones who truly set the limit on what a business can charge. A business that honestly charges too much won't be in business long.

If prices are too low, blame the sellers. The businesses are the ones who truly set the limit on how little things can be had for. A buyer who won't pay the going rate will either be replaced or change their tune.

^-.-^

Basic supply and demand in action.

[Mr Hero]

Last month we were constantly busy for a few weeks in a row. I was charging $89 a night and getting away with it. During one shift, I had one couple who was upset about the price and said they have never paid more than $59 a night. That was lower than what I was allowed and I simply told them I don't have rooms at that rate available. They left commenting to each other that it's $59 that we could have had. I ended up selling out that night. And I certainly got more than $59 for that room they would have had.

I know it sucks for consumers, but unlike retailers, hotels can't increase their available supply by ordering more rooms. So we have to increase the prices to maximize our profits, whereas retailers can just order more stock for busy seasons and keep the prices the same throughout the year.

[Moirae]

Mr. Hero, that's a fantastic way to put that.

[TheCheerfulTreeRat]

Mr. Hero, that's a fantastic way to put that.

Rubbish. He's just trying to hide the fact that ALL hotels/motels/flea pits hold back special rooms for VIP guests or friends, which are magically pet friendly, smoker/non smoker, free jacuzzi and fitted kitchenettes as desired. And whose prices never fluctuate with demand.

But you just ask him for it and he'll deny it. Go on, I dare you, I DOUBLE dare you.

[Mr Hero]

I don't deny it. I keep those in the Back Room.

[PepperElf]

I was talking to my dad about this. Like others have said, the new owner will have no issues filling the place up during this weekend so he knows he can charge any price he wants....

This isn't really surprising to be honest.

Back home there was one hotel my parents loved to go to when they visited me. The hotel was at a reasonable location right off the city highway, it was clean, had a restaurant right nearby, and the hotel bar was rather nice looking. When we went there for a funeral (before I got an apt in the area) the prices were good, in fact we got a discount because we were there for a funeral.

However it was also the second closest hotel to the local fairgrounds, about a 5 minute drive or so. So once a year, during the Fair, the prices would jump to double (if not triple) simply because they knew people would pay it to be that close to the fairgrounds.


Really it's just supply & demand - the demand is high, the supply is very limited, so the prices increase dramatically.

[Lachrymose]

Mr. Hero, that's a fantastic way to put that.

Indeed.

I've been one to complain about the fluctuation of hotel prices (mostly just to myself..haha), but I have never looked at it that way before at all.

I think I've changed my tune a bit. Thanks for that.

[Moirae]

Rubbish. He's just trying to hide the fact that ALL hotels/motels/flea pits hold back special rooms for VIP guests or friends, which are magically pet friendly, smoker/non smoker, free jacuzzi and fitted kitchenettes as desired. And whose prices never fluctuate with demand.

But you just ask him for it and he'll deny it. Go on, I dare you, I DOUBLE dare you.

I have worked in the industry for ten years... WE DO NOT HOLD BACK ROOMS. Not for any reason. The hotels are in business to make money, and they will kick their own family out if it will make them cash. Never EVER believe that bit of lying you find about that on the internet. It's not true, and I wish internet articles would quit saying it.

If a hotel says they are sold out, then THEY ARE SOLD OUT. What usually happens is that they are actually oversold by a few rooms just in case they have no-shows but no hotelier with a brain in their head will tell you they do that.

Rates ALWAYS fluctuate with demand unless its a small town with few visitors.

Thats the way this industry works.

[Ironclad Alibi]

We always have a room we hold back. But if we rent that room to a customer, we will no longer have a room held back, so we cannot rent that room to anyone. After all, it is very important to hold a room in reserve, and we can never rent it out.

[Pagan]

Rubbish. He's just trying to hide the fact that ALL hotels/motels/flea pits hold back special rooms for VIP guests or friends, which are magically pet friendly, smoker/non smoker, free jacuzzi and fitted kitchenettes as desired. And whose prices never fluctuate with demand.

But you just ask him for it and he'll deny it. Go on, I dare you, I DOUBLE dare you.

I don't deny it. I keep those in the Back Room.

I have worked in the industry for ten years... WE DO NOT HOLD BACK ROOMS. Not for any reason.

Moirae, I'm pretty sure, given CTR's room description and Mr. Hero's response, that CTR was just kidding.

[Peppergirl]

Can we all take a breath and chill, please? It's not that serious.

[TheCheerfulTreeRat]

If a hotel says they are sold out, then THEY ARE SOLD OUT.

Absolutely! Whenever I've come across someone who thinks you're "saving" something, so you've got one to sell...

You're not selling something, to make sure you still have one to sell. Right...

[Moirae]

Absolutely! Whenever I've come across someone who thinks you're "saving" something, so you've got one to sell...

You're not selling something, to make sure you still have one to sell. Right...

I can't tell you how many people tell me that. I've been in the industry for ten years, hotels don't set a single room aside. They're more concerned with making money so they will fill it, especially if its a special event like Mardi Gras (upwards of $300 a night in downtown New Orleans, more if you're on Bourbon Street) or Superbowl (currently going at around $1000 a night if you're a smaller hotel, upwards of $4000 a night on Bourbon. More if you're part of the agreement some hotels made with the Superbowl people where tickets are included. Then a stay starts at $5000 a night last I heard).

When I lost my last job, we had made $120,000 already over those four nights for Superbowl with full prepayment immediately, non-refundable, four night minimum. And the hotel still had 30 rooms left, all of them being suites. When I lost the job, they were talking about raising the cost of the remaining rooms to $1500 a night.

When a hotel can make thousands per one night, they would never set aside a room for any reason.

Why? Because they can.

I don't like it either, but if people are willing to pay it, there's really no way around it for those that don't. Yeah, it smacks of greed to me too.