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Want a lower rate when you stay in hotels?

Rule #2:  Don’t be a demanding jerk know-it-all to whoever it is you’re talking to


Ever heard of not pissing off people that handle your food?  Same thing here, except instead of a chef spitting in your food, you’re going to get your room rate doubled.  Sounds like a lose-lose situation.

If you really don’t want to piss us off, don’t ever tell us that you want a lower rate AFTER you check out of a hotel.  Just don’t ask it.  Don’t even think about it. Unless you are sincerely sure there is an error.  This question really ticks us off.  The people that ask this question don’t understand hotels, or, business in general.  Because if they did, they would understand why everyone staying in a hotel probably has a different rate than the person staying next to them.  Just like if you have ever flown on an airplane – more than likely, everyone paid a different price for the plane ticket.   This isn’t a grocery store where Milk is $4.29 for everyone.  Setting rates is a science in most hotels and there are various reasons why rates are what they are.

But I’m sure Ms. Knowitall already knew all that.

 

Phone rings.

Spike:  Hello, this is Spike

Ms. KnowitallHi, I’d like to speak with a Manager

Spike:  I can tell by the tone of your voice that you have an issue, and, I’m just gonna be honest, I am really not in the mood to deal with it right now.  But I guess I have no choice, so, what do you want?

Ms. KnowitallI just had a conversation with the woman that is in the room next to me.  She mentioned to me that she got a much lower rate than I did. Can you explain to me how that is possible?

Spike:  Well let’s just work through this together, shall we?  When did you make your reservation?

Ms. KnowitallLast night.

Spike:  By any chance in your colorful conversation with your next door neighbor, did they mention to you when they booked their reservation?

Ms. KnowitallThey also booked it last night.

Spike:  Now, ma’am, you do remember that I have a computer in front of me that tells me that your lying right?  I’m looking at your neighbor’s room and they booked it 4 months ago. Good try, but let’s move on.  What room type did they book?

Ms. KnowitallI have no idea, but why should that matter?!

 Kevin Hart logo maker

 

 Spike:  You’re right. Our Presidential suite that is 1,500 square feet with a fireplace, heated toilet seat, stocked mini bar, and 60 inch TV should be the same price as the standard king bed studio suite.  Let’s review:  You have an Executive King suite with a Jacuzzi tub.  They booked a standard handicapped king room.   Did you guys perhaps speak about how long you are both staying in the hotel for?

Ms. KnowitallThey said they’ve been here for three days already.  I was just here for last night.

Spike:  Ohhhh, ok.  So, you just came in for New Year’s Eve for one night.  And they were here for three days prior to that, and, for your information, staying for another two days after.  And you really still can’t figure out why your rate was higher?

Ms. KnowitallAll I know is I want my rate switched down to whatever rate they had.

McKinnon

Ms. KnowitallIf you do not change my rate, I will write something on Tripadvisor that management was unhelpful and price gouges their customers!

Spike:  The old ‘I’ll write a comment on Tripadvisor’ routine.  Never heard that one before.  That’s your plan – to lie on Tripadvisor?  What a life you lead.  You must be so proud.  Let’s revisit our conversation – your neighbor booked a Standard Handicap King room for five nights and booked it four months ago.  You booked an Executive King suite with a Jacuzzi tub for one night, which happened to be one of the busiest nights of the year, and booked the same day you arrived.  Are you still confused?

Ms. KnowitallWell I shouldn’t be penalized because I bought a more expensive room.  That was all you guys had.  If you had a standard room I would have just bought that!

Steve Harvey logo maker

Spike:  My therapist told me that I need to work on my breathing exercises when I feel like I want to annihilate somebody.  And right now, I can feel my brain starting to pulsate with anger because of how incredibly, unbelievably absurd you sound right now.  Your statement does not warrant any further answer from me.  So I think I’m going to just wait for you to just hang up because I’m too stunned by your stupidity to even respond.

 Ms. KnowitallWell you just bought yourself a very bad Tripadvisor comment!

Ferrell Ew

MORAL OF THE STORY

And that is how a bad Tripadvisor comment is born!  In reality, people threaten us with this type of stuff all the time, and they sometimes actually do write nasty reviews about us when we literally did nothing wrong.

In reference to our little friend’s issue above, as I stated, setting hotel rates is a science.  In my time as a Revenue Manager, that is what I did for a living.  Think about it: Why would I charge someone that is staying at my hotel for five days more, or even the same rate as a person that is only staying for one night?

Think about it this way.  If you ran a hotel and you had the choice of two guests:  Guest #1 – six night stay for $100 per night, or, Guest #2 – Two night stay for $250 per night, which would you choose?  The six nighter, of course, because they are giving you $600 in total revenue versus the other person only giving you $500.

On top of this, it is not my problem that she booked an upgraded room being that was all we had left.  If she didn’t want to pay the price for that room, she didn’t have to pay it.  No one put a gun to her head and forced her to book a room at a hotel that she didn’t want to stay in.  This is another reason why you will get no sympathy from anyone at a hotel when you request a lower rate after staying in an upgraded room – especially after you already spent the night.

And lastly, rates at hotels will change every day.  Sometimes multiple times throughout the day depending on what’s going on.  Don’t act like just because you called two weeks ago and got a certain rate that the same rate can be honored now. That’s not how it works.  The rate has gone up because the hotel is busier than it was two weeks ago, and we now have less rooms left to sell.  It’s supply and demand.  The more you have of a product, the less the price is for it; the less you have, the higher the price gets.

This was basically your Revenue Management 101 course.  These three things I mentioned are three of the bigger determining factors in how rates are set – room type being booked, date in which it is being booked, and number of nights staying. There are many other factors that determine a rate structure, but if I go into all of that, you’ll be as confused as a Kardashian in an electronics store.

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