4 ms·
I realise this isn't quite your area but I'd really love to know how far in practice hotel managers take the idea that "a room with guests paying anything is be
by jordn 14y ago
I realise this isn't quite your area but I'd really love to know how far in practice hotel managers take the idea that "a room with guests paying anything is better than an empty room". Do they typically offer significant discounts to bring in last minute guests? How does this works in practice?
I suspect there's a whole lot more to it and it's probably quite a delicate balance between capacity maximisation and less tangible qualities like the brand reputation and what effect any visibility of discounts can have on normal full-price paying customers.
I believe this is (supposedly) the idea behind hotwire. That the hotels want to fill their beds by offering them at a discount but don't want their regular customers to take advantage of it - so they disguise their identity. Anyone know any more? (or why it doesn't seem much cheaper than other OTAs that name the hotels?)
Thanks for the insights!
- deleted 14y ago[deleted]
- hondje 14y agoYou nailed most of it. For a chain, the GMs boss is going to be looking at two things: revenue per available room, and average daily rate. These metrics control the rate, within the constraints of the brand standards (so for example a mid tier place like a Holiday Inn isn't going to charge less than a Choice property like a Sleep Inn because the brand managers don't want the brand diluted)